Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Women's Investment and Savings
Equity Act of 1999''.

SEC. 2. INDIVIDUALS MAY MAKE CONTRIBUTIONS FOR PERIODS OF MATERNITY OR
PATERNITY LEAVE.

(a) In General.--Section 414 of the Internal Revenue Code of 1986
(relating to definitions and special rules) is amended by adding at the
end the following:
''(v) Right To Make Contributions With Respect to Periods of
Maternity and Paternity Leave.--
''(1) In general.--For purposes of this title--
''(A) a trust which forms part of a plan shall not
constitute a qualified trust under section 401(a),
''(B) a plan shall not be treated as described in
section 403(b),
''(C) a plan shall not be treated as an eligible
deferred compensation plan under section 457, and
''(D) an arrangement shall not be treated as
meeting the requirements of section 408 (k) or (p),
unless such plan or arrangement permits participants who were
on eligible maternity or paternity leave to make additional
elective deferrals under the plan or arrangement with respect
to periods of such leave.
''(2) Treatment of contributions.--
''(A) In general.--In the case of any contribution
to a plan under paragraph (1) (and any employer
matching contribution with respect thereto)--
''(i) such contribution shall not, with
respect to the year in which the contribution
is made--
''(I) be subject to any otherwise
applicable limitation contained in
section 402(g), 402(h), 403(b), 404(a),
404(h), 408, 415, or 457, or
''(II) be taken into account in
applying such limitations to other
contributions or benefits under such
plan or any other such plan,
''(ii) such contribution shall be subject
to the limitations referred to in clause (i)
with respect to the year to which the
contribution relates (in accordance with rules
prescribed by the Secretary), and
''(iii) except as provided in subparagraph
(B)(i), such plan shall not be treated as
failing to meet the requirements of section
401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11),
401(k)(12), 401(m), 403(b)(12), 408(k), 408(p),
410(b), or 416 by reason of the making of (or
the right to make) such contribution.
''(B) Matching contributions.--Nothing in
subparagraph (A) shall require an employer to make any
matching contribution with respect to any additional
elective deferrals under paragraph (1), but if the
employer elects to make any such matching
contribution--
''(i) the requirements of section 401(a)(4)
shall be applied separately to all such
matching contributions made during a year, and
''(ii) the amount of any such matching
contribution may not exceed the maximum amount
which could have been made under the plan had
the elective deferral actually been made during
the period of eligible maternity and paternity
leave.
''(3) Amount and timing of elective deferrals.--A plan
shall not be treated as meeting the requirements of paragraph
(1) unless the plan provides the following:
''(A) Amount.--The amount of any elective deferral
under paragraph (1) which any employee is permitted to
make with respect to any period of eligible maternity and paternity
leave shall not exceed the maximum amount of the elective deferrals
that the employee would have been permitted to make during such period
in accordance with the limitation referred to in paragraph (2)(A)(i) if
the individual--
''(i) had not been on eligible maternity
and paternity leave during such period, and
''(ii) had received compensation in an
amount determined under rules similar to the
rules under subsection (u)(7).
Proper adjustment shall be made to the amount
determined under the preceding sentence for any
elective deferrals actually made during such period.
''(B) Timing.--An employee may make an elective
deferral to which paragraph (1) applies at any time
during the 3-year period beginning on the date on which
the eligible maternity or paternity leave ends. Any
matching contribution with respect to any such elective
deferral shall be made not later than the due date
(including extensions) for the filing of the employer's
return for the taxable year in which such elective
deferral is made.
''(4) Eligible maternity and paternity leave.--For purposes
of this subsection--
''(A) In general.--The term 'eligible maternity or
paternity leave' means any absence of an individual
from work for any period--
''(i) by reason of the pregnancy of the
individual,
''(ii) by reason of the birth of a child of
the individual,
''(iii) by reason of the placement of a
child with the individual in connection with
the adoption of the child by the individual, or
''(iv) for purposes of caring for such
child for a period beginning immediately
following such birth or placement.
''(B) Limitation.--Such period may not exceed 12
months with respect to any child.
''(5) Other definitions and rules.--For purposes of this
subsection--
''(A) Elective deferral.--The term 'elective
deferral' has the meaning given such term by subsection
(u)(2)(C). Such term shall also include any after-tax
employee contributions described in subsection
(u)(2)(D).
''(B) Plan.--The term 'plan' includes any
arrangement under section 408 (k) or (p).
''(C) Certain retroactive adjustments not
required.--For purposes of this subchapter and
subchapter E, the rules of subsection (u)(3) shall
apply.
''(D) Loan repayment suspensions permitted.--In the
case of any plan or arrangement to which paragraph (1)
applies, the rules of subsection (u)(4) shall apply to
any loan repayment suspension during any period of
eligible maternity and paternity leave.''
(b) Effective Date.--The amendment made by this section shall apply
to periods of eligible maternity and paternity leave beginning after
December 31, 1999.

SEC. 3. CATCHUP CONTRIBUTIONS FOR FAMILIES WITH CHILDREN NOT COVERED BY
A PENSION PLAN.

(a) In General.--Section 414 of the Internal Revenue Code of 1986
(relating to definitions and special rules), as amended by section 2,
is amended by adding at the end the following:
''(w) Catchup Contributions for Families With Children Not Covered
by a Pension Plan.--
''(1) In general.--For purposes of this title--
''(A) a trust which forms part of a plan shall not
constitute a qualified trust under section 401(a),
''(B) a plan shall not be treated as described in
section 403(b),
''(C) a plan shall not be treated as an eligible
deferred compensation plan under section 457, and
''(D) an arrangement shall not be treated as
meeting requirements of section 408 (k) or (p),
unless such plan or arrangement permits eligible participants
to make additional elective deferrals under the plan or
arrangement in accordance with paragraph (2).
''(2) Catchup contributions.--
''(A) In general.--A plan shall permit an eligible
participant to make the additional elective deferrals
under paragraph (1) in any year which is certified as a
catchup year by the participant under subparagraph (E).
''(B) Limitation on amount of additional
deferrals.--A plan shall not permit additional elective
deferrals under paragraph (1) for any year in an amount
greater than the lesser of--
''(i) the amount of the elective deferrals
the participant may otherwise make under the
plan for such year (determined without regard
to this subsection, subsection (u), or any
limitation described in subparagraph (C)(i)),
or
''(ii) the excess (if any) of--
''(I) 120 percent of the dollar
limitation in effect under section
402(g), 408(p), or 457(b)(2)(A),
whichever is applicable, for taxable
years beginning in the calendar year in
which the plan year begins, over
''(II) any other elective deferrals
of the participant for such year which
are made without regard to this
subsection.
''(C) Treatment of contributions.--In the case of
any contribution to a plan under paragraph (1) (and any
employer matching contribution with respect thereto)--
''(i) such contribution shall not, with
respect to the year in which the contribution
is made--
''(I) be subject to any otherwise
applicable limitation contained in
section 402(g), 402(h), 403(b), 404(a),
404(h), 408, 415, or 457, or
''(II) be taken into account in
applying such limitations to other
contributions or benefits under such
plan or any other such plan, and
''(ii) except as provided in subparagraph
(D)(i), such plan shall not be treated as
failing to meet the requirements of section
401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11),
401(k)(12), 401(m), 403(b)(12), 408(k), 408(p),
410(b), or 416 by reason of the making of (or
the right to make) such contribution.
''(D) Matching contributions.--Nothing in
subparagraph (A) shall require an employer to make any
matching contribution with respect to any additional
elective deferrals under paragraph (1) for any year,
but if the employer elects to make any such matching
contribution--
''(i) the requirements of section 401(a)(4)
shall be applied separately to all such
matching contributions made during a year, and
''(ii) the amount of any such matching
contribution may not exceed the maximum amount
which could have been made under the terms of
the plan in effect for elective deferrals made
for such year without regard to this
subsection.
''(E) Certification of catchup years.--
''(i) In general.--A participant making
additional elective deferrals under paragraph
(1) for any year shall certify to the plan
administrator that--
''(I) the participant is an
eligible participant, and
''(II) the year is a catchup year.
''(ii) Catchup year.--An eligible
participant may certify 1 or more years as
catchup years, except that the total number of
years which may be certified shall not exceed
the excess (if any) of--
''(I) the number of years (not in
excess of 18) described in paragraph
(3) occurring before the year in
question, over
''(II) the number of years
previously certified by the participant
under this subsection.
''(iii) Plans not responsible for
certification failures.--A plan shall not be
treated as failing to meet the requirements of
this subsection by reason of reliance on an
incorrect certification under this subparagraph
unless the plan administrator knew, or
reasonably should have known, that the
certification was incorrect.
''(3) Eligible participant.--For purposes of this
subsection, the term 'eligible participant' means, with respect
to any year, a participant in a plan who, for any calendar year
before the calendar year in which the year begins--
''(A) was not an active participant (within the
meaning of section 219(g)(5)) for any plan year
beginning in the calendar year, and
''(B) had a child or stepchild who had not attained
age 18 with respect to whom a deduction was allowed
under section 151 to the participant (or the
participant's spouse) for a taxable year beginning in
the calendar year.
''(4) Other definitions and rules.--For purposes of this
subsection--
''(A) Elective deferral.--The term 'elective
deferral' has the meaning given such term by subsection
(u)(2)(C). Such term shall also include after-tax
employee contributions described in subsection
(u)(2)(D).
''(B) Plan.--The term 'plan' includes any
arrangement under section 408 (k) or (p).
''(C) Certain retroactive adjustments not
required.--For purposes of this subchapter and
subchapter E, the rules of subsection (u)(3) shall
apply.''
(b) Effective Date.--The amendment made by this section shall apply
to contributions in taxable years beginning after December 31, 1999.
Student:
Women's Investment and Savings Equity Act of 1999 - Amends the Internal Revenue Code to permit retirement contributions to be made for periods during which individuals were on leave for maternity or paternity leave.
Permits "catchup contributions" by parents returning to work after periods of nonparticipation in a plan. Defines "catchup contributions."