Page:United States Statutes at Large Volume 94 Part 1.djvu/253

 PUBLIC LAW 96-222—APR. 1, 1980

94 STAT. 203

(F) COORDINATION WITH SECTION 401 (j).—Subsection (k) of 26 USC 40i. section 408 (defining simplified employee pension) is 26 USC 408. amended— (i) by striking out "and (5)" in paragraph (1) and inserting in lieu thereof "(5), and (6)", (ii) by redesignating paragraph (6) as paragraph (7), and (iii) by inserting after paragraph (5) the following new paragraph: "(6) EMPLOYER MAY NOT MAINTAIN PLAN TO WHICH SECTION

401 (j) APPLIES.—The requirements of this paragraph are met with respect to a simplified employee pension for a calendar year unless the employer maintains during any part of such year a plan— "(A) some or all of the active participants in which are employees (within the meaning of section 401(c)(l)) or shareholder-employees (as defined in section 1379(d)), and "(B) to which section 4010*) applies." (G) EMPLOYER MAY NOT MAINTAIN INTEGRATED PLAN.—

(i) The second sentence of section 408(k)(3)(D) (relating to treatment of certain contributions and taxes) is amended by striking out "Taxes paid" and inserting in lieu thereof "If the employer does not maintain an integrated plan at any time during the taxable year, taxes paid". (ii) Paragraph (3) of section 408(k) is amended by adding at the end thereof the following new subparagraph: "(E) INTEGRATED PLAN DEFINED.—For purposes of subparagraph (D), the term 'integrated plan' means a plan which meets the requirements of section 401(a), 403(a), or 405(a) but would not meet such requirements if contributions or benefits under chapter 2 (relating to tax on self-employment income), chapter 21 (relating to Federal Insurance Contribu- 26 USC i40i. tions Act), title H of the Social Security Act, or any other 26 USC 3ioi. Federal or State law were not taken into account." ^2 USC 40i. (H) PENALTY FOR FAILURE TO nLE REPORTS.—Subsection (a)

of section 6693 (relating to failure to provide reports on 26 USC 6693. individual retirement accounts or annuities) is amended— (i) by striking out "section 408(i)" the first place it appears and inserting in lieu thereof "subsection (i) or (1) or section 408", and (ii) by striking out "section 408(i)" the second place it appears and inserting in lieu thereof "such subsection". (I) APPLICATION WFFH SECTION 415.—Paragraph (5) of sec- 26 USC 4i5. tion 415(e) is amended— (i) by striking out "any simplified employee pension" in the first sentence, and (ii) by inserting after the first sentence the following new sentence: "For purposes of this section, any contribution by an employer to a simplified employee pension for an individual for a taxable year shall be treated as an employer contribution to a defined contribution plan for such individual for such year." (J) CLERICAL AMENDMENTS.—

(i) Subsection (j) of section 408 is amended by inserting 26 USC 408. "and" at the end of paragraph (1), by striking out", and

�