88 STAT. ]
PUBLIC LAW 93-406-SEPT. 2, 1974
957
" (d) CROSS KEFERENCE.—
"For disallowance of deduction for taxes paid under this section, see section 275.". (2) CLERICAL AMENDMENT.—The table of sections for chapter 43 is amended by inserting after the item relating to section 4971 the following new item: "Sec, 4972. Tax on excess contributions for self-employed individuals.". (g) PREMATURE DISTRIBUTIONS TO OWNER-EMPLOYEES.—
(1) IN GENERAL.—Subparagraph (B) of section 72(m)(5) (relating to penalties applicable to certain amounts received by owner-employees) is amended to read as follows: " (B) I f a person receives an amount to which this paragraph applies, his tax under this chapter for the taxable year in which such amount is received shall be increased by an amount equal to 10 percent of the portion of the amount so received which is includible in his gross income for such taxable year."
26 USC 72.
(2) CONFORMING AMENDMENTS.—
(A) Subparagraphs (C), (D), and (E) of section 72(m) Repeals. (5) are repealed. (B) The second sentence of section 46(a)(3) and the sec- 26 USC 46. ond sentence of section 50A(a)(3), as each is amended by 26 USC 5OA. section 2005(c)(4) of this Act, are each amended by inserting Post, p. 987. after "tax preferences)," the following: "section 72(m)(5) (B) (relating to 10 percent tax on premature distributions supra. to owner-employees),". (C) The third sentence of section 901(a), as amended by ^^ ^^'^ ^°^* section 2005(c)(5) of this Act, is amended by striking out "tax preferences)," and inserting in lieu thereof "tax preferences), against the tax imposed for the taxable year under section 72(m)(5)(B) (relating to 10 percent tax on premature distributions to owner-employees),". (D) Subparagraph (A) of section 56(a)(2) and para- 26 USC 56. graph (1) of section 56(c), as each is amended by section 2005(c)(7) of this Act, are each amended by striking out "402(e)" and inserting in lieu thereof "72(m)(5)(B), 402 (E) Section 404(a)(2) is amended by striking out " ( 1 6) " and inserting in lieu thereof "(16), (17), (18)". (F) Clause (ii) of section 4 0 4 (a)(9)(B) is amended to read as follows: "(ii) without regard to the second sentence of paragraph (3); and", (h) WITHDRAWAL EMPLOYEES.—
OF EMPLOYEE
CONTRIBUTIONS
or
OWNER-
(1) Section 4 0 1 (d)(4)(B) (relating to additional requirements for qualification of trusts and plans benefiting owneremployees) is amended by inserting "in excess of contributions made by an owner-employee as an employee" after "benefits". (2) Paragraph (1) of section 72(m) (relating to certain amounts received before annuity starting date) is repealed. (3) Section 72(m)(5)(A)(i) is amended by striking out "(whether or not paid by h i m) " and inserting in lieu thereof the following: "(other than contributions made by him as an owneremployee)". (i)
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EFFECTIVE DATES.—
(1) The amendments made by subsections (a) and (b) apply to taxable years beginning after December 31, 1973.
26use4oi.
Repeal.
26 USC 404 note.
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