Page:United States Statutes at Large Volume 102 Part 4.djvu/515

 PUBLIC LAW 106-647—NOV. 10, l§8g

102 STAT. 3485

requirements of this subsection" and inserting in lieu thereof "In the case of a highly compensated employee, subsection (a) shall not apply to any benefit attributsJble to a plan year". (O Paragraph (2) of section 125(b) of the 1986 Ckxle is amended by striking out "a plan shall be treated as failing to meet the requirements of this subsection" and inserting in lieu thereof "subsection (a) shall not apply to any plan year". (12) Subparagraph (B) of section 125(c)(l) of the 1986 Code (defining cafeteria plans) is amended to read as follows: "(B) the participant may choose among 2 or more benefits consisting of cash and qusdified benefits." (13XA) Paragraph (1) of section 125(e) of the 1986 Code (defining qualified benefits) is amended by inserting "and without regard to section 89(a)" after "subsection (a)". (B) The last sentence of section 125(b)(2) of the 1986 Code is amended to read as follows: "For purposes of the preceding sentence, qualified benefits shall not include benefits which (without r^ard to this paragraph) are includible in gross income." (14) Subsection (d) of section 129 of the 1986 (Dode is amended by redesignating paragraph (8) as paragraph (7). (15) Paragraph (7) of section 129(d) of the 1986 Code (as so redesignated) is amended— (A) by inserting "under all plans of the employer" after "employees" the 2nd and 3rd time it appears in subparagraph (A), (B) by striking out "there shall be disr^arded" in subparagraph (B) and inserting in lieu thereof "a plan may disregard", and (C) by striking out "415(q)(7)" in subparagraph (B) and inserting in lieu thereof "414(q)(7)". (16) Section 414(m)(4) of the 1986 Code is amended by inserting "and" at the end of subparagraph (A), by striking out the comma at the end of subparagraph (B) and inserting in lieu thereof a period, and by striking out subparagraphs (C) and (D). (17) Paragraph (2) of section 414(t) of the 1986 Code is amended by striking out "132," and inserting in lieu thereof "132, 162(i)(2), 162(k),". (18) Paragraph (6) of section 129(e) of the 1986 Code is amended by striling out "of subsection (d)" and inserting in lieu thereof "of subsection (d) (other than paragraphs (4) and (7) thereof)". (19) Subparagraph (C) of section 414(n)(3) of the 1986 Code is amended by striking out "132," and inserting in lieu thereof "132,162(i)(2), 162(k),". (20) Section 414(t)(l) of the 1986 Code (relating to application of controlled group rules to certain employees) is amended by striking out "of section 414" each place it appears. (21) Section 89(j)(6) of the 1986 Code is amended by striking out "described in subparagraph (A), (B), or (Q of subsection (i)(2)". (22XA) Section 3121 of the 1986 Code (relating to definitions) is amended by adding at the end thereof the following new subsection: "(x)

BENEFITS PROVTOED UNDER

CERTAIN E}MPLOYEE BENEFIT

PLANS.—Notwithstanding any paragraph of subsection (a) (other

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