PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 1089 "(iii) ADMINISTRATIVE REQUIREMENTS.— "(I) IN GENERAL. —Rules similar to the rules Applicability. of subparagraphs (B) and (C) of section 408(p)(5) shall apply for purposes of this subparagraph. "(II) NOTICE OF ELECTION PERIOD. — The requirements of this subparagraph shall not be treated as met with respect to any year unless the employer notifies each employee eligible to participate, within a reasonable period of time before the 60th day before the beginning of such year (and, for the first year the employee is so eligible, the 60th day before the first day such employee is so eligible), of the rules similar to the rules of section 408(p)(5)(C) which apply by reason of subclause (I).". (3) AMENDMENT RELATED TO SECTION 1433.—The heading of paragraph (11) of section 401(m) is amended by striking "A L T E RNATIVE" and inserting "ADDITIONAL ALTERNATIVE". (4) CLARIFICATION OF SECTION 1450. — 26 USC 403 note. (A) Section 403(b)(ll) of the Internal Revenue Code of 1986 shall not apply with respect to a distribution from a contract described in section 1450(b)(1) of such Act to the extent that such distribution is not includible in income by reason of— (i) in the case of distributions before January 1, 1998, section 403(b)(8) or (b)(10) of such Code (determined after the application of section 1450(b)(2) of such Act), and (ii) in the case of distributions on and after such date, such section 403(b)(1). (B) This paragraph shall apply as if included in section Applicability. 1450 of the Small Business Job Protection Act of 1996. (5) AMENDMENT RELATED TO SECTION 1451. —Clause (ii) of section 205(c)(8)(A) of the Employee Retirement Income Security Act of 1974 is amended by striking "Secretary" and insert- 29 USC 1055. ing "Secretary of the Treasury". (6) AMENDMENTS RELATED TO SECTION I46I. — (A) Section 414(e)(5)(A) is amended to read as follows: "(A) CERTAIN MINISTERS MAY PARTICIPATE.—For purposes of this part— "(i) IN GENERAL.—^A duly ordained, commissioned, or licensed minister of a church is described in paragraph (3)(B) if, in connection with the exercise of their ministry, the minister— "(I) is a self-employed individual (within the meaning of section 401(c)(1)(B), or "(II) is employed by an organization other than an organization which is described in section 501(c)(3) and with respect to which the minister shares common religious bonds. " (ii) TREATMENT AS EMPLOYER AND EMPLOYEE.— For purposes of sections 403(b)(1)(A) and 404(a)(10), a minister described in clause (i)(I) shall be treated as employed by the minister's own employer which is an organization described in section 501(c)(3) and exempt from tax under section 501(a).".
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