110 STAT. 1792 PUBLIC LAW 104-188—AUG. 20, 1996 "(iv) EXCEPTION FOR GOVERNMENTAL AND CHURCH PLANS. —Clauses (ii) and (iii) shall not apply in the case of a governmental plan or church plan. For purposes of this clause, the term 'church plan' means a plan maintained by a church for church employees, and the term 'church' means any church (as defined in section 3121(w)(3)(A)) or qualified church-controlled organization (as defined in section 3121(w)(3)(B)).". 26 USC 401 note. (b) EFFECTIVE DATE. —The amendment made by subsection (a) shall apply to years beginning after December 31, 1996. CHAPTER 2—INCREASED ACCESS TO RETIREMENT PLANS Subchapter A—Simple Savings Plans SEC. 1421. ESTABLISHMENT OF SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES OF SMALL EMPLOYERS. (a) IN GENERAL. —Section 408 (relating to individual retirement accounts) is amended by redesignating subsection (p) as subsection (q) and by inserting after subsection (o) the following new subsection: "(p) SIMPLE RETIREMENT ACCOUNTS.— "(1) IN GENERAL.— For purposes of this title, the term 'simple retirement account' means an individual retirement plan (as defined in section 7701(a)(37))— "(A) with respect to which the requirements of paragraphs (3), (4), and (5) are met; and "(B) with respect to which the only contributions allowed are contributions under a qualified salary reduction arrangement. " (2) QUALIFIED SALARY REDUCTION ARRANGEMENT. — "(A) IN GENERAL.—For purposes of this subsection, the term 'qualified salary reduction arrangement' means a written arrangement of an eligible employer under which— "(i) an employee eligible to participate in the arrangement may elect to have the employer make payments— "(I) as elective employer contributions to a simple retirement account on behalf of the employee, or "(II) to the employee directly in cash, "(ii) the amount which an employee may elect under clause (i) for any year is required to be expressed as a percentage of compensation and may not exceed a total of $6,000 for any year, "(iii) the employer is required to make a matching contribution to the simple retirement account for any year in an amount equal to so much of the amount the employee elects under clause (i)(I) as does not exceed the applicable percentage of compensation for the year, and "(iv) no contributions may be made other than contributions described in clause (i) or (iii). " (B) EMPLOYER MAY ELECT 2-PERCENT NONELECTIVE CONTRIBUTION. —
�
