‘‘(1) TREATMENT OF CERTAIN REQUIRED CON-
TRIBUTIONS.—If any contribution is made by an
employer under an individual account plan with re-
spect to an employee and such contribution is re-
quired by reason of such employee’s rights under
chapter 43 of title 38, United States Code, resulting
from qualified military service—
‘‘(A) such contribution shall not be subject
to any otherwise applicable limitation contained
in section 402(g), 403(b), 404(a), 408, 415, or
457, and
‘‘(B) such plan shall not be treated as fail-
ing to meet any requirement of this part or sec-
tion 457 by reason of the making of such con-
tribution and such contribution shall not be
taken into account in applying the limitations
referred to in subparagraph (A) to other con-
tributions.
For purposes of the preceding sentence, any addi-
tional elective deferral made under paragraph (2)
shall be treated as an employer contribution required
by reason of the employee’s rights under such chap-
ter 43.
‘‘(2) REEMPLOYMENT RIGHTS WITH RESPECT
TO ELECTIVE DEFERRALS.—
‘‘(A) IN GENERAL.—If an employee is enti-
tled to the benefits of chapter 43 of title 38,
United States Code, with respect to any plan
which provides for elective deferrals, such em-
ployer shall be treated as meeting the require-
ments of such chapter 43 with respect to such
elective deferrals if such employer—
‘‘(i) permits such employee to make
additional elective deferrals under such
plan (in the amount determined under sub-
paragraph (B)) during the period which
begins on the date of the reemployment
and whose duration is the lesser of—
‘‘(I) 5 years; or
‘‘(II) 3 times the period of quali-
fied military service which resulted in
such rights; and
‘‘(ii) makes a matching contribution
in respect of any additional elective defer-
ral made pursuant to clause (i) which
would have been required had such defer-
ral actually been made during the period of
such qualified military service.
‘‘(B) AMOUNT OF MAKEUP REQUIRED.—
The amount determined under this subpara-
graph is the maximum amount of elective defer-
rals that the individual would have been per-
mitted to make under the plan during his pe-
riod of qualified military service if he had con-
tinued to be employed by the employer during
such period and received compensation at the
rate computed in accordance with section
4318(b)(3) of title 38. Proper adjustment shall
be made to the amount determined under the
preceding sentence for any elective deferrals ac-
tually made during the period of such qualified
military service.
‘‘(C) ELECTIVE DEFERRAL.—For purposes
of this paragraph, the term ‘elective deferral’
has the meaning given to such term by section
402(g)(3); except that such term shall include
any deferral of compensation under an eligible
deferred compensation plan (as defined in sec-
tion 457(b)).
‘‘(3) LOAN
REPAYMENT
SUSPENSIONS
PER-
MITTED.—If any plan suspends the repayment of
any loan made to an individual for the period while
such individual is performing qualified military serv-
ice, such suspension shall not be taken into account
for purposes of section 72(p).
‘‘(4) QUALIFIED MILITARY SERVICE.—For pur-
poses of this subsection, the term ‘qualified military
service’ means any service in the uniformed services
(as defined in chapter 43 of title 38, United States
Code) by any individual if such individual is entitled
to reemployment rights under such chapter 43, with
respect to such service.
‘‘(5) INDIVIDUAL
ACCOUNT
PLAN.—For pur-
poses of this subsection, the term ‘individual account
plan’ means any defined contribution plan and any
eligible deferred compensation plan (as defined in
section 457(b)).’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect as of September 2, 1974,
and shall apply to plans as if such amendment were en-
acted on such date as part of section 414 of the Internal
Revenue Code of 1954.
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