PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3459
(10) Notwithstanding any other provision of law, a plgm may 26 USC 402 note. incorporate by reference the dollar limitations under section 402(g) of the Internal Revenue Code of 1986. (11) Section 402(g)(3) of the 1986 Code is amended by inserting Wages. ' at the end thereof the following new sentence: "An employer contribution shall not be treated as an elective deferral described in subparagraph (C) if under the salary reduction agreement such contribution is made pursuant to a one-time irrevocable election made by the employee at the time of initial eligibility to participate in the agreement or is made pursuant to a similar arrangement specified in regulations." (12) Subparagraph (A) of section 403(b)(12) of the 1986 Code is Wages. amended by inserting after clause (ii) the following new sentence: "For purposes of clause (i), a contribution shall be treated as not made pursuant to a salary reduction agreement if under the agreement it is made pursuant to a 1-time irrevocable election made by the employee at the time of initial eligibility to participate in the agreement or is made pursuant to a similar arrangement specified in regulations." (d) AMENDMENTS RELATED TO SECTION 1106 OF THE REFORM ACT.—
(1) Section 404(1) of the 1986 (Dode (relating to limitation on amount of compensation which may be taken into account) is amended by adding at the end thereof the following new sentence: "For purposes of clause (i), (ii), or (iii) of subsection (a)(l)(A), and in computing the full funding limitation, any adjustment under the preceding sentence shall not be taken into account for any year before the year for which such adjustment first takes effect.". (2) Section 415(b)(5)(D) of the 1986 Code (relating to application to changes in benefit structures) is amended by striking out "this paragraph" and inserting in lieu thereof "subparagraph (A)". (3) Paragraph (2) of section 415(k) of the 1986 Code (relating to contributions to provide cost-of-living protection under defined benefit plans), as added by section 1106(c) of the Reform Act, is amended— (A) by striking out "to the arrangement" in subparagraph (C)(ii) and inserting in lieu thereof "to such increase, and (B) by striking out subparagraph (D) and inserting in lieu thereof: "(D)
ARRANGEMENT ELECTIVE; TIME FOR ELECTION.—An
arrangement meets the requirements of this subparagraph only if it is elective, it is available under the same terms to €01 participants, and it provides that such election may at least be made in the year in which the participant— "(i) attains the earliest retirement age under the defined benefit plan (determined without regard to any requirement of separation from service), or (ii) separates from service." (4) Sections 401(a)(17) and 404a) of the 1986 Code are each amended by adding at the end thereof the following new sentence: "In determining the compensation of an employee, the rules of section 414(q)(6) shall apply, except that in applying such rules, the term 'family' shall include only the spouse of the employee and any lineal descendants of the employee who have not attained age 19 before the close of the year.
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