[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 616 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 616

      To amend the Internal Revenue Code of 1986 to permit 401(k) 
      contributions which would otherwise be limited by employer 
            contributions to employee stock ownership plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 8, 1999

  Mr. Crane 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 permit 401(k) 
      contributions which would otherwise be limited by employer 
            contributions to employee stock ownership plans.

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

SECTION 1. 401(K) CONTRIBUTIONS PERMITTED WHICH WOULD OTHERWISE BE 
              LIMITED BY EMPLOYER CONTRIBUTIONS TO EMPLOYEE STOCK 
              OWNERSHIP PLANS.

    (a) In General.--Subsection (c) of section 415 of the Internal 
Revenue Code of 1986 (relating to limitation for defined contribution 
plans) is amended by adding at the end the following new paragraph:
            ``(8) 401(k) contributions permitted which would otherwise 
        be limited by employer contributions to employee stock 
        ownership plans.--Employer contributions to an employee stock 
        ownership plan (as described in section 4975(e)(7)) shall not 
        be taken into account in determining whether any other amount 
        exceeds the limitations imposed by this section with respect to 
        contributions to qualified cash or deferred arrangements under 
        section 401(k).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning after December 31, 1999.
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