116 STAT. 50 PUBLIC LAW 107-147—MAR. 9, 2002 (8) of this subsection or section 408(d)(3)(A)(ii) shall not be considered contributed by such employer.". 26 USC 403. (2) Section 403(b) is amended by striking paragraph (6). (3) Section 403(b)(3) is amended— (A) in the first sentence by inserting the following before the period at the end: ", and which precedes the taxable year by no more than five years", and (B) in the second sentence by striking "or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated". (4) Section 415(c)(7) is amended to read as follows: "(7) SPECIAL RULES RELATING TO CHURCH PLANS.— " (A) ALTERNATIVE CONTRIBUTION LIMITATION. — "(i) IN GENERAL.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. "(ii) $40,000 AGGREGATE LIMITATION. —The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. "(B) NUMBER OF YEARS OF SERVICE FOR DULY ORDAINED, COMMISSIONED, OR LICENSED MINISTERS OR LAY EMPLOYEES.—For purposes of this paragraph— "(i) all years of service by— "(I) a duly ordained, commissioned, or licensed minister of a church, or "(II) a lay person, as an employee of a church, a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), shall be considered as years of service for 1 employer, and "(ii) all amounts contributed for annuity contracts by each such church (or convention or association of churches) or such organization during such years for such minister or lay person shall be considered to have been contributed by 1 employer. "(C) FOREIGN MISSIONARIES.— In the case of any individual described in subparagraph (D) performing services outside the United States, contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such employee, when expressed as an annual addition to such employee's account, shall not be treated as exceeding the limitation of paragraph (1) if such annual addition is not in excess of the greater of $3,000 or the employee's includible compensation determined under section 403(b)(3).
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