is amended by inserting after section 408 the following
new section:
‘‘SEC. 408A. ROLLOVER TREATMENT FOR PROCEEDS FROM
SALE OF FARM.
‘‘(a) IN GENERAL.—In the case of an individual,
gross income does not include gain from the sale or ex-
change of qualified farm property to the extent of the
amounts which the individual, not later than the 60th day
after the date of the sale or exchange, pays into an individ-
ual retirement account (within the meaning of section
408(a)) for the benefit of the individual (or spouse of the
individual).
‘‘(b) QUALIFIED FARM PROPERTY.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘qualified farm
property’ means real or personal property located in
the United States if, during the 5-year period ending
on the date of the sale or exchange of the prop-
erty—
‘‘(A) the property was used for farming
purposes, and
‘‘(B) there was material participation by
the individual (or spouse of the individual) in
the operation of the farm.
‘‘(2) FARM.—The terms ‘farm’ and ‘farming
purposes’ have the respective meanings given such
terms by paragraphs (4) and (5) of section
2032A(e).
‘‘(3) APPLICABLE RULES.—Rules similar to the
rules of paragraphs (3) and (6) of section 2032A(e)
shall apply.
‘‘(c) LIMITATIONS.—
‘‘(1) MAXIMUM ROLLOVER PER INDIVIDUAL.—
The amount which may be excluded from gross
income under subsection (a) in any taxable year on
account of payments into an individual retirement
account for the benefit of any 1 individual shall not
exceed—
‘‘(A) the amount determined by multiply-
ing—
‘‘(i) the sum of the dollar limitations
applicable for such taxable year under sec-
tions 402(g)(1) and 408(a)(1), by
‘‘(ii) the holding period of the individ-
ual with respect to the property, reduced
by
‘‘(B) the aggregate amount excluded under
subsection (a) with respect to the individual for
all preceding taxable years.
‘‘(2) MAXIMUM ROLLOVER PER FAMILY.—The
aggregate amount which may be excluded from gross
income under subsection (a) in any taxable year by
any individual (and spouse of the individual) shall
not exceed—
‘‘(A) $500,000, reduced by
‘‘(B) the sum of—
‘‘(i) the amount by which the aggre-
gate value of the assets held by the individ-
ual (and spouse) in individual retirement
plans exceeds $100,000, and
‘‘(ii) the aggregate amount excluded
under subsection (a) by the individual (and
spouse) for all preceding taxable years.
‘‘(d) TREATMENT OF INVESTMENT.—For purposes of
section 72, any amount excluded from gross income under
subsection (a) on account of a payment into an individual
retirement account shall be treated as an amount allowed
as a deduction under section 219 with respect to the indi-
vidual retirement account.’’
(b) 
DENIAL
OF
DEDUCTION
FOR
ROLLOVER
AMOUNT.—Paragraph (2) of section 219(d) of such Code
(relating to denial of deduction for recontributed amounts)
is amended by striking ‘‘or 408(d)(3)’’ and inserting
‘‘408(d)(3), or 408A’’.
(c) EXEMPTION
FROM
CONTRIBUTION
LIMITA-
TIONS.—
(1) Paragraph (1) of section 408(a) of such
Code (relating to limitation on contributions to indi-
vidual retirement accounts) is amended by striking
‘‘or 403(b)(8)’’ and inserting ‘‘403(b)(8), or 408A’’.
(2) Subparagraph (A) of section 4973(b)(1) of
such Code (relating to tax on excess contributions to
individual retirement accounts) is amended by strik-
ing ‘‘or 408(d)(3)’’ and inserting ‘‘408(d)(3), or
408A’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to sales or exchanges after the date
of the enactment of this Act.
Æ