92 STAT. 2800
PUBLIC LAW 95-600—NOV. 6, 1978 "(2) EFFECT ON STOCK BONUS AND PROFIT-SHARING TRUST.—For
26 USC 401. 26 USC 415.
26 USC 408 note. 26 USC 415.
any taxable year for which the employer has a deduction under subparagraph (1), the otherwise applicable limitations in subsection (a)(3)(A) shall be reduced by the amount of the allowable deductions under subparagraph (1) with respect to participants in the stock bonus or profit-sharing trust. "(3) EFFECT ON LIMIT ON DEDUCTIONS.—For any taxable year for which the employer has a deduction under subparagraph (1), the otherwise applicable 25 percent limitations in subsection (a)(7) shall be reduced by the amount of the allowable deductions under subparagraph (1) with respect to participants in the stock bonus or profit-sharing trust. "(4) EFFECT ON SELF-EMPLOYED INDIVIDUALS.—The limitations described in paragraphs (1), (2)(A), and (4) of subsection (e) for any taxable year shall be reduced by the amount of the allowable deductions under subparagraph (1) with respect to an employee within the meaning of section 401(c)(1)." (g) AMENDMENTS TO SECTION 415.—Section 415 (relating to limitations on benefits and contributions under certain plans) is amended— (1) by redesignating subparagraphs (E) and (F) of subsection (a)(2) as subparagraphs (F) and (G) and by inserting after subparagraph (D) the following new subparagraph: "(E) a simplified employee pension,"; (2) by inserting "408(k)," after "408(b)," in the material immediately following subparagraph (G) of section 415(b)(2); (3) by inserting "any simplified employee pension," after "section 408(b)," in section 415(e)(5); and (4) by striking out "or" in section 415(k)(l)(F), by redesignating subparagraph (G) of section 415(k)(l) as subparagraph (H), and by inserting after section 415(k)(l)(F) the following new subparagraph: "(G) a simplified employee pension, or". (h) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1978. SEC. 153. DEFINED BENEFIT PLAN LIMITS. (a) IN GENERAL.—Subsection (b) of section 415 (relating to limitation for defined benefit plans) is amended by adding at the end thereof the following new paragraph: "(7)
BENEFITS
UNDER
CERTAIN
COLLECTIVELY
BARGAINED
PLANS.—For a year, the limitation referred to in paragraph (1)(B) shall not apply to benefits with respect to a participant under a defined benefit plan— "(A) which is maintained for such year pursuant to a collective bargaining agreement between employee representatives and one or more employers, "(B) which, at all times during such year, has at least 100 participants, "(C) benefits under which are determined by multiplying a specified amount (which is the same amount for each participant) by the number of the participant's years of service, "(D) which provides that an employee who has at least 4 years of service has a nonforfeitable right to 100 percent of his accrued benefit derived from employer contributions, and "(E) which requires, as a condition of participation in the plan, that an employee complete a period of not more than
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