Public Law 108-476
To treat certain arrangements maintained by the YMCA Retirement Fund as church plans for the purposes of certain provisions of the Internal Revenue Code of 1986, and for other purposes.
- Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. CERTAIN ARRANGEMENTS MAINTAINED BY THE YMCA RETIREMENT FUND TREATED AS CHURCH PLANS.
(a) Retirement Plans.-- (1) In general.--For purposes of sections 401(a) and 403(b) of the Internal Revenue Code of 1986, any retirement plan maintained by the YMCA Retirement Fund as of January 1, 2003, shall be treated as a church plan (within the meaning of section 414(e) of such Code) which is maintained by an organization described in section 414(e)(3)(A) of such Code. (2) Tax-deferred retirement plan.--In the case of a retirement plan described in paragraph (1) which allows contributions to be made under a salary reduction agreement-- (A) such treatment shall not apply for purposes of section 415(c)(7) of such Code, and (B) any account maintained for a participant or beneficiary of such plan shall be treated for purposes of such Code as a retirement income account described in section 403(b)(9) of such Code, except that such account shall not, for purposes of section 403(b)(12) of such Code, be treated as a contract purchased by a church for purposes of section 403(b)(1)(D) of such Code. (3) Money purchase pension plan.--In the case of a retirement plan described in paragraph (1) which is subject to the requirements of section 401(a) of such Code-- (A) such plan (but not any reserves held by the YMCA Retirement Fund)-- (i) shall be treated for purposes of such Code as a defined contribution plan which is a money purchase pension plan, and (ii) shall be treated as having made an election under section 410(d) of such Code for plan years beginning after December 31, 2005, except that notwithstanding the election-- (I) nothing in the Employee Retirement Income Security Act of 1974 or such Code shall prohibit the YMCA Retirement Fund from commingling for investment purposes the assets of the electing plan with the assets of such Fund and with the assets of any employee benefit plan maintained by such Fund, and (II) nothing in this section shall be construed as subjecting any assets described in subclause (I), other than the assets of the electing plan, to any provision of such Act, (B) notwithstanding section 401(a)(11) or 417 of such Code or section 205 of such Act, such plan may offer a lump-sum distribution option to participants who have not attained age 55 without offering such participants an annuity option, and (C) any account maintained for a participant or beneficiary of such plan shall, for purposes of section 401(a)(9) of such Code, be treated as a retirement income account described in section 403(b)(9) of such Code. (4) Self-funded death benefit plan.--For purposes of section 7702(j) of such Code, a retirement plan described in paragraph (1) shall be treated as an arrangement described in section 7702(j)(2). (b) YMCA Retirement Fund.--For purposes of this section, the term "YMCA Retirement Fund" means the Young Men's Christian Association Retirement Fund, a corporation created by an Act of the State of New York which became law on April 30, 1921. (c) Effective Date.--This section shall apply to plan years beginning after December 31, 2003.
Approved December 21, 2004.
CONGRESSIONAL RECORD, Vol. 150 (2004):
- Nov. 19, considered and passed House.
- Dec. 7, considered and passed Senate.