Page:United States Statutes at Large Volume 115 Part 1.djvu/120

 115 STAT. 98 PUBLIC LAW 107-16-JUNE 7, 2001 gross income to the extent the amount of such deferrals for the taxable year exceeds the applicable dollar amount. "(B) APPLICABLE DOLLAR AMOUNT. —For purposes of subparagraph (A), the applicable dollar amount shall be the amount determined in accordance with the following table: "For taxable years The applicable beginning in dollar amount: calendar year: 2002 $11,000 2003 $12,000 2004 $13,000 2005 $14,000 2006 or thereafter $15,000. ". (2) COST-OF-LIVING ADJUSTMENT. —Paragraph (5) of section 26 USC 402. 402(g) is amended to read as follows: "(5) COST-OF-LIVING ADJUSTMENT.—In the case of taxable years beginning after December 31, 2006, the Secretary shall adjust the $15,000 amount under paragraph (1)(B) at the same time and in the same manner as under section 415(d), except that the base period shall be the calendar quarter beginning July 1, 2005, and any increase under this paragraph which is not a multiple of $500 shall be rounded to the next lowest multiple of $500.". (3) CONFORMING AMENDMENTS. — (A) Section 402(g) (relating to limitation on exclusion for elective deferrals), as amended by paragraphs (1) and (2), is further amended by striking paragraph (4) and redesignating paragraphs (5), (6), (7), (8), and (9) as paragraphs (4), (5), (6), (7), and (8), respectively. (B) Paragraph (2) of section 457(c) is amended by striking "402(g)(8)(A)(iii)" and inserting "402(g)(7)(A)(iii)". (C) Clause (iii) of section 501(c)(18)(D) is amended by striking "(other than paragraph (4) thereof)". (e) DEFERRED COMPENSATION PLANS OF STATE AND LOCAL GOVERNMENTS AND TAX-EXEMPT ORGANIZATIONS. — (1) IN GENERAL.— Section 457 (relating to deferred compensation plans of State and local governments and tax-exempt organizations) is amended— (A) in subsections (b)(2)(A) and (c)(1) by striking "$7,500" each place it appears and inserting "the applicable dollar amount"; and (B) in subsection (b)(3)(A) by striking "$15,000" and inserting "twice the dollar amount in effect under subsection (b)(2)(A)". (2) APPLICABLE DOLLAR AMOUNT; COST-OF-LIVING ADJUST- MENT. — Paragraph (15) of section 457(e) is amended to read as follows: "(15) APPLICABLE DOLLAR AMOUNT.— " (A) IN GENERAL.— The applicable dollar amount shall be the amount determined in accordance with the following table: "For taxable years The applicable beginning in dollar amount: calendar year: 2002 $11,000 2003 $12,000 2004 $13,000

�