988
PUBLIC LAW 93-406-SEPT. 2, 1974
[88 STAT.
" (D) MINIMUM DISTRIBUTION ALLOWANCE.—For purposes
of this paragraph, the minimum distribution allowance for the taxable year is an amount equal to— " (i) the lesser of $10,000 or one-half of the total taxable amount of the lump sum distribution for the taxable year, reduced (but not below zero) by "(ii) 20 percent of the amount (if any) by which such total taxable amount exceeds $20,000. (E) LIABILITY FOR TAX,—The recipient shall be liable for the tax imposed by this paragraph. " (2) MULTIPLE DISTRIBUTIONS AND DISTRIBUTIONS or ANNUITY
26 USC 401. 26 USC 671,
Regulations.
CONTRACTS.—In the case of any recipient of a lump sum distribution for the taxable year with respect to whom during the 6-taxable-year period ending on the last day of the taxable year there has been one or more other lump sum distributions after December 31, 1973, or if the distribution (or any part thereof) is an annuity contract, in computing the tax imposed by paragraph (1) (A), the total taxable amounts of all such distributions during such 6-taxable-year period shall be aggregated, but the amount of tax so computed shall be reduced (but not below zero) by the sum of— " (A) the amount of the tax imposed by paragraph (1)(A) paid with respect to such other distributions, plus " (B) that portion of the tax on the aggregated total taxable amounts which is attributable to annuity contracts. For purposes of this paragraph, a beneficiary of a trust to which a lump sum distribution is made shall be treated as the recipient of such distribution if the beneficiary is an employee (including ^j^ employee within the meaning of section 401(c)(1)) with respect to the plan under which the distribution is made or if the beneficiary is treated as the owner of such trust for purposes of subpart E of part I of subchapter J. I n the case of the distribution of an annuity contract, the taxable amount of such distribution shall be deemed to be the current actuarial value of the contract, determined on the date of such distribution. I n the case of a lump sum distribution with respect to any individual which is made only to two or more trusts, the tax imposed by paragraph (1)(A) shall be computed as if such distribution was made to a single trust, but the liability for such tax shall be apportioned among such trusts according to the relative amounts received by each. The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph. "(3) AxiLOWANCE or DEDUCTION,—The ordinary income portion of a lump sum distribution for the taxable year shall be allowed as a deduction from gross income for such taxable year, but only to the extent included in the taxpayer's gross income for such taxable year. " (4) DEFINITIONS AND SPECIAL RULES.— " (A) L U M P SUM DISTRIBUTION.—For
26 USC 403.
purposes of this section and section 403, the term 'lump sum distribution' means the distribution or payment within one taxable year of the recipient of the balance to the credit of an employee which becomes payable to the recipient— " (i) on account of the employee's death, " (ii) after the employee attains age 591^, "(iii) on account of the employee's separation from the service, or
�
