Sec. 138503. Prohibited transactions relating to holding DISC or FSC in individual retirement account
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/bill/117/hr/5376/rh/section-138503·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
DISC or FSC in individual retirement account Section 4975(c)(1) is amended by striking or at the end of subparagraph (E), by striking the period at the end of subparagraph
(F)and inserting ; or , and by adding at the end the following new subparagraph: in the case of a DISC or FSC that receives any commission, or other payment, from an entity any stock or interest in which is owned by the individual for whose benefit an individual retirement account is maintained, holding of an interest in such DISC or FSC by the individual retirement account. . Section 4975(c) is amended by adding at the end the following new paragraph: DISC and FSC holdings DISC or FSC For purposes of paragraph (1)(G), if an individual retirement account holds an interest in an entity that owns (directly or indirectly) an interest in a DISC or FSC, the account shall be treated as holding an interest in such DISC or FSC. For purposes of determining ownership of stock (or any other interest) in an entity under paragraph (1)(G) and ownership of an interest in a DISC or FSC under subparagraph (A), the rules prescribed by section 318 for determining ownership shall apply, except that such section shall be applied by substituting 10 percent for 50 percent each place it appears. DISC and FSC For purposes of his subsection, the terms DISC and FSC shall have the respective meanings given such terms by section 992(a)(1)) and section 922(a) (as in effect before its repeal by the FSC Repeal and Extraterritorial Income Exclusion Act of 2000). . Section 4975(c)(3) is amended by adding at the end the following: The preceding sentence shall not apply in the case of a prohibited transaction described in paragraph (1)(G). . The amendments made by this section shall apply to stock and other interests acquired or held on or after December 31, 2021.