Amends the Internal Revenue Code to: (1) prohibit applying certain provisions concerning the maximum amount which may be deferred under deferred compensation plans of State and local governments and tax-exempt organizations to any qualified excess benefit arrangement of a qualified medical entity; and (2) exclude benefits provided under such an arrangement from being used to determine whether any other plan is an eligible deferred compensation plan and the amount which may be deferred under such other plan. Exempts plans maintained by tax-exempt qualified medical entities from the reduction of the limit under such provisions for other elective deferrals. Limits the maximum amount of compensation of any one participant which may be deferred under a qualified excess benefit arrangement to an amount not to exceed the lesser of: (1) $25,000; or (2) 33 and one-third percent of the participant's includible compensation. Defines "qualified excess benefit arrangement."
[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2452 Introduced in House (IH)]
104th CONGRESS
1st Session
H. R. 2452
To amend the Internal Revenue Code of 1986 to provide for the treatment
of excess benefit arrangements of certain tax-exempt group medical
practices, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 10, 1995
Ms. Dunn of Washington (for herself, Mr. Shaw, Mr. Blute, Mr. Ehlers,
Mr. Knollenberg, Mr. Torkildsen, and Mr. LaTourette) 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 for the treatment
of excess benefit arrangements of certain tax-exempt group medical
practices, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TREATMENT OF EXCESS BENEFIT ARRANGEMENTS OF CERTAIN TAX-
EXEMPT GROUP MEDICAL PRACTICES.
Subsection (e) of section 457 of the Internal Revenue Code of 1986
(relating to deferred compensation plans of State and local governments
and tax-exempt organizations) is amended by adding at the end the
following new paragraph:
``(14) Excess benefit arrangements of certain group medical
practices.--
``(A) In general.--Subsections (b)(2) and (c)(1)
shall not apply to any qualified excess benefit
arrangement, and benefits provided under such an
arrangement shall not be taken into account in
determining whether any other plan is an eligible
deferred compensation plan and the amount which may be
deferred under subsection (a) under such other plan.
``(B) Limitation.--The maximum amount of
compensation of any one participant which may be
deferred under subsection (a) during any taxable year
under a qualified excess benefit arrangement shall not
exceed the lesser of--
``(i) $25,000, or
``(ii) 33\1/3\ percent of the participant's
includible compensation.
``(C) Qualified excess benefit arrangement.--For
purposes of this paragraph, the term `qualified excess
benefit arrangement' means a portion of a plan if--
``(i) the plan is maintained by a qualified
medical entity which is described in section
501(c)(3) and exempt from tax under section
501(a), and
``(ii) such portion is so maintained solely
for the purpose of providing to participants in
the plan that part of the participant's annual
benefit otherwise payable under the terms of
the plan that exceeds the limitations on
benefits imposed by section 415.
``(D) Qualified medical entity.--For purposes of
subparagraph (C), the term `qualified medical entity'
means--
``(i) any group medical practice, and
``(ii) any integrated health care delivery
system which employs groups of physicians to
provide clinical services.''
SEC. 2. PLANS OF QUALIFIED MEDICAL ENTITIES EXEMPT FROM REDUCTION OF
LIMIT UNDER SECTION 457 FOR OTHER ELECTIVE DEFERRALS.
The last sentence of paragraph (2) of section 457(c) of the
Internal Revenue Code of 1986 is amended by inserting before the period
``or in a plan maintained by a qualified medical entity (as defined in
subsection (e)(14)) which is described in section 501(c)(3) and exempt
from tax under section 501(a)''.
SEC. 3. COST-OF-LIVING ADJUSTMENTS OF DEFERRAL LIMITS UNDER SECTION
457.
Subsection (e) of section 457 of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(15) Cost-of-living adjustment of maximum deferral
amount.--The Secretary shall adjust the dollar amounts
specified in subsections (b)(2) and (c)(1), and in paragraph
(14) of this subsection, at the same time and in the same
manner as under section 415(d), except that the base period in
applying such section for purposes of this paragraph shall be
the calendar quarter beginning October 1, 1994.''
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act shall apply to taxable years
beginning after December 31, 1994.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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