WAIVER OF TAX ON NONDEDUCTIBLE CONTRIBUTIONS FOR DOMESTIC OR SIMILAR WORKERS.

SEC. 637. WAIVER OF TAX ON NONDEDUCTIBLE CONTRIBUTIONS FOR DOMESTIC OR SIMILAR WORKERS. (a) In General.—Section 4972(c)(6) (relating to exceptions to non deductible contributions), as amended by section 616, is amended by striking “and” at the end of subparagraph (A), by striking the period and inserting or" at the end of subparagraph (B), and by inserting after subparagraph (B) the following new subparagraph: “(C) so much of the contributions to a simple retirement account (within the meaning of section 408(p)) or a simple plan (within the meaning of section 401(k)(11)) which are not deductible when contributed solely because such contributions are not made in connection with a trade or business of the employer.”. (b) Exclusion of Certain Contributions.—Section 4972(c)(6), as amended by subsection (a), is amended by adding at the end the following new sentence: “Subparagraph (C) shall not apply to contributions made on behalf of the employer or a member of the employer’s family (as defined in section 447(e)(1)).”. (c) No Inference.—Nothing in the amendments made by this section shall be construed to infer the proper treatment of nondeductible contributions under the laws in effect before such amendments. (d) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2001.