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section 2001(b)(3) of Pub. L. 94-455. For complete classification of this Act to the Code, see Tables.

EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91-614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a note under section 2501 of this title.

8 2505. Unified credit against gift tax

(a) General rule

In the case of a citizen or resident of the United States, there shall be allowed as a credit against the tax imposed by section 2501 for each calendar year an amount equal to

(1) $192,800, reduced by

(2) the sum of the amounts allowable as a credit to the individual under this section for

all preceding calendar periods. (b) Phase-in of credit

Subsection (a)(1) shall be applied

by substituting for “$192.800" In the case of gifts made in:

the following amount: 1982 ....

$62,800 1983

79,300 1984 ..

96,300 1985 ............................

121,800 1986.

155,800.

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AMENDMENTS 1981-Pub. L. 97-34, 8 442(a)(4)(D), substituted in section heading “calendar periods" for "years and quarters".

Subsec. (a). Pub. L. 97-34, $ 442(a)(4)(A), substituted in introductory text “preceding calendar periods" and "calendar year" for "preceding calendar years or calendar quarters" and "calendar quarter", incorporated existing text in provisions designated pars. (1) to (3), and substituted in par. (1) "calendar period" for “years or calendar quarters" and in par. (3) "preceding calendar periods” and “calendar year" for "calendar years or calendar quarters" and "calendar quarter".

Subsec. (b). Pub. L. 97-34, § 442(a)(4)(B), substituted in heading "calendar periods" for "years and quarters" and in the text "preceding calendar periods" for “preceding calendar years and calendar quarters", “the periods" for “the years and calendar quarters", and “such preceding calendar periods" for "such years and calendar quarters".

Subsec. (c). Pub. L. 97-34, $ 442(a)(4)(C), substituted in heading "calendar periods" for "calendar years and quarters" and in text “preceding calendar period" for "preceding calendar year or calendar quarter" in four instances, “any calendar year" for "any calendar quarter", and "section 2502(b)" for "section 2502(c)".

1976–Subsec. (a). Pub. L. 94-455 added "(as in effect before its repeal by the Tax Reform Act of 1976)" fol. lowing "section 2521” and “ending before January 1, 1977" following “years or calendar quarters" and substituted “of” for “to previous" following "computations in respect",

1970–Pub. L. 91-614 substituted "Taxable gifts for preceding years and quarters" for "Taxable gifts for preceding years" in the section catchline.

Subsec. (a). Pub. L. 91-614 substituted "In computing taxable gifts for the preceding calendar years or calendar quarters for the purpose of computing the tax for any calendar quarter," for "In computing taxable gifts for the calendar year 1954 and preceding cal. endar years for the purpose of computing the tax for the calendar year 1955 or any calendar year thereaf. ter," provided that the laws applicable in the calendar quarters as well as the years in which the transfers in question were made shall apply, and substituted "previous calendar years or calendar quarters for the purpose of computing the tax for any calendar year or calendar quarter" for “the calendar year 1954 and previous calendar years for the purpose of computing the tax for the calendar year 1955 or any calendar year thereafter".

Subsec. (b). Pub. L. 91-614 added reference to calendar quarters in the subsec. catchline, substituted "during preceding calendar years and calendar quarters," for “during the calendar year 1954 and preceding calendar years," made reference to the amount excluded by gift tax laws applicable to the calendar quarters as well as years in which the gifts were made, and substituted "during such years and calendar quarters" for "during such year".

Subsec. (c). Pub. L. 91-614 added reference to calendar quarters in the subsec, catchline added "or calendar quarter" following "calendar year" in four places, and substituted "for any calendar quarter," for "for the calendar year 1955 and subsequent calendar years,".

Subsec. (d). Pub. L. 91-614 struck out "For years before the calendar year 1955" from the explanation of the term “net gifts" as used in corresponding provi. sions of prior laws.

EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97-34, set out as a note under section 2501 of this title.

(c) Adjustment to credit for certain gifts made before

1977 The amount allowable under subsection (a) shall be reduced by an amount equal to 20 percent of the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the individval after September 8. 1976.

(d) Limitation based on amount of tax

The amount of the credit allowed under subsection (a) for any calendar year shall not exceed the amount of the tax imposed by section 2501 for such calendar year. (Added Pub. L. 94-455, title XX, $ 2001(b)(2), Oct. 4, 1976, 90 Stat. 1849, and amended Pub. L. 97-34, title IV, 88 401(b), 442(a)(5), 95 Stat. 299,

REFERENCES IN TEXT The Tax Reform Act of 1976, referred to in subsec. (c), is Pub. L. 94-455, Oct. 4, 1976, 90 Stat. 1520, as amended. Section 2521 of this title was repealed by section 2001(b)(3) of Pub. L. 94-455. For complete classification of this Act to the Code, see Tables.

AMENDMENTS 1981-Subsec. (a). Pub. L. 97-34. & 442(a)(5XA), substituted in provision preceding par. (1) "year" for “quarter", and "periods" for “quarters" in par. (2).

Subsec. (a)(1). Pub. L. 97-34, $ 401(b)(1), substituted "$192,800" for "$47,000".

Subsec. (b). Pub. L. 97-34, $ 401(b)(2), struck out from heading "$47,000” preceding "credit", substituted subsec. (a)(1) substitutions for "$192,800” of amounts of “$62,800", "$79,300", "$96,300", "$121,800", and "$155,800" in the case of gifts made in 1982, 1983, 1984, 1985, and 1986, respectively, for subsec. (aX1) substitutions for "$47,000” of amounts of “$6,000", "$30,000", "$34,000", "$38,000”, and “$42,500" in the case of gifts made after Dec. 31, 1976, and before July 1, 1977, after June 30, 1977, and before Jan. 1, 1978; after Dec. 31, 1977, and before Jan. 1, 1979, after Dec.

AMENDMENTS

31, 1978, and before Jan. 1, 1980, and after Dec. 31. 1979, and before Jan. 1. 1981, respectively.

Subsec. (d). Pub. L. 97-34, § 442(a)(5)(B), substituted "year" for "quarter" in two instances.

EFFECTIVE DATE OF 1981 AMENDMENT Section 401(c)2) of Pub. L. 97-34 provided that: "The amendments made by subsection (b) (amending this section) shall apply to gifts made after such date (Dec. 31, 1981)."

Amendment by section 442(a)(5) of Pub. L. 97-34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97-34, set out as a note under section 2501 of this title.

1966–Subsec. (b), Pub. L. 89-809 inserted reference to nonresidents who are excepted from the application of section 2501(a)(2) and expanded the section to include debt obligations of United States persons or the United States, a State or any political subdivision thereof, or the District of Columbia.

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-809 applicable with respect to the calendar year 1967 and all calendar years thereafter, see section 109(c) of Pub. L. 89-809, set out as a note under section 2501 of this title.

Subchapter B-Transfers

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2101, 2501 of this title.

Sec.
2511. Transfers in general.
2512. Valuation of gifts.
2513. Gift by husband or wife to third party.
2514. Powers of appointment.
(2515, 2515A. Repealed.)
2516. Certain property settlements.
2517. Certain annuities under qualified plans.
2518. Disclaimers.
2519, Dispositions of certain life estates.

AMENDMENTS 1981–Pub. L. 97-34, title IV, $ 403(c)(3)(C), (dX3XB)(ii), Aug. 13, 1981, 95 Stat. 302, 304, as amend. ed Pub. L. 97-448, title I, § 104(a)(3)(B), Jan. 12, 1983, 96 Stat. 2380, struck out items 2515 "Tenancies by the entirety in real property" and 2515A "Tenancies by the entirety in personal property" and added item 2519.

1978--Pub. L. 95-600, title VII, $ 702(k)(1)(C), Nov. 6, 1978, 92 Stat. 2932, substituted in item 2515 "Tenancies by the entirety in real property" for “Tenancies by the entirety" and added item 2515A.

1976–Pub. L. 94-455, title XX, $ 2009(b)3XA), Oct. 4, 1976, 90 Stat. 1894, added item 2518.

1958–Pub. L. 85-866, title I, $ 68(b), Sept. 2, 1958, 72 Stat. 1659, added item 2517.

8 2512. Valuation of gifts

(a) If the gift is made in property, the value thereof at the date of the gift shall be considered the amount of the gift.

(b) Where property is transferred for less than an adequate and full consideration in money or money's worth, then the amount by which the value of the property exceeded the value of the consideration shall be deemed a gift, and shall be included in computing the amount of gifts made during the calendar year.

(c) Cross reference

For individual's right to be furnished on request a statement regarding any valuation made by the Secretary

of a gift by that individual, see section 7517. (Aug. 16, 1954, ch. 736, 68A Stat. 406; Dec. 31, 1970, Pub. L. 91-614, title I, § 102(b)(1), 84 Stat. 1840; Oct. 4, 1976, Pub. L. 94-455, title XX, $ 2008(a)(2)(B), 90 Stat. 1891; Aug. 13, 1981, Pub. L. 97-34, title IV, § 442(b)(1), 95 Stat. 322.)

AMENDMENTS 1981-Subsec. (b), Pub. L. 97-34 substituted "calendar year" for "calendar quarters".

1976–Subsec. (c). Pub. L. 94-455 added subsec. (c).

1970–Subsec. (b). Pub. L. 91-614 substituted “calendar quarter" for "calendar year".

EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97-34, set out as a note under section 2501 of this title.

$ 2511. Transfers in general (a) Scope

Subject to the limitations contained in this chapter, the tax imposed by section 2501 shall apply whether the transfer is in trust or other wise, whether the gift is direct or indirect, and whether the property is real or personal, tangi. ble or intangible; but in the case of a nonresident not a citizen of the United States, shall apply to a transfer only if the property is situated within the United States. (b) Intangible property

For purposes of this chapter, in the case of a nonresident not a citizen of the United States who is excepted from the application of section 2501(a)(2)

(1) shares of stock issued by a domestic corporation, and (2) debt obligations of

(A) a United States person, or

(B) the United States, a State or any political subdivision thereof, or the District of

Columbia, which are owned and held by such nonresident shall be deemed to be property situated within the United States. (Aug. 16, 1954, ch. 736, 68A Stat. 406; Nov. 13, 1966, Pub. L. 89-809, title I, § 109(b), 80 Stat. 1575.)

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a note under section 2501 of this title.

CROSS REFERENCES Calendar quarter defined, see section 2502 of this title. tit

Certain property settlements, see section 2516 of this title.

Gross estate upon transfers for insufficient consideration, see section 2043 of this title.

Valuation and alternate valuation of gross estate, see sections 2031, 2032 of this title.

8 2513

TITLE 26–INTERNAL REVENUE CODE

Page 56

(Aug. 16, 1954, ch. 736, 68A Stat. 406; Dec. 31, 1970,Pub. L. 91-614, title I, § 102(b)(2), 84 Stat. 1840; Oct. 4. 1976, Pub. L. 94-455, title XIX, $ 1906(b)(13)(A), 90 Stat. 1834; Aug. 13, 1981, Pub. L. 97-34, title IV, $ 442(b)(2), 95 Stat. 322.)

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8 2513. Gift by husband or wife to third party
(a) Considered as made one-half by each
(1) In general

A gift made by one spouse to any person other than his spouse shall, for the purposes of this chapter, be considered as made onehalf by him and one-half by his spouse, but only if at the time of the gift each spouse is a citizen or resident of the United States. This paragraph shall not apply with respect to a gift by a spouse of an interest in property if he creates in his spouse a general power of appointment, as defined in section 2514(c), over such interest. For purposes of this section, an individual shall be considered as the spouse of another individual only if he is married to such individual at the time of the gift and does not remarry during the remainder of the calendar year. (2) Consent of both spouses

Paragraph (1) shall apply only if both spouses have signified (under the regulations provided for in subsection (b)) their consent to the application of paragraph (1) in the case of all such gifts made during the calendar

year by either while married to the other. (b) Manner and time of signifying consent (1) Manner

A consent under this section shall be signified in such manner as is provided under regulations prescribed by the Secretary. (2) Time

Such consent may be so signified at any time after the close of the calendar year in which the gift was made, subject to the following limitations

(A) The consent may not be signified after the 15th day of April following the close of such year, unless before such 15th day no return has been filed for such year by either spouse, in which case the consent may not be signified after a return for such year is filed by either spouse.

(B) The consent may not be signified after a notice of deficiency with respect to the tax for such year has been sent to either spouse in accordance with section

6212(a). (c) Revocation of consent

Revocation of a consent previously signified shall be made in such manner as in provided under regulations prescribed by the Secretary, but the right to revoke a consent previously sig. nified with respect to a calendar year

(1) shall not exist after the 15th day of April following the close of such year if the consent was signified on or before such 15th day; and

(2) shall not exist if the consent was not signified until after such 15th day. (d) Joint and several liability for tax

If the consent required by subsection (a)(2) is signified with respect to a gift made in any calendar year, the liability with respect to the entire tax imposed by this chapter of each spouse for such year shall be joint and several.

AMENDMENTS 1981–Subsec. (a). Pub. L. 97-34, $ 442(b)(2)(A), substituted “calendar year” for “calendar quarter" in pars. (1) and (2).

Subsec. (b)(2). Pub. L. 97-34, $ 442(b)(2XB)-(D), in introductory text, substituted "calendar year" for "calendar quarter", in subpar. (A), substituted "The consent" for “the consent", "15th day of April following the close of such year" for “15th day of the second month following the close of such calendar quarter", and "such year" for "such calendar quarter" in two other instances, and in subpar. (B) substituted "The consent" and "such year" for “the consent" and "such calendar quarter".

Subsec. (c). Pub. L. 97-34, $ 442(b)(2)(E), in provision preceding par. (1) substituted "calendar year" for "cal. endar quarter" and in par. (1) "15th day of April following the close of such year" for “15th day of the second month following the close of such quarter".

Subsec. (d). Pub. L. 97-34, § 442(b)(2)(F), substituted “any calendar year" and "such year" for "any calendar quarter" and "such calendar quarter".

1976–Subsecs. (b)(1), (c). Pub. L. 94-455 struck out “or his delegate" following “Secretary".

1970–Subsec. (a). Pub. L. 91-614, § 102(b)(2)(A), substituted "calendar quarter” for “calendar year" in two places.

Subsec. (b)(2). Pub. L. 91-614, § 102(b)(2)(A), substituted "calendar quarter" for "calendar year".

Subsec. (b)(2)(A). Pub. L. 91-614, § 102(b)(2)(B), substituted "the 15th day of the second month" for "the 15th day of April" and substituted "such calendar quarter" for "such year" in three places.

Subsec. (b)(2)(B). Pub. L. 91-614, § 102(b)(2)(C), substituted "such calendar quarter" for "such year".

Subsec. (c). Pub. L. 91-614, § 102(b)(2)(A), substituted "calendar quarter" for "calendar year".

Subsec. (c)(1). Pub. L. 91-614, § 102(b)(2)(D), substituted "15th day of the second month following the close of such calendar quarter" for "15th day of April following the close of such year".

Subsec. (d). Pub. L. 91-614, § 102(b)(2)(A), (E), substituted "calendar quarter" for "calendar year" and "such calendar quarter" for "such year".

EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97-34, set out as a note under section 2501 of this title.

EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91-614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a note under section 2501 of this title.

CROSS REFERENCES Estate tax credit for gift taxes, see section 2012 of this title. Gift tax returnsGenerally, see section 6019 of this title. Time for filing, see section 1075 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1015, 2001, 2012, 6103 of this title.

8 2514. Powers of appointment

interest shall be deemed adverse to such ex

ercise of the possessor's power; (a) Powers created on or before October 21, 1942

(C) if (after the application of subparaAn exercise of a general power of appoint

graphs (A) and (B)) the power is a general ment created on or before October 21, 1942,

power of appointment and is exercisable in shall be deemed a transfer of property by the

favor of such other person-such power individual possessing such power; but the fail.

shall be deemed a general power of appointure to exercise such a power or the complete re

ment only in respect of a fractional part of lease of such a power shall not be deemed an

the property subject to such power, such exercise thereof. If a general power of appoint

part to be determined by dividing the value ment created on or before October 21, 1942, has

of such property by the number of such been partially released so that it is no longer a

persons (including the possessor) in favor of general power of appointment, the subsequent

whom such power is exercisable. exercise of such power shall not be deemed to be the exercise of a general power of appoint For purposes of subparagraphs (B) and (C), a ment if

power shall be deemed to be exercisable in (1) such partial release occurred before No favor of a person if it is exercisable in favor of vember 1, 1951, or

such person, his estate, his creditors, or the (2) the donee of such power was under a creditors of his estate. legal disability to release such power on October 21, 1942, and such partial release occurred (0) Creation of another power in certain cases not later than six months after the termina- If a power of appointment created after Octotion of such legal disability.

ber 21, 1942, is exercised by creating another (b) Powers created after October 21, 1942

power of appointment which, under the appli

cable local law, can be validly exercised so as to The exercise or release of a general power of

postpone the vesting of any estate or interest in appointment created after October 21, 1942,

the property which was subject to the first shall be deemed a transfer of property by the individual possessing such power.

power, or suspend the absolute ownership or

power of alienation of such property, for a (c) Definition of general power of appointment

period ascertainable without regard to the date For purposes of this section, the term “gener of the creation of the first power, such exercise al power of appointment" means a power which of the first power shall, to the extent of the is exercisable in favor of the individual possess property subject to the second power, be ing the power (hereafter in this subsection re- deemed a transfer of property by the individual ferred to as the “possessor"), his estate, his possessing such power. creditors, or the creditors of his estate; except that

(e) Lapse of power (1) A power to consume, invade, or appro- The lapse of a power of appointment created priate property for the benefit of the posses- after October 21, 1942, during the life of the insor which is limited by an ascertainable dividual possessing the power shall be considstandard relating to the health, education, ered a release of such power. The rule of the support, or maintenance of the possessor preceding sentence shall apply with respect to shall not be deemed a general power of ap the lapse of powers during any calendar year pointment.

only to the extent that the property which (2) A power of appointment created on or could have been appointed by exercise of such before October 21, 1942, which is exercisable lapsed powers exceeds in value the greater of by the possessor only in conjunction with an- the following amounts: other person shall not be deemed a general (1) $5,000, or power of appointment.

(2) 5 percent of the aggregate value of the (3) In the case of a power of appointment

assets out of which, or the proceeds of which, created after October 21, 1942, which is exer

the exercise of the lapsed powers could be cisable by the possessor only in conjunction

satisfied. with another person

(A) if the power is not exercisable by the (f) Date of creation of power possessor except in conjunction with the

For purposes of this section a power of apcreator of the power-such power shall not

pointment created by a will executed on or be deemed a general power of appointment; (B) if the power is not exercisable by the

before October 21, 1942, shall be considered a possessor except in conjunction with a

power created on or before such date if the

person executing such will dies before July 1, person having a substantial interest, in the property subject to the power, which is ad

1949, without having republished such will, by verse to exercise of the power in favor of

codicil or otherwise, after October 21, 1942. the possessor—such power shall not be (Aug. 16, 1954, ch. 736, 68A Stat. 407; Oct. 4, deemed a general power of appointment. 1976, Pub. L. 94-455, title XX, $ 2009(b)(4)(F), For the purposes of this subparagraph a 90 Stat. 1894.) person who, after the death of the possessor, may be possessed of a power of appoint

AMENDMENTS ment (with respect to the property subject

1976–Subsec. (b). Pub. L. 94-455 struck out “A disto the possessor's power) which he may ex

claimer or renunciation of such a power of appointercise in his own favor shall be deemed as ment shall not be deemed a release of such power" folhaving an interest in the property and such lowing "possessing such power".

CROSS REFERENCES

organization referred to in section Gift by husband or wife to third party, see section

170(b)(1)(A)(ii) or (vi), or which is a religious 2513 of this title.

organization (other than a trust), and which Transfers for benefit of minors, see section 2503 of is exempt from tax under section 501(a); this title.

(4) chapter 73 of title 10 of the United SECTION REFERRED TO IN OTHER SECTIONS

States Code; or This section is referred to in sections 2503, 2513 of

(5) an individual retirement account dethis title.

scribed in section 408(a) an individual retire

ment annuity described in section 408(b), or a (88 2515, 2515A. Repealed. Pub. L. 97-34, title IV, retirement bond described in section 409(a). 8 403(c)(3)(B), Aug. 13, 1981, 95 Stat. 302)

(b) Transfers attributable to employee contributions Section 2515, act Aug. 16, 1954, ch. 736, 68A Stat. 409; Dec. 31, 1970, Pub. L. 91-614, title I, § 102(b)(3), 84

If the annuity or other payment referred to Stat. 1841; Oct. 4, 1976, Pub. L. 94-455, title XX,

in subsection (a) (other than paragraphs (4) $ 2002(c)(2), 90 Stat. 1855; Nov. 6, 1978, Pub. L. 95-600, and (5)) is attributable to any extent to pay. title VII, 8 702(k)(1)(B), 92 Stat. 2932, related to tenan. ments or contributions made by the employee, cies by the entirety in real property.

then subsection (a) shall not apply to that part Section 2515A, added Pub. L. 95-600, title VII,

of the value of such annuity or other payment $ 702(k)(1)(A), Nov. 6, 1978, 92 Stat. 2932, related to

which bears the same proportion to the total tenancies by the entirety in personal property.

value of the annuity or other payment as the EFFECTIVE DATE OF REPEAL

total payments or contributions made by the Repeal applicable to gifts made after Dec. 31, 1981,

employee bear to the total payments or contrisee section 403(e)(2) of Pub. L. 97-34, set out as an Ef. butions made. For purposes of the preceding fective Date of 1981 Amendment note under section sentence, payments or contributions made by 2056 of this title.

the employee's employer or former employer

toward the purchase of an annuity contract de8 2516. Certain property settlements

scribed in subsection (a)(3) shall, to the extent Where husband and wife enter into a written not excludable from gross income under section agreement relative to their marital and proper 403(b), be considered to have been made by the ty rights and divorce occurs within 2 years employee. For purposes of this subsection, conthereafter (whether or not such agreement is tributions or payments on behalf of an individapproved by the divorce decree), any transfers ual while he was an employee within the meanof property or interests in property made pur ing of section 401(c)(1) made under a trust or suant to such agreement

plan described in paragraph (1) or (2) of subsec(1) to either spouse in settlement of his or tion (a) shall, to the extent allowable as a deher marital or property rights, or

duction under section 404, be considered to be (2) to provide a reasonable allowance for made by a person other than such individual the support of issue of the marriage during and, to the extent not so allowable, shall be minority,

considered to be made by such individual. For shall be deemed to be transfers made for a full

purposes of this subsection, any deductible em

ployee contributions (within the meaning of and adequate consideration in money or

paragraph (5) of section 7210)) shall be considmoney's worth.

ered as made by a person other than the em(Aug. 16, 1954, ch. 736, 68A Stat. 409.)

ployee. 8 2517. Certain annuities under qualified plans

(c) Exemption of certain annuity interests created by (a) General rule

community property laws The exercise or nonexercise by an employee

Notwithstanding any other provision of law, of an election or option whereby an annuity or

in the case of an employee on whose behalf other payment will become payable to any ben

contributions or payments are madeeficiary at or after the employee's death shall (1) by his employer or former employer not be considered a transfer for purposes of under a trust or plan described in paragraph this chapter if the option or election and annu (1) or (2) of subsection (a), or toward the purity or other payment is provided for under

chase of a contract described in paragraph (3) (1) an employees' trust (or under a contract of subsection (a), which under subsection (b) purchased by an employees' trust) forming are not considered as contributed by the empart of a pension, stock bonus, or profit-shar ployee, or ing plan which, at the time of such exercise (2) by the employee to a retirement plan deor nonexercise, or at the time of termination scribed in paragraph (5) of subsection (a), of the plan if earlier, met the requirements of section 401(a);

a transfer of benefits attributable to such con(2) a retirement annuity contract purchased

tributions or payments shall, for purposes of by an employer (and not by an employees' this chapter, not be considered as a transfer by trust) pursuant to a plan which, at the time

the spouse of the employee to the extent that of such exercise or nonexercise, or at the time the value of any interest of such spouse in such of termination of the plan if earlier, was a contributions or payments or in such trust or plan described in section 403(a);

plan or such contract(3) a retirement annuity contract purchased (A) is attributable to such contribution or for an employee by an employer which is an payments, and

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