100 STAT. 2462
PUBLIC LAW 99-514—OCT. 22, 1986
"(b) LIABILITY FOR TAX.—The tax imposed by subsection (a) shall be paid by the employer. "(c) EXCESS CONTRIBUTIONS.—For purposes of this section, the term 'excess contributions' has the meaning given such term by sections 401(k)(8)(B), 403(b), 408(k)(8)(B), and 501(c)(18). "(d) EXCESS AGGREGATE CONTRIBUTION.—For purposes of this section, the term 'excess aggregate contribution' has the meaning given to such term by section 401(m)(6)(B). "(e) PLAN.—For purposes of this section, the term 'plan' means— "(1) a plan described in section 401(a) which includes a trust exempt from tax under section 501(a), ,: "(2) any annuity plan described in section 403(a), "(3) any annuity contract described in section 4030)),
"(4) a simplified employee pension of an employer which satisfies the requirements of section 408(k), and "(5) a plan described in section 501(c)(18). Such term includes any plan which, at any time, has been determined by the Secretary to be such a plan. "(f) No TAX WHERE EXCESS DISTRIBUTED WITHIN 2y2 MONTHS OF CLOSE OF YEAR.—
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"(1) IN GENERAL.—No tax shall be imposed under this section on any excess contribution or excess aggregate contribution, as the case may be, to the extent such contribution (together with any income allocable thereto) is distributed (or, if forfeitable, is forfeited) before the close of the first 2y2 months of the following plan year. "(2) INCLUDED IN PRIOR YEAR.—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." (2) CLERICAL AMENDMENT.—The table of sections for chapter 43 is amended by adding at the end thereof the following new item: "Sec. 4979. Tax on certain excess contributions."
(c) TECHNICAL AMENDMENT.—Paragraph (2) of section 414(k) (relating to certain plans) is amended by striking out "and 415 (relating to limitations on benefits and contributions under qualified plans)" and inserting in lieu thereof ", 415 (relating to limitations on benefits and contributions under qualified plans), and 401(m) (relating to nondiscrimination tests for matching requirements and employee contributions)". (d) EFFECTIVE DATE.— •>/-><. ^ i (1) IN GENERAL.—The amendments made by this section shall •^' apply to plan years beginning after December 31, 1986. ^^'^ (2) COLLECTIVE BARGAINING AGREEMENTS.—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 plan years beginning before the earlier of— (A) January 1, 1989, or 1. ' jl T (B) the date on which the last of such collective bargainj» ihi-^ ing agreements terminates (determined without regard to any extension thereof after February 28, 1986). i^ (3) ANNUITY CONTRACTS.—In the case of an annuity contract under section 403(b) of the Internal Revenue Code of 1986—
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