# Pub. L. 107-16: changes to the Internal Revenue Code 2001-06-07, 115 Stat. 41. Source: . ## Legislative history - Bill: [H.R. 1836](https://www.congress.gov/bill/107th-congress/house-bill/1836) - Conference report: [H. Rept. 107-84](https://www.govinfo.gov/content/pkg/CRPT-107hrpt84/html/CRPT-107hrpt84.htm) - Bluebook: [JCT general explanation (2003)](https://www.govinfo.gov/app/details/CPRT-108JPRT83912) ## § 1: Tax imposed - § 1(f): Pub. L. 107–16, § 302(b)(2), substituted “Phaseout of marriage penalty in 15-percent bracket; adjustments” for “Adjustments” in heading. - § 1(f)(2)(A): Pub. L. 107–16, § 302(b)(1), inserted “except as provided in paragraph (8),” before “by increasing”. - § 1(f)(6)(B): Pub. L. 107–16, § 301(c)(1), substituted “(other than with respect to sections 63(c)(4) and 151(d)(4)(A)) shall be applied” for “(other than with respect to subsection (c)(4) of section 63 (as it applies to subsections (c)(5)(A) and (f) of such section) and section 151(d)(4)(A)) shall be applied”. - § 1(f)(8): Pub. L. 107–16, § 302(a), added par. (8). - § 1(g)(7)(B)(ii)(II): Pub. L. 107–16, § 101(c)(1), substituted “10 percent.” for “15 percent”. - § 1(h)(1)(A)(ii)(I), § 1(h)(1)(A)(ii): Pub. L. 107–16, § 101(c)(2)(A), substituted “25 percent” for “28 percent”. - § 1(h): Pub. L. 107–16, § 101(c)(2)(B), struck out par. (13), which set out special rules for determination of 28-percent rate gain, unrecaptured section 1250 gain, pass-thru entities, and charitable remainder trusts. - § 1(i): Pub. L. 107–16, § 101(a), added subsec. (i). ## § 15: Effect of changes - § 15(f): Pub. L. 107–16, § 101(c)(3), added subsec. (f). ## § 21: Expenses for household and dependent care services necessary for gainful employment - § 21(a)(2): Pub. L. 107–16, § 204(b), substituted “35 percent” for “30 percent” and “$15,000” for “$10,000”. - § 21(c)(1): Pub. L. 107–16, § 204(a)(1), substituted “$3,000” for “$2,400”. - § 21(c)(2): Pub. L. 107–16, § 204(a)(2), substituted “$6,000” for “$4,800”. ## § 23: Adoption expenses - § 23(a)(1): Pub. L. 107–16, § 202(a)(1), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.” - § 23(a)(2): Pub. L. 107–16, § 202(c), inserted concluding provisions. - § 23(b)(1): Pub. L. 107–16, § 202(b)(1)(A), substituted “subsection (a)(1)(A)” for “subsection (a)” and “$10,000” for “$5,000” and struck out “($6,000, in the case of a child with special needs)” before period at end. - § 23(b)(2)(A)(i): Pub. L. 107–16, § 202(b)(2)(A), substituted “$150,000” for “$75,000”. - § 23(b): Pub. L. 107–16, § 202(f)(1), added par. (4). - § 23(c): Pub. L. 107–16, § 202(f)(2)(A), substituted “subsection (b)(4)” for “section 26(a)” and struck out “reduced by the sum of the credits allowable under this subpart (other than this section and sections 24 and 1400C)” before “, such excess”. - § 23(c): Pub. L. 107–16, § 201(b)(2)(E), substituted “and sections 24 and 1400C” for “and section 1400C”. - § 23(d)(2): Pub. L. 107–16, § 202(d)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘eligible child’ means any individual— - § 23(h), § 23(i): Pub. L. 107–16, § 202(e)(1), added subsec. (h) and redesignated former subsec. (h) as (i). ## § 24: Child tax credit - § 24(a): Pub. L. 107–16, § 201(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “There shall be allowed as a credit against the tax imposed by this chapter for the taxable year with respect to each qualifying child of the taxpayer an amount equal to $500 ($400 in the case of taxable years beginning in 1998).” - § 24(b): Pub. L. 107–16, § 201(b)(2)(A), amended heading generally, substituting “Limitations” for “Limitation based on adjusted gross income”. - § 24(b)(1): Pub. L. 107–16, § 201(b)(2)(B), amended heading generally, substituting “Limitation based on adjusted gross income” for “In general”. - § 24(b): Pub. L. 107–16, § 201(b)(1), added par. (3). - § 24(b): Pub. L. 107–16, § 618(b)(2)(A), as amended by Pub. L. 107–147, § 417(23)(A), substituted “sections 23 and 25B” for “section 23”. - § 24(b): Pub. L. 107–16, § 202(f)(2)(B), substituted “this section and section 23” for “this section”. - § 24(d): Pub. L. 107–16, § 201(c)(1), amended subsec. heading and heading and text of par. (1) generally. Prior to amendment, text read as follows: “In the case of a taxpayer with three or more qualifying children for any taxable year, the aggregate credits allowed under subpart C shall be increased by the lesser of— - § 24(d)(1): Pub. L. 107–16, § 201(b)(2)(C)(i), substituted “subsection (b)(3)” for “section 26(a)” wherever appearing in subsec. (d), as amended by Pub. L. 107–16, § 201(c). - § 24(d)(1)(B): Pub. L. 107–16, § 201(b)(2)(C)(ii), substituted “amount of credit allowed by this section” for “aggregate amount of credits allowed by this subpart” in subpar. (B) as amended by Pub. L. 107–16, § 201(c). - § 24(d)(2): Pub. L. 107–16, § 201(d), redesignated par. (3) as (2) and struck out heading and text of former par. (2). Text read as follows: “For taxable years beginning after December 31, 2001, the credit determined under this subsection for the taxable year shall be reduced by the excess (if any) of— - § 24(d)(3): Pub. L. 107–16, § 201(d)(2), redesignated par. (4) as (3). Former par. (3) redesignated (2). - § 24(d): Pub. L. 107–16, § 201(c)(2), added par. (4). Former par. (4) redesignated (3). ## § 25: Interest on certain home mortgages - § 25(e)(1)(C): Pub. L. 107–16, § 618(b)(2)(B), inserted “25B,” after “24,”. - § 25(e)(1)(C): Pub. L. 107–16, § 201(b)(2)(F), inserted “, 24,” after “sections 23”. ## § 25A: American Opportunity and Lifetime Learning credits - § 25A(e): Pub. L. 107–16, § 401(g)(2)(A), amended heading and text of subsec. (e) generally. Prior to amendment, text read as follows: ## § 25B: Elective deferrals and IRA contributions by certain individuals - Enacted 26 U.S.C. § 25B. - § 25B: Pub. L. 107–16, § 618(b)(1), added subsec. (g) relating to limitation based on amount of tax. ## § 26: Limitation based on tax liability; definition of tax liability - § 26(a)(1): Pub. L. 107–16, § 618(b)(2)(C), as amended by Pub. L. 107–147, § 417(23)(B), substituted “, 24, and 25B” for “and 24” in introductory provisions. - § 26(a)(1): Pub. L. 107–16, § 202(f)(2)(C), substituted “sections 23 and 24” for “section 24” in introductory provisions. - § 26(a)(1): Pub. L. 107–16, § 201(b)(2)(D), inserted “(other than section 24)” after “this subpart” in introductory provisions. ## § 32: Earned income - § 32(a)(2)(B): Pub. L. 107–16, § 303(d)(1), struck out “modified” before “adjusted gross income”. - § 32(b)(2): Pub. L. 107–16, § 303(a)(1), reenacted par. heading without change, designated existing provisions as subpar. (A), inserted subpar. heading, substituted “Subject to subparagraph (B), the earned” for “The earned”, and added subpar. (B). - § 32(c)(1)(C): Pub. L. 107–16, § 303(f), amended heading and text of subpar. (C) generally. Prior to amendment, text read as follows: “If 2 or more individuals would (but for this subparagraph and after application of subparagraph (B)) be treated as eligible individuals with respect to the same qualifying child for taxable years beginning in the same calendar year, only the individual with the highest modified adjusted gross income for such taxable years shall be treated as an eligible individual with respect to such qualifying child.” - § 32(c)(2)(A)(i): Pub. L. 107–16, § 303(b), inserted “, but only if such amounts are includible in gross income for the taxable year” after “other employee compensation”. - § 32(c)(3)(A): Pub. L. 107–16, § 303(e)(2)(B), struck out “except as provided in subparagraph (B)(iii),” before “who has”. - § 32(c)(3)(B): Pub. L. 107–16, § 303(e)(1), reenacted heading, introductory provisions, and subcl. (III) of cl. (i) without change and amended subcls. (I) and (II) generally. Prior to amendment, subcls. (I) and (II) read as follows: - § 32(c)(3)(B): Pub. L. 107–16, § 303(e)(2)(A), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of clause (i)(III), the term ‘eligible foster child’ means an individual not described in clause (i)(I) or (II) who— - § 32(c)(3): Pub. L. 107–16, § 303(h), substituted “subparagraph (A)(ii)” for “subparagraphs (A)(ii) and (B)(iii)(II)”. - § 32(c): Pub. L. 107–16, § 303(d)(2)(A), struck out heading and text of par. (5), which defined “modified adjusted gross income” as meaning adjusted gross income without regard to certain described amounts and increased by certain described amounts. - § 32(f)(2)(B): Pub. L. 107–16, § 303(d)(2)(B), struck out “modified” before “adjusted gross income” in two places. - § 32(h): Pub. L. 107–16, § 303(c), struck out heading and text of subsec. (h). Text read as follows: “The credit allowed under this section for the taxable year shall be reduced by the amount of tax imposed by section 55 (relating to alternative minimum tax) with respect to such taxpayer for such taxable year.” - § 32(j)(1)(B): Pub. L. 107–16, § 303(a)(2), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 1995’ for ‘calendar year 1992’ in subparagraph (B) thereof.” - § 32(j)(2)(A): Pub. L. 107–16, § 303(a)(3), substituted “subsection (b)(2)(A) (after being increased under subparagraph (B) thereof)” for “subsection (b)(2)”. - § 32(n): Pub. L. 107–16, § 201(c)(3), struck out heading and text of subsec. (n), which had increased credit allowable under this section in the case of a taxpayer with respect to whom a child tax credit is allowed under section 24(a), described amount of increase, and set forth provisions relating to coordination with other credits allowable under this part. ## § 38: General business credit - § 38(b)(12): Pub. L. 107–16, § 619(b), struck out “plus” at end. - § 38(b)(13): Pub. L. 107–16, § 619(b), substituted “, plus” for period at end. - § 38(b)(13): Pub. L. 107–16, § 205(b)(1), struck out “plus” at end. - § 38(b)(14): Pub. L. 107–16, § 619(b), added par. (14). - § 38(b)(14): Pub. L. 107–16, § 205(b)(1), substituted “, plus” for period at end. - § 38(b)(15): Pub. L. 107–16, § 205(b)(1), added par. (15). ## § 39: Carryback and carryforward of unused credits - § 39(d): Pub. L. 107–16, § 619(c)(1), added par. (10). ## § 45E: Small employer pension plan startup costs - Enacted 26 U.S.C. § 45E. ## § 45F: Employer-provided child care credit - Enacted 26 U.S.C. § 45F. ## § 55: Alternative minimum tax imposed - § 55(d)(1)(A): Pub. L. 107–16, § 701(a)(1), substituted “$45,000 ($49,000 in the case of taxable years beginning in 2001, 2002, 2003, and 2004)” for “$45,000”. - § 55(d)(1)(B): Pub. L. 107–16, § 701(b)(1), struck out “and” at end. - § 55(d)(1)(B): Pub. L. 107–16, § 701(a)(2), substituted “$33,750 ($35,750 in the case of taxable years beginning in 2001, 2002, 2003, and 2004)” for “$33,750”. - § 55(d)(1)(C), § 55(d)(1)(D): Pub. L. 107–16, § 701(b)(1), added subpars. (C) and (D) and struck out former subpar. (C) which read as follows: “$22,500 in the case of— - § 55(d)(3): Pub. L. 107–16, § 701(b)(3), in concluding provisions, substituted “paragraph (1)(C)” for “paragraph (1)(C)(i)” and “the minimum amount of such income (as so determined) for which the exemption amount under paragraph (1)(C) is zero, or (ii) such exemption amount (determined without regard to this paragraph)” for “$165,000 or (ii) $22,500”. - § 55(d)(3)(C): Pub. L. 107–16, § 701(b)(2), substituted “subparagraph (C) or (D) of paragraph (1)” for “paragraph (1)(C)”. ## § 62: Adjusted gross income defined - § 62(a)(18): Pub. L. 107–16 added par. (18). ## § 63: Taxable income defined - § 63(c)(2)(A): Pub. L. 107–16, § 301(a)(1), substituted “the applicable percentage of the dollar amount in effect under subparagraph (C) for the taxable year” for “$5,000”. - § 63(c)(2)(B): Pub. L. 107–16, § 301(a)(2), inserted “or” at end. - § 63(c)(2)(C): Pub. L. 107–16, § 301(a)(3), substituted “in any other case.” for “in the case of an individual who is not married and who is not a surviving spouse or head of household, or”. - § 63(c)(2): Pub. L. 107–16, § 301(a)(4), struck out subpar. (D) which read as follows: “$2,500 in the case of a married individual filing a separate return.” - § 63(c)(4): Pub. L. 107–16, § 301(c)(2), inserted at end “The preceding sentence shall not apply to the amount referred to in paragraph (2)(A).” - § 63(c)(7): Pub. L. 107–16, § 301(b), added par. (7). ## § 68: Overall limitation on itemized deductions - § 68: Pub. L. 107–16 added subsecs. (f) and (g). ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(e)(9): Pub. L. 107–16, § 402(a)(4)(A), (B), substituted “qualified tuition” for “qualified State tuition” in heading and text. - § 72(f): Pub. L. 107–16, § 632(a)(3)(A), substituted “section 403(b)(2)(D)(iii), as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001” for “section 403(b)(2)(D)(iii))” in concluding provisions. - § 72(o)(4): Pub. L. 107–16, § 641(e)(1), substituted “403(b)(8), 408(d)(3), and 457(e)(16)” for “and 408(d)(3)”. - § 72(t)(9): Pub. L. 107–16, § 641(a)(2)(C), added par. (9). ## § 86: Social security and tier 1 railroad retirement benefits - § 86(b)(2)(A): Pub. L. 107–16 inserted “222,” after “221,”. ## § 117: Qualified scholarships - § 117(c): Pub. L. 107–16 designated existing provisions as par. (1), inserted par. heading, substituted “Except as provided in paragraph (2), subsections (a)” for “Subsections (a)”, and added par. (2). ## § 121: Exclusion of gain from sale of principal residence - § 121(d)(9): Pub. L. 107–16, § 542(c), added par. (9). See Codification notes above and Effective Date of 2001 Amendment note below. ## § 127: Educational assistance programs - § 127(c)(1): Pub. L. 107–16, § 411(b), struck out before period at end “, and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree”. - § 127(d), § 127(e): Pub. L. 107–16, § 411(a), redesignated subsec. (e) as (d) and struck out heading and text of former subsec. (d). Text read as follows: “This section shall not apply to expenses paid with respect to courses beginning after December 31, 2001.” ## § 132: Certain fringe benefits - § 132(a)(7): Pub. L. 107–16, § 665(a), added par. (7). - § 132(m), § 132(n): Pub. L. 107–16, § 665(b), added subsec. (m) and redesignated former subsec. (m) as (n). ## § 135: Income from United States savings bonds used to pay higher education tuition and fees - § 135(c)(2)(C): Pub. L. 107–16, § 402(a)(4)(A), (B), substituted “qualified tuition” for “qualified State tuition” in heading and text. - § 135(c)(4)(A): Pub. L. 107–16, § 431(c)(1), inserted “222,” after “221,”. - § 135(d)(1)(D): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 135(d)(2)(A): Pub. L. 107–16, § 401(g)(2)(B), substituted “allowed” for “allowable”. - § 135(d)(2)(B): Pub. L. 107–16, § 402(b)(2)(A), substituted “the exclusions under sections 529(c)(3)(B) and 530(d)(2)” for “the exclusion under section 530(d)(2)”. ## § 137: Adoption assistance programs - § 137(a): Pub. L. 107–16, § 202(a)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program.” - § 137(b)(1): Pub. L. 107–16, § 202(b)(1)(B), substituted “subsection (a)(1)” for “subsection (a)” and “$10,000” for “$5,000 ($6,000, in the case of a child with special needs)”. - § 137(b)(2)(A): Pub. L. 107–16, § 202(b)(2)(B), substituted “$150,000” for “$75,000”. - § 137(b)(3)(A): Pub. L. 107–16, § 431(c)(1), inserted “222,” after “221,”. - § 137(f): Pub. L. 107–16, § 202(d)(2), (e)(2), added subsec. (f) and struck out heading and text of former subsec. (f). Text read as follows: “This section shall not apply to amounts paid or expenses incurred after December 31, 2001.” ## § 142: Exempt facility bond - § 142(a)(13): Pub. L. 107–16, § 422(a), added par. (13). - § 142(k): Pub. L. 107–16, § 422(b), added subsec. (k). ## § 146: Volume cap - § 146(g)(3): Pub. L. 107–16 substituted “(12), or (13)” for “or (12)” and “environmental enhancements of hydroelectric generating facilities, and qualified public educational facilities” for “and environmental enhancements of hydroelectric generating facilities”. ## § 147: Other requirements applicable to certain private activity bonds - § 147(h): Pub. L. 107–16, § 422(e), substituted “certain bonds” for “mortgage revenue bonds, qualified student loan bonds, and qualified 501(c)(3) bonds” in heading. - § 147(h)(3): Pub. L. 107–16, § 422(d), added par. (3). ## § 148: Arbitrage - § 148(f)(4)(D)(vii): Pub. L. 107–16 substituted “the lesser of $10,000,000” for “the lesser of $5,000,000”. ## § 151: Allowance of deductions for personal exemptions ## § 170: Charitable, etc., contributions and gifts - § 170(e)(1): Pub. L. 107–16, § 542(e)(2)(B), inserted at end “For purposes of this paragraph, the determination of whether property is a capital asset shall be made without regard to the exception contained in section 1221(a)(3)(C) for basis determined under section 1022.” ## § 196: Deduction for certain unused business credits - § 196(c)(10): Pub. L. 107–16 added par. (10). ## § 219: Retirement savings - § 219(b)(1)(A): Pub. L. 107–16, § 601(a)(1), substituted “the deductible amount” for “$2,000”. - § 219(b)(5): Pub. L. 107–16, § 601(a)(2), added par. (5). - § 219(d)(2): Pub. L. 107–16, § 641(e)(2), substituted “408(d)(3), or 457(e)(16)” for “or 408(d)(3)”. - § 219(g)(3)(A)(ii): Pub. L. 107–16, § 431(c)(1), inserted “222,” after “221,”. ## § 221: Interest on education loans - § 221(b)(2)(B)(i), § 221(b)(2)(B)(ii): Pub. L. 107–16, § 412(b)(1), amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) read as follows: - § 221(b)(2)(C)(i): Pub. L. 107–16, § 431(c)(2), inserted “222,” before “911”. - § 221(d): Pub. L. 107–16, § 412(a)(1), redesignated subsec. (e) as (d), and struck out heading and text of former subsec. (d). Text read as follows: “A deduction shall be allowed under this section only with respect to interest paid on any qualified education loan during the first 60 months (whether or not consecutive) in which interest payments are required. For purposes of this paragraph, any loan and all refinancings of such loan shall be treated as 1 loan. Such 60 months shall be determined in the manner prescribed by the Secretary in the case of multiple loans which are refinanced by, or serviced as, a single loan and in the case of loans incurred before the date of the enactment of this section.” - § 221(e): Pub. L. 107–16, § 412(a)(1), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d). - § 221(e)(2): Pub. L. 107–16, § 402(b)(2)(B), inserted “529,” after “135,”. - § 221(f): Pub. L. 107–16, § 412(a)(1), redesignated subsec. (g) as (f). Former subsec. (f) redesignated (e). - § 221(f)(1): Pub. L. 107–16, § 412(b)(2), as amended by Pub. L. 108–311, § 408(b)(5), substituted “$50,000 and $100,000 amounts” for “$40,000 and $60,000 amounts”. - § 221: Pub. L. 107–16, § 412(a)(1), redesignated subsec. (g) as (f). ## § 226: Cross reference - § 226: Pub. L. 107–16 renumbered section 222 of this title as this section. ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(a)(17): Pub. L. 107–16, § 611(c)(1), substituted “$200,000” for “$150,000” in two places. - § 401(a)(17)(B): Pub. L. 107–16, § 611(c)(2), substituted “July 1, 2001” for “October 1, 1993” and substituted “$5,000” for “$10,000” in two places. - § 401(a)(31): Pub. L. 107–16, § 657(a)(2)(A), substituted “Direct” for “Optional direct” in heading. - § 401(a)(31)(B): Pub. L. 107–16, § 657(a)(1), added subpar. (B). Former subpar. (B) redesignated (C). - § 401(a)(31)(B): Pub. L. 107–16, § 643(b), inserted at end “The preceding sentence shall not apply to such distribution if the plan to which such distribution is transferred— - § 401(a)(31)(B): Pub. L. 107–16, § 641(e)(3), substituted “, 403(a)(4), 403(b)(8), and 457(e)(16)” for “and 403(a)(4)”. - § 401(a)(31)(C): Pub. L. 107–16, § 657(a)(2)(B), substituted “Subparagraphs (A) and (B)” for “Subparagraph (A)”. - § 401(a)(31)(C): Pub. L. 107–16, § 657(a)(1), redesignated subpar. (B) as (C). Former subpar. (C) redesignated (D). - § 401(a)(31)(D), § 401(a)(31)(E): Pub. L. 107–16, § 657(a)(1), redesignated subpars. (C) and (D) as (D) and (E), respectively. - § 401(c)(2)(A): Pub. L. 107–16, § 611(g)(1), inserted at end “For purposes of this part only (other than sections 419 and 419A), this subparagraph shall be applied as if the term ‘trade or business’ for purposes of section 1402 included service described in section 1402(c)(6).” - § 401(k)(2)(B)(i)(I): Pub. L. 107–16, § 646(a)(1)(A), substituted “severance from employment” for “separation from service”. - § 401(k)(10): Pub. L. 107–16, § 646(a)(1)(C)(iii), struck out “or disposition of assets or subsidiary” after “plan” in heading. - § 401(k)(10)(A): Pub. L. 107–16, § 646(a)(1)(B), reenacted heading without change and amended text generally, substituting present provisions for provisions including termination of plan, disposition of assets, and disposition of subsidiary as events described in this paragraph. - § 401(k)(10)(B)(i): Pub. L. 107–16, § 646(a)(1)(C)(i), substituted “A termination” for “An event” and “the termination” for “the event”. - § 401(k)(10): Pub. L. 107–16, § 646(a)(1)(C)(ii), struck out heading and text of subpar. (C). Text read as follows: “An event shall not be treated as described in clause (ii) or (iii) of subparagraph (A) unless the transferor corporation continues to maintain the plan after the disposition.” - § 401(k)(11)(B)(i)(I): Pub. L. 107–16, § 611(f)(3)(A), substituted “the amount in effect under section 408(p)(2)(A)(ii)” for “$6,000”. - § 401(k)(11)(E): Pub. L. 107–16, § 611(f)(3)(B), struck out heading and text of subpar. (E). Text read as follows: “The Secretary shall adjust the $6,000 amount under subparagraph (B)(i)(I) at the same time and in the same manner as under section 408(p)(2)(E).” - § 401(m)(9): Pub. L. 107–16, § 666(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection and subsection (k) including— ## § 402: Taxability of beneficiary of employees’ trust - § 402(c)(2): Pub. L. 107–16, § 643(a), inserted at end “The preceding sentence shall not apply to such distribution to the extent— - § 402(c)(3): Pub. L. 107–16, § 644(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Paragraph (1) shall not apply to any transfer of a distribution made after the 60th day following the day on which the distributee received the property distributed.” - § 402(c)(4)(C): Pub. L. 107–16, § 636(b)(1), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “any hardship distribution described in section 401(k)(2)(B)(i)(IV).” - § 402(c)(8)(B): Pub. L. 107–16, § 617(c), inserted concluding provisions. - § 402(c)(8)(B)(v): Pub. L. 107–16, § 641(a)(2)(A), added cl. (v). - § 402(c)(8)(B)(vi): Pub. L. 107–16, § 641(b)(2), added cl. (vi). - § 402(c)(9): Pub. L. 107–16, § 641(d), struck out before period at end “; except that a trust or plan described in clause (iii) or (iv) of paragraph (8)(B) shall not be treated as an eligible retirement plan with respect to such distribution”. - § 402(c)(10): Pub. L. 107–16, § 641(a)(2)(B), added par. (10). - § 402(f)(1): Pub. L. 107–16, § 641(e)(5), struck out “from an eligible retirement plan” after “rollover distribution” in introductory provisions. - § 402(f)(1)(A): Pub. L. 107–16, § 657(b), inserted before comma at end “and that the automatic distribution by direct transfer applies to certain distributions in accordance with section 401(a)(31)(B)”. - § 402(f)(1)(A): Pub. L. 107–16, § 641(e)(6), substituted “an eligible retirement plan” for “another eligible retirement plan”. - § 402(f)(1)(B): Pub. L. 107–16, § 641(e)(6), substituted “an eligible retirement plan” for “another eligible retirement plan”. - § 402(f)(1)(E): Pub. L. 107–16, § 641(c), added subpar. (E). - § 402(f)(2)(A): Pub. L. 107–16, § 641(e)(4), substituted “, paragraph (4) of section 403(a), subparagraph (A) of section 403(b)(8), or subparagraph (A) of section 457(e)(16)” for “or paragraph (4) of section 403(a)”. - § 402(g)(1): Pub. L. 107–16, § 611(d)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Notwithstanding subsections (e)(3) and (h)(1)(B), the elective deferrals of any individual for any taxable year shall be included in such individual’s gross income to the extent the amount of such deferrals for the taxable year exceeds $7,000.” - § 402(g)(1)(A): Pub. L. 107–16, title VI, § 617(b)(1), inserted at end “The preceding sentence shall not apply the portion of such excess as does not exceed the designated Roth contributions of the individual for the taxable year.” - § 402(g)(2)(A): Pub. L. 107–16, title VI, § 617(b)(2), inserted “(or would be included but for the last sentence thereof)” after “paragraph (1)”. - § 402(g)(4): Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (5) as (4) and struck out heading and text of former par. (4). Text read as follows: “The limitation under paragraph (1) shall be increased (but not to an amount in excess of $9,500) by the amount of any employer contributions for the taxable year described in paragraph (3)(C).” - § 402(g)(5): Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (6) as (5). Former par. (5) redesignated (4). - § 402(g)(5): Pub. L. 107–16, § 611(d)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The Secretary shall adjust the $7,000 amount under paragraph (1) at the same time and in the same manner as under section 415(d); except that any increase under this paragraph which is not a multiple of $500 shall be rounded to the next lowest multiple of $500.” - § 402(g)(6): Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (7) as (6). Former par. (6) redesignated (5). - § 402(g)(7): Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (8) as (7). - § 402(g)(7)(B): Pub. L. 107–16, § 632(a)(3)(G), inserted “(as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001” before period at end. - § 402(g)(8), § 402(g): Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (9) as (8). Former par. (8) redesignated (7). ## § 402A: Optional treatment of elective deferrals as Roth contributions - Enacted 26 U.S.C. § 402A. ## § 403: Taxation of employee annuities - § 403(b)(1): Pub. L. 107–16, § 642(b)(1), substituted “section 408(d)(3)(A)(ii)” for “section 408(d)(3)(A)(iii)” in concluding provisions. - § 403(b)(1): Pub. L. 107–16, § 632(a)(2)(A), substituted “the applicable limit under section 415” for “the exclusion allowance for such taxable year” in concluding provisions. - § 403(b)(2): Pub. L. 107–16, § 632(a)(2)(B), struck out par. (2), which described exclusion allowance for purposes of subsec. (b) providing general criteria, determination under section 415 rules, number of years of service for duly ordained, commissioned, or licensed ministers or lay employees, and alternative exclusion allowance for such ministers or lay employees. - § 403(b)(3): Pub. L. 107–16, § 632(a)(2)(C), inserted “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” before period at end of second sentence. - § 403(b)(7)(A)(ii): Pub. L. 107–16, § 646(a)(2)(A), substituted “has a severance from employment” for “separates from service”. - § 403(b)(8)(A)(ii): Pub. L. 107–16, § 641(b)(1), substituted “such distribution to an eligible retirement plan described in section 402(c)(8)(B), and” for “such distribution to an individual retirement plan or to an annuity contract described in paragraph (1), and”. - § 403(b)(8)(B): Pub. L. 107–16, § 641(e)(7), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (2) through (7) of section 402(c) (including paragraph (4)(C) thereof) shall apply for purposes of subparagraph (A).” - § 403(b)(11): Pub. L. 107–16, § 646(a)(2)(B), substituted “severance from employment” for “separation from service” in heading. - § 403(b)(11)(A): Pub. L. 107–16, § 646(a)(2)(A), substituted “has a severance from employment” for “separates from service”. - § 403(b)(13): Pub. L. 107–16, § 647(a), added par. (13). ## § 404: Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan - § 404(a)(1)(A): Pub. L. 107–16, § 616(a)(2)(B)(i), inserted “(other than a trust to which paragraph (3) applies)” after “pension trust” in introductory provisions. - § 404(a)(1)(D): Pub. L. 107–16, § 652(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “In the case of any defined benefit plan (other than a multiemployer plan) which has more than 100 participants for the plan year, except as provided in regulations, the maximum amount deductible under the limitations of this paragraph shall not be less than the unfunded current liability determined under section 412(l). For purposes of determining whether a plan has more than 100 participants, all defined benefit plans maintained by the same employer (or any member of such employer’s controlled group (within the meaning of section 412(l)(8)(C))) shall be treated as 1 plan, but only employees of such member or employer shall be taken into account.” - § 404(a)(3)(A)(i)(I): Pub. L. 107–16, § 616(a)(1)(A), substituted “25 percent” for “15 percent”. - § 404(a)(3)(A)(v): Pub. L. 107–16, § 616(a)(2)(A), amended cl. (v) generally, substituting present provisions for provisions which directed that the limitation of cl. (i) for any taxable year would be increased by the unused pre-87 limitation carryforwards and defined “unused pre-87 limitation carryforwards”. - § 404(a)(3)(B): Pub. L. 107–16, § 616(b)(2)(A), struck out at end “The term ‘compensation otherwise paid or accrued during the taxable year to all employees’ shall include any amount with respect to which an election under section 415(c)(3)(C) is in effect, but only to the extent that any contribution with respect to such amount is nonforfeitable.” - § 404(a)(10)(B): Pub. L. 107–16, § 632(a)(3)(B), struck out “, the exclusion allowance under section 403(b)(2),” after “deferrals under section 402(g)”. - § 404(a)(12): Pub. L. 107–16, § 616(b)(1), added par. (12). - § 404(h)(1)(C): Pub. L. 107–16, § 616(a)(1)(B), substituted “25 percent” for “15 percent” in two places. - § 404(h)(2): Pub. L. 107–16, § 616(a)(2)(B)(ii), (iii), substituted “certain trusts” for “stock bonus and profit-sharing trust” in heading and “trust subject to subsection (a)(3)(A)” for “stock bonus or profit-sharing trust” in text. - § 404(k)(2)(A)(iii), § 404(k)(2)(A)(iv): Pub. L. 107–16, § 662(a), added cl. (iii) and redesignated former cl. (iii) as (iv). - § 404(k)(5)(A): Pub. L. 107–16, § 662(b), inserted “avoidance or” before “evasion”. - § 404(l): Pub. L. 107–16, § 611(c)(1), substituted “$200,000” for “$150,000” in two places. - § 404(n): Pub. L. 107–16, § 614(a), added subsec. (n). ## § 408: Individual retirement accounts - § 408(a)(1): Pub. L. 107–16, § 641(e)(8), substituted “403(b)(8), or 457(e)(16)” for “or 403(b)(8),”. - § 408(a)(1): Pub. L. 107–16, § 601(b)(1), substituted “on behalf of any individual in excess of the amount in effect for such taxable year under section 219(b)(1)(A)” for “in excess of $2,000 on behalf of any individual”. - § 408(b): Pub. L. 107–16, § 601(b)(3), substituted “the dollar amount in effect under section 219(b)(1)(A)” for “$2,000” in concluding provisions. - § 408(b)(2)(B): Pub. L. 107–16, § 601(b)(2), substituted “the dollar amount in effect under section 219(b)(1)(A)” for “$2,000”. - § 408(d)(3)(A): Pub. L. 107–16, § 642(a), inserted “or” at end of cl. (i), added cl. (ii) and concluding provisions, and struck out former cls. (ii) and (iii) which read as follows: - § 408(d)(3)(D)(i): Pub. L. 107–16, § 642(b)(2), substituted “(i) or (ii)” for “(i), (ii), or (iii)”. - § 408(d)(3)(G): Pub. L. 107–16, § 642(b)(3), reenacted heading without change and amended text of subpar. (G) generally. Prior to amendment, text read as follows: “This paragraph shall not apply to any amount paid or distributed out of a simple retirement account (as defined in subsection (p)) unless— - § 408(d)(3)(H): Pub. L. 107–16, § 643(c), added subpar. (H). - § 408(d)(3)(I): Pub. L. 107–16, § 644(b), added subpar. (I). - § 408(j): Pub. L. 107–16, § 601(b)(4), struck out “$2,000” before “amounts”. - § 408(k)(3)(C), § 408(k)(6)(D)(ii), § 408(k)(8): Pub. L. 107–16, § 611(c)(1), substituted “$200,000” for “$150,000”. - § 408(p)(2)(A)(ii): Pub. L. 107–16, § 611(f)(1), substituted “the applicable dollar amount” for “$6,000”. - § 408(p)(2)(E): Pub. L. 107–16, § 611(f)(2), amended heading and text of subpar. (E) generally. Prior to amendment, text read as follows: “The Secretary shall adjust the $6,000 amount under subparagraph (A)(ii) at the same time and in the same manner as under section 415(d), except that the base period taken into account shall be the calendar quarter ending September 30, 1996, and any increase under this subparagraph which is not a multiple of $500 shall be rounded to the next lower multiple of $500.” - § 408(p)(6)(A)(ii): Pub. L. 107–16, § 611(g)(2), inserted at end “The preceding sentence shall be applied as if the term ‘trade or business’ for purposes of section 1402 included service described in section 1402(c)(6).” - § 408(p)(8): Pub. L. 107–16, § 601(b)(5), substituted “the dollar amount in effect under section 219(b)(1)(A)” for “$2,000”. - § 408(q), § 408(r): Pub. L. 107–16, § 602(a), added subsec. (q) and redesignated former subsec. (q) as (r). ## § 408A: Roth IRAs - § 408A(e): Pub. L. 107–16 inserted “Such term includes a rollover contribution described in section 402A(c)(3)(A).” after first sentence. ## § 409: Qualifications for tax credit employee stock ownership plans - § 409(p), § 409: Pub. L. 107–16 added subsec. (p) and redesignated former subsec. (p) as (q). ## § 411: Minimum vesting standards - § 411(a)(2): Pub. L. 107–16, § 633(a)(1), substituted “Except as provided in paragraph (12), a plan” for “A plan” in introductory provisions. - § 411(a)(11)(D): Pub. L. 107–16, § 648(a)(1), added subpar. (D). - § 411(a)(12): Pub. L. 107–16, § 633(a)(2), added par. (12). - § 411(d)(6)(B): Pub. L. 107–16, § 645(b)(1), inserted after second sentence “The Secretary shall by regulations provide that this subparagraph shall not apply to any plan amendment which reduces or eliminates benefits or subsidies which create significant burdens or complexities for the plan and plan participants, unless such amendment adversely affects the rights of any participant in a more than de minimis manner.” - § 411(d)(6)(D), § 411(d)(6)(E): Pub. L. 107–16, § 645(a)(1), added subpars. (D) and (E). ## § 412: Minimum funding standards - § 412(c)(7)(A): Pub. L. 107–16, § 651(a)(1), substituted “in the case of plan years beginning before January 1, 2004, the applicable percentage” for “the applicable percentage”. - § 412(c)(7): Pub. L. 107–16, § 651(a)(2), reenacted heading and introductory provisions without change and amended table generally, substituting present provisions for provisions which had set out applicable percentage of 155 in the case of any plan year beginning in 1999 or 2000, 160 in the case of any plan year beginning in 2001 or 2002, 165 in the case of any plan year beginning in 2003 or 2004, and 170 in the case of any plan year beginning in 2005 and succeeding years. - § 412(c): Pub. L. 107–16, § 661(a), reenacted heading without change and amended text of par. (9) generally. Prior to amendment, text read as follows: “For purposes of this section, a determination of experience gains and losses and a valuation of the plan’s liability shall be made not less frequently than once every year, except that such determination shall be made more frequently to the extent required in particular cases under regulations prescribed by the Secretary.” ## § 414: Definitions and special rules - § 414(p)(10): Pub. L. 107–16, § 635(b), substituted “section 409(d), and section 457(d)” for “and section 409(d)”. - § 414(p)(11): Pub. L. 107–16, § 635(a), in heading substituted “certain other plans” for “governmental and church plans” and in text inserted “or an eligible deferred compensation plan (within the meaning of section 457(b))” after “subsection (e))”. - § 414(p)(12), § 414(p)(13): Pub. L. 107–16, § 635(c), added par. (12) and redesignated former par. (12) as (13). - § 414(v): Pub. L. 107–16, § 631(a), added subsec. (v). ## § 415: Limitations on benefits and contribution under qualified plans - § 415(a)(2): Pub. L. 107–16, § 632(a)(3)(C), struck out “, and the amount of the contribution for such portion shall reduce the exclusion allowance as provided in section 403(b)(2)” before period at end. - § 415(b)(1)(A): Pub. L. 107–16, § 611(a)(1)(A), substituted “$160,000” for “$90,000”. - § 415(b)(2)(A), § 415(b)(2)(B): Pub. L. 107–16, § 641(e)(9), substituted “403(b)(8), 408(d)(3), and 457(e)(16)” for “and 408(d)(3)”. - § 415(b)(2)(C): Pub. L. 107–16, § 611(a)(1)(B), (2), in heading substituted “$160,000” for “$90,000” and “age 62” for “the social security retirement age” and in text substituted “age 62” for “the social security retirement age” in two places, “$160,000” for “$90,000” in two places, and struck out at end “The reduction under this subparagraph shall be made in such manner as the Secretary may prescribe which is consistent with the reduction for old-age insurance benefits commencing before the social security retirement age under the Social Security Act.” - § 415(b)(2)(D): Pub. L. 107–16, § 611(a)(1)(B), (3), in heading substituted “$160,000” for “$90,000” and “age 65” for “the social security retirement age” and in text substituted “age 65” for “the social security retirement age” in two places and “$160,000” for “$90,000” in two places. - § 415(b)(2)(F): Pub. L. 107–16, § 611(a)(5)(A), struck out subpar. (F), which related to the application of subpars. (C) and (D) in the case of a governmental plan, a plan maintained by a tax-exempt organization, or a qualified merchant marine plan and defined “qualified merchant marine plan”. - § 415(b)(7): Pub. L. 107–16, § 654(a)(2), inserted “(other than a multiemployer plan)” after “defined benefit plan” in introductory provisions. - § 415(b)(7): Pub. L. 107–16, § 611(a)(1)(C), substituted “one-half the amount otherwise applicable for such year under paragraph (1)(A) for ‘$160,000’ ” for “the greater of $68,212 or one-half the amount otherwise applicable for such year under paragraph (1)(A) for ‘$90,000’ ” in concluding provisions. - § 415(b)(9): Pub. L. 107–16, § 611(a)(5)(B), amended par. (9) generally, substituting present provisions for provisions which provided that, in the case of any participant who was a commercial airline pilot, the rule of par. (2)(F)(i)(II) would apply, and if, as of the time of the participant’s retirement, regulations prescribed by the Federal Aviation Administration required an individual to separate from service as a commercial airline pilot after attaining any age occurring on or after age 60 and before the social security retirement age, par. (2)(C) would be applied by substituting such age for the social security retirement age, and provisions which provided that if a participant separated from service before age 60, the rules of par. (2)(F) would apply. - § 415(b)(10)(C)(i): Pub. L. 107–16, § 611(a)(5)(C), struck out “applied without regard to paragraph (2)(F)” before period at end. - § 415(b)(11): Pub. L. 107–16, § 654(a)(1), amended heading and text of par. (11) generally. Prior to amendment, text read as follows: “In the case of a governmental plan (as defined in section 414(d)), subparagraph (B) of paragraph (1) shall not apply.” - § 415(c)(1)(A): Pub. L. 107–16, § 611(b)(1), substituted “$40,000” for “$30,000”. - § 415(c)(1)(B): Pub. L. 107–16, § 632(a)(1), substituted “100 percent” for “25 percent”. - § 415(c)(2): Pub. L. 107–16, § 641(e)(10), substituted “408(d)(3), and 457(e)(16)” for “and 408(d)(3)” in concluding provisions. - § 415(c)(3)(E): Pub. L. 107–16, § 632(a)(3)(D), added subpar. (E). - § 415(c)(4): Pub. L. 107–16, § 632(a)(3)(E), struck out par. (4), which related to special election for section 403(b) contracts purchased by educational organizations, hospitals, home health service agencies, certain churches, and other organizations. - § 415(c)(7): Pub. L. 107–16, § 632(a)(3)(F), amended par. (7) generally, redesignating cls. (i) and (ii) of subpar. (B) as subpars. (A) and (B), respectively, reenacting subpar. (C) without change, striking out former subpar. (A), which directed that any contribution or addition with respect to any participant, when expressed as an annual addition, which was allocable to the application of section 403(b)(2)(D) to such participant for such year, would be treated as not exceeding the limitations of par. (1), and striking out former subpar. (B), cl. (iii), which prohibited making of election under this subpar. for any year if an election had been made under former par. (4)(A) for such year. - § 415(d)(1)(A): Pub. L. 107–16, § 611(a)(4)(A), substituted “$160,000” for “$90,000”. - § 415(d)(1)(C): Pub. L. 107–16, § 611(b)(2)(A), substituted “$40,000” for “$30,000”. - § 415(d)(3)(A): Pub. L. 107–16, § 611(a)(4)(B), in heading substituted “$160,000” for “$90,000” and in text substituted “July 1, 2001” for “October 1, 1986”. - § 415(d)(3)(D): Pub. L. 107–16, § 611(b)(2)(B), in heading substituted “$40,000” for “$30,000” and in text substituted “July 1, 2001” for “October 1, 1993”. - § 415(d)(4): Pub. L. 107–16, § 611(h), reenacted heading without change and amended text of par. (4) generally. Prior to amendment, text read as follows: “Any increase under subparagraph (A) or (C) of paragraph (1) which is not a multiple of $5,000 shall be rounded to the next lowest multiple of $5,000.” - § 415(f): Pub. L. 107–16, § 654(b)(1), added par. (3). - § 415(g): Pub. L. 107–16, § 654(b)(2), substituted “Except as provided in subsection (f)(3), the Secretary” for “The Secretary”. - § 415(k)(4): Pub. L. 107–16, § 632(b)(1), added par. (4). ## § 416: Special rules for top-heavy plans - § 416(c)(1)(C)(i): Pub. L. 107–16, § 613(e)(A), substituted “clause (ii) or (iii)” for “clause (ii)”. - § 416(c)(1)(C)(iii): Pub. L. 107–16, § 613(e)(B), added cl. (iii). - § 416(c)(2)(A): Pub. L. 107–16, § 613(b), inserted at end “Employer matching contributions (as defined in section 401(m)(4)(A)) shall be taken into account for purposes of this subparagraph (and any reduction under this sentence shall not be taken into account in determining whether section 401(k)(4)(A) applies).” - § 416(g)(3): Pub. L. 107–16, § 613(c)(1), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “For purposes of determining— - § 416(g)(4)(E): Pub. L. 107–16, § 613(c)(2), in heading substituted “last year before determination date” for “last 5 years” and in text substituted “1-year period” for “5-year period”. - § 416(g)(4)(H): Pub. L. 107–16, § 613(d), added subpar. (H). - § 416(i)(1)(A): Pub. L. 107–16, § 613(a)(1)(D), in concluding provisions, substituted “in the case of plan years beginning after December 31, 2002, the $130,000 amount in clause (i) shall be adjusted at the same time and in the same manner as under section 415(d), except that the base period shall be the calendar quarter beginning July 1, 2001, and any increase under this sentence which is not a multiple of $5,000 shall be rounded to the next lower multiple of $5,000.” for “For purposes of clause (ii), if 2 employees have the same interest in the employer, the employee having greater annual compensation from the employer shall be treated as having a larger interest.” - § 416(i)(1)(A): Pub. L. 107–16, § 613(a)(1)(A), struck out “or any of the 4 preceding plan years” after “plan year” in introductory provisions. - § 416(i)(1)(A)(i): Pub. L. 107–16, § 613(a)(1)(B), added cl. (i) and struck out former cl. (i) which read as follows: “an officer of the employer having an annual compensation greater than 50 percent of the amount in effect under section 415(b)(1)(A) for any such plan year,”. - § 416(i)(1)(A)(ii): Pub. L. 107–16, § 613(a)(1)(C), redesignated cls. (iii) and (iv) as (ii) and (iii), respectively, and struck out former cl. (ii) which read as follows: “1 of the 10 employees having annual compensation from the employer of more than the limitation in effect under section 415(c)(1)(A) and owning (or considered as owning within the meaning of section 318) the largest interests in the employer,”. - § 416(i)(1)(B)(iii): Pub. L. 107–16, § 613(a)(2), struck out “and subparagraph (A)(ii)” after “this subparagraph” in introductory provisions. ## § 457: Deferred compensation plans of State and local governments and tax-exempt organizations - § 457(a): Pub. L. 107–16, § 649(b)(1), reenacted heading without change and amended text of subsec. (a) generally. Prior to amendment, text read as follows: “In the case of a participant in an eligible deferred compensation plan, any amount of compensation deferred under the plan, and any income attributable to the amounts so deferred, shall be includible in gross income only for the taxable year in which such compensation or other income is paid or otherwise made available to the participant or other beneficiary.” - § 457(b)(2): Pub. L. 107–16, § 641(a)(1)(B), inserted “(other than rollover amounts)” after “taxable year” in introductory provisions. - § 457(b)(2)(A): Pub. L. 107–16, § 611(e)(1)(A), substituted “the applicable dollar amount” for “$7,500”. - § 457(b)(2)(B): Pub. L. 107–16, § 632(c)(1), substituted “100 percent” for “33⅓ percent”. - § 457(b)(3)(A): Pub. L. 107–16, § 611(e)(1)(B), substituted “twice the dollar amount in effect under subsection (b)(2)(A)” for “$15,000”. - § 457(c): Pub. L. 107–16, § 615(a), amended heading and text of subsec. (c) generally, substituting present provisions for provisions which stated that the maximum amount of compensation that an individual could defer under subsec. (a) during any taxable year could not exceed the applicable dollar amount, as modified by any adjustment provided under subsec. (b)(3), and provided for coordination with certain other deferrals. - § 457(c): Pub. L. 107–16, § 611(e)(1)(A), substituted “the applicable dollar amount” for “$7,500”. - § 457(c): Pub. L. 107–16, § 611(d)(3)(B), substituted “402(g)(7)(A)(iii)” for “402(g)(8)(A)(iii)” in concluding provisions. - § 457(d)(1): Pub. L. 107–16, § 641(a)(1)(C), added subpar. (C) and concluding provisions. - § 457(d)(1)(A)(ii): Pub. L. 107–16, § 646(a)(3), substituted “has a severance from employment” for “is separated from service”. - § 457(d)(2): Pub. L. 107–16, § 649(a), reenacted heading without change and amended text of par. (2) generally, substituting present provisions for provisions which stated that a plan would meet the minimum distribution requirements of this par. if plan met the requirements of section 401(a)(9), if plan met additional distribution requirements in the case of a deceased participant, and if any distribution payable over a period of more than 1 year would only be made in substantially nonincreasing amounts. - § 457(d)(3): Pub. L. 107–16, § 649(b)(2)(B), added par. (3). - § 457(e)(9): Pub. L. 107–16, § 649(b)(2)(A), in heading substituted “Benefits of tax exempt organization plans not treated as made available by reason of certain elections, etc.” for “Benefits not treated as made available by reason of certain elections, etc.” and inserted introductory provisions. - § 457(e)(9)(A)(i): Pub. L. 107–16, § 648(b), substituted “the portion of such amount which is not attributable to rollover contributions (as defined in section 411(a)(11)(D))” for “such amount”. - § 457(e)(15): Pub. L. 107–16, § 611(e)(2), amended heading and text of par. (15) generally. Prior to amendment, text read as follows: “The Secretary shall adjust the $7,500 amount specified in subsections (b)(2) and (c)(1) at the same time and in the same manner as under section 415(d), except that the base period shall be the calendar quarter ending September 30, 1994, and any increase under this paragraph which is not a multiple of $500 shall be rounded to the next lowest multiple of $500.” - § 457(e)(16): Pub. L. 107–16, § 641(a)(1)(A), added par. (16). - § 457(e)(17): Pub. L. 107–16, § 647(b), added par. (17). ## § 469: Passive activity losses and credits limited - § 469(i)(3): Pub. L. 107–16 substituted “, 221, and 222” for “and 221”. ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(c)(18)(D)(iii): Pub. L. 107–16, § 611(d)(3)(C), struck out “(other than paragraph (4) thereof)” after “section 402(g)”. ## § 505: Additional requirements for organizations described in paragraph (9) or (17) of section 501(c) - § 505(b)(7): Pub. L. 107–16 substituted “$200,000” for “$150,000” in two places. ## § 529: Qualified tuition programs - § 529: Pub. L. 107–16, § 402(a)(4)(D), struck out “State” before “tuition” in section catchline. - § 529(a): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 529(b): Pub. L. 107–16, § 402(a)(4)(C), substituted “Qualified tuition” for “Qualified State tuition” in heading. - § 529(b)(1): Pub. L. 107–16, § 402(a)(1), (4)(A), in introductory provisions, substituted “qualified tuition” for “qualified State tuition” and inserted “or by 1 or more eligible educational institutions” after “thereof”, and added concluding provisions. - § 529(b)(1)(A)(ii): Pub. L. 107–16, § 402(a)(2), inserted “in the case of a program established and maintained by a State or agency or instrumentality thereof,” before “may make”. - § 529(b)(2): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 529(b)(3), § 529(b)(4), § 529(b)(5), § 529(b)(6), § 529(b): Pub. L. 107–16, § 402(a)(3)(A), (4)(A), redesignated pars. (4) to (7) as (3) to (6), respectively, substituted “qualified tuition” for “qualified State tuition” wherever appearing, and struck out heading and text of former par. (3). Text read as follows: “A program shall not be treated as a qualified State tuition program unless it imposes a more than de minimis penalty on any refund of earnings from the account which are not— - § 529(c)(1)(A), § 529(c)(3)(A): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 529(c)(3)(B): Pub. L. 107–16, § 402(b)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “Any benefit furnished to a designated beneficiary under a qualified tuition program shall be treated as a distribution to the beneficiary.” - § 529(c)(3)(B): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 529(c)(3)(C): Pub. L. 107–16, § 402(c)(3), inserted “or programs” after “beneficiaries” in heading. - § 529(c)(3)(C)(i): Pub. L. 107–16, § 402(c)(1), substituted “transferred—” for “transferred”, added subcl. (I), and designated existing provisions “to the credit” as subcl. (II). - § 529(c)(3)(C)(i): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 529(c)(3)(C)(ii): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 529(c)(3)(C)(iii): Pub. L. 107–16, § 402(c)(2), added cl. (iii). - § 529(c)(3)(D): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 529(c)(3)(D): Pub. L. 107–16, § 402(g)(1), inserted “except to the extent provided by the Secretary,” before “all distributions”. - § 529(c)(3)(D): Pub. L. 107–16, § 402(g)(2), inserted “except to the extent provided by the Secretary,” before “the value”. - § 529(c)(6): Pub. L. 107–16, § 402(a)(3)(B), added par. (6). - § 529(d), § 529(e)(1)(A), § 529(e)(1)(C): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 529(e)(2)(D): Pub. L. 107–16, § 402(d), added subpar. (D). - § 529(e)(3)(A): Pub. L. 107–16, § 402(f), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution.” - § 529(e)(3)(B)(i): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. - § 529(e)(3)(B)(ii): Pub. L. 107–16, § 402(e), reenacted heading without change and amended text of cl. (ii) generally. Prior to amendment, text read as follows: “The amount treated as qualified higher education expenses by reason of the preceding sentence shall not exceed the minimum amount (applicable to the student) included for room and board for such period in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 1087ll, as in effect on the date of the enactment of this paragraph) for the eligible educational institution for such period.” - § 529(e)(4): Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”. ## § 530: Coverdell education savings accounts - § 530(b)(1): Pub. L. 107–16, § 401(d), inserted concluding provisions. - § 530(b)(1): Pub. L. 107–16, § 401(c)(3)(A), struck out “higher” before “education expenses” in introductory provisions. - § 530(b)(1)(A)(iii): Pub. L. 107–16, § 401(a)(1), substituted “$2,000” for “$500”. - § 530(b)(2): Pub. L. 107–16, § 401(c)(1), amended heading and text of par. (2) generally, substituting present provisions for provisions which defined “qualified higher education expenses” as having the meaning given such term by section 529(e)(3), reduced as provided in section 25A(g)(2), and including amounts paid or incurred to purchase tuition credits or certificates, or to make contributions to an account, under a qualified State tuition program for the benefit of the beneficiary of the account. - § 530(b)(2)(B): Pub. L. 107–16, § 402(a)(4)(A), (C), in heading, substituted “Qualified tuition” for “Qualified State tuition” and in text, substituted “qualified tuition” for “qualified State tuition”. - § 530(b)(4): Pub. L. 107–16, § 401(c)(2), added par. (4). - § 530(b): Pub. L. 107–16, § 401(f)(1), added par. (5). - § 530(c)(1): Pub. L. 107–16, § 401(e), substituted “In the case of a contributor who is an individual, the maximum amount the contributor” for “The maximum amount which a contributor” in introductory provisions. - § 530(c)(1)(A)(ii): Pub. L. 107–16, § 401(b)(1), substituted “$190,000” for “$150,000”. - § 530(c)(1)(B): Pub. L. 107–16, § 401(b)(2), substituted “$30,000” for “$10,000”. - § 530(d)(2): Pub. L. 107–16, § 401(c)(3)(B), struck out “higher” before “education” in heading. - § 530(d)(2)(A), § 530(d)(2)(B): Pub. L. 107–16, § 401(c)(3)(A), struck out “higher” before “education”. - § 530(d)(2)(C): Pub. L. 107–16, § 401(g)(1), amended heading and text of subpar. (C) generally. Prior to amendment, text read as follows: “A taxpayer may elect to waive the application of this paragraph for any taxable year.” - § 530(d)(2)(D): Pub. L. 107–16, § 401(g)(2)(C), in heading, substituted “deduction, credit, or exclusion” for “credit or deduction” and in text, substituted “, credit, or exclusion” for “or credit”. - § 530(d)(4)(C): Pub. L. 107–16, § 401(f)(2)(B), substituted “certain date” for “due date of return” in heading. - § 530(d)(4)(C)(i): Pub. L. 107–16, § 401(f)(2)(A), added cl. (i) and struck out former cl. (i) which read as follows: “such distribution is made on or before the day prescribed by law (including extensions of time) for filing the beneficiary’s return of tax for the taxable year or, if the beneficiary is not required to file such a return, the 15th day of the 4th month of the taxable year following the taxable year; and”. ## § 531: Imposition of accumulated earnings tax - § 531: Pub. L. 107–16 substituted “equal to the product of the highest rate of tax under section 1(c) and the accumulated taxable income.” for “equal to 39.6 percent of the accumulated taxable income.” ## § 541: Imposition of personal holding company tax - § 541: Pub. L. 107–16 substituted “equal to the product of the highest rate of tax under section 1(c) and the undistributed personal holding company income.” for “equal to 39.6 percent of the undistributed personal holding company income.” ## § 646: Tax treatment of electing Alaska Native Settlement Trusts - Enacted 26 U.S.C. § 646. ## § 664: Charitable remainder trusts - § 664(g)(3)(E): Pub. L. 107–16, § 632(a)(3)(H)(i), substituted “applicable limitation under paragraph (7)” for “limitations under section 415(c)”. - § 664(g)(7): Pub. L. 107–16, § 632(a)(3)(H)(ii), added par. (7). ## § 684: Recognition of gain on certain transfers to certain foreign trusts and estates - § 684: Pub. L. 107–16, § 542(e)(1)(A)–(C), amended section by inserting “and nonresident aliens” after “estates” in section catchline and “or to a nonresident alien” after “or trust” in introductory provisions of subsec. (a) and amending subsec. (b) generally. Prior to amendment, text of subsec. (b) read as follows: “Subsection (a) shall not apply to a transfer to a trust by a United States person to the extent that any person is treated as the owner of such trust under section 671.” ## § 861: Income from sources within the United States - § 861(a)(3): Pub. L. 107–16 struck out “except for purposes of sections 79 and 105 and subchapter D,” after “In addition,” in concluding provisions. ## § 904: Limitation on credit - § 904(h): Pub. L. 107–16, § 618(b)(2)(D), as amended by Pub. L. 107–147, § 417(23)(B), substituted “, 24, and 25B” for “and 24”. - § 904(h): Pub. L. 107–16, § 202(f)(2)(C), substituted “sections 23 and 24” for “section 24”. - § 904(h): Pub. L. 107–16, § 201(b)(2)(G), inserted “(other than section 24)” after “chapter”. ## § 1014: Basis of property acquired from a decedent - § 1014(f): Pub. L. 107–16, § 541, added subsec. (f). ## § 1016: Adjustments to basis - § 1016(a)(28): Pub. L. 107–16 added par. (28). ## § 1040: Transfer of certain farm, etc., real property - § 1040: Pub. L. 107–16, § 542(d)(1), amended section generally. Prior to amendment, text read as follows: ## § 1221: Capital asset defined - § 1221(a)(3)(C): Pub. L. 107–16, § 542(e)(2)(A), inserted “(other than by reason of section 1022)” after “is determined”. ## § 1291: Interest on tax deferral - § 1291(e): Pub. L. 107–16, § 542(e)(5)(B), struck out “(e),” after “subsections (c), (d),” and substituted period at end for “; except that— ## § 1296: Election of mark to market for marketable stock - § 1296(i): Pub. L. 107–16, § 542(e)(5)(C), struck out subsec. (i). Text read as follows: “In the case of stock of a passive foreign investment company which is acquired by bequest, devise, or inheritance (or by the decedent’s estate) and with respect to which an election under this section was in effect as of the date of the decedent’s death, notwithstanding section 1014, the basis of such stock in the hands of the person so acquiring it shall be the adjusted basis of such stock in the hands of the decedent immediately before his death (or, if lesser, the basis which would have been determined under section 1014 without regard to this subsection).” ## § 2001: Imposition and rate of tax - § 2001(c): Pub. L. 107–16, § 511(a), substituted in table provisions that if the amount on which the tax is computed is over $2,500,000, then the tentative tax is $1,025,800, plus 50% of the excess over $2,500,000 for provisions that if the amount on which the tax is computed is over $2,500,000 but not over $3,000,000, then the tentative tax is $1,025,800, plus 53% of the excess over $2,500,000, and if the amount on which the tax is computed is over $3,000,000, then the tentative tax is $1,290,800, plus 55% of the excess over $3,000,000. - § 2001(c): Pub. L. 107–16, § 511(c), added par. (2). - § 2001(c): Pub. L. 107–16, § 511(b), struck out heading and text of par. (2). Text read as follows: “The tentative tax determined under paragraph (1) shall be increased by an amount equal to 5 percent of so much of the amount (with respect to which the tentative tax is to be computed) as exceeds $10,000,000 but does not exceed the amount at which the average tax rate under this section is 55 percent.” ## § 2010: Unified credit against estate tax - § 2010(c): Pub. L. 107–16, in table, substituted provision that in the case of estates of decedents dying during the years 2002 and 2003, the years 2004 and 2005, the years 2006, 2007, and 2008, and the year 2009, the applicable exclusion amount is $1,000,000, $1,500,000, $2,000,000, and $3,500,000, respectively, for provision that in the case of decedents dying, and gifts made, during the year 1998, the year 1999, the years 2000 and 2001, the years 2002 and 2003, the year 2004, the year 2005, and the year 2006 or thereafter, the applicable exclusion amount is $625,000, $650,000, $675,000, $700,000, $850,000, $950,000, and $1,000,000, respectively. ## § 2012: Credit for gift tax - § 2012(a): Pub. L. 107–16 struck out “the credit for State death taxes provided by section 2011 and” before “the unified credit”. ## § 2013: Credit for tax on prior transfers - § 2013(c)(1)(A): Pub. L. 107–16 struck out “2011,” after “sections 2010,”. ## § 2014: Credit for foreign death taxes - § 2014(b)(2): Pub. L. 107–16 struck out “, 2011,” after “sections 2010” in introductory provisions. ## § 2015: Credit for death taxes on remainders - § 2015: Pub. L. 107–16 struck out “2011 or” before “2014”. ## § 2016: Recovery of taxes claimed as credit - § 2016: Pub. L. 107–16 struck out “2011 or” before “2014 is recovered”. ## § 2031: Definition of gross estate - § 2031(c)(2): Pub. L. 107–16, § 551(b), inserted at end “The values taken into account under the preceding sentence shall be such values as of the date of the contribution referred to in paragraph (8)(B).” - § 2031(c)(8)(A)(i): Pub. L. 107–16, § 551(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “which is located— ## § 2053: Expenses, indebtedness, and taxes - § 2053(d): Pub. L. 107–16 substituted “Certain foreign death taxes” for “Certain State and foreign death taxes” in heading and amended text generally, revising and restating provisions of pars. (1) to (3) so as to eliminate provisions relating to deduction for State death taxes. ## § 2056A: Qualified domestic trust - § 2056A(b)(10)(A): Pub. L. 107–16 struck out “2011,” before “2014,” and inserted “2058,” after “2056,”. ## § 2058: State death taxes - Enacted 26 U.S.C. § 2058. ## § 2102: Credits against tax - § 2102(a): Pub. L. 107–16, § 532(c)(7)(A), reenacted heading without change and amended text of subsec. (a) generally. Prior to amendment, text read as follows: “The tax imposed by section 2101 shall be credited with the amounts determined in accordance with sections 2011 to 2013, inclusive (relating to State death taxes, gift tax, and tax on prior transfers), subject to the special limitation provided in subsection (b).” - § 2102(b): Pub. L. 107–16, § 532(c)(7)(B), redesignated subsec. (c) as (b) and struck out heading and text of former subsec. (b). Text read as follows: “The maximum credit allowed under section 2011 against the tax imposed by section 2101 for State death taxes paid shall be an amount which bears the same ratio to the credit computed as provided in section 2011(b) as the value of the property, as determined for purposes of this chapter, upon which State death taxes were paid and which is included in the gross estate under section 2103 bears to the value of the total gross estate under section 2103. For purposes of this subsection, the term ‘State death taxes’ means the taxes described in section 2011(a).” - § 2102(b)(5): Pub. L. 107–16, § 532(c)(7)(C), substituted “2012 and 2013” for “2011 to 2013, inclusive,”. - § 2102: Pub. L. 107–16, § 532(c)(7)(B), redesignated subsec. (c) as (b). ## § 2106: Taxable estate - § 2106(a)(4): Pub. L. 107–16 added par. (4). ## § 2107: Expatriation to avoid tax - § 2107(c)(3): Pub. L. 107–16 substituted “2012 and 2013” for “2011 to 2013, inclusive,”. ## § 2201: Combat zone-related deaths of members of the Armed Forces, deaths of astronauts, and deaths of victims of certain terrorist attacks - § 2201: Pub. L. 107–16, § 532(c)(9)(B), which added concluding provisions which read as follows: “For purposes of this section, the additional estate tax is the difference between the tax imposed by section 2001 or 2101 and the amount equal to 125 percent of the maximum credit provided by section 2011(b), as in effect before its repeal by the Economic Growth and Tax Relief Reconciliation Act of 2001.”, was repealed by Pub. L. 107–134, § 103(b)(3). See Effective Date of 2002 Amendment note below. - § 2201: Pub. L. 107–16, § 532(c)(9)(A), which struck out “as defined in section 2011(d)” after “The additional estate tax” in introductory provisions, was repealed by Pub. L. 107–134, § 103(b)(3). See Effective Date of 2002 Amendment note below. ## § 2502: Rate of tax - § 2502(a): Pub. L. 107–16, § 511(d), amended subsec. (a) generally. Prior to amendment, text read as follows: “The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of— ## § 2505: Unified credit against gift tax - § 2505(a)(1): Pub. L. 107–16, § 521(b)(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “the applicable credit amount in effect under section 2010(c) for such calendar year (determined as if the applicable exclusion amount were $1,000,000), reduced by”. - § 2505(a)(1): Pub. L. 107–16, § 521(b)(1), inserted “(determined as if the applicable exclusion amount were $1,000,000)” after “calendar year”. ## § 2511: Transfers in general - § 2511: Pub. L. 107–16 added subsec. (c). ## § 2631: GST exemption - § 2631(a): Pub. L. 107–16, § 521(c)(1), substituted “amount” for “of $1,000,000”. - § 2631(c): Pub. L. 107–16, § 521(c)(2), amended heading and text of subsec. (c) generally, substituting provisions relating to the GST exemption amount for any calendar year for provisions which related to inflation adjustment of the $1,000,000 amount contained in subsec. (a) in the case of any calendar year after 1998 and applicability of any increase for any such calendar year. ## § 2632: Special rules for allocation of GST exemption - § 2632(b)(2): Pub. L. 107–16, § 561(b), substituted “or subsection (c)(1)” for “with respect to a prior direct skip”. - § 2632(c), § 2632(d), § 2632(e): Pub. L. 107–16, § 561(a), added subsecs. (c) and (d) and redesignated former subsec. (c) as (e). ## § 2642: Inclusion ratio - § 2642(a)(3): Pub. L. 107–16, § 562(a), added par. (3). - § 2642(b)(1): Pub. L. 107–16, § 563(a), reenacted heading without change and amended text of par. (1) generally. Prior to amendment, text read as follows: “If the allocation of the GST exemption to any property is made on a gift tax return filed on or before the date prescribed by section 6075(b) or is deemed to be made under section 2632(b)(1)— - § 2642(b)(2)(A): Pub. L. 107–16, § 563(b), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “If property is transferred as a result of the death of the transferor, the value of such property for purposes of subsection (a) shall be its value for purposes of chapter 11; except that, if the requirements prescribed by the Secretary respecting allocation of post-death changes in value are not met, the value of such property shall be determined as of the time of the distribution concerned.” - § 2642(g): Pub. L. 107–16, § 564(a), added subsec. (g). ## § 3401: Definitions - § 3401(a)(12)(E): Pub. L. 107–16 added subpar. (E). ## § 3402: Income tax collected at source - § 3402(p)(1)(B): Pub. L. 107–16, § 101(c)(6), substituted “7 percent, any percentage applicable to any of the 3 lowest income brackets in the table under section 1(c),” for “7, 15, 28, or 31 percent”. - § 3402(p)(2): Pub. L. 107–16, § 101(c)(7), substituted “10 percent” for “15 percent”. - § 3402(q)(1): Pub. L. 107–16, § 101(c)(8), substituted “equal to the product of the third lowest rate of tax applicable under section 1(c) and such payment” for “equal to 28 percent of such payment”. - § 3402(r)(3): Pub. L. 107–16, § 101(c)(9), substituted “the fourth lowest rate of tax applicable under section 1(c)” for “31 percent” in introductory provisions. ## § 3405: Special rules for pensions, annuities, and certain other deferred income - § 3405(c)(3): Pub. L. 107–16, § 641(a)(1)(D)(ii), reenacted heading without change and amended text of par. (3) generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘eligible rollover distribution’ has the meaning given such term by section 402(f)(2)(A) (or in the case of an annuity contract under section 403(b), a distribution from such contract described in section 402(f)(2)(A)).” - § 3405(d)(2)(B)(iv): Pub. L. 107–16, § 641(a)(1)(D)(iii), added cl. (iv). ## § 3406: Backup withholding - § 3406(a)(1): Pub. L. 107–16 substituted “equal to the product of the fourth lowest rate of tax applicable under section 1(c) and such payment” for “equal to 31 percent of such payment” in concluding provisions. ## § 4947: Application of taxes to certain nonexempt trusts - § 4947(a)(2)(A): Pub. L. 107–16, § 542(e)(4), inserted “642(c),” after “170(f)(2)(B),”. ## § 4972: Tax on nondeductible contributions to qualified employer plans - § 4972(c)(6): Pub. L. 107–16, § 652(b)(4), substituted “Subparagraph (B)” for “Subparagraph (C)” in concluding provisions. - § 4972(c)(6): Pub. L. 107–16, § 652(b)(3), as amended by Pub. L. 108–311, § 408(b)(9), substituted “subparagraph (A)” for “subparagraph (B)” in two places in concluding provisions. - § 4972(c)(6): Pub. L. 107–16, § 652(b)(2), in concluding provisions, struck out first sentence which read as follows: “If 1 or more defined benefit plans were taken into account in determining the amount allowable as a deduction under section 404 for contributions to any defined contribution plan, subparagraph (B) shall apply only if such defined benefit plans are described in section 404(a)(1)(D).” - § 4972(c)(6): Pub. L. 107–16, § 637(b), in concluding provisions, inserted at end “Subparagraph (C) shall not apply to contributions made on behalf of the employer or a member of the employer’s family (as defined in section 447(e)(1)).” - § 4972(c)(6)(A): Pub. L. 107–16, § 652(b)(1), redesignated subpar. (B) as (A) and struck out former subpar. (A) which read as follows: “contributions that would be deductible under section 404(a)(1)(D) if the plan had more than 100 participants if— - § 4972(c)(6)(A): Pub. L. 107–16, § 637(a), struck out “and” at end. - § 4972(c)(6)(B): Pub. L. 107–16, § 652(b)(1), redesignated subpar. (C) as (B). Former subpar. (B) redesignated (A). - § 4972(c)(6)(B): Pub. L. 107–16, § 637(a), substituted “, or” for period at end. - § 4972(c)(6)(B): Pub. L. 107–16, § 616(b)(2)(B), substituted “(within the meaning of section 404(a) and as adjusted under section 404(a)(12))” for “(within the meaning of section 404(a))”. - § 4972(c)(6): Pub. L. 107–16, § 652(b)(1), redesignated subpar. (C) as (B). - § 4972(c)(6): Pub. L. 107–16, § 637(a), added subpar. (C). - § 4972(c)(7): Pub. L. 107–16, § 653(a), added par. (7). ## § 4973: Tax on excess contributions to certain tax-favored accounts and annuities - § 4973(b)(1)(A): Pub. L. 107–16, § 641(e)(11), substituted “408(d)(3), or 457(e)(16)” for “or 408(d)(3)”. - § 4973(e): Pub. L. 107–16, § 402(a)(4)(A), which directed the substitution of “qualified tuition” for “qualified State tuition” wherever appearing in subsec. (e), could not be executed because the term “qualified State tuition” did not appear subsequent to amendment by section 401(g)(2)(D) of Pub. L. 107–16, which struck out par. (1)(B). See below. - § 4973(e)(1)(A): Pub. L. 107–16, § 401(a)(2), (g)(2)(D), substituted “$2,000” for “$500” and inserted “and” at end. - § 4973(e)(1)(B), § 4973(e)(1): Pub. L. 107–16, § 401(g)(2)(D), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “if any amount is contributed (other than a contribution described in section 530(b)(2)(B)) during such year to a qualified State tuition program for the benefit of such beneficiary, any amount contributed to such accounts for such taxable year; and”. ## § 4975: Tax on prohibited transactions - § 4975(e)(7): Pub. L. 107–16, § 656(b), inserted “, section 409(p),” after “409(n)” in concluding provisions. - § 4975(f)(6)(B)(iii): Pub. L. 107–16, § 612(a), added cl. (iii). ## § 4979A: Tax on certain prohibited allocations of qualified securities - § 4979A(a): Pub. L. 107–16, § 656(c)(1), added pars. (3) and (4) and, in concluding provisions, substituted “there is hereby imposed a tax on such allocation or ownership equal to 50 percent of the amount involved.” for “there is hereby imposed a tax on such allocation equal to 50 percent of the amount involved.” - § 4979A(c): Pub. L. 107–16, § 656(c)(2), amended heading and text of subsec. (c) generally. Prior to amendment, text read as follows: “The tax imposed by this section shall be paid by— - § 4979A(e): Pub. L. 107–16, § 656(c)(3), amended heading and text of subsec. (e) generally. Prior to amendment, text read as follows: “Terms used in this section have the same respective meaning as when used in section 4978.” ## § 4980F: Failure of applicable plans reducing benefit accruals to satisfy notice requirements - Enacted 26 U.S.C. § 4980F. ## § 6018: Estate tax returns - § 6018: Pub. L. 107–16, § 542(b)(1), amended section generally, substituting provisions related to tax returns for certain large transfers at death for provisions related to estate tax returns. ## § 6019: Gift tax returns - § 6019: Pub. L. 107–16, § 542(b)(2), designated existing provisions as subsec. (a), inserted subsec. (a) heading “In general”, and added subsec. (b), which related to statements to be furnished to certain persons. ## § 6039H: Information with respect to Alaska Native Settlement Trusts and Native Corporations - Enacted 26 U.S.C. § 6039H. ## § 6047: Information relating to certain trusts and annuity plans - § 6047(f), § 6047(g): Pub. L. 107–16 added subsec. (f) and redesignated former subsec. (f) as (g). ## § 6050S: Returns relating to higher education tuition and related expenses - § 6050S(e): Pub. L. 107–16 substituted “section 221(d)(1)” for “section 221(e)(1)”. ## § 6051: Receipts for employees - § 6051(a)(8): Pub. L. 107–16 inserted “, including the amount of designated Roth contributions (as defined in section 402A)” before comma at end. ## § 6075: Time for filing estate and gift tax returns - § 6075(a): Pub. L. 107–16, § 542(b)(3)(A), amended subsec. (a) generally. Prior to amendment, text read as follows: “Returns made under section 6018(a) (relating to estate taxes) shall be filed within 9 months after the date of the decedent’s death.” - § 6075(b)(3): Pub. L. 107–16, § 542(b)(3)(B), substituted “section 6018 return” for “estate tax return” in heading and “(relating to returns relating to large transfers at death)” for “(relating to estate tax returns)” in text. ## § 6166: Extension of time for payment of estate tax where estate consists largely of interest in closely held business - § 6166(b)(1)(B)(ii): Pub. L. 107–16, § 571(a), substituted “45” for “15”. - § 6166(b)(8)(B): Pub. L. 107–16, § 573(a), reenacted heading without change and amended text of subpar. (B) generally. Prior to amendment, text read as follows: “No stock shall be taken into account for purposes of applying this paragraph unless it is non-readily-tradable stock (within the meaning of paragraph (7)(B)).” - § 6166(b)(9)(B)(iii)(I): Pub. L. 107–16, § 571(a), substituted “45” for “15”. - § 6166(b)(10): Pub. L. 107–16, § 572(a), added par. (10). ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(g)(2)(M): Pub. L. 107–16 added subpar. (M). ## § 6511: Limitations on credit or refund - § 6511(i)(2): Pub. L. 107–16 substituted “2014(b)” for “2011(c), 2014(b),”. ## § 6612: Cross references - § 6612(c): Pub. L. 107–16 struck out “section 2011(c) (relating to refunds due to credit for State taxes),” after “see”. ## § 6693: Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions - § 6693(a)(2)(C): Pub. L. 107–16 substituted “qualified tuition” for “qualified State tuition”. ## § 7508A: Authority to postpone certain deadlines by reason of Federally declared disaster, significant fire, or terroristic or military actions - § 7508A(a): Pub. L. 107–16 substituted “120 days” for “90 days” in introductory provisions. ## § 7701: Definitions - § 7701(a)(47): Pub. L. 107–16, § 542(e)(3), added par. (47) which defined the term “executor”.