[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2810 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2810

 To amend the Internal Revenue Code of 1986 to provide that cafeteria 
plans which provide for grandfathered 401(k) plans may also provide for 
                  contributions to section 457 plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 19, 1995

  Mr. Filner introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide that cafeteria 
plans which provide for grandfathered 401(k) plans may also provide for 
                  contributions to section 457 plans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PROVISION OF SECTION 457 PLANS BY CAFETERIA PLANS WHICH ALSO 
              PROVIDE FOR 401(k) PLAN CONTRIBUTIONS.

    (a) In General.--Paragraph (2) of section 125(d) of the Internal 
Revenue Code of 1986 (relating to cafeteria plans) is amended by adding 
at the end the following new subparagraph:
                    ``(D) Exception for section 457 plans if 
                grandfathered 401(k) plans also offered.--
                            ``(i) In general.--Subparagraph (A) shall 
                        not apply to an eligible deferred compensation 
                        plan (as defined in section 457) provided for 
                        by a cafeteria plan (determined without regard 
                        to this paragraph), if such cafeteria plan also 
                        provides for a grandfathered 401(k) plan.
                            ``(ii) Grandfathered 401(k) plan.--For 
                        purposes of clause (i), the term `grandfathered 
                        401(k) plan' means a qualified cash or deferred 
                        arrangement (as defined in section 401(k)(2)) 
                        adopted by a State or local government (or 
                        political subdivision thereof) before May 6, 
                        1986.''
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after December 31, 1995.
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