Page:United States Statutes at Large Volume 96 Part 1.djvu/571

 PUBLIC LAW 97-248-SEPT. 3, 1982

96 STAT. 529

(c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 269A apply to taxable years beginning after December 31, 1982. ^°^^PART IV—MISCELLANEOUS SEC. 251. CHURCH PLANS. (a) EXCLUSION ALLOWANCE.— (1) ELECTION TO HAVE SECTION 4 1 5 RULES APPLY.—Subpara-

graph (B) of section 403(b)(2) (relating to exclusion allowance) is amended by striking out "(under section 415)" and inserting in lieu thereof "(under section 415 without regard to section 415(c)(8))". (2) YEARS OF SERVICE.—Section 403(b)(2) is amended by adding at the end thereof the following new subparagraphs: "(C) NUMBER OF YEARS OF SERVICE FOR DULY ORDAINED, COMMISSIONED, OR LICENSED MINISTERS OR LAY EMPLOYEES.—

For purposes of this subsection and section 415(c)(4)(A)— "(i) all years of service by— "(I) a duly ordained, commissioned, or licensed minister of a church, or "(II) a lay person, as an employee of a church, a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), shall be considered as years of service for 1 employer, and "(ii) all amounts contributed for annuity contracts by each such church (or convention or association of churches) or such organization during such years for such minister or lay person shall be considered to have been contributed by 1 employer. For purposes of the preceding sentence, the terms 'church' and 'convention or association of churches' have the same meaning as when used in section 414(e). "(D) ALTERNATIVE EXCLUSION ALLOWANCE.—

"(i) IN GENERAL.—In the case of any individual described in subparagraph (C), the amount determined under subparagraph (A) shall not be less than the lesser of— "(I) $3,000, or "(II) the includible compensation of such individual, "(ii) SUBPARAGRAPH NOT TO APPLY TO INDIVIDUALS

WITH ADJUSTED GROSS INCOME ovElR $17,000.—This Subparagraph shall not apply with respect to any taxable year to any individual whose adjusted gross income for such taxable year (determined separately and without regard to any community property laws) exceeds $17,000. "(iii) SPECIAL RULE FOR FOREIGN MISSIONARIES.—In the case of an individual described in subparagraph (C)(i) performing services outside the United States, there shall be included as includible compensation for any year under clause (i)(II) any amount contributed during such year by a church (or convention or association of churches) for an annuity contract with respect to such individual."

26 USC 403.

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