Page:United States Statutes at Large Volume 124.djvu/1318

124 STAT. 1292 PUBLIC LAW 111–192—JUNE 25, 2010 (2) INCREASES IN REQUIRED CONTRIBUTIONS IF EXCESS COM- PENSATION PAID.—Section 430(c) is amended by adding at the end the following paragraph: ‘‘(7) INCREASES IN ALTERNATE REQUIRED INSTALLMENTS IN CASES OF EXCESS COMPENSATION OR EXTRAORDINARY DIVIDENDS OR STOCK REDEMPTIONS.— ‘‘(A) IN GENERAL.—If there is an installment accelera- tion amount with respect to a plan for any plan year in the restriction period with respect to an election year under paragraph (2)(D), then the shortfall amortization installment otherwise determined and payable under such paragraph for such plan year shall, subject to the limitation under subparagraph (B), be increased by such amount. ‘‘(B) TOTAL INSTALLMENTS LIMITED TO SHORTFALL BASE.—Subject to rules prescribed by the Secretary, if a shortfall amortization installment with respect to any shortfall amortization base for an election year is required to be increased for any plan year under subparagraph (A)— ‘‘(i) such increase shall not result in the amount of such installment exceeding the present value of such installment and all succeeding installments with respect to such base (determined without regard to such increase but after application of clause (ii)), and ‘‘(ii) subsequent shortfall amortization installments with respect to such base shall, in reverse order of the otherwise required installments, be reduced to the extent necessary to limit the present value of such subsequent shortfall amortization installments (after application of this paragraph) to the present value of the remaining unamortized shortfall amortization base. ‘‘(C) INSTALLMENT ACCELERATION AMOUNT.—For pur- poses of this paragraph— ‘‘(i) IN GENERAL.—The term ‘installment accelera- tion amount’ means, with respect to any plan year in a restriction period with respect to an election year, the sum of— ‘‘(I) the aggregate amount of excess employee compensation determined under subparagraph (D) with respect to all employees for the plan year, plus ‘‘(II) the aggregate amount of extraordinary dividends and redemptions determined under subparagraph (E) for the plan year. ‘‘(ii) ANNUAL LIMITATION.—The installment accel- eration amount for any plan year shall not exceed the excess (if any) of— ‘‘(I) the sum of the shortfall amortization installments for the plan year and all preceding plan years in the amortization period elected under paragraph (2)(D) with respect to the shortfall amortization base with respect to an election year, determined without regard to paragraph (2)(D) and this paragraph, over Definition. Regulations. 26 USC 430.