Page:United States Statutes at Large Volume 115 Part 1.djvu/141

 PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 119 section 402(f) shall apply for purposes of subparagraph (A). "(C) REPORTING. —Rollovers under this paragraph shall be reported to the Secretary in the same manner as rollovers from qualified retirement plans (as defined in section 4974(c)).". (B) DEFERRAL LIMIT DETERMINED WITHOUT REGARD TO ROLLOVER AMOUNTS.— Section 457(b)(2) (defining eligible 26 USC 457. deferred compensation plan) is amended by inserting "(other than rollover amounts)" after "taxable year". (C) DIRECT ROLLOVER.— Paragraph (1) of section 457(d) is amended by striking "and" at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ", and", and by inserting after subparagraph (B) the following: "(C) in the case of a plan maintained by an employer described in subsection (e)(1)(A), the plan meets requirements similar to the requirements of section 401(a)(31). Any amount transferred in a direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of transfer.". (D) WITHHOLDING.— (i) Paragraph (12) of section 3401(a) is amended by adding at the end the following: "(E) under or to an eligible deferred compensation plan which, at the time of such payment, is a plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A), or". (ii) Paragraph (3) of section 3405(c) is amended to read as follows: "(3) ELIGIBLE ROLLOVER DISTRIBUTION. —For purposes of this subsection, the term 'eligible rollover distribution' has the meaning given such term by section 402(f)(2)(A).". (iii) LIABILITY FOR WITHHOLDING.— Subparagraph (B) of section 3405(d)(2) is amended by striking "or" at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ", or", and by adding at the end the following: "(iv) section 457(b) and which is maintained by an eligible employer described in section 457(e)(1)(A).". (2) ROLLOVERS TO SECTION 457 PLANS. — (A) IN GENERAL. — Section 402(c)(8)(B) (defining eligible retirement plan) is amended by striking "and" at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ", and", and by inserting after clause (iv) the following new clause: "(v) an eligible deferred compensation plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A).". (B) SEPARATE ACCOUNTING. —Section 402(c) is amended by adding at the end the following new paragraph: "(10) SEPARATE ACCOUNTING.— Unless a plan described in clause (v) of paragraph (8)(B) agrees to separately account for amounts rolled into such plan from eligible retirement plans not described in such clause, the plan described in such clause may not accept transfers or rollovers from such retirement plans.".

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