Page:United States Statutes at Large Volume 102 Part 4.djvu/500

 102 STAT. 3470

(B), an excess deferral under section 402(g)(2)(A), or an excess aggregate contribution under section 401(m)(6)(B)." (8) Subparagraph (B) of section 1116(fK2) of the Reform Act is amended by adding at the end thereof the following new sentence: "If clause (i) or (ii) applies to any arrangement adopted by a governmental unit, then any cash or deferred arrangement adopted by such unit on or after the date referred to in the applicable clause shall be treated as adopted before such date." (9) Section 401(k)(4)(B) of the 1986 Code is amended by adding at the end thereof the following new sentence: "This subparagraph shall not apply to a rural electric cooperative plan." (10) Clause (i) of section 1116(fK2XB) of the Reform Act is amended by striking out "(or political subdivision thereof)" and inserting in lieu thereof "or political subdivision thereof, or any agency or instrumentality thereof,".

26 USC 401 note.

26 USC 401 note.

'

Effective date. 26 USC 401 note.

PUBLIC LAW 100-647—NOV. 10, 1988

(1) AMENDMENTS RELATED TO SECTION 1117 OF THE REFORM ACT.—

(1) Paragraph (1) of section 401(m) of the 1986 Code (relating to nondiscrimination test for matching contributions and employee contributions) is amended by striking out "A plan" and inserting in lieu therepf "A defined contribution plan". (2) Paragraph (3) of section 401(m) of the 1986 Code (relating to requirements) is amended by adding at the end thereof the following new sentence: "If matching contributions are taken into account for purposes of subsection (k)(3)(A)(ii) for any plan year, such contributions shall not be taken into account under subparagraph (A) for such year." (3) The last sentence of section 401(m)(2)(B) of the 1986 Code is amended by striking out "such contributions" the first place it appears and inserting in lieu thereof "contributions to which this subsection applies". (4) Section 401(m)(4)(A) of the 1986 Code (defining matching contribution) is amended by striking out "the plan" each place it appears and inserting in lieu thereof "a defined contribution plan'. (5)(A) Section 401(m)(4)(B) of the 1986 Code (defining elective deferral) is amended by striking out "section 402(g)(3)(A)" and inserting in lieu thereof "section 402(g)(3)". (B) The amendment made by this paragraph shall take effect as if included in the amendments made by section 1120 of the Reform Act. (6) Subparagraph (C) of section 401(m)(6) of the 1986 Code is amended by striHng out "EXCESS" in the subparagraph heading and inserting in lieu thereof "EXCESS AGGREGATE". (7) Section 401(m)(7)(A) of the 1986 Code (relating to additional tax of section 72(t) not applicable) is amended by striking out "paragraph (8)" and inserting in lieu thereof "paragraph (6)". (8) Section 4979(a)(l) of the 1986 Code (relating to tax on certain excess contributions) is amended by striking out "a cash or deferred arrangement which is part of. (9) Section 4979(c) of the 1986 Code (defining excess contributions) is amended— (A) by striking out "403(b),", and (B) by striking out "408(k)(8)(B)" and inserting in lieu thereof "408(k)(6)(C)". (10) Section 4979(d) of the 1986 Code (defining excess aggregate contribution) is amended by adding at the end thereof the

�