I
105TH CONGRESS
2D SESSION
H. R. 3663
To amend the Internal Revenue Code of 1986 to provide equitable treatment
for contributions by employees to defined contribution pension plans.
IN THE HOUSE OF REPRESENTATIVES
APRIL 1, 1998
Mr. LEACH 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
equitable treatment for contributions by employees to
defined contribution pension plans.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Enhanced Savings Op-
portunities Act’’.
SEC. 2. EQUITABLE TREATMENT FOR CONTRIBUTIONS OF
EMPLOYEES 
TO 
DEFINED 
CONTRIBUTION
PLANS.
(a) IN GENERAL.—Subparagraph (B) of section
415(c)(1) of the Internal Revenue Code of 1986 (relating
to limitation for defined contribution plans) is amended
to read as follows:
‘‘(B) the participant’s compensation.’’
(b) CONFORMING AMENDMENTS.—
(1)(A) Section 403(b) of the Internal Revenue
Code of 1986 is amended—
(i) by striking ‘‘the exclusion allowance for
such taxable year’’ in paragraph (1) and insert-
ing ‘‘the applicable limit under section 415’’,
and
(ii) by striking paragraph (2).
(B) Section 404(a)(10)(B) of such Code is
amended by striking ‘‘, the exclusion allowance
under section 403(b)(2),’’.
(C) Section 415(a)(2) of such Code is amended
by striking ‘‘, and the amount of the contribution for
such portion shall reduce the exclusion allowance as
provided in section 403(b)(2)’’.
(D) Section 415(c)(3) of such Code is amended
by adding at the end the following new subpara-
graph:
‘‘(E) ANNUITY CONTRACTS.—In the case
of an annuity contract described in section
403(b), the term ‘participant’s compensation’
shall mean the participant’s includible com-
pensation as determined under regulations pre-
scribed by the Secretary.’’
(E) Section 415(c) of such Code is amended by
striking paragraph (4).
(F) Section 415(c)(7) of such Code is amended
to read as follows:
‘‘(7) CERTAIN
CONTRIBUTIONS
BY
CHURCH
PLANS NOT TREATED AS EXCEEDING LIMIT.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this subsection, at the elec-
tion of a participant who is an employee of a
church, a convention or association of churches,
including an organization described in section
414(e)(3)(B)(ii), contributions and other addi-
tions for an annuity contract or retirement in-
come account described in section 403(b) with
respect to such participant, when expressed as
an annual addition to such participant’s ac-
count, shall be treated as not exceeding the lim-
itation of paragraph (1) if such annual addition
is not in excess of $10,000.
‘‘(B) $40,000 AGGREGATE LIMITATION.—
The total amount of additions with respect to
any participant which may be taken into ac-
count for purposes of this subparagraph for all
years may not exceed $40,000.
‘‘(C) ANNUAL ADDITION.—For purposes of
this paragraph, the term ‘annual addition’ has
the meaning given such term by paragraph
(2).’’
(G) Section 415(e)(5) of such Code is amend-
ed—
(i) by striking ‘‘(except in the case of a
participant who has elected under subsection
(c)(4)(D) to have the provisions of subsection
(c)(4)(C) apply)’’, and
(ii) by striking the last sentence.
(2) Section 415(n)(2)(B) of such Code is
amended by striking ‘‘percentage’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 1998.
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