PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 831 provided in section 408(d)(3)(A)(i) (determined by substituting '120 days' for '60 days' in such section), except that— "(i) section 408(d)(3)(B) shall not be applied to such contribution, and "(ii) such amount shall not be taken into account in determining whether section 408(d)(3)(B) applies to any other amount.", (c) EFFECTIVE DATE.—The amendments made by this section 26 USC 72 note. shall apply to payments and distributions in taxable years beginning after December 31, 1997. SEC. 304. CERTAIN BULLION NOT TREATED AS COLLECTIBLES. (a) IN GENERAL.— Paragraph (3) of section 408(m) (relating to exception for certain coins) is amended to read as follows: "(3) EXCEPTION FOR CERTAIN COINS AND BULLION.— For purposes of this subsection, the term 'collectible' shall not include— " (A) any coin which is— "(i) a gold coin described in paragraph (7), (8), (9), or (10) of section 5112(a) of title 31, United States Code, "(ii) a silver coin described in section 5112(e) of title 31, United States Code, "(iii) a platinum coin described in section 5112(k) of title 31, United States Code, or "(iv) a coin issued under the laws of any State, or "(B) any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (as described in section 7 of the Commodity Exchange Act, 7 U.S.C. 7) requires for metals which may be delivered in satisfaction of a regulated fiitures contract, if such bullion is in the physical possession of a trustee described under subsection (a) of this section.". (b) EFFECTIVE DATE. —The amendment made by this section 26 USC 408 note. shall apply to taxable years beginning after December 31, 1997. Subtitle B—Capital Gains SEC 311. MAXIMUM CAPITAL GAINS RATES FOR INDIVIDUALS. (a) IN GENERAL. —Subsection (h) of section 1 (relating to maximum capital gains rate) is amended to read as follows: "(h) MAXIMUM CAPITAL GAINS RATE. — "(1) IN GENERAL.— I f 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, plus
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