PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 115 "(B) COST-OF-LIVING ADJUSTMENT. —The Secretary shall adjust annually the $30,000 amount under subparagraph (A)(i) at the same time and in the same manner as under section 415(d), except that the base period shall be the calendar quarter beginning October 1, 1993, and any increase under this subparagraph which is not a multiple of $5,000 shall be rounded to the next lowest multiple of $5,000. ". (4) EFFECTIVE DATE.— The amendments made by this subsection shall apply to years beginning after December 31, 2001. (b) SPECIAL RULES FOR SECTIONS 403(b) AND 408.— (1) IN GENERAL. —Subsection (k) of section 415 is amended by adding at the end the following new paragraph: "(4) SPECIAL RULES FOR SECTIONS 403(b) AND 408. —For purposes of this section, any annuity contract described in section 403(b) for the benefit of a participant shall be treated as a defined contribution plan maintained by each employer with respect to which the participant has the control required under subsection (b) or (c) of section 414 (as modified by subsection (h)). For purposes of this section, any contribution by an employer to a simplified employee pension plan for an individual for a taxable year shall be treated as an employer contribution to a defined contribution plan for such individual for such year.". (2) EFFECTIVE DATE. — (A) IN GENERAL.— The amendment made by paragraph (1) shall apply to limitation years beginning after December 31, 1999. (B) EXCLUSION ALLOWANCE. — Effective for limitation years beginning in 2000, in the case of any annuity contract described in section 403(b) of the Internal Revenue Code of 1986, the amount of the contribution disqualified by reason of section 415(g) of such Code shall reduce the exclusion allowance as provided in section 403(b)(2) of such Code. (3) ELECTION TO MODIFY SECTION 403(b) EXCLUSION ALLOW- ANCE TO CONFORM TO SECTION 415 MODIFICATION. —In the case of taxable years beginning after December 31, 1999, and before January 1, 2002, a plan may disregard the requirement in the regulations regarding the exclusion allowance under section 403(b)(2) of the Internal Revenue Code of 1986 that contributions to a defined benefit pension plan be treated as previously excluded amounts for purposes of the exclusion allowance. (c) DEFERRED COMPENSATION PLANS OF STATE AND LOCAL GOVERNMENTS AND TAX-EXEMPT ORGANIZATIONS.— (1) IN GENERAL.— Subparagraph (B) of section 457(b)(2) (relating to salary limitation on eligible deferred compensation plans) is amended by striking "33 Vb percent" and inserting "100 percent". (2) EFFECTIVE DATE.— The amendment made by this subsection shall apply to years beginning after December 31, 2001. SEC. 633. FASTER VESTING OF CERTAIN EMPLOYER MATCHING CON- TRIB'UTIONS. (a) IN GENERAL. —Section 411(a) (relating to minimum vesting standards) is amended— Applicability. 26 USC 72 note. 26 USC 415. 26 USC 415 note. Applicability. 26 USC 403 note. Applicability. 26 USC 457 note.
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