REDUCTION IN EXCISE TAX ON CERTAIN ACCUMULATIONS IN QUALIFIED RETIREMENT PLANS.

SEC. 302. REDUCTION IN EXCISE TAX ON CERTAIN ACCUMULATIONS IN QUALIFIED RETIREMENT PLANS.(a) In General.—Section 4974(a) is amended by striking “50 percent” and inserting “25 percent”. (b) Reduction in Excise Tax on Failures to Take Required Minimum Distributions.—Section 4974 is amended by adding at the end the following new subsection:“(e) Reduction of Tax in Certain Cases.—“(1) Reduction.—In the case of a taxpayer who—“(A) receives a distribution, during the correction window, of the amount which resulted in imposition of a tax under subsection (a) from the same plan to which such tax relates, and “(B) submits a return, during the correction window, reflecting such tax (as modified by this subsection), the first sentence of subsection (a) shall be applied by substituting ‘10 percent’ for ‘25 percent’. “(2) Correction window.—For purposes of this subsection, the term ‘correction window’ means the period of time beginning on the date on which the tax under subsection (a) is imposed with respect to a shortfall of distributions from a plan described in subsection (a), and ending on the earliest of—“(A) the date of mailing a notice of deficiency with respect to the tax imposed by subsection (a) under section 6212, “(B) the date on which the tax imposed by subsection (a) is assessed, or “(C) the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection (a) is imposed.” . (c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.