Page:United States Statutes at Large Volume 88 Part 1.djvu/1028

 984

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

" (A) the numerator of which is the sum of the annual additions to the participant's account as of the close of the year, and " (B) the denominator of which is the sum of the maximum amount of annual additions to such account which could have been made under subsection (c) for such year and for each prior year of service with the employer. "(4)

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p. 925.

SPECIAL TRANSITION RULES FOR DEFINED CONTRIBUTION

FRACTION.—In applying paragraph (3) with respect to years beginning before January 1, 1976— " (A) the aggregate amount taken into account under paragraph (3)(A) may not exceed the aggregate amount taken into account under paragraph (3)(B), and " (B) the amount taken into account under subsection (c) (2)(B)(i) for any year concerned is an amount equal to— "(i) the excess of the aggregate amount of employee contributions for all years beginning before January 1, 1976, during which the employee was an active participant of the plan, over 10 percent of the employee's aggregate compensation for all such years, multiplied by "(ii) a fraction the numerator of which is 1 and the denominator of which is the number of years beginning before January 1, 1976, during which the employee was an active participant in the plan. Employee contributions made on or after October 2, 1973, shall be taken into account under subparagraph (B) of the preceding sentence only to the extent that the amount of such contributions does not exceed the maximum amount of contributions permissible under the plan as in effect on October 2, 1973. " (^) SPECIAL RULES FOR SECTIONS 403 (b) and 408.—For purposes of this subsection, any annuity contract described in section 403 (b) (except in the case of a participant who has elected under subsection (c)(4)(D) to have the provisions of subsection (c) (4)(C) apply), any individual retirement account described in section 408(a), any individual retirement annuity described in section 408(b), and any retirement bond described in section 409, for the benefit of a participant shall be treated as a defined contribution plan maintained by each employer with respect to which the participant has the control required under subsection (b) or (c) of section 414 (as modified by subsection (h)). I n the case of any annuity contract described in section 403(b), the amount of the contribution disqualified by reason of subsection (g) shall reduce the exclusion allowance as provided in section 403(b)(2). "(f)

COMBINING OF PLANS.—

" (1) IN GENERAL.—For purposes of applying the limitations of subsections (b), (c),and (e) — " (A) all defined benefit plans (whether or not terminated) of an employer are to be treated as one defined benefit plan, and " (B) all defined contribution plans (whether or not terminated) of an employer are to be treated as one defined contribution plan. "(2) A N N U A L COMPENSATION TAKEN INTO ACCOUNT FOR DEFINED BENEFIT PLANS.—If the employer has more th^n one defined benefit

plan— " (A) subsection (b)(1)(B) shall be applied separately with respect to each such plan, but

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