; or (2) the first pay period beginning on or after the contribution beginning date. (b) Contributions The requirements of this subsection are met for a taxable year with respect to contributions to the American Savings Account Fund on behalf of a qualified employee if— (1) Contribution amount With respect to any pay period beginning in such taxable year— (A) In general Except as provided in subparagraphs (B) and (C), such contributions are equal to 3 percent of the compensation of the employee for such period. (B) Coordination with limitations The total contributions to the Fund on behalf of the employee for pay periods in any taxable year do not exceed the contribution limitation described in section 301(b)(3)(C). (C) Election After the first pay period with respect to which a contribution is made with respect to a qualified employee under subsection (a), the qualified employee may elect— (i) to change the percentage of compensation which is contributed to the Fund on behalf of such employee, except that such percentage may not be less than 2 percent or greater than the highest percentage that would not cause total contributions during the taxable year to exceed the limitation under subparagraph (B); or (ii) to discontinue contributions to the Fund and withdraw all contributions previously made through a salary reduction arrangement in the same calendar year other than nonelective contributions made by the employer on behalf of the employee. In the event a qualified employee elects to withdraw all contributions previously made to the Fund under the preceding sentence, the amount of any nonelective contributions made by the employer on behalf of the employee shall be withdrawn and paid to the employer. (D) Contributions may be made through salary reduction arrangement Contributions by an employer shall not fail to meet the requirements of this subsection solely because the employee may elect to have the employer make payments— (i) to the American Savings Account of the employee