II
109th CONGRESS
2d Session
S. 2193
IN THE SENATE OF THE UNITED STATES
January 25, 2006
Mrs. Hutchison introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to establish fairness in the treatment of certain pension plans maintained by churches, and for other purposes.
Extending waiver of defined benefit compensation limit to participants in church plans who are not highly compensated employees
In general
Paragraph (11) of section 415(b) of the Internal Revenue
Code of 1986 is amended by adding at the end the following: Subparagraph
(B) of paragraph (1) shall not apply to a plan maintained by an organization
described in section 3121(w)(3) except with respect to highly compensated
benefits. For purposes of this paragraph, the term highly compensated
benefits means any benefits accrued for an employee in any year on or
after the first year in which such employee is a highly compensated employee
(as defined in section 414(q)) of the organization described in section
3121(w)(3). For purposes of applying paragraph (1)(B) to highly compensated
benefits, all benefits of the employee otherwise taken into account (without
regard to this paragraph) shall be taken into account.
.
Effective date
The amendments made by this section shall apply to plan years beginning after December 31, 2005.
Equalizing treatment of retirement income accounts provided by churches with respect to acquisition indebtedness
In general
Section 514(c)(9)(C) of the Internal Revenue Code of 1986
(defining qualified organization) is amended by striking or
at
the end of clause (ii), by striking the period at the end of clause (iii) and
inserting ; or
, and by adding at the end the following:
a retirement income account (as defined in section 403(b)(9)(B)).
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2005.