PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3471

following new sentence: "For purposes of determining excess   Contracts.
aggregate contributions under an annuity contract described in
section 403(b), such contract shall be treated as a plan described
in subsection (eXD."
(11)	Paragraph (2) of section 4979(0 of the 1986 Code (relating
to inclusion in prior year) is amended to read as follows:
"(2) year of inclusion.—
"(A) in general.—Except as provided in subparagraph
(B), any amount distributed as provided in paragraph (1)
shall be treated as received and earned by the recipient in
Ms taxable year for which such contribution was made.
"(B) de minimis distributions.—If the total excess con-
tributions and excess aggregate contributions distributed to
a recipient under a plan for any plan year are less than
$100, such distributions (and any income allocable thereto)
shall be treated as earned and received by the recipient in
his taxable year in which such distributions were made."
(12)	Subsection  (d)  of section   1117   of the   Reform   Act    26 USC 401 note.
is amended by adding at the end thereof the following new
paragraph:
"(4) distributions before plan amendment.—
"(A) in general.—If a plan amendment is required to
allow a plan to make any distribution described in section
401(mX6) of the Internal Revenue Code of 1986, any such
distribution which is made before the close of the 1st plan
year for which such amendment is required to be in effect
under section 1140 shall be treated as made in accordance
with the provisions of the plan.
"(B) distributions pursuant to model amendment.—
"(i) secretary to prescribe amendment.—The Sec-
retary of the Treasury or his delegate shall prescribe
an amendment which allows a plan to make any dis-
tribution described in section 401(mX6) of the Internal
Revenue Code of 1986.
"(ii) adoption by plan.—If a plan adopts the amend-
ment prescribed under clause (i) and makes a dis-
tribution in accordance with such amendment, such
distribution shall be treated as made in accordance
with the provisions of the plan."
(m) amendments related to section 1120 of the reform act.—
(1X.A) Section 403(bX10) of the 1986 Code (relating to non-
discrimination requirements), as added by section 1120(b) of the
Reform Act, is redesignated as paragraph (12).
(B) Subparagraph (D) of section 403(bXD of the 1986 Code is
amended by striking out "paragraph (10)" and inserting in lieu
thereof "paragraph (12)".
(2)	Clause (i) of section 403(bX12XA), as redesignated by para-
graph (1), is amended—
 (A)	by inserting "(17)," after "(5),", and
 (B)	by inserting ", section 401(m)," after "section 401(a)"
the first place it appears.
(3)	Section 1120(c) of the Reform Act is amended to read as    26 USC 403 note.
follows:
"(c) effective dates.—
"(1) in general.—Except as provided in paragraph (2), the
amendments made by this section shall apply to years begin-
ning after December 31,1988.