October 3, 1989
TO: PENSION COMMITTEE NO. 7-89
RE: S. 1564, EXCESSIVE CHURNING AND SPECULATION ACT OF 1989
__________________________________________________________
Attached for your information are copies of S. 1564, The
Excessive Churning and Speculation Act of 1989, introduced by
Senators Kassebaum and Dole, and the floor statement accompanying
its introduction.
The bill would amend the Internal Revenue Code to impose an
excise tax on gains on the part of applicable employer pension
plans from the sale of assets held for 180 days or less. The tax
on gains from assets held for 30 days or less would be ten
percent, while the tax on gains from assets held longer than 30
days but less than 180 days would be five percent. The provision
would apply to qualified plans under section 401(a), annuity
plans under section 403(a), and simplified employee pensions
under section 408(k) with assets of at least one million dollars.
We will keep you informed of further developments.
Kathy D. Ireland
Assistant General Counsel
Attachment