110 STAT. 1808 PUBLIC LAW 104-188—AUG. 20, 1996 CHAPTER 4—MISCELLANEOUS PROVISIONS SEC. 1441. PLANS COVERING SELF-EMPLOYED INDIVIDUALS. (a) AGGREGATION RULES.—Section 401(d) (relating to additional requirements for qualification of trusts and plans benefiting owneremployees) is amended to read as follows: "(d) CONTRIBUTION LIMIT ON OWNER-EMPLOYEES. —^A trust forming part of a pension or profit-sharing plan which provides contributions or benefits for employees some or all of whom are owner-employees shall constitute a qualified trust under this section only if, in addition to meeting the requirements of subsection (a), the plan provides that contributions on behalf of any owneremployee may be made only with respect to the earned income of such owner-employee which is derived from the trade or business with respect to which such plan is established.". 26 USC 401 note. (b) EFFECTIVE DATE. —The amendments made by this section shall apply to years beginning after December 31, 1996. SEC. 1442. ELIMINATION OF SPECIAL VESTING RULE FOR MULTIEM- PLOYER PLANS. (a) AMENDMENTS TO 1986 CODE.— Paragraph (2) of section 411(a) (relating to minimum vesting standards) is amended— (1) by striking "subparagraph (A), (B), or (C)" and inserting "subparagraph (A) or (B)"; and (2) by striking subparagraph (C). (b) AMENDMENTS TO ERISA.— Paragraph (2) of section 203(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1053(a)) is amended— (1) by striking "subparagraph (A), (B), or (C)" and inserting "subparagraph (A) or (B)"; and (2) by striking subparagraph (C). 26 USC 411 note. (c) EFFECTIVE DATE. —The amendments made by this section shall apply to plan years beginning on or after the earlier of— (1) the later of— (A) January 1, 1997, or (B) the date on which the last of the collective bargaining agreements pursuant to which the plan is maintained terminates (determined without regard to any extension thereof after the date of the enactment of this Act), or (2) January 1, 1999. Such amendments shall not apply to any individual who does not have more than 1 hour of service under the plan on or after the 1st day of the 1st plan year to which such amendments apply. SEC. 1443. DISTRIBUTIONS UNDER RURAL COOPERATIVE PLANS. (a) DISTRIBUTIONS FOR HARDSHIP OR AFTER A CERTAIN AGE. — Section 401(k)(7) is amended by adding at the end the following new subparagraph: "(C) SPECIAL RULE FOR CERTAIN DISTRIBUTIONS.—^A rural cooperative plan which includes a qualified cash or deferred arrangement shall not be treated as violating the requirements of section 401(a) or of paragraph (2) merely by reason of a hardship distribution or a distribution to a participant after attainment of age 59 V2. For purposes of this section, the term 'hardship distribution' means a distribution described in paragraph (2)(B)(i)(IV) (without
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