PUBLIC LAW 100-647—NOV. 10, 1988	102 STAT. 3481
(B) Section 4980A(c) of the 1986 Code, as redesignated by
paragraph (1), is amended by striking out paragraph (5).
(5)	Section 4980A(d) of the 1986 Code (relating to increase in
estate tax if individual dies with excess accumulation), as re-
designated by paragraph (1), is amended—
 (A)	by striking out "section 2010" in paragraph (2) and
inserting in lieu thereof "chapter 11", and
 (B)	by adding at the end thereof the following new para-
graphs:
"(4) rules for computing excess retirement accumula-
tion.—The excess retirement accumulation of an individual
shall be computed without regard to—
"(A) any community property law,
"(B) the value of—
"(i) amounts payable to an alternate payee pursuant
to a qualified domestic relations order (within the
meaning of section 414(p)) if includible in income of the
alternate payee, and
"(ii) the individual's investment in the contract (as
defined in section 72(f)), and
"(C) the excess (if any) of—
"(i) any interests which are payable immediately
after death, over
"(ii) the value of such interests immediately before
death.
"(5) election by spouse to have excess distribution rule
apply.—
"(A) in general.—If the spouse of an individual is the
beneficiary of all of the interests described in paragraph
(3XA), the spouse may elect—
"(i) not to have this subsection apply, and
"(ii) to have this section apply to such interests and
any retirement distribution attributable to such in-
terests as if such interests were the spouse's.
"(B) de minimis exception.—If 1 or more persons other
than the spouse are beneficiaries of a de minimis portion of
the interests described in paragraph (3XA)—
"(i) the spouse shall not be treated as failing to meet
the requirements of subparagraph (A), and
"(ii) if the spouse makes the election under subpara-
graph (A), this section shall not apply to such portion or
any retirement distribution attributable to such
portion."
(6)	Subparagraph (B) of section 4980A(d)(3) of the 1986 Code,
as redesignated by paragraph (1), is amended to read as follows:
"(B) the present value (as determined under rules pre-
scribed by the Secretary as of the valuation date prescribed
in subparagraph (A)) of a single life annuity with annual
payments equal to the limitation of subsection (c) (as in
effect for the year in which death occurs and as if the
individual had not died)."
(7)	Section 2013 of the 1986 Code (relating to credit for tax on
prior transfer) is amended by adding at the end thereof the
following new subsection:
"(g) treatment of additional tax under section 4980A.—For
purposes of this section, the estate tax paid shall not include any
portion of such tax attributable to section 4980A(d)."