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TITLE 26-INTERNAL REVENUE CODE (A) the numerator of which is the sum of the annual additions to the participant's ac- count as of the close of the year, and (B) the denominator of which is the sum of the maximum amount of annual addi- tions to such account which could have been made under subsection (c) for such year and for each prior year of service with the employer determined without regard to paragraph (6) of such subsection) 1. (4) Special transition rules for defined contribution fraction In applying paragraph (3) with respect to years beginning before January 1, 1976- (A) the aggregate amount taken into ac- count under paragraph (3)(A) may not exceed the aggregate amount taken into ac- count under paragraph (3)(B), and (B) the amount taken into account under subsection (c)(2)(B)(1) for any year con- cerned is an amount equal to- (i) the excess of the aggregate amount of employee contributions for all years be- ginning before January 1, 1976, during which the employee was an active partici- pant of the plan, over 10 percent of the employee's aggregate compensation for all such years, multiplied by (1i) a fraction the numerator of which is 1 and the denominator of which is the number of years beginning before Janu- ary 1, 1976, during which the employee was an active participant in the plan. Employee contributions made on or after Oc- tober 2, 1973, shall be taken into account under subparagraph (B) of the preceding sen- tence only to the extent that the amount of such contributions does not exceed the maxi- mum amount of contributions permissible under the plan as in effect on October 2, 1973. (5) Special rules for sections 403(b) and 408 For purposes of this section, any annuity contract described in section 403(b) (except in the case of a participant who has elected under subsection (c)(4)(D) to have the provi- sions of subsection (c)(4)(C) apply), any indi- vidual retirement account described in section 408(a), any individual retirement annuity de- scribed in section 408(b), and any retirement bond described in section 409, for the benefit of a participant shall be treated as a defined contribution plan maintained by each em- ployer with respect to which the participant has the control required under subsection (b) or (c) of section 414 (as modified by subsec- tion (h)). In the case of any annuity contract described in section 403(b), the amount of the contribution disqualified by reason of subsec- tion tg) shall reduce the exclusion allowance as provided in section 403(b)(2). (f) Combining of plans (1) In general For purposes of applying the limitations of subsections (b), (c), and (e)- (A) all defined benefit plans (whether or not terminated) of an employer are to be treated as one defined benefit plan, and 'So in original. There is no opening parenthesis. (B) all defined contribution plans (wheth- er or not terminated) of an employer are to be treated as one defined contribution plan. (2) Annual compensation taken into account for defined benefit plans If the employer has more than one defined benefit plan- (A) subsection (b)(1)(B) shall be applied separately with respect to each such plan, but (B) in applying subsection (b)(1)(B) to the aggregate of such defined benefit plans for purposes of this subsection, the high 3 years of compensation taken into account shall be the period of consecutive calendar years (not more than 3) during which the individual had the greatest aggregate com- pensation from the employer. (g) Aggregation of plans The Secretary, in applying the provisions of this section to benefits or contributions under more than one plan maintained by the same employer, and to any trusts, contracts, ac- counts, or bonds referred to in subsection (a)(2), with respect to which the participant has the control required under sectinn 414(b) or (c), as modified by subsection (h), shall, under regulations prescribed by the Secretary, dis- qualify one or more trusts, plans, contracts, ac- counts, or bonds, or any combination thereof until such benefits or contributions do not exceed the limitations contained in this section. In addition to taking into account such other factors as may be necessary to carry out the purposes of subsections (e) and f), the regula- tions prescribed under this paragraph shall pro- vide that no plan which has been terminated shall be disqualified until all other trusts, plans, contracts, accounts, or bonds have been disqualified. (h) 50 percent control For purposes of applying subsections (b) and (M) of section 414 to this section, the phrase "more than 50 percent" shall be substittuted for the phrase "at least 80 percent" each place it appears in section 1563(a)(1). (i) Records not available for rast periods Where for the period before January 1, 1976, or (if later) the first day of the first plan year of the plan, the records necessary for the appli- cation of this section are not available, the Sec- retary may by regulations prescribe alternate methods for determining the amounts to be taken into account for such period. (j) Rgulations; definition of year The Secretary shall prescribe such regula- tions as may be necessary to carry out the pur- poses of this section, including, but not limited to, regulations defining the term "year" for purposes of any provision of this section. (k) Special rules (1) 1 Defined benefit plan and defined contribution plan For purposes of this title, the term "defined contribution plan" or "defined benefit plan" means a defined contribution plan (within the meaning of section 414(i)) or a defined I Section enacted without a subsec. (k)(2). Page 343 § 415