PUBLIC LAW 100-647—NOV. 10,1988	102 STAT. 3457
"(b) penalties relating to nondeductible contributions.—-
"(1) overstatement of designated nondeductible con-
tributions.—Any individual who—
"(A) is required to furnish information under section
408(oX4) as to the amount of designated nondeductible con-
tributions made for any taxable year, and
"(B) overstates the amount of such contributions made
for such taxable year,
shall pay a penalty of $100 for each such overstatement unless
it is shown that such overstatement is due to reasonable cause.
"(2) failure to file form.—Any individual who fails to file a   Law
form required to be filed by the Secretary under section 408(o)(4)   enforcement and
shall pay a penalty of $50 for each such failure unless it is   ^crime-
shown that such failure is due to reasonable cause."
(B)(i) The heading for section 6693 of the 1986 Code is
amended by striking out "overstatement of' and inserting in
lieu thereof "penalties relating to".
(ii) The item relating to section 6693 in the table of sections
for subchapter B of chapter 68 is amended by striking out
"overstatement of^9 and inserting in lieu thereof "penalties
relating to".
(c) amendments related to section 1105 of the reform act.—
(1)	Section 402(gX2XC) of the 1986 Code (relating to taxation of
distribution) is amended—
 (A)	by striking out "(and no tax shall be imposed under
section 72(t))" in clause (i),
 (B)	by striking out "such excess deferral is made" in
clause (ii) and inserting in lieu thereof "such income is
distributed", and
 (C)	by inserting at the end thereof the following new flush
sentence:
"No tax shall be imposed under section 72(t) on any dis-
tribution described in the preceding sentence."
 (2)	Section 402(gX2) is amended by striking out "required
distribution" in the heading thereof and inserting in lieu
thereof "distribution".
 (3)	Section 402(gX2) of the 1986 Code is amended by adding at
the end thereof the following new subparagraph:
"(D) partial distributions.—If a plan distributes only a
portion of any excess deferral and income allocable thereto,
such portion shall be treated as having been distributed
ratably from the excess deferral and the income."
(4)	Section 402(gX3) of the 1986 Code (defining elective defer-
ral) is amended by striking out "paragraph" and inserting in
lieu thereof "subsection".
(5XA) Clause (iii) of section 402(gX8XA) of the 1986 Code
(relating to special rule for certain organizations) is amended by
inserting "(determined in the manner prescribed by the Sec-
retary)" after "taxable years".
(B) Section 402(gX8) of the 1986 Code is amended by adding at
the end thereof the following new subparagraph:
"(D) years of service.—For purposes of this paragraph,
the term 'years of service' has the meaning given such term
by section 403(bX"
(6XA) Section 402(g) of the 1986 Code, as added by section
1852(bX3XA) of the Reform Act, is redesignated as subsection (i).