PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3471
following new sentence: "For purposes of determining excess Contracts. aggr^ate contributions under an annuity contract described in section 403Q)), such contract shall be treated as a plan described in subsection (e)(D." (11) Paragraph (2) of section 4979(f) of the 1986 Code (relating to inclusion in prior year) is amended to read as follows: "(2) YEAR OF INCLUSION.—
"(A) IN GENERAL.—Except as provided in subparagraph (B), any amount distributed as provided in paragraph (1) shall be treated as received and earned by the recipient in his taxable year for which such contribution was made. "(B) D E MINIMIS DISTRIBUTIONS.—If the total excess contributions and excess aggregate contributions distributed to a recipient under a plan for any plan year are less than $100, such distributions (and any income allocable thereto) shall be treated as earned and received by the recipient in his taxable year in which such distributions were made." (12) Subsection (d) of section 1117 of the Reform Act 26 USC 401 note. is amended by adding at the end thereof the following new paragraph: "(4) DISTRIBUTIONS BEFORE PLAN AMENDMENT.—
"(A) IN GENERAL.—If a plan amendment is required to allow a plan to make any distribution described in section 401(m)(6) of the Internal Revenue Code of 1986, any such distribution which is made before the close of the 1st plan year for which such amendment is required to be in effect under section 1140 shall be treated as made in accordance with the provisions of the plan. "(B) DISTRIBUTIONS PURSUANT TO MODEL AMENDMENT.— "(i) SECRETARY TO PRESCRIBE AMENDMENT.—The Sec-
retary of the Treasury or his del^ate shall prescribe an amendment which allows a plan to make any distribution described in section 401(m)(6) of the Internal Revenue Code of 1986. "(ii) ADOPTION BY PLAN.—If a plan adopts the amendment prescribed under clause (i) and makes a distribution in accordance with such amendment, such distribution shall be treated as made in accordance with the provisions of the plan." (m) AMENDMENTS RELATED TO SECTION 1120 OF THE REFORM ACT.—
(I)(A) Section 403a)X10) of the 1986 Code (relating to nondiscrimination requirements), as added by section 1120(b) of the Reform Act, is redesignated as paragraph (12). (B) Subparagraph (D) of section 403(b)(l) of the 1986 Code is amended by striking out "paragraph (10)" and inserting in lieu thereof "paragraph (12)". (2) (Dlause (i) of section 403(b)(12XA), as redesignated by paragraph (1), is amended— (A) by inserting "(17)," after "(5),", and (B) by inserting ", section 401(m)," after "section 401(a)" the first place it appears. (3) Section 112(Xc) of the Reform Act is amended to read as follows: "(c) EFFECTIVE DATES.—
"(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to years beginning after December 31, 1988.
26 USC 403 note.
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