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PUBLIC LAW 98-21—APR. 20, 1983 97 STAT. 123 "(F) under or to an exempt governmental deferred com- pensation plan (as defined in subsection (v)(3)), or "(G) to supplement pension benefits under a plan or trust described in any of the foregoing provisions of this para- graph to take into account some portion or all of the increase in the cost of living (as determined by the Secre- tary of Labor) since retirement but only if such supplemen- tal payments are under a plan which is treated as a welfare plan under section 3(2)(B)(ii) of the Employee Retirement Income Security Act of 1974;". 29 use 1002. (3) Subsection (a) of section 3121 of such Code (defining wages) is 26 use 3121. amended— (A) in paragraph (2), by striking out subparagraph (A) and redesignating subparagraphs (B), (C), and (D) as subparagraphs (A), (B), and (C), respectively, (B) by striking out paragraphs (3) and (9), (C) in paragraph (13)(A)— (i) by inserting "or" after "death,", and (ii) by striking out "or (iii) retirement after attaining an age specified in the plan referred to in subparagraph (B) or in a pension plan of the employer,", and (D) by striking out "subparg^graph (B)" in the last sentence thereof and inserting in lieu thereof "subparagraph (A)". (b)(1) Section 3306 of the Internal Revenue Code of 1954 (relating 26 use 3306. to definitions) is amended by adding at the end thereof the following new subsection: "(r) TREATMENT OF CERTAIN DEFERRED COMPENSATION AND SALARY REDUCTION ARRANGEMENTS.— "(1) CERTAIN EMPLOYER CONTRIBUTIONS TREATED AS WAGES.— Nothing in any paragraph of subsection Ot)) (other than para- graph (1)) shall exclude from the term 'wages'— "(A) any employer contribution under a qualified cash or deferred arrangement (as defined in section 401(k)) to the extent not included in gross income by reason of section 402(a)(8), or "(B) any amount treated as an employer contribution under section 414(hX2). "(2) TREATMENT OF CERTAIN NONQUAUFIED DEFERRED COMPEN- SATION PLANS.— "(A) IN GENERAL.—Any amount deferred under a non- qualified deferred compensation plan shall be taken into account for purposes of this chapter as of the later of^ "(i) when the services are performed, or "(ii) when there is no substantial risk of forfeiture of the rights to such amount. "(B) TAXED ONLY ONCE.—Any amount taken into account as wages by reason of subparagraph (A) (and the income attributable thereto) shall not thereafter be treated as wages for purposes of this chapter. "(C) NONQUAUFIED DEFERRED COMPENSATION PLAN.—For purposes of this paragraph, the term 'nonqualified deferred compensation plan' means any plan or other arrangement for deferral of compensation other than a plan described in subsection Ot)X5)." (2) Paragraph (5) of section 33060t)) of such Code (defining wages) is amended— (A) by striking out "or" at the end of subparagraph (C),