Page:United States Statutes at Large Volume 95.djvu/309

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 283

(1) IN GENERAL.—Except as provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 1981. (2) TRANSITIONAL RULE.—For purposes of the Internal Revenue Code of 1954, any amount allowed as a deduction under section 220 of such Code (as in effect before its repeal by this Act) shall be treated as if it were allowed by section 219 of such Code. Ante, p. 274. (3) CERTAIN BOND ROLLOVER PROVISIONS.—The amendment

made by subsection (g)(3) shall apply to taxable years beginning after December 31, 1974. (4) SECTION 4 1 5 AMENDMENTS.—The amendments made by subsections (g)(4) and (h)(3) shall apply to years after December 31, 1981. SEC. 312. INCREASE IN AMOUNT OF SELF-EMPLOYED RETIREMENT PLAN DEDUCTION. (a) IN GENERAL.—Subsection (e) of section 404 (relating to special 26 USC 404. limitations for self-employed individuals) is amended by striking out "$7,500" in paragraphs (1) and (2) and inserting in lieu thereof "$15,000". (b) MAXIMUM AMOUNT OF COMPENSATION TAKEN INTO ACCOUNT.—

(1) IN GENERAL.—Paragraph (17) of section 401(a) (relating to 26 USC 40i. maximum amount of compensation which may be taken into account) is amended by striking out all after "only" and inserting in lieu thereof "if— "(A) the annual compensation of each employee taken into account under the plan does not exceed the first $200,000 of compensation, and "(B) in the case of— "(i) a defined contribution plan with respect to which compensation in excess of $100,000 is taken into account, contributions on behalf of each employee (other than an employee within the meaning of section 401(c)(l)) to the plan or plans are at a rate (expressed as a percentage of compensation) not less than 7.5 percent, or "(ii) a defined benefit plan with respect to which compensation in excess of $100,000 is taken into account, the annual benefit accrual for each employee (other than an employee within the meaning of section 401(c)(l)) is a percentage of compensation which is not less than one-half of the applicable percentage provided by subsection (j)(3)." Post, p. 284. (2) SIMPLIFIED EMPLOYEE PENSIONS.—Subparagraph (C) of section 408(k)(3) (relating to uniform relationships of contributions) 26 USC 408. is amended to read as follows: "(C) CONTRIBUTIONS MUST BEAR A UNIFORM RELATIONSHIP

TO TOTAL COMPENSATION.—For purposes of subparagraph (A),

employer contributions to simplified employee pensions shall be considered discriminatory unless— "(i) contributions thereto bear a uniform relationship to the total compensation (not in excess of the first $200,000) of each employee maintaining a simplified employee pension, and account under a simplified employee pension for an employee, contributions to a simplified employee pension on behalf of each employee for whom a contribution
 * (ii) if compensation in excess of $100,000 is taken into

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