PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 105 Roth account established for such individual under the same applicable retirement plan, or "(ii) if a rollover contribution was made to such designated Roth account from a designated Roth account previously established for such individual under another applicable retirement plan, the first taxable year for which the individual made a designated Roth contribution to such previously established account. "(C) DISTRIBUTIONS OF EXCESS DEFERRALS AND CON- TRIBUTIONS AND EARNINGS THEREON. —The term 'qualified distribution' shall not include any distribution of any excess deferral under section 402(g)(2) or any excess contribution under section 401(k)(8), and any income on the excess deferral or contribution. " (3) TREATMENT OF DISTRIBUTIONS OF CERTAIN EXCESS DEFERRALS.— Notwithstanding section 72, if any excess deferral under section 402(g)(2) attributable to a designated Roth contribution is not distributed on or before the 1st April 15 following the close of the taxable year in which such excess deferral is made, the amount of such excess deferral shall— "(A) not be treated as investment in the contract, and "(B) be included in gross income for the taxable year in which such excess is distributed. "(4) AGGREGATION RULES. —Section 72 shall be applied separately with respect to distributions and payments from a designated Roth account and other distributions and payments from the plan. "(e) OTHER DEFINITIONS. —For purposes of this section— "(1) APPLICABLE RETIREMENT PLAN.— The term 'applicable retirement plan' means— "(A) an employees' trust described in section 401(a) which is exempt from tax under section 501(a), and "(B) a plan under which amounts are contributed by an individual's employer for an annuity contract described in section 403(b). "(2) ELECTIVE DEFERRAL.—The term 'elective deferral' means any elective deferral described in subparagraph (A) or (Oof section 402(g)(3).". (b) EXCESS DEFERRALS.— Section 402(g) (relating to limitation 26 USC 402. on exclusion for elective deferrals) is amended— (1) by adding at the end of paragraph (1)(A) (as added by section 201(c)(1)) the following new sentence: "The preceding sentence shall not apply the portion of such excess as does not exceed the designated Roth contributions of the individual for the taxable year."; and (2) by inserting "(or would be included but for the last sentence thereof)" after "paragraph (1)" in paragraph (2)(A). (c) ROLLOVERS. — Subparagraph (B) of section 402(c)(8) is amended by adding at the end the following: "If any portion of an eligible rollover distribution is attributable to payments or distributions from a designated Roth account (as defined in section 402A), an eligible retirement plan with respect to such portion shall include only another designated Roth account and a Roth IRA.". (d) REPORTING REQUIREMENTS.—
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