Page:United States Statutes at Large Volume 96 Part 1.djvu/569

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 527

"(A) is a money purchase pension plan with a noninteg r a t e d employer contribution r a t e of a t least 7 V-i percent, and "(B) provides for immediate participation and for full and immediate vesting. "(6) RELATED PERSONS.—For purposes of this subsection, the term 'related persons' has the s a m e m e a n i n g as when used in section 103(b)(6)(C)." (b) EFFECTIVE D A T E. — The amendment m a d e by subsection (a) 26 USC 414 note, shall apply to taxable year s beginning after December 31, 1983. SEC.

249.

NONDISCRIMINATORY COORDINATION TRIBUTION PLANS WITH OASDI.

OF

DEFINED

CON-

(a) IN GENERAL.—Section 401 (relating to qualified pension, profitsharing, stock bonus plans, etc.) is amended by redesignating subsection (1) as subsection (o), and by inserting after subsection (k) the following new subsection: "(1) NONDISCRIMINATORY COORDINATION OF D E F I N E D CONTRIBUTION P L A N S W I T H OASDI.—

"(1) IN GENERAL.—Notwithstanding subsection (a)(5), the coordination of a defined contribution plan with OASDI meets the requirements of subsection (a)(4) only if the total contributions with respect to each participant, when increased by the OASDI contributions, bear a uniform relationship— "(A) to the total compensation of such employee, or "(B) to the basic or regular r a t e of compensation of such employee. "(2) DEFINITIONS.—For purposes of paragraph (1)— "(A) OASDI CONTRIBUTIONS.—The term 'OASDI contributions' means the product of— "(i) so much of the r e m u n e r a t i o n paid by the employer to the employee during the plan year as— "(I) constitutes wages (within the m e a n i n g of section 3121(a) without regard to paragraph (1) thereoO, and "(II) does not exceed the contribution and benefit base applicable under OASDI at the beginning of the plan year, multiplied by "(ii) the r a t e of tax applicable under section 3111(a) (relating to employer's OASDI tax) at the beginning of the plan year. In the case of an individual who is an employee within the m e a n i n g of subsection (c)(1), the preceding sentence shall be applied by taking into account his earned income (as defined in subsection (c)(2)). "(B) OASDI.—The term 'OASDI' means the system of oldage, survivors, and disability insurance established under title II of the Social Security Act and the Federal Insurance Contributions Act. "(C) R E M U N E R A T I O N. — The term ' r e m u n e r a t i o n ' means— "(i) total compensation, or "(ii) basic or regular rate of compensation, whichever is used in determining contributions or benefits under the plan. "(8) DETERMINATION OF COMPENSATION, E T C, OF SELF-EMPLOYED

INDIVIDUALS.—For purposes of this subsection, in the case of a n

26 USC 401.

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