102 STAT. 3470

PUBLIC LAW 100-647—NOV. 10, 1988

26 USC 401 note.

26 USC 401 note.

Effective date.
26 USC 401 note.

(B), an excess deferral under section 402(g)(2)(A), or an
excess aggregate contribution under section 401(m)(6)(B)."

(8) Subparagraph (B) of section 1116(f)(2) of the Reform Act is
amended by adding at the end thereof the following new sen-
tence: "If clause (i) or (ii) applies to any arrangement adopted by
a governmental unit, then any cash or deferred arrangement
adopted by such unit on or after the date referred to in the
applicable clause shall be treated as adopted before such date."

(9) Section 401(k)(4)(B) of the 1986 Code is amended by adding
at the end thereof the following new sentence:

"This subparagraph shall not apply to a rural electric
cooperative plan/'

(10) Clause (i) of section 1116(f)(2)(B) of the Reform Act is
amended by striking out "(or political subdivision thereof)" and
inserting in lieu thereof "or political subdivision thereof, or any
agency or instrumentality thereof,".

(1) AMENDMENTS RELATED TO SECTION 1117 OF THE REFORM ACT.—

(1) Paragraph (1) of section 401(m) of the 1986 Code (relating
to nondiscrimination test for matching contributions and em-
ployee contributions) is amended by striking out "A plan" and
inserting in lieu thereof "A defined contribution plan".

(2) Paragraph (3) of section 401(m) of the 1986 Code (relating
to requirements) is amended by adding at the end thereof the
following new sentence: "If matching contributions are taken
into account for purposes of subsection (kX3)(AXii) for any plan
year, such contributions shall not be taken into account under
subparagraph (A) for such year."

(3) The last sentence of section 401(m)(2XB) of the 1986 Code is
amended by striking out "such contributions" the first place it
appears and inserting in lieu thereof "contributions to which
this subsection applies".

(4) Section 401(mX4XA) of the 1986 Code (defining matching
contribution) is amended by striking out "the plan" each place
it appears and inserting in lieu thereof "a defined contribution
plan0.

(5XA) Section 401(mX4)(B) of the 1986 Code (defining elective
deferral) is amended by striking out "section 402(gX3XA)" and
inserting in lieu thereof "section 402(g)(3)".

(B) The amendment made by this paragraph shall take effect
as if included in the amendments made by section 1120 of the
Reform Act.

(6) Subparagraph (C) of section 401(m)(6) of the 1986 Code is
amended by striking out "EXCESS" in the subparagraph heading
and inserting in lieu thereof "EXCESS AGGREGATE".

(7) Section 401(mX7XA) of the 1986 Code (relating to additional
tax of section 72(t) not applicable) is amended by striking out
"paragraph (8)" and inserting in lieu thereof "paragraph (6)".

(8) Section 4979(aXD of the 1986 Code (relating to tax on
certain excess contributions) is amended by striking out "a cash
or deferred arrangement which is part of*.

(9) Section 4979(c) of the 1986 Code (defining excess contribu-
tions) is amended—

(A) by striking out "403(b),", and

(B) by striking out "408(kX8XB)" and inserting in lieu
thereof "408(kX6XO".

(10) Section 4979(d) of the 1986 Code (defining excess aggre-
gate contribution) is amended by adding at the end thereof the