Page:United States Statutes at Large Volume 115 Part 1.djvu/136

 115 STAT. 114 PUBLIC LAW 107-16-JUNE 7, 2001 26 USC 72. (A) Subsection (f) of section 72 is amended by striking "section 403(b)(2)(D)(iii))" and inserting "section 403(b)(2)(D)(iii), as in effect before the enactment of the Economic Growth and Tax Rehef Reconciliation Act of 2001". (B) Section 404(a)(10)(B) is amended by striking ", the exclusion allowance under section 403(b)(2),"- (C) Section 415(a)(2) is amended by striking ", and the amount of the contribution for such portion shall reduce the exclusion allowance as provided in section 403(b)(2)". (D) Section 415(c)(3) is amended by adding at the end the following new subparagraph: "(E) ANNUITY CONTRACTS. — In the case of an annuity contract described in section 403(b), the term 'participant's compensation' means the participant's includible compensation determined under section 403(b)(3).". (E) Section 415(c) is amended by striking paragraph (4). (F) Section 415(c)(7) is amended to read as follows: "(7) CERTAIN CONTRIBUTIONS BY CHURCH PLANS NOT TREATED AS EXCEEDING LIMIT.— "(A) IN GENERAL.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. "(B) $40,000 AGGREGATE LIMITATION.— The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. "(C) ANNUAL ADDITION.—For purposes of this paragraph, the term 'annual addition' has the meaning given such term by paragraph (2).". (G) Subparagraph (B) of section 402(g)(7) (as redesignated by section 611(c)(3)) is amended by inserting before the period at the end the following: "(as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001". (H) Section 664(g) is amended— (i) in paragraph (3)(E) by striking "limitations under section 415(c)" and inserting "applicable limitation under paragraph (7)", and (ii) by adding at the end the following new paragraph: " (7) APPLICABLE LIMITATION. — "(A) IN GENERAL.— For purposes of paragraph (3)(E), the applicable limitation under this paragraph with respect to a participant is an amount equal to the lesser of— "(i) $30,000, or "(ii) 25 percent of the participant's compensation (as defined in section 415(c)(3)).

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