[United States Statutes at Large, Volume 120, 109th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

120 STAT. 667

Public Law 109-264
109th Congress

An Act


 
To amend title 4 of the United States Code to clarify the treatment of
self-employment for purposes of the limitation on State taxation of
retirement income.  NOTE: Aug. 3, 2006 -  [H.R. 4019]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF TREATMENT OF SELF-EMPLOYMENT FOR PURPOSES OF
THE LIMITATION ON STATE TAXATION OF RETIREMENT INCOME.

(a) In General.--Section 114(b)(1)(I) of title 4, United States
Code, is amended--
(1) by inserting ``(or any plan, program, or arrangement
that is in writing, that provides for retirement payments in
recognition of prior service to be made to a retired partner,
and that is in effect immediately before retirement begins)''
after ``section 3121(v)(2)(C) of such Code'',
(2) by inserting ``which may include income described in
subparagraphs (A) through (H)'' after ``(not less frequently
than annually'',
(3) by adding at the end the following:
``The fact that payments may be adjusted from time to
time pursuant to such plan, program, or arrangement to
limit total disbursements under a predetermined formula,
or to provide cost of living or similar adjustments,
will not cause the periodic payments provided under such
plan, program, or arrangement to fail the `substantially
equal periodic payments' test.'', and
(4) by adding at the end the following:
``(4) For purposes of this section, the term `retired
partner' is an individual who is described as a partner in
section 7701(a)(2) of the Internal Revenue Code of 1986 and who
is retired under such individual's partnership agreement.''.

(b) Application.--The  NOTE: 4 USC 114 note.  amendments made by
this section apply to amounts received after December 31, 1995.

Approved August 3, 2006.

LEGISLATIVE HISTORY--H.R. 4019:
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HOUSE REPORTS: No. 109-542 (Comm. on the Judiciary).
CONGRESSIONAL RECORD, Vol. 152 (2006):
July 17, considered and passed House.
July 24, considered and passed Senate.