; (2) by striking the period at the end of clause (viii) and inserting , or ; and (3) by inserting after clause (viii) the following new clause: (ix) attributable to withdrawal of interest or other income earned on excess contributions (as defined in section 4973(b) (without regard to the second to last sentence thereof)) to an individual retirement plan. . (b) Repeal of tax disqualification penalty (1) In general Paragraph (2) of section 408(e) of the Internal Revenue Code of 1986 is repealed. (2) Conforming amendments (A) Section 408(e)(1) of the Internal Revenue Code of 1986 is amended by striking (2) or . (B) Sections 220(e)(2), 223(e)(2), and 530(e) of the Internal Revenue Code of 1986 are each amended by striking paragraphs (2) and (4) of section 408(e) and inserting section 408(e)(4) . (C) Section 4975(c)(3) of the Internal Revenue Code of 1986 is amended by striking the account ceases to be an individual retirement account by reason of the application of section 408(e)(2)(A) or if . (c) Statute of limitations Section 6501(l) of the Internal Revenue Code of 1986 is amended— (1) in paragraph (1), by inserting (other than with respect to an individual retirement plan) after section 4975