[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1065 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1065

 To amend the Internal Revenue Code of 1986 to provide that the actual 
  deferral percentage test shall not apply in determining whether an 
 arrangement for restaurant employees is a qualified cash or deferred 
                              arrangement.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 1997

Mr. Gilchrest 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 the actual 
  deferral percentage test shall not apply in determining whether an 
 arrangement for restaurant employees is a qualified cash or deferred 
                              arrangement.

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

SECTION 1. ACTUAL DEFERRAL PERCENTAGE TEST NOT TO APPLY IN DETERMINING 
              WHETHER ARRANGEMENT FOR RESTAURANT EMPLOYEES IS A 
              QUALIFIED CASH OR DEFERRED ARRANGEMENT.

    (a) In General.--Paragraph (3) of section 401(k) of the Internal 
Revenue Code of 1986 (relating to cash or deferred arrangements) is 
amended by adding at the end the following new subparagraph:
                    ``(G) Special rule for restaurant employees.--
                Clause (ii) of subparagraph (A) shall not apply to an 
                arrangement if substantially all of the employees 
                eligible to benefit under the arrangement are employed 
                in the trade or business of providing food or beverages 
                for consumption by customers on the premises.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to years beginning after the date of the enactment of this Act.
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