Par. 4. Section 1.403(b)-3, as proposed to be revised on November 16, 2004 (69 FR 67086), is further proposed to be amended by adding text to paragraph (b)(4)(ii) to read as follows:
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(ii) Exceptions. The exclusion from gross income provided by section 403(b) applies to contributions made for former employees with respect to compensation described in § 1.415(c)-2(e)(3)(ii) (relating to certain compensation paid within 2 1/2 months following severance from employment), compensation described in § 1.415(c)-2(g)(4) (relating to compensation paid to participants who are permanently and totally disabled), and compensation relating to qualified military service under section 414(u).
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