Page:United States Statutes at Large Volume 98 Part 1.djvu/920

 98 STAT. 872 26 USC 72.

26 USC 72 note.

PUBLIC LAW 98-369—JULY 18, 1984 (1) Subparagraph (D) of section 72(e)(5) (relating to contracts under qualified plans) is amended by striking out "This" and inserting in lieu thereof "Except as provided in paragraph (7), this". (2) Paragraph (3) of section 72(p) (defining qualified employer plan) is amended by inserting "other than a plan described in subsection (e)(7)" after "section 219(e)(3)". (c) EFFECTIVE DATE.—The amendments made by this section shall apply to any amount received or loan made after the 90th day after the date of the enactment of this Act. SEC. 524. PROVISIONS RELATING TO TOP-HEAVY PLANS. (a) DEFINITION OF KEY EMPLOYEE.—

26 USC 416.

26 USC 416 note.

(1) IN GENERAL.—Clause (i) of section 416(i)(l)(A) (defining key employee) is amended by inserting "having an annual compensation greater than 150 percent of the amount in effect under section 415(c)(1)(A) for any such plan year" after "employer". (2) EFFECTIVE DATE.—The amendment made by this subsection shall apply to plan years beginning after December 31, 1983. (b) ACCRUED BENEFIT OF INDIVIDUAL NOT EMPLOYED WITHIN LAST 5 YEARS DISREGARDED.—

26 USC 416.

(1) IN GENERAL.—Paragraph (4) of section 416(g) (relating to other special rules) is amended by adding at the end thereof the following new subparagraph: "(E) BENEFITS NOT TAKEN INTO ACCOUNT IF EMPLOYEE NOT EMPLOYED FOR LAST 5 YEARS.—If any individual has not

26 USC 416 note.

received any compensation from any employer maintaining the plan (other than benefits under the plan) at any time during the 5-year period ending on the determination date, any accrued benefit for such individual (and the account of such individual) shall not be taken into account." (2) EFFECTIVE DATE.—The amendment made by this subsection shall apply to plan years beginning after December 31, 1984. (c) SALARY REDUCTION ARRANGEMENTS MAY B E TAKEN INTO ACCOUNT.—

26 USC 416. 26 USC 416 note.

(1) IN GENERAL.—Paragraph (2) of section 416(c) (relating to minimum benefits for defined contribution plans) is amended by striking out subparagraph (C). (2) EFFECTIVE DATE.—The amendment made by this subsection shall apply to plan years beginning after December 31, 1984. (d) CERTAIN GOVERNMENTAL PLANS EXEMPT FROM TOP-HEAVY PLAN RULES.—

26 USC 401.

26 USC 401 note. 26 USC 401 note.

(1) IN GENERAL.—Paragraph (10)(B) of section 401(a) (relating to plan requirements regarding top-heavy plans) is amended by adding at the end thereof the following new clause: "(iii) EXEMPTION FOR GOVERNMENTAL PLANS.— This subparagraph shall not apply to any governmental plan." (2) EFFECTIVE DATE.—The amendment made Vy this subsection shall apply to plan years beginning after December 31, 1983. (e) QUALIFICATION REQUIREMENTS MODIFIED IF REGULATIONS NOT ISSUED.—

(1) IN GENERAL.—If the Secretary of the Treasury or his delegate does not publish final regulations under section 416 of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of this Act) before January 1, 1985, the Secretary shall publish before such date plan amendment

�