(1) In general Paragraph (1) of section 4975(e) of such Code (relating to prohibited transactions) is amended by striking or at the end of subparagraph (F), by redesignating subparagraph (G) as subparagraph (H), and by inserting after subparagraph (F) the following new subparagraph: (G) a S.A.F.E. account described in section 224(c), or . (2) Special rule Subsection (c) of section 4975 of such Code is amended by adding at the end the following new paragraph: (7) Special rule for S.A.F.E. accounts An individual for whose benefit a S.A.F.E. account is established shall be exempt from the tax imposed by this section with respect to any transaction concerning such account (which would otherwise be taxable under this section) if section 224(e)(2) applies with respect to such transaction. . (e) Failure To provide reports on S.A.F.E. accounts Paragraph (2) of section 6693(a) of such Code (relating to failure to provide reports on individual retirement accounts or annuities) is amended by striking and at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting , and , and by adding at the end the following new subparagraph: (G) Section 224(h) (relating to S.A.F.E. accounts). . (f) Clerical amendments (1) The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 224 and inserting the following new items: Sec. 224. S.A.F.E. accounts. Sec. 225. Cross references. . (2) The table of sections for chapter 43 of such Code is amended by striking the item relating to section 4973 and inserting the following new item: Sec. 4973. Tax on excess contributions to certain tax-favored accounts and annuities, etc. . 202. Effective date The amendments made by this title shall apply to contributions made for taxable years beginning on or after the first day of the first calendar year beginning after the date of enactment of this Act. III Conforming amendments to the Social Security Act and the Internal Revenue Code of 1986 301.