SECTION 1. TREATMENT OF CERTAIN CONTRIBUTIONS MADE PURSUANT TO 
              VETERANS' REEMPLOYMENT RIGHTS.

    (a) In General.--Section 414 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(u) Special Rules Relating to Veterans' Reemployment Rights.--
            ``(1) Treatment of certain required contributions.--If any 
        contribution is made by an employer under an individual account 
        plan with respect to an employee and such contribution is 
        required 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 failing to 
                meet any requirement of this part or section 457 by 
                reason of the making of such contribution and such 
                contribution shall not be taken into account in 
                applying the limitations referred to in subparagraph 
                (A) to other contributions.
        For purposes of the preceding sentence, any additional elective 
        deferral made under paragraph (2) shall be treated as an 
        employer contribution required by reason of the employee's 
        rights under such chapter 43.
            ``(2) Reemployment rights with respect to elective 
        deferrals.--
                    ``(A) In general.--If an employee is entitled to 
                the benefits of chapter 43 of title 38, United States 
                Code, with respect to any plan which provides for 
                elective deferrals, such employer shall be treated as 
                meeting the requirements 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 subparagraph 
                        (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 
                                qualified military service which 
                                resulted in such rights; and
                            ``(ii) makes a matching contribution in 
                        respect of any additional elective deferral 
                        made pursuant to clause (i) which would have 
                        been required had such deferral actually been 
                        made during the period of such qualified 
                        military service.
                    ``(B) Amount of makeup required.--The amount 
                determined under this subparagraph is the maximum 
                amount of elective deferrals that the individual would 
                have been permitted to make under the plan during his 
                period of qualified military service if he had 
                continued 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 actually 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 section 457(b)).
            ``(3) Loan repayment suspensions permitted.--If any plan 
        suspends the repayment of any loan made to an individual for 
        the period while such individual is performing qualified 
        military service, such suspension shall not be taken into 
        account for purposes of section 72(p).
            ``(4) Qualified military service.--For purposes 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 purposes 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 enacted on such date as part of section 414 of the 
Internal Revenue Code of 1954.
Output: Amends the Internal Revenue Code to prescribe rules regarding limitations on employer contributions under defined contribution plans and eligible deferred compensation plans which are required by reason of veterans' reemployment rights.  Treats an employer of a veteran entitled to such rights as meeting such reemployment requirements if the employer permits certain additional elective deferrals from the date of reemployment and makes a matching contribution which would have been required during the period of military service.