Page:United States Statutes at Large Volume 115 Part 1.djvu/135

 PUBLIC LAW 107-16^JUNE 7, 2001 115 STAT. 113 "(B) AGGREGATION.—For purposes of subparagraph (A), all plans maintained by employers who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 plan. "(5) ELIGIBLE PARTICIPANT.—For purposes of this subsection, the term 'eligible participant' means, with respect to any plan year, a participant in a plan— "(A) who has attained the age of 50 before the close of the plan year, and "(B) with respect to whom no other elective deferrals may (without regard to this subsection) be made to the plan for the plan year by reason of the application of any limitation or other restriction described in paragraph (3) or comparable limitation or restriction contained in the terms of the plan. "(6) OTHER DEFINITIONS AND RULES.— For purposes of this subsection— "(A) APPLICABLE EMPLOYER PLAN.— The term 'applicable employer plan' means— "(i) an employees' trust described in section 401(a) which is exempt from tax under section 501(a), "(ii) a plan under which amounts are contributed by an individual's employer for an annuity contract described in section 403(b), "(iii) an eligible deferred compensation plan under section 457 of an eligible employer described in section 457(e)(1)(A), and "(iv) an arrangement meeting the requirements of section 408(k) or (p). "(B) ELECTIVE DEFERRAL.—The term 'elective deferral' has the meaning given such term by subsection (u)(2)(C). "(C) EXCEPTION FOR SECTION 457 PLANS.— This subsection shall not apply to an applicable employer plan described in subparagraph (A)(iii) for any year to which section 457(b)(3) applies. ". (b) EFFECTIVE DATE.—The amendment made by this section Eflfective date. shall apply to contributions in taxable years beginning after 26 USC 414 note. December 31, 2001. SEC. 632. EQUITABLE TREATMENT FOR CONTRIBUTIONS OF EMPLOYEES TO DEFINED CONTRIBUTION PLANS. (a) EQUITABLE TREATMENT. — (1) IN GENERAL. — Subparagraph (B) of section 415(c)(1) 26 USC 415. (relating to limitation for defined contribution plans) is amended by striking "25 percent" and inserting "100 percent". (2) APPLICATION TO SECTION 403(b). — Section 403(b) is amended— (A) by striking "the exclusion allowance for such taxable year" in paragraph (1) and inserting "the applicable limit under section 415", (B) by striking paragraph (2), and (C) by inserting "or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated" before the period at the end of the second sentence of paragraph (3). (3) CONFORMING AMENDMENTS. —

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