PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3467
(11) Section 410(b)(4) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: "(C) REQUIREMENTS NOT TREATED AS BEING MET BEFORE
ENTRY DATE.—An employee shall not be treated as meeting the age and service requirements described in this paragraph until the first date on which, under the plan, any employee with the same age and service would be eligible to commence participation in the plan." (i) AMENDMENTS RELATED TO SECTION 1114 OF THE REFORM ACT.—
(1) Paragraph (1) of section 414(q) of the 1986 Code (defining highly compensated employee) is amended by adding at the end thereof the following new flush sentence: "The Secretary shall adjust the $75,000 and $50,000 amounts under this paragraph at the same time and in the same manner as under section 415(d)." (2) Section 414(q)(6) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: "(C) RULES TO APPLY TO OTHER PROVISIONS.—
"(i) IN GENERAL.—Except as provided in regulations and in clause (ii), the rules of subparagraph (A) shall be applied in determining the compensation of (or any contributions or benefits on behalf of) any employee for purposes of any section with respect to which a highly compensated employee is defined by reference to this subsection. "(ii)
EXCEPTION
FOR
DETERMINING
INTEGRATION
LEVELS.—Clause (i) shall not apply in determining the portion of the compensation of a participant which is under the integration level for purposes of section 401(1)." (3)(A) Section 414(q)(8) of the 1986 Code (relating to excluded employees) is amended— (i) by inserting "and" at the end of subparagraph (D), by striking ", and" at the end of subparagraph (E) and inserting in lieu thereof a period, and by striking out subparagraph (F), and (ii) by striking out "The" in the last sentence thereof and inserting in lieu thereof "Except as provided by the Secretary, the". (B) Section 414(q) of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(11) SPECIAL RULE FOR NONRESIDENT AUENS.—For purposes of
this subsection and subsection (r), employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)) shall not be treated as emolovees " (4)(A) Paragraph (8) of section 414(q) of the 1986 Code is amended by inserting "or the number of officers taken into account under paragraph (5)" after "paragraph (4)". (B) Section 416(i)(l)(A) of the 1986 Code is amended by adding at the end thereof the following new sentence: "For purposes of determining the number of officers taken into account under clause (i), employees described in section 414(q)(8) shall be excluded."
�
