; (2) by striking the period at the end of clause (viii) and inserting , or ; and (3) by adding at the end the following new clause: (ix) attributable to withdrawal of interest or other income earned on excess contributions to an individual retirement arrangement. . (b) Repeal of tax disqualification penalty (1) In general Paragraph (2) of subsection (e) of section 408 of the Internal Revenue Code of 1986 is repealed. (2) Conforming amendments (A) Section 408(e)(1) of such Code is amended by striking (2) or . (B) Sections 220(e)(2), 223(e)(2), and 530(e) of such Code are amended by striking paragraphs (2) and (4) of section 408(e) each place it appears and inserting paragraph (4) of section 408(e) . (C) Section 4975(c)(3) of such Code is amended by striking the account ceases to be an individual retirement account by reason of the application of section 408(e)(2)(A) or if . (c) Statute of limitations Subsection (l) of section 6501 of the Internal Revenue Code of 1986 is amended— (1) in paragraph (1), by inserting (other than for individual retirement arrangements) after section 4975