Sec. 315. Clarification regarding elective deferrals
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/bill/115/s/3781/is/section-315·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 6 months after the date of the enactment of this Act, the Secretary of the Treasury shall issue rules clarifying that employees who have had a severance from employment may make— elective deferrals described in subparagraph (A), (B), or
(C)of section 402(g)(3) of the Internal Revenue Code of 1986 (other than elective deferrals under section 401(k)(11) of such Code); elective contributions under an eligible deferred compensation plan described in section 457(b) of such Code; and to the extent provided by the Secretary, elective deferrals described in section 402(g)(3)(D) or 401(k)(11) of such Code. Such rules shall only permit such contributions or deferrals with respect to payments of bona fide accumulated sick leave, accumulated vacation pay, severance, or back pay. The Secretary may apply such other conditions on such contributions or deferrals as are necessary or appropriate to carry out the purposes of this section. Except as otherwise determined by the Secretary to be necessary to carry out the purposes of this section, the rules described in subsection
(a)shall provide that the contributions or deferrals shall, for purposes of section 457 and subchapter D of chapter 1 of subtitle A of the Internal Revenue Code of 1986, be treated as contributions or deferrals made on behalf of active employees, not on behalf of former employees.