diff --git a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
index b761988c64d..2133bc10edc 100644
--- a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
+++ b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
@@ -22,9 +22,7 @@ import com.intellij.formatting.SpacingBuilder
 import com.intellij.formatting.SpacingBuilder.RuleBuilder
 import com.intellij.lang.ASTNode
 import com.intellij.psi.PsiWhiteSpace
-import com.intellij.psi.TokenType
 import com.intellij.psi.codeStyle.CodeStyleSettings
-import com.intellij.psi.impl.source.tree.TreeUtil
 import com.intellij.psi.tree.IElementType
 import com.intellij.psi.tree.TokenSet
 import org.jetbrains.kotlin.KtNodeTypes.*
@@ -147,15 +145,9 @@ fun createSpacingBuilder(settings: CodeStyleSettings, builderUtil: KotlinSpacing
             beforeInside(IDENTIFIER, CLASS).spaces(1)
             beforeInside(IDENTIFIER, OBJECT_DECLARATION).spaces(1)
 
-            betweenInside(VAL_KEYWORD, IDENTIFIER, PROPERTY).spaces(1)
-            betweenInside(VAR_KEYWORD, IDENTIFIER, PROPERTY).spaces(1)
-            betweenInside(VAL_KEYWORD, TYPE_REFERENCE, PROPERTY).spaces(1)
-            betweenInside(VAR_KEYWORD, TYPE_REFERENCE, PROPERTY).spaces(1)
+            after(VAL_KEYWORD).spaces(1)
+            after(VAR_KEYWORD).spaces(1)
             beforeInside(PROPERTY_ACCESSOR, PROPERTY).spacing(1, 0, 0, true, 0)
-            betweenInside(VAL_KEYWORD, IDENTIFIER, VALUE_PARAMETER).spaces(1)
-            betweenInside(VAR_KEYWORD, IDENTIFIER, VALUE_PARAMETER).spaces(1)
-            betweenInside(VAL_KEYWORD, TYPE_REFERENCE, VALUE_PARAMETER).spaces(1)
-            betweenInside(VAR_KEYWORD, TYPE_REFERENCE, VALUE_PARAMETER).spaces(1)
             betweenInside(TYPE_PARAMETER_LIST, IDENTIFIER, PROPERTY).spaces(1)
             betweenInside(TYPE_REFERENCE, DOT, PROPERTY).spacing(0, 0, 0, false, 0)
             betweenInside(DOT, IDENTIFIER, PROPERTY).spacing(0, 0, 0, false, 0)
@@ -164,11 +156,10 @@ fun createSpacingBuilder(settings: CodeStyleSettings, builderUtil: KotlinSpacing
             afterInside(RETURN_KEYWORD, RETURN).spaces(1)
             afterInside(LABEL_QUALIFIER, RETURN).spaces(1)
 
-            betweenInside(FUN_KEYWORD, IDENTIFIER, FUN).spaces(1)
-            betweenInside(FUN_KEYWORD, TYPE_REFERENCE, FUN).spaces(1)
+            betweenInside(FUN_KEYWORD, VALUE_PARAMETER_LIST, FUN).spacing(0, 0, 0, false, 0)
+            after(FUN_KEYWORD).spaces(1)
             betweenInside(TYPE_PARAMETER_LIST, TYPE_REFERENCE, FUN).spaces(1)
             betweenInside(TYPE_PARAMETER_LIST, IDENTIFIER, FUN).spaces(1)
-            betweenInside(FUN_KEYWORD, VALUE_PARAMETER_LIST, FUN).spacing(0, 0, 0, false, 0)
             betweenInside(TYPE_REFERENCE, DOT, FUN).spacing(0, 0, 0, false, 0)
             betweenInside(DOT, IDENTIFIER, FUN).spacing(0, 0, 0, false, 0)
             afterInside(IDENTIFIER, FUN).spacing(0, 0, 0, false, 0)
diff --git a/idea/testData/formatter/SpacesInDeclarations.after.kt b/idea/testData/formatter/SpacesInDeclarations.after.kt
index b5a665f7c38..40f2bc16cb6 100644
--- a/idea/testData/formatter/SpacesInDeclarations.after.kt
+++ b/idea/testData/formatter/SpacesInDeclarations.after.kt
@@ -58,6 +58,12 @@ public var varWithAccessors2: Int
         /**/
     }
 }
+//-----------------------
+val <T> some1 = 1
+val <T> some2 = 1
+val
+        <T> some3 = 1
+
 //-----------------------
 annotation class A1
 
@@ -94,4 +100,15 @@ public object FooObject1 {
 public
 object FooObject2 {
 
+}
+
+fun <T> foo_1() {
+}
+
+fun <T> foo_2() {
+}
+
+fun
+        <T>
+        foo_3() {
 }
\ No newline at end of file
diff --git a/idea/testData/formatter/SpacesInDeclarations.kt b/idea/testData/formatter/SpacesInDeclarations.kt
index 755c6313162..68cb052a017 100644
--- a/idea/testData/formatter/SpacesInDeclarations.kt
+++ b/idea/testData/formatter/SpacesInDeclarations.kt
@@ -57,6 +57,12 @@ public       var         varWithAccessors2:    Int
         /**/
     }
 }
+//-----------------------
+val       <T> some1 = 1
+val<T> some2 = 1
+val
+        <T> some3 = 1
+
 //-----------------------
 annotation class A1
 annotation class A2
@@ -94,4 +100,11 @@ public   object    FooObject1   {
 public
 object    FooObject2   {
 
-}
\ No newline at end of file
+}
+
+fun<T> foo_1() {}
+fun     <T> foo_2() {}
+
+fun
+        <T>
+        foo_3() {}
\ No newline at end of file