Page:United States Statutes at Large Volume 96 Part 1.djvu/550

 96 STAT. 508

PUBLIC LAW 97-248—SEPT. 3, 1982 "(1) N o DEDUCTION IN EXCESS OF SECTION 415 LIMITATION.—In

26 USC 415.

computing the a m o u n t of any deduction allowable under paragraph (1), (2), (3), (4), (7), or (10) of subsection (a) for any year— "(A) in the case of a defined benefit plan, the r e shall not be t a k e n into account any benefits for any year in excess of any limitation on such benefits under section 415 for such year, or "(B) in the case of a defined contribution plan, the a m o u n t of any contributions otherwise t a k e n into account shall be reduced by any annual additions in excess of the limitation under section 415 for such year. "(2) N o ADVANCE FUNDING OF COST-OF-LIVING ADJUSTMENTS.—

For purposes of clause (i), (ii) or (iii) of subsection (a)(1)(A), and in computing the full funding limitation, the r e shall not be t a k e n into account any adjustments under section 415(d)(1) for any year before the year for which such adjustment first t a k e s effect." 26 USC 415 note.

(g) EFFECTIVE D A T E S. — (1) IN GENERAL. —

(A) N E W PLANS.—In the case of any plan which is not in existence on July 1, 1982, the amendments made by this section shall apply to years ending after July 1, 1982. (B) EXISTING P L A N S. —

(i) In the case of any plan which is in existence on July 1, 1982, the amendments m a d e by this section shall apply to years beginning after December 31, 1982. (ii) P L A N REQUIREMENTS.—A p l a n shall not be t r e a t e d

as failing to meet the requirements of section 401(a)(16) of the I n t e r n a l Revenue Code of 1954 for any year beginning before January 1, 1984, merely because such plan provides for benefit or contribution limits which a r e in excess of the limitations under section 415 of such Code, a s amended by this section. The preceding sentence shall not apply to any plan which provides such limits in excess of the limitation under section 415 of such Code before such amendments. (2) AMENDMENTS RELATED TO COST-OF-LIVING ADJUSTMENTS.—

(A) IN GENERAL.—Except as provided in subparagraph (B), the amendments m a d e by subsection (b) shall apply to adjustments for years beginning after December 31, 1982. (B) ADJUSTMENT PROCEDURES.—The amendments m a d e by

subsections (b)(1) and (b)(2)(B) shall apply to adjustments for years beginning after December 31, 1985. (3) TRANSITION RULE WHERE THE SUM OF DEFINED CONTRIBUTION AND DEFINED BENEFIT PLAN FRACTIONS EXCEEDS 1.0.—In the

Ante, p. 506.

case of a plan which satisfied the requirements of section 415 of the I n t e r n a l Revenue Code of 1954 for the last year beginning before January 1, 1983, the Secretary of the Treasury or his delegate shall prescribe regulations under which a n a m o u n t is subtracted from the n u m e r a to r of the defined contribution plan fraction (not exceeding such n u m e r a to r) so that the s u m of the defined benefit plan fraction and the defined contribution plan fraction computed under section 415(e)(1) of the I n t e r n a l Revenue Code of 1954 (as amended by the T a x Equity and Fiscal Responsibility Act of 1982) does not exceed 1.0 for such year. (4) R I G H T TO HIGHER ACCRUED DEFINED BENEFIT PRESERVED.—

�