determined by the Secretary under paragraph (3)(A)(ii)) with respect to such withholding. (7) Restricted stock units This section (other than this subsection), including any election under subsection (b), shall not apply to restricted stock units. . (2) Deduction by employer Subsection (h) of section 83 is amended by striking or (d)(2) and inserting (d)(2), or (i) . (b) Withholding (1) Time of withholding Section 3401 is amended by adding at the end the following new subsection: (i) Qualified stock for which an election is in effect under section 83(i) For purposes of subsection (a), qualified stock (as defined in section 83(i)) with respect to which an election is made under section 83(i) shall be treated as wages— (1) received on the earliest date described in section 83(i)(1)(B), and (2) in an amount equal to the amount included in income under section 83 for the taxable year which includes such date. . (2) Amount of withholding Section 3402 is amended by adding at the end the following new subsection: (t) Rate of withholding for certain stock In the case of any qualified stock (as defined in section 83(i)) with respect to which an election is made under section 83(i)— (1) the rate of tax under subsection (a) shall not be less than the maximum rate of tax in effect under section 1, and (2) such stock shall be treated for purposes of section 3501(b) in the same manner as a non-cash fringe benefit. . (c) Coordination with other deferred compensation rules (1) Election to apply deferral to statutory options (A) Incentive stock options Section 422(b) is amended by adding at the end the following: Such term shall not include any option if an election is made under section 83(i) with respect to the stock received in connection with the exercise of such option. . (B) Employee stock purchase plans Section 423(a) is amended by adding at the end the following flush sentence: The preceding sentence shall not apply to any share of stock with respect to which an election is made under section 83(i). . (2) Exclusion from