(1) the total number of shares held by such plan or cooperative after such disposition is less than the total number of employer securities held immediately after such sale, or
(2) except to the extent provided in regulations, the value of qualified securities held by such plan or cooperative after such disposition is less than 30 percent of the total value of all employer securities as of such disposition (60 percent of the total value of all employer securities as of such disposition in the case of any qualified employer securities acquired in a qualified gratuitous transfer to which applied),
(1) In general
The amount of the tax imposed by subsection (a) shall be equal to 10 percent of the amount realized on the disposition.
(2) Limitation
The amount realized taken into account under paragraph (1) shall not exceed that portion allocable to qualified securities acquired in the sale to which section 1042 applied or acquired in the qualified gratuitous transfer to which section 664(g) applied determined as if such securities were disposed of—
(A) first from qualified securities to which section 1042 applied or to which applied acquired during the 3-year period ending on the date of the disposition, beginning with the securities first so acquired, and
(B) then from any other employer securities.
If subsection (d) applies to a disposition, the disposition shall be treated as made from employer securities in the opposite order of the preceding sentence.
(3) Distributions to employees
The amount realized on any distribution to an employee for less than fair market value shall be determined as if the qualified security had been sold to the employee at fair market value.
(1) the employer, or
(2) the eligible worker-owned cooperative,
(1) Certain distributions to employees
This section shall not apply with respect to any distribution of qualified securities (or sale of such securities) which is made by reason of—
(A) the death of the employee,
(B) the retirement of the employee after the employee has attained 59½ years of age,
(C) the disability of the employee (within the meaning of ), or
(D) the separation of the employee from service for any period which results in a 1-year break in service (within the meaning of ).
(2) Certain reorganizations
In the case of any exchange of qualified securities in any reorganization described in for stock of another corporation, such exchange shall not be treated as a disposition for purposes of this section.
(3) Liquidation of corporation into cooperative
In the case of any exchange of qualified securities pursuant to the liquidation of the corporation issuing qualified securities into the eligible worker-owned cooperative in a transaction which meets the requirements of section 332 (determined by substituting “100 percent” for “80 percent” each place it appears in ), such exchange shall not be treated as a disposition for purposes of this section.
(4) Dispositions to meet diversification requirements
This section shall not apply to any disposition of qualified securities which is required under .
(1) Employee stock ownership plan
The term “employee stock ownership plan” has the meaning given to such term by .
(2) Qualified securities
The term “qualified securities” has the meaning given to such term by ; except that such section shall be applied without regard to subparagraph (B) thereof for purposes of applying this section and section 4979A with respect to securities acquired in a qualified gratuitous transfer (as defined in ).
(3) Eligible worker-owned cooperative
The term “eligible worker-owned cooperative” has the meaning given to such term by .
(4) Disposition
The term “disposition” includes any distribution.
(5) Employer securities
The term “employer securities” has the meaning given to such term by section 409(