INSURANCE COMPANIES.

SEC. 228. INSURANCE COMPANIES. (a) Certain Mutualization Distributions Made in 1962.— (1) Deduction for certain mutualization distributions.— Section 809(d) (11) (relating to deductions in computing gain from operations in the case of certain mutualization distributions) is amended by striking out “and 1961” and inserting in lieu thereof “1961, and 1962”. (2) Application or sections 15.—Section 809 (g) (3) (relating to application of section 815 to certain mutualization distributions) is amended by striking out “or 1961” and inserting in lieu thereof “1961, or 1962”. (b) Accrual of Bond Discount.— (1) Life insurance companies.—Section 818(b) (relating to amortization of premium and accrual of discount) is amended by adding at the end thereof the following new paragraph: “(3) Exception.—For taxable years beginning after December 31, 1962, no accrual of discount shall be required under paragraph (1) on any bond (as defined in section 171(d)), except in the case of discount which is— “(A) interest to which section 103 applies, or “(B) original issue discount (as defined in section 1232(b)). 78 Stat. 99 For purposes of section 805(b) (3) (A), the current earnings rate for any taxable year beginning before January 1, 1963, shall be determined as if the preceding sentence applied to such taxable year.” (2) Mutual insurance companies.—Section 822(d) (2) (relating to amortization of premium and accrual of discount.) is amended by adding at the end thereof the following new sentence: “For taxable years beginning after December 31, 1962, no accrual of discount shall be required under this paragraph on any bond (as defined in section 171(d)).” (c) Contributions to Qualified, etc., Plans.—Section 832 (c) (10) (relating to deductions allowed in computing taxable income of certain insurance companies) is amended by inserting before the semicolon at the end thereof “and in part I of subchapter D (sec. 401 and following, relating to pension, profit-sharing, stock bonus plans, etc.)”. (d) Effective Dates.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1961. The amendment made by subsection (c) shall apply to taxable years beginning after December 31, 1953, and ending after August 16, 1954.