H.R. 869 (Introduced in House) — To amend the Internal Revenue Code of 1986 to broaden the special rules for certain governmental plans under section 105(j) to include plans established by political subdivisions.

(a)

In general— Section 105(j)(2) of the Internal Revenue Code of 1986 is amended—

(1)

by inserting “or established by or on behalf of a State or political subdivision thereof” after “public retirement system”, and

(2)

by inserting “or 501(c)(9)” after “section 115” in subparagraph (B) thereof.

(b)

Effective date— The amendments made by this section shall apply to payments after the date of the enactment of this Act.

To amend the Internal Revenue Code of 1986 to broaden the special rules for certain governmental plans under section 105(j) to include plans established by political subdivisions.