I

103D CONGRESS

1ST SESSION H. R. 719

To amend the Internal Revenue Code of 1986 to allow individuals an exclusion

for contributions made pursuant to a salary reduction arrangement to

accounts established pursuant to employer-provided family and medical

leave plan.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 2, 1993

Mr. GRANDY (for himself, Mr. ORTON, Mr. GOODLING, Ms. DUNN, Ms. PRYCE

of Ohio, Mr. ROGERS, and Mr. KOLBE) 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 allow individuals an exclusion for contributions made pursuant

to a salary reduction arrangement to accounts established pursuant to employer-provided family and medical

leave plan.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Family and Medical

5 Leave Account Act of 1993’’.

6 SEC. 2. FINDINGS AND PURPOSES.

7 (a) FINDINGS.—The Congress finds that—
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1 (1) the number of single-parent households and

2 two-parent households in which the single parent or

3 both parents work is increasing significantly;

4 (2) employers are increasingly crafting pro5 grams and practices to address the work and family

6 conflicts of their employees; and

7 (3) there have been some cases of inadequate

8 job protection for some employees who have serious

9 health conditions that prevent them from working

10 for temporary periods.

11 (b) PURPOSES.—The Congress therefore declares

12 that the purposes of this Act are—

13 (1) to balance the demands of the workplace

14 with the needs of families, to promote stability and

15 economic security in families, and to promote Fed16 eral interests in preserving family integrity;

17 (2) to promote increased opportunities for em18 ployees to take reasonable leave for situations where

19 they are physically unable to perform work, or to

20 care for an immediate family member that is seri21 ously ill, without loss of employment or employment22 related benefits; and

23 (3) to accomplish such purposes in a manner

24 which accommodates the legitimate interests of em25 ployers, promotes the development of creative poli-
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1 cies and related benefit programs which are pre2 ferred by employees and which take into account the

3 needs of both work and family.

4 SEC. 3. FAMILY AND MEDICAL LEAVE ACCOUNTS.

5 (a) IN GENERAL.—Part III of subchapter B of chap6 ter 1 of the Internal Revenue Code of 1986 (relating to

7 items specifically excluded from gross income) is amended

8 by redesignating section 137 as section 138 and by insert9 ing after section 136 the following new section:

10 ‘‘SEC. 137. FAMILY AND MEDICAL LEAVE ACCOUNTS.

11 ‘‘(a) GENERAL RULE.—For purposes of this subtitle,

12 no amount shall be included in the gross income of an

13 employee—

14 ‘‘(1) by reason of an employer contribution to

15 a family and medical leave account for the benefit of

16 such employee (whether pursuant to a salary reduc17 tion arrangement or otherwise), or

18 ‘‘(2) because the employee has an election

19 whether salary reduction contributions will be made

20 by such employer to such an account or received by

21 the employee in cash.

22 ‘‘(b) LIMITATION.—The amount excluded from gross

23 income under subsection (a) for any taxable year shall not

24 exceed the amount which, when added to the amount in

25 the account as of the beginning of the taxable year, will
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equal 1 1 ⁄2 of the employee’s compensation (as defined in

2 section 414(q)(7)) from such employer for the calendar

3 year ending with or within such taxable year. In applying

4 the preceding sentence, compensation in excess of $50,000

5 shall not be taken into account.

6 ‘‘(c) DEFINITIONS.—For purposes of this section—

7 ‘‘(1) FAMILY AND MEDICAL LEAVE ACCOUNT.—

8 The term ‘family and medical leave account’ means

9 an account maintained by the employer exclusively

10 for the benefit of the individual for whose benefit the

11 account is established, but only if—

12 ‘‘(A) the account is established pursuant to

13 a qualified family and medical leave plan of

14 such employer and such plan meets the require15 ments of subsection (d), and

16 ‘‘(B) the written governing instrument cre17 ating the account meets the following require18 ments:

19 ‘‘(i) No contribution will be accepted

20 unless it is in cash and contributions will

21 not be accepted for any taxable year in ex22 cess of the limitation under subsection (b).

23 ‘‘(ii) Distributions from the account

24 may be made only by the employer and

25 only if—
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1 ‘‘(I) the distribution is a qualified

2 distribution (as defined in subsection

3 (e)(2)(B)),

4 ‘‘(II) the employee dies or sepa5 rates from service, or

6 ‘‘(III) the employee elects (as

7 provided in subsection (h)(1)) to dis8 continue participation in the qualified

9 family and medical leave plan of such

10 employer.

11 ‘‘(iii) No part of the account assets

12 will be invested in life insurance contracts.

13 ‘‘(iv) The interest of the individual in

14 the balance of his account is nonforfeit15 able.

16 ‘‘(v) The assets of the account will not

17 be commingled with other property except

18 in a common trust fund or common invest19 ment fund.

20 ‘‘(2) SALARY REDUCTION CONTRIBUTION.—The

21 term ‘salary reduction contribution’ means any em22 ployer contribution made pursuant to a salary reduc23 tion arrangement with an employee.

24 ‘‘(3) EMPLOYEE; EMPLOYER.—The rules of

25 paragraphs (1) and (4) of section 401(c) shall apply
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1 for purposes of this section. Section 1372 shall not

2 apply for purposes of this section.

3 ‘‘(d) REQUIREMENTS.—The requirements of this sub4 section are met if the requirements of each of the following

5 paragraphs are met.

6 ‘‘(1) ELIGIBILITY REQUIREMENTS.—

7 ‘‘(A) IN GENERAL.—A qualified family and

8 medical leave plan of an employer satisfies the

9 requirements of this paragraph for any year

10 only if each employee who has performed at

11 least 1 year of service (as defined in section

12 411(a)(5)) for such employer is eligible to enter

13 into a salary reduction arrangement with such

14 employer for purposes of having contributions

15 made to a family and medical leave account.

16 ‘‘(B) EXCLUDED EMPLOYEES.—For pur17 poses of subparagraph (A), there shall be ex18 cluded—

19 ‘‘(i) employees described in subpara20 graph (A) or (C) of section 410(b)(3),

21 ‘‘(ii) employees who normally work

less than 171 22 ⁄2 hours per week, and

23 ‘‘(iii) employees who elect under sub24 section (h)(1) to discontinue participation

25 in such plan.
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1 ‘‘(2) NONDISCRIMINATION REQUIREMENTS FOR

2 MATCHING CONTRIBUTIONS (IF ANY).—In the case of

3 an employer who makes contributions to the family

4 and medical leave account of any employee in addi5 tion to salary reduction contributions to such ac6 count, the qualified family and medical leave plan of

7 such employer satisfies the requirements of this

8 paragraph for any year only if—

9 ‘‘(A) such additional contributions are

10 made on behalf of each employee who elects to

11 have such salary reduction contributions made,

12 and

13 ‘‘(B) the amount of such additional con14 tributions for each employee is determined

15 using the same percentage of the salary reduc16 tion contributions.

17 ‘‘(e) TREATMENT OF DISTRIBUTIONS.—

18 ‘‘(1) IN GENERAL.—Except as otherwise pro19 vided in this subsection, any amount paid or distrib20 uted out of a family and medical leave account shall

21 be included in the gross income of the individual for

22 whose benefit such account was established. The

23 basis of the individual in such account shall be zero.

24 ‘‘(2) ADDITIONAL TAX ON CERTAIN

25 AMOUNTS.—
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1 ‘‘(A) IN GENERAL.—If any distribution

2 which is not a qualified distribution is made

3 from a family and medical leave account during

4 any taxable year, the tax under this chapter for

5 such taxable year of the individual for whose

6 benefit such account was established shall be

7 increased by an amount equal to 10 percent of

8 the amount of such distribution.

9 ‘‘(B) QUALIFIED DISTRIBUTION.—For

10 purposes of subparagraph (A), the term ‘quali11 fied distribution’ means any distribution—

12 ‘‘(i) which is made by the employer

13 during a period of qualified family or medi14 cal leave (as defined in section 426), and

15 ‘‘(ii) the amount of which, when

16 added to the other qualified distributions

17 made to the individual during such period,

18 does not exceed the excess of—

19 ‘‘(I) the amount which would be

20 the compensation of such individual

21 from the employer for such period

22 (determined on the basis of the aver23 age rate of compensation for such in24 dividual), over
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1 ‘‘(II) the compensation (if any)

2 received (or to be received) by to such

3 individual from such employer for

4 such period.

5 Such term shall not include any distribution

6 made during the 1-year period beginning on the

7 date such account was established.

8 ‘‘(3) EXCESS CONTRIBUTIONS RETURNED BE9 FORE DUE DATE OF RETURN.—Paragraphs (1) and

10 (2) shall not apply to the distribution of any con11 tribution paid during a taxable year to a family and

12 medical leave account to the extent that such con13 tribution exceeds the amount excludable under sub14 section (a) if—

15 ‘‘(A) such distribution is received on or be16 fore the day prescribed by law (including exten17 sions of time) for filing such individual’s return

18 for such taxable year,

19 ‘‘(B) no exclusion is allowed under sub20 section (a) with respect to such excess contribu21 tion, and

22 ‘‘(C) such distribution is accompanied by

23 the amount of net income attributable to such

24 excess contribution.
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1 Any net income described in subparagraph (C) shall

2 be included in the gross income of the individual for

3 the taxable year in which it is received.

4 ‘‘(f) TAX TREATMENT OF ACCOUNTS.—

5 ‘‘(1) EXEMPTION FROM TAX.—A family and

6 medical leave account shall be exempt from taxation

7 under this subtitle unless such account has ceased to

8 be a family and medical leave account by reason of

9 paragraph (2). Notwithstanding the preceding sen10 tence, such an account shall be subject to the taxes

11 imposed by section 511 (relating to imposition of tax

12 on unrelated business income of charitable, etc. or13 ganizations).

14 ‘‘(2) EFFECT OF PLEDGING ACCOUNT AS SECU15 RITY.—If, during any taxable year, the individual for

16 whose benefit a family and medical leave account

17 was established uses the account or any portion

18 thereof as security for a loan, the portion so used is

19 treated as distributed to that individual during a pe20 riod which is not a period of qualified family or

21 medical leave.

22 ‘‘(g) SPECIAL RULES.—

23 ‘‘(1) ELECTION TO DISCONTINUE PARTICIPA24 TION IN QUALIFIED FAMILY AND MEDICAL LEAVE

25 PLAN.—Each employee who is a participant in a
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1 qualified family and medical leave plan of the em2 ployer may elect to discontinue participation in such

3 plan. If such election is made—

4 ‘‘(A) the employer shall distribute to the

5 employee the balance in any family and medical

6 leave account of such employee which is held by

7 the employer, and

8 ‘‘(B) such employee may not participate in

9 the qualified family and medical leave plan of

10 such employer during the 2-year period begin11 ning on the date of such distribution.

12 ‘‘(2) TREATMENT OF ACCOUNT ON SEPARATION

13 FROM SERVICE.—In the case of an employee who

14 separates from service—

15 ‘‘(A) paragraphs (1) and (2) of subsection

16 (e) shall not apply to any transfer from any

17 family and medical leave account of such em18 ployee to another family and medical leave ac19 count of such employee (and subsection (b)

20 shall not apply to the receipt of such transfer

21 by such other account) if such transfer is made

22 not later than the 180th day after the date of

23 separation, and

24 ‘‘(B) if all amounts in any family and med25 ical leave account with respect to the former
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1 employer is not so transferred during such 180-

2 day period, the employer shall distribute to the

3 employee the balance in such account as of the

4 close of such period.

5 Any amount distributed to the employee under sub6 paragraph (B) may be rolled into an individual re7 tirement plan of such employee notwithstanding any

8 other provision of law.

9 ‘‘(3) TREATMENT OF ACCOUNT ON DEATH.—In

10 the case of the death of an employee, the employer

11 shall distribute the balance of any family and medi12 cal leave account of such employee to the designated

13 beneficiaries of such employee.

14 ‘‘(4) COMMUNITY PROPERTY LAWS.—This sec15 tion shall be applied without regard to any commu16 nity property laws.

17 ‘‘(h) REPORTS.—The employer maintaining any fam18 ily and medical leave account shall make such reports re19 garding such account to the Secretary and to the individ20 ual for whose benefit the account is maintained with re21 spect to contributions, distributions, and such other mat22 ters as the Secretary may require under regulations. The

23 reports required by this subsection shall be filed at such

24 time and in such manner and furnished to such individuals
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1 at such time and in such manner as may be required by

2 those regulations.’’

3 SEC. 4. QUALIFIED FAMILY AND MEDICAL LEAVE PLANS.

4 (a) IN GENERAL.—Subchapter D of chapter 1 of the

5 Internal Revenue Code of 1986 (relating to deferred com6 pensation, etc.) is amended by adding at the end thereof

7 the following new part:

8 ‘‘PART III—QUALIFIED FAMILY AND MEDICAL

9 LEAVE PLANS.

‘‘Sec. 426. Qualified family and medical leave plans.

‘‘Sec. 427. Certification requirements.

‘‘Sec. 428. Employment and benefits protection.

10 ‘‘SEC. 426. QUALIFIED FAMILY AND MEDICAL LEAVE PLANS.

11 ‘‘(a) IN GENERAL.—For purposes of this title, the

12 term ‘qualified family and medical leave plan’ means any

13 plan which is maintained by an employer for the purpose

14 of providing employees with family or medical leave and

15 which meets the requirements of sections 427 and 428.

16 ‘‘(b) QUALIFIED FAMILY OR MEDICAL LEAVE.—For

17 purposes of this section, the term ‘qualified family or med18 ical leave’ means any period of leave under a qualified

19 family or medical leave plan of an employee (irrespective

20 of whether, or the extent to which, pay is provided there21 under together with such leave) for 1 or more of the fol22 lowing reasons:

23 ‘‘(1) Because of the physical incapacitation of

24 the employee resulting from the employee’s own seri-
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1 ous health condition, including medical disability as2 sociated with the birth of a son or daughter of the

3 employee.

4 ‘‘(2) In order to care for the employee’s son,

5 daughter, spouse, or parent who has a serious health

6 condition.

7 ‘‘(3) In order to care for a newborn son or

8 daughter or a newly adopted son or daughter under

9 the age of 6.

10 ‘‘(c) SERIOUS HEALTH CONDITION.—For purposes of

11 this section, the term ‘serious health condition’ means a

12 condition caused by an accident, disease, or health condi13 tion which—

14 ‘‘(1) poses imminent danger of death;

15 ‘‘(2) requires hospitalization relating to the

16 birth of a child or involving an organ transplant,

17 limb amputation, or other procedure of similar se18 verity; or

19 ‘‘(3) a mental or physical condition which re20 quires constant in-home care.

21 ‘‘(d) SON OR DAUGHTER.—For purposes of this sec22 tion, the term ‘son or daughter’ of an employee means a

23 biological, adopted, or foster child of the employee, a step24 child of the employee, or a child of which the employee

25 has legal guardianship of the person, who is—
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1 ‘‘(1) under 18 years of age, or

2 ‘‘(2) 18 years of age or older and incapable of

3 self-care because of mental or physical disability or

4 required complete bed rest.

5 ‘‘(e) PARENT.—For purposes of this section, the term

6 ‘parent’ means the biological parent of the child or an indi7 vidual who has legal guardianship of the person of the

8 child when the child is a son or daughter.

9 ‘‘SEC. 427. CERTIFICATION REQUIREMENTS.

10 ‘‘(a) IN GENERAL.—A family and medical leave plan

11 shall not be treated as meeting the requirements of this

12 section unless the plan provides—

13 ‘‘(1) that the employer may require that a claim

14 for leave described in paragraph (1) or (2) of section

15 426(b) be supported by certification issued by the

16 health care provider of the employee or of the em17 ployee’s son, daughter, spouse, or parent, whichever

18 is appropriate, and

19 ‘‘(2) that the employee must provide a copy of

20 such certification to the employer.

21 ‘‘(b) SUFFICIENT CERTIFICATION.—Such certifi22 cation shall be treated as sufficient if it states—

23 ‘‘(1) the date on which the serious health condi24 tion commenced,

25 ‘‘(2) the probable duration of the condition,
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1 ‘‘(3) the appropriate medical facts within the

2 provider’s knowledge regarding the condition, and

3 ‘‘(4)(A) for purposes of leave described in sec4 tion 426(b)(1), a statement that the employee is un5 able to perform the functions of the employee’s posi6 tion, and

7 ‘‘(B) for purposes of leave described in section

8 426(b)(2), an estimate of the amount of time that

9 the eligible employee is needed to care for the son,

10 daughter, spouse, or parent.

11 ‘‘(c) SECOND OPINION.—A family and medical leave

12 plan shall not be treated as meeting the requirements of

13 this section unless the plan provides—

14 ‘‘(1) that, in any case in which the employer

15 has reason to doubt the validity of the certification

16 provided in accordance with subsection (a) for leave

17 described in paragraph (1) or (2) of section 426(b),

18 the employer may require, at its own expense, that

19 the employee obtain the opinion of a second health

20 care provider designated or approved by the em21 ployer concerning any information certified in ac22 cordance with subsection (a) for such leave, and

23 ‘‘(2) that any health care provider designated or

24 approved pursuant to paragraph (1) may not be em25 ployed on a regular basis by the employer.
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1 ‘‘(d) RESOLUTION OF CONFLICTING OPINIONS.—A

2 family and medical leave plan shall not be treated as meet3 ing the requirements of this section unless the plan pro4 vides—

5 ‘‘(1) that, in any case in which the second opin6 ion described in subsection (c) differs from the origi7 nal certification provided under subsection (a), the

8 employer may require, at its own expense, that the

9 employee obtain the opinion of a third health care

10 provider designated or approved jointly by the em11 ployer and the employee concerning the information

12 certified in accordance with subsection (a), and

13 ‘‘(2) that the opinion of the third health care

14 provider concerning the information certified in ac15 cordance with subsection (a) will be considered to be

16 final and will be binding on the employer and the

17 employee.

18 ‘‘(e) HEALTH CARE PROVIDER.—For purposes of

19 this section, the term ‘health care provider’ means a doc20 tor of medicine or osteopathy legally authorized to practice

21 medicine and surgery by the State in which the doctor per22 forms such function or action.

23 ‘‘SEC. 428. EMPLOYMENT AND BENEFITS PROTECTION.

24 ‘‘(a) RESTORATION TO POSITION.—
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1 ‘‘(1) IN GENERAL.—A family and medical leave

2 plan shall not be treated as meeting the require3 ments of this section unless, under the plan—

4 ‘‘(A) any employee who takes leave under

5 the plan for its intended purpose is entitled,

6 upon return from such leave—

7 ‘‘(i) to be restored by the employer to

8 the position of employment held by the em9 ployee when the leave commenced, or

10 ‘‘(ii) to be restored to an equivalent

11 position with equivalent employment bene12 fits, pay, and other terms and conditions of

13 employment, and

14 ‘‘(B) the taking of leave under the plan

15 does not result in the loss of any employment

16 benefit earned before the date on which the

17 leave commenced.

18 ‘‘(2) Nothing in this subsection shall be con19 strued to require a family and medical leave plan to

20 provide for the entitlement of any restored employee

21 to—

22 ‘‘(A) the accrual of any seniority or em23 ployment benefits during any period of leave, or

24 ‘‘(B) any right, benefit, or position of em25 ployment other than any right, benefit, or posi-
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1 tion to which the employee would have been en2 titled had the employee not taken the leave.

3 ‘‘(3) As a condition to restoration under the

4 plan pursuant to paragraph (1)(A), the plan shall

5 not be treated as meeting the requirements of this

6 section unless the plan provides that the employer

7 may have a policy that requires each employee to re8 ceive certification from the employee’s health care

9 provider that the employee is able to resume work,

10 except that nothing in this paragraph shall super11 sede a valid State or local law or a collective bar12 gaining agreement that governs the return to work

13 of employees taking leave under section 426(b).

14 ‘‘(b) MAINTENANCE OF HEALTH BENEFITS.—

15 ‘‘(1) IN GENERAL.—A family and medical leave

16 plan shall not be treated as meeting the require17 ments of this section unless, under the plan, during

18 any period an eligible employee takes leave under a

19 family and medical leave plan, if such employee is

20 also covered under a group health plan maintained

21 by the employer at the time such leave commences,

22 the employer must maintain coverage under such

23 group health plan for the duration of such leave at

24 the level and under the conditions coverage would

25 have been provided if the employee had continued in
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1 employment continuously from the date the em2 ployee commenced the leave until the date the em3 ployee is restored under the family and medical leave

4 plan pursuant to subsection (a).

5 ‘‘(2) REIMBURSEMENT OF EMPLOYER FOR PRO6 VIDING CONTINUED HEALTH COVERAGE.—In any

7 case in which—

8 ‘‘(A) an employee is a participant in a

9 group health plan maintained by the employer

10 and there is in effect an election by the em11 ployee to participate in a family and medical

12 leave plan, and

13 ‘‘(B) under such family and medical leave

14 plan the employer is required to make at least

15 a matching employer contribution to the plan

16 with respect to each employee contribution of

17 such employee,

18 nothing in this Act or title I of the Employee Retire19 ment Income Security Act of 1974 shall be con20 strued to preclude such family and medical leave

21 plan from providing for reimbursement to the em22 ployer for the cost to the employer of coverage of

23 such employee maintained under such group health

24 plan for the duration of the leave taken by such em25 ployee.
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1 ‘‘(c) NO BAR TO AGREEMENT CONCERNING ALTER2 NATIVE EMPLOYMENT.—

3 ‘‘(1) IN GENERAL.—Nothing in this part or

4 title I of the Employee Retirement Income Security

5 Act of 1974 or any family and medical leave plan

6 shall be construed to prohibit an employer maintain7 ing such a plan and an employee covered under such

8 plan from mutually agreeing to alternative employ9 ment of the employee throughout the period during

10 which the employee would be entitled to leave under

11 such plan. A family and medical leave plan shall not

12 be treated as meeting the requirements of this sec13 tion unless, under the plan, any such period of alter14 native employment does not cause a reduction in the

15 period of temporary leave to which the employee is

16 entitled under the plan pursuant to section 426(b).

17 ‘‘(2) The employer may request that, for pur18 poses of paragraph (1), certification required under

19 the plan pursuant to section 427(a) that is issued in

20 any case involving leave described in section

21 426(b)(1) include an explanation of the extent to

22 which the eligible employee is unable to perform the

23 functions of the employee’s position.’’
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1 SEC. 5. TECHNICAL AMENDMENTS.

2 (a) TAX ON EXCESS CONTRIBUTIONS.—Section 4973

3 of the Internal Revenue Code of 1986 (relating to tax on

4 excess contributions to individual retirement accounts, cer5 tain section 403(b) contracts, and certain individual re6 tirement annuities) is amended—

7 (1) by inserting ‘‘FAMILY AND MEDICAL

8 LEAVE ACCOUNTS,’’ after ‘‘ACCOUNTS,’’ in the

9 heading of such section,

10 (2) by redesignating paragraph (2) of sub11 section (a) as paragraph (3) and by inserting after

12 paragraph (1) the following:

13 ‘‘(2) a family and medical leave account (within

14 the meaning of section 220(c)),’’,

15 (3) by striking ‘‘or’’ at the end of paragraph

16 (1) of subsection (a), and

17 (4) by adding at the end thereof the following

18 new subsection:

19 ‘‘(d) EXCESS CONTRIBUTIONS TO FAMILY AND MED20 ICAL LEAVE ACCOUNTS.—For purposes of this section, in

21 the case of a family and medical leave account, the term

22 ‘excess contributions’ means the amount by which the

23 amount contributed for the taxable year to the account

24 exceeds the amount excludable under section 220 for such

25 taxable year. For purposes of this subsection, any con26 tribution which is distributed out of the family and medi-
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1 cal leave account in a distribution to which section

2 220(e)(3) applies shall be treated as an amount not con3 tributed.’’

4 (b) FAILURE TO PROVIDE REPORTS ON FAMILY AND

5 MEDICAL LEAVE ACCOUNTS.—Section 6693 of such Code

6 (relating to failure to provide reports on individual retire7 ment account or annuities) is amended—

8 (1) by inserting ‘‘OR ON FAMILY AND MEDI9 CAL LEAVE ACCOUNTS’’ after ‘‘ANNUITIES’’ in

10 the heading of such section, and

11 (2) by adding at the end of subsection (a) the

12 following: ‘‘The person required by section 220(i) to

13 file a report regarding a family and medical leave

14 account at the time and in the manner required by

15 such section shall pay a penalty of $50 for each fail16 ure unless it is shown that such failure is due to rea17 sonable cause.’’

18 (c) CLERICAL AMENDMENTS.—

19 (1) The table of sections for part III of sub20 chapter B of chapter 1 of such Code is amended by

21 striking the item relating to section 137 and insert22 ing the following:

‘‘Sec. 137. Family and medical leave accounts.

‘‘Sec. 138. Cross references to other Acts.’’
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1 (2) The table of sections for chapter 43 of such

2 Code is amended by striking the item relating to sec3 tion 4973 and inserting the following:

‘‘Sec. 4973. Tax on excess contributions to individual retirement

accounts, family and medical leave accounts, certain

403(b) contracts, and certain individual retirement

annuities.’’

4 (3) The table of sections for subchapter B of

5 chapter 68 of such Code is amended by inserting ‘‘or

6 on family and medical leave accounts’’ after ‘‘annu7 ities’’ in the item relating to section 6693.

8 (4) The table of parts for subchapter D of

9 chapter 1 of such Code is amended by adding at the

10 end thereof the following new item:

‘‘Part III—Qualified family and medical leave plans’’.

11 SEC. 6. EFFECTIVE DATE.

12 The amendments made by this Act shall apply to tax13 able years beginning after December 31, 1992.

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