Page:United States Statutes at Large Volume 102 Part 4.djvu/516

 102 STAT. 3486

PUBLIC LAW 100-647—NOV. 10, 1988

than paragraph (1)), the term 'wages' shall include any amount which is includible in gross income by reason of section 89.' (B) Section 3231(e) of the 1986 Code (defining compensation) is amended by adding at the end thereof the following new paragraph: "(8)

BENEFITS PROVIDED UNDER CERTAIN EMPLOYEE BENEFIT

PLANS.—Notwithstanding any other paragraph of this subsection (other than paragraph (2)), the term 'compensation' shall include any amount which is includible in gross income by reason of section 89." (C) Section 3306 of the 1986 Code (relating to definitions) is amended by adding at the end thereof the following new subsection: "(t) BENEFITS

PROVIDED UNDER

CERTAIN

EMPLOYEE BENEFIT

PLANS.—Notwithstanding any paragraph of subsection (b) (other than paragraph (1)), the term 'wages' shall include any amount which is includible in gross income by reason of section 89.' (D) Section 3401 of the 1986 Code (relating to definitions) is amended by adding at the end thereof the following new subsection: "(g)

BENEFITS PROVIDED UNDER

CERTAIN

EMPLOYEE BENEFIT

PLANS.—Notwithstanding any paragraph of subsection (a), the term 'wages' shall include any amount which is includible in gross income by reason of section 89.' (E) The third to last sentence of section 209 of the Social 42 USC 409. Security Act is amended— (i) by striking out the period at the end of clause (2) and inserting in lieu thereof ", or", and (ii) by inserting after clause (2) the following new clause: "(3) Any amount required to be included in gross income under section 89 of the Internal Revenue Code of 1986." 26 USC 3121 (F) The amendments made by this paragraph shall not apply note. to any individual who separated from service with the employer before January 1, 1989. Wages. (23XA) Sections 3121(a)(5)(G) and 3306(b)(5)(G) of the 1986 Code are each amended by inserting "if such payment would not be treated as wages without regard to such plan and it is reasonable to believe that (if section 125 applied for purposes of this section) section 125 would not treat any wages as constructively received" after "section 125)". (B) Section 209(e)(9) of the Social Security Act is amended by inserting "if such payment would not be treated as wages without regard to such plan and it is reasonable to believe that (if section 125 applied for purposes of this section) section 125 would not treat any wages as constructively received" after "1986)". 26USe6039B, (24) Section 1151(h)(3) of the Reform Act is amended by 6039D. striking out "Section 6039B(c)" and inserting in lieu thereof "Section 6039D(c)". 26 USC 89 note. (25) Paragraph (i) of section 1151(k) of the Reform Act is amended by adding at the end thereof the following new sentence: "Notwithstanding the preceding sentence, the amendments made by subsections (e)(l) and (i)(3)(C) shall, to the extent they relate to sections 106, 162(i)(2), and 162(k) of the Internal Revenue Code of 1986, apply to years beginning after 1986." (26) Section 1151(k) of the Reform Act is amended by adding at the end thereof the following new paragraph:

�