PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2457
"(i) shall include any employer contributions made pursuant to the employee's election under paragraph (2), and "(ii) under such rules as the Secretary may prescribe, may, at the election of the employer, include— "(I) matching contributions (as defined in 401(m)(4)(A)) which meets the requirements of paragraph (2)(B) and (C), and "(II) qualified nonelective contributions (within the meaning of section 401(m)(4)(C))." (f) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in this subsection, the amendments made by this section shall apply to years beginning after December 31, 1988. (2) NONDISCRIMINATION RULES.—
(A) IN GENERAL.—Except as provided in subparagraph (B), the amendments made by subsections (a), (b)(4), and (d), and the provisions of section 401(k)(4)(B) of the Internal Revenue Code of 1986 (as added by this section), shall apply to years beginning after December 31, 1986. (B) TRANSITION RULES FOR CERTAIN GOVERNMENTAL AND
TAX-EXEMPT PLANS.—Subparagraph (B) of section 401(k)(4) of the Internal Revenue Code of 1986 (relating to governments and tax-exempt organizations not eligible for cash or deferred arrangements), as added by this section, shall not apply to any cash or deferred arrangement adopted by— (i) a State or local government (or political subdivision thereof) before May 6, 1986, or (ii) a tax-exempt organization before July 2, 1986. In the case of an arrangement described in clause (i), the amendments made by subsections (a), (b)(4), and (d) shall apply to years beginning after December 31, 1988. (3) AGGREGATION AND EXCESS CONTRIBUTIONS.—The amend-
ments made by subsections (c) and (e) shall apply to years beginning after December 31, 1986. (4) COLLECTIVE BARGAINING AGREEMENTS.—
(A) IN GENERAL.—In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before March 1, 1986, the amendments made by this section shall not apply to years beginning before the earlier of— (i) the later o^ f— (I) January 1, 1989, or (II) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after February 28, 1986), or (ii) January 1, 1991.
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(B) SPECIAL RULE FOR NONDISCRIMINATION RULES.—In the
case of a plan described in subparagraph (A), the amendments and provisions described in paragraph (2) shall not apply to years beginning before the earlier of— (i) the date determined under subparagraph (A)(i)(II), or (ii) January 1, 1989. ,
(5) SPECIAL RULE FOR QUALIFIED OFFSET ARRANGEMENTS.—
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