Sec. 1613. Rules related to designated Roth contributions
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Paragraph
(30)of section 401(a) is amended— by striking and all that follows through deferrals.— In the case of a trust and inserting the following: deferrals.— In the case of a trust , by striking unless the plan provides that and inserting the following: unless the plan— provides that , by striking the period at the end and inserting , and , and by adding at the end the following: except as provided in subparagraph (B), includes a qualified Roth contribution program (as defined in section 402A(b)). Subparagraph (A)(ii) shall not apply to any plan of an eligible employer (as defined in section 408(p)(2)(C)). . Section 402A(b)(1) is amended by striking all that follows designated Roth contributions and inserting a period. The heading of section 402A (and the item relating to such section in the table of sections for part I of subchapter D of chapter 1) is amended by striking and inserting Optional treatment of elective deferrals as Roth contributions . Designated Roth contributions Subparagraph
(A)of section 402(g)(1) is amended by striking the applicable dollar amount and inserting 50 percent (100 percent in the case of elective deferrals with respect to any plan of an eligible employer (as defined in section 408(p)(2)(C)) of the applicable dollar amount . 457(b) plans Subsection
(b)of section 457 is amended by striking and at the end of paragraph (5), by redesignating paragraph
(6)as paragraph (7), and by inserting after paragraph
(5)the following new paragraph: which, in the case of a plan maintained by an employer described in subsection (e)(1)(A), meets requirements similar to the requirements of section 401(a)(30), and . Section 402(g)(1)(A) is amended by inserting and section 457(a)(1) after (h)(1)(B) . For treatment of amounts deferred under an eligible compensation plan of a governmental employer as elective deferrals, see section 1618(b)(1) of this Act. Section 402A(c)(2)(A) is amended to read as follows: the applicable dollar amount in effect under section 402(g)(1)(B) with respect to the employee for the taxable year, over . Section 401(a)(30) is amended— by inserting (including contributions treated as elective deferrals under section 402A(a)(1)) after section 402(g)(3) , and by striking section 402(g)(1)(A) and inserting section 402(g)(1)(B), and that the amount of elective deferrals not included in gross income may not exceed the amount of the limitation in effect under section 402(g)(1)(A), . Section 402(g)(1)(C) is amended— by striking In addition to subparagraph
(A)and inserting For purposes of subparagraph
(A). by striking gross income shall not include and all that follows through does not exceed and inserting the applicable dollar amount in effect for the taxable year under subparagraph
(B)shall be increased by . So much of section 402(g)(2)(A) as precedes clause
(i)is amended to read as follows: If an individual’s aggregate elective deferrals for a taxable year exceed the applicable dollar amount under paragraph
(1)(hereinafter in this paragraph referred to as excess total deferrals ) or if an individual’s aggregate elective deferrals (disregarding designated Roth contributions and simple Roth contributions) exceed the amount excludable under paragraph (1)(A) (hereinafter in this paragraph referred to as excess non-Roth deferrals )— . Section 402(g)(2)(A)(i) is amended by striking such excess deferrals and inserting such excess total deferrals or excess non-Roth deferrals . Section 402(g)(2)(C)(ii) is amended by striking the excess deferral and inserting the excess total deferral or excess non-Roth deferral . Section 402A(d)(2)(C) is amended by striking excess deferral and inserting excess total deferral . Section 402A(d)(3) is amended by striking excess deferral each place it appears and inserting excess total deferral . Section 402(g)(1)(A) is amended by striking the second sentence. Section 402A(c)(1)(A) is amended by striking without regard to this section and inserting (determined without regard to this section and section 402(g)) . Section 6051(a)(8) is amended by inserting after (as defined in section 402A) the following: , and the type of plan under which amounts are deferred or contributed . Subsection
(p)of section 408 is amended by adding at the end the following new paragraph: For purposes of this section— If a qualified salary reduction arrangement with respect to a simple retirement account includes a simple Roth contribution program, any simple Roth contribution made by an employer pursuant to such program shall be treated as an elective employer contribution, except that such contribution shall be paid to a Roth IRA and shall not be excludable from gross income. The term simple Roth contribution program means a program under which an employee may elect to make simple Roth contributions. The term simple Roth contribution means any elective employer contribution which— is excludable from gross income of an employee without regard to this paragraph, and the employee designates (at such time and in such manner as the Secretary may prescribe) as not being so excludable. In the case of an eligible employer which elects the application of this subparagraph with respect to the simple retirement accounts established pursuant to a qualified salary reduction arrangement of such employer, notwithstanding paragraph (2)(E), the applicable dollar amount for purposes of paragraph (2)(A)(ii), shall be equal to— in the case of any such account which is not designated as a Roth IRA, 50 percent of the applicable dollar amount in effect under section 402(g)(1)(B) for the taxable year, and in the case of any such account which is designated as a Roth IRA, the excess (if any) of— the applicable dollar amount in effect under section 402(g)(1)(B) for the taxable year, over the aggregate amount of elective employer contributions to any account described in clause (i). In the case of a simple retirement account with respect to which the application of this subparagraph is elected, the employer shall not be treated as an eligible employer for purposes of section 402(g)(1)(A), and the applicable dollar amount with respect to any eligible participant (as defined in section 414(v)) shall, notwithstanding section 414(v)(2)(B)(ii), be determined by reference to section 402(g)(1)(C). . Subsection
(c)of section 408A, as amended by this Act, is amended by adding at the end the following new paragraph: In the case of any simple retirement account, subparagraphs (A)(i) and
(B)of paragraph
(1)shall be applied by disregarding any contributions made to a simple retirement account and any qualified rollover contributions. . Section 408A(f)(1) is amended by striking or a simple retirement account . Section 6051(a)(8), as amended by this Act, is amended by inserting after (as defined in section 402A) the following: and simple Roth contributions (as defined in section 408(p)(11)(C)) . Except as provided in paragraph (2), the amendments made by this section shall apply to plan years and taxable years beginning after December 31, 2014.
(c)The amendments made by subsection
(c)shall apply to calendar years beginning after December 31, 2014.