Page:United States Statutes at Large Volume 100 Part 3.djvu/611

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2419

tion, the limitation of paragraph (1) for any taxable year shall be increased by whichever of the following is the least: "(i) $3,000, "(ii) $15,000 reduced by amounts not included in gross income for prior taxable years by reason of this paragraph, or "(iii) the excess of $5,000 multiplied by the number of years of service of the employee with the qualified organization over the employer contributions described in paragraph (3) made by the organization on behalf of such employee for prior taxable years. "(B) QUALIFIED ORGANIZATION.—For purposes of this paragraph, the term 'qualified organization' means any educational organization, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches. Such term includes any organization described in section 414(e)(3)(B)(ii). Terms used in this subparagraph shall have the same meaning as when used in section 415(c)(4). "(C) QUALIFIED EMPLOYEE.—For purposes of this paragraph, the term 'qualified employee' means any employee who has completed 15 years of service with the qualified organization.' (b) REPORTING REQUIREMENTS.—Section 6051(a) (relating to requirements of receipts for employees) is amended by striking "and" at the end of paragraph (6), by striking the period at the end of paragraph (7), and by inserting after paragraph (7) the following new paragraph: "(8) the total amount of elective deferrals (within the meaning of section 402(g)(3)) and compensation deferred under section 457." (c) EFFECTIVE DATES.—

(1) IN GENERAL.—Except as provided in this subsection, the amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1986. (2) DEFERRALS UNDER COLLECTIVE BARGAINING AGREEMENTS.—

In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before March 1, 1986, the amendment made by subsection (a) shall not apply to contributions made pursuant to such an agreement for taxable years beginning before the earlier of— (A) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after February 28, 1986), or (B) January 1, 1989. Such contributions shall be taken into account for purposes of applying the amendment made by this section to other plans. (3) DISTRIBUTIONS MADE BEFORE PLAN AMENDMENT.—

(A) IN GENERAL.—If a plan amendment is required to allow the plan to make any distribution described in section 402(g)(2)(A)(ii) of the Internal Revenue Code of 1986, any such distribution which is made before the close of the 1st plan year for which such amendment is required to be in effect under section 1140 shall be treated as made in accordance with the provisions of such plan. (B) DISTRIBUTIONS PURSUANT TO MODEL AMENDMENT.—

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