Certain railroad retirement benefits treated as received under employer plans

Notwithstanding any other provision of law, any benefit provided under the Railroad Retirement Act of 1974 (other than a tier 1 railroad retirement benefit) shall be treated for purposes of this title as a benefit provided under an employer plan which meets the requirements of section 401(a).

(A) In general For purposes of paragraph (1)— (i) the tier 2 portion of the tax imposed by section 3201 (relating to tax on employees) shall be treated as an employee contribution, (ii) the tier 2 portion of the tax imposed by section 3211 (relating to tax on employee representatives) shall be treated as an employee contribution, and (iii) the tier 2 portion of the tax imposed by section 3221 (relating to tax on employers) shall be treated as an employer contribution.

(B) Tier 2 portion For purposes of subparagraph (A)— (i) After 1984 With respect to compensation paid after 1984, the tier 2 portion shall be the taxes imposed by sections 3201(b), 3211(b), and 3221(b). (ii) After September 30, 1981 , and before 1985 With respect to compensation paid before 1985 for services rendered after September 30, 1981 , the tier 2 portion shall be— (I) so much of the tax imposed by section 3201 as is determined at the 2 percent rate, and (II) so much of the taxes imposed by sections 3211 and 3221 as is determined at the 11.75 percent rate. With respect to compensation paid for services rendered after December 31, 1983 , and before 1985, subclause (I) shall be applied by substituting “2.75 percent” for “2 percent”, and subclause (II) shall be applied by substituting “12.75 percent” for “11.75 percent”. (iii) Before October 1, 1981 With respect to compensation paid for services rendered during any period before October 1, 1981 , the tier 2 portion shall be the excess (if any) of— (I) the tax imposed for such period by section 3201, 3211, or 3221, as the case may be (other than any tax imposed with respect to man-hours), over (II) the tax which would have been imposed by such section for such period had the rates of the comparable taxes imposed by chapter 21 for such period applied under such section.

(C) Contributions not allocable to supplemental annuity or windfall benefits For purposes of paragraph (1), no amount treated as an employee contribution under this paragraph shall be allocated to— (i) any supplemental annuity paid under section 2(b) of the Railroad Retirement Act of 1974, or (ii) any benefit paid under section 3(h), 4(e), or 4(h) of such Act.