115 STAT. 130 PUBLIC LAW 107-16-JUNE 7, 2001 becomes effective, whichever is later, within the last 2 years. "(iii) RULE FOR DETERMINING NUMBER OF PARTICI- PANTS. —For purposes of determining the number of plan participants, all defined benefit plans maintained by the same employer (or any member of such employer's controlled group (within the meaning of section 412(1)(8)(C))) shall be treated as one plan, but only employees of such member or employer shall be taken into account. "(iv) PLANS MAINTAINED BY PROFESSIONAL SERVICE EMPLOYERS.— In the case of a plan which, subject to section 4041 of the Employee Retirement Income Security Act of 1974, terminates during the plan year, clause (i) shall be applied by substituting for unfunded current liability the amount required to make the plan sufficient for benefit liabilities (within the meaning of section 4041(d) of such Act).". (b) CONFORMING AMENDMENT. — Paragraph (6) of section 26 USC 4972. 4972(c), as amended by sections 616 and 637, is amended— (1) by striking subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively, (2) by striking the first sentence following subparagraph (B) (as so redesignated), (3) by striking "subparagraph (B)" in the next to last sentence and inserting "subparagraph (A)", and (4) by striking "Subparagraph (C)" in the last sentence and inserting "Subparagraph (B)". Applicability. (c) EFFECTIVE DATE. —The amendments made by this section 26 USC 404 note, shall apply to plan years beginning after December 31, 2001. SEC. 653. EXCISE TAX RELIEF FOR SOUND PENSION FUNDING. (a) IN GENERAL.— Subsection (c) of section 4972 (relating to nondeductible contributions) is amended by adding at the end the following new paragraph: "(7) DEFINED BENEFIT PLAN EXCEPTION.—In determining the amount of nondeductible contributions for any taxable year, an employer may elect for such year not to take into account any contributions to a defined benefit plan except to the extent that such contributions exceed the full-funding limitation (as defined in section 412(c)(7), determined without regard to subparagraph (A)(i)(I) thereof). For purposes of this paragraph, the deductible limits under section 404(a)(7) shall first be applied to amounts contributed to defined contribution plans and then to amounts described in this paragraph. If an employer makes an election under this paragraph for a taxable year, paragraph (6) shall not apply to such employer for such taxable year.". (b) EFFECTIVE DATE.—The amendment made by this section shall apply to years beginning after December 31, 2001. Applicability. 26 USC 4972 note. SEC. 654. TREATMENT OF MULTIEMPLOYER PLANS UNDER SECTION 415. (a) COMPENSATION LIMIT. — (1) IN GENERAL. —Paragraph (11) of section 415(b) (relating to limitation for defined benefit plans) is amended to read as follows:
�
