Page:United States Statutes at Large Volume 120.djvu/1034

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 1003

deferred arrangement (as defined in section 401(k)) of an employer described in clause (iii) under which the employer matched at least 50 percent of the employee’s contributions to such arrangement with stock of such employer. ‘‘(iii) EMPLOYER DESCRIBED.—An employer is described in this clause if, in any taxable year preceding the taxable year described in clause (ii)— ‘‘(I) such employer (or any controlling corporation of such employer) was a debtor in a case under title 11 of the United States Code, or similar Federal or State law, and ‘‘(II) such employer (or any other person) was subject to an indictment or conviction resulting from business transactions related to such case. ‘‘(iv) QUALIFIED PARTICIPANT.—For purposes of clause (ii), the term ‘qualified participant’ means any applicable individual who was a participant in the cash or deferred arrangement described in such clause on the date that is 6 months before the filing of the case described in clause (iii). ‘‘(v) TERMINATION.—This subparagraph shall not apply to taxable years beginning after December 31, 2009.’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2006.

26 USC 219 note.

SEC. 832. DETERMINATION OF AVERAGE COMPENSATION FOR SECTION 415 LIMITS.

(a) IN GENERAL.—Section 415(b)(3) of the Internal Revenue Code of 1986 is amended by striking ‘‘both was an active participant in the plan and’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to years beginning after December 31, 2005.

26 USC 415. 26 USC 415 note.

SEC. 833. INFLATION INDEXING OF GROSS INCOME LIMITATIONS ON CERTAIN RETIREMENT SAVINGS INCENTIVES.

(a) SAVER’S CREDIT.—Subsection (b) of section 25B of the Internal Revenue Code of 1986 is amended to read as follows: ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of this section— ‘‘(1) JOINT RETURNS.—In the case of a joint return, the applicable percentage is— ‘‘(A) if the adjusted gross income of the taxpayer is not over $30,000, 50 percent, ‘‘(B) if the adjusted gross income of the taxpayer is over $30,000 but not over $32,500, 20 percent, ‘‘(C) if the adjusted gross income of the taxpayer is over $32,500 but not over $50,000, 10 percent, and ‘‘(D) if the adjusted gross income of the taxpayer is over $50,000, zero percent. ‘‘(2) OTHER RETURNS.—In the case of— ‘‘(A) a head of household, the applicable percentage shall be determined under paragraph (1) except that such paragraph shall be applied by substituting for each dollar amount therein (as adjusted under paragraph (3)) a dollar amount equal to 75 percent of such dollar amount, and

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