103 STAT. 2476 PUBLIC LAW 101-239—DEC. 19, 1989 tion" as defined in section 1(h) of the Railroad Retirement "' Act of 1974 includes any remuneration which is included in 5^ the term "compensation" as defined in section 3231(e)(l) of the Internal Revenue Code of 1986 by reason of the amend- ment made by subsection (b). (3) SPECIAL RULE FOR CERTAIN PAYMENTS.— For purposes of applying the amendment made by subsection (b) to remunera- tion paid after December 31, 1989, which would have been taken into account before January 1, 1990, if such amendments had applied to periods before January 1, 1990, such remuneration \ shall be taken into account when paid (or, at the election of the payor, at the time which would be appropriate if such amend- ments had applied). (4) EXCEPTION FOR CERTAIN 40i(k) CONTRIBUTIONS. —The amendment made by subsection (b) shall not apply to employer contributions made during 1990 and attributable to services performed during 1989 under a qualified cash or deferred arrangement (as defined in section 401(k) of the Internal Reve- nue Code of 1986) if, under the terms of the arrangement as in effect on June 15, 1989— (A) the employee makes an election with respect to such contributions before January 1, 1990, and (B) the employer identifies the amount of such contribu- tion before January 1, 1990. (5) SPECIAL RULE WITH RESPECT TO NONQUALIFIED DEFERRED COMPENSATION PLANS. — In the case of an agreement in existence on June 15, 1989, between a nonqualified deferred compensation plan (as defined in section 3121(v)(2)(C) of such Code) and an individual, the amendment made by subsection (b) shall apply with respect to services performed by the individual after December 31, 1989. The preceding sentence shall not apply in the case of a plan to which section 457(a) of such Code applies. SEC. 10207. TREATMENT OF ROWAN DECISION UNDER RAILROAD RETIRE- MENT TAXES. (a) EXCLUSION OP MEALS AND LODGING. — Subsection (e) of section 3231 of the Internal Revenue Code of 1986 is further amended by adding at the end the following new paragraph: "(10) MEALS AND LODGING. —The term 'compensation' shall not include the value of meals or lodging furnished by or on behalf of the employer if at the time of such furnishing it is reasonable to believe that the employee will be able to exclude such items from income under section 119.". (b) INCOME TAX WITHHOLDING REGULATIONS NOT TO APPLY. — Paragraph (1) of section 3231(e) of such diode is amended by adding at the end the following new sentence: "Nothing in the regulations prescribed for purposes of chapter 24 (relating to wage withholding) which provides an exclusion irom 'wages' as used in such chapter shall be construed to require a similar exclusion from 'compensa- tion' in regulations prescribed for purposes of this chapter.". 26 USC 3231 (c) EFFECTIVE DATE. — The amendments made by this section shall
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apply to remuneration paid after December 31, 1989. SEC. 10208. INCLUSION OF CERTAIN DEFERRED COMPENSATION IN DETERMINATION OF WAGE-BASED ADJUSTMENTS. (a) IN GENERAL.—Section 209 of the Social Security Act (42 U.S.C. 409) is amended by adding at the end the following new subsection:
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