Page:United States Statutes at Large Volume 115 Part 1.djvu/123

 PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 101 (2) CONFORMING AMENDMENT.—Section 416(i)(l)(B)(iii) is 26 USC 4i6. amended by striking "and subparagraph (A)(ii)". (b) MATCHING CONTRIBUTIONS TAKEN INTO ACCOUNT FOR MIN- IMUM CONTRIBUTION REQUIREMENTS.— Section 416(c)(2)(A) (relating to defined contribution plans) is amended by adding at the end the following: "Employer matching contributions (as defined in section 401(m)(4)(A)) shall be taken into account for purposes of this subparagraph (and any reduction under this sentence shall not be taken into account in determining whether section 401(k)(4)(A) applies).". (c) DISTRIBUTIONS DURING LAST YEAR BEFORE DETERMINATION DATE TAKEN INTO ACCOUNT.— (1) IN GENERAL. — Paragraph (3) of section 416(g) is amended to read as follows: "(3) DISTRIBUTIONS DURING LAST YEAR BEFORE DETERMINA- TION DATE TAKEN INTO ACCOUNT.— "(A) IN GENERAL.—For purposes of determining— "(i) the present value of the cumulative accrued benefit for any employee, or "(ii) the amount of the account of any employee, such present value or amount shall be increased by the aggregate distributions made with respect to such employee under the plan during the 1-year period ending on the determination date. The preceding sentence shall also apply to distributions under a terminated plan which if it had not been terminated would have been required to be included in an aggregation group. "(B) 5-YEAR PERIOD IN CASE OF IN-SERVICE DISTRIBU- TION. —In the case of any distribution made for a reason other than separation from service, death, or disability, subparagraph (A) shall be applied by substituting '5-year period'for'1-year period'.". (2) BENEFITS NOT TAKEN INTO ACCOUNT. — Subparagraph (E) of section 416(g)(4) is amended— (A) by striking "LAST 5 YEARS" in the heading and inserting "LAST YEAR BEFORE DETERMINATION DATE"; and (B) by striking "5-year period" and inserting "1-year period". (d) DEFINITION OF TOP-HEAVY PLANS. —Paragraph (4) of section 416(g) (relating to other special rules for top-heavy plans) is amended by adding at the end the following new subparagraph: "(H) CASH OR DEFERRED ARRANGEMENTS USING ALTER- NATIVE METHODS OF MEETING NONDISCRIMINATION REQUIRE- MENTS.— The term 'top-heavy plan' shall not include a plan which consists solely of— "(i) a cash or deferred arrangement which meets the requirements of section 40 l(k)( 12), and "(ii) matching contributions with respect to which the requirements of section 40 l(m)( 11) are met. If, but for this subparagraph, a plan would be treated as a top-heavy plan because it is a member of an aggregation group which is a top-heavy group, contributions under the plan may be taken into account in determining whether any other plan in the group meets the requirements of subsection (c)(2).".

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