Page:United States Statutes at Large Volume 115 Part 1.djvu/150

 115 STAT. 128 PUBLIC LAW 107-16-JUNE 7, 2001 (b) ELIGIBLE DEFERRED COMPENSATION PLANS.— Clause (i) of 26 USC 457. section 457(e)(9)(A) is amended by striking "such amount" and inserting "the portion of such amount which is not attributable to rollover contributions (as defined in section 411(a)(ll)(D))". Applicability. (c) EFFECTIVE DATE. —The amendments made by this section 26 USC 411 note, shall apply to distributions after December 31, 2001. SEC. 649. MINIMUM DISTRIBUTION AND INCLUSION REQUIREMENTS FOR SECTION 457 PLANS. (a) MINIMUM DISTRIBUTION REQUIREMENTS. —Paragraph (2) of section 457(d) (relating to distribution requirements) is amended to read as follows: "(2) MINIMUM DISTRIBUTION REQUIREMENTS. —^A plan meets the minimum distribution requirements of this paragraph if such plan meets the requirements of section 401(a)(9).". (b) INCLUSION IN GROSS INCOME. — (1) YEAR OF INCLUSION.— Subsection (a) of section 457 (relating to year of inclusion in gross income) is amended to read as follows: "(a) YEAR OF INCLUSION IN GROSS INCOME. — "(1) IN GENERAL.— Any amount of compensation deferred under an eligible deferred compensation plan, and any income attributable to the amounts so deferred, shall be includible in gross income only for the taxable year in which such compensation or other income— "(A) is paid to the participant or other beneficiary, in the case of a plan of an eligible employer described in subsection (e)(1)(A), and "(B) is paid or otherwise made available to the participant or other beneficiary, in the case of a plan of an eligible employer described in subsection (e)(1)(B). "(2) SPECIAL RULE FOR ROLLOVER AMOUNTS. —To the extent provided in section 72(t)(9), section 72(t) shall apply to any amount includible in gross income under this subsection.". (2) CONFORMING AMENDMENTS.— (A) So much of paragraph (9) of section 457(e) as precedes subparagraph (A) is amended to read as follows: " (9) BENEFITS OF TAX EXEMPT ORGANIZATION PLANS NOT TREATED AS MADE AVAILABLE BY REASON OF CERTAIN ELECTIONS, ETC.— In the case of an eligible deferred compensation plan of an employer described in subsection (e)(1)(B)—". (B) Section 457(d) is amended by adding at the end the following new paragraph: " (3) SPECIAL RULE FOR GOVERNMENT PLAN. —An eligible deferred compensation plan of an employer described in subsection (e)(1)(A) shall not be treated as failing to meet the requirements of this subsection solely by reason of making a distribution described in subsection (e)(9)(A).". Applicability. (c) EFFECTIVE DATE. —The amendments made by subsections 26 USC 457 note, (a) and (b) shall apply to distributions after December 31, 2001.

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