Page:United States Statutes at Large Volume 100 Part 3.djvu/612

 100 STAT. 2420

PUBLIC LAW 99-514—OCT. 22, 1986

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(i) SECRETARY TO PRESCRIBE AMENDMENT.—The Secretary of the Treasury or his delegate shall prescribe an amendment which allows a plan to make any distribution described in section 402(g)(2)(A)(ii) of such Code. (ii) ADOPTION BY PLAN.—If a plan adopts the amendment prescribed under clause (i) and makes a distribution in accordance with such amendment, such distribution shall be treated as made in accordance with the provisions of the plan. (4) SPECIAL RULE FOR TAXABLE YEARS OF PARTNERSHIPS WHICH INCLUDE JANUARY 1, 1987.—In the case of the taxable year of

any partnership which begins before January 1, 1987, and ends after January 1, 1987, elective deferrals (within the meaning of section 402(g)(3) of the Internal Revenue Code of 1986) made on behalf of a partner for such taxable year shall, for purposes of section 402(g)(3) of such Code, be treated as having been made ratably during such taxable year. (5) CASH OR DEFERRED ARRANGEMENTS.—The amendments made by this section shall not apply to employer contributions made during 1987 and attributable to services performed during 1986 under a qualified cash or deferred arrangement (as defined in section 401(k) of the Internal Revenue Code of 1986) if, under the terms of such arrangement as in effect on August 16, 1986— (A) the employee makes an election with respect to such contribution before January 1, 1987, and (B) the employer identifies the amount of such contribution before January 1, 1987. SEC. 1106. ADJUSTMENTS TO LIMITATIONS ON CONTRIBUTIONS AND BENEFITS UNDER QUALIFIED PLANS. (a) ADJUSTMENT OF ANNUAL CONTRIBUTION LIMITS.—Subpara-

graph (A) of section 415(c)(1) (relating to limitation for defined contribution plans) is amended to read as follows: "(A) $30,000 (or, if greater, V^, of the dollar limitation in effect under subsection (b)(l)(A)), or". (b) ADJUSTMENT OF DEFINED BENEFIT PLAN LIMITS.— (1) USE OF SOCIAL SECURITY RETIREMENT AGE.—

(A) IN GENERAL.—Subparagraphs (C) and (D) of section 415(b)(2) are each amended— (i) by striking out "age 62" and "age 65" each place they appear and inserting in lieu thereof "the social security retirement age", and (ii) by striking out the last sentence of subparagraph (C) and inserting in lieu thereof the following: "The reduction under this subparagraph shall be made in such manner as the Secretary may prescribe which is consistent with the reduction for old-age insurance benefits commencing before the social security retirement age under the Social Security Act." (B) DEFINITION OF SOCIAL SECURITY RETIREMENT AGE.—

Section 415(b) is amended by adding at the end thereof the following new paragraph: "(8) SOCIAL SECURITY RETIREMENT AGE DEFINED.—For purposes

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of this subsection, the term 'social security retirement age' means the age used as the retirement age under section 216(1) of

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