MISCELLANEOUS PROVISIONS.

SEC. 2009. MISCELLANEOUS PROVISIONS. (a) Inclusion of Stock in Decedent’s Estate Where Decedent Retained Voting Rights.— Subsection (a) of section 2036 (relating to transfer with retained life estate) is amended by adding at the end thereof the following new sentence: “For purposes of paragraph (1), the retention of voting rights in retained stock shall be considered to be a retention of the enjoyment of such stock.” (b) Disclaimers.— (1) Amendment of gift tax provisions.— Subchapter B of chapter 12 (relating to transfers for purposes of the gift tax) is amended by adding at the end thereof the following new section: “SEC. 2518. DISCLAIMERS. “(a) General Rule.— For purposes of this subtitle, if a person makes a qualified disclaimer with respect to any interest in property, this subtitle shall apply with respect to such interest as if the interest had never been transferred to such person. “(b) Qualified Disclaimer Defined.— For purposes of subsection (a), the term ‘qualified disclaimer’ means an irrevocable and unqualified refusal by a person to accept an interest in property but only if— “(1) such refusal is in writing, “(2) such writing is received by the transferor of the interest, his legal representative, or the holder of the legal title to the property to which the interest relates not later than the date which is 9 months after the later of— “(A) the day on which the transfer creating the interest in such person is made, or “(B) the day on which such person attains age 21, “(3) such person has not accepted the interest or any of its benefits, and “(4) as a result of such refusal, the interest passes to a person other than the person milking the disclaimer (without any direction on the part of the person making the disclaimer). “(c) Other Rules.— For purposes of subsection (a)— “(1) Disclaimer of undivided portion of interest.— A disclaimer with respect to an undivided portion of an interest which meets the requirements of the preceding sentence shall be treated as a qualified disclaimer of such portion of the interest. “(2) Powers.— A power with respect to property shall be treated as an interest in such property.” (2) Amendment of estate tax provisions.— Part III of subchapter A of chapter 11 (relating to gross estate) is amended by adding at the end thereof the following new section: 90 STAT. 1894 “SEC. 2045. DISCLAIMERS. “For provisions relating to the effect of a qualified disclaimer for purposes of this chapter, see section 2518.” (3) Clerical amendments.— (A) The table of sections for subchapter B of chapter 12 is amended by adding at the end thereof the following: “Sec. 2518. Disclaimers.” (B) The table of sections for part III of subchapter A of chapter 11 is amended by adding at the end thereof the following: “Sec. 2045. Disclaimers.” (4) Technical and conforming changes.— (A) Paragraph (2) of section 2041 (a) (relating to release of general powers of appointment) is amended by striking out the second sentence thereof. (B) The first sentence of subsection (a) of section 2055 (relating to transfers for public, charitable, and religious uses) is amended by striking out “(including the interest which falls into any such bequest, legacy, devise, or transfer as a result of an irrevocable disclaimer of a bequest, legacy, devise, transfer, or power, if the disclaimer is made before the date prescribed for the filing of the estate tax return)”. (C) The second sentence of subsection (a) of section 2055 is amended— (i) by striking out “an irrevocable” and inserting in lieu thereof “a qualified”, and (ii) by striking out “such irrevocable” and inserting in lieu thereof “such qualified”. (D) Section 2056 (relating to bequests, etc., to surviving spouse) is amended by striking out subsection (d) and by redesignating subsection (e) as subsection (d). (E) Subsection (a) of section 2056 is amended by striking out “subsections (b), (c), and (d)” and inserting in lieu thereof “subsections (b) and (c)”. (F) Subsection (b) of section 2514 (relating to powers of appointment for purposes of the gift, tax) is amended by striking out the second sentence thereof. (c) Certain Retirement Benefits.— (1) Exclusion from gross estate of individual retirement accounts, etc.— Section 2039 (relating to annuities) is amended by adding at the end thereof the following new subsection: “(e) Exclusion of Individual Retirement Accounts, Etc.— Notwithstanding the provisions of this section or of any other provision of law, there shall be excluded from the value of the gross estate the value of an annuity receivable by any beneficiary (other than the executor) under— “(1) an individual retirement account described in section 408(a), “(2) an individual retirement annuity described in section 408(b), or “(3) a retirement bond described in section 409(a). If any payment to an account described in paragraph (1) or for an annuity described in paragraph (2) or a bond described in paragraph 90 STAT. 1895(3) was not allowable as a deduction under section 219 and was not a rollover contribution described in section 402(a)(5), 403(a)(4), 408 (d)(3), or 409(b)(3)(C), the preceding sentence shall not apply to that portion of the value of the amount receivable under such account, annuity, or bond (as the case may be) which beat’s the same ratio to the total value of the amount so receivable as the total amount which was paid to or for such account, annuity, or bond and which was not allowable as a deduction under section 219 and was not such a rollover contribution bears to the total amount paid to or for such account, annuity, or bond. For purposes of this subsection, the term ‘annuity’ means an annuity contract or other arrangement providing for a series of substantially equal periodic payments to be made to a beneficiary (other than the executor) for his life or over a period extending for at least 36 months after the date of the decedent’s death.” (2) Exclusion from gross estate of self-employed plans.— The fifth sentence of section 2039(c) (relating to exemption of annuities under certain trusts and plans) is amended to read as follows: “For purposes of this subsection, contributions or payments on behalf of the decedent while he was an employee within the meaning of section 401(c)(1) made under a trust or plan described in paragraph (1) or (2) shall, to the extent allowable as a deduction under section 404, be considered to be made by a person other than the decedent and, to the extent not so allowable, shall be considered to be made by the decedent.” (3) Exclusion inapplicable in case of lump bum distributions.— The first sentence of subsection (c) of section 2039 (relating to exemption of annuities under certain trusts and plans) is amended by striking out “other payment receivable by any beneficiary” and inserting in lieu thereof “other payment (other than a lump sum distribution described in section 402(e)(4), determined without regard to the next to the last sentence of section 402(e)(4)(A)) receivable by any beneficiary”. (4) Gift tax treatment of elections under certain retirement flans.— (A) Individual retirement accounts, etc.— (i) Subsection (a) of section 2517 (relating to certain annuities under qualified plans) is amended by striking out “or” at the end of paragraph (3), by striking out the period at the end of paragraph (4) and inserting in lieu thereof “; or”, and by inserting after paragraph (4) the following new paragraph: “(5) an individual retirement account described in section 408 (a) an individual retirement annuity described in section 408 (b), or a retirement bond described in section 409(a).” (ii) Subsection (b) of section 2517 (relating to transfers attributable to employee contributions) is amended by striking out “other than paragraph (4)” and inserting in lieu thereof “other than paragraphs (4) and (5)”. (iii) Subsection (c) of section 2517 (defining employee) is amended by adding at the end thereof the following new sentence: “In the case of a retirement plan described in paragraph (5) of subsection (a), such term means the individual for whose benefit the plan was established.” (B) Self-employed plans.— The last sentence of section 2517(b) (relating to transfers attributable to employee con-90 STAT. 1896tributions) is amended to read as follows: “For purposes of this subsection, contributions or payments on behalf of an individual while he was an employee within the meaning of section 401(c)(1) made under a trust or plan described in paragraph (1) or (2) of subsection (a) shall, to the extent allowable as a deduction under section 404, be considered to be made by a person other than such individual and, to the extent not so allowable, shall be considered to be made by such individual.” (5) Gift tax treatment of certain community property.— Section 2517 (relating to certain annuities under qualified plans) is amended by redesignating subsection (c)(as amended by paragraph (4)(A)(iii)) as subsection (d) and by inserting after subsection (b) the following new subsection: “(c) Exemption of Certain Annuity Interests Created by Community Property Laws.— Notwithstanding any other provision of law, in the case of an employee on whose behalf contributions or payments are made— “(1) by his employer or former employer under a trust or plan described in paragraph (1) or (2) of subsection (a), or toward the purchase of a contract described in paragraph (3) of subsection (a), which under subsection (b) are not considered as contributed by the employee, or “(2) by the employee to a retirement plan described in paragraph (5) of subsection (a), a transfer of benefits attributable to such contributions or payments shall, for purposes of this chapter, not be considered as a transfer by the spouse of the employee to the extent that the value of any interest of such spouse in such contributions or payments or hi such trust or plan or such contract— “(A) is attributable to such contribution or payments, and “(B) arises solely by reason of such spouse’s interest in community income under the community property laws of the State.” (d) Income Tax Treatment of Certain Expenses of Estate.— Section 642(g) (relating to disallowance of double deductions) is amended by inserting after “shall not be allowed as a deduction” the following: “(or as an offset against the sales price of property in determining gain or loss)”. (e) Effective Dates.— (1) For subsection (a).— The amendment made by subsection (a) shall apply to transfers made after June 22, 1976. (2) For subsection (b).— The amendments made by subsection (b) shall apply with respect to transfers creating an interest in the person disclaiming made after December 31, 1976. (3) For subsection (c).— (A) The amendments made by paragraphs (1), (2), and (3) of subsection (c) shall apply to the estates of decedents dying after December 31, 1976. (B) The amendments made by paragraphs (4) and (5) of subsection (c) shall apply to transfers made after December 31, 1976. (4) For subsection (d).— The amendment made by subsection (d) shall apply to taxable years ending after the date of the enactment of this Act. 26 U5C 2517.