from gross income, and . (b) Conforming amendments (1) Paragraph (1) of section 402A(b) of the Internal Revenue Code of 1986 is amended— (A) by striking may elect to make and inserting “may elect— (A) to make , (B) by striking the period at the end and inserting , and , and (C) by adding at the end the following new subparagraph: (B) in the case of a qualified cash or deferred arrangement (as defined in section 401(k)(2)), to have the employee's employer make designated Roth employer contributions in lieu of all or a portion of the matching or nonelective contributions the employee is otherwise eligible to receive under the arrangement. . (2) Paragraph (2)(A) of section 402A(b) of such Code is amended by striking of each employee and inserting and designated Roth employer contributions with respect to each employee . (3) Subparagraph (B) of section 402A(d)(2) of such Code is amended by inserting , or elected to have made a designated Roth employer contribution, after designated Roth contribution both places it appears in clauses (i) and (ii). (c) Designated Roth employer contribution Subsection (c) of section 402A of the Internal Revenue Code of 1986 is amended— (1) by inserting and designated Roth employer contributions after designated Roth contributions in the heading, and (2) by adding at the end the following new paragraph: (5) Designated Roth employer contribution (A) In general The term designated Roth employer contribution means any contribution described in subparagraph (B) made under a qualified cash or deferred arrangement (as defined in section 401(k)(2)) which— (i) is excludable from gross income of an employee without regard to this section, and (ii) the employee designates (at such time and in such manner as the Secretary may prescribe) as not being so excludable. (B) Contributions described The contributions described in this subparagraph are— (i) matching contributions (as defined in section 401(m)(4)(A)) which meet the requirements of subparagraphs (B) and (C) of section 401(k)(2), and (ii)