PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 95 amount shall be rounded to the next lower multiple of $500.". (b) CONFORMING AMENDMENTS. — (1) Section 408(a)(1) is amended by striking "in excess 26 USC 408. of $2,000 on behalf of any individual" and inserting "on behalf of any individual in excess of the amount in effect for such taxable year under section 219(b)(1)(A)". (2) Section 408(b)(2)(B) is amended by striking "$2,000" and inserting "the dollar amount in effect under section • 219(b)(1)(A)". (3) Section 408(b) is amended by striking "$2,000" in the matter following paragraph (4) and inserting "the dollar amount in effect under section 219(b)(1)(A)". (4) Section 408( j) is amended by striking "$2,000". (5) Section 408(p)(8) is amended by striking "$2,000 " and inserting "the dollar amount in effect under section 219(b)(1)(A)". (c) EFFECTIVE DATE. —The amendments made by this section Applicability. shall apply to taxable years beginning after December 31, 2001. 26 USC 219 note. SEC. 602. DEEMED IRAs UNDER EMPLOYER PLANS. (a) IN GENERAL.—Section 408 (relating to individual retirement accounts) is amended by redesignating subsection (q) as subsection (r) and by inserting after subsection (p) the following new subsection: "(q) DEEMED IRAS UNDER QUALIFIED EMPLOYER PLANS. — "(1) GENERAL RULE. — If — "(A) a qualified employer plan elects to allow employees to make voluntary employee contributions to a separate account or annuity established under the plan, and "(B) under the terms of the qualified employer plan, such account or annuity meets the applicable requirements of this section or section 408A for an individual retirement account or annuity, then such account or annuity shall be treated for purposes of this title in the same manner as an individual retirement plan and not as a qualified employer plan (and contributions to such account or annuity as contributions to an individual retirement plan and not to the qualified employer plan). For purposes of subparagraph (B), the requirements of subsection (a)(5) shall not apply. " (2) SPECIAL RULES FOR QUALIFIED EMPLOYER PLANS.— For purposes of this title, a qualified employer plan shall not fail to meet any requirement of this title solely by reason of establishing and maintaining a program described in paragraph (1). "(3) DEFINITIONS.— For purposes of this subsection— "(A) QUALIFIED EMPLOYER PLAN. — The term 'qualified employer plan' has the meaning given such term by section 72(p)(4); except such term shall not include a government plan which is not a qualified plan unless the plan is an eligible deferred compensation plan (as defined in section 457(b)). "(B) VOLUNTARY EMPLOYEE CONTRIBUTION.—The term Voluntary employee contribution' means any contribution (other than a mandatory contribution within the meaning of section 411(c)(2)(C))—
�
