102 STAT. 3458

PUBLIC LAW 100-647—NOV. 10, 1988

(B) Section 402(g) of the 1986 Code, as added by section
1854(1X2) of the Reform -Act, is redesignated as subsection (j).
26 USC 402 note. (Q Section 1854(fX4XQ of the Reform Act is amended by

striking out "section 402(g)" and inserting in lieu thereof "sec-
tion 402Q)".

(7XA) Section 401(a) of the 1986 Code is amended by adding at
the end thereof the following new paragraph:

"(30) LMITATIONS ON ELECTIVE DEFERRALS.—In the case of a
trust which is part of a plan under which elective deferrals
(within the meaning of section 402(gX3)) may be made with
respect to any individual during a calendar year, such trust
shall not constitute a qualified trust under this subsection
unless the plan provides that the amount of such deferrals
under such plan and all other plans, contracts, or arrangements
of an employer maintaining such plan may not exceed the
amount of the limitation in effect under section 402(gXD for
taxable years beginning in such calendar year."

(B) Section 403(bXD of the 1986 Code is amended by striking
out "and" at the end of subparagraph (C), by inserting "and" at
the end of subparagraph (D), and by inserting after subpara-
graph (D) the following new subparagraph:

"(E) in the case of a contract purchased under a plan
which provides a salary reduction agreement, the plan
meets the requirements of section 401(aX30),".
(O Subparagraph (A) of section 408(kX6) of the 1986 Code, as
amended by subsection (fXD, is amended by adding at the end
thereof the following new clause:

"(iv) LIMITATIONS ON ELECTIVE DEFERRALS.—^Clause (i)
shall not apply to a simplified employee pension unless
the requirements of section 401(aX30) are met."
(D) Subparagraph (D) of section 501(cX18) of the 1986 Code is
amended by striking out "and" at the end of clause (ii), by
striking out the period at the end of clause (iii) and inserting in
lieu thereof ", and", and by inserting after clause (iii) the
following new clause:

"(iv) the requirements of section 401(aX30) are met."

26 USC 401 note. (EXi) Except as provided in clause (ii), the amendments made

by this paragraph shall apply to plan years beginning after
December 31,

(ii) In the case of a plan described in section 1105(cX2) of the
Reform Act, the amendments made by this paragraph shall not
apply to contributions made pursuant to an agreement de-
scribed in such section for plan years beginning before the
earlier of—

(D the later of January 1,1988, or the date on which the
last of such agreements terminates (determined without
regard to any extension thereof after February 28,1986), or

(TO January 1,1989.

26 USC 402 note. (8) Section 1105(cX2XA) of the Reform Act is amended by

striking out "the last of such collective bargaining agreements
and inserting in Meu thereof "such agreement".

(9) Section 1105(c) of the Reform Act is amended by adding at
the end thereof the following new paragraph:

"(6) REPORTING REQUIREMENTS.—The amendments made by
subsection (b) shall apply to calendar years beginning after
December 31,1986."