Page:United States Statutes at Large Volume 115 Part 1.djvu/125

 PUBLIC LAW 107-16—JUNE 7, 2001 115 STAT. 103 (A) IN GENERAL. — Clause (v) of section 404(a)(3)(A) 26 USC 404. (relating to stock bonus and profit sharing trusts) is amended to read as follows: "(v) DEFINED CONTRIBUTION PLANS SUBJECT TO THE FUNDING STANDARDS.—Except as provided by the Secretary, a defined contribution plan which is subject to the funding standards of section 412 shall be treated in the same manner as a stock bonus or profit-sharing plan for purposes of this subparagraph.". (B) CONFORMING AMENDMENTS. — (i) Section 404(a)(1)(A) is amended by inserting "(other than a trust to which paragraph (3) applies)" after "pension trust". (ii) Section 404(h)(2) is amended by striking "stock bonus or profit-sharing trust" and inserting "trust subject to subsection (a)(3)(A)". (iii) The heading of section 404(h)(2) is amended by striking "STOCK BONUS AND PROFIT-SHARING TRUST" and inserting "CERTAIN TRUSTS". (b) COMPENSATION.— (1) IN GENERAL.— Section 404(a) (relating to general rule) is amended by adding at the end the following: "(12) DEFINITION OF COMPENSATION.—For purposes of paragraphs (3), (7), (8), and (9), the term 'compensation' shall include amounts treated as 'participant's compensation' under subparagraph (C) or (D) of section 415(c)(3).". (2) CONFORMING AMENDMENTS. — (A) Subparagraph (B) of section 404(a)(3) is amended by striking the last sentence thereof. (B) Clause (i) of section 4972(c)(6)(B) is amended by striking "(within the meaning of section 404(a))" and inserting "(within the meaning of section 404(a) and as adjusted under section 404(a)( 12))". (c) EFFECTIVE DATE. —The amendments made by this section Applicability, shall apply to years beginning after December 31, 2001. 26 USC 404 note. SEC. 617. OPTION TO TREAT ELECTIVE DEFERRALS AS AFTER-TAX ROTH CONTRIBUTIONS. (a) IN GENERAL. — Subpart A of part I of subchapter D of chapter 1 (relating to deferred compensation, etc.) is amended by inserting after section 402 the following new section: "SEC. 402A. OPTIONAL TREATMENT OF ELECTIVE DEFERRALS AS ROTH CONTRIBUTIONS. "(a) GENERAL RULE.— If an applicable retirement plan includes a qualified Roth contribution program— "(1) any designated Roth contribution made by an employee pursuant to the program shall be treated as an elective deferral for purposes of this chapter, except that such contribution shall not be excludable from gross income, and "(2) such plan (and any arrangement which is part of such plan) shall not be treated as failing to meet any requirement of this chapter solely by reason of including such program. "(b) QUALIFIED ROTH CONTRIBUTION PROGRAM.—For purposes of this section— "(1) IN GENERAL. —The term 'qualified Roth contribution program' means a program under which an employee may elect to make designated Roth contributions in lieu of all or

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