From the U.S. Code Online via GPO Access
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[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and February 12, 2003]
[CITE: 26USC401]
TITLE 26--INTERNAL REVENUE CODE
Subtitle A--Income Taxes
CHAPTER 1--NORMAL TAXES AND SURTAXES
Subchapter D--Deferred Compensation, Etc.
PART I--PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC.
Subpart A--General Rule
Sec. 401. Qualified pension, profit-sharing, and stock bonus
plans
(a) Requirements for qualification
A trust created or organized in the United States and forming part
of a stock bonus, pension, or profit-sharing plan of an employer for the
exclusive benefit of his employees or their beneficiaries shall
constitute a qualified trust under this section--
(1) if contributions are made to the trust by such employer, or
employees, or both, or by another employer who is entitled to deduct
his contributions under section 404(a)(3)(B) (relating to deduction
for contributions to profit-sharing and stock bonus plans), or by a
charitable remainder trust pursuant to a qualified gratuitous
transfer (as defined in section 664(g)(1)), for the purpose of
distributing to such employees or their beneficiaries the corpus and
income of the fund accumulated by the trust in accordance with such
plan;
(2) if under the trust instrument it is impossible, at any time
prior to the satisfaction of all liabilities with respect to
employees and their beneficiaries under the trust, for any part of
the corpus or income to be (within the taxable year or thereafter)
used for, or diverted to, purposes other than for the exclusive
benefit of his employees or their beneficiaries (but this paragraph
shall not be construed, in the case of a multiemployer plan, to
prohibit the return of a contribution within 6 months after the plan
administrator determines that the contribution was made by a mistake
of fact or law (other than a mistake relating to whether the plan is
described in section 401(a) or the trust which is part of such plan
is exempt from taxation under section 501(a), or the return of any
withdrawal liability payment determined to be an overpayment within
6 months of such determination).; \1\
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\1\ So in original. Period before semicolon probably should be a
closing parenthesis.
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(3) if the plan of which such trust is a part satisfies the
requirements of section 410 (relating to minimum participation
standards); and
(4) if the contributions or benefits provided under the plan do
not discriminate in favor of highly compensated employees (within
the meaning of section 414(q)). For purposes of this paragraph,
there shall be excluded from consideration employees described in
section 410(b)(3)(A) and (C).
(5) Special rules relating to nondiscrimination requirements.--
(A) Salaried or clerical employees.--A classification shall
not be considered discriminatory within the meaning of paragraph
(4) or section 410(b)(2)(A)(i) merely because it is limited to
salaried or clerical employees.
(B) Contributions and benefits may bear uniform relationship
to compensation.--A plan shall not be considered discriminatory
within the meaning of paragraph (4) merely because the
contributions or benefits of, or on behalf of, the employees
under the plan bear a uniform relationship to the compensation
(within the meaning of section 414(s)) of such employees.
(C) Certain disparity permitted.--A plan shall not be
considered discriminatory within the meaning of paragraph (4)
merely because the contributions or benefits of, or on behalf
of, the employees under the plan favor highly compensated
employees (as defined in section 414(q)) in the manner permitted
under subsection (l).
(D) Integrated defined benefit plan.--
(i) In general.--A defined benefit plan shall not be
considered discriminatory within the meaning of paragraph
(4) merely because the plan provides that the employer-
derived accrued retirement benefit for any participant under
the plan may not exceed the excess (if any) of--
(I) the participant's final pay with the employer,
over
(II) the employer-derived retirement benefit created
under Federal law attributable to service by the
participant with the employer.
For purposes of this clause, the employer-derived retirement
benefit created under Federal law shall be treated as
accruing ratably over 35 years.
(ii) Final pay.--For purposes of this subparagraph, the
participant's final pay is the compensation (as defined in
section 414(q)(4)) paid to the participant by the employer
for any year--
(I) which ends during the 5-year period ending with
the year in which the participant separated from service
for the employer, and
(II) for which the participant's total compensation
from the employer was highest.
(E) 2 or more plans treated as single plan.--For purposes of
determining whether 2 or more plans of an employer satisfy the
requirements of paragraph (4) when considered as a single plan--
(i) Contributions.--If the amount of contributions on
behalf of the employees allowed as a deduction under section
404 for the taxable year with respect to such plans, taken
together, bears a uniform relationship to the compensation
(within the meaning of section 414(s)) of such employees,
the plans shall not be considered discriminatory merely
because the rights of employees to, or derived from, the
employer contributions under the separate plans do not
become nonforfeitable at the same rate.
(ii) Benefits.--If the employees' rights to benefits
under the separate plans do not become nonforfeitable at the
same rate, but the levels of benefits provided by the
separate plans satisfy the requirements of regulations
prescribed by the Secretary to take account of the
differences in such rates, the plans shall not be considered
discriminatory merely because of the difference in such
rates.
(F) Social security retirement age.--For purposes of testing
for discrimination under paragraph (4)--
(i) the social security retirement age (as defined in
section 415(b)(8)) shall be treated as a uniform retirement
age, and
(ii) subsidized early retirement benefits and joint and
survivor annuities shall not be treated as being unavailable
to employees on the same terms merely because such benefits
or annuities are based in whole or in part on an employee's
social security retirement age (as so defined).
(G) State and local governmental plans.--Paragraphs (3) and
(4) shall not apply to a governmental plan (within the meaning
of section 414(d)) maintained by a State or local government or
political subdivision thereof (or agency or instrumentality
thereof).
(6) A plan shall be considered as meeting the requirements of
paragraph (3) during the whole of any taxable year of the plan if on
one day in each quarter it satisfied such requirements.
(7) A trust shall not constitute a qualified trust under this
section unless the plan of which such trust is a part satisfies the
requirements of section 411 (relating to minimum vesting standards).
(8) A trust forming part of a defined benefit plan shall not
constitute a qualified trust under this section unless the plan
provides that forfeitures must not be applied to increase the
benefits any employee would otherwise receive under the plan.
(9) Required distributions.--
(A) In general.--A trust shall not constitute a qualified
trust under this subsection unless the plan provides that the
entire interest of each employee--
(i) will be distributed to such employee not later than
the required beginning date, or
(ii) will be distributed, beginning not later than the
required beginning date, in accordance with regulations,
over the life of such employee or over the lives of such
employee and a designated beneficiary (or over a period not
extending beyond the life expectancy of such employee or the
life expectancy of such employee and a designated
beneficiary).
(B) Required distribution where employee dies before entire
interest is distributed.--
(i) Where distributions have begun under subparagraph
(A)(ii).--A trust shall not constitute a qualified trust
under this section unless the plan provides that if--
(I) the distribution of the employee's interest has
begun in accordance with subparagraph (A)(ii), and
(II) the employee dies before his entire interest
has been distributed to him,
the remaining portion of such interest will be distributed at
least as rapidly as under the method of distributions being
used under subparagraph (A)(ii) as of the date of his death.
(ii) 5-year rule for other cases.--A trust shall not
constitute a qualified trust under this section unless the
plan provides that, if an employee dies before the
distribution of the employee's interest has begun in
accordance with subparagraph (A)(ii), the entire interest of
the employee will be distributed within 5 years after the
death of such employee.
(iii) Exception to 5-year rule for certain amounts
payable over life of beneficiary.--If--
(I) any portion of the employee's interest is
payable to (or for the benefit of) a designated
beneficiary,
(II) such portion will be distributed (in accordance
with regulations) over the life of such designated
beneficiary (or over a period not extending beyond the
life expectancy of such beneficiary), and
(III) such distributions begin not later than 1 year
after the date of the employee's death or such later
date as the Secretary may by regulations prescribe,
for purposes of clause (ii), the portion referred to in
subclause (I) shall be treated as distributed on the date on
which such distributions begin.
(iv) Special rule for surviving spouse of employee.--If
the designated beneficiary referred to in clause (iii)(I) is
the surviving spouse of the employee--
(I) the date on which the distributions are required
to begin under clause (iii)(III) shall not be earlier
than the date on which the employee would have attained
age 70\1/2\, and
(II) if the surviving spouse dies before the
distributions to such spouse begin, this subparagraph
shall be applied as if the surviving spouse were the
employee.
(C) Required beginning date.--For purposes of this
paragraph--
(i) In general.--The term ``required beginning date''
means April 1 of the calendar year following the later of--
(I) the calendar year in which the employee attains
age 70\1/2\, or
(II) the calendar year in which the employee
retires.
(ii) Exception.--Subclause (II) of clause (i) shall not
apply--
(I) except as provided in section 409(d), in the
case of an employee who is a 5-percent owner (as defined
in section 416) with respect to the plan year ending in
the calendar year in which the employee attains age
70\1/2\, or
(II) for purposes of section 408(a)(6) or (b)(3).
(iii) Actuarial adjustment.--In the case of an employee
to whom clause (i)(II) applies who retires in a calendar
year after the calendar year in which the employee attains
age 70\1/2\, the employee's accrued benefit shall be
actuarially increased to take into account the period after
age 70\1/2\ in which the employee was not receiving any
benefits under the plan.
(iv) Exception for governmental and church plans.--
Clauses (ii) and (iii) shall not apply in the case of a
governmental plan or church plan. For purposes of this
clause, the term ``church plan'' means a plan maintained by
a church for church employees, and the term ``church'' means
any church (as defined in section 3121(w)(3)(A)) or
qualified church-controlled organization (as defined in
section 3121(w)(3)(B)).
(D) Life expectancy.--For purposes of this paragraph, the
life expectancy of an employee and the employee's spouse (other
than in the case of a life annuity) may be redetermined but not
more frequently than annually.
(E) Designated beneficiary.--For purposes of this paragraph,
the term ``designated beneficiary'' means any individual
designated as a beneficiary by the employee.
(F) Treatment of payments to children.--Under regulations
prescribed by the Secretary, for purposes of this paragraph, any
amount paid to a child shall be treated as if it had been paid
to the surviving spouse if such amount will become payable to
the surviving spouse upon such child reaching majority (or other
designated event permitted under regulations).
(G) Treatment of incidental death benefit distributions.--
For purposes of this title, any distribution required under the
incidental death benefit requirements of this subsection shall
be treated as a distribution required under this paragraph.
(10) Other requirements.--
(A) Plans benefiting owner-employees.--In the case of any
plan which provides contributions or benefits for employees some
or all of whom are owner-employees (as defined in subsection
(c)(3)), a trust forming part of such plan shall constitute a
qualified trust under this section only if the requirements of
subsection (d) are also met.
(B) Top-heavy plans.--
(i) In general.--In the case of any top-heavy plan, a
trust forming part of such plan shall constitute a qualified
trust under this section only if the requirements of section
416 are met.
(ii) Plans which may become top-heavy.--Except to the
extent provided in regulations, a trust forming part of a
plan (whether or not a top-heavy plan) shall constitute a
qualified trust under this section only if such plan
contains provisions--
(I) which will take effect if such plan becomes a
top-heavy plan, and
(II) which meet the requirements of section 416.
(iii) Exemption for governmental plans.--This
subparagraph shall not apply to any governmental plan.
(11) Requirement of joint and survivor annuity and preretirement
survivor annuity.--
(A) In general.--In the case of any plan to which this
paragraph applies, except as provided in section 417, a trust
forming part of such plan shall not constitute a qualified trust
under this section unless--
(i) in the case of a vested participant who does not die
before the annuity starting date, the accrued benefit
payable to such participant is provided in the form of a
qualified joint and survivor annuity, and
(ii) in the case of a vested participant who dies before
the annuity starting date and who has a surviving spouse, a
qualified preretirement survivor annuity is provided to the
surviving spouse of such participant.
(B) Plans to which paragraph applies.--This paragraph shall
apply to--
(i) any defined benefit plan,
(ii) any defined contribution plan which is subject to
the funding standards of section 412, and
(iii) any participant under any other defined
contribution plan unless--
(I) such plan provides that the participant's
nonforfeitable accrued benefit (reduced by any security
interest held by the plan by reason of a loan
outstanding to such participant) is payable in full, on
the death of the participant, to the participant's
surviving spouse (or, if there is no surviving spouse or
the surviving spouse consents in the manner required
under section 417(a)(2), to a designated beneficiary),
(II) such participant does not elect a payment of
benefits in the form of a life annuity, and
(III) with respect to such participant, such plan is
not a direct or indirect transferee (in a transfer after
December 31, 1984) of a plan which is described in
clause (i) or (ii) or to which this clause applied with
respect to the participant.
Clause (iii)(III) shall apply only with respect to the
transferred assets (and income therefrom) if the plan separately
accounts for such assets and any income therefrom.
(C) Exception for certain ESOP benefits.--
(i) In general.--In the case of--
(I) a tax credit employee stock ownership plan (as
defined in section 409(a)), or
(II) an employee stock ownership plan (as defined in
section 4975(e)(7)),
subparagraph (A) shall not apply to that portion of the
employee's accrued benefit to which the requirements of
section 409(h) apply.
(ii) Nonforfeitable benefit must be paid in full, etc.--
In the case of any participant, clause (i) shall apply only
if the requirements of subclauses (I), (II), and (III) of
subparagraph (B)(iii) are met with respect to such
participant.
(D) Special rule where participant and spouse married less
than 1 year.--A plan shall not be treated as failing to meet the
requirements of subparagraphs (B)(iii) or (C) merely because the
plan provides that benefits will not be payable to the surviving
spouse of the participant unless the participant and such spouse
had been married throughout the 1-year period ending on the
earlier of the participant's annuity starting date or the date
of the participant's death.
(E) Exception for plans described in section 404(c).--This
paragraph shall not apply to a plan which the Secretary has
determined is a plan described in section 404(c) (or a
continuation thereof) in which participation is substantially
limited to individuals who, before January 1, 1976, ceased
employment covered by the plan.
(F) Cross reference.--For--
(i) provisions under which participants may elect to
waive the requirements of this paragraph, and
(ii) other definitions and special rules for purposes of
this paragraph,
see section 417.
(12) A trust shall not constitute a qualified trust under this
section unless the plan of which such trust is a part provides that
in the case of any merger or consolidation with, or transfer of
assets or liabilities to, any other plan after September 2, 1974,
each participant in the plan would (if the plan then terminated)
receive a benefit immediately after the merger, consolidation, or
transfer which is equal to or greater than the benefit he would have
been entitled to receive immediately before the merger,
consolidation, or transfer (if the plan had then terminated). The
preceding sentence does not apply to any multiemployer plan with
respect to any transaction to the extent that participants either
before or after the transaction are covered under a multiemployer
plan to which title IV of the Employee Retirement Income Security
Act of 1974 applies.
(13) Assignment and alienation.--
(A) In general.--A trust shall not constitute a qualified
trust under this section unless the plan of which such trust is
a part provides that benefits provided under the plan may not be
assigned or alienated. For purposes of the preceding sentence,
there shall not be taken into account any voluntary and
revocable assignment of not to exceed 10 percent of any benefit
payment made by any participant who is receiving benefits under
the plan unless the assignment or alienation is made for
purposes of defraying plan administration costs. For purposes of
this paragraph a loan made to a participant or beneficiary shall
not be treated as an assignment or alienation if such loan is
secured by the participant's accrued nonforfeitable benefit and
is exempt from the tax imposed by section 4975 (relating to tax
on prohibited transactions) by reason of section 4975(d)(1).
This paragraph shall take effect on January 1, 1976 and shall
not apply to assignments which were irrevocable on September 2,
1974.
(B) Special rules for domestic relations orders.--
Subparagraph (A) shall apply to the creation, assignment, or
recognition of a right to any benefit payable with respect to a
participant pursuant to a domestic relations order, except that
subparagraph (A) shall not apply if the order is determined to
be a qualified domestic relations order.
(C) Special rule for certain judgments and settlements.--
Subparagraph (A) shall not apply to any offset of a
participant's benefits provided under a plan against an amount
that the participant is ordered or required to pay to the plan
if--
(i) the order or requirement to pay arises--
(I) under a judgment of conviction for a crime
involving such plan,
(II) under a civil judgment (including a consent
order or decree) entered by a court in an action brought
in connection with a violation (or alleged violation) of
part 4 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974, or
(III) pursuant to a settlement agreement between the
Secretary of Labor and the participant, or a settlement
agreement between the Pension Benefit Guaranty
Corporation and the participant, in connection with a
violation (or alleged violation) of part 4 of such
subtitle by a fiduciary or any other person,
(ii) the judgment, order, decree, or settlement
agreement expressly provides for the offset of all or part
of the amount ordered or required to be paid to the plan
against the participant's benefits provided under the plan,
and
(iii) in a case in which the survivor annuity
requirements of section 401(a)(11) apply with respect to
distributions from the plan to the participant, if the
participant has a spouse at the time at which the offset is
to be made--
(I) either such spouse has consented in writing to
such offset and such consent is witnessed by a notary
public or representative of the plan (or it is
established to the satisfaction of a plan representative
that such consent may not be obtained by reason of
circumstances described in section 417(a)(2)(B)), or an
election to waive the right of the spouse to either a
qualified joint and survivor annuity or a qualified
preretirement survivor annuity is in effect in
accordance with the requirements of section 417(a),
(II) such spouse is ordered or required in such
judgment, order, decree, or settlement to pay an amount
to the plan in connection with a violation of part 4 of
such subtitle, or
(III) in such judgment, order, decree, or
settlement, such spouse retains the right to receive the
survivor annuity under a qualified joint and survivor
annuity provided pursuant to section 401(a)(11)(A)(i)
and under a qualified preretirement survivor annuity
provided pursuant to section 401(a)(11)(A)(ii),
determined in accordance with subparagraph (D).
A plan shall not be treated as failing to meet the requirements
of this subsection, subsection (k), section 403(b), or section
409(d) solely by reason of an offset described in this
subparagraph.
(D) Survivor annuity.--
(i) In general.--The survivor annuity described in
subparagraph (C)(iii)(III) shall be determined as if--
(I) the participant terminated employment on the
date of the offset,
(II) there was no offset,
(III) the plan permitted commencement of benefits
only on or after normal retirement age,
(IV) the plan provided only the minimum-required
qualified joint and survivor annuity, and
(V) the amount of the qualified preretirement
survivor annuity under the plan is equal to the amount
of the survivor annuity payable under the minimum-
required qualified joint and survivor annuity.
(ii) Definition.--For purposes of this subparagraph, the
term ``minimum-required qualified joint and survivor
annuity'' means the qualified joint and survivor annuity
which is the actuarial equivalent of the participant's
accrued benefit (within the meaning of section 411(a)(7))
and under which the survivor annuity is 50 percent of the
amount of the annuity which is payable during the joint
lives of the participant and the spouse.
(14) A trust shall not constitute a qualified trust under this
section unless the plan of which such trust is a part provides that,
unless the participant otherwise elects, the payment of benefits
under the plan to the participant will begin not later than the 60th
day after the latest of the close of the plan year in which--
(A) the date on which the participant attains the earlier of
age 65 or the normal retirement age specified under the plan,
(B) occurs the 10th anniversary of the year in which the
participant commenced participation in the plan, or
(C) the participant terminates his service with the
employer.
In the case of a plan which provides for the payment of an early
retirement benefit, a trust forming a part of such plan shall not
constitute a qualified trust under this section unless a participant
who satisfied the service requirements for such early retirement
benefit, but separated from the service (with any nonforfeitable
right to an accrued benefit) before satisfying the age requirement
for such early retirement benefit, is entitled upon satisfaction of
such age requirement to receive a benefit not less than the benefit
to which he would be entitled at the normal retirement age,
actuarially, reduced under regulations prescribed by the Secretary.
(15) a \2\ trust shall not constitute a qualified trust under
this section unless under the plan of which such trust is a part--
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\2\ So in original. Probably should be capitalized.
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(A) in the case of a participant or beneficiary who is
receiving benefits under such plan, or
(B) in the case of a participant who is separated from the
service and who has nonforfeitable rights to benefits,
such benefits are not decreased by reason of any increase in the
benefit levels payable under title II of the Social Security Act or
any increase in the wage base under such title II, if such increase
takes place after September 2, 1974, or (if later) the earlier of
the date of first receipt of such benefits or the date of such
separation, as the case may be.
(16) A trust shall not constitute a qualified trust under this
section if the plan of which such trust is a part provides for
benefits or contributions which exceed the limitations of section
415.
(17) Compensation limit.--
(A) In general.--A trust shall not constitute a qualified
trust under this section unless, under the plan of which such
trust is a part, the annual compensation of each employee taken
into account under the plan for any year does not exceed
$200,000.
(B) Cost-of-living adjustment.--The Secretary shall adjust
annually the $200,000 amount in subparagraph (A) for increases
in the cost-of-living at the same time and in the same manner as
adjustments under section 415(d); except that the base period
shall be the calendar quarter beginning July 1, 2001, and any
increase which is not a multiple of $5,000 shall be rounded to
the next lowest multiple of $5,000.
[(18) Repealed. Pub. L. 97-248, title II, Sec. 237(b), Sept. 3,
1982, 96 Stat. 511.]
(19) A trust shall not constitute a qualified trust under this
section if under the plan of which such trust is a part any part of
a participant's accrued benefit derived from employer contributions
(whether or not otherwise nonforfeitable), is forfeitable solely
because of withdrawal by such participant of any amount attributable
to the benefit derived from contributions made by such participant.
The preceding sentence shall not apply to the accrued benefit of any
participant unless, at the time of such withdrawal, such participant
has a nonforfeitable right to at least 50 percent of such accrued
benefit (as determined under section 411). The first sentence of
this paragraph shall not apply to the extent that an accrued benefit
is permitted to be forfeited in accordance with section
411(a)(3)(D)(iii) (relating to proportional forfeitures of benefits
accrued before September 2, 1974, in the event of withdrawal of
certain mandatory contributions).
(20) A trust forming part of a pension plan shall not be treated
as failing to constitute a qualified trust under this section merely
because the pension plan of which such trust is a part makes 1 or
more distributions within 1 taxable year to a distributee on account
of a termination of the plan of which the trust is a part, or in the
case of a profit-sharing or stock bonus plan, a complete
discontinuance of contributions under such plan. This paragraph
shall not apply to a defined benefit plan unless the employer
maintaining such plan files a notice with the Pension Benefit
Guaranty Corporation (at the time and in the manner prescribed by
the Pension Benefit Guaranty Corporation) notifying the Corporation
of such payment or distribution and the Corporation has approved
such payment or distribution or, within 90 days after the date on
which such notice was filed, has failed to disapprove such payment
or distribution. For purposes of this paragraph, rules similar to
the rules of section 402(a)(6)(B) (as in effect before its repeal by
section 521 of the Unemployment Compensation Amendments of 1992)
shall apply.
[(21) Repealed. Pub. L. 99-514, title XI, Sec. 1171(b)(5), Oct.
22, 1986, 100 Stat. 2513.]
(22) If a defined contribution plan (other than a profit-sharing
plan)--
(A) is established by an employer whose stock is not readily
tradable on an established market, and
(B) after acquiring securities of the employer, more than 10
percent of the total assets of the plan are securities of the
employer,
any trust forming part of such plan shall not constitute a qualified
trust under this section unless the plan meets the requirements of
subsection (e) of section 409. The requirements of subsection (e) of
section 409 shall not apply to any employees of an employer who are
participants in any defined contribution plan established and
maintained by such employer if the stock of such employer is not
readily tradable on an established market and the trade or business
of such employer consists of publishing on a regular basis a
newspaper for general circulation. For purposes of the preceding
sentence, subsections (b), (c), (m), and (o) of section 414 shall
not apply except for determining whether stock of the employer is
not readily tradable on an established market.
(23) A stock bonus plan shall not be treated as meeting the
requirements of this section unless such plan meets the requirements
of subsections (h) and (o) of section 409, except that in applying
section 409(h) for purposes of this paragraph, the term ``employer
securities'' shall include any securities of the employer held by
the plan.
(24) Any group trust which otherwise meets the requirements of
this section shall not be treated as not meeting such requirements
on account of the participation or inclusion in such trust of the
moneys of any plan or governmental unit described in section
818(a)(6).
(25) Requirement that actuarial assumptions be specified.--A
defined benefit plan shall not be treated as providing definitely
determinable benefits unless, whenever the amount of any benefit is
to be determined on the basis of actuarial assumptions, such
assumptions are specified in the plan in a way which precludes
employer discretion.
(26) Additional participation requirements.--
(A) In general.--In the case of a trust which is a part of a
defined benefit plan, such trust shall not constitute a
qualified trust under this subsection unless on each day of the
plan year such trust benefits at least the lesser of--
(i) 50 employees of the employer, or
(ii) the greater of--
(I) 40 percent of all employees of the employer, or
(II) 2 employees (or if there is only 1 employee,
such employee).
(B) Treatment of excludable employees.--
(i) In general.--A plan may exclude from consideration
under this paragraph employees described in paragraphs (3)
and (4)(A) of section 410(b).
(ii) Separate application for certain excludable
employees.--If employees described in section 410(b)(4)(B)
are covered under a plan which meets the requirements of
subparagraph (A) separately with respect to such employees,
such employees may be excluded from consideration in
determining whether any plan of the employer meets such
requirements if--
(I) the benefits for such employees are provided
under the same plan as benefits for other employees,
(II) the benefits provided to such employees are not
greater than comparable benefits provided to other
employees under the plan, and
(III) no highly compensated employee (within the
meaning of section 414(q)) is included in the group of
such employees for more than 1 year.
(C) Eligibility to participate.--In the case of
contributions under section 401(k) or 401(m), employees who are
eligible to contribute (or may elect to have contributions made
on their behalf) shall be treated as benefiting under the plan.
(D) Special rule for collective bargaining units.--Except to
the extent provided in regulations, a plan covering only
employees described in section 410(b)(3)(A) may exclude from
consideration any employees who are not included in the unit or
units in which the covered employees are included.
(E) Paragraph not to apply to multiemployer plans.--Except
to the extent provided in regulations, this paragraph shall not
apply to employees in a multiemployer plan (within the meaning
of section 414(f)) who are covered by collective bargaining
agreements.
(F) Special rule for certain dispositions or acquisitions.--
Rules similar to the rules of section 410(b)(6)(C) shall apply
for purposes of this paragraph.
(G) Separate lines of business.--At the election of the
employer and with the consent of the Secretary, this paragraph
may be applied separately with respect to each separate line of
business of the employer. For purposes of this paragraph, the
term ``separate line of business'' has the meaning given such
term by section 414(r) (without regard to paragraph (2)(A) or
(7) thereof).
(H) Exception for state and local governmental plans.--This
paragraph shall not apply to a governmental plan (within the
meaning of section 414(d)) maintained by a State or local
government or political subdivision thereof (or agency or
instrumentality thereof).
(I) Regulations.--The Secretary may by regulation provide
that any separate benefit structure, any separate trust, or any
other separate arrangement is to be treated as a separate plan
for purposes of applying this paragraph.
(27) Determinations as to profit-sharing plans.--
(A) Contributions need not be based on profits.--The
determination of whether the plan under which any contributions
are made is a profit-sharing plan shall be made without regard
to current or accumulated profits of the employer and without
regard to whether the employer is a tax-exempt organization.
(B) Plan must designate type.--In the case of a plan which
is intended to be a money purchase pension plan or a profit-
sharing plan, a trust forming part of such plan shall not
constitute a qualified trust under this subsection unless the
plan designates such intent at such time and in such manner as
the Secretary may prescribe.
(28) Additional requirements relating to employee stock
ownership plans.--
(A) In general.--In the case of a trust which is part of an
employee stock ownership plan (within the meaning of section
4975(e)(7)) or a plan which meets the requirements of section
409(a), such trust shall not constitute a qualified trust under
this section unless such plan meets the requirements of
subparagraphs (B) and (C).
(B) Diversification of investments.--
(i) In general.--A plan meets the requirements of this
subparagraph if each qualified participant in the plan may
elect within 90 days after the close of each plan year in
the qualified election period to direct the plan as to the
investment of at least 25 percent of the participant's
account in the plan (to the extent such portion exceeds the
amount to which a prior election under this subparagraph
applies). In the case of the election year in which the
participant can make his last election, the preceding
sentence shall be applied by substituting ``50 percent'' for
``25 percent''.
(ii) Method of meeting requirements.--A plan shall be
treated as meeting the requirements of clause (i) if--
(I) the portion of the participant's account covered
by the election under clause (i) is distributed within
90 days after the period during which the election may
be made, or
(II) the plan offers at least 3 investment options
(not inconsistent with regulations prescribed by the
Secretary) to each participant making an election under
clause (i) and within 90 days after the period during
which the election may be made, the plan invests the
portion of the participant's account covered by the
election in accordance with such election.
(iii) Qualified participant.--For purposes of this
subparagraph, the term ``qualified participant'' means any
employee who has completed at least 10 years of
participation under the plan and has attained age 55.
(iv) Qualified election period.--For purposes of this
subparagraph, the term ``qualified election period'' means
the 6-plan-year period beginning with the later of--
(I) the 1st plan year in which the individual first
became a qualified participant, or
(II) the 1st plan year beginning after December 31,
1986.
For purposes of the preceding sentence, an employer may elect
to treat an individual first becoming a qualified
participant in the 1st plan year beginning in 1987 as having
become a participant in the 1st plan year beginning in 1988.
(C) Use of independent appraiser.--A plan meets the
requirements of this subparagraph if all valuations of employer
securities which are not readily tradable on an established
securities market with respect to activities carried on by the
plan are by an independent appraiser. For purposes of the
preceding sentence, the term ``independent appraiser'' means any
appraiser meeting requirements similar to the requirements of
the regulations prescribed under section 170(a)(1).
(29) Security required upon adoption of plan amendment resulting
in significant underfunding.--
(A) In general.--If--
(i) a defined benefit plan (other than a multiemployer
plan) to which the requirements of section 412 apply adopts
an amendment an effect of which is to increase current
liability under the plan for a plan year, and
(ii) the funded current liability percentage of the plan
for the plan year in which the amendment takes effect is
less than 60 percent, including the amount of the unfunded
current liability under the plan attributable to the plan
amendment,
the trust of which such plan is a part shall not constitute a
qualified trust under this subsection unless such amendment does
not take effect until the contributing sponsor (or any member of
the controlled group of the contributing sponsor) provides
security to the plan.
(B) Form of security.--The security required under
subparagraph (A) shall consist of--
(i) a bond issued by a corporate surety company that is
an acceptable surety for purposes of section 412 of the
Employee Retirement Income Security Act of 1974,
(ii) cash, or United States obligations which mature in
3 years or less, held in escrow by a bank or similar
financial institution, or
(iii) such other form of security as is satisfactory to
the Secretary and the parties involved.
(C) Amount of security.--The security shall be in an amount
equal to the excess of--
(i) the lesser of--
(I) the amount of additional plan assets which would
be necessary to increase the funded current liability
percentage under the plan to 60 percent, including the
amount of the unfunded current liability under the plan
attributable to the plan amendment, or
(II) the amount of the increase in current liability
under the plan attributable to the plan amendment and
any other plan amendments adopted after December 22,
1987, and before such plan amendment, over
(ii) $10,000,000.
(D) Release of security.--The security shall be released
(and any amounts thereunder shall be refunded together with any
interest accrued thereon) at the end of the first plan year
which ends after the provision of the security and for which the
funded current liability percentage under the plan is not less
than 60 percent. The Secretary may prescribe regulations for
partial releases of the security by reason of increases in the
funded current liability percentage.
(E) Definitions.--For purposes of this paragraph, the terms
``current liability'', ``funded current liability percentage'',
and ``unfunded current liability'' shall have the meanings given
such terms by section 412(l), except that in computing unfunded
current liability there shall not be taken into account any
unamortized portion of the unfunded old liability amount as of
the close of the plan year.
(30) Limitations on elective deferrals.--In the case of a trust
which is part of a plan under which elective deferrals (within the
meaning of section 402(g)(3)) may be made with respect to any
individual during a calendar year, such trust shall not constitute a
qualified trust under this subsection unless the plan provides that
the amount of such deferrals under such plan and all other plans,
contracts, or arrangements of an employer maintaining such plan may
not exceed the amount of the limitation in effect under section
402(g)(1) for taxable years beginning in such calendar year.
(31) Direct transfer of eligible rollover distributions.--
(A) In general.--A trust shall not constitute a qualified
trust under this section unless the plan of which such trust is
a part provides that if the distributee of any eligible rollover
distribution--
(i) elects to have such distribution paid directly to an
eligible retirement plan, and
(ii) specifies the eligible retirement plan to which
such distribution is to be paid (in such form and at such
time as the plan administrator may prescribe),
such distribution shall be made in the form of a direct trustee-
to-trustee transfer to the eligible retirement plan so
specified.
(B) Certain mandatory distributions.--
(i) In general.--In case of a trust which is part of an
eligible plan, such trust shall not constitute a qualified
trust under this section unless the plan of which such trust
is a part provides that if--
(I) a distribution described in clause (ii) in
excess of $1,000 is made, and
(II) the distributee does not make an election under
subparagraph (A) and does not elect to receive the
distribution directly,
the plan administrator shall make such transfer to an
individual retirement plan of a designated trustee or issuer
and shall notify the distributee in writing (either
separately or as part of the notice under section 402(f))
that the distribution may be transferred to another
individual retirement plan.
(ii) Eligible plan.--For purposes of clause (i), the
term ``eligible plan'' means a plan which provides that any
nonforfeitable accrued benefit for which the present value
(as determined under section 411(a)(11)) does not exceed
$5,000 shall be immediately distributed to the participant.
(C) Limitation.--Subparagraphs (A) and (B) shall apply only
to the extent that the eligible rollover distribution would be
includible in gross income if not transferred as provided in
subparagraph (A) (determined without regard to sections 402(c),
403(a)(4), 403(b)(8), and 457(e)(16)). The preceding sentence
shall not apply to such distribution if the plan to which such
distribution is transferred--
(i) agrees to separately account for amounts so
transferred, including separately accounting for the portion
of such distribution which is includible in gross income and
the portion of such distribution which is not so includible,
or
(ii) is an eligible retirement plan described in clause
(i) or (ii) of section 402(c)(8)(B).
(D) Eligible rollover distribution.--For purposes of this
paragraph, the term ``eligible rollover distribution'' has the
meaning given such term by section 402(f)(2)(A).
(E) Eligible retirement plan.--For purposes of this
paragraph, the term ``eligible retirement plan'' has the meaning
given such term by section 402(c)(8)(B), except that a qualified
trust shall be considered an eligible retirement plan only if it
is a defined contribution plan, the terms of which permit the
acceptance of rollover distributions.
(32) Treatment of failure to make certain payments if plan has
liquidity shortfall.--
(A) In general.--A trust forming part of a pension plan to
which section 412(m)(5) applies shall not be treated as failing
to constitute a qualified trust under this section merely
because such plan ceases to make any payment described in
subparagraph (B) during any period that such plan has a
liquidity shortfall (as defined in section 412(m)(5)).
(B) Payments described.--A payment is described in this
subparagraph if such payment is--
(i) any payment, in excess of the monthly amount paid
under a single life annuity (plus any social security
supplements described in the last sentence of section
411(a)(9)), to a participant or beneficiary whose annuity
starting date (as defined in section 417(f)(2)) occurs
during the period referred to in subparagraph (A),
(ii) any payment for the purchase of an irrevocable
commitment from an insurer to pay benefits, and
(iii) any other payment specified by the Secretary by
regulations.
(C) Period of shortfall.--For purposes of this paragraph, a
plan has a liquidity shortfall during the period that there is
an underpayment of an installment under section 412(m) by reason
of paragraph (5)(A) thereof.
(33) Prohibition on benefit increases while sponsor is in
bankruptcy.--
(A) In general.--A trust which is part of a plan to which
this paragraph applies shall not constitute a qualified trust
under this section if an amendment to such plan is adopted while
the employer is a debtor in a case under title 11, United States
Code, or similar Federal or State law, if such amendment
increases liabilities of the plan by reason of--
(i) any increase in benefits,
(ii) any change in the accrual of benefits, or
(iii) any change in the rate at which benefits become
nonforfeitable under the plan,
with respect to employees of the debtor, and such amendment is
effective prior to the effective date of such employer's plan of
reorganization.
(B) Exceptions.--This paragraph shall not apply to any plan
amendment if--
(i) the plan, were such amendment to take effect, would
have a funded current liability percentage (as defined in
section 412(l)(8)) of 100 percent or more,
(ii) the Secretary determines that such amendment is
reasonable and provides for only de minimis increases in the
liabilities of the plan with respect to employees of the
debtor,
(iii) such amendment only repeals an amendment described
in subsection 412(c)(8), or
(iv) such amendment is required as a condition of
qualification under this part.
(C) Plans to which this paragraph applies.--This paragraph
shall apply only to plans (other than multiemployer plans)
covered under section 4021 of the Employee Retirement Income
Security Act of 1974.
(D) Employer.--For purposes of this paragraph, the term
``employer'' means the employer referred to in section
412(c)(11) (without regard to subparagraph (B) thereof).
(34) Benefits of missing participants on plan termination.--In
the case of a plan covered by title IV of the Employee Retirement
Income Security Act of 1974, a trust forming part of such plan shall
not be treated as failing to constitute a qualified trust under this
section merely because the pension plan of which such trust is a
part, upon its termination, transfers benefits of missing
participants to the Pension Benefit Guaranty Corporation in
accordance with section 4050 of such Act.
Paragraphs (11), (12), (13), (14), (15), (19), and (20) shall apply only
in the case of a plan to which section 411 (relating to minimum vesting
standards) applies without regard to subsection (e)(2) of such section.
(b) Certain retroactive changes in plan
A stock bonus, pension, profit-sharing, or annuity plan shall be
considered as satisfying the requirements of subsection (a) for the
period beginning with the date on which it was put into effect, or for
the period beginning with the earlier of the date on which there was
adopted or put into effect any amendment which caused the plan to fail
to satisfy such requirements, and ending with the time prescribed by law
for filing the return of the employer for his taxable year in which such
plan or amendment was adopted (including extensions thereof) or such
later time as the Secretary may designate, if all provisions of the plan
which are necessary to satisfy such requirements are in effect by the
end of such period and have been made effective for all purposes for the
whole of such period.
(c) Definitions and rules relating to self-employed individuals and
owner-employees
For purposes of this section--
(1) Self-employed individual treated as employee
(A) In general
The term ``employee'' includes, for any taxable year, an
individual who is a self-employed individual for such taxable
year.
(B) Self-employed individual
The term ``self-employed individual'' means, with respect to
any taxable year, an individual who has earned income (as
defined in paragraph (2)) for such taxable year. To the extent
provided in regulations prescribed by the Secretary, such term
also includes, for any taxable year--
(i) an individual who would be a self-employed
individual within the meaning of the preceding sentence but
for the fact that the trade or business carried on by such
individual did not have net profits for the taxable year,
and
(ii) an individual who has been a self-employed
individual within the meaning of the preceding sentence for
any prior taxable year.
(2) Earned income
(A) In general
The term ``earned income'' means the net earnings from self-
employment (as defined in section 1402(a)), but such net
earnings shall be determined--
(i) only with respect to a trade or business in which
personal services of the taxpayer are a material income-
producing factor,
(ii) without regard to paragraphs (4) and (5) of section
1402(c),
(iii) in the case of any individual who is treated as an
employee under sections \3\ 3121(d)(3)(A), (C), or (D),
without regard to paragraph (2) of section 1402(c),
---------------------------------------------------------------------------
\3\ So in original. Probably should be ``section''.
---------------------------------------------------------------------------
(iv) without regard to items which are not included in
gross income for purposes of this chapter, and the
deductions properly allocable to or chargeable against such
items,
(v) with regard to the deductions allowed by section 404
to the taxpayer, and
(vi) with regard to the deduction allowed to the
taxpayer by section 164(f).
For purposes of this subparagraph, section 1402, as in effect
for a taxable year ending on December 31, 1962, shall be treated
as having been in effect for all taxable years ending before
such date. For purposes of this part only (other than sections
419 and 419A), this subparagraph shall be applied as if the term
``trade or business'' for purposes of section 1402 included
service described in section 1402(c)(6).
[(B) Repealed]
(C) Income from disposition of certain property
For purposes of this section, the term ``earned income''
includes gains (other than any gain which is treated under any
provision of this chapter as gain from the sale or exchange of a
capital asset) and net earnings derived from the sale or other
disposition of, the transfer of any interest in, or the
licensing of the use of property (other than good will) by an
individual whose personal efforts created such property.
(3) Owner-employee
The term ``owner-employee'' means an employee who--
(A) owns the entire interest in an unincorporated trade or
business, or
(B) in the case of a partnership, is a partner who owns more
than 10 percent of either the capital interest or the profits
interest in such partnership.
To the extent provided in regulations prescribed by the Secretary,
such term also means an individual who has been an owner-employee
within the meaning of the preceding sentence.
(4) Employer
An individual who owns the entire interest in an unincorporated
trade or business shall be treated as his own employer. A
partnership shall be treated as the employer of each partner who is
an employee within the meaning of paragraph (1).
(5) Contributions on behalf of owner-employees
The term ``contribution on behalf of an owner-employee''
includes, except as the context otherwise requires, a contribution
under a plan--
(A) by the employer for an owner-employee, and
(B) by an owner-employee as an employee.
(6) Special rule for certain fishermen
For purposes of this subsection, the term ``self-employed
individual'' includes an individual described in section 3121(b)(20)
(relating to certain fishermen).
(d) Contribution limit on owner-employees
A trust forming part of a pension or profit-sharing plan which
provides contributions or benefits for employees some or all of whom are
owner-employees shall constitute a qualified trust under this section
only if, in addition to meeting the requirements of subsection (a), the
plan provides that contributions on behalf of any owner-employee may be
made only with respect to the earned income of such owner-employee which
is derived from the trade or business with respect to which such plan is
established.
[(e) Repealed. Pub. L. 98-369, div. A, title VII, Sec. 713(d)(3), July
18, 1984, 98 Stat. 958]
(f) Certain custodial accounts and contracts
For purposes of this title, a custodial account, an annuity
contract, or a contract (other than a life, health or accident,
property, casualty, or liability insurance contract) issued by an
insurance company qualified to do business in a State shall be treated
as a qualified trust under this section if--
(1) the custodial account or contract would, except for the fact
that it is not a trust, constitute a qualified trust under this
section, and
(2) in the case of a custodial account the assets thereof are
held by a bank (as defined in section 408(n)) or another person who
demonstrates, to the satisfaction of the Secretary, that the manner
in which he will hold the assets will be consistent with the
requirements of this section.
For purposes of this title, in the case of a custodial account or
contract treated as a qualified trust under this section by reason of
this subsection, the person holding the assets of such account or
holding such contract shall be treated as the trustee thereof.
(g) Annuity defined
For purposes of this section and sections 402, 403, and 404, the
term ``annuity'' includes a face-amount certificate, as defined in
section 2(a)(15) of the Investment Company Act of 1940 (15 U.S.C., sec.
80a-2); but does not include any contract or certificate issued after
December 31, 1962, which is transferable, if any person other than the
trustee of a trust described in section 401(a) which is exempt from tax
under section 501(a) is the owner of such contract or certificate.
(h) Medical, etc., benefits for retired employees and their spouses and
dependents
Under regulations prescribed by the Secretary, and subject to the
provisions of section 420, a pension or annuity plan may provide for the
payment of benefits for sickness, accident, hospitalization, and medical
expenses of retired employees, their spouses and their dependents, but
only if--
(1) such benefits are subordinate to the retirement benefits
provided by the plan,
(2) a separate account is established and maintained for such
benefits,
(3) the employer's contributions to such separate account are
reasonable and ascertainable,
(4) it is impossible, at any time prior to the satisfaction of
all liabilities under the plan to provide such benefits, for any
part of the corpus or income of such separate account to be (within
the taxable year or thereafter) used for, or diverted to, any
purpose other than the providing of such benefits,
(5) notwithstanding the provisions of subsection (a)(2), upon
the satisfaction of all liabilities under the plan to provide such
benefits, any amount remaining in such separate account must, under
the terms of the plan, be returned to the employer, and
(6) in the case of an employee who is a key employee, a separate
account is established and maintained for such benefits payable to
such employee (and his spouse and dependents) and such benefits (to
the extent attributable to plan years beginning after March 31,
1984, for which the employee is a key employee) are only payable to
such employee (and his spouse and dependents) from such separate
account.
For purposes of paragraph (6), the term ``key employee'' means any
employee, who at any time during the plan year or any preceding plan
year during which contributions were made on behalf of such employee, is
or was a key employee as defined in section 416(i). In no event shall
the requirements of paragraph (1) be treated as met if the aggregate
actual contributions for medical benefits, when added to actual
contributions for life insurance protection under the plan, exceed 25
percent of the total actual contributions to the plan (other than
contributions to fund past service credits) after the date on which the
account is established.
(i) Certain union-negotiated pension plans
In the case of a trust forming part of a pension plan which has been
determined by the Secretary to constitute a qualified trust under
subsection (a) and to be exempt from taxation under section 501(a) for a
period beginning after contributions were first made to or for such
trust, if it is shown to the satisfaction of the Secretary that--
(1) such trust was created pursuant to a collective bargaining
agreement between employee representatives and one or more
employers,
(2) any disbursements of contributions, made to or for such
trust before the time as of which the Secretary or his delegate
determined that the trust constituted a qualified trust,
substantially complied with the terms of the trust, and the plan of
which the trust is a part, as subsequently qualified, and
(3) before the time as of which the Secretary determined that
the trust constitutes a qualified trust, the contributions to or for
such trust were not used in a manner which would jeopardize the
interests of its beneficiaries,
then such trust shall be considered as having constituted a qualified
trust under subsection (a) and as having been exempt from taxation under
section 501(a) for the period beginning on the date on which
contributions were first made to or for such trust and ending on the
date such trust first constituted (without regard to this subsection) a
qualified trust under subsection (a).
[(j) Repealed. Pub. L. 97-248, title II, Sec. 238(b), Sept. 3, 1982, 96
Stat. 512]
(k) Cash or deferred arrangements
(1) General rule
A profit-sharing or stock bonus plan, a pre-ERISA money purchase
plan, or a rural cooperative plan shall not be considered as not
satisfying the requirements of subsection (a) merely because the
plan includes a qualified cash or deferred arrangement.
(2) Qualified cash or deferred arrangement
A qualified cash or deferred arrangement is any arrangement
which is part of a profit-sharing or stock bonus plan, a pre-ERISA
money purchase plan, or a rural cooperative plan which meets the
requirements of subsection (a)--
(A) under which a covered employee may elect to have the
employer make payments as contributions to a trust under the
plan on behalf of the employee, or to the employee directly in
cash;
(B) under which amounts held by the trust which are
attributable to employer contributions made pursuant to the
employee's election--
(i) may not be distributable to participants or other
beneficiaries earlier than--
(I) severance from employment, death, or disability,
(II) an event described in paragraph (10),
(III) in the case of a profit-sharing or stock bonus
plan, the attainment of age 59\1/2\, or
(IV) in the case of contributions to a profit-
sharing or stock bonus plan to which section 402(e)(3)
applies, upon hardship of the employee, and
(ii) will not be distributable merely by reason of the
completion of a stated period of participation or the lapse
of a fixed number of years;
(C) which provides that an employee's right to his accrued
benefit derived from employer contributions made to the trust
pursuant to his election is nonforfeitable, and
(D) which does not require, as a condition of participation
in the arrangement, that an employee complete a period of
service with the employer (or employers) maintaining the plan
extending beyond the period permitted under section 410(a)(1)
(determined without regard to subparagraph (B)(i) thereof).
(3) Application of participation and discrimination
standards
(A) A cash or deferred arrangement shall not be treated as a
qualified cash or deferred arrangement unless--
(i) those employees eligible to benefit under the
arrangement satisfy the provisions of section 410(b)(1), and
(ii) the actual deferral percentage for eligible highly
compensated employees (as defined in paragraph (5)) for the
plan year bears a relationship to the actual deferral
percentage for all other eligible employees for the
preceding plan year which meets either of the following
tests:
(I) The actual deferral percentage for the group of
eligible highly compensated employees is not more than
the actual deferral percentage of all other eligible
employees multiplied by 1.25.
(II) The excess of the actual deferral percentage
for the group of eligible highly compensated employees
over that of all other eligible employees is not more
than 2 percentage points, and the actual deferral
percentage for the group of eligible highly compensated
employees is not more than the actual deferral
percentage of all other eligible employees multiplied by
2.
If 2 or more plans which include cash or deferred arrangements
are considered as 1 plan for purposes of section 401(a)(4)
or 410(b), the cash or deferred arrangements included in
such plans shall be treated as 1 arrangement for purposes of
this subparagraph.
If any highly compensated employee is a participant under 2 or
more cash or deferred arrangements of the employer, for purposes
of determining the deferral percentage with respect to such
employee, all such cash or deferred arrangements shall be
treated as 1 cash or deferred arrangement. An arrangement may
apply clause (ii) by using the plan year rather than the
preceding plan year if the employer so elects, except that if
such an election is made, it may not be changed except as
provided by the Secretary.
(B) For purposes of subparagraph (A), the actual deferral
percentage for a specified group of employees for a plan year
shall be the average of the ratios (calculated separately for
each employee in such group) of--
(i) the amount of employer contributions actually paid
over to the trust on behalf of each such employee for such
plan year, to
(ii) the employee's compensation for such plan year.
(C) A cash or deferred arrangement shall be treated as
meeting the requirements of subsection (a)(4) with respect to
contributions if the requirements of subparagraph (A)(ii) are
met.
(D) For purposes of subparagraph (B), the employer
contributions on behalf of any employee--
(i) shall include any employer contributions made
pursuant to the employee's election under paragraph (2), and
(ii) under such rules as the Secretary may prescribe,
may, at the election of the employer, include--
(I) matching contributions (as defined in
401(m)(4)(A)) which meet the requirements of paragraph
(2)(B) and (C), and
(II) qualified nonelective contributions (within the
meaning of section 401(m)(4)(C)).
(E) For purposes of this paragraph, in the case of the first
plan year of any plan (other than a successor plan), the amount
taken into account as the actual deferral percentage of
nonhighly compensated employees for the preceding plan year
shall be--
(i) 3 percent, or
(ii) if the employer makes an election under this
subclause, the actual deferral percentage of nonhighly
compensated employees determined for such first plan year.
(F) Special rule for early participation.--If an employer
elects to apply section 410(b)(4)(B) in determining whether a
cash or deferred arrangement meets the requirements of
subparagraph (A)(i), the employer may, in determining whether
the arrangement meets the requirements of subparagraph (A)(ii),
exclude from consideration all eligible employees (other than
highly compensated employees) who have not met the minimum age
and service requirements of section 410(a)(1)(A).
(G) A governmental plan (within the meaning of section
414(d)) maintained by a State or local government or political
subdivision thereof (or agency or instrumentality thereof) shall
be treated as meeting the requirements of this paragraph.
(4) Other requirements
(A) Benefits (other than matching contributions) must not be
contingent on election to defer
A cash or deferred arrangement of any employer shall not be
treated as a qualified cash or deferred arrangement if any other
benefit is conditioned (directly or indirectly) on the employee
electing to have the employer make or not make contributions
under the arrangement in lieu of receiving cash. The preceding
sentence shall not apply to any matching contribution (as
defined in section 401(m)) made by reason of such an election.
(B) Eligibility of State and local governments and tax-exempt
organizations
(i) Tax-exempts eligible
Except as provided in clause (ii), any organization
exempt from tax under this subtitle may include a qualified
cash or deferred arrangement as part of a plan maintained by
it.
(ii) Governments ineligible
A cash or deferred arrangement shall not be treated as a
qualified cash or deferred arrangement if it is part of a
plan maintained by a State or local government or political
subdivision thereof, or any agency or instrumentality
thereof. This clause shall not apply to a rural cooperative
plan or to a plan of an employer described in clause (iii).
(iii) Treatment of Indian tribal governments
An employer which is an Indian tribal government (as
defined in section 7701(a)(40)), a subdivision of an Indian
tribal government (determined in accordance with section
7871(d)), an agency or instrumentality of an Indian tribal
government or subdivision thereof, or a corporation
chartered under Federal, State, or tribal law which is owned
in whole or in part by any of the foregoing may include a
qualified cash or deferred arrangement as part of a plan
maintained by the employer.
(C) Coordination with other plans
Except as provided in section 401(m), any employer
contribution made pursuant to an employee's election under a
qualified cash or deferred arrangement shall not be taken into
account for purposes of determining whether any other plan meets
the requirements of section 401(a) or 410(b). This subparagraph
shall not apply for purposes of determining whether a plan meets
the average benefit requirement of section 410(b)(2)(A)(ii).
(5) Highly compensated employee
For purposes of this subsection, the term ``highly compensated
employee'' has the meaning given such term by section 414(q).
(6) Pre-ERISA money purchase plan
For purposes of this subsection, the term ``pre-ERISA money
purchase plan'' means a pension plan--
(A) which is a defined contribution plan (as defined in
section 414(i)),
(B) which was in existence on June 27, 1974, and which, on
such date, included a salary reduction arrangement, and
(C) under which neither the employee contributions nor the
employer contributions may exceed the levels provided for by the
contribution formula in effect under the plan on such date.
(7) Rural cooperative plan
For purposes of this subsection--
(A) In general
The term ``rural cooperative plan'' means any pension plan--
(i) which is a defined contribution plan (as defined in
section 414(i)), and
(ii) which is established and maintained by a rural
cooperative.
(B) Rural cooperative defined
For purposes of subparagraph (A), the term ``rural
cooperative'' means--
(i) any organization which--
(I) is engaged primarily in providing electric
service on a mutual or cooperative basis, or
(II) is engaged primarily in providing electric
service to the public in its area of service and which
is exempt from tax under this subtitle or which is a
State or local government (or an agency or
instrumentality thereof), other than a municipality (or
an agency or instrumentality thereof),
(ii) any organization described in paragraph (4) or (6)
of section 501(c) and at least 80 percent of the members of
which are organizations described in clause (i),
(iii) a cooperative telephone company described in
section 501(c)(12),
(iv) any organization which--
(I) is a mutual irrigation or ditch company
described in section 501(c)(12) (without regard to the
85 percent requirement thereof), or
(II) is a district organized under the laws of a
State as a municipal corporation for the purpose of
irrigation, water conservation, or drainage, and
(v) an organization which is a national association of
organizations described in clause (i), (ii),,\4\ (iii), or
(iv).
---------------------------------------------------------------------------
\4\ So in original.
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(C) Special rule for certain distributions
A rural cooperative plan which includes a qualified cash or
deferred arrangement shall not be treated as violating the
requirements of section 401(a) or of paragraph (2) merely by
reason of a hardship distribution or a distribution to a
participant after attainment of age 59\1/2\. For purposes of
this section, the term ``hardship distribution'' means a
distribution described in paragraph (2)(B)(i)(IV) (without
regard to the limitation of its application to profit-sharing or
stock bonus plans).
(8) Arrangement not disqualified if excess contributions
distributed
(A) In general
A cash or deferred arrangement shall not be treated as
failing to meet the requirements of clause (ii) of paragraph
(3)(A) for any plan year if, before the close of the following
plan year--
(i) the amount of the excess contributions for such plan
year (and any income allocable to such contributions) is
distributed, or
(ii) to the extent provided in regulations, the employee
elects to treat the amount of the excess contributions as an
amount distributed to the employee and then contributed by
the employee to the plan.
Any distribution of excess contributions (and income) may be
made without regard to any other provision of law.
(B) Excess contributions
For purposes of subparagraph (A), the term ``excess
contributions'' means, with respect to any plan year, the excess
of--
(i) the aggregate amount of employer contributions
actually paid over to the trust on behalf of highly
compensated employees for such plan year, over
(ii) the maximum amount of such contributions permitted
under the limitations of clause (ii) of paragraph (3)(A)
(determined by reducing contributions made on behalf of
highly compensated employees in order of the actual deferral
percentages beginning with the highest of such percentages).
(C) Method of distributing excess contributions
Any distribution of the excess contributions for any plan
year shall be made to highly compensated employees on the basis
of the amount of contributions by, or on behalf of, each of such
employees.
(D) Additional tax under section 72(t) not to apply
No tax shall be imposed under section 72(t) on any amount
required to be distributed under this paragraph.
(E) Treatment of matching contributions forfeited by reason of
excess deferral or contribution
For purposes of paragraph (2)(C), a matching contribution
(within the meaning of subsection (m)) shall not be treated as
forfeitable merely because such contribution is forfeitable if
the contribution to which the matching contribution relates is
treated as an excess contribution under subparagraph (B), an
excess deferral under section 402(g)(2)(A), or an excess
aggregate contribution under section 401(m)(6)(B).
(F) Cross reference
For excise tax on certain excess contributions, see section
4979.
(9) Compensation
For purposes of this subsection, the term ``compensation'' has
the meaning given such term by section 414(s).
(10) Distributions upon termination of plan
(A) In general
An event described in this subparagraph is the termination
of the plan without establishment or maintenance of another
defined contribution plan (other than an employee stock
ownership plan as defined in section 4975(e)(7)).
(B) Distributions must be lump sum distributions
(i) In general
A termination shall not be treated as described in
subparagraph (A) with respect to any employee unless the
employee receives a lump sum distribution by reason of the
termination.
(ii) Lump-sum distribution
For purposes of this subparagraph, the term ``lump-sum
distribution'' has the meaning given such term by section
402(e)(4)(D) (without regard to subclauses (I), (II), (III),
and (IV) of clause (i) thereof). Such term includes a
distribution of an annuity contract from--
(I) a trust which forms a part of a plan described
in section 401(a) and which is exempt from tax under
section 501(a), or
(II) an annuity plan described in section 403(a).
(11) Adoption of simple plan to meet nondiscrimination tests
(A) In general
A cash or deferred arrangement maintained by an eligible
employer shall be treated as meeting the requirements of
paragraph (3)(A)(ii) if such arrangement meets--
(i) the contribution requirements of subparagraph (B),
(ii) the exclusive plan requirements of subparagraph
(C), and
(iii) the vesting requirements of section 408(p)(3).
(B) Contribution requirements
(i) In general
The requirements of this subparagraph are met if, under
the arrangement--
(I) an employee may elect to have the employer make
elective contributions for the year on behalf of the
employee to a trust under the plan in an amount which is
expressed as a percentage of compensation of the
employee but which in no event exceeds the amount in
effect under section 408(p)(2)(A)(ii),
(II) the employer is required to make a matching
contribution to the trust for the year in an amount
equal to so much of the amount the employee elects under
subclause (I) as does not exceed 3 percent of
compensation for the year, and
(III) no other contributions may be made other than
contributions described in subclause (I) or (II).
(ii) Employer may elect 2-percent nonelective
contribution
An employer shall be treated as meeting the requirements
of clause (i)(II) for any year if, in lieu of the
contributions described in such clause, the employer elects
(pursuant to the terms of the arrangement) to make
nonelective contributions of 2 percent of compensation for
each employee who is eligible to participate in the
arrangement and who has at least $5,000 of compensation from
the employer for the year. If an employer makes an election
under this subparagraph for any year, the employer shall
notify employees of such election within a reasonable period
of time before the 60th day before the beginning of such
year.
(iii) Administrative requirements
(I) In general
Rules similar to the rules of subparagraphs (B) and
(C) of section 408(p)(5) shall apply for purposes of
this subparagraph.
(II) Notice of election period
The requirements of this subparagraph shall not be
treated as met with respect to any year unless the
employer notifies each employee eligible to participate,
within a reasonable period of time before the 60th day
before the beginning of such year (and, for the first
year the employee is so eligible, the 60th day before
the first day such employee is so eligible), of the
rules similar to the rules of section 408(p)(5)(C) which
apply by reason of subclause (I).
(C) Exclusive plan requirement
The requirements of this subparagraph are met for any year
to which this paragraph applies if no contributions were made,
or benefits were accrued, for services during such year under
any qualified plan of the employer on behalf of any employee
eligible to participate in the cash or deferred arrangement,
other than contributions described in subparagraph (B).
(D) Definitions and special rule
(i) Definitions
For purposes of this paragraph, any term used in this
paragraph which is also used in section 408(p) shall have
the meaning given such term by such section.
(ii) Coordination with top-heavy rules
A plan meeting the requirements of this paragraph for
any year shall not be treated as a top-heavy plan under
section 416 for such year if such plan allows only
contributions required under this paragraph.
(12) Alternative methods of meeting nondiscrimination
requirements
(A) In general
A cash or deferred arrangement shall be treated as meeting
the requirements of paragraph (3)(A)(ii) if such arrangement--
(i) meets the contribution requirements of subparagraph
(B) or (C), and
(ii) meets the notice requirements of subparagraph (D).
(B) Matching contributions
(i) In general
The requirements of this subparagraph are met if, under
the arrangement, the employer makes matching contributions
on behalf of each employee who is not a highly compensated
employee in an amount equal to--
(I) 100 percent of the elective contributions of the
employee to the extent such elective contributions do
not exceed 3 percent of the employee's compensation, and
(II) 50 percent of the elective contributions of the
employee to the extent that such elective contributions
exceed 3 percent but do not exceed 5 percent of the
employee's compensation.
(ii) Rate for highly compensated employees
The requirements of this subparagraph are not met if,
under the arrangement, the rate of matching contribution
with respect to any elective contribution of a highly
compensated employee at any rate of elective contribution is
greater than that with respect to an employee who is not a
highly compensated employee.
(iii) Alternative plan designs
If the rate of any matching contribution with respect to
any rate of elective contribution is not equal to the
percentage required under clause (i), an arrangement shall
not be treated as failing to meet the requirements of clause
(i) if--
(I) the rate of an employer's matching contribution
does not increase as an employee's rate of elective
contributions increase, and
(II) the aggregate amount of matching contributions
at such rate of elective contribution is at least equal
to the aggregate amount of matching contributions which
would be made if matching contributions were made on the
basis of the percentages described in clause (i).
(C) Nonelective contributions
The requirements of this subparagraph are met if, under the
arrangement, the employer is required, without regard to whether
the employee makes an elective contribution or employee
contribution, to make a contribution to a defined contribution
plan on behalf of each employee who is not a highly compensated
employee and who is eligible to participate in the arrangement
in an amount equal to at least 3 percent of the employee's
compensation.
(D) Notice requirement
An arrangement meets the requirements of this paragraph if,
under the arrangement, each employee eligible to participate is,
within a reasonable period before any year, given written notice
of the employee's rights and obligations under the arrangement
which--
(i) is sufficiently accurate and comprehensive to
apprise the employee of such rights and obligations, and
(ii) is written in a manner calculated to be understood
by the average employee eligible to participate.
(E) Other requirements
(i) Withdrawal and vesting restrictions
An arrangement shall not be treated as meeting the
requirements of subparagraph (B) or (C) of this paragraph
unless the requirements of subparagraphs (B) and (C) of
paragraph (2) are met with respect to all employer
contributions (including matching contributions) taken into
account in determining whether the requirements of
subparagraphs (B) and (C) of this paragraph are met.
(ii) Social security and similar contributions not
taken into account
An arrangement shall not be treated as meeting the
requirements of subparagraph (B) or (C) unless such
requirements are met without regard to subsection (l), and,
for purposes of subsection (l), employer contributions under
subparagraph (B) or (C) shall not be taken into account.
(F) Other plans
An arrangement shall be treated as meeting the requirements
under subparagraph (A)(i) if any other plan maintained by the
employer meets such requirements with respect to employees
eligible under the arrangement.
(l) Permitted disparity in plan contributions or benefits
(1) In general
The requirements of this subsection are met with respect to a
plan if--
(A) in the case of a defined contribution plan, the
requirements of paragraph (2) are met, and
(B) in the case of a defined benefit plan, the requirements
of paragraph (3) are met.
(2) Defined contribution plan
(A) In general
A defined contribution plan meets the requirements of this
paragraph if the excess contribution percentage does not exceed
the base contribution percentage by more than the lesser of--
(i) the base contribution percentage, or
(ii) the greater of--
(I) 5.7 percentage points, or
(II) the percentage equal to the portion of the rate
of tax under section 3111(a) (in effect as of the
beginning of the year) which is attributable to old-age
insurance.
(B) Contribution percentages
For purposes of this paragraph--
(i) Excess contribution percentage
The term ``excess contribution percentage'' means the
percentage of compensation which is contributed by the
employer under the plan with respect to that portion of each
participant's compensation in excess of the integration
level.
(ii) Base contribution percentage
The term ``base contribution percentage'' means the
percentage of compensation contributed by the employer under
the plan with respect to that portion of each participant's
compensation not in excess of the integration level.
(3) Defined benefit plan
A defined benefit plan meets the requirements of this paragraph
if--
(A) Excess plans
(i) In general
In the case of a plan other than an offset plan--
(I) the excess benefit percentage does not exceed
the base benefit percentage by more than the maximum
excess allowance,
(II) any optional form of benefit, preretirement
benefit, actuarial factor, or other benefit or feature
provided with respect to compensation in excess of the
integration level is provided with respect to
compensation not in excess of such level, and
(III) benefits are based on average annual
compensation.
(ii) Benefit percentages
For purposes of this subparagraph, the excess and base
benefit percentages shall be computed in the same manner as
the excess and base contribution percentages under paragraph
(2)(B), except that such determination shall be made on the
basis of benefits attributable to employer contributions
rather than contributions.
(B) Offset plans
In the case of an offset plan, the plan provides that--
(i) a participant's accrued benefit attributable to
employer contributions (within the meaning of section
411(c)(1)) may not be reduced (by reason of the offset) by
more than the maximum offset allowance, and
(ii) benefits are based on average annual compensation.
(4) Definitions relating to paragraph (3)
For purposes of paragraph (3)--
(A) Maximum excess allowance
The maximum excess allowance is equal to--
(i) in the case of benefits attributable to any year of
service with the employer taken into account under the plan,
\3/4\ of a percentage point, and
(ii) in the case of total benefits, \3/4\ of a
percentage point, multiplied by the participant's years of
service (not in excess of 35) with the employer taken into
account under the plan.
In no event shall the maximum excess allowance exceed the base
benefit percentage.
(B) Maximum offset allowance
The maximum offset allowance is equal to--
(i) in the case of benefits attributable to any year of
service with the employer taken into account under the plan,
\3/4\ percent of the participant's final average
compensation, and
(ii) in the case of total benefits, \3/4\ percent of the
participant's final average compensation, multiplied by the
participant's years of service (not in excess of 35) with
the employer taken into account under the plan.
In no event shall the maximum offset allowance exceed 50 percent
of the benefit which would have accrued without regard to the
offset reduction.
(C) Reductions
(i) In general
The Secretary shall prescribe regulations requiring the
reduction of the \3/4\ percentage factor under subparagraph
(A) or (B)--
(I) in the case of a plan other than an offset plan
which has an integration level in excess of covered
compensation, or
(II) with respect to any participant in an offset
plan who has final average compensation in excess of
covered compensation.
(ii) Basis of reductions
Any reductions under clause (i) shall be based on the
percentages of compensation replaced by the employer-derived
portions of primary insurance amounts under the Social
Security Act for participants with compensation in excess of
covered compensation.
(D) Offset plan
The term ``offset plan'' means any plan with respect to
which the benefit attributable to employer contributions for
each participant is reduced by an amount specified in the plan.
(5) Other definitions and special rules
For purposes of this subsection--
(A) Integration level
(i) In general
The term ``integration level'' means the amount of
compensation specified under the plan (by dollar amount or
formula) at or below which the rate at which contributions
or benefits are provided (expressed as a percentage) is less
than such rate above such amount.
(ii) Limitation
The integration level for any year may not exceed the
contribution and benefit base in effect under section 230 of
the Social Security Act for such year.
(iii) Level to apply to all participants
A plan's integration level shall apply with respect to
all participants in the plan.
(iv) Multiple integration levels
Under rules prescribed by the Secretary, a defined
benefit plan may specify multiple integration levels.
(B) Compensation
The term ``compensation'' has the meaning given such term by
section 414(s).
(C) Average annual compensation
The term ``average annual compensation'' means the
participant's highest average annual compensation for--
(i) any period of at least 3 consecutive years, or
(ii) if shorter, the participant's full period of
service.
(D) Final average compensation
(i) In general
The term ``final average compensation'' means the
participant's average annual compensation for--
(I) the 3-consecutive year period ending with the
current year, or
(II) if shorter, the participant's full period of
service.
(ii) Limitation
A participant's final average compensation shall be
determined by not taking into account in any year
compensation in excess of the contribution and benefit base
in effect under section 230 of the Social Security Act for
such year.
(E) Covered compensation
(i) In general
The term ``covered compensation'' means, with respect to
an employee, the average of the contribution and benefit
bases in effect under section 230 of the Social Security Act
for each year in the 35-year period ending with the year in
which the employee attains the social security retirement
age.
(ii) Computation for any year
For purposes of clause (i), the determination for any
year preceding the year in which the employee attains the
social security retirement age shall be made by assuming
that there is no increase in the bases described in clause
(i) after the determination year and before the employee
attains the social security retirement age.
(iii) Social security retirement age
For purposes of this subparagraph, the term ``social
security retirement age'' has the meaning given such term by
section 415(b)(8).
(F) Regulations
The Secretary shall prescribe such regulations as are
necessary or appropriate to carry out the purposes of this
subsection, including--
(i) in the case of a defined benefit plan which provides
for unreduced benefits commencing before the social security
retirement age (as defined in section 415(b)(8)), rules
providing for the reduction of the maximum excess allowance
and the maximum offset allowance, and
(ii) in the case of an employee covered by 2 or more
plans of the employer which fail to meet the requirements of
subsection (a)(4) (without regard to this subsection), rules
preventing the multiple use of the disparity permitted under
this subsection with respect to any employee.
For purposes of clause (i), unreduced benefits shall not include
benefits for disability (within the meaning of section 223(d) of
the Social Security Act).
(6) Special rule for plan maintained by railroads
In determining whether a plan which includes employees of a
railroad employer who are entitled to benefits under the Railroad
Retirement Act of 1974 meets the requirements of this subsection,
rules similar to the rules set forth in this subsection shall apply.
Such rules shall take into account the employer-derived portion of
the employees' tier 2 railroad retirement benefits and any
supplemental annuity under the Railroad Retirement Act of 1974.
(m) Nondiscrimination test for matching contributions and employee
contributions
(1) In general
A defined contribution plan shall be treated as meeting the
requirements of subsection (a)(4) with respect to the amount of any
matching contribution or employee contribution for any plan year
only if the contribution percentage requirement of paragraph (2) of
this subsection is met for such plan year.
(2) Requirements
(A) Contribution percentage requirement
A plan meets the contribution percentage requirement of this
paragraph for any plan year only if the contribution percentage
for eligible highly compensated employees for such plan year
does not exceed the greater of--
(i) 125 percent of such percentage for all other
eligible employees for the preceding plan year, or
(ii) the lesser of 200 percent of such percentage for
all other eligible employees for the preceding plan year, or
such percentage for all other eligible employees for the
preceding plan year plus 2 percentage points.
This subparagraph may be applied by using the plan year rather
than the preceding plan year if the employer so elects, except
that if such an election is made, it may not be changed except
as provided by the Secretary.
(B) Multiple plans treated as a single plan
If two or more plans of an employer to which matching
contributions, employee contributions, or elective deferrals are
made are treated as one plan for purposes of section 410(b),
such plans shall be treated as one plan for purposes of this
subsection. If a highly compensated employee participates in two
or more plans of an employer to which contributions to which
this subsection applies are made, all such contributions shall
be aggregated for purposes of this subsection.
(3) Contribution percentage
For purposes of paragraph (2), the contribution percentage for a
specified group of employees for a plan year shall be the average of
the ratios (calculated separately for each employee in such group)
of--
(A) the sum of the matching contributions and employee
contributions paid under the plan on behalf of each such
employee for such plan year, to
(B) the employee's compensation (within the meaning of
section 414(s)) for such plan year.
Under regulations, an employer may elect to take into account (in
computing the contribution percentage) elective deferrals and
qualified nonelective contributions under the plan or any other plan
of the employer. If matching contributions are taken into account
for purposes of subsection (k)(3)(A)(ii) for any plan year, such
contributions shall not be taken into account under subparagraph (A)
for such year. Rules similar to the rules of subsection (k)(3)(E)
shall apply for purposes of this subsection.
(4) Definitions
For purposes of this subsection--
(A) Matching contribution
The term ``matching contribution'' means--
(i) any employer contribution made to a defined
contribution plan on behalf of an employee on account of an
employee contribution made by such employee, and
(ii) any employer contribution made to a defined
contribution plan on behalf of an employee on account of an
employee's elective deferral.
(B) Elective deferral
The term ``elective deferral'' means any employer
contribution described in section 402(g)(3).
(C) Qualified nonelective contributions
The term ``qualified nonelective contribution'' means any
employer contribution (other than a matching contribution) with
respect to which--
(i) the employee may not elect to have the contribution
paid to the employee in cash instead of being contributed to
the plan, and
(ii) the requirements of subparagraphs (B) and (C) of
subsection (k)(2) are met.
(5) Employees taken into consideration
(A) In general
Any employee who is eligible to make an employee
contribution (or, if the employer takes elective contributions
into account, elective contributions) or to receive a matching
contribution under the plan being tested under paragraph (1)
shall be considered an eligible employee for purposes of this
subsection.
(B) Certain nonparticipants
If an employee contribution is required as a condition of
participation in the plan, any employee who would be a
participant in the plan if such employee made such a
contribution shall be treated as an eligible employee on behalf
of whom no employer contributions are made.
(C) Special rule for early participation
If an employer elects to apply section 410(b)(4)(B) in
determining whether a plan meets the requirements of section
410(b), the employer may, in determining whether the plan meets
the requirements of paragraph (2), exclude from consideration
all eligible employees (other than highly compensated employees)
who have not met the minimum age and service requirements of
section 410(a)(1)(A).
(6) Plan not disqualified if excess aggregate contributions
distributed before end of following plan year
(A) In general
A plan shall not be treated as failing to meet the
requirements of paragraph (1) for any plan year if, before the
close of the following plan year, the amount of the excess
aggregate contributions for such plan year (and any income
allocable to such contributions) is distributed (or, if
forfeitable, is forfeited). Such contributions (and such income)
may be distributed without regard to any other provision of law.
(B) Excess aggregate contributions
For purposes of subparagraph (A), the term ``excess
aggregate contributions'' means, with respect to any plan year,
the excess of--
(i) the aggregate amount of the matching contributions
and employee contributions (and any qualified nonelective
contribution or elective contribution taken into account in
computing the contribution percentage) actually made on
behalf of highly compensated employees for such plan year,
over
(ii) the maximum amount of such contributions permitted
under the limitations of paragraph (2)(A) (determined by
reducing contributions made on behalf of highly compensated
employees in order of their contribution percentages
beginning with the highest of such percentages).
(C) Method of distributing excess aggregate contributions
Any distribution of the excess aggregate contributions for
any plan year shall be made to highly compensated employees on
the basis of the amount of contributions on behalf of, or by,
each such employee. Forfeitures of excess aggregate
contributions may not be allocated to participants whose
contributions are reduced under this paragraph.
(D) Coordination with subsection (k) and 402(g)
The determination of the amount of excess aggregate
contributions with respect to a plan shall be made after--
(i) first determining the excess deferrals (within the
meaning of section 402(g)), and
(ii) then determining the excess contributions under
subsection (k).
(7) Treatment of distributions
(A) Additional tax of section 72(t) not applicable
No tax shall be imposed under section 72(t) on any amount
required to be distributed under paragraph (6).
(B) Exclusion of employee contributions
Any distribution attributable to employee contributions
shall not be included in gross income except to the extent
attributable to income on such contributions.
(8) Highly compensated employee
For purposes of this subsection, the term ``highly compensated
employee'' has the meaning given to such term by section 414(q).
(9) Regulations
The Secretary shall prescribe such regulations as may be
necessary to carry out the purposes of this subsection and
subsection (k), including regulations permitting appropriate
aggregation of plans and contributions.
(10) Alternative method of satisfying tests
A defined contribution plan shall be treated as meeting the
requirements of paragraph (2) with respect to matching contributions
if the plan--
(A) meets the contribution requirements of subparagraph (B)
of subsection (k)(11),
(B) meets the exclusive plan requirements of subsection
(k)(11)(C), and
(C) meets the vesting requirements of section 408(p)(3).
(11) Additional alternative method of satisfying tests
(A) In general
A defined contribution plan shall be treated as meeting the
requirements of paragraph (2) with respect to matching
contributions if the plan--
(i) meets the contribution requirements of subparagraph
(B) or (C) of subsection (k)(12),
(ii) meets the notice requirements of subsection
(k)(12)(D), and
(iii) meets the requirements of subparagraph (B).
(B) Limitation on matching contributions
The requirements of this subparagraph are met if--
(i) matching contributions on behalf of any employee may
not be made with respect to an employee's contributions or
elective deferrals in excess of 6 percent of the employee's
compensation,
(ii) the rate of an employer's matching contribution
does not increase as the rate of an employee's contributions
or elective deferrals increase, and
(iii) the matching contribution with respect to any
highly compensated employee at any rate of an employee
contribution or rate of elective deferral is not greater
than that with respect to an employee who is not a highly
compensated employee.
(12) Cross reference
For excise tax on certain excess contributions, see section
4979.
(n) Coordination with qualified domestic relations orders
The Secretary shall prescribe such rules or regulations as may be
necessary to coordinate the requirements of subsection (a)(13)(B) and
section 414(p) (and the regulations issued by the Secretary of Labor
thereunder) with the other provisions of this chapter.
(o) Cross reference
For exemption from tax of a trust qualified under this
section, see section 501(a).
(Aug. 16, 1954, ch. 736, 68A Stat. 134; Pub. L. 87-792, Sec. 2, Oct. 10,
1962, 76 Stat. 809; Pub. L. 87-863, Sec. 2(a), Oct. 23, 1962, 76 Stat.
1141; Pub. L. 88-272, title II, Sec. 219(a), Feb. 26, 1964, 78 Stat. 57;
Pub. L. 89-97, title I, Sec. 106(d)(4), July 30, 1965, 79 Stat. 337;
Pub. L. 89-809, title II, Secs. 204(b)(1), (c), 205(a), Nov. 13, 1966,
80 Stat. 1577, 1578; Pub. L. 91-691, Sec. 1(a), Jan. 12, 1971, 84 Stat.
2074; Pub. L. 93-406, title II, Secs. 1012(b), 1016(a)(2), 1021,
1022(a)-(d), (f), 1023, 2001(c)-(e)(4), (h)(1), 2004(a)(1), Sept. 2,
1974, 88 Stat. 913, 929, 935, 938-940, 943, 952-955, 957, 979; Pub. L.
94-267, Sec. 1(c)(1), (2), Apr. 15, 1976, 90 Stat. 367; Pub. L. 94-455,
title VIII, Sec. 803(b)(2), title XV, Sec. 1505(b), title XIX,
Secs. 1901(a)(56), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1584, 1738,
1773, 1834; Pub. L. 95-600, title I, Secs. 135(a), 141(f)(3), 143(a),
152(e), Nov. 6, 1978, 92 Stat. 2785, 2795, 2796, 2799; Pub. L. 96-222,
title I, Sec. 101(a)(7)(L)(i)(V), (9), (14)(E)(iii), Apr. 1, 1980, 94
Stat. 199, 201, 205; Pub. L. 96-364, title II, Sec. 208(a), (e), title
IV, Sec. 410(b), Sept. 26, 1980, 94 Stat. 1289, 1290, 1308; Pub. L. 96-
605, title II, Secs. 221(a), 225(b)(1), (2), Dec. 28, 1980, 94 Stat.
3528, 3529; Pub. L. 97-34, title III, Secs. 312(b)(1), (c)(2)-(4),
(e)(2), 314(a)(1), 335, 338(a), Aug. 13, 1981, 95 Stat. 283-286, 297,
298; Pub. L. 97-248, title II, Secs. 237(a), (b), (e)(1), 238(b),
(d)(1), (2), 240(b), 242(a), 249(a), 254(a), Sept. 3, 1982, 96 Stat.
511-513, 520, 521, 527, 533; Pub. L. 97-448, title I,
Sec. 103(c)(10)(A), (d)(2), (g)(2)(A), title III, Sec. 306(a)(12), Jan.
12, 1983, 96 Stat. 2377-2379, 2405; Pub. L. 98-21, title I,
Sec. 124(c)(4)(A), Apr. 20, 1983, 97 Stat. 91; Pub. L. 98-369, div. A,
title II, Sec. 211(b)(5), title IV, Secs. 474(r)(13), 491(e)(4), (5),
title V, Secs. 521(a), 524(d)(1), 527(a), (b), 528(b), title VII,
Sec. 713(c)(2)(A), (d)(3), July 18, 1984, 98 Stat. 754, 842, 853, 865,
872, 875-877, 957, 958; Pub. L. 98-397, title II, Secs. 203(a), 204(a),
title III, Sec. 301(b), Aug. 23, 1984, 98 Stat. 1440, 1445, 1451; Pub.
L. 99-514, title XI, Secs. 1106(d)(1), 1111(a), (b), 1112(b), (d)(1),
1114(b)(7), 1116(a)-(e), 1117(a), 1119(a), 1121(b), 1136(a), 1143(a),
1145(a), 1171(b)(5), 1174(c)(2)(A), 1175(a)(1), 1176(a), title XVIII,
Secs. 1848(b), 1852(a)(4)(A), (6), (b)(8), (g), (h)(1), 1879(g)(1), (2),
1898(b)(2)(A), (3)(A), (7)(A), (13)(A), (14)(A), (c)(3), 1899A(10), Oct.
22, 1986, 100 Stat. 2435, 2439, 2444, 2445, 2451, 2454-2456, 2459, 2463,
2465, 2485, 2490, 2513, 2518, 2519, 2857, 2865-2869, 2906, 2907, 2945,
2948, 2950, 2953, 2958; Pub. L. 100-203, title IX, Sec. 9341(a), Dec.
22, 1987, 101 Stat. 1330-369; Pub. L. 100-647, title I,
Secs. 1011(c)(7)(A), (d)(4), (e)(3), (g)(1)-(3), (h)(3), (k)(1)(A), (B),
s2)-(7), (9), (l)(1)-(5)(A), (6), (7), 1011A(j), (l), 1011B(j)(1), (2),
(6), (k)(1), (2), title VI, Secs. 6053(a), 6055(a), 6071(a), (b), Nov.
10, 1988, 102 Stat. 3458-3460, 3463, 3464, 3468-3470, 3483, 3492, 3493,
3696, 3697, 3705; Pub. L. 101-140, title II, Sec. 203(a)(5), Nov. 8,
1989, 103 Stat. 830; Pub. L. 101-239, title VII, Secs. 7311(a),
7811(g)(1), (h)(3), 7816(l), 7881(i)(1)(A), (4)(A), Dec. 19, 1989, 103
Stat. 2354, 2409, 2421, 2442; Pub. L. 101-508, title XII, Sec. 12011(b),
Nov. 5, 1990, 104 Stat. 1388-571; Pub. L. 102-318, title V,
Secs. 521(b)(5)-(8), 522(a)(1), July 3, 1992, 106 Stat. 310, 313; Pub.
L. 103-66, title XIII, Sec. 13212(a), Aug. 10, 1993, 107 Stat. 471; Pub.
L. 103-465, title VII, Secs. 732(a), 751(a)(9)(C), 766(b), 776(d), Dec.
8, 1994, 108 Stat. 5004, 5021, 5037, 5048; Pub. L. 104-188, title I,
Secs. 1401(b)(5), (6), 1404(a), 1422(a), (b), 1426(a), 1431(b)(2),
(c)(1)(B), 1432(a), (b), 1433(a)-(e), 1441(a), 1443(a), (b), 1445(a),
1459(a), (b), 1704(a), (t)(67), Aug. 20, 1996, 110 Stat. 1789, 1791,
1800, 1801, 1803-1809, 1811, 1820, 1878, 1890; Pub. L. 105-34, title XV,
Secs. 1502(b), 1505(a)(1), (2), (b), 1525(a), 1530(c)(1), title XVI,
Sec. 1601(d)(2)(A), (B), (D), (3), Aug. 5, 1997, 111 Stat. 1059, 1063,
1072, 1078, 1088, 1089; Pub. L. 106-554, Sec. 1(a)(7) [title III,
Sec. 316(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A-644; Pub. L. 107-16,
title VI, Secs. 611(c), (f)(3), (g)(1), 641(e)(3), 643(b), 646(a)(1),
657(a), 666(a), June 7, 2001, 115 Stat. 97, 99, 120, 122, 126, 135,
143.)
Amendment of Section
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
References in Text
For the effective date of this paragraph, referred to in subsec.
(a)(11)(H)(i), (ii), see Effective Date of 1974 Amendment note set out
below.
The Employee Retirement Income Security Act of 1974, referred to in
subsec. (a)(12), (13)(C)(i)(II), (III), (iii)(II), (29)(B)(i), (33)(C),
(34), is Pub. L. 93-406, Sept. 2, 1974, 88 Stat. 829, as amended. Part 4
of subtitle B of title I of the Act is classified generally to part 4
(Sec. 1101 et seq.) of subtitle B of subchapter I of chapter 18 of Title
29, Labor. Title IV of the Act is classified generally to subchapter III
(Sec. 1301 et seq.) of chapter 18 of Title 29. Sections 412, 4021, and
4050 of the Act are classified to sections 1112, 1321, and 1350,
respectively, of Title 29. For complete classification of this Act to
the Code, see Short Title note set out under section 1001 of Title 29
and Tables.
The Social Security Act, referred to in subsecs. (a)(15),
(l)(4)(C)(ii), (5)(A)(ii), (D)(ii), (E)(i), (F), is act Aug. 14, 1935,
ch. 531, 49 Stat. 620, as amended, which is classified generally to
chapter 7 (Sec. 301 et seq.) of Title 42, The Public Health and Welfare.
Title II of the Social Security Act is classified generally to
subchapter II (Sec. 401 et seq.) of Title 42. Sections 223(d) and 230 of
the Social Security Act are classified to sections 423(d) and 430,
respectively, of Title 42. For complete classification of this Act to
the Code, see section 1305 of Title 42 and Tables.
Section 521 of the Unemployment Compensation Amendments of 1992,
referred to in subsec. (a)(20), is section 521 of Pub. L. 102-318, which
amended section 402(a) to (f) of this title generally, and, as so
amended, subsec. (a) of section 402 does not contain a par. (6)(B).
The Railroad Retirement Act of 1974, referred to in subsec. (l)(6),
is act Aug. 29, 1935, ch. 812, as amended generally by Pub. L. 93-445,
title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305, which is classified
generally to subchapter IV (Sec. 231 et seq.) of chapter 9 of Title 45,
Railroads. For further details and complete classification of this Act
to the Code, see Codification note set out preceding section 231 of
Title 45, section 231t of Title 45, and Tables.
Amendments
2001--Subsec. (a)(17). Pub. L. 107-16, Secs. 611(c)(1), 901,
temporarily substituted ``$200,000'' for ``$150,000'' in two places. See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (a)(17)(B). Pub. L. 107-16, Secs. 611(c)(2), 901,
temporarily substituted ``July 1, 2001'' for ``October 1, 1993'' and
temporarily substituted ``$5,000'' for ``$10,000'' in two places. See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (a)(31). Pub. L. 107-16, Secs. 657(a)(2)(A), 901,
temporarily substituted ``Direct'' for ``Optional direct'' in heading.
See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (a)(31)(B). Pub. L. 107-16, Secs. 657(a)(1), 901,
temporarily added subpar. (B). Former subpar. (B) redesignated (C). See
Effective and Termination Dates of 2001 Amendment note below.
Pub. L. 107-16, Secs. 643(b), 901, temporarily inserted at end ``The
preceding sentence shall not apply to such distribution if the plan to
which such distribution is transferred--
``(i) agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution
which is includible in gross income and the portion of such
distribution which is not so includible, or
``(ii) is an eligible retirement plan described in clause (i) or
(ii) of section 402(c)(8)(B).''
See Effective and Termination Dates of 2001 Amendment note below.
Pub. L. 107-16, Secs. 641(e)(3), 901, temporarily substituted ``,
403(a)(4), 403(b)(8), and 457(e)(16)'' for ``and 403(a)(4)''. See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (a)(31)(C). Pub. L. 107-16, Secs. 657(a)(2)(B), 901,
temporarily substituted ``Subparagraphs (A) and (B)'' for ``Subparagraph
(A)''. See Effective and Termination Dates of 2001 Amendment note below.
Pub. L. 107-16, Secs. 657(a)(1), 901, temporarily redesignated
subpar. (B) as (C). Former subpar. (C) redesignated (D). See Effective
and Termination Dates of 2001 Amendment note below.
Subsec. (a)(31)(D), (E). Pub. L. 107-16, Secs. 657(a)(1), 901,
temporarily redesignated subpars. (C) and (D) as (D) and (E),
respectively. See Effective and Termination Dates of 2001 Amendment note
below.
Subsec. (c)(2)(A). Pub. L. 107-16, Secs. 611(g)(1), 901, temporarily
inserted at end ``For purposes of this part only (other than sections
419 and 419A), this subparagraph shall be applied as if the term `trade
or business' for purposes of section 1402 included service described in
section 1402(c)(6).'' See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (k)(2)(B)(i)(I). Pub. L. 107-16, Secs. 646(a)(1)(A), 901,
temporarily substituted ``severance from employment'' for ``separation
from service''. See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (k)(10). Pub. L. 107-16, Secs. 646(a)(1)(C)(iii), 901,
temporarily struck out ``or disposition of assets or subsidiary'' after
``plan'' in heading. See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (k)(10)(A). Pub. L. 107-16, Secs. 646(a)(1)(B), 901,
temporarily reenacted heading without change and amended text generally,
substituting present provisions for provisions including termination of
plan, disposition of assets, and disposition of subsidiary as events
described in this paragraph. See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (k)(10)(B)(i). Pub. L. 107-16, Secs. 646(a)(1)(C)(i), 901,
temporarily substituted ``A termination'' for ``An event'' and ``the
termination'' for ``the event''. See Effective and Termination Dates of
2001 Amendment note below.
Subsec. (k)(10)(C). Pub. L. 107-16, Secs. 646(a)(1)(C)(ii), 901,
temporarily struck out heading and text of subpar. (C). Text read as
follows: ``An event shall not be treated as described in clause (ii) or
(iii) of subparagraph (A) unless the transferor corporation continues to
maintain the plan after the disposition.'' See Effective and Termination
Dates of 2001 Amendment note below.
Subsec. (k)(11)(B)(i)(I). Pub. L. 107-16, Secs. 611(f)(3)(A), 901,
temporarily substituted ``the amount in effect under section
408(p)(2)(A)(ii)'' for ``$6,000''. See Effective and Termination Dates
of 2001 Amendment note below.
Subsec. (k)(11)(E). Pub. L. 107-16, Secs. 611(f)(3)(B), 901,
temporarily struck out heading and text of subpar. (E). Text read as
follows: ``The Secretary shall adjust the $6,000 amount under
subparagraph (B)(i)(I) at the same time and in the same manner as under
section 408(p)(2)(E).'' See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (m)(9). Pub. L. 107-16, Secs. 666(a), 901, temporarily
reenacted heading without change and amended text generally. Prior to
amendment, text read as follows: ``The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of this
subsection and subsection (k) including--
``(A) such regulations as may be necessary to prevent the
multiple use of the alternative limitation with respect to any
highly compensated employee, and
``(B) regulations permitting appropriate aggregation of plans
and contributions.
For purposes of the preceding sentence, the term `alternative
limitation' means the limitation of section 401(k)(3)(A)(ii)(II) and the
limitation of paragraph (2)(A)(ii) of this subsection.''
See Effective and Termination Dates of 2001 Amendment note below.
2000--Subsec. (k)(10)(B)(ii). Pub. L. 106-554 inserted at end ``Such
term includes a distribution of an annuity contract from--
``(I) a trust which forms a part of a plan described in section
401(a) and which is exempt from tax under section 501(a), or
``(II) an annuity plan described in section 403(a).''
1997--Subsec. (a)(1). Pub. L. 105-34, Sec. 1530(c)(1), inserted ``or
by a charitable remainder trust pursuant to a qualified gratuitous
transfer (as defined in section 664(g)(1)),'' after ``stock bonus
plans),''.
Subsec. (a)(5)(G). Pub. L. 105-34, Sec. 1505(a)(1), added subpar.
(G).
Subsec. (a)(13)(C), (D). Pub. L. 105-34, Sec. 1502(b), added
subpars. (C) and (D).
Subsec. (a)(26)(H). Pub. L. 105-34, Sec. 1505(a)(2), amended heading
and text of subpar. (H) generally. Prior to amendment, text read as
follows:
``(i) In general.--An employer may elect to have this paragraph
applied separately with respect to any classification of qualified
public safety employees for whom a separate plan is maintained.
``(ii) Qualified public safety employee.--For purposes of this
subparagraph, the term `qualified public safety employee' means any
employee of any police department or fire department organized and
operated by a State or political subdivision if the employee provides
police protection, firefighting services, or emergency medical services
for any area within the jurisdiction of such State or political
subdivision.''
Subsec. (k)(3)(G). Pub. L. 105-34, Sec. 1505(b), added subpar. (G).
Subsec. (k)(7)(B)(iii) to (v). Pub. L. 105-34, Sec. 1525(a), struck
out ``and'' at end of cl. (iii), added cl. (iv), redesignated former cl.
(iv) as (v), and in cl. (v), substituted ``, (iii), or (iv)'' for ``or
(iii)''.
Subsec. (k)(11)(B)(iii). Pub. L. 105-34, Sec. 1601(d)(2)(D), added
cl. (iii).
Subsec. (k)(11)(D)(ii). Pub. L. 105-34, Sec. 1601(d)(2)(A), inserted
``if such plan allows only contributions required under this paragraph''
before period at end.
Subsec. (k)(11)(E). Pub. L. 105-34, Sec. 1601(d)(2)(B), added
subpar. (E).
Subsec. (m)(11). Pub. L. 105-34, Sec. 1601(d)(3), substituted
``Additional alternative'' for ``Alternative'' in heading.
1996--Subsec. (a)(5)(D)(ii). Pub. L. 104-188, Sec. 1431(c)(1)(B),
substituted ``section 414(q)(4)'' for ``section 414(q)(7)'' in
introductory provisions.
Subsec. (a)(5)(F). Pub. L. 104-188, Sec. 1445(a), added subpar. (F).
Subsec. (a)(9)(C). Pub. L. 104-188, Sec. 1404(a), reenacted heading
without change and amended text generally. Prior to amendment, text read
as follows: ``For purposes of this paragraph, the term `required
beginning date' means April 1 of the calendar year following the
calendar year in which the employee attains age 70\1/2\. In the case of
a governmental plan or church plan, the required beginning date shall be
the later of the date determined under the preceding sentence or April 1
of the calendar year following the calendar year in which the employee
retires. For purposes of this subparagraph, the term `church plan' means
a plan maintained by a church for church employees, and the term
`church' means any church (as defined in section 3121(w)(3)(A)) or
qualified church-controlled organization (as defined in section
3121(w)(3)(B)).''
Subsec. (a)(17)(A). Pub. L. 104-188, Sec. 1431(b)(2), struck out at
end ``In determining the compensation of an employee, the rules of
section 414(q)(6) shall apply, except that in applying such rules, the
term `family' shall include only the spouse of the employee and any
lineal descendants of the employee who have not attained age 19 before
the close of the year.''
Subsec. (a)(20). Pub. L. 104-188, Sec. 1704(t)(67), substituted
``section 521'' for ``section 211'' in last sentence.
Subsec. (a)(26)(A). Pub. L. 104-188, Sec. 1432(a), reenacted heading
without change and amended text generally. Prior to amendment, text read
as follows: ``A trust shall not constitute a qualified trust under this
subsection unless such trust is part of a plan which on each day of the
plan year benefits the lesser of--
``(i) 50 employees of the employer, or
``(ii) 40 percent or more of all employees of the employer.''
Subsec. (a)(26)(G). Pub. L. 104-188, Sec. 1432(b), substituted
``paragraph (2)(A) or (7)'' for ``paragraph (7)''.
Subsec. (a)(28)(B)(v). Pub. L. 104-188, Sec. 1401(b)(5), struck out
cl. (v) which read as follows:
``(v) Coordination with distribution rules.--Any distribution
required by this subparagraph shall not be taken into account in
determining whether a subsequent distribution is a lump sum distribution
under section 402(d)(4)(A) or in determining whether section 402(c)(10)
applies.''
Subsec. (d). Pub. L. 104-188, Sec. 1441(a), amended subsec. (d)
generally, substituting provisions relating to contribution limit on
owner-employees for former provisions relating to additional
requirements for qualification of trusts and plans benefiting owner-
employees.
Subsec. (h). Pub. L. 104-188, Sec. 1704(a), provided that, except as
otherwise expressly provided, whenever in title XII of Pub. L. 101-508
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986. Section 12011(b) of title XII of Pub. L. 101-508
directed the amendment of this section without specifying that the
amendment was to the Internal Revenue Code of 1986. See 1990 Amendment
note below.
Subsec. (k)(3)(A). Pub. L. 104-188, Sec. 1433(c)(1), in introductory
provisions of cl. (ii) substituted ``the plan year'' for ``such year''
and ``for the preceding plan year'' for ``for such plan year'' and
inserted at end of closing provisions of subpar. (A) ``An arrangement
may apply clause (ii) by using the plan year rather than the preceding
plan year if the employer so elects, except that if such an election is
made, it may not be changed except as provided by the Secretary.''
Subsec. (k)(3)(E). Pub. L. 104-188, Sec. 1433(d)(1), added subpar.
(E).
Subsec. (k)(3)(F). Pub. L. 104-188, Sec. 1459(a), added subpar. (F).
Subsec. (k)(4)(B). Pub. L. 104-188, Sec. 1426(a), amended subpar.
(B) generally. Prior to amendment, subpar. (B) read as follows:
``(B) State and local governments and tax-exempt organizations not
eligible.--A cash or deferred arrangement shall not be treated as a
qualified cash or deferred arrangement if it is part of a plan
maintained by--
``(i) a State or local government or political subdivision
thereof, or any agency or instrumentality thereof, or
``(ii) any organization exempt from tax under this subtitle.
This subparagraph shall not apply to a rural cooperative plan.''
Subsec. (k)(7)(B)(i). Pub. L. 104-188, Sec. 1443(b), amended cl. (i)
generally. Prior to amendment, cl. (i) read as follows: ``any
organization which--
``(I) is exempt from tax under this subtitle or which is a State
or local government or political subdivision thereof (or agency or
instrumentality thereof), and
``(II) is engaged primarily in providing electric service on a
mutual or cooperative basis,''.
Subsec. (k)(7)(C). Pub. L. 104-188, Sec. 1443(a), added subpar. (C).
Subsec. (k)(8)(C). Pub. L. 104-188, Sec. 1433(e)(1), substituted
``on the basis of the amount of contributions by, or on behalf of, each
of such employees'' for ``on the basis of the respective portions of the
excess contributions attributable to each of such employees''.
Subsec. (k)(10)(B)(ii). Pub. L. 104-188, Sec. 1401(b)(6), amended
cl. (ii) generally. Prior to amendment, cl. (ii) read as follows:
``(ii) Lump sum distribution.--For purposes of this subparagraph,
the term `lump sum distribution' has the meaning given such term by
section 402(d)(4), without regard to clauses (i), (ii), (iii), and (iv)
of subparagraph (A), subparagraph (B), or subparagraph (F) thereof.''
Subsec. (k)(11). Pub. L. 104-188, Sec. 1422(a), added par. (11).
Subsec. (k)(12). Pub. L. 104-188, Sec. 1433(a), added par. (12).
Subsec. (m)(2)(A). Pub. L. 104-188, Sec. 1433(c)(2), inserted ``for
such plan year'' after ``highly compensated employees'' in introductory
provisions, inserted ``for the preceding plan year'' after ``eligible
employees'' wherever appearing in cls. (i) and (ii), and inserted at end
``This subparagraph may be applied by using the plan year rather than
the preceding plan year if the employer so elects, except that if such
an election is made, it may not be changed except as provided by the
Secretary.''
Subsec. (m)(3). Pub. L. 104-188, Sec. 1433(d)(2), inserted at end of
closing provisions ``Rules similar to the rules of subsection (k)(3)(E)
shall apply for purposes of this subsection.''
Subsec. (m)(5)(C). Pub. L. 104-188, Sec. 1459(b), added subpar. (C).
Subsec. (m)(6)(C). Pub. L. 104-188, Sec. 1433(e)(2), substituted
``on the basis of the amount of contributions on behalf of, or by, each
such employee'' for ``on the basis of the respective portions of such
amounts attributable to each of such employees''.
Subsec. (m)(10). Pub. L. 104-188, Sec. 1422(b), added par. (10).
Former par. (10) redesignated (11).
Subsec. (m)(11). Pub. L. 104-188, Sec. 1433(b), added par. (11).
Former par. (11) redesignated (12).
Pub. L. 104-188, Sec. 1422(b), redesignated par. (10) as (11).
Subsec. (m)(12). Pub. L. 104-188, Sec. 1433(b), redesignated par.
(11) as (12).
1994--Subsec. (a)(17)(B). Pub. L. 103-465, Sec. 732(a), reenacted
subpar. (B) heading without change and amended text generally. Prior to
amendment, text read as follows:
``(i) In general.--If, for any calendar year after 1994, the excess
(if any) of--
``(I) $150,000, increased by the cost-of-living adjustment for
the calendar year, over
``(II) the dollar amount in effect under subparagraph (A) for
taxable years beginning in the calendar year,
is equal to or greater than $10,000, then the $150,000 amount under
subparagraph (A) (as previously adjusted under this subparagraph) for
any taxable year beginning in any subsequent calendar year shall be
increased by the amount of such excess, rounded to the next lowest
multiple of $10,000.
``(ii) Cost-of-living adjustment.--The cost-of-living adjustment for
any calendar year shall be the adjustment made under section 415(d) for
such calendar year, except that the base period for purposes of section
415(d)(1)(A) shall be the calendar quarter beginning October 1, 1993.''
Subsec. (a)(32). Pub. L. 103-465, Sec. 751(a)(9)(C), which directed
amendment of subsec. (a) by adding par. (32) at end, was executed by
adding par. (32) after par. (31) to reflect the probable intent of
Congress.
Subsec. (a)(33). Pub. L. 103-465, Sec. 766(b), which directed
amendment of subsec. (a) by adding par. (33) at end, was executed by
adding par. (33) after par. (32) to reflect the probable intent of
Congress.
Subsec. (a)(34). Pub. L. 103-465, Sec. 776(d), added par. (34).
1993--Subsec. (a)(17). Pub. L. 103-66 inserted par. heading,
designated existing provisions as subpar. (A), inserted subpar. heading,
substituted ``$150,000'' for ``$200,000'' in first sentence, struck out
after first sentence ``The Secretary shall adjust the $200,000 amount at
the same time and in the same manner as under section 415(d).'', and
added subpar. (B).
1992--Subsec. (a)(20). Pub. L. 102-318, Sec. 521(b)(5), substituted
``1 or more distributions within 1 taxable year to a distributee on
account of a termination of the plan of which the trust is a part, or in
the case of a profit-sharing or stock bonus plan, a complete
discontinuance of contributions under such plan'' for ``a qualified
total distribution described in section 402(a)(5)(E)(i)(I)'' and
inserted at end ``For purposes of this paragraph, rules similar to the
rules of section 402(a)(6)(B) (as in effect before its repeal by section
211 of the Unemployment Compensation Amendments of 1992) shall apply.''
Subsec. (a)(28)(B)(v). Pub. L. 102-318, Sec. 521(b)(6), amended cl.
(v) generally. Prior to amendment, cl. (v) read as follows: ``Any
distribution required by this subparagraph shall not be taken into
account in determining whether--
``(I) a subsequent distribution is a lump-sum distribution under
section 402(e)(4)(A), or
``(II) section 402(a)(5)(D)(iii) applies to a subsequent
distribution.''
Subsec. (a)(31). Pub. L. 102-318, Sec. 522(a)(1), added par. (31).
Subsec. (k)(2)(B)(i)(IV). Pub. L. 102-318, Sec. 521(b)(7),
substituted ``402(e)(3)'' for ``402(a)(8)''.
Subsec. (k)(10)(B)(ii). Pub. L. 102-318, Sec. 521(b)(8), substituted
``402(d)(4)'' for ``402(e)(4)'' and ``subparagraph (F)'' for
``subparagraph (H)''.
1990--Subsec. (h). Pub. L. 101-508, which directed that ``section
401(h) is amended by inserting `, and subject to the provisions of
section 420' '' without specifying that amendment was to the Internal
Revenue Code of 1986, was executed by making the insertion in subsec.
(h) of this section. See 1996 Amendment note above.
1989--Subsec. (a)(9)(C). Pub. L. 101-140 struck out ``(as defined in
section 89(i)(4))'' after ``governmental or church plan'' and inserted
at end ``For purposes of this subparagraph, the term `church plan' means
a plan maintained by a church for church employees, and the term
`church' means any church (as defined in section 3121(w)(3)(A)) or
qualified church-controlled organization (as defined in section
3121(w)(3)(B)).''
Subsec. (a)(28)(B)(ii)(II). Pub. L. 101-239, Sec. 7811(h)(3), made
technical correction to directory language of Pub. L. 100-647,
Sec. 1011B(j)(1), see 1988 Amendment note below.
Subsec. (a)(29)(A)(i). Pub. L. 101-239, Sec. 7881(i)(4)(A),
substituted ``multiemployer plan) to which the requirements of section
412 apply'' for ``multiemployer plan)''.
Subsec. (a)(29)(C)(i)(II). Pub. L. 101-239, Sec. 7881(i)(1)(A),
substituted ``plan amendment and any other plan amendments adopted after
December 22, 1987, and before such plan amendment'' for ``plan
amendment''.
Subsec. (a)(30). Pub. L. 101-239, Sec. 7811(g)(1), moved par. (30)
from a position after the undesignated closing par. to a position
immediately after par. (29).
Subsec. (h). Pub. L. 101-239, Sec. 7311(a), inserted at end ``In no
event shall the requirements of paragraph (1) be treated as met if the
aggregate actual contributions for medical benefits, when added to
actual contributions for life insurance protection under the plan,
exceed 25 percent of the total actual contributions to the plan (other
than contributions to fund past service credits) after the date on which
the account is established.''
Subsec. (k)(4)(B). Pub. L. 101-239, Sec. 7816(l), amended Pub. L.
100-647, Sec. 6071(b)(2), see 1988 Amendment note below.
1988--Subsec. (a)(9)(C). Pub. L. 100-647, Sec. 6053(a), inserted at
end ``In the case of a governmental plan or church plan (as defined in
section 89(i)(4)), the required beginning date shall be the later of the
date determined under the preceding sentence or April 1 of the calendar
year following the calendar year in which the employee retires.''
Subsec. (a)(11)(E), (F). Pub. L. 100-647, Sec. 1011A(l),
redesignated subpar. (E), relating to cross reference, as (F).
Subsec. (a)(17). Pub. L. 100-647, Sec. 1011(d)(4), inserted at end
``In determining the compensation of an employee, the rules of section
414(q)(6) shall apply, except that in applying such rules, the term
`family' shall include only the spouse of the employee and any lineal
descendants of the employee who have not attained age 19 before the
close of the year.''
Subsec. (a)(22). Pub. L. 100-647, Sec. 1011B(k)(1), (2), substituted
``is not readily tradable on an established market'' for ``is not
publicly traded'' in subpar. (A) and in last sentence, and inserted at
end ``For purposes of the preceding sentence, subsections (b), (c), (m),
and (o) of section 414 shall not apply except for determining whether
stock of the employer is not readily tradable on an established
market.''
Subsec. (a)(26)(F), (G). Pub. L. 100-647, Sec. 1011(h)(3), added
subpars. (F) and (G). Former subpar. (F) redesignated (H).
Subsec. (a)(26)(H). Pub. L. 100-647, Sec. 6055(a), added subpar.
(H). Former subpar. (H) redesignated (I).
Pub. L. 100-647, Sec. 1011(h)(3), redesignated former subpar. (F) as
(H).
Subsec. (a)(26)(I). Pub. L. 100-647, Sec. 6055(a), redesignated
former subpar. (H) as (I).
Subsec. (a)(27). Pub. L. 100-647, Sec. 1011A(j), inserted par.
heading, designated existing provisions as subpar. (A), inserted subpar.
(A) heading, and added subpar. (B).
Subsec. (a)(28)(B)(ii)(II). Pub. L. 100-647, Sec. 1011B(j)(1), as
amended by Pub. L. 101-239, Sec. 7811(h)(3), inserted ``and within 90
days after the period during which the election may be made, the plan
invests the portion of the participant's account covered by the election
in accordance with such election'' after ``clause (i)''.
Subsec. (a)(28)(B)(iv). Pub. L. 100-647, Sec. 1011B(d)(2), amended
cl. (iv) generally. Prior to amendment, cl. (iv) read as follows: ``For
purposes of this subparagraph, the term `qualified election period'
means the 5-plan-year period beginning with the plan year after the plan
year in which the participant attains age 55 (or, if later, beginning
with the plan year after the 1st plan year in which the individual 1st
became a qualified participant).''
Subsec. (a)(28)(B)(v). Pub. L. 100-647, Sec. 1011B(j)(6), added cl.
(v).
Subsec. (a)(30). Pub. L. 100-647, Sec. 1011(c)(7)(A), added par.
(30) at end.
Subsec. (k)(1), (2). Pub. L. 100-647, Sec. 6071(a), struck out
``electric'' after ``or a rural''.
Subsec. (k)(2)(B). Pub. L. 100-647, Sec. 1011(k)(2)(A), inserted
``amounts held by the trust which are attributable to employer
contributions made pursuant to the employee's election'' after ``under
which''.
Subsec. (k)(2)(B)(i). Pub. L. 100-647, Sec. 1011(k)(2)(B), struck
out ``amounts held by the trust which are attributable to employer
contributions made pursuant to the employee's election'' before ``may
not be''.
Pub. L. 100-647, Sec. 1011(k)(1)(A), added subcl. (II), redesignated
former subcls. (V) and (VI) as (III) and (IV), respectively, and struck
out former subcls. (II) to (IV) which read as follows:
``(II) termination of the plan without establishment of a successor
plan,
``(III) the date of the sale by a corporation of substantially all
of the assets (within the meaning of section 409(d)(2)) used by such
corporation in a trade or business of such corporation with respect to
an employee who continues employment with the corporation acquiring such
assets,
``(IV) the date of the sale by a corporation of such corporation's
interest in a subsidiary (within the meaning of section 409(d)(3)) with
respect to an employee who continues employment with such subsidiary,''.
Subsec. (k)(2)(B)(ii). Pub. L. 100-647, Sec. 1011(k)(2)(C), struck
out ``amounts'' before ``will not be''.
Subsec. (k)(3)(A). Pub. L. 100-647, Sec. 1011(k)(3)(B), made
technical correction to Pub. L. 99-514, Sec. 1116(b)(4). See 1986
Amendment note below.
Subsec. (k)(3)(A)(ii). Pub. L. 100-647, Sec. 1011(k)(3)(A), inserted
``eligible'' before ``highly compensated employees'' in introductory
text, in subcl. (I), and in two places in subcl. (II).
Subsec. (k)(3)(C), (D). Pub. L. 100-647, Sec. 1011(k)(4), (5),
redesignated subpar. (C), relating to employer contributions, as (D),
and substituted ``meet'' for ``meets'' in cl. (ii)(I).
Subsec. (k)(4)(A). Pub. L. 100-647, Sec. 1011(k)(6), struck out
``provided by such employer'' after ``any other benefit''.
Subsec. (k)(4)(B). Pub. L. 100-647, Sec. 6071(b)(2), as amended by
Pub. L. 101-239, Sec. 7816(l), substituted ``rural cooperative plan''
for ``rural electric cooperative plan'' in last sentence.
Pub. L. 100-647, Sec. 1011(k)(9), inserted at end ``This
subparagraph shall not apply to a rural electric cooperative plan.''
Subsec. (k)(7). Pub. L. 100-647, Sec. 6071(b)(1), substituted
``Rural cooperative plan'' for ``Rural electric cooperative plan'' in
heading and amended text generally. Prior to amendment, text read as
follows: ``For purposes of this subsection--
``(A) In general.--The term `rural cooperative plan' means any
pension plan--
``(i) which is a defined contribution plan (as defined in
section 414(i)), and
``(ii) which is established and maintained by a rural
cooperative.
``(B) Rural cooperative defined.--For purposes of subparagraph
(A), the term `rural cooperative' means--
``(i) any organization which--
``(I) is exempt from tax under this subtitle or which is
a State or local government or political subdivision thereof
(or agency or instrumentality thereof), and
``(II) is engaged primarily in providing electric
service on a mutual or cooperative basis,
``(ii) any organization described in paragraph (4) or (6) of
section 501(c) and at least 80 percent of the members of which
are organizations described in clause (i), and
``(iii) an organization which is a national association of
organizations described in clause (i) or (ii).''
Pub. L. 100-647, Sec. 1011(e)(3), amended par. (7) generally. Prior
to amendment, par. (7) read as follows: ``For purposes of this
subsection, the term `rural electric cooperative plan' means any pension
plan--
``(A) which is a defined contribution plan (as defined in
section 414(i)), and
``(B) which is established and maintained by a rural electric
cooperative (as defined in section 457(d)(9)(B)) or a national
association of such rural electric cooperatives.''
Subsec. (k)(8)(E), (F). Pub. L. 100-647, Sec. 1011(k)(7), added
subpar. (E) and redesignated former subpar. (E) as (F).
Subsec. (k)(10). Pub. L. 100-647, Sec. 1011(k)(1)(B), added par.
(10).
Subsec. (l)(2)(B)(i), (ii). Pub. L. 100-647, Sec. 1011(g)(1)(A),
substituted ``contributed by the employer under'' for ``contributed
under''.
Subsec. (l)(3)(A)(ii). Pub. L. 100-647, Sec. 1011(g)(1)(B), inserted
``attributable to employer contributions'' after ``basis of benefits''.
Subsec. (l)(5)(C). Pub. L. 100-647, Sec. 1011(g)(2), amended subpar.
(C) generally. Prior to amendment, subpar. (C) read as follows: ``The
term `average annual compensation' means the greater of--
``(i) the participant's final average compensation (determined
without regard to subparagraph (D)(ii)), or
``(ii) the participant's highest average annual compensation for
any other period of at least 3 consecutive years.''
Subsec. (l)(5)(E). Pub. L. 100-647, Sec. 1011(g)(3), substituted
``the social security retirement age'' for ``age 65'' in cl. (i) and in
two places in cl. (ii), and added cl. (iii).
Subsec. (m)(1). Pub. L. 100-647, Sec. 1011(l)(1), substituted ``A
defined contribution plan'' for ``A plan''.
Subsec. (m)(2)(B). Pub. L. 100-647, Sec. 1011(l)(3), substituted
``contributions to which this subsection applies are made'' for ``such
contributions are made''.
Subsec. (m)(3). Pub. L. 100-647, Sec. 1011(l)(2), inserted at end
``If matching contributions are taken into account for purposes of
subsection (k)(3)(A)(ii) for any plan year, such contributions shall not
be taken into account under subparagraph (A) for such year.''
Subsec. (m)(4)(A)(i), (ii). Pub. L. 100-647, Sec. 1011(l)(4),
substituted ``a defined contribution plan'' for ``the plan''.
Subsec. (m)(4)(B). Pub. L. 100-647, Sec. 1011(l)(5)(A), substituted
``section 402(g)(3)'' for ``section 402(g)(3)(A)''.
Subsec. (m)(6)(C). Pub. L. 100-647, Sec. 1011(l)(6), substituted
``excess aggregate contributions'' for ``excess contributions'' in
heading.
Subsec. (m)(7)(A). Pub. L. 100-647, Sec. 1011(l)(7), substituted
``paragraph (6)'' for ``paragraph (8)''.
1987--Subsec. (a)(29). Pub. L. 100-203 added par. (29).
1986--Subsec. (a)(4). Pub. L. 99-514, Sec. 1114(b)(7), amended par.
(4) generally. Prior to amendment, par. (4) read as follows: ``if the
contributions or the benefits provided under the plan do not
discriminate in favor of employees who are--
``(A) officers,
``(B) shareholders, or
``(C) highly compensated.
For purposes of this paragraph, there shall be excluded from
consideration employees described in section 410(b)(3)(A) and (C).''
Subsec. (a)(5). Pub. L. 99-514, Sec. 1111(b), amended par. (5)
generally. Prior to amendment, par. (5) related to conditions which
taken alone would not require a classification to be considered
discriminatory and means of determining the basic or regular rate of
compensation of an employee and whether two or more plans of an employer
satisfy requirements of par. (4) when considered as a single plan.
Subsec. (a)(8). Pub. L. 99-514, Sec. 1119(a), substituted ``defined
benefit plan'' for ``pension plan''.
Subsec. (a)(9)(C). Pub. L. 99-514, Sec. 1121(b), amended subpar. (C)
generally. Prior to amendment, subpar. (C) read as follows: ``For
purposes of this paragraph, the term `required beginning date' means
April 1 of the calendar year following the later of--
``(i) the calendar year in which the employee attains age 70\1/
2\, or
``(ii) the calendar year in which the employee retires.
Clause (ii) shall not apply in the case of an employee who is a 5-
percent owner (as defined in section 416(i)(1)(B)) at any time during
the 5-plan-year period ending in the calendar year in which the employee
attains age 70\1/2\. If the employee becomes a 5-percent owner during
any subsequent plan year, the required beginning date shall be April 1
of the calendar year following the calendar year in which such
subsequent plan year ends.''
Pub. L. 99-514, Sec. 1852(a)(4)(A), substituted last 2 sentences for
``Except as provided in section 409(d), clause (ii) shall not apply in
the case of an employee who is a 5-percent owner (as defined in section
416) with respect to the plan year ending in the calendar year in which
the employee attains 70\1/2\.''
Subsec. (a)(9)(G). Pub. L. 99-514, Sec. 1852(a)(6), added subpar.
(G).
Subsec. (a)(11)(A)(i). Pub. L. 99-514, Sec. 1898(b)(3)(A),
substituted ``who does not die before the annuity starting date'' for
``who retires under the plan''.
Subsec. (a)(11)(B). Pub. L. 99-514, Sec. 1898(b)(2)(A)(ii), inserted
at end ``Clause (iii)(III) shall apply only with respect to the
transferred assets (and income therefrom) if the plan separately
accounts for such assets and any income therefrom.''
Subsec. (a)(11)(B)(iii)(I). Pub. L. 99-514, Sec. 1898(b)(7)(A),
inserted ``(reduced by any security interest held by the plan by reason
of a loan outstanding to such participant)''.
Pub. L. 99-514, Sec. 1898(b)(13)(A), substituted ``section
417(a)(2)'' for ``section 417(a)(2)(A)''.
Subsec. (a)(11)(B)(iii)(III). Pub. L. 99-514, Sec. 1898(b)(2)(A)(i),
inserted ``(in a transfer after December 31, 1984)''.
Subsec. (a)(11)(D), (E). Pub. L. 99-514, Sec. 1145(a), added subpar.
(E) relating to exception for plans described in section 404(c) and
redesignated former subpar. (D), relating to cross references, as (E).
Pub. L. 99-514, Sec. 1898(b)(14)(A), added subpar. (D) and
redesignated former subpar. (D), relating to cross references, as (E).
Subsec. (a)(17). Pub. L. 99-514, Sec. 1106(d)(1), added par. (17).
Subsec. (a)(20). Pub. L. 99-514, Sec. 1852(b)(8), substituted
``qualified total distribution described in section 402(a)(5)(E)(i)(I)''
for ``qualifying rollover distribution (determined as if section
402(a)(5)(D)(i) did not contain subclause (II) thereof) described in
section 402(a)(5)(A)(i) or 403(a)(4)(A)(i)''.
Subsec. (a)(21). Pub. L. 99-514, Sec. 1171(b)(5), struck out par.
(21) which read as follows: ``A trust forming part of a tax credit
employee stock ownership plan shall not fail to be considered a
permanent program merely because employer contributions under the plan
are determined solely by reference to the amount of credit which would
be allowable under section 41 if the employer made the transfer
described in section 41(c)(1)(B)''.
Subsec. (a)(22). Pub. L. 99-514, Sec. 1899A(10), substituted ``If''
for ``if''.
Pub. L. 99-514, Sec. 1176(a), inserted at end ``The requirements of
subsection (e) of section 409 shall not apply to any employees of an
employer who are participants in any defined contribution plan
established and maintained by such employer if the stock of such
employer is not publicly traded and the trade or business of such
employer consists of publishing on a regular basis a newspaper for
general circulation.''
Subsec. (a)(23). Pub. L. 99-514, Sec. 1174(c)(2)(A), amended par.
(23) generally. Prior to amendment, par. (23) read as follows: ``A stock
bonus plan which otherwise meets the requirements of this section shall
not be considered to fail to meet the requirements of this section
because it provides a cash distribution option to participants if that
option meets the requirements of section 409(h), except that in applying
section 409(h) for purposes of this paragraph, the term `employer
securities' shall include any securities of the employer held by the
plan.''
Subsec. (a)(26). Pub. L. 99-514, Sec. 1112(b), added par. (26).
Subsec. (a)(27). Pub. L. 99-514, Sec. 1136(a), added par. (27).
Subsec. (a)(28). Pub. L. 99-514, Sec. 1175(a)(1), added par. (28).
Subsec. (c)(2)(A)(v). Pub. L. 99-514, Sec. 1848(b), substituted
``section 404'' for ``sections 404 and 405(c)''.
Subsec. (c)(6). Pub. L. 99-514, Sec. 1143(a), added par. (6).
Subsec. (h). Pub. L. 99-514, Sec. 1852(h)(1), substituted ``key
employee'' for ``5-percent owner'' in two places in par. (6) and amended
last sentence generally, substituting `` `key employee' means any
employee, who'' for `` `5-percent owner' means any employee who,'' and
``key employee as defined in section 416(i)'' for ``5-percent owner (as
defined in section 416(i)(1)(B))''.
Subsec. (k)(1), (2). Pub. L. 99-514, Sec. 1879(g)(1), substituted
``, a pre-ERISA money purchase plan, or a rural electric cooperative
plan'' for ``(or a pre-ERISA money purchase plan)''.
Subsec. (k)(2)(B). Pub. L. 99-514, Sec. 1116(b)(1), amended subpar.
(B) generally. Prior to amendment, subpar. (B) read as follows: ``under
which amounts held by the trust which are attributable to employer
contributions made pursuant to the employee's election may not be
distributable to participants or other beneficiaries earlier than upon
retirement, death, disability, or separation from service (or in the
case of a profit sharing or stock bonus plan, hardship or the attainment
of age 59\1/2\) and will not be distributable merely by reason of the
completion of a stated period of participation or the lapse of a fixed
number of years; and''.
Subsec. (k)(2)(C). Pub. L. 99-514, Sec. 1852(g)(3), substituted ``is
nonforfeitable'' for ``are nonforfeitable''.
Subsec. (k)(2)(D). Pub. L. 99-514, Sec. 1116(b)(2), added subpar.
(D).
Subsec. (k)(3). Pub. L. 99-514, Sec. 1116(d)(3), which directed that
the last sentence of subpar. (B) be struck out was executed by striking
out the last sentence of par. (3) as the probable intent of Congress
because subpar. (B) is composed of only one sentence. Prior to being
stricken, such last sentence read as follows: ``For purposes of the
preceding sentence, the compensation of any employee for a plan year
shall be the amount of his compensation which is taken into account
under the plan in calculating the contribution which may be made on his
behalf for such plan year.''
Subsec. (k)(3)(A). Pub. L. 99-514, Sec. 1116(b)(4), as amended by
Pub. L. 100-647, Sec. 1011(k)(3)(B), substituted ``any highly
compensated employee'' for ``an employee'' in concluding provisions.
Pub. L. 99-514, Sec. 1852(g)(2), substituted ``If an employee is a
participant under 2 or more cash or deferred arrangements of the
employer, for purposes of determining the deferral percentage with
respect to such employee, all such cash or deferred arrangements shall
be treated as 1 cash or deferred arrangement'' for ``The deferral
percentage taken into account under this subparagraph for any employee
who is a participant under 2 or more cash or deferred arrangements of
the employer shall be the sum of the deferral percentages for such
employee under each of such arrangements''.
Subsec. (k)(3)(A)(i). Pub. L. 99-514, Sec. 1112(d)(1), struck out
``subparagraph (A) or (B) of'' before ``section 410(b)(1)''.
Subsec. (k)(3)(A)(ii). Pub. L. 99-514, Sec. 1116(c)(2), substituted
``paragraph (5)'' for ``paragraph (4)''.
Pub. L. 99-514, Sec. 1116(a), substituted ``1.25'' for ``1.5'' in
subcl. (I), and ``2 percentage points'' for ``3 percentage points'' and
``2'' for ``2.5'' in subcl. (II).
Subsec. (k)(3)(C). Pub. L. 99-514, Sec. 1852(g)(1), added subpar.
(C) relating to treatment of cash or deferred arrangements.
Pub. L. 99-514, Sec. 1116(e), added subpar. (C) relating to employer
contributions.
Subsec. (k)(4). Pub. L. 99-514, Sec. 1116(b)(3), added par. (4).
Former par. (4) redesignated (5).
Subsec. (k)(5). Pub. L. 99-514, Sec. 1116(b)(3), (d)(1),
redesignated former par. (4) as (5) and substituted ``the term `highly
compensated employee' has the meaning given such term by section
414(q)'' for ``the term `highly compensated employee' means any employee
who is more highly compensated than two-thirds of all eligible
employees, taking into account only compensation which is considered in
applying paragraph (3)''. Former par. (5) redesignated (6).
Subsec. (k)(6). Pub. L. 99-514, Sec. 1116(b)(3), redesignated former
par. (5) as (6). Former par. (6) redesignated (7).
Pub. L. 99-514, Sec. 1879(g)(2), added par. (6).
Subsec. (k)(7). Pub. L. 99-514, Sec. 1116(b)(3), redesignated former
par. (6) as (7).
Subsec. (k)(8). Pub. L. 99-514, Sec. 1116(c)(1), added par. (8).
Subsec. (k)(9). Pub. L. 99-514, Sec. 1116(d)(2), added par. (9).
Subsec. (l). Pub. L. 99-514, Sec. 1111(a), amended subsec. (l)
generally, substituting provisions relating to permitted disparity in
plan contributions or benefits for provisions relating to
nondiscriminatory coordination of defined contribution plans with OASDI.
Subsec. (m). Pub. L. 99-514, Sec. 1117(a), added subsec. (m) and
redesignated former subsec. (m) as (n).
Pub. L. 99-514, Sec. 1898(c)(3), added subsec. (m).
Subsec. (n). Pub. L. 99-514, Sec. 1117(a), redesignated former
subsec. (m) as (n). Former subsec. (n) redesignated (o).
Pub. L. 99-514, Sec. 1898(c)(3), redesignated subsec. (o) as (n).
Subsec. (o). Pub. L. 99-514, Sec. 1117(a), redesignated former
subsec. (n) as (o).
Pub. L. 99-514, Sec. 1898(c)(3), redesignated subsec. (o) as (n).
1984--Subsec. (a)(9). Pub. L. 98-369, Sec. 521(a)(1), amended par.
(9) generally, redesignating existing provisions as subpar. (A) and in
subpar. (A) as so redesignated struck out ``In the case of a plan which
provides contributions or benefits for employees some or all of whom are
employees within the meaning of subsection (c)(1)'' before ``a trust
forming part of such plan'', substituted ``the plan provides that the
entire interest of each employee--'' for ``, under the plan, the entire
interest of each employee--'', redesignated subpars. (A) and (B) as cls.
(i) and (ii) respectively, in cl. (i) as so redesignated substituted
provisions stating that a qualified plan provides that the entire
interest will be distributed to the employee not later than the
beginning date for former provisions which provided alternative dates
for providing interest, in cl. (ii) as so redesignated substituted
alternate distribution dates to be set in accordance with regulations
for former provisions stating that a qualified plan shall be distributed
not later than the taxable year in which the taxpayer attains age 70\1/
2\, and struck out the par. following cl. (ii) which provided ``A trust
shall not be disqualified under this paragraph by reason of
distributions under a designation, prior to the date of the enactment of
this paragraph, by any employee under the plan of which such trust is a
part, of a method of distribution which does not meet the terms of the
preceding sentence.'', and added subpars. (B) to (F).
Pub. L. 98-369, Sec. 521(a)(2), repealed amendment made by Pub. L.
97-248, Sec. 242(a). See 1982 Amendment note below.
Subsec. (a)(10)(B)(iii). Pub. L. 98-369, Sec. 524(d)(1), added cl.
(iii).
Subsec. (a)(11). Pub. L. 98-397, Sec. 203(a), amended par. (11)
generally, inserting provisions relating to preretirement survivor
annuities, and substituting present four subpars. for former eight
subpars.
Subsec. (a)(13). Pub. L. 98-397, Sec. 204(a), designated existing
provisions as subpar. (A), corrected the margin of subpar. (A), and
added subpar. (B).
Subsec. (a)(21). Pub. L. 98-369, Sec. 474(r)(13), substituted
provisions relating to the amount of the credit which would be allowable
under section 41 if the employer made the transfer described in section
41(c)(1)(B) for former provisions which had related to the amount of
credit which would be allowable under section 46(a) if the employer made
the transfer described in section 48(n)(1) or under section 44G if the
employer made the transfer described in section 44G(c)(1)(B).
Subsec. (a)(22). Pub. L. 98-369, Sec. 491(e)(4), substituted
``section 409'' for ``section 409A''.
Subsec. (a)(23). Pub. L. 98-369, Sec. 491(e)(5), substituted
``section 409(h)'' for ``section 409A(h)'' in two places.
Subsec. (a)(24). Pub. L. 98-369, Sec. 211(b)(5), substituted
``section 818(a)(6)'' for ``section 805(d)(6)''.
Subsec. (a)(25). Pub. L. 98-397, Sec. 301(b), added par. (25).
Subsec. (e). Pub. L. 98-369, Sec. 713(d)(3), repealed subsec. (e)
which related to contributions for premiums on annuity, etc., contracts.
Subsec. (f)(2). Pub. L. 98-369, Sec. 713(c)(2)(A), substituted ``(as
defined in section 408(n))'' for ``(as defined in subsection (d)(1))''.
Subsec. (h)(6). Pub. L. 98-369, Sec. 528(b), added par. (6).
Subsec. (k)(1), (2). Pub. L. 98-369, Sec. 527(b)(1), inserted ``(or
a pre-ERISA money purchase plan)''.
Subsec. (k)(2)(B). Pub. L. 98-369, Sec. 527(b)(3), substituted ``(or
in the case of a profit sharing or stock bonus plan, hardship or the
attainment of age 59\1/2\)'' for ``, hardship or the attainment of age
59\1/2\,''.
Subsec. (k)(3)(A). Pub. L. 98-369, Sec. 527(a), struck out
``qualified'' before ``cash or deferred arrangement'', substituted
``shall not be treated as a qualified cash or deferred arrangement
unless'' for ``shall be considered to satisfy the requirements of
subsection (a)(4), with respect to the amount of contributions, and of
subparagraph (B) of section 410(b)(1) for a plan year if'', designated
provisions beginning ``those employees'' and ending ``section
401(b)(1)'' as cl. (i) and text following as cl. (ii), redesignated
former cls. (i) and (ii) as subcls. (I) and (II) and inserted text
following subcl. (II).
Subsec. (k)(5). Pub. L. 98-369, Sec. 527(b)(2), added par. (5).
1983--Subsec. (a)(21). Pub. L. 97-448, Sec. 103(g)(2)(A), designated
part of existing provisions as subpar. (A) and added subpar. (B).
Subsec. (c)(2)(A)(vi). Pub. L. 98-21 added cl. (vi).
Subsec. (d)(2). Pub. L. 97-448, Sec. 306(a)(12), substituted
``paragraph (1)(B)'' for ``paragraph (9)(B)''.
Subsec. (d)(5). Pub. L. 97-448, Sec. 103(c)(10)(A), substituted
``Subparagraphs (A) and (B) shall not apply to contributions described
in subsection (e), and shall not apply to any deductible employee
contribution (as defined in section 72(o)(5))'' for ``Subparagraphs (A)
and (B) do not apply to contributions described in subsection (e)'' in
second sentence.
Subsec. (j)(3). Pub. L. 97-448, Sec. 103(d)(2), substituted ``under
subparagraph (A) of paragraph (2) shall be treated as beginning a new
period of plan participation with respect only to such change'' for
``under subparagraph (A) of subsection (j)(2) shall be treated as
beginning a new period of plan participation'' in last sentence.
1982--Subsec. (a)(9). Pub. L. 97-248, Sec. 242(a), which was
repealed by Pub. L. 98-369, Sec. 521(a)(2), had amended par. (9)
generally, redesignating existing provisions as subpar. (A), in subpar.
(A), as so redesignated, struck out preliminary provision which limited
the application of this paragraph to plans providing contributions or
benefits for employees some or all of whom were employees within the
meaning of subsec. (c)(1), redesignated former subpars. (A) and (B) as
cls. (i) and (ii) of subpar. (A), in cl. (i), as so redesignated,
substituted reference to a key employee who is a participant in a top-
heavy plan for former reference to owner-employees (within the meaning
of subsec. (c)(3)), redesignated former cls. (i) and (ii) of subpar. (B)
as subcls. (I) and (II) of cl. (ii), struck out former provision that a
trust would not be disqualified under this paragraph by reason of
distributions under a designation, prior to the date of the enactment of
this paragraph, by any employee under the plan of which such trust was a
part, of a method of distribution which did not meet the terms of this
paragraph, and adding subpar. (B).
Subsec. (a)(10). Pub. L. 97-248, Sec. 237(e)(1), amended par. (10)
generally, redesignating subpar. (B) as (A) and striking out former
subpar. (A) relating to qualified trust as a trust forming part of such
plan, for provisions relating to discriminatory plans with respect to
nonapplicability of paragraph (3), the first and second sentences of
paragraph (5) and section 410 of this title.
Subsec. (a)(10)(B). Pub. L. 97-248, Sec. 240(b), added subpar. (B).
Subsec. (a)(17), (18). Pub. L. 97-248, Sec. 237(b), struck out pars.
(17) and (18) which related, respectively, to a plan which provides
contributions or benefits for employees some or all of whom are
employees within the meaning of subsection (c)(1), or are shareholder-
employees within the meaning of section 1379(d), and a trust which is
part of a plan providing a defined benefit for employees some or all of
whom are employees within the meaning of subsection (c)(1), or are
shareholder-employees within the meaning of section 1379(d).
Subsec. (a)(24). Pub. L. 97-248 added par. (24).
Subsec. (c)(1). Pub. L. 97-248, Sec. 238(d)(1), amended par. (1)
generally, substituting in heading ``Self-employed individual treated as
employee'' for ``Employee'', adding subparagraph headings, and
substituting provisions defining ``employee'' and ``self-employed
individual'', for provisions defining ``employee''.
Subsec. (c)(2)(A). Pub. L. 97-248, Sec. 238(d)(2), added cl. (v).
Subsec. (d). Pub. L. 97-248, Sec. 237(a), redesignated pars. (9) to
(11) as (1) to (3), respectively. Former pars. (1) to (7), which related
to trusts created or organized before or after October 10, 1962,
contributions under the plan, benefits under the plan for employees,
contributions or benefits under the plan, limitations pursuant to the
plan, applicability of requirements of subsec. (a)(4) of this section,
and distributions under the plan, respectively, were struck out.
Subsec. (j). Pub. L. 97-248, Sec. 238(b), struck out subsec. (j)
which related to general requirements, regulation guidelines, applicable
percentage, certain contributions and benefits not taken into account,
definitions, and special rules with respect to defined benefit plans
providing benefits for self-employed individuals and shareholder-
employees.
Subsecs. (l), (o). Pub. L. 97-248, Sec. 249(a), added subsec. (l)
and redesignated former subsec. (l) as (o).
1981--Subsec. (a)(17). Pub. L. 97-34, Sec. 312(b)(1), designated
provision relating to the annual compensation of each employee as
subpar. (A), and in subpar. (A) as so designated, substituted
``$200,000'' for ``$100,000'', and added subpar. (B).
Subsec. (a)(22). Pub. L. 97-34, Sec. 338(a), inserted ``(other than
a profit-sharing plan)'' and substituted ``if'' for ``If'' and ``such
plan'' for ``said plan''.
Subsec. (a)(23). Pub. L. 97-34, Sec. 335, substituted ``409A(h),
except that in applying section 409A(h) for purposes of this paragraph,
the term `employer securities' shall include any securities of the
employer held by the plan'' for ``409A(h)(2)''.
Subsec. (d)(4). Pub. L. 97-34, Sec. 312(e)(2), inserted provision
making subpar. (B) inapplicable to any distribution to which section
72(m)(9) applies.
Subsec. (d)(5). Pub. L. 97-34, Sec. 314(a)(1), inserted provision
making subpar. (C) inapplicable to a distribution on account of the
termination of the plan.
Subsec. (e). Pub. L. 97-34, Sec. 312(c)(2), substituted ``for such
taxable year exceeds $15,000'' for ``for all such years exceeds
$7,500''.
Subsec. (j). Pub. L. 97-34, Sec. 312(c)(3), (4), substituted in par.
(2)(A) ``$100,000'' for ``$50,000'' and in par. (3) inserted provision
that for purposes of this paragraph, a change in the annual compensation
taken into account under subpar. (A) of subsec. (j)(2) be treated as
beginning a new period of plan participation.
1980--Subsec. (a)(2). Pub. L. 96-364, Secs. 208(e), 410(b), inserted
provisions relating to applicability to multiemployer plans and return
of contributions made by a mistake of law or fact, or return of
withdrawal liability payment.
Subsec. (a)(4). Pub. L. 96-605, Sec. 225(b)(1), substituted
``section 410(b)(3)(A)'' for ``section 410(b)(2)(A)''.
Subsec. (a)(12). Pub. L. 96-364, Sec. 208(a), substituted provisions
relating to applicability to multiemployer plans subject to title IV of
the Employee Retirement Income Security Act of 1974 of provisions of
preceding sentence, for provisions relating to applicability of
paragraph to multiemployer plans to extent determined by Corporation.
Subsec. (a)(20). Pub. L. 96-222, Sec. 101(a)(14)(E)(iii),
substituted ``makes a qualifying rollover distribution (determined as if
section 402(a)(5)(D)(i) did not contain subclause (II) thereof)
described in section 402(a)(5)(A)(i) or 403(a)(4)(A)(i)'' for ``makes a
payment or distribution described in section 402(a)(5)(i) or
403(a)(4)(i)''.
Subsec. (a)(21). Pub. L. 96-222, Sec. 101(a)(7)(L)(i)(V),
substituted ``a tax credit employee stock ownership plan'' for ``an
ESOP''.
Subsec. (a)(22)(B). Pub. L. 96-222, Sec. 101(a)(9), substituted
``are securities'' for ``as securities''.
Subsec. (a)(23). Pub. L. 96-605, Sec. 221(a), added par. (23).
Subsec. (d)(3)(B). Pub. L. 96-605, Sec. 225(b)(2), substituted in
cl. (i) ``section 410(b)(3)(A)'' for ``section 410(b)(2)(A)'' and in cl.
(ii) ``section 410(b)(3)(C)'' for ``section 410(b)(2)(C)''.
1978--Subsec. (a)(5). Pub. L. 95-600, Sec. 152(e), inserted
provision that for purposes of determining whether one or more plans of
the employer satisfy the requirements of section 410(b)(4), an employer
may take into account all simplified employee pensions to which only the
employer contributes.
Subsec. (a)(21). Pub. L. 95-600, Sec. 141(f)(3), substituted
``ESOP'' for ``employee stock option plan which satisfies the
requirements of section 301(d) of the Tax Reduction Act of 1975'' and
``section 48(n)(1)'' for ``subsection (d)(6) or (e)(3) of section 301 of
the Tax Reduction Act of 1975''.
Subsec. (a)(22). Pub. L. 95-600, Sec. 143(a), added par. (22).
Subsecs. (k), (l). Pub. L. 95-600, Sec. 135(a), added subsec. (k)
and redesignated former subsec. (k) as (l).
1976--Subsec. (a). Pub. L. 94-455, Secs. 803(b)(2), 1901(a)(56),
1906(b)(13)(A), struck out ``or his delegate'' after ``Secretary'' in
pars. (5), (11), and (14), substituted references to Sept. 2, 1974, for
references to the enactment of the Employee Retirement Income Security
Act of 1974 in pars. (12), (13), (15), and (19), added par. (21), and
inserted reference to par. (20) in provisions following par. (21), such
addition of reference to par. (20) duplicating amendment by Pub. L. 94-
267, Sec. 1(c)(2).
Pub. L. 94-267, Sec. 1(c)(2), substituted ``(19), and (20)'' for
``and (19)''.
Subsec. (a)(20). Pub. L. 94-267, Sec. 1(c)(1), added par. (20).
Subsecs. (b), (c), (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out ``or his delegate'' after ``Secretary''.
Subsec. (f). Pub. L. 94-455, Sec. 1505(b), inserted reference to
contracts (other than life, health, or accident, property, casualty, or
liability insurance contracts) issued by an insurance company qualified
to do a business in a State and struck out ``or his delegate'' after
``Secretary''.
Subsecs. (h), (i), (j). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out ``or his delegate'' after ``Secretary''.
1974--Subsec. (a). Pub. L. 93-406, Sec. 1021(a)(2), inserted
provision that paragraphs (11), (12), (13), (14), (15), and (19) shall
apply only in the case of a plan to which section 411 (relating to
minimum vesting standards) applies without regard to subsection (e)(2)
of this section.
Subsec. (a)(3). Pub. L. 93-406, Sec. 1016(a)(2)(A), substituted
provisions referring simply to a plan of which the trust is a part and
the satisfaction by that plan of the requirements of section 410
(relating to minimum participation standards) for provisions referring
to a trust, trusts, or trust or trusts and annuity plan or plans
designated by the employer as constituting parts of a plan intended to
qualify under subsec. (a) and spelling out the requisite coverage of the
plan.
Subsec. (a)(4). Pub. L. 93-406, Sec. 1022(a), struck out provisions
referring to persons whose principal duties consist in supervising the
work of other employees and inserted provisions directing the exclusion
from consideration of employees described in section 410(b)(2) (A) and
(C).
Subsec. (a)(5). Pub. L. 93-406, Secs. 1012(b), 1016(a)(2)(B),
inserted provisions covering the determination of whether two or more
plans of an employer satisfy the requirements of par. (4) when
considered as a single plan and substituted ``shall not be considered
discriminatory within the meaning of paragraph (4) of section 410(b)
(without regard to paragraph (1)(A) thereof)'' for ``shall not be
considered discriminatory within the meaning of paragraph (3)(B) or
(4)''.
Subsec. (a)(7). Pub. L. 93-406, Sec. 1016(a)(2)(C), substituted
provisions referring simply to the satisfaction by the plan of which a
trust is a part of the requirements of section 411 (relating to minimum
vesting standards) for provisions spelling out in detail the conditions
which the plan had to satisfy in order that the trust forming part of
that plan constitute a qualified trust under this section.
Subsec. (a)(10)(A). Pub. L. 93-406, Secs. 1022(b)(1), 2001(e)(4),
inserted reference to section 410 in provisions preceding cl. (i) and
substituted ``subsection (e)'' for ``subsection (e)(3)(A)'' in cl. (ii).
Subsec. (a)(11). Pub. L. 93-406, Sec. 1021(a)(1), added par. (11).
Subsec. (a)(12). Pub. L. 93-406, Sec. 1021(b), added par. (12).
Subsec. (a)(13). Pub. L. 93-406, Sec. 1021(c), added par. (13).
Subsec. (a)(14). Pub. L. 93-406, Sec. 1021(d), added par. (14).
Subsec. (a)(15). Pub. L. 93-406, Sec. 1021(e), added par. (15).
Subsec. (a)(16). Pub. L. 93-406, Sec. 2004(a)(1), added par. (16).
Subsec. (a)(17). Pub. L. 93-406, Sec. 2001(c), added par. (17).
Subsec. (a)(18). Pub. L. 93-406, Sec. 2001(d)(1), added par. (18).
Subsec. (a)(19). Pub. L. 93-406, Sec. 1021(f), added par. (19).
Subsec. (b). Pub. L. 93-406, Sec. 1023, substituted reference to the
requirements of subsection (a) for the period beginning with the date on
which a stock bonus, pension, profit-sharing, or annuity plan was put
into effect, or for the period beginning with the earlier of the date on
which there was adopted or put into effect any amendment which caused
the plan to fail to satisfy such requirements, and ending with the time
prescribed by law for filing the return of the employer for his taxable
year in which such plan or amendment was adopted (including extensions
thereof) or such later time as the Secretary or his delegate may
designate for reference to the requirements of paragraphs (3), (4), (5),
and (6) of subsection (a) for the period beginning with the date on
which a stock bonus, pension, profit-sharing, or annuity plan was put
into effect and ending with the 15th day of the third month following
the close of the taxable year of the employer in which the plan was put
in effect.
Subsec. (d)(1). Pub. L. 93-406, Sec. 1022(c), (f), substituted
``October 10, 1962'' for ``the date of the enactment of this
subsection'' and ``assets thereof are held by a bank or other person who
demonstrates to the satisfaction of the Secretary or his delegate that
the manner in which he will administer the trust will be consistent with
the requirements of this section. A trust shall not be disqualified
under this paragraph merely because a person (including the employer)
other than the trustee or custodian so administering the trust'' for
``trustee is a bank, but a person (including the employer) other than a
bank'' and inserted reference to an insured credit union (within the
meaning of section 101(6) of the Federal Credit Union Act) in definition
of ``bank''.
Subsec. (d)(3). Pub. L. 93-406, Sec. 1022(b)(2), inserted reference
to the section 410(a)(3) definition of ``years of service'' and
substituted reference to employees included in a unit of employees
covered by a collective-bargaining agreement described in section
410(b)(2)(A) and employees who are nonresident aliens described in
section 410(b)(2)(C) for reference to employees whose customary
employment was for not more than 20 hours in any one week or was for not
more than 5 months in any calendar year.
Subsec. (d)(4)(B). Pub. L. 93-406, Sec. 2001(h)(1), inserted ``in
excess of contributions made by an owner-employee as an employee'' after
``benefits''.
Subsec. (d)(5). Pub. L. 93-406, Sec. 2001(e)(1), substituted
``Subparagraphs (A) and (B) do not apply to contributions described in
subsection (e)'' for ``Subparagraphs (A) and (B) shall not apply to any
contribution which is not considered to be an excess contribution (as
defined in subsection (e)(1)) by reason of the application of subsection
(e)(3)''.
Subsec. (d)(8). Pub. L. 93-406, Sec. 2001(e)(2), struck out par. (8)
covering excess contributions.
Subsec. (e). Pub. L. 93-406, Sec. 2001(e)(3), struck out pars. (1)
and (2) which defined and described the effect of excess contributions,
redesignated par. (3) as the entire subsec. (e) and in provisions as
thus carried forward as the entire subsec. (e) substituted ``$7,500''
for ``$2,500'' and inserted references to section 4972(b).
Subsec. (f). Pub. L. 93-406, Sec. 1022(d), expanded provisions to
cover annuity contracts.
Subsecs. (j), (k). Pub. L. 93-406, Sec. 2001(d)(2), added subsec.
(j) and redesignated former subsec. (j) as (k).
1971--Subsec. (i). Pub. L. 91-691 struck out ``multi-employer''
before ``pension plans'' in heading, and substituted ``one or more
employers'' for ``two or more employers who are not related (determined
under regulations prescribed by the Secretary or his delegate)'' in par.
(1).
1966--Subsec. (a)(10)(A)(ii). Pub. L. 89-809, Sec. 204(b)(1)(A),
struck out ``(determined without regard to section 404(a)(10))'' after
``deducted under section 404''.
Subsec. (c)(2)(A). Pub. L. 89-809, Sec. 204(c), struck out ``to the
extent that such net earnings constitute earned income (as defined in
section 911(b) but determined with the application of subparagraph
(B))'' after ``The term `earned income' means the net earnings from
self-employment (as defined in section 1402(a))'', added cl. (i) and
redesignated former cls. (i) to (ii) as (ii) to (iv) respectively, and
struck out references to section 911(b) and subparagraph (B), as in
effect for a taxable year beginning on January 1, 1963, in text
following cl. (iv).
Subsec. (c)(2)(B). Pub. L. 89-809, Sec. 204(c), struck out subpar.
(B) relating to earned income when both personal services and capital
are material income-producing factors. See subsec. (c)(2)(A)(i).
Subsec. (c)(2)(C). Pub. L. 89-809, Sec. 205(a), added subpar. (C).
Subsecs. (d)(5)(A), (B), (d)(6)(A), (e)(1)(A), (B)(i), (3). Pub. L.
89-809, Sec. 204(b)(1)(B) to (E), struck out ``(determined without
regard to section 404(a)(10))'' wherever appearing.
1965--Subsec. (d)(4)(B). Pub. L. 89-97 substituted ``section
72(m)(7)'' for ``section 213(g)(3)''.
1964--Subsecs. (i), (j). Pub. L. 88-272 added subsec. (i) and
redesignated former subsec. (i) as (j).
1962--Subsec. (a)(5). Pub. L. 87-792, Sec. 2(1), inserted provisions
defining total compensation for purposes of par. (5) and par. (10) of
this subsection.
Subsec. (a)(7) to (10). Pub. L. 87-792, Sec. 2(2), added pars. (7)
to (10).
Subsecs. (c) to (g). Pub. L. 87-792, Sec. 2(3), added subsecs. (c)
to (g). Former subsec. (c) redesignated (h).
Subsec. (h). Pub. L. 87-863 added subsec. (h). Former subsec. (h)
redesignated (i).
Pub. L. 87-792, Sec. 2(3), redesignated former subsec. (c) as (h).
Subsec. (i). Pub. L. 87-863 redesignated former subsec. (h) as (i).
Effective and Termination Dates of 2001 Amendment
Amendment by section 611(c), (f)(3), (g)(1) of Pub. L. 107-16
applicable to years beginning after Dec. 31, 2001, see section 611(i)(1)
of Pub. L. 107-16, set out as a note under section 415 of this title.
Amendment by section 641(e)(3) of Pub. L. 107-16 applicable to
distributions after Dec. 31, 2001, see section 641(f)(1) of Pub. L. 107-
16, set out as a note under section 402 of this title.
Pub. L. 107-16, title VI, Sec. 643(d), June 7, 2001, 115 Stat. 123,
provided that: ``The amendments made by this section [amending this
section and sections 402 and 408 of this title] shall apply to
distributions made after December 31, 2001.''
Pub. L. 107-16, title VI, Sec. 646(b), June 7, 2001, 115 Stat. 126,
provided that: ``The amendments made by this section [amending this
section and sections 403 and 457 of this title] shall apply to
distributions after December 31, 2001.''
Pub. L. 107-16, title VI, Sec. 657(d), June 7, 2001, 115 Stat. 137,
provided that: ``The amendments made by this section [amending this
section, section 402 of this title, and section 1104 of Title 29, Labor]
shall apply to distributions made after final regulations implementing
subsection (c)(2)(A) [set out as a note below] are prescribed.''
Pub. L. 107-16, title VI, Sec. 666(b), June 7, 2001, 115 Stat. 144,
provided that: ``The amendment made by this section [amending this
section] shall apply to years beginning after December 31, 2001.''
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal Revenue
Code of 1986 to be applied and administered to such years as if such
amendment had never been enacted, see section 901 of Pub. L. 107-16, set
out as a note under section 1 of this title.
Effective Date of 2000 Amendment
Amendment by Pub. L. 106-554 effective as if included in the
provisions of the Small Business Job Protection Act of 1996, Pub. L.
104-188, to which such amendment relates, see section 1(a)(7) [title
III, Sec. 316(e)] of Pub. L. 106-554, set out as a note under section 51
of this title.
Effective Date of 1997 Amendment
Section 1502(c) of Pub. L. 105-34 provided that: ``The amendments
made by this section [amending this section and section 1056 of Title
29, Labor] shall apply to judgments, orders, and decrees issued, and
settlement agreements entered into, on or after the date of the
enactment of this Act [Aug. 5, 1997].''
Section 1505(d) of Pub. L. 105-34, as amended by Pub. L. 105-206,
title VI, Sec. 6015(b), July 22, 1998, 112 Stat. 820, provided that:
``(1) In general.--The amendments made by this section [amending
this section and sections 403 and 410 of this title] apply to taxable
years beginning on or after the date of enactment of this Act [Aug. 5,
1997].
``(2) Treatment for years beginning before date of enactment.--A
governmental plan (within the meaning of section 414(d) of the Internal
Revenue Code of 1986) maintained by a State or local government or
political subdivision thereof (or agency or instrumentality thereof)
shall be treated as satisfying the requirements of sections 401(a)(3),
401(a)(4), 401(a)(26), 401(k), 401(m), 403(b)(1)(D) and (b)(12)(A)(i),
and 410 of such Code for all taxable years beginning before the date of
enactment of this Act.''
Section 1525(b) of Pub. L. 105-34 provided that: ``The amendments
made by subsection (a) [amending this section] shall apply to years
beginning after December 31, 1997.''
Section 1530(d) of Pub. L. 105-34 provided that: ``The amendments
made by this section [amending this section and sections 404, 415, 664,
674, 2055, 2056, 4947, 4975, 4978, and 4979A of this title] shall apply
to transfers made by trusts to, or for the use of, an employee stock
ownership plan after the date of the enactment of this Act [Aug. 5,
1997].''
Amendment by section 1601(d)(2)(A), (B), (3) of Pub. L. 105-34
effective as if included in the provisions of the Small Business Job
Protection Act of 1996, Pub. L. 104-188, to which it relates, and
amendment by section 1601(d)(2)(D) of Pub. L. 105-34 applicable to
calendar years beginning after Aug. 5, 1997, see section 1601(j) of Pub.
L. 105-34, set out as a note under section 23 of this title.
Effective Date of 1996 Amendment
Amendment by section 1401(b)(5), (6) of Pub. L. 104-188 applicable
to taxable years beginning after Dec. 31, 1999, with retention of
certain transition rules, see section 1401(c) of Pub. L. 104-188, set
out as a note under section 402 of this title.
Section 1404(b) of Pub. L. 104-188 provided that: ``The amendment
made by subsection (a) [amending this section] shall apply to years
beginning after December 31, 1996.''
Section 1422(c) of Pub. L. 104-188 provided that: ``The amendments
made by this section [amending this section] shall apply to plan years
beginning after December 31, 1996.''
Section 1426(b) of Pub. L. 104-188 provided that: ``The amendment
made by this section [amending this section] shall apply to plan years
beginning after December 31, 1996, but shall not apply to any cash or
deferred arrangement to which clause (i) of section 1116(f)(2)(B) of the
Tax Reform Act of 1986 applies [Pub. L. 99-514, set out below].''
Amendment by section 1431(b)(2) of Pub. L. 104-188 applicable to
years beginning after Dec. 31, 1996, and amendment by section
1431(c)(1)(B) of Pub. L. 104-188 applicable to years beginning after
Dec. 31, 1996, except that in determining whether an employee is a
highly compensated employee for years beginning in 1997, amendment by
section 1431(c)(1)(B) to be treated as having been in effect for years
beginning in 1996, see section 1431(d) of Pub. L. 104-188, set out as a
note under section 414 of this title.
Section 1432(c) of Pub. L. 104-188 provided that: ``The amendments
made by this section [amending this section] shall apply to years
beginning after December 31, 1996.''
Section 1433(f) of Pub. L. 104-188 provided that:
``(1) In general.--The amendments made by this section [amending
this section] shall apply to years beginning after December 31, 1998.
``(2) Exceptions.--The amendments made by subsections (c), (d), and
(e) [amending this section] shall apply to years beginning after
December 31, 1996.''
Section 1441(b) of Pub. L. 104-188 provided that: ``The amendments
made by this section [amending this section] shall apply to years
beginning after December 31, 1996.''
Section 1443(c) of Pub. L. 104-188 provided that:
``(1) Distributions.--The amendments made by subsection (a)
[amending this section] shall apply to distributions after the date of
the enactment of this Act [Aug. 20, 1996].
``(2) Public utility districts.--The amendments made by subsection
(b) [amending this section] shall apply to plan years beginning after
December 31, 1996.''
Section 1445(b) of Pub. L. 104-188 provided that: ``The amendment
made by this section [amending this section] shall apply to years
beginning after December 31, 1996.''
Section 1459(c) of Pub. L. 104-188 provided that: ``The amendments
made by this section [amending this section] shall apply to plan years
beginning after December 31, 1998.''
Effective Date of 1994 Amendment
Section 732(e) of Pub. L. 103-465 provided that:
``(1) In general.--Except as provided in paragraph (2), the
amendments made by this section [amending this section and sections 402,
408, and 415 of this title] shall apply to years beginning after
December 31, 1994.
``(2) Rounding not to result in decreases.--The amendments made by
this section providing for the rounding of indexed amounts shall not
apply to any year to the extent the rounding would require the indexed
amount to be reduced below the amount in effect for years beginning in
1994.''
Section 751(b) of Pub. L. 103-465 provided that:
``(1) In general.--Except as provided in paragraph (2), the
amendments made by this section [amending this section and sections 404,
412, and 4971 of this title] shall apply to plan years beginning after
December 31, 1994.
``(2) Reference.--The amendment made by subsection (a)(11) [amending
section 404 of this title] shall take effect on the date of the
enactment of this Act [Dec. 8, 1994].''
Section 766(d) of Pub. L. 103-465 provided that: ``The amendments
made by this section [amending this section and sections 1054 and 1322
of Title 29, Labor] shall apply to plan amendments adopted on or after
the date of enactment of this Act [Dec. 8, 1994].''
Amendment by section 776(d) of Pub. L. 103-465 effective with
respect to distributions that occur in plan years commencing on or after
Jan. 1, 1996, see section 776(e) of Pub. L. 103-465, set out as a note
under section 1056 of Title 29, Labor.
Section 781 of title VII of Pub. L. 103-465 provided that: ``Except
as otherwise provided in this subtitle [subtitle F (Secs. 750-781) of
title VII of Pub. L. 103-465, enacting sections 1310, 1311, and 1350 of
Title 29, Labor, amending this section, sections 404, 411, 412, 415,
417, 4971, and 4972 of this title, and sections 1053 to 1056, 1082,
1132, 1301, 1303, 1305, 1306, 1322, 1341, 1342, and 1343 of Title 29,
and enacting provisions set out as notes under this section, sections 1,
411, 412, and 4972 of this title, and sections 1056, 1082, 1303, 1306,
1310, 1311, 1322, 1341, and 1342 of Title 29], the amendments made by
this subtitle shall be effective on the date of enactment of this Act
[Dec. 8, 1994].''
Effective Date of 1993 Amendment
Section 13212(d) of Pub. L. 103-66, provided that:
``(1) In general.--Except as provided in this subsection, the
amendments made by this section [amending this section and sections 404,
408, and 505 of this title] shall apply to benefits accruing in plan
years beginning after December 31, 1993.
``(2) Collectively bargained plans.--In the case of a plan
maintained pursuant to 1 or more collective bargaining agreements
between employee representatives and 1 or more employers ratified before
the date of the enactment of this Act [Aug. 10, 1993], the amendments
made by this section shall not apply to contributions or benefits
pursuant to such agreements for plan years beginning before the earlier
of--
``(A) the latest of--
``(i) January 1, 1994,
``(ii) the date on which the last of such collective
bargaining agreements terminates (without regard to any
extension, amendment, or modification of such agreements on or
after such date of enactment), or
``(iii) in the case of a plan maintained pursuant to
collective bargaining under the Railway Labor Act [45 U.S.C. 151
et seq.], the date of execution of an extension or replacement
of the last of such collective bargaining agreements in effect
on such date of enactment, or
``(B) January 1, 1997.
``(3) Transition rule for state and local plans.--
``(A) In general.--In the case of an eligible participant in a
governmental plan (within the meaning of section 414(d) of the
Internal Revenue Code of 1986), the dollar limitation under section
401(a)(17) of such Code shall not apply to the extent the amount of
compensation which is allowed to be taken into account under the
plan would be reduced below the amount which was allowed to be taken
into account under the plan as in effect on July 1, 1993.
``(B) Eligible participant.--For purposes of subparagraph (A),
an eligible participant is an individual who first became a
participant in the plan during a plan year beginning before the 1st
plan year beginning after the earlier of--
``(i) the plan year in which the plan is amended to reflect
the amendments made by this section, or
``(ii) December 31, 1995.
``(C) Plan must be amended to incorporate limits.--This
paragraph shall not apply to any eligible participant of a plan
unless the plan is amended so that the plan incorporates by
reference the dollar limitation under section 401(a)(17) of the
Internal Revenue Code of 1986, effective with respect to noneligible
participants for plan years beginning after December 31, 1995 (or
earlier if the plan amendment so provides).''
Effective Date of 1992 Amendment
Amendment by section 521(b)(5)-(8) of Pub. L. 102-318 applicable to
distributions after Dec. 31, 1992, see section 521(e) of Pub. L. 102-
318, set out as a note under section 402 of this title.
Section 522(d) of Pub. L. 102-318 provided that:
``(1) In general.--Except as provided in paragraph (2), the
amendments made by this section [amending this section and sections 402
to 404, 3402, 3405, 6047, and 6652 of this title] shall apply to
distributions after December 31, 1992.
``(2) Transition rule for certain annuity contracts.--If, as of July
1, 1992, a State law prohibits a direct trustee-to-trustee transfer from
an annuity contract described in section 403(b) of the Internal Revenue
Code of 1986 which was purchased for an employee by an employer which is
a State or a political subdivision thereof (or an agency or
instrumentality of any 1 or more of either), the amendments made by this
section shall not apply to distributions before the earlier of--
``(A) 90 days after the first day after July 1, 1992, on which
such transfer is allowed under State law, or
``(B) January 1, 1994.''
Effective Date of 1990 Amendment
Amendment by Pub. L. 101-508 applicable to transfers in taxable
years beginning after Dec. 31, 1990, see section 12011(c)(1) of Pub. L.
101-508, set out as an Effective Date note under section 420 of this
title.
Effective Date of 1989 Amendments
Section 7311(b) of Pub. L. 101-239 provided that:
``(1) In general.--The amendment made by this section [amending this
section] shall apply to contributions after October 3, 1989.
``(2) Transition.--The amendment made by this section shall not
apply to contributions made before January 1, 1990, if--
``(A) the employer requested before October 3, 1989, a private
letter ruling or determination letter with respect to the
qualification of the plan maintaining the account under section
401(h) of the Internal Revenue Code of 1986,
``(B) the request sets forth a method under which the amount of
contributions to the account are to be determined on the basis of
cost,
``(C) such method is permissible under section 401(h) of such
Code under the provisions of General Counsel Memorandum 39785, and
``(D) the Internal Revenue Service issued before October 4,
1989, a private letter ruling, determination letter, or other letter
providing that the specific plan involved qualifies under section
401(a) of such Code when such method is used, that contributions to
the account are deductible, or acknowledging that the account would
not adversely affect the qualified status of the plan (contingent on
all phases of the particular plan being approved).''
Amendment by sections 7811(g)(1), (h)(3) and 7816(l) of Pub. L. 101-
239 effective, except as otherwise provided, as if included in the
provision of the Technical and Miscellaneous Revenue Act of 1988, Pub.
L. 100-647, to which such amendment relates, see section 7817 of Pub. L.
101-239, set out as a note under section 1 of this title.
Section 7882 of Pub. L. 101-239 provided that: ``Except as otherwise
provided in this subpart [subpart C (Secs. 7881, 7882) of part V of
title VII of Pub. L. 101-239, amending this section and sections 411 and
412 of this title, and sections 1002, 1021, 1023, 1054, 1082, 1083,
1085b, 1103, 1107, 1108, 1113, 1132, 1306, 1322, 1341, 1342, 1344, 1362,
1364, 1368, 1370, and 1371 of Title 29, Labor, enacting provisions set
out as a note under section 1054 of Title 29, and amending provisions
set out as notes under sections 404 and 412 of this title and sections
1021, 1301, 1322, and 1344 of Title 29], any amendment made by this
subpart shall take effect as if included in the provision of the Pension
Protection Act [Pub. L. 100-203, title IX, subtitle D, part II,
Secs. 9302-9346] to which such amendment relates.''
Amendment by Pub. L. 101-140 effective as if included in section
1151 of Pub. L. 99-514, see section 203(c) of Pub. L. 101-140, set out
as a note under section 79 of this title.
Effective Date of 1988 Amendment
Section 1011(c)(7)(E) of Pub. L. 100-647 provided that:
``(i) Except as provided in clause (ii), the amendments made by this
paragraph [amending this section and sections 403, 408, and 501 of this
title] shall apply to plan years beginning after December 31, 1987.
``(ii) In the case of a plan described in section 1105(c)(2) of the
Reform Act [section 1105(c)(2) of Pub. L. 99-514, set out as an
Effective Date of 1986 Amendment note under section 402 of this title],
the amendments made by this paragraph shall not apply to contributions
made pursuant to an agreement described in such section for plan years
beginning before the earlier of--
``(I) the later of January 1, 1988, or the date on which the
last of such agreements terminates (determined without regard to any
extension thereof after February 28, 1986), or
``(II) January 1, 1989.''
Section 1011(k)(1)(C) of Pub. L. 100-647 provided that:
``(i) Subparagraph (A)(i) of section 401(k)(10) of the 1986 Code (as
added by subparagraph (B)) shall apply to distributions after October
16, 1987.
``(ii) Subparagraph (B) of section 401(k)(10) of the 1986 Code (as
added by subparagraph (B)) shall apply to distributions after March 31,
1988.''
Section 1011(l)(5)(B) of Pub. L. 100-647 provided that: ``The
amendment made by this paragraph [amending this section] shall take
effect as if included in the amendments made by section 1120 of the
Reform Act [Pub. L. 99-514].''
Amendment by sections 1011(d)(4), (e)(3), (g)(1)-(3), (h)(3),
(k)(1)(A), (B), (2)-(7), (9), (l)(1)-(4), (6), (7), 1011A(j), (l), and
1011B(j)(1), (2), (6), (k)(1), (2) of Pub. L. 100-647 effective, except
as otherwise provided, as if included in the provision of the Tax Reform
Act of 1986, Pub. L. 99-514, to which such amendment relates, see
section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
Section 6053(b) of Pub. L. 100-647 provided that: ``The amendment
made by subsection (a) [amending this section] shall take effect as if
included in the amendments made by section 1121 of the Reform Act [Pub.
L. 99-514].''
Section 6055(b) of Pub. L. 100-647 provided that: ``The amendment
made by this section [amending this section] shall take effect as if
included in the amendments made by section 1112(b) of the Reform Act
[Pub. L. 99-514].''
Section 6071(d) of Pub. L. 100-647 provided that: ``The amendments
made by this section [amending this section and section 457 of this
title] shall apply to taxable years beginning after the date of the
enactment of this Act [Nov. 10, 1988].''
Effective Date of 1987 Amendment
Section 9341(c) of Pub. L. 100-203, as amended by Pub. L. 101-239,
title VII, Sec. 7881(i)(5), Dec. 19, 1989, 103 Stat. 2442, provided
that:
``(1) In general.--Except as provided in this subsection, the
amendments made by this section [enacting section 1085b of Title 29,
Labor, and amending this section] shall apply to plan amendments adopted
after the date of the enactment of this Act [Dec. 22, 1987].
``(2) Collective bargaining agreements.--In the case of a plan
maintained pursuant to 1 or more collective bargaining agreements
between employee representatives and 1 or more employers ratified before
the date of the enactment of this Act, the amendments made by this
section shall not apply to plan amendments adopted pursuant to
collective bargaining agreements ratified before the date of enactment
(without regard to any extension, amendment, or modification of such
agreements on or after such date of enactment).''
Effective Date of 1986 Amendment
Amendment by section 1106(d)(1) of Pub. L. 99-514 applicable to
benefits accruing in years beginning after Dec. 31, 1988, except as
otherwise provided, see section 1106(i)(5) of Pub. L. 99-514, set out as
a note under section 415 of this title.
Section 1111(c) of Pub. L. 99-514, as amended by Pub. L. 100-647,
title I, Sec. 1011(g)(4), Nov. 10, 1988, 102 Stat. 3464, provided that:
``(1) Subsection (a).--The amendments made by subsection (a)
[amending this section] shall apply to benefits attributable to plan
years beginning after December 31, 1988.
``(2) Subsection (b).--The amendments made by subsection (b)
[amending this section] shall apply to years beginning after December
31, 1988.
``(3) Special rule for collective bargaining agreements.--In the
case of a plan maintained pursuant to 1 or more collective bargaining
agreements between employee representatives and 1 or more employers
ratified before March 1, 1986, the amendments made by this section shall
not apply to plan years beginning before the earlier of--
``(A) the later of--
``(i) January 1, 1989, or
``(ii) the date on which the last of such collective
bargaining agreements terminates (determined without regard to
any extension thereof after February 28, 1986), or
``(B) January 1, 1991.''
Section 1112(e) of Pub. L. 99-514, as amended by Pub. L. 100-647,
title I, Sec. 1011(h)(6)-(9), Nov. 10, 1988, 102 Stat. 3465, provided
that:
``(1) In general.--The amendments made by this section [amending
this section and sections 402, 404, 406, 407, 410, and 818 of this
title] shall apply to plan years beginning after December 31, 1988.
``(2) Special rule for collective bargaining agreements.--In the
case of a plan maintained pursuant to 1 or more collective bargaining
agreements between employee representatives and 1 or more employers
ratified before March 1, 1986, the amendments made by this section shall
not apply to plan years beginning before the earlier of--
``(A) the later of--
``(i) January 1, 1989, or
``(ii) the date on which the last of such collective
bargaining agreement terminates (determined without regard to
any extension thereof after February 28, 1986), or
``(B) January 1, 1991.
``(3) Waiver of excise tax on reversions.--
``(A) In general.--If--
``(i) a plan is in existence on August 16, 1986,
``(ii) such plan would fail to meet the requirements of
section 401(a)(26) of the Internal Revenue Code of 1986 (as
added by subsection (b)) if such section were in effect for the
plan year including August 16, 1986, and
``(iii) there is no transfer of assets to or liabilities
from the plan or spinoff or merger involving such plan after
August 16, 1986,
then no tax shall be imposed under section 4980 of such Code on any
employer reversion by reason of the termination or merger of such
plan before the 1st year to which the amendment made by subsection
(b) applies.
``(B) Interest rate for determining accrued benefit of highly
compensated employees for certain purposes.--In the case of a
termination, transfer, or distribution of assets of a plan described
in subparagraph (A)(ii) before the 1st year to which the amendment
made by subsection (b) applies--
``(i) Amount eligible for rollover, income averaging, or
tax-free transfer.--For purposes of determining any eligible
amount, the present value of the accrued benefit of any highly
compensated employee shall be determined by using an interest
rate not less than the highest of--
``(I) the applicable rate under the plan's method in
effect under the plan on August 16, 1986,
``(II) the highest rate (as of the date of the
termination, transfer, or distribution) determined under any
of the methods applicable under the plan at any time after
August 15, 1986, and before the termination, transfer, or
distribution in calculating the present value of the accrued
benefit of an employee who is not a highly compensated
employee under the plan (or any other plan used in
determining whether the plan meets the requirements of
section 401 of the Internal Revenue Code of 1986), or
``(III) 5 percent.
``(ii) Eligible amount.--For purposes of clause (i), the
term `eligible amount' means any amount with respect to a highly
compensated employee which--
``(I) may be rolled over under section 402(a)(5) of such
Code,
``(II) is eligible for income averaging under section
402(e)(1) of such Code, or capital gains treatment under
section 402(a)(2) or 403(a)(2) of such Code (as in effect
before this Act), or
``(III) may be transferred to another plan without
inclusion in gross income.
``(iii) Amounts subject to early withdrawal or excess
distribution tax.--For purposes of sections 72(t) and 4980A of
such Code, there shall not be taken into account the excess (if
any) of--
``(I) the amount distributed to a highly compensated
employee by reason of such termination or distribution, over
``(II) the amount determined by using the interest rate
applicable under clause (i).
``(iv) Distributions of annuity contracts.--If an annuity
contract purchased after August 16, 1986, is distributed to a
highly compensated employee in connection with such termination
or distribution, there shall be included in gross income for the
taxable year of such distribution an amount equal to the excess
of--
``(I) the purchase price of such contract, over
``(II) the present value of the benefits payable under
such contract determined by using the interest rate
applicable under clause (i).
Such excess shall not be taken into account for purposes of sections
72(t) and 4980A of such Code.
``(v) Highly compensated employee.--For purposes of this
subparagraph, the term `highly compensated employee' has the
meaning given such term by section 414(q) of such Code.
``(4) Special rule for plans which may not terminate.--To the extent
provided in regulations prescribed by the Secretary of the Treasury or
his delegate, if a plan is prohibited from terminating under title IV of
the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1301 et
seq.] before the 1st year to which the amendment made by subsection (b)
would apply, the amendment made by subsection (b) shall only apply to
years after the 1st year in which the plan is able to terminate.''
Amendment by section 1114(b)(7) of Pub. L. 99-514 applicable to
years beginning after Dec. 31, 1988, see section 1114(c)(3) of Pub. L.
99-514, set out as a note under section 414 of this title.
Section 1116(f) of Pub. L. 99-514, as amended by Pub. L. 100-647,
title I, Sec. 1011(k)(8), (10), Nov. 10, 1988, 102 Stat. 3470, provided
that:
``(1) In general.--Except as provided in this subsection, the
amendments made by this section [amending this section] shall apply to
years beginning after December 31, 1988.
``(2) Nondiscrimination rules.--
``(A) In general.--Except as provided in subparagraph (B), the
amendments made by subsections (a), (b)(4), and (d) [amending this
section], and the provisions of section 401(k)(4)(B) of the Internal
Revenue Code of 1986 (as added by this section), shall apply to
years beginning after December 31, 1986.
``(B) Transition rules for certain governmental and tax-exempt
plans.--Subparagraph (B) of section 401(k)(4) of the Internal
Revenue Code of 1986 (relating to governments and tax-exempt
organizations not eligible for cash or deferred arrangements), as
added by this section, shall not apply to any cash or deferred
arrangement adopted by--
``(i) a State or local government or political subdivision
thereof, or any agency or instrumentality thereof, before May 6,
1986, or
``(ii) a tax-exempt organization before July 2, 1986.
In the case of an arrangement described in clause (i), the
amendments made by subsections (a), (b)(4), and (d) shall apply to
years beginning after December 31, 1988. If clause (i) or (ii)
applies to any arrangement adopted by a governmental unit, then any
cash or deferred arrangement adopted by such unit on or after the
date referred to in the applicable clause shall be treated as
adopted before such date.
``(3) Aggregation and excess contributions.--The amendments made by
subsections (c) and (e) [amending this section] shall apply to years
beginning after December 31, 1986.
``(4) Collective bargaining agreements.--
``(A) In general.--In the case of a plan maintained pursuant to
1 or more collective bargaining agreements between employee
representatives and 1 or more employers ratified before March 1,
1986, the amendments made by this section shall not apply to years
beginning before the earlier of--
``(i) the later of--
``(I) January 1, 1989, or
``(II) the date on which the last of such collective
bargaining agreements terminates (determined without regard
to any extension thereof after February 28, 1986), or
``(ii) January 1, 1991.
``(B) Special rule for nondiscrimination rules.--In the case of
a plan described in subparagraph (A), the amendments and provisions
described in paragraph (2) shall not apply to years beginning before
the earlier of--
``(i) the date determined under subparagraph (A)(i)(II), or
``(ii) January 1, 1989.
``(5) Special rule for qualified offset arrangements.--
``(A) In general.--A cash or deferred arrangement shall not be
treated as failing to meet the requirements of section 401(k)(4) of
the Internal Revenue Code of 1986 (as added by this section) to the
extent such arrangement is part of a qualified offset arrangement
consisting of such cash or deferred arrangement and a defined
benefit plan.
``(B) Qualified offset arrangement.--For purposes of
subparagraph (A), a cash or deferred arrangement is part of a
qualified offset arrangement with a defined benefit plan to the
extent such offset arrangement satisfies each of the following
conditions with respect to the employer maintaining the arrangement
on April 16, 1986, and at all times thereafter:
``(i) The benefit under the defined benefit plan is directly
and uniformly conditioned on the initial elective deferrals (up
to 4 percent of compensation).
``(ii) The benefit provided under the defined benefit plan
(before the offset) is at least 60 percent of an employee's
cumulative elective deferrals (up to 4 percent of compensation).
``(iii) The benefit under the defined benefit plan is
reduced by the benefit attributable to the employee's elective
deferrals under the plan (up to 4 percent of compensation) and
the income allocable thereto. The interest rate used to
calculate the reduction shall not exceed the greater of the rate
under section 411(a)(11)(B)(ii) of such Code or the interest
rate applicable under section 411(c)(2)(C)(iii) of such Code,
taking into account section 411(c)(2)(D) of such Code.
For purposes of applying section 401(k)(3) of such Code to the cash
or deferred arrangement, the benefits under the defined benefit plan
conditioned on initial elective deferrals may be treated as matching
contributions under such rules as the Secretary of the Treasury or
his delegate may prescribe. The Secretary shall provide rules for
the application of this paragraph in the case of successor plans.
``(C) Definition of employer.--For purposes of this paragraph,
the term `employer' includes any research and development center
which is federally funded and engaged in cancer research, but only
with respect to employees of contractor-operators whose salaries are
reimbursed as direct costs against the operator's contract to
perform work at such center.
``(6) Withdrawals on sale of assets.--Subclauses (II), (III), and
(IV) of section 401(k)(2)(B)(i) of the Internal Revenue Code of 1986 (as
added by subsection (b)(1)) shall apply to distributions after December
31, 1984.
``(7) Distributions before plan amendment.--
``(A) In general.--If a plan amendment is required to allow a
plan to make any distribution described in section 401(k)(8) of the
Internal Revenue Code of 1986, any such distribution which is made
before the close of the 1st plan year for which such amendment is
required to be in effect under section 1140 [set out as a note
below], shall be treated as made in accordance with the provisions
of such plan.
``(B) Distributions pursuant to model amendment.--
``(i) Secretary to prescribe amendment.--The Secretary of
the Treasury or his delegate shall prescribe an amendment which
allows a plan to make any distribution described in section
401(k)(8) of such Code.
``(ii) Adoption by plan.--If a plan adopts the amendment
prescribed under clause (i) and makes a distribution in
accordance with such amendment, such distribution shall be
treated as made in accordance with the provisions of the plan.''
Section 1117(d) of Pub. L. 99-514, as amended by Pub. L. 100-647,
title I, Sec. 1011(l)(12), Nov. 10, 1988, 102 Stat. 3471, provided that:
``(1) In general.--The amendments made by this section [enacting
section 4979 of this title and amending this section and section 414 of
this title] shall apply to plan years beginning after December 31, 1986.
``(2) Collective bargaining agreements.--In the case of a plan
maintained pursuant to 1 or more collective bargaining agreements
between employee representatives and 1 or more employers ratified before
March 1, 1986, the amendments made by this section shall not apply to
plan years beginning before the earlier of--
``(A) January 1, 1989, or
``(B) the date on which the last of such collective bargaining
agreements terminates (determined without regard to any extension
thereof after February 28, 1986).
``(3) Annuity contracts.--In the case of an annuity contract under
section 403(b) of the Internal Revenue Code of 1986--
``(A) the amendments made by this section shall apply to plan
years beginning after December 31, 1988, and
``(B) in the case of a collective bargaining agreement described
in paragraph (2), the amendments made by this section shall not
apply to years beginning before the earlier of--
``(i) the later of--
``(I) January 1, 1989, or
``(II) the date determined under paragraph (2)(B), or
``(ii) January 1, 1991.
``(4) Distributions before plan amendment.--
``(A) In general.--If a plan amendment is required to allow a
plan to make any distribution described in section 401(m)(6) of the
Internal Revenue Code of 1986, any such distribution which is made
before the close of the 1st plan year for which such amendment is
required to be in effect under section 1140 [set out as a note
below] shall be treated as made in accordance with the provisions of
the plan.
``(B) Distributions pursuant to model amendment.--
``(i) Secretary to prescribe amendment.--The Secretary of
the Treasury or his delegate shall prescribe an amendment which
allows a plan to make any distribution described in section
401(m)(6) of the Internal Revenue Code of 1986.
``(ii) Adoption by plan.--If a plan adopts the amendment
prescribed under clause (i) and makes a distribution in
accordance with such amendment, such distribution shall be
treated as made in accordance with the provisions of the plan.''
Section 1119(b) of Pub. L. 99-514 provided that: ``The amendment
made by subsection (a) [amending this section] shall apply to plan years
beginning after December 31, 1985.''
Section 1121(d) of Pub. L. 99-514, as amended by Pub. L. 100-647,
title I, Sec. 1011A(a)(3), (4), Nov. 10, 1988, 102 Stat. 3472, provided
that:
``(1) In general.--Except as provided in this subsection, the
amendments made by this section [amending this section and sections 402,
408, and 4974 of this title] shall apply to years beginning after
December 31, 1988.
``(2) Subsection (c).--The amendments made by subsection (c)
[amending sections 402 and 408 of this title] shall apply to years
beginning after December 31, 1986.
``(3) Collective bargaining agreements.--In the case of a plan
maintained pursuant to 1 or more collective bargaining agreements
between employee representatives and 1 or more employers ratified before
March 1, 1986, the amendments made by this section shall not apply to
distributions to individuals covered by such agreements in years
beginning before the earlier of--
``(A) the later of--
``(i) the date on which the last of such collective
bargaining agreements terminates (determined without regard to
any extension thereof after February 28, 1986), or
``(ii) January 1, 1989, or
``(B) January 1, 1991.
``(4) Transition rules.--
``(A) The amendments made by subsections (a) and (b) [amending
this section and section 4974 of this title] shall not apply with
respect to any benefits with respect to which a designation is in
effect under section 242(b)(2) of the Tax Equity and Fiscal
Responsibility Act of 1982 [section 242(b)(2) of Pub. L. 97-248,
formerly set out as a note below].
``(B)(i) Except as provided in clause (ii), the amendment made
by subsection (b) [amending this section] shall not apply in the
case of any individual who has attained age 70\1/2\ before January
1, 1988.
``(ii) Clause (i) shall not apply to any individual who is a 5-
percent owner (as defined in section 416(i) of the Internal Revenue
Code of 1986), at any time during--
``(I) the plan year ending with or within the calendar year
in which such owner attains age 66\1/2\, and
``(II) any subsequent plan year.
``(5) Plans may incorporate section 401(a)(9) requirements by
reference.--Notwithstanding any other provision of law, except as
provided in regulations prescribed by the Secretary of the Treasury or
his delegate, a plan may incorporate by reference the requirements of
section 401(a)(9) of the Internal Revenue Code of 1986.''
Section 1136(c) of Pub. L. 99-514 provided that: ``The amendment
made by subsection (a) [amending this section] shall apply to years
beginning after December 31, 1985.''
Section 1143(b) of Pub. L. 99-514 provided that: ``The amendment
made by subsection (a) [amending this section] shall apply to taxable
years beginning after December 31, 1986.''
Section 1145(d) of Pub. L. 99-514 provided that: ``The amendments
made by this section [amending this section, section 1055 of Title 29,
Labor, and provisions set out as a note under section 1001 of Title 29]
shall apply as if included in the amendments made by the Retirement
Equity Act of 1984 [Pub. L. 98-397].''
Amendment by section 1171(b)(5) of Pub. L. 99-514 applicable to
compensation paid or accrued after Dec. 31, 1986, in taxable years
ending after such date, except as otherwise provided, see section
1171(c) of Pub. L. 99-514, set out as a note under section 38 of this
title.
Section 1174(c)(2)(B) of Pub. L. 99-514 provided that: ``The
amendment made by this paragraph [amending this section] shall apply to
distributions attributable to stock acquired after December 31, 1986.''
Section 1175(a)(2) of Pub. L. 99-514 provided that: ``The amendment
made by this subsection [amending this section] shall apply to stock
acquired after December 31, 1986.''
Section 1176(c) of Pub. L. 99-514 provided that: ``The amendment
made by subsection (a) [amending this section] shall be effective
December 31, 1986. The amendment made by subsection (b) [amending
section 409 of this title] shall apply to acquisitions of securities
after December 31, 1986.''
Section 1852(h)(1) of Pub. L. 99-514, as amended by Pub. L. 100-647,
title I, Sec. 1018(t)(3)(C), Nov. 10, 1988, 102 Stat. 3588, provided
that the amendment made by that section is effective for years beginning
after Dec. 31, 1985.
Section 1879(g)(3) of Pub. L. 99-514 provided that: ``The amendments
made by this subsection [amending this section] shall apply to plan
years beginning after December 31, 1984.''
Amendment by sections 1848(b) and 1852(a)(4)(A), (6), (b)(8), (g),
(h)(1) of Pub. L. 99-514 effective, except as otherwise provided, as if
included in the provisions of the Tax Reform Act of 1984, Pub. L. 98-
369, div. A, to which such amendment relates, see section 1881 of Pub.
L. 99-514, set out as a note under section 48 of this title.
Section 1898(j) of Pub. L. 99-514 provided that: ``Except as
otherwise provided in this section, any amendment made by this section
[amending this section, sections 402, 411, 414, 415, 417, and 2503 of
this title, and sections 1053 to 1056 of Title 29, Labor, and provisions
set out as notes under section 1001 of Title 29] shall take effect as if
included in the provision of the Retirement Equity Act of 1984 [Pub. L.
98-397] to which such amendment relates.''
Effective Date of 1984 Amendments
Amendment by section 203(a) of Pub. L. 98-397 applicable to plan
years beginning after Dec. 31, 1984, amendment by section 204(a) of Pub.
L. 98-397 effective Jan. 1, 1985, and amendment by section 301(b) of
Pub. L. 98-397 applicable to plan amendments made after July 30, 1984,
but not applicable to the termination of a certain defined benefit plan,
except as otherwise provided, see sections 302 and 303 of Pub. L. 98-
397, set out as a note under section 1001 of Title 29, Labor.
Nothing in amendment by section 203(a) of Pub. L. 98-397 to prevent
any distribution required by reason of a failure to comply with the
terms of a loan made on or before Aug. 18, 1985, and secured by a
portion of the participant's accrued benefit, see section
1898(b)(4)(C)(ii) of Pub. L. 99-514, set out as an Effective Date of
1986 Amendment note under section 417 of this title.
Amendment by section 211(b)(5) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L.
98-369, set out as an Effective Date note under section 801 of this
title.
Amendment by section 474(r)(13) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, and to carrybacks from such
years, see section 475(a) of Pub. L. 98-369, set out as a note under
section 21 of this title.
Section 491(f)(3) of Pub. L. 98-369 provided that: ``The amendments
made by subsection (e) [redesignating section 409A as section 409 of
this title and amending this section and sections 41, 415, 4975, and
6699 of this title] shall take effect on January 1, 1984.''
Section 521(e) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
``(1) In general.--The amendments made by this section [amending
this section and sections 72, 403, and 408 of this title and repealing
provisions set out as a note under this section] shall apply to years
beginning after December 31, 1984.
``(2) Repeal of section 242 of tefra.--The amendment made by
subsection (a)(2) [repealing section 242 of Pub. L. 97-248, which
amended this section and enacted provisions formerly set out below]
shall take effect as if included in the Tax Equity and Fiscal
Responsibility Act of 1982 [Pub. L. 97-248].
``(3) Transition rule.--A trust forming part of a plan shall not be
disqualified under paragraph (9) of section 401(a) of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954], as amended by subsection
(a)(1), by reason of distributions under a designation (before January
1, 1984) by any employee in accordance with a designation described in
section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act of
1982 (as in efffect [sic] before the amendments made by this Act)
[formerly set out as an Effective Date of 1982 Amendment note below].
``(4) Special rule for governmental plans.--In the case of a
governmental plan (within the meaning of section 414(d) of the Internal
Revenue Code of 1986), paragraph (1) shall be applied by substituting
`1986' for `1984'.
``(5) Special rule for collective bargaining agreements.--In the
case of a plan maintained pursuant to one or more collective bargaining
agreements ratified on or before the date of the enactment of this Act
[July 18, 1984] between employee representatives and one or more
employers, the amendments made by this section shall not apply to years
beginning before the earlier of--
``(A) the date on which the last of the collective bargaining
agreements relating to the plan terminates (determined without
regard to any extension thereof agreed to after the date of the
enactment of this Act), or
``(B) January 1, 1988.
For purposes of subparagraph (A), any plan amendment made pursuant to a
collective bargaining agreement relating to the plan which amends the
plan solely to conform to any requirement added by this section shall
not be treated as a termination of such collective bargaining
agreement.''
Section 524(d)(2) of Pub. L. 98-369 provided that: ``The amendment
made by this subsection [amending this section] shall apply to plan
years beginning after December 31, 1983.''
Section 527(c) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
``(1) Subsection (a).--
``(A) In general.--Except as provided in subparagraph (B), the
amendment made by subsection (a) [amending this section] shall apply
to plan years beginning after December 31, 1984.
``(B) Exception for certain existing plans.--The amendment made
by subsection (a) shall not apply to any plan--
``(i) which was maintained by a State on June 8, 1984, and
``(ii) with respect to which a determination letter had been
issued by the Secretary on December 6, 1982.
``(2) Subsection (b).--
``(A) In general.--The amendments made by this section [amending
this section] shall apply with respect to plan years beginning after
the date of the enactment of this Act [July 18, 1984].
``(B) Transitional rule.--Rules similar to the rules under
section 135(c)(2) of the Revenue Act of 1978 [section 135(c)(2) of
Pub. L. 95-600, set out below] shall apply with respect to any pre-
ERISA money purchase plan (as defined in section 401(k)(5) of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954]) for plan years
beginning after December 31, 1979, and on or before the date of the
enactment of this Act.''
Section 528(c) of Pub. L. 98-369 provided that: ``The amendments
made by this section [amending this section and section 415 of this
title] shall apply to years beginning after March 31, 1984.''
Amendment by section 713 of Pub. L. 98-369 effective as if included
in the provision of the Tax Equity and Fiscal Responsibility Act of
1982, Pub. L. 97-248, to which such amendment relates, see section 715
of Pub. L. 98-369, set out as a note under section 31 of this title.
Effective Date of 1983 Amendments
Amendment by Pub. L. 98-21 applicable to taxable years beginning
after Dec. 31, 1989, see section 124(d)(2) of Pub. L. 98-21, set out as
a note under section 1401 of this title.
Amendment by Pub. L. 97-448 effective, except as otherwise provided,
as if it had been included in the provision of the Economic Recovery Tax
Act of 1981, Pub. L. 97-34, to which such amendment relates, see section
109 of Pub. L. 97-448, set out as a note under section 1 of this title.
Effective Date of 1982 Amendment
Section 242(b) of Pub. L. 97-248, which prescribed the effective
date for amendment by section 242(a) of Pub. L. 97-248, was repealed by
Pub. L. 98-369, div. A, title V, Sec. 521(a)(2), July 18, 1984, 98 Stat.
867.
Section 249(b) of Pub. L. 97-248 provided that: ``The amendments
made by this section [amending this section] shall apply to plan years
beginning after December 31, 1983.''
Section 254(b) of Pub. L. 97-248 provided that: ``The amendment made
by subsection (a) [amending this section] shall apply with respect to
taxable years beginning after December 31, 1981.''
Amendment by sections 237, 238, and 240 of Pub. L. 97-248 applicable
to years beginning after Dec. 31, 1983, see section 241 of Pub. L. 97-
248, set out as an Effective Date note under section 416 of this title.
Effective Date of 1981 Amendment
Amendment by section 312(b)(1), (c)(2)-(4), (e)(2) of Pub. L. 97-34
applicable to plans which include employees within the meaning of
subsec. (c)(1) of this section with respect to taxable years beginning
after Dec. 31, 1981, see section 312(f)(1) of Pub. L. 97-34, set out as
a note under section 72 of this title.
Section 314(a)(2) of Pub. L. 97-34 provided that: ``The amendment
made by paragraph (1) [amending this section] shall apply to
distributions after December 31, 1980, in taxable years beginning after
such date.''
Section 338(b) of Pub. L. 97-34 provided that: ``The amendment made
by this section [amending this section] shall apply to acquisitions of
securities after December 31, 1979.''
Section 339 of Pub. L. 97-34 provided that: ``Except as otherwise
provided, the amendments made by this subtitle [subtitle D (Secs. 331-
339) of title III of Pub. L. 97-34, enacting section 44G of this title
and amending this section and sections 46, 48, 55, 56, 381, 383, 404,
409A, 415, 6096, 6411, 6511, and 6699 of this title] shall apply to
taxable years beginning after December 31, 1981.''
Effective Date of 1980 Amendments
Section 221(b) of Pub. L. 96-605 provided that: ``The amendment made
by subsection (a) [amending this section] shall apply with respect to
plan years beginning after December 31, 1980.''
Section 225(c) of Pub. L. 96-605 provided that: ``The amendments
made by this section [amending this section and sections 408 and 410 of
this title] shall apply with respect to plan years beginning after
December 31, 1980.''
Section 410(c) of Pub. L. 96-364 provided that: ``The amendment made
by this section [amending this section and section 1103 of Title 29,
Labor] shall take effect on January 1, 1975, except that in the case of
contributions received by a collectively bargained plan maintained by
more than one employer before the date of enactment of this Act, [Sept.
26, 1980], any determination by the plan administrator that any such
contribution was made by mistake of fact or law before such date shall
be deemed to have been made on such date of enactment.''
Amendment by section 208(a), (e) of Pub. L. 96-364 effective Sept.
26, 1980, see section 210(a) of Pub. L. 96-364, set out as an Effective
Date note under section 418 of this title.
Amendment by Pub. L. 96-222 effective, except as otherwise provided,
as if it had been included in the provisions of the Revenue Act of 1978,
Pub. L. 95-600, to which such amendment relates, see section 201 of Pub.
L. 96-222, set out as a note under section 32 of this title.
Effective Date of 1978 Amendment
Section 135(c)(1) of Pub. L. 95-600 provided that: ``The amendments
made by this section [amending this section and section 402 of this
title] shall apply to plan years beginning after December 31, 1979.''
Amendment by section 141(f)(3) of Pub. L. 95-600 effective with
respect to qualified investment for taxable years beginning after Dec.
31, 1978, see section 141(g)(1) of Pub. L. 95-600, set out as an
Effective Date note under section 409 of this title.
Section 143(b) of Pub. L. 95-600 provided that: ``The amendment made
by subsection (a) [amending this section] shall apply to acquisitions of
securities after December 31, 1979.''
Amendment by section 152(e) of Pub. L. 95-600 applicable to taxable
years beginning after Dec. 31, 1978, see section 152(h) of Pub. L. 95-
600, set out as a note under section 408 of this title.
Effective Date of 1976 Amendments
Amendment by section 803(b)(2) of Pub. L. 94-455 effective for
taxable years beginning after Dec. 31, 1974, see section 803(j) of Pub.
L. 94-455, set out as a note under section 46 of this title.
Section 1505(c) of Pub. L. 94-455 provided that: ``The amendments
made by this section [amending this section and section 801 of this
title] apply for taxable years beginning after December 31, 1975.''
Amendment by section 1901(a)(56) of Pub. L. 94-455 effective for
taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub.
L. 94-455, set out as a note under section 2 of this title.
Section 1(e) of Pub. L. 94-267 provided that: ``The amendments made
by this Act [amending this section and sections 402 to 404 and 805 of
this title, and enacting provisions set out as a note under section 402
of this title] shall apply with respect to payments made to an employee
on or after July 4, 1974.''
Effective Date of 1974 Amendment
Amendment by sections 1012(b) and 1016(a)(2) of Pub. L. 93-406
applicable, except as otherwise provided in section 1017(c) through (i)
of Pub. L. 93-406, for plan years beginning after Sept. 2, 1974, but, in
the case of plans in existence on Jan. 1, 1974, amendment by sections
1012(b) and 196(a)(2) of Pub. L. 93-406 applicable for plan years
beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93-406, set
out as an Effective Date; Transitional Rules note under section 410 of
this title.
Section 1021(a)(1), (b) of Pub. L. 93-406 provided that the
amendment made by that section is effective with respect to plan years
beginning after Dec. 31, 1975.
Section 1022(d) of Pub. L. 93-406 provided that the amendment made
by that section is effective as of Jan. 1, 1974.
Section 1022(f) of Pub. L. 93-406 provided that the amendment made
by that section is effective as of Jan. 1, 1974.
Section 1024 of Pub. L. 93-406 provided that: ``Except as otherwise
provided in section 1021, the amendments made by section 1021 [amending
this section] shall apply to plan years to which part I applies. [For
description of plan years to which part I applies, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules note
under section 410 of this title.] Except as otherwise provided in
section 1022, the amendments made by section 1022 [amending this section
and section 6051 of this title] shall apply to plan years to which part
I applies. Section 1023 [amending this section] shall take effect on the
date of the enactment of this Act [Sept. 2, 1974].''
Section 2001(i)(2)-(4) of Pub. L. 93-406 provided that:
``(2) The amendments made by subsection (c) [amending this
section] apply to
``(A) taxable years beginning after December 31, 1975, and
``(B) any other taxable years beginning after December 31,
1973, for which contributions were made under the plan in excess
of the amounts permitted to be made under sections 404(e) and
1379(b) [of this title] as in effect on the day before the date
of the enactment of this Act [Sept. 2, 1974].
``(3) The amendments made by subsection (d) [amending this
section] apply to taxable years beginning after December 31, 1975.
``(4) The amendments made by subsections (e) and (f) [enacting
section 4972 of this title and amending this section and section 72
of this title] apply to contributions made in taxable years
beginning after December 31, 1975.''
Amendment by section 2001(h)(1) of Pub. L. 93-406 applicable to
taxable years ending after Sept. 2, 1974, see section 2001(i)(6) of Pub.
L. 93-406, set out as a note under section 72 of this title.
Amendment by section 2004(a)(1) of Pub. L. 93-406 applicable to
years beginning after Dec. 31, 1975, see section 2004(d) of Pub. L. 93-
406, set out as an Effective Date; Transitional Provisions note under
section 415 of this title.
Effective Date of 1971 Amendment
Section 1(b) of Pub. L. 91-691 provided that: ``The amendments made
by subsection (a) [amending this section] shall apply to taxable years
beginning after December 31, 1953, and ending after August 16, 1954, but
only with respect to contributions made after December 31, 1954.''
Effective Date of 1966 Amendment
Section 204(d) of Pub. L. 89-809, as amended by Pub. L. 90-607, Oct.
21, 1968, 82 Stat. 1189; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100
Stat. 2095, provided that: ``The amendments made by subsections (a) and
(b) [amending this section and section 404 of this title] shall apply
with respect to taxable years beginning after December 31, 1967. The
amendment made by subsection (c) [amending this section] shall apply
with respect to taxable years beginning after December 31, 1967, and in
the case of a taxpayer who applies the averaging provisions of section
401(e)(3) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]
for a taxable year beginning after December 31, 1967, the computation of
the amount deductible under section 404 of such Code for any prior
taxable year which began before January 1, 1968, shall be made, for
purposes of such averaging provisions, as if the amendment made by
subsection (c) were applicable to such prior taxable year.''
Section 205(b) of Pub. L. 89-809 provided that: ``The amendment made
by subsection (a) [amending this section] shall apply to taxable years
ending after the date of the enactment of this Act [Nov. 13, 1966].''
Effective Date of 1965 Amendment
Amendment by Pub. L. 89-97 applicable to taxable years beginning
after Dec. 31, 1966, see section 106(e) of Pub. L. 89-97, set out as a
note under section 213 of this title.
Effective Date of 1964 Amendment
Section 219(b) of Pub. L. 88-272 provided that: ``The amendments
made by subsection (a) [amending this section] shall apply with respect
to taxable years beginning after December 31, 1953, and ending after
August 16, 1954, but only with respect to contributions made after
December 31, 1954.''
Effective Date of 1962 Amendments
Section 2(c) of Pub. L. 87-863 provided that: ``The amendments made
by subsections (a) and (b) [amending this section and section 404 of
this title] shall apply to taxable years beginning after the date of the
enactment of this Act [Oct. 23, 1962].''
Amendment by Pub. L. 87-792 applicable to taxable years beginning
after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a note
under section 22 of this title.
Short Title of 1962 Amendment
Section 1 of Pub. L. 87-792 provided: ``That this Act [enacting
sections 405 and 6047 of this title and amending this section and
sections 37, 62, 72, 101, 104, 105, 172, 402 to 404, 503, 805, 1361,
2039, 2517, 3306, 3401, and 7207 of this title] may be cited as the
`Self-Employed Individuals Tax Retirement Act of 1962'.''
Regulations
Pub. L. 107-16, title VI, Sec. 657(c)(2), June 7, 2001, 115 Stat.
136, provided that:
``(A) Automatic rollover safe harbor.--Not later than 3 years after
the date of enactment of this Act [June 7, 2001], the Secretary of Labor
shall prescribe regulations providing for safe harbors under which the
designation of an institution and investment of funds in accordance with
section 401(a)(31)(B) of the Internal Revenue Code of 1986 is deemed to
satisfy the fiduciary requirements of section 404(a) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)).
``(B) Use of low-cost individual retirement plans.--The Secretary of
the Treasury and the Secretary of Labor may provide, and shall give
consideration to providing, special relief with respect to the use of
low-cost individual retirement plans for purposes of transfers under
section 401(a)(31)(B) of the Internal Revenue Code of 1986 and for other
uses that promote the preservation of assets for retirement income
purposes.''
Section 1141 of Pub. L. 99-514 provided that: ``The Secretary of the
Treasury or his delegate shall issue before February 1, 1988, such final
regulations as may be necessary to carry out the amendments made by--
``(1) section 1111 [amending this section], relating to
application of nondiscrimination rules to integrated plans,
``(2) section 1112 [amending this section and sections 402, 404,
406, 407, 410, and 818 of this title], relating to coverage
requirements for qualified plans,
``(3) section 1113 [amending sections 410 and 411 of this title
and sections 1052 to 1054 of Title 29, Labor], relating to minimum
vesting standards,
``(4) section 1114 [amending this section, sections 106, 117,
120, 127, 129, 132, 274, 404A, 406, 407, 411, 414, 415, 423, 501,
505, and 4975 of this title, and section 1108 of Title 29], relating
to the definition of highly compensated employee,
``(5) section 1115 [amending section 414 of this title],
relating to separate lines of business and the definition of
compensation,
``(6) section 1116 [amending this section], relating to rules
for section 401(k) plans,
``(7) section 1117 [enacting section 4979 of this title and
amending this section and section 414 of this title], relating to
nondiscrimination requirements for employer matching and employer
contribution,
``(8) section 1120 [amending section 403 of this title],
relating to nondiscrimination requirements for tax sheltered
annuities, and
``(9) section 1133 [enacting section 4981A [now 4980A] of this
title], relating to tax on excess distributions.''
New Technologies in Retirement Plans
Section 1510 of Pub. L. 105-34 provided that:
``(a) In General.--Not later than December 31, 1998, the Secretary
of the Treasury and the Secretary of Labor shall each issue guidance
which is designed to--
``(1) interpret the notice, election, consent, disclosure, and
time requirements (and related recordkeeping requirements) under the
Internal Revenue Code of 1986 and the Employee Retirement Income
Security Act of 1974 [29 U.S.C. 1001 et seq.] relating to retirement
plans as applied to the use of new technologies by plan sponsors and
administrators while maintaining the protection of the rights of
participants and beneficiaries, and
``(2) clarify the extent to which writing requirements under the
Internal Revenue Code of 1986 relating to retirement plans shall be
interpreted to permit paperless transactions.
``(b) Applicability of Final Regulations.--Final regulations
applicable to the guidance regarding new technologies described in
subsection (a) shall not be effective until the first plan year
beginning at least 6 months after the issuance of such final
regulations.''
Treatment of Qualified Football Coaches Plan
Section 1704(k) of Pub. L. 104-188 provided that:
``(1) In general.--For purposes of the Internal Revenue Code of
1986, a qualified football coaches plan--
``(A) shall be treated as a multiemployer collectively bargained
plan, and
``(B) notwithstanding section 401(k)(4)(B) of such Code, may
include a qualified cash and deferred arrangement under section
401(k) of such Code.
``(2) Qualified football coaches plan.--For purposes of this
subsection, the term `qualified football coaches plan' means any defined
contribution plan which is established and maintained by an
organization--
``(A) which is described in section 501(c) of such Code,
``(B) the membership of which consists entirely of individuals
who primarily coach football as full-time employees of 4-year
colleges or universities described in section 170(b)(1)(A)(ii) of
such Code, and
``(C) which was in existence on September 18, 1986.
``(3) Effective date.--This subsection shall apply to years
beginning after December 22, 1987.''
Applicability of Subsection (a)(26)
Section 6065 of Pub. L. 100-647 provided that: ``In the case of plan
years beginning before January 1, 1993, section 401(a)(26) of the 1986
Code shall not apply to any governmental plan (within the meaning of
section 414(d) of such Code) with respect to employees who were
participants in such plan on July 14, 1988.''
Coordination of Internal Revenue Code of 1986 With Employee Retirement
Income Security Act of 1974
Section 9343(a) of Pub. L. 100-203 provided that: ``Except to the
extent specifically provided in the Internal Revenue Code of 1986 or as
determined by the Secretary of the Treasury, titles I and IV of the
Employee Retirement Income Security Act of 1974 [29 U.S.C. 1001 et seq.,
1301 et seq.] are not applicable in interpreting such Code.''
Plan Amendments Not Required Until January 1, 1998
Section 1465 of title I of Pub. L. 104-188 provided that: ``If any
amendment made by this subtitle [subtitle D (Secs. 1401-1465) of title I
of Pub. L. 104-188, see Tables for classification] requires an amendment
to any plan or annuity contract, such amendment shall not be required to
be made before the first day of the first plan year beginning on or
after January 1, 1998, if--
``(1) during the period after such amendment takes effect and
before such first plan year, the plan or contract is operated in
accordance with the requirements of such amendment, and
``(2) such amendment applies retroactively to such period.
In the case of a governmental plan (as defined in section 414(d) of the
Internal Revenue Code of 1986), this section shall be applied by
substituting `2000' for `1998'.''
Plan Amendments Not Required Until January 1, 1994
Section 523 of title V of Pub. L. 102-318 provided that: ``If any
amendment made by this subtitle [subtitle B (Secs. 521-523) of title V
of Pub. L. 102-318, amending this section and sections 55, 62, 72, 219,
402 to 404, 406 to 408, 411, 414, 415, 457, 691, 871, 877, 1441, 3121,
3306, 3402, 3405, 4973, 4980A, 6047, 6652, and 7701 of this title]
requires an amendment to any plan, such plan amendment shall not be
required to be made before the first plan year beginning on or after
January 1, 1994, if--
``(1) during the period after such amendment takes effect and
before such first plan year, the plan is operated in accordance with
the requirements of such amendment, and
``(2) such plan amendment applies retroactively to such
period.''
Plan Amendments Not Required Until January 1, 1989
Section 1140 of title XI of Pub. L. 99-514, as amended by Pub. L.
101-239, title VII, Sec. 7861(c), Dec. 19, 1989, 103 Stat. 2431; Pub. L.
104-188, title I, Sec. 1704(t)(27), Aug. 20, 1996, 110 Stat. 1888,
provided that:
``(a) In General.--If any amendment made by this subtitle, subtitle
C [subtitles A (Secs. 1101-1147) and C (Secs. 1171-1177) of title XI of
Pub. L. 99-514, enacting sections 2057, 4972, 4979, 4980, 4981A, and
6659A of this title, amending this section, sections 38, 56, 72, 106,
108, 117, 120, 127, 129, 132, 133, 219, 274, 402 to 404A, 406 to 411,
414 to 417, 423, 457, 501, 505, 818, 852, 3121, 3306, 3405, 4973 to
4975, 4979A, 6051, 6693, and 7701 of this title, and sections 1052 to
1055 and 1108 of Title 29, Labor, repealing sections 41 and 6699 of this
title, and amending provisions set out as a note under section 1001 of
Title 29], or title XVIII of this Act [see Tables for classification]
requires an amendment to any plan, such plan amendment shall not be
required to be made before the first plan year beginning on or after
January 1, 1989, if--
``(1) during the period after such amendment takes effect and
before such first plan year, the plan is operated in accordance with
the requirements of such amendment or in accordance with an
amendment prescribed by the Secretary and adopted by the plan, and
``(2) such plan amendment applies retroactively to the period
after such amendment takes effect and such first plan year.
A pension plan shall not be treated as failing to provide definitely
determinable benefits or contributions, or to be operated in accordance
with the provisions of the plan, merely because it operates in
accordance with this provision.
``(b) Model Amendment.--
``(1) Secretary to prescribe amendment.--The Secretary of the
Treasury or his delegate shall prescribe an amendment or amendments
which allow a plan to meet the requirements of any amendment made by
this subtitle or subtitle C--
``(A) which requires an amendment to such plan, and
``(B) is effective before the first plan year beginning
after December 31, 1988.
``(2) Adoption by plan.--If a plan adopts the amendment or
amendments prescribed under paragraph (1) and operates in accordance
with such amendment or amendments, such plan shall not be treated as
failing to provide definitely determinable benefits or contributions
or to be operated in accordance with the provisions of the plan.
``(c) Special Rule for Collectively Bargained Plans.--In the case of
a plan maintained pursuant to 1 or more collective bargaining agreements
between employee representatives and 1 or more employers ratified before
March 1, 1986, subsection (a) shall be applied by substituting for the
first plan year beginning on or after January 1, 1989, the first plan
year beginning after the later of--
``(1) December 31, 1988, or
``(2) the earlier of--
``(A) December 31, 1990, or
``(B) the date on which the last of such collective
bargaining agreements terminate (without regard to any extension
after February 28, 1986).
For purposes of paragraph (1)(B) [(2)(B)] and any other provision of
this title [see Tables for classification], an agreement shall not be
treated as terminated merely because the plan is amended pursuant to
such agreement to meet the requirements of any amendment made by this
title or title XVIII of this Act.''
Secretary To Accept Applications With Respect to Section 401(k) Plans
Section 1142 of Pub. L. 99-514 provided that: ``The Secretary of the
Treasury or his delegate shall, not later than May 1, 1987, begin
accepting applications for opinion letters with respect to master and
prototype plans for qualified cash or deferred arrangements under
section 401(k) of the Internal Revenue Code of 1986.''
Treatment of Individuals Having Beginning Date Affected by Pub. L. 99-
514
Section 1852(a)(4)(C) of Pub. L. 99-514, as added by Pub. L. 100-
647, title I, Sec. 1018(t)(3)(A), Nov. 10, 1988, 102 Stat. 3588,
provided that: ``An individual whose required beginning date would, but
for the amendment made by subparagraph (A) [amending this section],
occur after December 31, 1986, but whose required beginning date after
such amendment occurs before January 1, 1987, shall be treated as if
such individual had become a 5-percent owner during the plan year ending
in 1986.''
Distribution Requirements for Accounts and Annuities of an Insurer in a
Rehabilitation Proceeding
Section 553 of Pub. L. 98-369, as amended by Pub. L. 99-514, Sec. 2,
Oct. 22, 1986, 100 Stat. 2095, provided that:
``(a) In General.--For purposes of sections 401(a)(9), 408(a)(6) and
(7), and 408(b)(3) and (4) of the Internal Revenue Code of 1986
[formerly I.R.C. 1954]--
``(1) a trust, custodial account, or annuity or other contract
forming part of a pension or profit-sharing plan, or a retirement
annuity, or
``(2) a grantor of an individual retirement account or an
individual retirement annuity,
shall not be treated as failing to meet the requirements of such
sections if such account, annuity, or contract was issued by an
insurance company which, on March 15, 1984, was a party to a
rehabilitation proceeding under the applicable State insurance law.
``(b) Limitation.--Subsection (a) shall apply only during the period
during which--
``(1) the insurance company continues to be a party to the
proceeding described in subsection (a), and
``(2) distributions under the trust, custodial account, or
annuity or other contract may not be made by reason of such
proceeding.''
Qualification Requirements Modified if Regulations Not Issued
Section 524(e) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
``(1) In general.--If the Secretary of the Treasury or his delegate
does not publish final regulations under section 416 of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954] (as in effect on the day
before the date of the enactment of this Act [July 18, 1984]) before
January 1, 1985, the Secretary shall publish before such date plan
amendment provisions which may be incorporated in a plan to meet the
requirements of section 401(a)(10)(B)(ii) of such Code.
``(2) Effect of incorporation.--If a plan is amended to incorporate
the plan amendment provisions described in paragraph (1), such plan
shall be treated as meeting the requirements of section
401(a)(10)(B)(ii) of the Internal Revenue Code of 1986 during the period
such amendment is in effect but not later than 6 months after the final
regulations described in paragraph (1) are published.
``(3) Failure by secretary to publish.--If the Secretary of the
Treasury or his delegate does not publish plan amendment provisions
described in paragraph (1), the plan shall be treated as meeting the
requirements of section 401(a)(10)(B) of the Internal Revenue Code of
1986 if--
``(A) such plan is amended to incorporate such requirements by
reference, except that
``(B) in the case of any optional requirement under section 416
of such Code, if such amendment does not specify the manner in which
such requirement will be met, the employer shall be treated as
having elected the requirement with respect to each employee which
provides the maximum vested accrued benefit for such employee.''
Transitional Rule
Section 135(c)(2) of Pub. L. 95-600, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``In the case of
cash or deferred arrangements in existence on June 27, 1974--
``(A) the qualification of the plan and the trust under section
401 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954];
``(B) the exemption of the trust under section 501(a) of such
Code;
``(C) the taxable year of inclusion in gross income of the
employee of any amount so contributed by the employer to the trust;
and
``(D) the excludability of the interest of the employee in the
trust under sections 2039 and 2517 of such Code,
shall be determined for plan years beginning before January 1, 1980 in a
manner consistent with Revenue Ruling 56-497 (1956-2 C.B. 284), Revenue
Ruling 63-180 (1963-2 C.B. 189), and Revenue Ruling 68-89 (1968-1 C.B.
402).''
Salary Reduction Regulations
Section 2006 of Pub. L. 93-406, as amended by Pub. L. 94-455, title
XV, Sec. 1506, Oct. 4, 1976, 90 Stat. 1739; Pub. L. 95-615, Sec. 5, Nov.
8, 1978, 92 Stat. 3097; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.
2095, provided that:
``(a) Inclusion of Certain Contributions in Income.--Except in the
case of plans or arrangements in existence on June 27, 1974, a
contribution made before January 1, 1980, to an employees' trust
described in section 401(a), 403(a) or 405(a) of the Internal Revenue
Code of 1986 [formerly I.R.C. 1954] which is exempt from tax under
section 501(a) of such Code, or under an arrangement which, but for the
fact that it was not in existence on June 27, 1974, would be an
arrangement described in subsection (b)(2) of this section, shall be
treated as a contribution made by an employee if the contribution is
made under an arrangement under which the contribution will be made only
if the employee elects to receive a reduction in his compensation or to
forego an increase in his compensation.
``(b) Administration in the Case of Certain Qualified Pension or
Profit-Sharing Plans, Etc., in Existence on June 27, 1974.--No salary
reduction regulations may be issued by the Secretary of the Treasury in
final form before January 1, 1980, with respect to an arrangement which
was in existence on June 27, 1974, and which, on that date--
``(1) provided for contributions to an employee's trust
described in section 401(a), 403(a), or 405(a) of the Internal
Revenue Code of 1986 [subsec. (a) of this section, section 403(a) of
this title, or section 405(a) of this title] which is exempt from
tax under section 501(a) of such Code [section 501(a) of this
title], or
``(2) was maintained as part of an arrangement under which an
employee was permitted to elect to receive part of his compensation
in one or more alternative forms if one of such forms results in the
inclusion of amounts in income under the Internal Revenue Code of
1986 [this title].
``(c) Administration of Law With Respect to Certain Plans.--
``(1) Administration in the case of plans described in
subsection (b).--Until salary reduction regulations have been issued
in final form, the law with respect to plans or arrangements
described in subsection (b) shall be administered--
``(A) without regard to the proposed salary reduction
regulations (37 FR 25938) and without regard to any other
proposed salary reduction regulations, and
``(B) in the manner in which such law was administered
before January 1, 1972.
``(2) Administration in the case of qualified profit-sharing
plans.--In the case of plans or arrangements described in subsection
(b), in applying this section to the tax treatment of contributions
to qualified profit-sharing plans where the contributed amounts are
distributable only after a period of deferral, the law shall be
administered in a manner consistent with--
``(A) Revenue Ruling 56-497 (1956--2 C.B. 284),
``(B) Revenue Ruling 63-180 (1963--2 C.B. 189), and
``(C) Revenue Ruling 68-89 (1968--1 C.B. 402).
``(d) Limitation on Retroactivity of Final Regulations.--In the case
of any salary reduction regulations which become final after December
31, 1979--
``(1) for purposes of chapter 1 of the Internal Revenue Code of
1986 (relating to normal taxes and surtaxes), such regulations shall
not apply before January 1, 1980; and
``(2) for purposes of chapter 21 of such Code (relating to
Federal Insurance Contributions Act) and for purposes of chapter 24
of such Code (relating to collection of income tax at source on
wages), such regulations shall not apply before the day on which
such regulations are issued in final form.
``(e) Salary Reduction Regulations Defined.--For purpose of this
section, the term `salary reduction regulations' means regulations
dealing with the includibility in gross income (at the time of
contribution) of amounts contributed to a plan which includes a trust
that qualifies under section 401(a) [subsec. (a) of this section], or a
plan described in section 403(a) or 405(a), including plans or
arrangements described in subsection (b)(2), if the contribution is made
under an arrangement under which the contribution will be made only if
the employee elects to receive a reduction in his compensation or to
forego an increase in his compensation, or under an arrangement under
which the employee is permitted to elect to receive part of his
compensation in one or more alternative forms (if one of such forms
results in the inclusion of amounts in income under the Internal Revenue
Code of 1986).''
Pub. L. 95-615, Sec. 210(b), Nov. 8, 1978, 92 Stat. 3109, provided
that: ``Section 5 of this Act [amending this note] shall not apply with
respect to any type of plan for any period for which rules for that type
of plan are provided by the Revenue Act of 1978 [see Short Title note
set out under section 1 of this title].''
Section Referred to in Other Sections
This section is referred to in sections 25B, 41, 62, 72, 83, 101,
104, 105, 120, 125, 127, 129, 132, 162, 172, 219, 220, 280G, 318, 402,
402A, 403, 404, 404A, 406, 407, 408, 408A, 409, 410, 411, 412, 413, 414,
415, 416, 417, 420, 447, 448, 457, 501, 503, 505, 511, 513, 514, 542,
664, 818, 856, 871, 1042, 1361, 1563, 2503, 3121, 3306, 3401, 3405,
3508, 4941, 4972, 4974, 4975, 4978, 4979, 4980, 4980B, 4982, 6033, 6043,
6047, 6058, 6072, 6104, 6324, 7476, 7701 of this title; title 4 section
114; title 5 sections 8432, 8440; title 11 section 522; title 12
sections 1464, 1786, 1787, 1821, 1828, 1831f, 2277a-10b, 4502; title 15
sections 77c, 78c, 78l, 80a-3, 636; title 19 section 2345; title 28
section 3010; title 29 sections 623, 1002, 1053, 1082, 1103, 1104, 1107,
1108, 1132, 1167, 1301, 1321, 1322, 1344; title 42 sections 300bb-8,
409; title 45 sections 702, 726, 1347.