Application to programs for payroll deduction contributions to qualified tuition programs and qualified ABLE programs In the case of a qualified payroll deduction contribution program (as defined in section 132(o)(2)) established by an employer— (1) such program shall be treated as an eligible employer plan for purposes of this section, (2) this section (including the limitation of subsection (b)) shall be applied separately with respect to such programs and any other eligible employer plans of the employer, and (3) subsection (d)(1)(A)(ii) shall be applied by substituting education for retirement-related education . . (b) Clerical amendments (1) The heading for section 45E of such Code is amended by striking pension . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 45E and inserting the following new item: Sec. 45E. Small employer plan startup costs. . (c) Effective date The amendments made by this section shall apply to costs paid or incurred in taxable years beginning after the date of the enactment of this Act. 4. Exemptions from additional tax for certain distributions from qualified tuition programs (a) In general Section 529(c)(6) of the Internal Revenue Code of 1986 is amended by striking the last sentence and inserting the following: This paragraph shall not apply to the extent that— (A) a payment or distribution is used (within 90 days of the payment or distribution) to make a payment of interest or principal on a qualified education loan (as defined in section 222(d)(1)) on behalf of the designated beneficiary or a member of the family of such designated beneficiary within the meaning of section 529(e)(2)), or (B) the recipient of a payment or distribution makes (within 90 days of the receipt of the payment or distribution) a contribution to an organization described in section 170(b)(1)(A) (other than any organization described in section 509(a)(3) or any fund or account described in section 4966(d)(2)),