OPTIONAL TREATMENT OF EMPLOYER MATCHING OR NONELECTIVE CONTRIBUTIONS AS ROTH CONTRIBUTIONS.

SEC. 604. OPTIONAL TREATMENT OF EMPLOYER MATCHING OR NONELECTIVE CONTRIBUTIONS AS ROTH CONTRIBUTIONS.(a) In General.—Section 402A(a) is amended by redesignating paragraph (2) as paragraph (4), by striking “and” at the end of paragraph (1), and by inserting after paragraph (1) the following new paragraphs:“(2) any designated Roth contribution which pursuant to the program is made by the employer on the employee’s behalf on account of the employee’s contribution, elective deferral, or (subject to the requirements of section 401(m)(13)) qualified student loan payment shall be treated as a matching contribution for purposes of this chapter, except that such contribution shall not be excludable from gross income, “(3) any designated Roth contribution which pursuant to the program is made by the employer on the employee’s behalf and which is a nonelective contribution shall be nonforfeitable and shall not be excludable from gross income, and” . (b) Matching Included in Qualified Roth Contribution Program.—Section 402A(b)(1) is amended—(1) by inserting “, or to have made on the employee’s behalf,” after “elect to make”, and (2) by inserting “, or of matching contributions or nonelective contributions which may otherwise be made on the employee’s behalf,” after “otherwise eligible to make”. (c) Designated Roth Matching Contributions.—Section 402A(c)(1) is amended by inserting “, matching contribution, or nonelective contribution” after “elective deferral”. (d) Matching Contribution Defined.—Section 402A(f), as redesignated by this Act, is amended by adding at the end the following:“(3) Matching contribution.—The term ‘matching contribution’ means—136 STAT. 5393“(A) any matching contribution described in section 401(m)(4)(A), and “(B) any contribution to an eligible deferred compensation plan (as defined in section 457(b)) by an eligible employer described in section 457(e)(1)(A) on behalf of an employee and on account of such employee’s elective deferral under such plan, but only if such contribution is nonforfeitable at the time received.” . (e) Effective Date.—The amendments made by this section shall apply to contributions made after the date of the enactment of this Act.