(iii), an arrangement shall not fail to be treated as meeting the requirements of subparagraph (A)(iii) solely because under the arrangement, solely for purposes of such subparagraph, qualified child care payments are treated as amounts elected by the employee under subparagraph (A)(i)(I) to the extent such payments do not exceed— (I) the applicable dollar amount under subparagraph (E) (after application of section 414(v)) for the year (or, if lesser, the employee’s compensation (as defined in section 415(c)(3)) for the year), reduced by (II) any other amounts elected by the employee under subparagraph (A)(i)(I) for the year. (ii) Qualified child care payment For purposes of this subparagraph, the term qualified child care payment means any payment by an employee of employment-related expenses (within the meaning of section 21(b)(2)). (iii) Applicable rules Clause (i) shall apply to an arrangement only if, under the arrangement— (I) matching contributions on account of qualified child care payments are provided only on behalf of employees otherwise eligible to elect contributions under subparagraph (A)(i)(I), and (II) all employees otherwise eligible to participate in the arrangement are eligible to receive matching contributions on account of qualified child care payments. . (e) 403 (b) plans Subparagraph (A) of section 403(b)(12) of the Internal Revenue Code of 1986 is amended by adding at the end the following: The fact that the employer offers matching contributions on account of qualified child care payments as described in section 401(m)(13) shall not be taken into account in determining whether the arrangement satisfies the requirements of clause (ii) (and any regulation thereunder). . (f) 457 (b) plans Subsection (b) of section 457 of the Internal Revenue Code of 1986 is amended by adding at the end the following: A plan which is established and maintained by an employer which is described in subsection (e)(1)(A) shall not be treated as failing to meet the requirements of this subsection solely because