Section 1 Price protection payments treated as eligible rollover distributions
“(A) In general—For purposes of”
“(B) Special rule for 2020—If all or any portion”
“(C) Certain price protection payments treated as eligible rollover distributions
“(i) Distributions prior to 2023—In the case of a price protection payment made after December 12, 2019, with respect to a plan year ending before January 1, 2023, such payment will be treated as an eligible rollover distribution if such payment is made pursuant to a price protection agreement which provides a payment to a participant (or beneficiary of such participant) who separates from service with an employer due to retirement, death or disability.
“(ii) Distributions after 2022—In the case of a price protection payment made with respect to a plan year ending after December 31, 2022, such payment will be treated as an eligible rollover distribution if such payment is made pursuant to a price protection agreement which—
“(I) is offered as part of an employee stock ownership plan,
“(II) covers any separation of service of a plan participant regardless of the reason for such separation, and
“(III) pays price protection payments upon commencement of plan distributions under section 409(o)(1)(A)(i).
“(D) Definitions—For purposes of this paragraph—
“(i) Price protection agreement—The term “price protection agreement” means an agreement between an employer maintaining an employee stock ownership plan and the trustee of such plan, pursuant to which a participant or beneficiary receives a price protection payment for stock distributions from such plan following an exempt loan taken on by the employer.
“(ii) Price protection payment—The term “price protection payment” means an amount paid to a plan participant or beneficiary pursuant to a price protection agreement if such agreement provides that price protection payments will be made—
“(I) within a specified period of time, not to exceed the shorter of 5 years or the life of an exempt loan, following the purchase of employer securities with such loan, and
“(II) in an amount equal to the excess, if any, of—
“(aa) the fair market value of the shares of employer securities at the time of the distribution determined without regard to such exempt loan, over
“(bb) the fair market value of the employer securities at the time of distribution.
“(iii) Employee stock ownership plan—The term “employee stock ownership plan” has the meaning given such term in section 4975(e)(7).
“(iv) Exempt loan—The term “exempt loan” means a loan described in section 4975(d)(3).”
“(H) Price protection agreements—A plan shall not be considered discriminatory within the meaning of paragraph (4) merely because the plan is subject to a price protection agreement (as defined in section 402(c)(4)(D)(ii)) which favors highly compensated employees.”
“(p) Price protection payments not taken into account for purposes of deduction limits—Price protection payments (as defined in section 402(c)(4)(D)(i)) shall not be subject to any limitation contained in subsection (a)(3).”