Page:United States Statutes at Large Volume 115 Part 1.djvu/122

 115 STAT. 100 PUBLIC LAW 107-16-JUNE 7, 2001 (h) ROUNDING RULE RELATING TO DEFINED BENEFIT PLANS AND DEFINED CONTRIBUTION PLANS. —Paragraph (4) of section 26 USC 415. 415(d) is amended to read as follows: " (4) ROUNDING.— "(A) $160,000 AMOUNT.— Any increase under subparagraph (A) of paragraph (1) which is not a multiple of $5,000 shall be rounded to the next lowest multiple of $5,000. "(B) $40,000 AMOUNT.— Any increase under subparagraph (C) of paragraph (1) which is not a multiple of $1,000 shall be rounded to the next lowest multiple of $1,000. ". (i) EFFECTIVE DATES. — Applicability. (1) IN GENERAL.— The amendments made by this section 26 USC 415 note. shall apply to years beginning after December 31, 2001. (2) DEFINED BENEFIT PLANS.— The amendments made by subsection (a) shall apply to years ending after December 31, 2001. SEC. 612. PLAN LOANS FOR SUBCHAPTER S OWNERS, PARTNERS, AND SOLE PROPRIETORS. (a) IN GENERAL. —Subparagraph (B) of section 4975(f)(6) (relating to exemptions not to apply to certain transactions) is amended by adding at the end the following new clause: " (iii) LOAN EXCEPTION. —For purposes of subparagraph (A)(i), the term 'owner-employee' shall only include a person described in subclause (II) or (III) of clause (i).". (b) AMENDMENT OF ERISA. —Section 408(d)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(d)(2)) is amended by adding at the end the following new subparagraph: "(C) For purposes of paragraph (1)(A), the term 'owneremployee' shall only include a person described in clause (ii) or (iii) of subparagraph (A).". Applicability. (c) EFFECTIVE DATE. —The amendment made by this section 26 USC 4975 shall apply to years beginning after December 31, 2001. note. SEC. 613. MODIFICATION OF TOP-HEAVY RULES. (a) SIMPLIFICATION OF DEFINITION OF KEY EMPLOYEE.— (1) IN GENERAL.— Section 416(i)(l)(A) (defining key employee) is amended— (A) by striking "or any of the 4 preceding plan years" in the matter preceding clause (i); (B) by striking clause (i) and inserting the following: "(i) an officer of the employer having an annual compensation greater than $130,000,"; (C) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively; and (D) by striking the second sentence in the matter following clause (iii), as redesignated by subparagraph (C), and by inserting the following: "in the case of plan years beginning after December 31, 2002, the $130,000 amount in clause (i) shall be adjusted 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, 2001, and any increase under this sentence which is not a multiple of $5,000 shall be rounded to the next lower multiple of $5,000.".

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