Page:United States Statutes at Large Volume 116 Part 1.djvu/75

 PUBLIC LAW 107-147—MAR. 9, 2002 116 STAT. 49 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416" and inserting " se ction 401(a)(4), 401(k)(3), 401(k)(ll), 403(b)(12), 408(k), 410(b), or 416". (6) Section 414(v)(4)(B) is amended by inserting before 26 USC 414. the period at the end the following: ", except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)". (7) Section 414(v)(5) is amended— (A) by striking ", with respect to any plan year," in the matter preceding subparagraph (A), (B) by amending subparagraph (A) to read as follows: "(A) who would attain age 50 by the end of the taxable year,", and (C) in subparagraph (B) by striking "plan year" and inserting "plan (or other applicable) year". (8) Section 414(v)(6)(C) is amended to read as follows: "(C) EXCEPTION FOR SECTION 457 PLANS.—This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).". (9) Section 457(e) is amended by adding at the end the following new paragraph: "(18) COORDINATION WITH CATCH-UP CONTRIBUTIONS FOR INDIVIDUALS AGE 50 OR OLDER.— In the case of an individual who is an eligible participant (as defined by section 414(v)) and who is a participant in an eligible deferred compensation plan of an employer described in paragraph (1)(A), subsections (b)(3) and (c) shall be applied by substituting for the amount otherwise determined under the applicable subsection the greater of— "(A) the sum of— "(i) the plan ceiling established for purposes of subsection (b)(2) (without regard to subsection (b)(3)), plus "(ii) the applicable dollar amount for the taxable year determined under section 414(v)(2)(B)(i), or "(B) the amount determined under the applicable subsection (without regard to this paragraph).", (p) AMENDMENTS RELATING TO SECTION 632 OF THE ACT. — (1) Section 403(b)(1) is amended in the matter following subparagraph (E) by striking "then amounts contributed" and all that follows and inserting the following: "then contributions and other additions by such employer for such annuity contract shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such contributions and additions (when expressed as an annual addition (within the meaning of section 415(c)(2))) does not exceed the applicable limit under section 415. The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities). For purposes of applying the rules of this subsection to contributions and other additions by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph

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