TREATMENT OF CERTAIN INCOME OF AUTHORS, INVENTORS, ETC., AS EARNED INCOME FOR RETIREMENT PLAN PURPOSES.

SEC. 205. TREATMENT OF CERTAIN INCOME OF AUTHORS, INVENTORS, ETC., AS EARNED INCOME FOR RETIREMENT PLAN PURPOSES. (a) Income From Disposition of Property Created by Tax-payer.— Section 401(c)(2) (relating to definition of earned income) is amended by adding at the end thereof the following new subparagraph: “(C) Income from disposition of certain property.— For purposes of this section, the term ‘earned income’ includes gains (other than any gain which is treated under any provision of this chapter as gain from the sale or exchange of a capital asset) and net earnings derived from the sale or other disposition of, the transfer of any interest in, or the licensing of the use of property (other than good will) by an individual whose personal efforts created such property. (b) Effective Date.— The amendment made by subsection (a) shall apply to taxable years ending after the date of the enactment of this Act.