PUBLIC LAW 97-248—SEPT. 3, 1982 vidual retirement a n n u i t y shall be t r e a t e d as inherited if— "(I) the individual for whose benefit the account or a n n u i t y is m a i n t a i n e d acquired such account by reason of the death of a n other individual, and "(II) such individual was not the surviving spouse of such other individual." (B) Subparagraph (C) of section 409(b)(3) (relating to rollover into a n individual retirement account or a n n u i t y or a qualified plan) is amended by adding a t the end thereof the following new sentence: "This subparagraph shall not apply to any retirement bond if such bond is acquired by the owner by reason of the death of a n other individual and the owner was not the surviving spouse of such other individual."
96 STAT. 523
26 USC 409.
(2) D E N I A L OF DEDUCTION FOR CONTRIBUTIONS TO INHERITED
INDIVIDUAL RETIREMENT ACCOUNTS OR ANNUITIES.—Subsection (d) of section 219 (relating to other limitations and restrictions) is amended by adding a t the end thereof the following new paragraph: "(4)
DENIAL
OF DEDUCTION
FOR AMOUNT
95 Stat. 274.
CONTRIBUTED TO
INHERITED ANNUITIES OR ACCOUNTS.—No deduction shall be allowed under this section with respect to any a m o u n t paid to a n inherited individual retirement account or individual retirement a n n u i t y (within the m e a n i n g of section 408(d)(3)(C)(ii))." (c) EFFECTIVE D A T E S. —
26 USC 408 note.
(1) SUBSECTION (a).—The amendments m a d e by subsection (a) shall apply in the case of individuals dying after December 31, 1983. (2) SUBSECTION (b).—The amendments m a d e by subsection (b) shall apply to taxable year s beginning after December 31, 1983. SEC. 244, LIMITATION ON EXCLUSION FOR GROUP-TERM LIFE INSURANCE PURCHASED FOR EMPLOYEES. (a) GENERAL RULE.—Section 79 (relating to group-term life insurance purchased for employees) is amended by adding a t the end thereof the following new subsection: "(d) NONDISCRIMINATION REQUIREMENTS. —
"(1) IN GENERAL.—In the case of a discriminatory group-term life insurance plan, paragraph (1) of subsection (a) shall not apply with respect to any key employee. "(2) DISCRIMINATORY GROUP-TERM LIFE INSURANCE P L A N. — For
purposes of this subsection, the term 'discriminatory group-term life insurance plan' means any plan of a n employer for providing group-term life insurance unless— "(A) the plan does not discriminate in favor of key employees as to eligibility to participate, and "(B) the type and a m o u n t of benefits available under the plan do not discriminate in favor of part i c i p a n t s who a r e key employees. "(3) NONDISCRIMINATORY ELIGIBILITY CLASSIFICATION.—
"(A) IN GENERAL.—A plan does not meet requirements of subparagraph (A) of paragraph (2) unless— "(i) such plan benefits 70 percent or more of all employees of the employer, "(ii) a t least 85 percent of all employees who a r e part i c i p a n t s under the plan a r e not key employees,
26 USC 79.
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