966
26 USC 403.
26 USC 401,
PUBLIC LAW 93-406-SEPT. 2, 1974
[88 STAT.
for the benefit of the registered owner, on or before the 60th day after the day on which he received the proceeds of such redemption, then the proceeds shall be excluded from gross income and the transfer shall be treated as a rollover contributJQj^ described in section 403(d)(3). This subparagraph does not apply in the case of a transfer to such an employees' trust or such an annuity plan unless no part of the value of such proceeds is attributable to any source other than a rollover contribution from such an employees' trust or annuity plan (other than an annuity plan or a trust forming part of a plan under which the individual was an employee within the meaning of section 401(c)(1) at the time contributions were made on his behalf under the plan). " (c) ADDITIONAL TAX ON CERTAIN REDEMPTIONS BEFORE AGE 591/^.— "(1) EARLY REDEMPTION or BOND.—If a retirement bond is
26 USC 72.
redeemed by the registered owner before he attains age 591^, his tax under this chapter for the taxable year in which the bond is redeemed shall be increased by an amount equal to 10 percent of the amount of the proceeds of the redemption includible in his gross income for the taxable year. "(2) DISABILITY CASES.—Paragraph (1) does not apply for any taxable year during which the retirement bond is redeemed if, for that taxable year, the registered owner is disabled within the meaning of section 72(m)(7). "(3) REDEMPTION WITHIN ONE YEAR.—Paragraph (1) does not apply if the registered owner tenders the bond for redemption within 12 months after the date of its issuance.", (d) EXCISE TAX ON EXCESS CONTRIBUTIONS.—Chapter 43 (relating
26 USC 4973.
to qualified pension, etc., plans) is amended by inserting after section 4972 the following new section: «gj,(. 4973 rp^^ ON EXCESS CONTRIBUTIONS TO INDIVIDUAL RETIREMENT ACCOUNTS, CERTAIN SECTION 403(b) CONTRACTS, CERTAIN INDIVIDUAL RETIREMENT ANNUITIES, AND CERTAIN RETIREMENT BONDS. " (a) TAX IMPOSED.—In the case of—
^n.e.p. 959. Ante, p. 940. Ante, p. 964.
"(1) an individual retirement account (within the meaning of section 4p8 (a)), "(2) an individual retirement annuity (within the meaning of section 408(b)), a custodial account treated as an annuity con|.j.g^^^ under section 403(b)(7)(A) (relating to custodial accounts for regulated investment company stock), or u (^^>^ ^ retirement bond (within the meaning of section 409), established for the benefit of any individual, there is imposed for each taxable year a tax in an amount equal to 6 percent of the amount of the excess contributions to such individual's accounts, annuities, or bonds (determined as of the close of the taxable year). The amount of such tax for any taxable year shall not exceed 6 percent of the value of the account, annuity, or bond (determined as of the close of the taxable year). I n the case of an endowment contract described in section 408(b), the tax imposed by this section does not apply to any amount allocable to life, health, accident, or other insurance under such contract. The tax imposed by this subsection shall be paid by such individual, "(b) EXCESS CONTRIBUTIONS.—For purposes of this section, in the case of individual retirement accounts, individual retirement annuities, or bonds, the term 'excess contributions' means the sum of— "(1) the excess (if any) of—
�
