Page:United States Statutes at Large Volume 115 Part 1.djvu/134

 115 STAT. 112 PUBLIC LAW 107-16-JUNE 7, 2001 408(p), the applicable dollar amount shall be determined in accordance with the following table: "For taxable years The applicable beginning in: dollar amount is: 2002 $1,000 2003 $2,000 2004 $3,000 2005 $4,000 2006 and thereafter $5,000. "(ii) In the case of an applicable employer plan described in section 401(k)(ll) or 408(p), the applicable dollar amount shall be determined in accordance with the following table: "For taxable years The applicable beginning in: dollar amount is: 2002 $500 2003 $1,000 2004 $1,500 2005 $2,000 2006 and thereafter $2,500. "(C) COST-OF-LIVING ADJUSTMENT.— In the case of a year beginning after December 31, 2006, the Secretary shall adjust annually the $5,000 amount in subparagraph (B)(i) and the $2,500 amount in subparagraph (B)(ii) for increases in the cost-of-living at the same time and in the same manner as adjustments under section 415(d); except that the base period taken into account shall be the calendar quarter beginning July 1, 2005, and any increase under this subparagraph which is not a multiple of $500 shall be rounded to the next lower multiple of $500. ". "(3) TREATMENT OF CONTRIBUTIONS. —In the case of any contribution to a plan under paragraph (1)— "(A) such contribution shall not, with respect to the year in which the contribution is made— "(i) be subject to any otherwise applicable limitation contained in section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457, or "(ii) be taken into account in applying such limitations to other contributions or benefits under such plan or any other such plan, and "(B) except as provided in paragraph (4), such plan shall not be treated as failing to meet the requirements of section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(ll), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416 by reason of the making of (or the right to make) such contribution. " (4) APPLICATION OF NONDISCRIMINATION RULES.— " (A) IN GENERAL.—An applicable employer plan shall be treated as failing to meet the nondiscrimination requirements under section 401(a)(4) with respect to benefits, rights, and features unless the plan allows all eligible participants to make the same election with respect to the additional elective deferrals under this subsection.

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