MATCHING CONTRIBUTIONS OF SELF-EMPLOYED INDIVIDUALS NOT TREATED AS ELECTIVE EMPLOYER CONTRIBUTIONS.

SEC. 1501. MATCHING CONTRIBUTIONS OF SELF-EMPLOYED INDIVIDUALS NOT TREATED AS ELECTIVE EMPLOYER CONTRIBUTIONS. (a) In General.—Section 402(g) (relating to limitation on exclusion for elective deferrals) is amended by adding at the end the following: “(9) Matching contributions on behalf of selfemployed individuals not treated as elective employer contributions.—Except as provided in section 401(k)(3)(D)(ii), any matching contribution described in section 401(m)(4)(A) which is made on behalf of a self-employed individual (as defined in section 401(c)) shall not be treated as an elective employer contribution under a qualified cash or deferred arrangement (as defined in section 401(k)) for purposes of this title.”. (b) Conforming Amendment for Simple Retirement Accounts.—Section 408(p) (relating to simple retirement accounts) is amended by adding at the end the following: “(8) Matching contributions on behalf of selfemployed individuals not treated as elective employer contributions.—Any matching contribution described in paragraph (2)(A)(iii) which is made on behalf of a self-employed individual (as defined in section 401(c)) shall not be treated as an elective employer contribution to a simple retirement account for purposes of this title.”. (c) Effective Dates.— (1) Elective deferrals.—The amendment made by subsection (a) shall apply to years beginning after December 31, 1997. (2) Simple retirement accounts.—The amendment made by subsection (b) shall apply to years beginning after December 31, 1996.