‘‘(F) the percentage which the current
value of the assets of the plan is of the current
liability under the plan, and
‘‘(4) any other material as is necessary to fairly
summarize the latest annual report.
Such information shall be written and calculated to be un-
derstood by the average plan participant, and shall be suf-
ficiently accurate and comprehensive to reasonably apprise
such participants and beneficiaries of their rights and obli-
gations under the plan.
‘‘(c) AVAILABILITY OF PLAN DOCUMENTS FOR EX-
AMINATION.—The plan shall provide that the adminis-
trator shall make copies of the plan description and the
latest annual report and the bargaining agreement, trust
agreement, contract, or other instruments under which the
plan was established or is operated available for examina-
tion by any plan participant or beneficiary in the principal
office of the administrator and in such other places as may
be necessary to make available all pertinent information
to all participants (including such places as the Secretary
may prescribe by regulations).
‘‘(d) AVAILABILITY
OF INFORMATION UPON RE-
QUEST.—The plan shall provide that the administrator
shall, upon written request of any participant or bene-
ficiary, furnish a copy of the latest annual report, any ter-
minal report, the bargaining agreement, trust agreement,
contract, or other instruments under which the plan is es-
tablished or operated. The administrator may make a rea-
sonable charge to cover the cost of furnishing such com-
plete copies. The Secretary may by regulation prescribe
the maximum amount which will constitute a reasonable
charge under the preceding sentence.
‘‘SEC. 420B. REVIEW BY QUALIFIED REVIEW BOARDS OF
CHANGES IN EMPLOYER CONTRIBUTIONS.
‘‘(a) IN GENERAL.—A public employee pension plan
does not meet the requirements of section 401(a)(35) un-
less, under the plan, changes in employer contributions are
subject to review by a qualified review board established
for the plan as provided in this section. For purposes of
this section, the term ‘qualified review board’ means a
board—
‘‘(1) whose membership is determined under the
law of the principal State in accordance with sub-
section (b), and
‘‘(2) whose powers are determined under the
law of the principal State in accordance with sub-
section (c).
‘‘(b) MEMBERSHIP.—
‘‘(1) IN GENERAL.—The membership of a quali-
fied review board established for a plan shall consist
of 3 members selected from among individuals who,
by means of their education and experience, have
demonstrated expertise in the area of pension fund
management, as follows:
‘‘(A) one member is appointed by the Gov-
ernor of the State,
‘‘(B) one member is selected by the partici-
pants in the plan, by means of an election held
in such form and manner as shall be prescribed
in regulations of the Secretary, and
‘‘(C) one member is selected jointly by the
Governor and by a representative of partici-
pants in the plan (from a certified list of pen-
sion experts established in accordance with
paragraph (2)).
Each member of the board shall have 1 vote. Mem-
bers of the board shall serve for such equivalent
terms as shall be prescribed under the law of the
principal State.
‘‘(2) CERTIFIED LIST OF EXPERTS.—The Gov-
ernor of the State shall, for purposes of paragraph
(1)(C), establish and maintain with respect to each
public employee pension plan (for which such State
is the principal State) a certified list of pension ex-
perts meeting the requirements for membership on
the qualified review board. Individuals may be in-
cluded on such list only by agreement between the
Governor of the State and a representative elected
by participants in the plan, entered into by means
of collective bargaining in such form and manner as
shall be prescribed in regulations of the Secretary.
‘‘(c) POWERS.—The board shall be treated as a quali-
fied review board for purposes of this section with respect
to any public employee pension plan (for which such State
is the principal State) only if the powers of such board
under the law of the principal State include review by the
board, for approval or disapproval by the board, of any
change in the terms of such plan, as a necessary pre-
requisite for such change to take effect, if—
‘‘(1) such change would have the effect of
changing levels of employer contributions to the
plan, and
‘‘(2) such review is requested, in such form and
manner as shall be prescribed in regulations of the
Secretary, by—
‘‘(A) at least one-third of the total number
of trustees of any trust fund forming a part of
the plan, or
‘‘(B) the head of any employee organiza-
tion representing at least 20 percent of the
total number of active participants in the plan.
The board may be treated as a qualified review board for
purposes of this section only if, under the law of the prin-
cipal State, any such change submitted to such review by
the board may take effect only upon approval of the
change by the board.
‘‘SEC. 420C. DEFINITIONS AND COVERAGE.
‘‘(a) DEFINITIONS.—For purposes of this subpart—
‘‘(1) ADMINISTRATOR.—The term ‘adminis-
trator’ means—
‘‘(A) the board of trustees, retirement
board, or similar person with administrative re-
sponsibilities in connection with a plan, or any
other person specifically so designated in con-
nection with any requirement of this subpart by
the terms of the instrument or instruments
under which the plan is operated, including but
not limited to the law of any State or of any
political subdivision of any State, or
‘‘(B) in any case in which there is no per-
son described in subparagraph (A) in connec-
tion with the plan, the plan sponsor.
‘‘(2) BENEFICIARY.—The term ‘beneficiary’
means a person designated by a participant, or by
the terms of a public employee pension plan, who is
or may become entitled to a benefit thereunder.
‘‘(3) CURRENT LIABILITY.—The term ‘current
liability’ has the meaning provided in section
302(d)(7) of the Employee Retirement Income Secu-
rity Act of 1974.
‘‘(4) EMPLOYEE.—The term ‘employee’ means
any individual employed by an employer, employer
representative, or other person required to make em-
ployer contributions under the plan.
‘‘(5) EMPLOYEE
ORGANIZATION.—The term
‘employee organization’ means any labor union or
any organization of any kind, or any agency or em-
ployee representation committee, association, group,
or plan, in which employees participate and which
exists for the purpose, in whole or in part, of dealing
with employers or employer representatives con-
cerning a public employee pension plan or other
matters incidental to employment relationships; or
any employees’ beneficiary association organized for
the purpose, in whole or in part, of establishing such
a plan.
‘‘(6) 
EMPLOYER.—The 
term 
‘employer’
means—
‘‘(A) the government of any State or of
any political subdivision of a State,
‘‘(B) any agency or instrumentality of a
government referred to in subparagraph (A), or
‘‘(C) any agency or instrumentality of two
or more governments referred to in subpara-
graph (A).
‘‘(7) EMPLOYER
CONTRIBUTION.—The term
‘employer contribution’ means any contribution to a
public employee pension plan other than a contribu-
tion made by a participant in the plan.
‘‘(8) EMPLOYER REPRESENTATIVE.—The term
‘employer representative’ means—
‘‘(A) any group or association consisting,
in whole or in part, of employers acting, in con-
nection with a public employee pension plan, for
an employer, or
‘‘(B) any person acting, in connection with
a public employee pension plan, indirectly in the
interest of an employer or of a group or asso-
ciation described in subparagraph (A).
‘‘(9) PUBLIC EMPLOYEE PENSION PLAN.—The
terms ‘public employee pension plan’ and ‘plan’
mean any plan, fund, or program which was here-
tofore or is hereafter established or maintained, in
whole or in part, by an employer, an employer rep-
resentative, or an employee organization, or by a
combination thereof, to the extent that by its express
terms or as a result of surrounding circumstances
such plan, fund, or program—
‘‘(A) provides retirement income to em-
ployees, or
‘‘(B) results in a deferral of income by em-
ployees for periods extending to the termination
of covered employment or beyond,
regardless of the method of calculating the contribu-
tions made to the plan, the method of calculating
the benefits under the plan, or the method of distrib-
uting benefits from the plan.
‘‘(10) PRINCIPAL STATE.—The term ‘principal
State’ means, for any plan year with respect to a
public employee pension plan, the State in which, as
of the beginning of such plan year, the largest per-
centage of the participants of the plan employed in
any single State is employed.
‘‘(11) 
GOVERNOR.—The 
term 
‘Governor’
means, in connection with a public employee pension
plan, the Governor (or equivalent official) of the
principal State.
‘‘(12) PARTICIPANT.—The term ‘participant’
means any individual who is or may become eligible
to receive a benefit of any type from a public em-
ployee pension plan or whose beneficiaries may be el-
igible to receive any such benefit.
‘‘(13) PERSON.—The term ‘person’ means a
State, a political subdivision of a State, any agency
or instrumentality of a State or a political subdivi-
sion of a State, an individual, a partnership, a joint
venture, a corporation, a mutual company, a joint-
stock company, a trust, an estate, an unincorporated
organization, an association, or an employee organi-
zation.
‘‘(14) PLAN SPONSOR.—The term ‘plan spon-
sor’ means—
‘‘(A) in the case of a plan established or
maintained solely for employees of a single em-
ployer, such employer,
‘‘(B) in the case of a plan established or
maintained by an employee organization, the
employee organization, or
‘‘(C) in the case of a plan established or
maintained by two or more employers or jointly
by one or more employers and one or more em-
ployee organizations, the association, com-
mittee, board of trustees, or other similar group
of representatives of the parties who establish
or maintain the plan.
‘‘(15) PLAN
YEAR.—The term ‘plan year’
means, with respect to a plan, the calendar, policy,
or fiscal year on which the records of the plan are
kept.
‘‘(16) STATE.—The term ‘State’ means any
State of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, the Virgin Is-
lands, American Samoa, and Guam.
‘‘(b) COVERAGE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), this subpart shall apply to any public em-
ployee pension plan.
‘‘(2) EXCEPTIONS FROM COVERAGE.—The pro-
visions of this subpart shall not apply to—
‘‘(A) any employee benefit plan described
in section 4(a) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C.
1003(a)), which is not exempt under section
4(b)(1) of such Act (29 U.S.C. 1003(b)(1)),
‘‘(B) any plan which is unfunded and is
maintained by an employer or employer rep-
resentative primarily for the purpose of pro-
viding deferred compensation for a select group
of management or highly compensated employ-
ees,
‘‘(C) any arrangement which would be a
severance pay arrangement, as defined in regu-
lations of the Secretary of Labor under section
3(2)(B)(i) of the Employee Retirement Income
Security 
Act 
of 
1974 
(29 
U.S.C.
1002(2)(B)(i)), if the employer were an em-
ployer within the meaning of section 3(5) of
such Act (29 U.S.C. 1002(5)),
‘‘(D) any agreement to the extent it is a
coverage agreement entered into pursuant to
section 218 of the Social Security Act (42
U.S.C. 418),
‘‘(E) any individual retirement account or
any individual retirement annuity within the
meaning of section 408, or a retirement bond
within the meaning of section 409,
‘‘(F) any plan described in section 401(d),
‘‘(G) any individual account plan con-
sisting of an annuity contract described in sec-
tion 403(b),
‘‘(H) any eligible State deferred compensa-
tion plan, as defined in section 457(b), or
‘‘(I) any plan maintained solely for the
purpose of complying with applicable workers’
compensation laws or disability insurance
laws.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to plan years begin-
ning on or after January 1, 2002.
TITLE II—PENSION
IMPROVEMENTS
SEC. 201. AUTOMATIC ENROLLMENT OF ALL EMPLOYEES IN
401(k) PLANS.
(a) IN GENERAL.—Subparagraph (A) of section
401(m)(11) of the Internal Revenue Code of 1986 (relat-
ing to additional alternative method of satisfying non-
discrimination tests) is amended by striking ‘‘and’’ at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ‘‘, and’’, and by inserting after
clause (iii) the following new clause:
‘‘(iv) meets the requirements of sub-
paragraph (C).’’.
(b) MINIMUM COVERAGE REQUIREMENTS.—Para-
graph (11) of section 401(m) of such Code is amended
by adding at the end the following new subparagraph:
‘‘(C) 
MINIMUM
COVERAGE
REQUIRE-
MENTS.—The requirements of this subpara-
graph are met if—
‘‘(i) the plan meets the requirements
of section 410(b), or
‘‘(ii) the plan is offered to all eligible
employees.
For purposes of clause (ii) a plan shall be treat-
ed as offered to an eligible employee if, under
the plan, employer contributions are made on
the employee’s behalf under the plan, unless,
pursuant to an election by the employee, pay-
ments are made to the employee directly in cash
in lieu of such employer contributions.’’.
SEC. 202. IMPROVEMENTS IN SIMPLIFIED EMPLOYEE PEN-
SIONS.
(a) PARTICIPATION REQUIREMENTS.—Paragraph (2)
of section 408(k) of the Internal Revenue Code of 1986
(relating to participation requirements) is amended—
(1) in subparagraph (A), by adding ‘‘and’’ at
the end, and
(2) by striking subparagraphs (B) and (C) and
inserting the following:
‘‘(B) has completed at least 3 years of
service (as defined in section 411(a)(5)) for the
employer.’’.
(b) 
NONDISCRIMINATION
RULES.—Subparagraph
(C) of section 408(k)(3) of such Code (requiring contribu-
tion to bear uniform relationship to total compensation)
is amended—
(1) in the heading, by striking ‘‘MUST BEAR
UNIFORM RELATIONSHIP TO TOTAL COMPENSATION’’
and inserting ‘‘MUST BE UNIFORM’’, and
(2) by inserting after ‘‘unless contributions
thereto’’ the following: ‘‘are uniform for all employ-
ees maintaining a simplified employee pension or’’.
(c) CONSENT TO PARTICIPATION NOT REQUIRED.—
Paragraph (2) of section 408(k) of such Code (relating
to participation requirements) is amended by adding at
the end the following new flush sentence: ‘‘An employer
may establish and maintain a simplified employee pension
for an employee without the employee’s consent.’’.
(d) SEPARATE TREATMENT OF CONTRIBUTIONS TO
SIMPLIFIED EMPLOYEE PENSIONS.—Subsection (h) of
section 404 of such Code is amended by striking para-
graphs (2) and (3) and inserting the following new para-
graph:
‘‘(2) LIMITATION BASED ON COMBINATION OF
PLANS
INAPPLICABLE.—Contributions to a sim-
plified employee pension shall not be taken into ac-
count for purposes of subsection (a)(7).’’.
(e) JOINT
AND
SURVIVOR
ANNUITY
REQUIRE-
MENTS.—Section 408(k) of such Code is amended—
(1) by redesignating paragraph (9) as para-
graph (10), and
(2) by inserting after paragraph (8) the fol-
lowing new paragraph:
‘‘(9) JOINT AND SURVIVOR ANNUITY REQUIRE-
MENTS.—Requirements similar to the requirements
of section 401(a)(11) shall apply with respect to an-
nuities purchased with amounts distributed from
simplified employee pensions.’’.
(f) ANNUAL REPORTING REQUIREMENTS FOR SIM-
PLIFIED EMPLOYEE PENSIONS.—Paragraph (1) of section
408(l) of such Code (relating to simplified employer re-
ports) is amended to read as follows:
‘‘(1) IN GENERAL.—The Secretary shall require
by regulations that an employer who makes a con-
tribution on behalf of an employee to a simplified
employee pension shall provide simplified annual re-
ports. The reports required by this subsection shall
be filed in such manner, and information with re-
spect to such contributions shall be furnished to the
employee in such manner, as may be required by
regulations, except that such reports shall include
information sufficient to allow the employee to deter-
mine that the simplified employee pension is in com-
pliance with the requirements of this section.’’.
(g) DEDUCTIBILITY
OF CONTRIBUTIONS
TO SIM-
PLIFIED EMPLOYEE PENSIONS
IN CONNECTION WITH
DOMESTIC SERVICE.—
(1) IN GENERAL.—Section 404 of such Code
(relating to deductions for contributions of an em-
ployer to an employee’s trust or annuity plan and
compensation under a deferred-payment plan) is
amended by adding at the end the following new
subsection:
‘‘(n) DEDUCTIBILITY OF CONTRIBUTIONS TO SIM-
PLIFIED EMPLOYEE PENSIONS
IN CONNECTION WITH
DOMESTIC SERVICE.—
‘‘(1) IN GENERAL.—Solely for purposes of sub-
section (a), contributions by an employer to a sim-
plified employee pension of an employee in connec-
tion with service constituting domestic service em-
ployment shall be treated as if such contributions
would otherwise be deductible under section 162 but
for subsection (a).
‘‘(2) DOMESTIC
SERVICE
EMPLOYMENT.—For
purposes of paragraph (1), the term ‘domestic serv-
ice employment’ means domestic service in a private
home of the employer (within the meaning of the
last sentence of section 3510(c)) in any case in
which taxes are imposed by chapter 21 or 23 on re-
muneration paid for such service.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply to taxable years begin-
ning after December 31, 2001.
SEC. 203. PENSION INTEGRATION RULES.
(a) APPLICABILITY OF NEW INTEGRATION RULES
EXTENDED TO ALL EXISTING ACCRUED BENEFITS.—
Notwithstanding subsection (c)(1) of section 1111 of the
Tax Reform Act of 1986 (relating to effective date of ap-
plication of nondiscrimination rules to integrated plans)
(100 Stat. 2440), effective for plan years beginning after
the date of the enactment of this Act, the amendments
made by subsection (a) of such section 1111 shall also
apply to benefits attributable to plan years beginning on
or before December 31, 1988.
(b) INTEGRATION DISALLOWED
FOR SIMPLIFIED
EMPLOYEE PENSIONS.—
(1) IN GENERAL.—Subparagraph (D) of section
408(k)(3) of the Internal Revenue Code of 1986 (re-
lating to permitted disparity under rules limiting
discrimination under simplified employee pensions)
is repealed.
(2) CONFORMING AMENDMENT.—Subparagraph
(C) of such section 408(k)(3) is amended by striking
‘‘and except as provided in subparagraph (D),’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to taxable
years beginning on or after January 1, 2002.
(c) EVENTUAL REPEAL OF INTEGRATION RULES.—
Effective for plan years beginning on or after January 1,
2003—
(1) subparagraphs (C) and (D) of section
401(a)(5) of the Internal Revenue Code of 1986 (re-
lating to pension integration exceptions under non-
discrimination requirements for qualification) are re-
pealed, and subparagraphs (E), (F), and (G) of such
section 401(a)(5) are redesignated as subparagraphs
(C), (D), and (E), respectively, and
(2) subsection (l) of section 401 of such Code
(relating to permitted disparity in plan contributions
or benefits) is repealed.
SEC. 204. INCREASE TO AGE 75 FOR BEGINNING MANDA-
TORY DISTRIBUTIONS.
(a) QUALIFIED PENSION PLANS.—Subparagraph (C)
of section 401(a)(9) of the Internal Revenue Code of 1986
(relating to required distributions) is amended by striking
‘‘age 701⁄2’’ each place it appears and inserting ‘‘the appli-
cable age’’.
(b) APPLICABLE AGE.—Subparagraph (C) of section
401(a)(9) of such Code is amended by adding at the end
the following new clause:
‘‘(v) APPLICABLE AGE.—
‘‘(I) IN GENERAL.—For purposes
of this clause, the term applicable age
shall be determined in accordance
with the following table:
Applicable
‘‘Calendar Year:
Age:
2002 .........................................................................................
2003 .........................................................................................
2004 .........................................................................................
2005 .........................................................................................
2006 and each calendar year thereafter ..................................
75.
‘‘(II) ELECTION TO USE AGE OF
SPOUSE.—For purposes of this sub-
paragraph, an employee who files a
joint return for a taxable year may
elect to substitute the age of the em-
ployee’s spouse for his age.’’.
(c) INDIVIDUAL RETIREMENT ACCOUNTS.—Para-
graph (1) of section 219(d) of such Code is amended—
(1) by striking ‘‘age 701⁄2’’ in the text and in-
serting ‘‘the applicable age (as defined in section
401(a)(9)(C)(v))’’, and
(2) by striking ‘‘AGE 701⁄2’’ in the heading and
inserting ‘‘THE APPLICABLE AGE’’.
(d) ROTH IRA’S.—Paragraph (4) of section 408A(c)
of such Code is amended—
(1) by striking ‘‘age 701⁄2’’ in the text and in-
serting ‘‘the applicable age (as defined in section
401(a)(9)(C)(v))’’, and
(2) by striking ‘‘AGE 701⁄2’’ in the heading and
inserting ‘‘THE APPLICABLE AGE’’.
SEC. 205. RESTRICTIONS ON EXCLUSION OF UNIONIZED
EMPLOYEES FROM PARTICIPATION IN 401(k)
PLANS.
Paragraph (4) of section 401(k) of the Internal Rev-
enue Code of 1986 (relating to other requirements) is
amended by adding at the end the following new subpara-
graph:
‘‘(D) 
BENEFITS
SUBJECT
OF
BAR-
GAINING.—A cash or deferred arrangement of
any employer shall not be treated as a qualified
cash or deferred arrangement if any employee
of such employer—
‘‘(i) who is described in section
410(b)(3)(A), and
‘‘(ii) who is not eligible to benefit
under the arrangement,
is not otherwise covered under an employee
pension benefit plan (as defined in section
3(2)(A) of the Employee Retirement Income
Security Act of 1974) which is maintained for
employees of such employer pursuant to an
agreement which the Secretary of Labor finds
to be a collective bargaining agreement between
employee representatives and one or more em-
ployers and which is qualified under section
401(a).’’.
SEC. 206. REMOVAL OF $5,000 LIMIT ON PLANS SUBJECT TO
AUTOMATIC ROLLOVER UPON MANDATORY
DISTRIBUTION.
Section 401(a)(31)(B) of the Internal Revenue Code
of 1986 (relating to certain mandatory distributions) is
amended—
(1) in clause (i), by striking ‘‘In case of a trust
which is part of an eligible plan, such trust’’ and in-
serting ‘‘A trust’’,
(2) in clause (i)(I), by striking ‘‘in excess of
$1,000’’, and
(3) by striking clause (ii) and inserting the fol-
lowing new clause:
‘‘(ii) DISTRIBUTION
DESCRIBED.—A
distribution from a plan is described in
this clause if such distribution is an imme-
diate distribution of the entire nonforfeit-
able accrued benefit of the participant and
is in excess of $1,000.’’.
TITLE III—TAX CREDITS TO
PROMOTE PENSION COVERAGE
SEC. 301. REFUNDABLE CREDIT TO CERTAIN INDIVIDUALS
FOR ELECTIVE DEFERRALS AND IRA CON-
TRIBUTIONS.
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to refundable credits) is amended by redes-
ignating section 35 as section 36 and by inserting after
section 34 the following new section:
‘‘SEC. 35. ELECTIVE DEFERRALS AND IRA CONTRIBUTIONS
BY CERTAIN INDIVIDUALS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, there shall be allowed as a credit against
the tax imposed by this subtitle for the taxable year an
amount equal to the applicable percentage of so much of
the qualified retirement savings contributions of the eligi-
ble individual for the taxable year as do not exceed $2,000.
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of
this section, the applicable percentage is the percentage
determined in accordance with the following table:
Adjusted Gross Income
Applica-
ble per-
centage
Joint return
Head of a household
All other cases
Over
Not over
Over
Not over
Over
Not over
$0
$25,000
$0
$18,750
$0
$12,500
25,000
35,000
18,750
26,250
12,500
17,500
35,000
45,000
26,250
33,750
17,500
22,500
45,000
55,000
33,750
41,250
22,500
27,500
55,000
75,000
41,250
56,250
27,500
37,500
75,000
56,250
37,500
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this
section—
‘‘(1) IN
GENERAL.—The term ‘eligible indi-
vidual’ means any individual if—
‘‘(A) such individual has attained the age
of 18 as of the close of the taxable year, and
‘‘(B) the compensation (as defined in sec-
tion 219(f)(1)) includible in the gross income of
the individual (or, in the case of a joint return,
of the taxpayer) for such taxable year is at least
$5,000.
‘‘(2) DEPENDENTS AND FULL-TIME STUDENTS
NOT ELIGIBLE.—The term ‘eligible individual’ shall
not include—
‘‘(A) any individual with respect to whom
a deduction under section 151 is allowable to
another taxpayer for a taxable year beginning
in the calendar year in which such individual’s
taxable year begins, and
‘‘(B) any individual who is a student (as
defined in section 151(c)(4)).
‘‘(3) INDIVIDUALS RECEIVING CERTAIN RETIRE-
MENT DISTRIBUTIONS NOT ELIGIBLE.—
‘‘(A) IN GENERAL.—The term ‘eligible in-
dividual’ shall not include, with respect to a
taxable year, any individual who received during
the testing period—
‘‘(i) any distribution from a qualified
retirement plan (as defined in section
4974(c)), or from an eligible deferred com-
pensation plan (as defined in section
457(b)), which is includible in gross in-
come, or
‘‘(ii) any distribution from a Roth
IRA which is not a qualified rollover con-