Page:United States Statutes at Large Volume 96 Part 1.djvu/572

 96 STAT. 530

PUBLIC LAW 97-248—SEPT. 3, 1982 (b) RETIREMENT INCOME ACCOUNTS PROVIDED BY C H U R C H E S, E T C. —

26 USC 403.

Section 403(b) is amended by adding a t the end thereof the following new paragraph: "(9) RETIREMENT INCOME ACCOUNTS PROVIDED BY CHURCHES, ETC.— "(A) A M O U N T S PAID TREATED AS CONTRIBUTIONS.—For pur-

poses of this title— "(i) a retirement income account shall be t r e a t e d as a n a n n u i t y contract described in t h i s subsection, and "(ii) a m o u n t s paid by a n employer described in paragraph (1)(A) to a retirement income account shall b e t r e a t e d as a m o u n t s contributed by the employer for a n a n n u i t y contract for the employee on whose behalf such account is m a i n t a i n e d. "(B) RETIREMENT INCOME ACCOUNT.—For purposes of t h i s

paragraph, the term ' retirement income account' means a defined contribution program established or m a i n t a i n e d by a church, a convention or association of churches, including a n organization described in section 414(e)(3)(A), to provide benefits under section 403(b) for a n employee described in paragraph (1) or his beneficiaries." (c) CONTRIBUTION L I M I T A T I O N S. — (1) APPLICATION O F SECTION 4 1 5 (C)(4)

26 USC 415.

TO CHURCH

PLANS.—

Paragraph (4) of section 415(c) (relating to special election for section 403(b) contracts) is amended— (A) by striking out " o r a h o m e health service agency" each place it a p p e a r s and inserting in lieu thereof " a h o m e health service agency, or a church, convention or association of churches, or a n organization described in section 414(e)(3)(B)(ii)", (B) by inserting "(as determined for purposes of section 403(b)(2))" after "service for the employer" in subparagraph (A), (C) by adding a t the end of subparagraph (D) the following new clause: "(iv) For purposes of this paragraph, the term s 'church' and 'convention or association of c h u r c h e s ' h a v e the s a m e m e a n i n g a s w h e n used in section 414(e).", and (D) by striking o u t " A N D HOME HEALTH SERVICE A G E N C I E S " in the heading and inserting in lieu the r e o f ", HOME HEALTH SERVICE AGENCIES, AND CERTAIN CHURCHES, E T C. ". (2) TOTAL A N N U A L ADDITIONS.—Section 415(c) ( r e l a t i n g to limi-

tation on defined contribution plan) is amended by adding a t the end thereof the following paragraph: "(8) CERTAIN CONTRIBUTIONS BY CHURCH PLANS NOT TREATED AS EXCEEDING LIMITS.— "(A) ALTERNATIVE EXCLUSION ALLOWANCE.—Any c o n t r i b u -

Ante, p. 529.

tion or addition with respect to any participant, w h e n expressed as a n annual addition, which is allocable to the application of section 403(b)(2)(D) to such part i c i p a n t for such year, shall be t r e a t e d as not exceeding the limitations of paragraph (1). "(B) CONTRIBUTIONS NOT IN EXCESS OF $40,OOO ($IO,OOO PER YEAR).—

"(i) IN GENERAL.—Notwithstanding any other provision of this subsection, a t the election of a part i c i p a n t

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