PUBLIC LAW 107-16—JUNE 7, 2001 115 STAT. 99 2005 $14,000 2006 or thereafter $15,000. "(B) COST-OF-LIVING ADJUSTMENTS.—In the case of taxable years beginning after December 31, 2006, the Secretary shall adjust the $15,000 amount under subparagraph (A) at the same time and in the same manner as under section 415(d), except that the base period shall be the calendar quarter beginning July 1, 2005, and any , increase under this paragraph which is not a multiple of $500 shall be rounded to the next lowest multiple of $500. ". (f) SIMPLE RETIREMENT ACCOUNTS.— (1) LIMITATION.— Clause (ii) of section 408(p)(2)(A) (relating 26 USC 408. to general rule for qualified salary reduction arrangement) is amended by striking "$6,000" and inserting "the applicable dollar amount". (2) APPLICABLE DOLLAR AMOUNT. — Subparagraph (E) of 408(p)(2) is amended to read as follows: " (E) APPLICABLE DOLLAR AMOUNT; COST-OF-LIVING ADJUSTMENT.— "(i) IN GENERAL. —For purposes of subparagraph (A)(ii), the applicable dollar amount shall be the amount determined in accordance with the following table: "For years The applicable beginning in dollar amount: calendar year: 2002 $7,000 2003 $8,000 2004 $9,000 2005 or thereafter $10,000. "(ii) COST-OF-LIVING ADJUSTMENT. —In the case of a year beginning after December 31, 2005, the Secretary shall adjust the $10,000 amount under clause (i) at the same time and in the same manner as under section 415(d), except that the base period taken into account shall be the calendar quarter beginning July 1, 2004, and any increase under this subparagraph which is not a multiple of $500 shall be rounded to the next lower multiple of $500.". (3) CONFORMING AMENDMENTS. — (A) Subclause (I) of section 401(k)(ll)(B)(i) is amended by striking "$6,000" and inserting "the amount in effect under section 408(p)(2)(A)(ii)". (B) Section 401(k)(ll) is amended by striking subparagraph (E). (g) CERTAIN COMPENSATION LIMITS.— (1) IN GENERAL. — Subparagraph (A) of section 401(c)(2) (defining earned income) is amended by adding at the end thereof the following new sentence: "For purposes of this part only (other than sections 419 and 419A), this subparagraph shall be applied as if the term 'trade or business' for purposes of section 1402 included service described in section 1402(c)(6).". (2) SIMPLE RETIREMENT ACCOUNTS.— Clause (ii) of section 408(p)(6)(A) (defining self-employed) is amended by adding at the end the following new sentence: "The preceding sentence shall be applied as if the term 'trade or business' for purposes of section 1402 included service described in section 1402(c)(6).".
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