Page:United States Statutes at Large Volume 115 Part 1.djvu/140

 115 STAT. 118 PUBLIC LAW 107-16^JUNE 7, 2001 SEC. 637. WAIVER OF TAX ON NONDEDUCTIBLE CONTRIBUTIONS FOR DOMESTIC OR SIMILAR WORKERS. 26 USC 4972. (a) IN GENERAL.—Section 4972(c)(6) (relating to exceptions to nondeductible contributions), as amended by section 616, is amended by striking "and" at the end of subparagraph (A), by striking the period and inserting ", or" at the end of subparagraph (B), and by inserting after subparagraph (B) the following new subparagraph: "(C) so much of the contributions to a simple retirement account (within the meaning of section 408(p)) or a simple plan (within the meaning of section 401(k)(ll)) which are not deductible when contributed solely because such contributions are not made in connection with a trade or business of the employer.". (b) EXCLUSION OF CERTAIN CONTRIBUTIONS.— Section 4972(c)(6), as amended by subsection (a), is amended by adding at the end the following new sentence: "Subparagraph (C) shall not apply to contributions made on behalf of the employer or a member of the employer's family (as defined in section 447(e)(1)).". 26 USC 4972 (c) No INFERENCE.— Nothing in the amendments made by this ^^^^- section shall be construed to infer the proper treatment of nondeductible contributions under the laws in effect before such amendments. Applicability. (d) EFFECTIVE DATE. —The amendments made by this section 26 USC 4972 shall apply to taxable years beginning after December 31, 2001. note. Subtitle D—Increasing Portability for Participants SEC. 641. ROLLOVERS ALLOWED AMONG VARIOUS TYPES OF PLANS. (a) ROLLOVERS FROM AND TO SECTION 457 PLANS. — (1) ROLLOVERS FROM SECTION 457 PLANS. — (A) IN GENERAL. —Section 457(e) (relating to other definitions and special rules) is amended by adding at the end the following: "(16) ROLLOVER AMOUNTS. — "(A) GENERAL RULE. — In the case of an eligible deferred compensation plan established and maintained by an employer described in subsection (e)(1)(A), if— "(i) any portion of the balance to the credit of an employee in such plan is paid to such employee in an eligible rollover distribution (within the meaning of section 402(c)(4)), "(ii) the employee transfers any portion of the property such employee receives in such distribution to an eligible retirement plan described in section 402(c)(8)(B), and "(iii) in the case of a distribution of property other than money, the amount so transferred consists of the property distributed, then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid. "(B) CERTAIN RULES MADE APPLICABLE. —The rules of paragraphs (2) through (7) and (9) of section 402(c) and

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