PUBLIC LAW 105-206-^ULY 22, 1998 112 STAT. 799 "(B) ORDERING RULES. —For purposes of applying this section and section 72 to any distribution from a Roth IRA, such distribution shall be treated as made— "(i) from contributions to the extent that the amount of such distribution, when added to all previous distributions from the Roth IRA, does not exceed the aggregate contributions to the Roth IRA; and "(ii) from such contributions in the following order: "(I) Contributions other than qualified rollover contributions to which paragraph (3) applies. "(II) Qualified rollover contributions to which paragraph (3) applies on a first-in, first-out basis. Any distribution allocated to a qualified rollover contribution under clause (ii)(II) shall be allocated first to the portion of such contribution required to be included in gross income.". (B) Section 408A(d)(l) of the 1986 Code is amended to read as follows: "(1) ExcLUSlON.Any qualified distribution from a Roth IRA shall not be includible in gross income.". (6)(A) Section 408A(d) of the 1986 Code (relating to distribution rules) is amended by adding at the end the following new paragraph: "(6) TAXPAYER MAY MAKE ADJUSTMENTS BEFORE DUE DATE. — "(A) IN GENERAL.— Except as provided by the Secretary, if, on or before the due date for any taxable year, a taxpayer transfers in a trustee-to-trustee transfer any contribution to an individual retirement plan made during such taxable year from such plan to any other individual retirement plan, then, for purposes of this chapter, such contribution shall be treated as having been made to the transferee plan (and not the transferor plan). "(B) SPECDy;. RULES. — "(i) TRANSFER OF EARNINGS. —Subparagraph (A) shall not apply to the transfer of any contribution unless such transfer is accompanied by any net income allocable to such contribution. " (ii) No DEDUCTION.—Subparagraph (A) shall apply to the transfer of any contribution only to the extent no deduction was allowed with respect to the contribution to the transferor plan.". (B) Section 408A(d)(3) of the 1986 Code, as amended by this subsection, is amended by striking subparagraph (D) and by redesignating subparagraphs (E), (F), and (G) as subparagraphs (D), (E), and (F), respectively. (7) Section 408A(d) of the 1986 Code, as amended by paragraph (6), is amended by adding at the end the following new paragraph: "(7) DUE DATE.— For purposes of this subsection, the due date for any taxable year is the date prescribed by law (including extensions of time) for filing the taxpayer's return for such taxable year.". (8)(A) Section 4973(f) of the 1986 Code is amended— (i) by striking "such accounts" in paragraph (1)(A) and inserting "Roth IRAs"; and
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