PUBLIC LAW 98-369—JULY 18, 1984
98 STAT. 959
(A) Subparagraph (A) of section 416(i)(l) (defining key 26 USC 416. employee) is amended by striking out "any participant in an employer plan" and inserting in lieu thereof "an employee". "fj.:)3y.>g (B) Clause (ii) of section 416(i)(l)(A) is amended to read as follows: "(ii) 1 of the 10 employees having annual compensation from the employer of more than the limitation in effect under section 415(c)(1)(A) and owning (or considered as owning within the meaning of section 318) the largest interests in the employer,". (C) Subparagraph (A) of section 416(i)(l) (defining key . K ^ ' r ^ U -£ employee) is amended by adding at the end thereof the following new sentence: "For purposes of clause (ii), if 2 employees have the same interest in the employer, the employee having greater annual compensation from the employer shall be treated as having a larger interest." (D) Subparagraph (C) of section 416(i)(l) is amended by B0| CKSU:S striking out "DETERMINING 5-PERCENT OR I-PERCENT OWNERS" in the subparagraph heading and inserting in lieu thereof "DETERMINING OWNERSHIP IN THE EMPLOYER".
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(2) TREATMENT OF SIMPLIFIED EMPLOYEE PENSIONS.—Paragraph
(1) of section 408(k) (defining simplified employee pension) is amended to read as follows: "(1) IN GENERAL.—For purposes of this title, the term 'simplified employee pension' means an individual retirement account or individual retirement annuity— "(A) with respect to which the requirements of paragraphs (2), (3), (4), and (5) of this subsection are met, and "(B) if such account or annuity is part of a top-heavy plan (as defined in section 416), with respect to which the requirements of section 416(c)(2) are met."
26 USC 408.
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(3) CLARIFICATION OF TRANSITIONAL RULE.—Paragraph (3) of
section 235(g) of the Tax Equity and Fiscal Responsibility Act of 1982 is amended by adding at the end thereof the following new 26 USC 415 note. sentence: "A similar rule shall apply with respect to the last plan year beginning before January 1, 1984, for purposes of applying section 416(h) of the Internal Revenue Code of 1954." (4) TREATMENT OF DISTRIBUTIONS FROM TERMINATED PLANS.—
Paragraph (3) of section 416(g) (relating to distributions during 26 USC 416. last 5 years taken into account) is amended by adding at the end thereof the following new sentence: "The preceding sentence ')& shall also apply to distributions under a terminated plan which if it had not been terminated would have been required to be included in an aggregation group." (5) CLARIFICATION OF COST-OF-LIVING ADJUSTMENTS.—
(A) IN GENERAL.—Paragraph (2) of section 416(d) (relating to cost-of-living adjustments) is amended by striking out "in the same manner" and inserting in lieu thereof "at the same time and in the same manner". (B) SIMPLIFIED EMPLOYEE PENSIONS.—Subparagraph (C) of
section 408(k)(3) (relating to contributions must bear uni- 26 USC 408. form relationship to total compensation) is amended by adding at the end thereof the following new sentence: "The Secretary shall annually adjust the $200,000 amount contained in the preceding sentence at the same time and in jj;.,.,,
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