PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3493

the participant's account wMch the employee elected to have
reinvested under section 401(aX28XB)."

(6) Section 401(aX28XB) of the 1986 Code is amended by adding
at the end thereof the following new clause:

"(v) COORDINATION WITH DISTRIBUTION RULES.—Any
distribution required by this subparagraph shall not be
taken into account in determining whether—

"(D a subsequent distribution is a lump-sum dis-
tribution under section 402(eX4XA), or

"(ID section 402(aX5XBXiii) applies to a subse-
quent distribution/'
(k) AMENDMENTS RELATED TO SECTION 1176 OF THE REFORM ACT.—

(1) Section 401(aX22) of the 1986 Code is amended by striking
put "is not publicly traded" each place it appears and inserting
in lieu thereof "is not readily tradable on an established
market".

(2) Section 401(aX22) of the 1986 Code is amended by adding at
the end thereof the following new sentence: "For purposes of
the preceding sentence, subsections (b), (c), (m), and (o) of section
414 shall not apply except for determining whether stock of the
employer is not readily tradable on an established market."

(3) Section 4090X4) of the 1986 Code (relating to nonvoting
common stock may be acquired in certain cases), as added by
section 1176(b) of the Reform Act, is redesignated as para-
graph (5).

(1) AMENDMENTS RELATED TO SECTION 1177 OF THE REFORM ACT.—

(1) Paragraph (2) of section 1177(b) of the Reform Act is 26 USC 38 note,
amended by striking out "section 143(dX3XO" and inserting in

lieu thereof "section 146(dX3XQ".

(2) Subsection (b) of section 1177 of the Reform Act is amended
by striking out "made by this subtitle" and inserting in lieu
thereof "made by section 1175".

(3) If any newspaper corporation described in section 1177(b)
of the Reform Act, as amended by this subsection, pays in cash a
dividend within 60 days after the date of the enactment of this
Act to the corporation's employee stock ownership plans and if
a corporate resolution declaring such dividend was adopted
before November 30, 1987, and such resolution specifies that
such dividend shall be contingent upon passage by the Congress
of technical corrections, then such dividend (to the extent the
aggregate amount so paid does not exceed $3,500,000) shall be
treated as if it had been declared and paid in 1987 for all
purposes of the Internal Revenue Code of 1986.

Newspapers.
26 USC 38 note.

SEC. 1012. AMENDMENTS RELATED TO TITLE XII OF THE REFORM ACT.

(a) AMENDMENTS RELATED TO SECTION 1201 OF THE REFORM ACT.—
(1XA) Subparagraph (C) of section 904(dX2) of the 1986 Code is
amended to read as follows:

"(C) FINANCIAL SERVICES INCOME.—

"(i) IN GENERAL.—Except as otherwise provided in
this subparagraph, the term 'financial services income1
means any income which is received or accrued by any
person predominantly engaged in the active conduct of
a banking, insurance, financing, or similar business,
and which is—

"(I) described in clause (ii),

Corporations.