112 STAT. 800 PUBLIC LAW 105-206-JULY 22, 1998 (ii) by striking "to the accounts" in paragraph (2)(B) and inserting "by the individual to all individual retirement plans". (B) Section 4973(b) of the 1986 Code is amended— (i) by inserting "a contribution to a Roth IRA or" after "other than" in paragraph (1)(A); and (ii) by inserting "(including the amount contributed to a Roth IRA)" after "annuities" in paragraph (2)(C). 26 USC 4973. (C) Section 302(b) of the 1997 Act is amended by striking "Section 4973(b)" and inserting "Section 4973". (9) Section 408A of the 1986 Code is amended by adding at the end the following new subsection: "(f) INDIVIDUAL RETIREMENT PLAN.— For purposes of this section— "(1) a simplified employee pension or a simple retirement account may not be designated as a Roth IRA; and "(2) contributions to any such pension or account shall not be taken into account for purposes of subsection (c)(2)(B).". (c) AMENDMENTS RELATED TO SECTION 303 OF 1997 ACT. — (1) Section 72(t)(8)(E) of the 1986 Code is amended— (A) by striking "120 days" and inserting "120th day"; and (B) by striking "60 days" and inserting "60th day". (2)(A) Section 402(c)(4) of the 1986 Code is amended by striking "and" at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ", and", by inserting at the end the following new subparagraph: "(C) any hardship distribution described in section 401(k)(2)(B)(i)(IV).". (B) Section 403(b)(8)(B) of the 1986 Code is amended by inserting "(including paragraph (4)(C) thereof)" after "section 402(c)". Applicability. (C) The amendments made by this paragraph shall apply 26 USC 402 note. to distributions after December 31, 1998. (d) AMENDMENTS RELATED TO SECTION 311 OF 1997 ACT. — (1) Subsection (h) of section 1 of the 1986 Code (relating to maximum capital gains rate) is amended to read as follows: "(h) MAXIMUM CAPITAL GAINS RATE. — "(1) IN GENERAL.— If a taxpayer has a net capital gain for any taxable year, the tax imposed by this section for such taxable year shall not exceed the sum of— "(A) a tax computed at the rates and in the same manner as if this subsection had not been enacted on the greater of— "(i) taxable income reduced by the net capital gain; or "(ii) the lesser of— "(I) the amount of taxable income taxed at a rate below 28 percent; or "(II) taxable income reduced by the adjusted net capital gain; "(B) 10 percent of so much of the adjusted net capital gain (or, if less, taxable income) as does not exceed the excess (if any) of—
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