12 2 STA T . 1 63 2 PUBLIC LA W 11 0– 2 45—J U NE 1 7, 200 8isnotaqu a l i f i ed dist r i b ution , t h ea m ount treated as a rollo v erb y reason of sub p ara g raph (A) shall be treated as investment in the c ontract .’ ’. (b) PROVIS IO N IN EF F ECT AFTER PENSION PROTECTION ACT. —S ubsection (e) of section 408 A, as in effect after the amendments made by section 8 2 4 of the Pension Protection Act of 200 6 ,is amended to read as follo w s
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‘(e) QUAL IFIE DR OLLOVER C ONTRI B UTION.— F or purposes of this section— ‘‘( 1 ) I N G ENERAL.— T he term ‘qualified rollover contribution’ means a rollover contribution— ‘‘(A) to a Roth IRA from another such account, ‘‘( B ) from an eligible retirement plan, but only if— ‘‘(i) in the case of an individual retirement plan, such rollover contribution meets the requirements of section 408(d)( 3 ), and ‘‘(ii) in the case of any eligible retirement plan (as defined in section 402(c)(8)(B) other than clauses (i) and (ii) thereof), such rollover contribution meets the requirements of section 402(c), 403(b)(8), or 4 57 (e)(16), as applicable. For purposes of section 408(d)(3)(B), there shall be dis - regarded any qualified rollover contribution from an indi- vidual retirement plan (other than a Roth IRA) to a Roth IRA. ‘‘(2) M ILITAR Y DEAT H GRATUITY.— ‘‘(A) IN GENERAL.—The term ‘qualified rollover con- tribution’ includes a contribution to a Roth IRA maintained for the benefit of an individual made before the end of the 1-year period beginning on the date on which such individual receives an amount under section 1477 of title 10, U nited States Code, or section 1 9 67 of title 38 of such Code, with respect to a person, to the e x tent that such contribution does not exceed— ‘‘(i) the sum of the amounts received during such period by such individual under such sections with respect to such person, reduced by ‘‘(ii) the amounts so received which were contrib- uted to a Coverdell education savings account under section 530(d)(9). ‘‘(B) ANNUAL LI M IT ON NUMBER OF ROLLOVERS NOT TOA P PLY.—Section 408(d)(3)(B) shall not apply with respect to amounts treated as a rollover by the subparagraph (A). ‘‘(C) APPLICATION OF SECTION 72 .—For purposes of applying section 72 in the case of a distribution which is not a qualified distribution, the amount treated as a rollover by reason of subparagraph (A) shall be treated as investment in the contract.’’. (c) EDUCATION SAVINGS ACCOUNTS.—Subsection (d) of section 530 is amended by adding at the end the following new paragraph: ‘‘(9) MILITARY DEATH GRATUITY.— ‘‘(A) IN GENERAL.—For purposes of this section, the term ‘rollover contribution’ includes a contribution to a Coverdell education savings account made before the end of the 1-year period beginning on the date on which the contributor receives an amount under section 1477 of title 10, United States Code, or section 1967 of title 38 of such 26USC408.
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