Page:United States Statutes at Large Volume 115 Part 1.djvu/144

 115 STAT. 122 PUBLIC LAW 107-16—JUNE 7, 2001 26 USC 403. (1) Paragraph (1) of section 403(b) is amended by striking " se ction 408(d)(3)(A)(iii)" and inserting "section 408(d)(3)(A)(ii)". (2) Clause (i) of section 408(d)(3)(D) is amended by striking "(i), (ii), or (iii)" and inserting "(i) or (ii)". (3) Subparagraph (G) of section 408(d)(3) is amended to read as follows: "(G) SIMPLE RETIREMENT ACCOUNTS.— In the case of any payment or distribution out of a simple retirement account (as defined in subsection (p)) to which section 72(t)(6) applies, this paragraph shall not apply unless such payment or distribution is paid into another simple retirement account.". 26 USC 408 note. (c) EFFECTIVE DATE; SPECIAL RULE. — Applicability. (1) EFFECTIVE DATE.— The amendments made by this section shall apply to distributions after December 31, 2001. (2) SPECIAL RULE. —Notwithstanding any other provision of law, subsections (h)(3) and (h)(5) of section 1122 of the Tax Reform Act of 1986 shall not apply to any distribution from an eligible retirement plan (as defined in clause (iii) or (iv) of section 402(c)(8)(B) of the Internal Revenue Code of 1986) on behalf of an individual if there was a rollover to such plan on behalf of such individual which is permitted solely by reason of the amendments made by this section. SEC. 643. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS. (a) ROLLOVERS FROM EXEMPT TRUSTS. —Paragraph (2) of section 402(c) (relating to maximum amount which may be rolled over) is amended by adding at the end the following: "The preceding sentence shall not apply to such distribution to the extent— "(A) such portion is transferred in a direct trusteeto-trustee transfer to a qualified trust which is part of a plan which is a defined contribution plan and which agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible, or "(B) such portion is transferred to an eligible retirement plan described in clause (i) or (ii) of paragraph (8)(B). ". (b) OPTIONAL DIRECT TRANSFER OF ELIGIBLE ROLLOVER DIS- TRlBUTlONS.^^ubparagraph (B) of section 401(a)(31) (relating to limitation) is amended by adding at the end the following: "The preceding sentence shall not apply to such distribution if the plan to which such distribution is trsmsferred— "(i) agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible, or "(ii) is an eligible retirement plan described in clause (i) or (ii) of section 402(c)(8)(B).". (c) RULES FOR APPLYING SECTION 72 TO IRAS.— Paragraph (3) of section 408(d) (relating to special rules for applying section 72) is amended by inserting at the end the following: " (H) APPLICATION OF SECTION 72.— "(i) IN GENERAL. —If—

�