Page:United States Statutes at Large Volume 115 Part 1.djvu/124

 115 STAT. 102 PUBLIC LAW 107-16-JUNE 7, 2001 Applicability. 26 USC 416 note. 26 USC 404. Applicability. 26 USC 404 note. Applicability. 26 USC 457 note. (e) FROZEN PLAN EXEMPT FROM MINIMUM BENEFIT REQUIRE- MENT.— Subparagraph (C) of section 416(c)(1) (relating to defined benefit plans) is amended— (A) by striking "clause (ii)" in clause (i) and inserting "clause (ii) or (iii)"; and (B) by adding at the end the following: "(iii) EXCEPTION FOR FROZEN PLAN. —For purposes of determining an employee's years of service with the employer, any service with the employer shall be disregarded to the extent that such service occurs during a plan year when the plan benefits (within the meaning of section 410(b)) no key employee or former key employee.". (f) EFFECTIVE DATE. —The amendments made by this section shall apply to years beginning after December 31, 2001. SEC. 614. ELECTIVE DEFERRALS NOT TAKEN INTO ACCOUNT FOR PUR- POSES OF DEDUCTION LIMITS. (a) IN GENERAL.—Section 404 (relating to deduction for contributions of an employer to an employees' trust or annuity plan and compensation under a deferred payment plan) is amended by adding at the end the following new subsection: "(n) ELECTIVE DEFERRALS NOT TAKEN INTO ACCOUNT FOR PUR- POSES OF DEDUCTION LIMITS. —Elective deferrals (as defined in section 402(g)(3)) shall not be subject to any limitation contained in paragraph (3), (7), or (9) of subsection (a), and such elective deferrals shall not be taken into account in applying any such limitation to any other contributions.". (b) EFFECTIVE DATE.—The amendment made by this section shall apply to years beginning after December 31, 2001. SEC. 615. REPEAL OF COORDINATION REQUIREMENTS FOR DEFERRED COMPENSATION PLANS OF STATE AND LOCAL GOVERN- MENTS AND TAX-EXEMPT ORGANIZATIONS. (a) IN GENERAL. —Subsection (c) of section 457 (relating to deferred compensation plans of State and local governments and tax-exempt organizations), as amended by section 611, is amended to read as follows: "(c) LIMITATION.—The maximum amount of the compensation of any one individual which may be deferred under subsection (a) during any taxable year shall not exceed the amount in effect under subsection (b)(2)(A) (as modified by any adjustment provided under subsection (b)(3)).". (b) EFFECTIVE DATE. —The amendment made by subsection (a) shall apply to years beginning after December 31, 2001. SEC. 616. DEDUCTION LIMITS. (a) MODIFICATION OF LIMITS. — (1) STOCK BONUS AND PROFIT SHARING TRUSTS. — (A) IN GENERAL.— Subclause (I) of section 404(a)(3)(A)(i) (relating to stock bonus and profit sharing trusts) is amended by striking "15 percent" and inserting "25 percent". (B) CONFORMING AMENDMENT.— Subparagraph (C) of section 404(h)(1) is amended by striking "15 percent" each place it appears and inserting "25 percent". (2) DEFINED CONTRIBUTION PLANS.—

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