Title 26 — Internal Revenue Code

Part I · Chapter 1 — Normal Taxes and Surtaxes

§ 403. Taxation of employee annuities

Statutory text

Taxability of beneficiary under a qualified annuity plan

Distributee taxable under section 72

If an annuity contract is purchased by an employer for an employee under a plan which meets the requirements of section 404(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section), the amount actually distributed to any distributee under the contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities).

Special rule for health and long-term care insurance

To the extent provided in section 402(l), paragraph (1) shall not apply to the amount distributed under the contract which is otherwise includible in gross income under this subsection.

Self-employed individuals

For purposes of this subsection, the term “employee” includes an individual who is an employee within the meaning of section 401(c)(1), and the employer of such individual is the person treated as his employer under section 401(c)(4).

Rollover amounts

General rule

If—

any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in an eligible rollover distribution (within the meaning of section 402(c)(4)),

the employee transfers any portion of the property he receives in such distribution to an eligible retirement plan, and

in the case of a distribution of property other than money, the amount so transferred consists of the property distributed,

then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid.

Certain rules made applicable

The rules of paragraphs (2) through (7) and (11) and (9) of section 402(c) and section 402(f) shall apply for purposes of subparagraph (A).

Direct trustee-to-trustee transfer

Any amount transferred in a direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of such transfer.

Qualified long-term care distributions

An annuity contract shall not fail to be subject to this subsection solely by reason of allowing distributions to which section 401(a)(39) applies.

Taxability of beneficiary under annuity purchased by section 501(c)(3) organization or public school

General rule

If—

an annuity contract is purchased—

for an employee by an employer described in section 501(c)(3) which is exempt from tax under section 501(a),

for an employee (other than an employee described in clause (i)), who performs services for an educational organization described in section 170(b)(1) (A)(ii), by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing, or

for the minister described in section 414(e)(5)(A) by the minister or by an employer,

such annuity contract is not subject to subsection (a),

the employee’s rights under the contract are nonforfeitable, except for failure to pay future premiums,

except in the case of a contract purchased by a church, such contract is purchased under a plan which meets the nondiscrimination requirements of paragraph (12), and

in the case of a contract purchased under a salary reduction agreement, the contract meets the requirements of section 401(a)(30),

then contributions and other additions by such employer for such annuity contract shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such contributions and additions (when expressed as an annual addition (within the meaning of section 415(c)(2))) does not exceed the applicable limit under section 415. The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities). For purposes of applying the rules of this subsection to contributions and other additions by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or section 408(d)(3)(A)(ii) shall not be considered contributed by such employer.

Special rule for health and long-term care insurance

To the extent provided in section 402(l), paragraph (1) shall not apply to the amount distributed under the contract which is otherwise includible in gross income under this subsection.

Includible compensation

For purposes of this subsection, the term “includible compensation” means, in the case of any employee, the amount of compensation which is received from the employer described in paragraph (1)(A), and which is includible in gross income (computed without regard to section 911) for the most recent period (ending not later than the close of the taxable year) which under paragraph (4) may be counted as one year of service, and which precedes the taxable year by no more than five years. Such term does not include any amount contributed by the employer for any annuity contract to which this subsection applies. Such term includes—

any elective deferral (as defined in section 402(g)(3)), and

any amount which is contributed or deferred by the employer at the election of the employee and which is not includible in the gross income of the employee by reason of section 125, 132(f)(4), or 457.

Years of service

In determining the number of years of service for purposes of this subsection, there shall be included—

one year for each full year during which the individual was a full-time employee of the organization purchasing the annuity for him, and

a fraction of a year (determined in accordance with regulations prescribed by the Secretary) for each full year during which such individual was a part-time employee of such organization and for each part of a year during which such individual was a full-time or part-time employee of such organization.

In no case shall the number of years of service be less than one.

Application to more than one annuity contract

If for any taxable year of the employee this subsection applies to 2 or more annuity contracts purchased by the employer, such contracts shall be treated as one contract.

[(6) Repealed. Pub. L. 107–147, title IV, § 411(p)(2), Mar. 9, 2002, 116 Stat. 50]

Custodial accounts

Amounts paid treated as contributions

For purposes of this title, amounts paid by an employer described in paragraph (1)(A) to a custodial account which satisfies the requirements of section 401(f)(2) shall be treated as amounts contributed by him for an annuity contract for his employee if the amounts are to be held in that custodial account and are invested in regulated investment company stock or a group trust intended to satisfy the requirements of Internal Revenue Service Revenue Ruling 81–100 (or any successor guidance), and under the custodial account—

no such amounts may be paid or made available to any distributee (unless such amount is a distribution to which section 72(t)(2)(G) applies) before—

the employee dies,

the employee attains age 59½,

the employee has a severance from employment,

the employee becomes disabled (within the meaning of section 72(m)(7)),

subject to the provisions of paragraph (17), the employee encounters financial hardship,

except as may be otherwise provided by regulations, with respect to amounts invested in a lifetime income investment (as defined in section 401(a)(38)(B)(ii)), the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the contract, or

as provided for distributions to which section 401(a)(39) applies, and

in the case of amounts described in clause (i)(VI), such amounts will be distributed only in the form of a qualified distribution (as defined in section 401(a)(38)(B)(i)) or a qualified plan distribution annuity contract (as defined in section 401(a)(38)(B)(iv)).

Account treated as plan

For purposes of this title, a custodial account which satisfies the requirements of section 401(f)(2) shall be treated as an organization described in section 401(a) solely for purposes of subchapter F and subtitle F with respect to amounts received by it (and income from investment thereof).

Regulated investment company

For purposes of this paragraph, the term “regulated investment company” means a domestic corporation which is a regulated investment company within the meaning of section 851(a).

Employee certification

In determining whether a distribution is upon the financial hardship of an employee, the administrator of the plan may rely on a written certification by the employee that the distribution is—

on account of a financial need of a type which is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need, and

not in excess of the amount required to satisfy such financial need, and

that the employee has no alternative means reasonably available to satisfy such financial need. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee’s certification, and for procedures for addressing cases of employee misrepresentation.

Rollover amounts

General rule

If—

any portion of the balance to the credit of an employee in an annuity contract described in paragraph (1) is paid to him in an eligible rollover distribution (within the meaning of section 402(c)(4)),

the employee transfers any portion of the property he receives in such distribution to an eligible retirement plan described in section 402(c)(8)(B), and

in the case of a distribution of property other than money, the property so transferred consists of the property distributed,

then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid.

Certain rules made applicable

The rules of paragraphs (2) through (7), (9), and (11) of section 402(c) and section 402(f) shall apply for purposes of subparagraph (A), except that section 402(f) shall be applied to the payor in lieu of the plan administrator.

Retirement income accounts provided by churches, etc.

Amounts paid treated as contributions

For purposes of this title—

a retirement income account shall be treated as an annuity contract described in this subsection, and

amounts paid by an employer described in paragraph (1)(A) to a retirement income account shall be treated as amounts contributed by the employer for an annuity contract for the employee on whose behalf such account is maintained.

Retirement income account

For purposes of this paragraph, the term “retirement income account” means a defined contribution program established or maintained by a church, or a convention or association of churches, including an organization described in section 414(e)(3)(A), to provide benefits under section 403(b) for an employee described in paragraph (1) (including an employee described in section 414(e)(3)(B)) or his beneficiaries.

Distribution requirements

Under regulations prescribed by the Secretary, this subsection shall not apply to any annuity contract (or to any custodial account described in paragraph (7) or retirement income account described in paragraph (9)) unless requirements similar to the requirements of sections 401(a)(9) and 401(a)(31) are met (and requirements similar to the incidental death benefit requirements of section 401(a) are met) with respect to such annuity contract (or custodial account or retirement income account). Any amount transferred in a direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of the transfer.

Requirement that distributions not begin before age 59½, severance from employment, death, or disability

This subsection shall not apply to any annuity contract unless under such contract distributions attributable to contributions made pursuant to a salary reduction agreement (within the meaning of section 402(g)(3)(C)) may be paid only—

when the employee attains age 59½, has a severance from employment, dies, or becomes disabled (within the meaning of section 72(m)(7)),

subject to the provisions of paragraph (17), in the case of hardship,

for distributions to which section 72(t)(2)(G) applies,

except as may be otherwise provided by regulations, with respect to amounts invested in a lifetime income investment (as defined in section 401(a)(38)(B)(ii))—

on or after the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the contract, and

in the form of a qualified distribution (as defined in section 401(a)(38)(B)(i)) or a qualified plan distribution annuity contract (as defined in section 401(a)(38)(B)(iv)), or

for distributions to which section 401(a)(39) applies.

In determining whether a distribution is upon hardship of an employee, the administrator of the plan may rely on a written certification by the employee that the distribution is on account of a financial need of a type which is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and is not in excess of the amount required to satisfy such financial need, and that the employee has no alternative means reasonably available to satisfy such financial need. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee’s certification, and for procedures for addressing cases of employee misrepresentation.

Nondiscrimination requirements

In general

For purposes of paragraph (1)(D), a plan meets the nondiscrimination requirements of this paragraph if—

with respect to contributions not made pursuant to a salary reduction agreement, such plan meets the requirements of paragraphs (4), (5), (17), and (26) of section 401(a), section 401(m), and section 410(b) in the same manner as if such plan were described in section 401(a), and

all employees of the organization may elect to have the employer make contributions of more than $200 pursuant to a salary reduction agreement if any employee of the organization may elect to have the organization make contributions for such contracts pursuant to such agreement.

For purposes of clause (i), a contribution shall be treated as not made pursuant to a salary reduction agreement if under the agreement it is made pursuant to a 1-time irrevocable election made by the employee at the time of initial eligibility to participate in the agreement or is made pursuant to a similar arrangement involving a one-time irrevocable election specified in regulations. For purposes of clause (ii), there may be excluded any employee who is a participant in an eligible deferred compensation plan (within the meaning of section 457) or a qualified cash or deferred arrangement of the organization or another annuity contract described in this subsection. Any nonresident alien described in section 410(b)(3)(C) may also be excluded. Subject to the conditions applicable under section 410(b)(4) and section 202(c) of the Employee Retirement Income Security Act of 1974, there may be excluded for purposes of this subparagraph employees who are students performing services described in section 3121(b)(10) and employees who normally work less than 20 hours per week. The fact that the employer offers matching contributions on account of qualified student loan payments as described in section 401(m)(13) shall not be taken into account in determining whether the arrangement satisfies the requirements of clause (ii) (and any regulation thereunder). A plan shall not fail to satisfy clause (ii) solely by reason of offering a de minimis financial incentive (not derived from plan assets) to employees to elect to have the employer make contributions pursuant to a salary reduction agreement.

Church

For purposes of paragraph (1)(D), the term “church” has the meaning given to such term by section 3121(w)(3)(A). Such term shall include any qualified church-controlled organization (as defined in section 3121(w)(3)(B)).

State and local governmental plans

For purposes of paragraph (1)(D), the requirements of subparagraph (A)(i) (other than those relating to section 401(a)(17)) 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).

Rules relating to certain part-time employees

 1 In general

In the case of employees who are eligible to participate in the agreement solely by reason of section 202(c)(1)(B) of the Employee Retirement Income Security Act of 1974—

notwithstanding section 401(a)(4), an employer shall not be required to make nonelective or matching contributions on behalf of such employees even if such contributions are made on behalf of other employees eligible to participate in the plan, and

the employer may elect to exclude such employees from the application of subsections (a)(4), (k)(3), (k)(12), (k)(13), and (m)(2) of section 401 and section 410(b).

Trustee-to-trustee transfers to purchase permissive service credit

No amount shall be includible in gross income by reason of a direct trustee-to-trustee transfer to a defined benefit governmental plan (as defined in section 414(d)) if such transfer is—

for the purchase of permissive service credit (as defined in section 415(n)(3)(A)) under such plan, or

a repayment to which section 415 does not apply by reason of subsection (k)(3) thereof.

Death benefits under USERRA-qualified active military service

This subsection shall not apply to an annuity contract unless such contract meets the requirements of section 401(a)(37).

Multiple employer plans

In general

Except in the case of a church plan, this subsection shall not be treated as failing to apply to an annuity contract solely by reason of such contract being purchased under a plan maintained by more than 1 employer.

Treatment of employers failing to meet requirements of plan

In general

In the case of a plan maintained by more than 1 employer, this subsection shall not be treated as failing to apply to an annuity contract held under such plan merely because of one or more employers failing to meet the requirements of this subsection if such plan satisfies rules similar to the rules of section 413(e)(2) with respect to any such employer failure.

Additional requirements in case of non-governmental plans

A plan shall not be treated as meeting the requirements of this subparagraph unless the plan satisfies rules similar to the rules of subparagraph (A) or (B) of section 413(e)(1), except in the case of a multiple employer plan maintained solely by any of the following: A State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing.

Safe harbor deferral-only plans for employers with no retirement plan

In general

A safe harbor deferral-only plan maintained by an eligible employer shall be treated as meeting the requirements of paragraph (12).

Safe harbor deferral-only plan

For purposes of this paragraph, the term “safe harbor deferral-only plan” means any plan which meets—

the automatic deferral requirements of subparagraph (C),

the contribution limitations of subparagraph (D), and

the requirements of subparagraph (E) of section 401(k)(13).

Automatic deferral

In general

The requirements of this subparagraph are met if, under the plan, each eligible employee is treated as having elected to have the employer make elective contributions in an amount equal to a qualified percentage of compensation.

Election out

The election treated as having been made under clause (i) shall cease to apply with respect to any eligible employee if such eligible employee makes an affirmative election—

to not have such contributions made, or

to make elective contributions at a level specified in such affirmative election.

Qualified percentage

For purposes of this subparagraph, the term “qualified percentage” means, with respect to any employee, any percentage determined under the plan if such percentage is applied uniformly and is not less than 3 or more than 15 percent.

Contribution limitations

In general

The requirements of this subparagraph are met if, under the plan—

the only contributions which may be made are elective contributions of eligible employees, and

the aggregate amount of such elective contributions which may be made with respect to any employee for any calendar year shall not exceed $6,000.

Cost-of-living adjustment

In the case of any calendar year beginning after December 31, 2024, the $6,000 amount under clause (i) shall be adjusted in the same manner as under section 402(g)(4), except that “2023” shall be substituted for “2005”.

Catch-up contributions for individuals age 50 or over

In the case of an individual who has attained the age of 50 before the close of the taxable year, the limitation under clause (i)(II) shall be increased by the applicable amount determined under section 219(b)(5)(B)(ii) (after the application of section 219(b)(5)(C)(iii)).

Eligible employer

For purposes of this paragraph—

In general

The term “eligible employer” means any employer if the employer does not maintain a qualified plan with respect to which contributions are made, or benefits are accrued, for service in the year for which the determination is being made. If only individuals other than employees described in subparagraph (A) of section 410(b)(3) are eligible to participate in such arrangement, then the preceding sentence shall be applied without regard to any qualified plan in which only employees described in such subparagraph are eligible to participate.

Relief for acquisitions, etc.

Rules similar to the rules of section 408(p)(10) shall apply for purposes of clause (i).

Qualified plan

The term “qualified plan” means a plan, contract, pension, account, or trust described in subparagraph (A) or (B) of paragraph (5) of section 219(g) (determined without regard to the last sentence of such paragraph (5)).

Eligible employee

For purposes of this paragraph, the term “eligible employee” means any employee of the employer other than an employee who is permitted to be excluded under paragraph (12)(A).

Special rules relating to hardship withdrawals

For purposes of paragraphs (7) and (11)—

Amounts which may be withdrawn

The following amounts may be distributed upon hardship of the employee:

Contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)).

Qualified nonelective contributions (as defined in section 401(m)(4)(C)).

Qualified matching contributions described in section 401(k)(3)(D)(ii)(I).

Earnings on any contributions described in clause (i), (ii), or (iii).

No requirement to take available loan

A distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan.

Taxability of beneficiary under nonqualified annuities or under annuities purchased by exempt organizations

Premiums paid by an employer for an annuity contract which is not subject to subsection (a) shall be included in the gross income of the employee in accordance with section 83 (relating to property transferred in connection with performance of services), except that the value of such contract shall be substituted for the fair market value of the property for purposes of applying such section. The preceding sentence shall not apply to that portion of the premiums paid which is excluded from gross income under subsection (b). In the case of any portion of any contract which is attributable to premiums to which this subsection applies, the amount actually paid or made available under such contract to any beneficiary which is attributable to such premiums shall be taxable to the beneficiary (in the year in which so paid or made available) under section 72 (relating to annuities).

Footnotes

1 So in original. No cl. (ii) has been enacted.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1954
Aug. 16, 1954, ch. 736, 68A Stat. 137 · 68A Stat. 137
Enacted · 26 U.S.C. § 403
Aug. 16, 1954, ch. 736, 68A Stat. 137
Source evidence
Code source credit
Aug. 16, 1954, ch. 736, 68A Stat. 137
1958
Technical Amendments Act of 1958
Pub. L. 85–866 § 23(b) · 72 Stat. 1606
Substituted · 26 U.S.C. § 403(a)(1)
Pub. L. 85–866, § 23(b), substituted “which meets the requirements of section 404(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section),” for “with respect to which the employer’s contribution is deductible under section 404(a)(2), or if an annuity contract is purchased for an employee by an employer described in section 501(c)(3) which is exempt from tax under section 501(a),”
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 85–866, § 23(b), substituted “which meets the requirements of section 404(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section),” for “with respect to which the employer’s contribution is deductible under section 404(a)(2), or if an annuity contract is purchased for an employee by an employer described in section 501(c)(3) which is exempt from tax under section 501(a),”.
Enacted provision · exact public law section
(b) Qualified Plans.— Section 403 (a) (1) (relating to taxability of beneficiary under a qualified annuity plan) is amended to read as follows: “(1) General rule.— Except as provided in paragraph (2),if an annuity contract is purchased by an employer for an employee under a plan which meets the requirements of section 404 (a) (2) (whether or not the employer deducts the amounts paid for the contract under such section), the employee shall include in his gross income the amounts received under such contract for the year received as provided in section 72 (relating to annuities) 26 USC 72. except that section 72 (e) (3) shall not apply.”
1958
Technical Amendments Act of 1958
Pub. L. 85–866 § 23(a) · 72 Stat. 1606
1. Added · 26 U.S.C. § 403(b)(d)
  Pub. L. 85–866, § 23(a), added subsec. (b)
2. Redesignated · 26 U.S.C. § 403(b)(d)
  Pub. L. 85–866, § 23(a), redesignated former subsec. (b) as (c)
3. Added · 26 U.S.C. § 403(b)(d)
  Pub. L. 85–866, § 23(a), added subsec. (d)
Source evidence
Code amendment note
Subsecs. (b) to (d). Pub. L. 85–866, § 23(a), added subsec. (b), redesignated former subsec. (b) as (c), and added subsec. (d).
Enacted provision · exact public law section
(a) Annuity Contracts Purchased by Certain Tax-Exempt Organizations.— Section 403 (relating to taxation of employee annuities) is amended by redesignating subsection (b) as subsection (c), and by inserting after subsection (a) the following new subsection: “(b) Taxability of Beneficiary Under Annuity Purchased by Section 501 (c) (3) Organization.— “(1) General rule.— If— “(A) an annuity contract is purchased for an employee 26 USC 501. by an employer described in section 501 (c) (3) which is exempt from tax under section 501 (a), “(B) such annuity contract is not subject to subsection (a), and “(C) the employee’s rights under the contract are nonforfeitable, except for failure to pay future premiums, then amounts contributed by such employer for such annuity contract on or after such rights become nonforfeitable shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such amounts does not exceed the exclusion allowance for such taxable year. The employee shall include in his gross income the amounts received under such contract for the year received as provided in section 72 (relating to annuities) except that section 72 (e) (3) shall not 26 USC 72. apply. “(2) Exclusion allowance.— For purposes of this subsection, the exclusion allowance for any employee for the taxable year is an amount equal to the excess, if any, of— “(A) the amount determined by multiplying (i) 20percent of his includible compensation, by (ii) the number of years of service, over “(B) the aggregate of the amounts contributed by the employer for annuity contracts and excludable from the gross income of the employee for any prior taxable year. “(3) Includible compensation.— For purposes of this subsection, the term ‘includible compensation’ means, in the case of any employee, the amount of compensation which is received from the employer described in section 501 (c) (3) and exempt from 26 USC 501. tax under section 501 (a), and which is includible in gross income (computed without regard to sections 105 (d) and 911) for the 26 USC 105, 911. most recent period (ending not later than the close of the taxable year) which under paragraph (4) may be counted as one year of service. Such term does not include any amount contributed by the employer for any annuity contract to which this subsection applies. “(4) Years of service.— In determining the number of years of service for purposes of this subsection, there shall be included— “(A) one year for each full year during which the individual was a full-time employee of the organization purchasing the annuity for him, and “(B) a fraction of a year (determined in accordance with regulations prescribed by the Secretary or his delegate) for each full year during which such individual was a part-time employee of such organization and for each part of a year during which such individual was a full-time or part-time employee of such organization. In no case shall the number of years of service be less than one. “(5) Application to more than one annuity contract.— If for any taxable year of the employee this subsection applies to 2 or more annuity contracts purchased by the employer, such contracts shall be treated as one contract. “(6) Forfeitable rights which become nonforfeitable.— For purposes of this subsection and section 72 (f) (relating to special rules for computing employees’ contributions to annuity contracts), if rights of the employee under an annuity contract described in subparagraphs (A) and (B) of paragraph (1) change from forfeitable to nonforfeitable rights, then the amount (determined without regard to this subsection) includible in gross income by reason of such change shall be treated as an amount contributed by the employer for such annuity contract as of the time such rights become nonforfeitable.”
1961
Pub. L. 87–370 § 3(a)(3) · 75 Stat. 796
Inserted · 26 U.S.C. § 403(b)
Pub. L. 87–370, § 3(a)(3), inserted “or public school” in heading
Source evidence
Code amendment note
Subsec. (b). Pub. L. 87–370, § 3(a)(3), inserted “or public school” in heading.
Enacted provision · exact public law section
(3) by inserting before the period in the heading of such subsection the following: “or Public School”.
1961
Pub. L. 87–370 § 3(a)(1) · 75 Stat. 796
Changed · 26 U.S.C. § 403(b)(1)(A)
Pub. L. 87–370, § 3(a)(1), included annuity contracts purchased for an employee, other than one described in clause (i) of this subpar., who performs services for an educational institution, as defined in section 151(e)(4) of this title, by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of either
Source evidence
Code amendment note
Subsec. (b)(1)(A). Pub. L. 87–370, § 3(a)(1), included annuity contracts purchased for an employee, other than one described in clause (i) of this subpar., who performs services for an educational institution, as defined in section 151(e)(4) of this title, by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of either.
Enacted provision · exact public law section
(1) by striking out subparagraph (A) of paragraph (1) and inserting in lieu thereof the following: “(A) an annuity contract is purchased— “(i) for an employee by an employer described in section 501(c)(3) which is exempt from tax under section 501(a), or “(ii) for an employee (other than an employee described in clause (i)), who performs services for an educational institution (as defined in section 151(e)(4)), 26 USC 151. by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing,”;
1961
Pub. L. 87–370 § 3(a) · 75 Stat. 796
Substituted · 26 U.S.C. § 403(b)(3)
Pub. L. 87–370, § (3)(a)(2), substituted “the employer described in paragraph (1)(A)” for “the employer described in section 501(c)(3) and exempt from tax under section 501(a)”
Source evidence
Code amendment note
Subsec. (b)(3). Pub. L. 87–370, § (3)(a)(2), substituted “the employer described in paragraph (1)(A)” for “the employer described in section 501(c)(3) and exempt from tax under section 501(a)”.
Enacted provision · exact public law section
(a) Section 403(b) of the Internal Revenue Code of 1954 26 USC 403. (relating to taxability of beneficiaries under annuities purchased by section 501(c)(3) organizations) is amended— 68A Stat. 163. (1) by striking out subparagraph (A) of paragraph (1) and inserting in lieu thereof the following: “(A) an annuity contract is purchased— “(i) for an employee by an employer described in section 501(c)(3) which is exempt from tax under section 501(a), or “(ii) for an employee (other than an employee described in clause (i)), who performs services for an educational institution (as defined in section 151(e)(4)), 26 USC 151. by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing,”; (2) by striking out “the employer described in section 501(c)(3) and exempt from tax under section 501(a),” in paragraph (3) and inserting in lieu thereof the following: “the employer described in paragraph (1)(A),”; and (3) by inserting before the period in the heading of such subsection the following: “or Public School”.
1962
Self-Employed Individuals Tax Retirement Act of 1962
Pub. L. 87–792 § 4(d)(1) · 76 Stat. 809
1. Substituted · 26 U.S.C. § 403(a)(2)(A)
  Pub. L. 87–792, § 4(d)(1), (2), substituted “described in paragraph (1)” for “which meets the requirements of section 401(a)(3), (4), (5), and (6)” in cl. (i)
2. Inserted · 26 U.S.C. § 403(a)(2)(A)
  Pub. L. 87–792, § 4(d)(1), (2), inserted sentence at end thereof providing that this subparagraph shall not apply to amounts paid to any payee to the extent such amounts are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section 401(c)(1)
Source evidence
Code amendment note
Subsec. (a)(2)(A). Pub. L. 87–792, § 4(d)(1), (2), substituted “described in paragraph (1)” for “which meets the requirements of section 401(a)(3), (4), (5), and (6)” in cl. (i), and inserted sentence at end thereof providing that this subparagraph shall not apply to amounts paid to any payee to the extent such amounts are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section 401(c)(1).
Enacted provision · exact public law section
(1) by striking out in paragraph (2)(A)(i) “which meets the requirements of section 401(a)(3), (4), (5), and (6)” and inserting in lieu thereof “described in paragraph (1)”;
1962
Self-Employed Individuals Tax Retirement Act of 1962
Pub. L. 87–792 § 4(d)(3) · 76 Stat. 809
Added · 26 U.S.C. § 403(a)(3)
Pub. L. 87–792, § 4(d)(3), added par. (3)
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 87–792, § 4(d)(3), added par. (3).
Enacted provision · exact public law section
(3) by adding after paragraph (2) the following new paragraph: “(3) Self-employed individuals.— For purposes of this subsection, the term ‘employee’ includes an individual who is an employee within the meaning of section 401(c)(1), and the employer of such individual is the person treated as his employer under section 401(c)(4).”
1964
Revenue Act of 1964
Pub. L. 88–272 § 232(e)(4) · 78 Stat. 19
Struck · 26 U.S.C. § 403(a)(1); 26 U.S.C. § 403(b)(1); 26 U.S.C. § 403(a)(c)
Pub. L. 88–272, § 232(e)(4)–(6), struck out “except that section 72(e)(3) shall not apply” after “(relating to annuities)”
Source evidence
Code amendment note
Subsecs. (a)(1), (b)(1), (c). Pub. L. 88–272, § 232(e)(4)–(6), struck out “except that section 72(e)(3) shall not apply” after “(relating to annuities)”.
Enacted provision · exact public law section
(4) Section 403(a)(1) (relating to the general rule for taxability 26 USC 403. of a beneficiary under a qualified annuity plan).
1969
Tax Reform Act of 1969
Pub. L. 91–172 § 515(a)(2) · 83 Stat. 487
Added · 26 U.S.C. § 403(a)(2)(C)
Pub. L. 91–172, § 515(a)(2), added subpar. (C)
Source evidence
Code amendment note
Subsec. (a)(2)(C). Pub. L. 91–172, § 515(a)(2), added subpar. (C).
Enacted provision · exact public law section
(2) Employee annuities.— Section 403(a)(2) (relating to capital gains treatment for certain distributions under a qualified annuity plan) is amended by adding at the end thereof the following new subparagraph: “(C) Limitation on capital gains treatment.— Subparagraph (A) shall apply to a payment paid after December 31, 1969, only to the extent it does not exceed the sum of— “(i) the benefits accrued by the employee on behalf of whom it is paid during plan years beginning before January 1, 1970, and “(ii) the portion of the benefits accrued by such employee during plan years beginning after December 31, 1969, which the payee establishes does not consist of the employee’s allocable share of employer contributions under the plan under which the annuity contract is purchased. The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this subparagraph.”
1969
Tax Reform Act of 1969
Pub. L. 91–172 § 321(b)(2) · 83 Stat. 487
Substituted · 26 U.S.C. § 403(c)
Pub. L. 91–172, § 321(b)(2), consolidated provisions of subsec. (c) providing for taxability of beneficiary under a nonqualified annuity, the employees gross income to include amount contributed by employer for annuity contract in the year in which amount is contributed, the amount to be included as provided in section 72 of this title and of subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, the gross income to include amount contributed by employer after Dec. 31, 1957, in the year of change from forfeitable to nonforfeitable rights, the new provisions including premiums paid by an employer in accordance with section 83, except that value of the contract shall be substituted for fair market value of the property for purposes of applying such section 83, such provision not to be applicable to that portion of premiums paid which is excluded from gross income under subsec. (b) of this section
Source evidence
Code amendment note
Subsec. (c). Pub. L. 91–172, § 321(b)(2), consolidated provisions of subsec. (c) providing for taxability of beneficiary under a nonqualified annuity, the employees gross income to include amount contributed by employer for annuity contract in the year in which amount is contributed, the amount to be included as provided in section 72 of this title and of subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, the gross income to include amount contributed by employer after Dec. 31, 1957, in the year of change from forfeitable to nonforfeitable rights, the new provisions including premiums paid by an employer in accordance with section 83, except that value of the contract shall be substituted for fair market value of the property for purposes of applying such section 83, such provision not to be applicable to that portion of premiums paid which is excluded from gross income under subsec. (b) of this section.
Enacted provision · exact public law section
(2) Beneficiary under nonqualified annuity.— Section 403 68A Stat. 137; 72 Stat. 1620, 1622. (relating to taxation of employee annuities) is amended by striking out subsections (c) and (d) and inserting in lieu thereof the following new subsection: “(c) Taxability of Beneficiary Under Nonqualified Annuities or Under Annuities Purchased by Exempt Organizations.— Premiums paid by an employer for an annuity contract which is not subject to subsection (a) shall be included in the gross income of the employee in accordance with section 83 (relating to property transferred in connection with performance of services), except that the value of such contract shall be substituted for the fair market value of the property for purposes of applying such section. The preceding sentence shall not apply to that portion of the premiums paid which is excluded from gross income under subsection (b). The amount actually paid or made available to any beneficiary under such contract shall be taxable to him in the year in which so paid or made available under section 72 (relating to annuities).”
1969
Tax Reform Act of 1969
Pub. L. 91–172 § 321(b)(2) · 83 Stat. 487
Struck · 26 U.S.C. § 403(d)
Pub. L. 91–172, § 321(b)(2), struck out subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, gross income of the employee to include (amount contributed by employer after Dec. 31, 1957), in year of change from forfeitable to nonforfeitable rights. See subsec. (c) of this section
Source evidence
Code amendment note
Subsec. (d). Pub. L. 91–172, § 321(b)(2), struck out subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, gross income of the employee to include (amount contributed by employer after Dec. 31, 1957), in year of change from forfeitable to nonforfeitable rights. See subsec. (c) of this section.
Enacted provision · exact public law section
(2) Beneficiary under nonqualified annuity.— Section 403 68A Stat. 137; 72 Stat. 1620, 1622. (relating to taxation of employee annuities) is amended by striking out subsections (c) and (d) and inserting in lieu thereof the following new subsection: “(c) Taxability of Beneficiary Under Nonqualified Annuities or Under Annuities Purchased by Exempt Organizations.— Premiums paid by an employer for an annuity contract which is not subject to subsection (a) shall be included in the gross income of the employee in accordance with section 83 (relating to property transferred in connection with performance of services), except that the value of such contract shall be substituted for the fair market value of the property for purposes of applying such section. The preceding sentence shall not apply to that portion of the premiums paid which is excluded from gross income under subsection (b). The amount actually paid or made available to any beneficiary under such contract shall be taxable to him in the year in which so paid or made available under section 72 (relating to annuities).”
1974
Employee Retirement Income Security Act of 1974
Pub. L. 93–406 § 2005(b)(2) · 88 Stat. 829
1. Substituted · 26 U.S.C. § 403(a)(2)
  Pub. L. 93–406, § 2005(b)(2), substituted “a lump sum distribution (as defined in section 4002(e)(4)(A)) is paid to the recipient” for “the total amounts payable by reason of an employee’s death or other separation from the service, or by reason of the death of an employee after the employee’s separation from the service, are paid to the payee within one taxable year of the payee” as cl. (iii) of subpar. (A)
2. Substituted · 26 U.S.C. § 403(a)(2)
  Pub. L. 93–406, § 2005(b)(2), substituted “so much of the total taxable amount (as defined in section 402(e)(4)(D)) of such distribution as is equal to the product of such total taxable amount multiplied by the fraction described in section 402(a)(2) shall be treated as a gain from the sale or exchange of a capital asset held for more than 6 months. For purposes of this paragraph, in the case of an individual who is an employee without regard to section 401(c)(1), determination of whether or not any distribution is a lump sum distribution shall be made without regard to the requirement that an election be made under subsection (e)(4)(B) of section 402, but no distribution to any taxpayer other than an individual, estate, or trust may be treated as a lump sum distribution under this paragraph” for “then the amount of such payments, to the extent exceeding the amount contributed by the employee (determined by applying section 72(f)), which employee contributions shall be reduced by any amounts theretofore paid to him which were not includible in gross income, shall be considered a gain from the sale or exchange of a capital asset held for more than 6 months. This subparagraph shall not apply to amounts paid to any payee to the extent such amounts are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section 401(c)(1)” following cl. (iii) of subpar. (A)
3. Substituted · 26 U.S.C. § 403(a)(2)
  Pub. L. 93–406, § 2005(b)(2), substituted provisions setting out a cross reference to section 402(e) for provisions defining “total amounts” as subpar. (B)
4. Struck · 26 U.S.C. § 403(a)(2)
  Pub. L. 93–406, § 2005(b)(2), struck out subpar. (C) setting out limitations on capital gains treatment
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 93–406, § 2005(b)(2), substituted “a lump sum distribution (as defined in section 4002(e)(4)(A)) is paid to the recipient” for “the total amounts payable by reason of an employee’s death or other separation from the service, or by reason of the death of an employee after the employee’s separation from the service, are paid to the payee within one taxable year of the payee” as cl. (iii) of subpar. (A), substituted “so much of the total taxable amount (as defined in section 402(e)(4)(D)) of such distribution as is equal to the product of such total taxable amount multiplied by the fraction described in section 402(a)(2) shall be treated as a gain from the sale or exchange of a capital asset held for more than 6 months. For purposes of this paragraph, in the case of an individual who is an employee without regard to section 401(c)(1), determination of whether or not any distribution is a lump sum distribution shall be made without regard to the requirement that an election be made under subsection (e)(4)(B) of section 402, but no distribution to any taxpayer other than an individual, estate, or trust may be treated as a lump sum distribution under this paragraph” for “then the amount of such payments, to the extent exceeding the amount contributed by the employee (determined by applying section 72(f)), which employee contributions shall be reduced by any amounts theretofore paid to him which were not includible in gross income, shall be considered a gain from the sale or exchange of a capital asset held for more than 6 months. This subparagraph shall not apply to amounts paid to any payee to the extent such amounts are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section 401(c)(1)” following cl. (iii) of subpar. (A), substituted provisions setting out a cross reference to section 402(e) for provisions defining “total amounts” as subpar. (B), and struck out subpar. (C) setting out limitations on capital gains treatment.
Enacted provision · exact public law section
(2) Amendment of section 403.— That part of paragraph (2) of section 403(a) which follows clause (ii) of subparagraph (A) 26 USC 403. thereof is amended to read as follows: “(iii) a lump sum distribution (as defined in section 402(e)(4)(A)) is paid to the recipient, Ante, p. 987. so much of the total taxable amount (as defined in section 402(e)(4)(D)) of such distribution as is equal to the product of such total taxable amount multiplied by the fraction described in section 402(a)(2) shall be treated as a gain from Ante, p. 990. the sale or exchange of a capital asset held for more than 6 months. For purposes of this paragraph, in the case of an individual who is an employee without regard to section 401(c)(1), determination of whether or not any distribution is a lump sum distribution shall be made without regard to the requirement that an election be made under subsection (e)(4)(B) of section 402, but no distribution to any taxpayer other than an individual, estate, or trust may be treated as a lump sum distribution under this paragraph. “(B) Cross reference.— “For imposition of separate tax on ordinary income portion of lump sum distribution, see section 402(e).”
1974
Employee Retirement Income Security Act of 1974
Pub. L. 93–406 § 2002(g)(6) · 88 Stat. 829
Added · 26 U.S.C. § 403(a)(4)
Pub. L. 93–406, § 2002(g)(6), added par. (4)
Source evidence
Code amendment note
Subsec. (a)(4). Pub. L. 93–406, § 2002(g)(6), added par. (4).
Enacted provision · exact public law section
(6) Section 403(a) (relating to taxation of employee annuities) is amended by adding after paragraph (3) the following new paragraph: “(4) Rollover amounts.— In the case of an employee annuity described in 403(a), if— “(A) the balance to the credit of an employee is paid to him in one or more distributions which constitute a lump sum distribution within the meaning of section 402(e)(4)(A) 26 USC 402. determined without reference to section 402(e)(4)(B), “(B) (i) the employee transfers all the property he receives in such distribution to an individual account described in section 408(a), an individual retirement annuity described in section 408(b) (other than an endowment contract), or a retirement bond described in section 409, on Ante, p. 964. or before the 60th day after the day on which he received such property to the extent the fair market value of such property exceeds the amount referred to in section 402(e)(4)(D)(i), or “(ii) the employee transfers all the property he receives in such distribution to an employees’ trust described in section 401(a) which is exempt from tax under section 501(a), or to an annuity plan described in subsection (a) on or before the 60th day after the day on which he received such property to the extent the fair market value of such property exceeds the amount referred to in section 402(e)(4)(D)(i), and “(C) the amount so transferred consists of the property distributed to the extent that the fair market value of such property does not exceed the amount required to be transferred pursuant to subparagraph (B), then such distribution is not includible in gross income for the year in which paid. For purposes of this title, a transfer described in subparagraph (B)(i) shall be treated as a rollover contribution described in section 408(d)(3). Subparagraph (B)(ii) does not apply in the case of a transfer to an employees’ trust, or annuity plan if any part of the lump sum distribution described in subparagraph (A) is attributable to an annuity plan under which the employee was an employee within the meaning of section 401(c)(1) at the time contributions were made on his behalf under the plan.”.
1974
Employee Retirement Income Security Act of 1974
Pub. L. 93–406 § 2004(c)(4) · 88 Stat. 829
1. Amended · 26 U.S.C. § 403(b)(2)
  Pub. L. 93–406, § 2004(c)(4), designated existing provisions as subpar. (A)
2. Added · 26 U.S.C. § 403(b)(2)
  Pub. L. 93–406, § 2004(c)(4), added subpar. (B)
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 93–406, § 2004(c)(4), designated existing provisions as subpar. (A) and added subpar. (B).
Enacted provision · exact public law section
(4) Section 403(b)(2) (relating to exclusion allowance) is 26 USC 403. amended to read as follows: “(2) Exclusion allowance.— “(A) In general.— For purposes of this subsection, the exclusion allowance for any employee for the taxable year is an amount equal to the excess, if any, of— “(i) the amount determined by multiplying 20 percent of his includible compensation by the number of years of service, over “(ii) the aggregate of the amounts contributed by the employer for annuity contracts and excludible from the gross income of the employee for any prior taxable year. “(B) Election to have allowance determined under section 415 rules.— In the case of an employee who makes an election under section 415(c)(4)(D) to have the provisions of section 415(c)(4)(C) (relating to special rule for section 408(b) contracts purchased by educational institutions, hospitals, and home health service agencies) apply, the exclusion allowance for any such employee for the taxable year is the amount which could be contributed (under section 415) by his employer under a plan described in section 408(a) if the annuity contract for the benefit of such employee were treated as a defined contribution plan maintained by the employer.”
1974
Employee Retirement Income Security Act of 1974
Pub. L. 93–406 § 1022(e) · 88 Stat. 829
Added · 26 U.S.C. § 403(b)(7)
Pub. L. 93–406, § 1022(e), added par. (7)
Source evidence
Code amendment note
Subsec. (b)(7). Pub. L. 93–406, § 1022(e), added par. (7).
Enacted provision · exact public law section
(e) Custodial Accounts for Regulated Investment Company Stock.— Effective as of January 1, 1974, section 408(b) (relating to 26 USC 403 and note. 26 USC 501. taxability of beneficiary under annuity purchased by section 501(c)(3) organization or public school) is amended by adding at the end thereof the following new paragraph: “(7) Custodial accounts for regulated investment company stock.— “(A) Amounts paid treated as contributions.— For purposes of this title, amounts paid by an employer described in paragraph (1)(A) to a custodial account which satisfies the requirements of section 401(f)(2) shall be treated as Ante, p. 939. amounts contributed by him for an annuity contract for his employee if the amounts are paid to provide a retirement benefit for that employee and are to be invested in regulated investment company stock to be held in that custodial account. “(B) Account treated as plan.— For purposes of this title, a custodial account which satisfies the requirements of section 401(f)(2) shall be treated as an organization described in section 401(a) solely for purposes of subchapter F and subtitle F with respect to amounts received by it (and income from investment thereof). “(C) Regulated investment company.— For purposes of this paragraph, the term ‘regulated investment company’ means a domestic corporation which is a regulated investment company within the meaning of section 851(a), and which 26 USC 851. issues only redeemable stock.”
1976
Pub. L. 94–267 § 1(b)(2) · 90 Stat. 365
Substituted · 26 U.S.C. § 403(a)(4)
Pub. L. 94–267, § 1(b)(2), substituted “a payment” for “the lump-sum distribution”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 94–267, § 1(b)(2), substituted “a payment” for “the lump-sum distribution”.
Enacted provision · exact public law section
(1) by striking out paragraph (5)(A) and inserting in lieu thereof the following: “(A) the balance to the credit of an employee is paid to him— “(i) within one taxable year of the employee 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, or “(ii) in one or more distributions which constitute a lump-sum distribution within the meaning of subsection (e)(4)(A) (determined without reference to subsection (e)(4)(B)),”.
1976
Pub. L. 94–267 § 1(b)(1) · 90 Stat. 365
1. Added · 26 U.S.C. § 403(a)(4)(A)
  Pub. L. 94–267, § 1(b)(1), restructured provisions by adding cl. (i)
2. Amended · 26 U.S.C. § 403(a)(4)(A)
  Pub. L. 94–267, § 1(b)(1), restructured provisions by designating existing provision as cl. (ii)
Source evidence
Code amendment note
Subsec. (a)(4)(A). Pub. L. 94–267, § 1(b)(1), restructured provisions by adding cl. (i) and designating existing provision as cl. (ii).
Enacted provision · exact public law section
(1) by striking out paragraph (5)(A) and inserting in lieu thereof the following: “(A) the balance to the credit of an employee is paid to him— “(i) within one taxable year of the employee 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, or “(ii) in one or more distributions which constitute a lump-sum distribution within the meaning of subsection (e)(4)(A) (determined without reference to subsection (e)(4)(B)),”.
1976
Pub. L. 94–267 § 1(b)(3) · 90 Stat. 365
Added · 26 U.S.C. § 403(a)(5)
Pub. L. 94–267, § 1(b)(3), added par. (5)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 94–267, § 1(b)(3), added par. (5).
Enacted provision · exact public law section
(1) by striking out paragraph (5)(A) and inserting in lieu thereof the following: “(A) the balance to the credit of an employee is paid to him— “(i) within one taxable year of the employee 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, or “(ii) in one or more distributions which constitute a lump-sum distribution within the meaning of subsection (e)(4)(A) (determined without reference to subsection (e)(4)(B)),”.
1976
Pub. L. 94–455 § 1402(b)(2) · 90 Stat. 1520
Changed · 26 U.S.C. § 403(a)(2)(A)
Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”
Source evidence
Code amendment note
Subsec. (a)(2)(A). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”.
Enacted provision · exact public law section
(2) Taxable years beginning after 1977.— Effective with respect to taxable years beginning after December 31, 1977, each provision referred to in paragraph (1) is amended by striking out Ante, p. 1731. “9 months” each place it appears and inserting in lieu thereof “1 year”.
1976
Pub. L. 94–455 § 1402(b) · 90 Stat. 1520
Changed · 26 U.S.C. § 403(a)(2)(A)
Pub. L. 94–455, § 1402(b) (1)(D), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 94–455, § 1402(b) (1)(D), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.
Enacted provision · exact public law section
(b) Conforming Amendments.— (1) Taxable years beginning in 1977.— Effective with respect to taxable years beginning in 1977, the following provisions are each amended by striking out “6 months” each place it appears and inserting in lieu thereof “9 months”: (A) Paragraph (1)(B) of section 166(d) (relating to non-business 26 USC 166. debts). (B) Subsection (a) of section 341 (relating to treatment 26 USC 341. of gain to shareholders in the case of collapsible corporations). (C) Paragraph (2) of subsection (a) of section 402 (relating 26 USC 402. to capital gains treatment for certain distributions in the case of a beneficiary of an exempt employees’ trust) and subparagraph (L) of paragraph (4) of section 402(e) (relating to election to treat pre–1974 participation as post–1973 participation) . (D) Subparagraph (A) of section 403(a)(2) (relating to 26 USC 403. capital gains treatment for certain distributions in the case of a beneficiary under a qualified annuity plan). (E) Paragraph (1) of section 423 (a) (relating to employee stock purchase plans). (F) Paragraph (1) of subsection (a) and paragraphs (1) and (2) of subsection (c) of section 424 (relating to restricted stock options). (G) Paragraph (2) of section 582(c) (relating to capital gains of banks). (H) Subparagraphs (A) and (B) of section 584(c)(1) (relating to inclusions in taxable income of participants in common trust funds). (I) Section 631 (relating to gain or loss in the case of timber, coal, or domestic iron ore). (J) Paragraphs (3) and (4) of section 642(c) (relating to charitable deductions for certain trusts). (K) Section 644 (relating to special holding period rules for gain on property transferred to trust at less than fair market value). (L) Paragraphs (1) and (2) of section 702(a) (relating to income and credits of partner). (M) Subparagraph (A) of section 817(a)(1) (relating to certain gains and losses in the case of life insurance companies). (N) Subparagraph (B) of paragraph (3) and paragraph (4), of section 852(h) (relating to taxation or shareholders of regulated investment companies). (O) Subparagraph (A) of section 856(c)(4) (relating to definition of real estate investment trust). (P) Subparagraph (B) of paragraph (3), and paragraph (5), of section 857(b) (relating to taxation of shareholders of real estate investment trusts). (Q) Paragraph (11) of section 1223 (relating to holding period of property). (R) Section 1231 (relating to property used in the trade or business and involuntary conversions). (S) Paragraph (2) of section 1232(a) (relating to sale or exchange in the case of bonds and other evidences of indebtedness). (T) Subsections (b), (d), and (e) of section 1233 (relating to gains and losses from short sales). (U) Paragraph (1) of section 1234(b) (relating to special rule for gain on lapse of an option granted as part of a straddle), as amended by this Act. (V) Subsection (a) of section 1235 (relating to sale or exchange of patents). (W) Paragraph (4) of section 1246(a) (relating to holding period in the case of gain on foreign investment company stock). (X) Subsection (i) of section 1247 (relating to loss on sale or exchange of certain stock in the case of foreign investment companies electing to distribute income currently). (Y) Subsection (b), and subparagraph (C) of subsection (f)(3), of section 1248 (relating to gain from certain sales or exchanges of stock in certain foreign corporations). (Z) Paragraph (1) of section 1251(e)(defining farm recapture property). (2) Taxable years beginning after 1977.— Effective with respect to taxable years beginning after December 31, 1977, each provision referred to in paragraph (1) is amended by striking out Ante, p. 1731. “9 months” each place it appears and inserting in lieu thereof “1 year”. (3) Technical amendment.— Effective with respect to taxable years beginning after December 31, 1976, section 631(a) (relating 26 USC 631. to gain or loss in the case of timber) is amended by striking out “before the beginning of such year”.
1976
Pub. L. 94–455 § 1901(a)(58) · 90 Stat. 1520
Changed · 26 U.S.C. § 403(a)(4)
Pub. L. 94–455, § 1901(a)(58), reenacted provisions following subpar. (C) without substantive change
Source evidence
Code amendment note
Subsec. (a)(4). Pub. L. 94–455, § 1901(a)(58), reenacted provisions following subpar. (C) without substantive change.
Enacted provision · exact public law section
(58) Amendment of section 403.— The last two sentences of section 403(a)(4) (relating to taxation of employee annuities) are amended to read as follows: “For purposes of this title, a transfer described in subparagraph (B)(1) shall be treated as a rollover contribution described in section 408(d)(3). Subparagraph (B)(ii) does not apply in the case of a transfer to an employees’ trust, or annuity plan if any part of a payment described in subparagraph (A) is attributable to an annuity plan under which the employee was an employee within the meaning of section 401(c)(1) at the time contributions were made on his behalf under the plan.”
1976
Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 403(a)(5)
Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing
Source evidence
Code amendment note
Subsec. (a)(5). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.
1976
Pub. L. 94–455 § 1901(b)(8)(A) · 90 Stat. 1520
Substituted · 26 U.S.C. § 403(b)(1)(A)(ii)
Pub. L. 94–455, § 1901(b)(8)(A), substituted “educational organization described in section 170(b)(1)(A)(ii)” for “educational institution (as defined in section 151(e)(4))”
Source evidence
Code amendment note
Subsec. (b)(1)(A)(ii). Pub. L. 94–455, § 1901(b)(8)(A), substituted “educational organization described in section 170(b)(1)(A)(ii)” for “educational institution (as defined in section 151(e)(4))”.
Enacted provision · exact public law section
(A) The following provisions are each amended by striking out “educational institution (as defined in section 151 Q(4))” each place it appears and inserting in lieu thereof educational organization described in section 170(b)(1)(A)(ii)”: sections 117(a)(1)(A), 117(b)(1), 117(b)(2), 152(d), 170(g)(1)(B)(as redesignated by subsection (a)(28) 26 USC 117, 152, 170, 403. (A)(i) of this section!, and 403(b)(1)(A)(ii).
1976
Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 403(b)(4)(B)
Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Subsec. (b)(4)(B). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.
1976
Pub. L. 94–455 § 1504(a) · 90 Stat. 1520
Struck · 26 U.S.C. § 403(b)(7)(C)
Pub. L. 94–455, § 1504(a), struck out “, and which issues only redeemable stock” after “regulated investment company within the meaning of section 851(a)”
Source evidence
Code amendment note
Subsec. (b)(7)(C). Pub. L. 94–455, § 1504(a), struck out “, and which issues only redeemable stock” after “regulated investment company within the meaning of section 851(a)”.
Enacted provision · exact public law section
(a) In General.— Paragraph (7) of section 403(b) (relating to custodial accounts for regulated investment company stock) is amended by striking out “, and which issues only redeemable stock” in subparagraph (C).
1978
Pub. L. 95–458 § 4(b) · 92 Stat. 1255
Substituted · 26 U.S.C. § 403(a)(4)
Pub. L. 95–458, among other changes, substituted provision permitting tax free treatment for any portion of a lump sum distribution from a qualified retirement plan which is deposited in an individual retirement account or another qualifying plan for provision which required transfer of all such property received
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 95–458, among other changes, substituted provision permitting tax free treatment for any portion of a lump sum distribution from a qualified retirement plan which is deposited in an individual retirement account or another qualifying plan for provision which required transfer of all such property received.
Enacted provision · exact public law section
(b) Partial Rollover of Annuity Contracts Permitted.— Subsection (a) of section 403 of such Code (relating to taxability of 26 USC 403. beneficiary under a qualified annuity plan) is amended by striking out paragraphs (4) and (5) and inserting in lieu thereof the following new paragraph: “(4) Rollover amounts.— “(A) General rule.—If— “(i) the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in a qualifying rollover distribution. “(ii) the employee transfers any portion of the property he receives in such distribution to an eligible retirement plan, and “(iii) in the case of a distribution of property other than money, the amount so transferred consists of the property distributed, then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid. “(B) Certain rules made applicable.— Rules similar to the rules of subparagraphs (B) through (E) of section 402 Ante, p. 1258. 26 USC 402. (a)(5) and of paragraph (6) of section 402(a) shall apply for purposes of subparagraph (A).”
1978
Pub. L. 95–458 § 4(b) · 92 Stat. 1255
Struck · 26 U.S.C. § 403(a)(5)
Pub. L. 95–458 struck out par. (5) which related to special rules concerning time of termination of a profit-sharing plan and the treatment of the sale of a corporate subsidiary or assets as payment or distribution on account of termination of a plan of which an annuity trust was a part
Source evidence
Code amendment note
Subsec. (a)(5). Pub. L. 95–458 struck out par. (5) which related to special rules concerning time of termination of a profit-sharing plan and the treatment of the sale of a corporate subsidiary or assets as payment or distribution on account of termination of a plan of which an annuity trust was a part.
Enacted provision · exact public law section
(b) Partial Rollover of Annuity Contracts Permitted.— Subsection (a) of section 403 of such Code (relating to taxability of 26 USC 403. beneficiary under a qualified annuity plan) is amended by striking out paragraphs (4) and (5) and inserting in lieu thereof the following new paragraph: “(4) Rollover amounts.— “(A) General rule.—If— “(i) the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in a qualifying rollover distribution. “(ii) the employee transfers any portion of the property he receives in such distribution to an eligible retirement plan, and “(iii) in the case of a distribution of property other than money, the amount so transferred consists of the property distributed, then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid. “(B) Certain rules made applicable.— Rules similar to the rules of subparagraphs (B) through (E) of section 402 Ante, p. 1258. 26 USC 402. (a)(5) and of paragraph (6) of section 402(a) shall apply for purposes of subparagraph (A).”
1978
Pub. L. 95–600 § 157(g)(2) · 92 Stat. 2763
Substituted · 26 U.S.C. § 403(a)(4)
Pub. L. 95–600, § 157(g)(2), in subpar. (B) substituted “paragraphs (6) and (7)” for “paragraph (6)”
Source evidence
Code amendment note
Subsec. (a)(4). Pub. L. 95–600, § 157(g)(2), in subpar. (B) substituted “paragraphs (6) and (7)” for “paragraph (6)”.
Enacted provision · exact public law section
(2) 26 USC 403. Rollover from qualified annuity plans.— Subparagraph (B) of section 403(a)(4), as amended by section 21(b), is amended by striking out “paragraph (6)” and inserting lieu thereof “paragraphs (6) and (7)”.
1978
Pub. L. 95–600 § 156(b) · 92 Stat. 2763
Inserted · 26 U.S.C. § 403(b)(1)
Pub. L. 95–600, § 156(b), inserted provision relating to application of rules of this subsection to amounts contributed by an employer for a taxable year
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 95–600, § 156(b), inserted provision relating to application of rules of this subsection to amounts contributed by an employer for a taxable year.
Enacted provision · exact public law section
(b) 26 USC 403. Treatment of Rollover Contributions.— Section 403(b)(1) (relating to annuities purchased by certain exempt organizations and public schools) is amended by adding at the end thereof the following new sentence: “For purposes of applying the rules of this subsection to amounts contributed by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or 26 USC 408, 409. section 408(d)(3)(A)(iii) or 409(d)(3)(C) shall not be considered contributed by such employer.”
1978
Pub. L. 95–600 § 154(a) · 92 Stat. 2763
1. Struck · 26 U.S.C. § 403(b)(7)(A)
  Pub. L. 95–600, § 154(a), struck out “the amounts are paid to provide a retirement benefit for that employee and are to be invested in regulated investment company stock to be held in that custodial account” after “contract for his employee if”
2. Added · 26 U.S.C. § 403(b)(7)(A)
  Pub. L. 95–600, § 154(a), added cls. (i) and (ii)
Source evidence
Code amendment note
Subsec. (b)(7)(A). Pub. L. 95–600, § 154(a), struck out “the amounts are paid to provide a retirement benefit for that employee and are to be invested in regulated investment company stock to be held in that custodial account” after “contract for his employee if”, and added cls. (i) and (ii).
Enacted provision · exact public law section
(a) Amendment of Section 403.— Subparagraph (A) of section 403(b)(7) (relating to custodial accounts for regulated investment 26 USC 403. company stock) is amended to read as follows: “(A) Amounts paid treated as contributions.— For purposes of this title, amounts paid by an employer described in paragraph (1)(A) to a custodial account which satisfied the requirements of section 401(f)(2) shall be treated as amounts 26 USC 401. contributed by him for an annuity contract for his employee if— “(i) the amounts are to be invested in regulated investment company stock to be held in that custodial account, and “(ii) under the custodial account no such amounts may be paid or made available to any distributee before the employee dies, attains age 59½, separates from service, becomes disabled (within the meaning of section 72(m)(7)), or encounters financial hardship.” 26 USC 72.
1978
Pub. L. 95–600 § 156(a) · 92 Stat. 2763
Added · 26 U.S.C. § 403(b)(8)
Pub. L. 95–600, § 156(a), added par. (8)
Source evidence
Code amendment note
Subsec. (b)(8). Pub. L. 95–600, § 156(a), added par. (8).
Enacted provision · exact public law section
(a) General Rule.— Subsection (b) of section 403 (relating to 26 USC 403. taxability of beneficiary under annuity purchased by section 501(c)(3) 26 USC 501. organization or public school) is amended by adding at the end thereof the following new paragraph: “(8) Rollover amounts.— “(A) General rule.— If— “(i) the balance to the credit of an employee is paid to him in a qualifying distribution, “(ii) the employee transfers any portion of the property he receives in such distribution to an individual retirement plan or to an annuity contract described in paragraph (1), and “(iii) in the case of a distribution of property other than money, the property so transferred consists of the property distributed, then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid. “(B) Qualifying distribution defined.— “(i) In general.— For purposes of subparagraph (A), the term ‘qualifying distribution’ means 1 or more distributions from an annuity contract described in paragraph (1) which would constitute a lump sum distribution 26 USC 402. within the meaning of section 402(e)(4)(A) (determined without regard to subparagraphs (B) and (H) of section 402(e)(4)) if such annuity contract were described in subsection (a). “(ii) Aggregation of annuity contracts.— For purposes of this paragraph, all annuity contracts described in paragraph (1) purchased by an employer shall be treated as a single contract, and section 402(e)(4)(C) shall not apply. “(C) Certain rules made applicable.— Rules similar to the rules of subparagraphs (B), (C), and (E)(i) of section 402(a)(5) and of paragraphs (6) and (7) of section 402(a) shall apply for purposes of subparagraph (A).”
1980
Technical Corrections Act of 1979
Pub. L. 96–222 title I § 101(a)(12) · 94 Stat. 194
1. Substituted · 26 U.S.C. § 403(b)
  Pub. L. 96–222 substituted in par. (1) “409(b)(3)(C)” for “409(d)(3)(C)”
2. Substituted · 26 U.S.C. § 403(b)
  Pub. L. 96–222 substituted in par. (1) “which satisfies” for “which satisfied”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 96–222 substituted in par. (1) “409(b)(3)(C)” for “409(d)(3)(C)”, and in par. (7)(A) “which satisfies” for “which satisfied”.
Enacted provision · exact public law section
(12) Amendment related to section 154 of the act.— Subparagraph (A) of section 403(b)(7) is amended by striking out “which satisfied” and inserting in lieu thereof “which satisfies”.
1981
Economic Recovery Tax Act of 1981
Pub. L. 97–34 title III § 311(b)(3)(B) · 95 Stat. 175
Inserted · 26 U.S.C. § 403(b)(8)(B)(i)
Pub. L. 97–34 inserted “, or 1 or more distributions of accumulated deductible employee contributions (within the meaning of section 72(o)(5))” after “subsection (a)”
Source evidence
Code amendment note
Subsec. (b)(8)(B)(i). Pub. L. 97–34 inserted “, or 1 or more distributions of accumulated deductible employee contributions (within the meaning of section 72(o)(5))” after “subsection (a)”.
Enacted provision · exact public law section
(B) Paragraph (8) of section 403(b) (relating to rollover amounts) is amended by inserting “, or 1 or more distributions of accumulated deductible employee contributions (within the meaning of section 72(o)(5))” after “subsection (a)” in subparagraph (B)(i).
1982
Pub. L. 97–248 § 251(a)(1) · 96 Stat. 324
1. Substituted · 26 U.S.C. § 403(b)(2)(B)
  Pub. L. 97–248, § 251(a)(1), (c)(3), substituted “home health service agencies, and certain churches, etc.” for “and home health service agencies”
2. Substituted · 26 U.S.C. § 403(b)(2)(B)
  Pub. L. 97–248, § 251(a)(1), (c)(3), substituted “(under section 415 without regard to section 415(c)(8))” for “(under section 415)”
Source evidence
Code amendment note
Subsec. (b)(2)(B). Pub. L. 97–248, § 251(a)(1), (c)(3), substituted “home health service agencies, and certain churches, etc.” for “and home health service agencies”, and “(under section 415 without regard to section 415(c)(8))” for “(under section 415)”.
Enacted provision · exact public law section
(1) Election to have section 415 rules apply.— Subparagraph (B) of section 403(b)(2) (relating to exclusion allowance) is 26 USC 403. amended by striking out “(under section 415)” and inserting in lieu thereof “(under section 415 without regard to section 415(c)(8))”.
1982
Pub. L. 97–248 § 251(a)(2) · 96 Stat. 324
Added · 26 U.S.C. § 403(b)(2)(C); 26 U.S.C. § 403(b)(2)(D)
Pub. L. 97–248, § 251(a)(2), added subpars. (C) and (D)
Source evidence
Code amendment note
Subsec. (b)(2)(C), (D). Pub. L. 97–248, § 251(a)(2), added subpars. (C) and (D).
Enacted provision · exact public law section
(2) Years of service.— Section 403(b)(2) is amended by adding at the end thereof the following new subparagraphs: “(C) Number of years of service for duly ordained, commissioned, or licensed ministers or lay employees.— For purposes of this subsection and section 415(c)(4)(A)— “(i) all years of service by— “(I) a duly ordained, commissioned, or licensed minister of a church, or “(II) a lay person, as an employee of a church, a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), shall be considered as years of service for 1 employer, and “(ii) all amounts contributed for annuity contracts by each such church (or convention or association of churches) or such organization during such years for such minister or lay person shall be considered to have been contributed by 1 employer. For purposes of the preceding sentence, the terms ‘church’ and ‘convention or association of churches’ have the same meaning as when used in section 414(e). “(D) Alternative exclusion allowance.— “(i) In general.— In the case of any individual described in subparagraph (C), the amount determined under subparagraph (A) shall not be less than the lesser of— “(I) $3,000, or “(II) the includible compensation of such individual, “(ii) Subparagraph not to apply to individuals with adjusted gross income over $17,000.— This Subparagraph shall not apply with respect to any taxable year to any individual whose adjusted gross income for such taxable year (determined separately and without regard to any community property laws) exceeds $17,000. “(iii) Special rule for foreign missionaries.— In the case of an individual described in subparagraph (C)(i) performing services outside the United States, there shall be included as includible compensation for any year under clause (i)(II) any amount contributed during such year by a church (or convention or association of churches) for an annuity contract with respect to such individual.”
1982
Pub. L. 97–248 § 251(b) · 96 Stat. 324
Added · 26 U.S.C. § 403(b)(9)
Pub. L. 97–248, § 251(b), added par. (9)
Source evidence
Code amendment note
Subsec. (b)(9). Pub. L. 97–248, § 251(b), added par. (9).
Enacted provision · exact public law section
(b) Retirement Income Accounts Provided by Churches, Etc.— Section 403(b) is amended by adding at the end thereof the following 26 USC 403. new paragraph: “(9) Retirement income accounts provided by churches, etc.— “(A) Amounts paid treated as contributions.— For purposes of this title— “(i) a retirement income account shall be treated as an annuity contract described in this subsection, and “(ii) amounts paid by an employer described in paragraph (1)(A) to a retirement income account shall be treated as amounts contributed by the employer for an annuity contract for the employee on whose behalf such account is maintained. “(B) Retirement income account.— For purposes of this paragraph, the term ‘retirement income account’ means a defined contribution program established or maintained by a church, a convention or association of churches, including an organization described in section 414(e)(3)(A), to provide benefits under section 403(b) for an employee described in paragraph (1) or his beneficiaries.”
1983
Pub. L. 97–448 title I § 103(c)(8)(B) · 96 Stat. 2365
Substituted · 26 U.S.C. § 403(b)(8)(C)
Pub. L. 97–448 substituted “subparagraphs (B), (C), (D)(v), and (E)(i) of section 402(a)(5)” for “subparagraphs (B), (C), and (E)(i) of section 402(a)(5)”
Source evidence
Code amendment note
Subsec. (b)(8)(C). Pub. L. 97–448 substituted “subparagraphs (B), (C), (D)(v), and (E)(i) of section 402(a)(5)” for “subparagraphs (B), (C), and (E)(i) of section 402(a)(5)”.
Enacted provision · exact public law section
(B) Subparagraph (C) of section 403(b)(8) (relating to roll-over 26 USC 403. amounts) is amended by striking out “subparagraphs (B), (C),” and inserting in lieu thereof “subparagraphs (B), (C), (D)(v),”.
1983
Pub. L. 98–21 title I § 122(c)(4) · 97 Stat. 65
Substituted · 26 U.S.C. § 403(b)(3)
Pub. L. 98–21 substituted “section 911” for “sections 105(d) and 911”
Source evidence
Code amendment note
Subsec. (b)(3). Pub. L. 98–21 substituted “section 911” for “sections 105(d) and 911”.
Enacted provision · exact public law section
(4) Paragraph (3) of section 403(b) of such Code is amended by 26 USC 403. striking out “sections 105(d) and 911” and inserting in lieu thereof “section 911”.
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 1001(b)(4) · 98 Stat. 494
Substituted · 26 U.S.C. § 403(a)(2)(A)
Pub. L. 98–369, § 1001(b)(4), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below
Source evidence
Code amendment note
Subsec. (a)(2)(A). Pub. L. 98–369, § 1001(b)(4), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below.
Enacted provision · exact public law section
(4) Subparagraph (A) of section 403(a)(2) (relating to capital 26 USC 403. gains treatment for certain distributions in the case of a beneficiary under a qualified annuity plan).
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 522(a)(2) · 98 Stat. 494
Substituted · 26 U.S.C. § 403(a)(4)(A)(i)
Pub. L. 98–369, § 522(a)(2), substituted “any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him,” for “the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in a qualifying rollover distribution.”
Source evidence
Code amendment note
Subsec. (a)(4)(A)(i). Pub. L. 98–369, § 522(a)(2), substituted “any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him,” for “the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in a qualifying rollover distribution.”
Enacted provision · exact public law section
(2) Qualified annuities.— Clause (i) of section 403(a)(4)(A) 26 USC 403. (relating to rollover amounts) is amended to read as follows: “(i) any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him,”.
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 522(d)(9) · 98 Stat. 494
Substituted · 26 U.S.C. § 403(a)(4)(B)
Pub. L. 98–369, § 522(d)(9), substituted “(B) through (F)” for “(B) through (E)”
Source evidence
Code amendment note
Subsec. (a)(4)(B). Pub. L. 98–369, § 522(d)(9), substituted “(B) through (F)” for “(B) through (E)”.
Enacted provision · exact public law section
(9) Subparagraph (B) of section 403(a)(4) is amended by striking out “(B) through (E)” and inserting in lieu thereof “(B) through (F)”.
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 491(d)(12) · 98 Stat. 494
Struck · 26 U.S.C. § 403(b)(1)
Pub. L. 98–369, § 491(d)(12), struck out “or 409(b)(3)(C)” after “408(d)(3)(A)(iii)”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 98–369, § 491(d)(12), struck out “or 409(b)(3)(C)” after “408(d)(3)(A)(iii)”.
Enacted provision · exact public law section
(12) The last sentence of section 403(b)(1) is amended by 26 USC 403. striking out “or 409(b)(3)(C)”.
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 521(c) · 98 Stat. 494
Added · 26 U.S.C. § 403(b)(7)(D)
Pub. L. 98–369, § 521(c), added subpar. (D)
Source evidence
Code amendment note
Subsec. (b)(7)(D). Pub. L. 98–369, § 521(c), added subpar. (D).
Enacted provision · exact public law section
(c) Special Rule for Custodial Accounts.— Paragraph (7) of section 403(b) (relating to custodial accounts for regulated investment 26 USC 403. company stock) is amended by adding at the end thereof the following new subparagraph: “(D) Distribution requirements.— For purposes of determining when the interest of an employee in a custodial account must be distributed, such account shall be treated in the same manner as an annuity contract.”
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 522(a)(3) · 98 Stat. 494
Substituted · 26 U.S.C. § 403(b)(8)(A)(i)
Pub. L. 98–369, § 522(a)(3), substituted “any portion of the balance to the credit of an employee in an annuity contract described in paragraph (1) is paid to him” for “the balance to the credit of an employee is paid to him in a qualifying distribution”
Source evidence
Code amendment note
Subsec. (b)(8)(A)(i). Pub. L. 98–369, § 522(a)(3), substituted “any portion of the balance to the credit of an employee in an annuity contract described in paragraph (1) is paid to him” for “the balance to the credit of an employee is paid to him in a qualifying distribution”.
Enacted provision · exact public law section
(3) Section 403(b) annuities.— Clause (i) of section 403(b)(8)(A) (relating to rollover amounts) is amended to read as follows: “(i) any portion of the balance to the credit of an employee in an annuity contract described in paragraph (1) is paid to him,”.
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 522(d)(10) · 98 Stat. 494
Substituted · 26 U.S.C. § 403(b)(8)(B)
Pub. L. 98–369, § 522(d)(10), substituted provisions relating to special rules for partial distributions for provisions relating to definition of qualifying distributions
Source evidence
Code amendment note
Subsec. (b)(8)(B). Pub. L. 98–369, § 522(d)(10), substituted provisions relating to special rules for partial distributions for provisions relating to definition of qualifying distributions.
Enacted provision · exact public law section
(10) Subparagraph (B) of section 403(b)(8) is amended to read as follows: “(B) Special rules for partial distributions.— “(i) In general.— In the case of any distribution other than a total distribution, rules similar to the rules of clauses (i) and (ii) of section 402(a)(5)(D) shall apply—, (ii) Total distribution.— For purposes of subparagraph (A), the term ‘total distribution’ means one or more distributions from an annuity contract described in paragraph (1) which would constitute a lump-sum distribution within the meaning of section 402(e)(4)(A) (determined without regard to subparagraphs (B) and (H) of section 402(e)(4)) if such annuity contract were described in subsection (a), or 1 or more distributions of accumulated deductible employee contributions (within the meaning of section 72(o)(5)).”
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 522(d)(11) · 98 Stat. 494
Substituted · 26 U.S.C. § 403(b)(8)(C)
Pub. L. 98–369, § 522(d)(11), substituted “(F)(i)” for “(D)(v), and (E)(i)”
Source evidence
Code amendment note
Subsec. (b)(8)(C). Pub. L. 98–369, § 522(d)(11), substituted “(F)(i)” for “(D)(v), and (E)(i)”.
Enacted provision · exact public law section
(11) Subparagraph (C) of section 403(b)(8) is amended by striking 26 USC 403. out “(D)(v), and (E)(i)” and inserting in lieu thereof “(F)(i)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1122(d)(1) · 100 Stat. 2085
1. Substituted · 26 U.S.C. § 403(a)(1)
  Pub. L. 99–514, § 1122(d)(1), substituted “Distributee taxable under section 72” for “General rule” in heading
2. Amended · 26 U.S.C. § 403(a)(1)
  Pub. L. 99–514, § 1122(d)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Except as provided in paragraph (2), if an annuity contract is purchased by an employer for an employee under a plan which meets the requirements of section 404(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section), the employee shall include in his gross income the amounts received under such contract for the year received as provided in section 72 (relating to annuities).”
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 99–514, § 1122(d)(1), substituted “Distributee taxable under section 72” for “General rule” in heading and amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Except as provided in paragraph (2), if an annuity contract is purchased by an employer for an employee under a plan which meets the requirements of section 404(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section), the employee shall include in his gross income the amounts received under such contract for the year received as provided in section 72 (relating to annuities).”
Enacted provision · exact public law section
(1) Paragraph (1) of section 403(a) (relating to taxability of beneficiary under a qualified annuity plan) is amended to read as follows: “(1) Distributee taxable under section 72.— If an annuity contract is purchased by an employer for an employee under a plan which meets the requirements of section 404(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section), the amount actually distributed to any distributee under the contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities).”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1122(b)(1)(B) · 100 Stat. 2085
Struck · 26 U.S.C. § 403(a)(2)
Pub. L. 99–514, § 1122(b)(1)(B), struck out par. (2) which read as follows:
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 99–514, § 1122(b)(1)(B), struck out par. (2) which read as follows:
“(A) General rule “If— “(i) an annuity contract is purchased by an employer for an employee under a plan described in paragraph (1); “(ii) such plan requires that refunds of contributions with respect to annuity contracts purchased under such plan be used to reduce subsequent premiums on the contracts under the plan; and “(iii) a lump sum distribution (as defined in section 402(e)(4)(A)) is paid to the recipient, so much of the total taxable amount (as defined in section 402(e)(4)(D)) of such distribution as is equal to the product of such total taxable amount multiplied by the fraction described in section 402(a)(2) shall be treated as a gain from the sale or exchange of a capital asset held for more than 6 months. For purposes of this paragraph, in the case of an individual who is an employee without regard to section 401(c)(1), determination of whether or not any distribution is a lump sum distribution shall be made without regard to the requirement that an election be made under subsection (e)(4)(B) of section 402, but no distribution to any taxpayer other than an individual, estate, or trust may be treated as a lump sum distribution under this paragraph. “(B) Cross reference “For imposition of separate tax on ordinary income portion of lump sum distribution, see section 402(e).”
Enacted provision · exact public law section
(B) Paragraph (2) of section 403(a) (relating to capital gains treatment for certain distributions).
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1852(a)(5)(B)(i) · 100 Stat. 2085
Substituted · 26 U.S.C. § 403(a)(4)(B)
Pub. L. 99–514, § 1852(a)(5)(B)(i), substituted “through (G)” for “through (F)”
Source evidence
Code amendment note
Subsec. (a)(4)(B). Pub. L. 99–514, § 1852(a)(5)(B)(i), substituted “through (G)” for “through (F)”.
Enacted provision · exact public law section
(i) Subparagraph (B) of section 403(a)(4) is amended by striking out “through (F) ” and inserting in lieu thereof “through (G)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1122(d)(2) · 100 Stat. 2085
Amended · 26 U.S.C. § 403(b)(1)
Pub. L. 99–514, § 1122(d)(2), amended second sentence generally. Prior to amendment, second sentence read as follows: “The employee shall include in his gross income the amounts received under such contract for the year received as provided in section 72 (relating to annuities)”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 99–514, § 1122(d)(2), amended second sentence generally. Prior to amendment, second sentence read as follows: “The employee shall include in his gross income the amounts received under such contract for the year received as provided in section 72 (relating to annuities)”.
Enacted provision · exact public law section
(2) The second sentence of section 403(b)(1) (relating to taxability of beneficiary under annuity purchased by section 501(c)(3) organization or public school) is amended to read as follows: “The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities).”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1120(a) · 100 Stat. 2085
Added · 26 U.S.C. § 403(b)(1)(D)
Pub. L. 99–514, § 1120(a), added subpar. (D)
Source evidence
Code amendment note
Subsec. (b)(1)(D). Pub. L. 99–514, § 1120(a), added subpar. (D).
Enacted provision · exact public law section
(a) General Rule.— Paragraph (1) of section 403(b) is amended by striking out “and” at the end of subparagraph (B), by inserting “and” at the end of subparagraph (C), and by inserting after subparagraph (C) the following new subparagraph: “(D) except in the case of a contract purchased by a church, such contract is purchased under a plan which meets the nondiscrimination requirements of paragraph (10),”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1123(c)(2) · 100 Stat. 2085
Inserted · 26 U.S.C. § 403(b)(7)(A)(ii)
Pub. L. 99–514, § 1123(c)(2), inserted “in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(1)(D)),” after “section 72(m)(7)), or”
Source evidence
Code amendment note
Subsec. (b)(7)(A)(ii). Pub. L. 99–514, § 1123(c)(2), inserted “in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(1)(D)),” after “section 72(m)(7)), or”.
Enacted provision · exact public law section
(2) Custodial accounts.— Clause (ii) of section 403(b)(7) (relating to amounts treated as contributions) is amended by inserting “in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(1)(D)),” before “encounters”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1852(a)(3)(B) · 100 Stat. 2085
Struck · 26 U.S.C. § 403(b)(7)(D)
Pub. L. 99–514, § 1852(a)(3)(B), struck out subpar. (D) “Distribution requirements” which read as follows: “For purposes of determining when the interest of an employee in a custodial account must be distributed, such account shall be treated in the same manner as an annuity contract.”
Source evidence
Code amendment note
Subsec. (b)(7)(D). Pub. L. 99–514, § 1852(a)(3)(B), struck out subpar. (D) “Distribution requirements” which read as follows: “For purposes of determining when the interest of an employee in a custodial account must be distributed, such account shall be treated in the same manner as an annuity contract.”
Enacted provision · exact public law section
(B) Paragraph (7) of section 403(b) is amended by striking out subparagraph (D).
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1852(b)(10) · 100 Stat. 2085
Inserted · 26 U.S.C. § 403(b)(8)(C)
Pub. L. 99–514, § 1852(b)(10), inserted “and” before “(F)(i)”
Source evidence
Code amendment note
Subsec. (b)(8)(C). Pub. L. 99–514, § 1852(b)(10), inserted “and” before “(F)(i)”.
Enacted provision · exact public law section
(10) Subparagraph (C) of section 403(b)(8) is amended by striking out “(F)(i)” and inserting in lieu thereof “and (F)(i)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1852(a)(5)(B)(ii) · 100 Stat. 2085
Added · 26 U.S.C. § 403(b)(8)(D)
Pub. L. 99–514, § 1852(a)(5)(B)(ii), added subpar. (D)
Source evidence
Code amendment note
Subsec. (b)(8)(D). Pub. L. 99–514, § 1852(a)(5)(B)(ii), added subpar. (D).
Enacted provision · exact public law section
(ii) Paragraph (8) of section 403(b) is amended by adding at the end thereof the following new subparagraph: “(D) Required distributions not eligible for rollover treatment.— Subparagraph (A) shall not apply to any distribution to the extent such distribution is required under paragraph (10).”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1120(b) · 100 Stat. 2085
Added · 26 U.S.C. § 403(b)(10)
Pub. L. 99–514, § 1120(b), added par. (10) relating to nondiscrimination requirements
Source evidence
Code amendment note
Subsec. (b)(10). Pub. L. 99–514, § 1120(b), added par. (10) relating to nondiscrimination requirements.
Enacted provision · exact public law section
(b) Nondiscrimination Requirements.— Subsection (b) of section 403 is amended by adding at the end thereof the following new paragraph: “(10) Nondiscrimination requirements.— “(A) In general.— For purposes of paragraph (1)(D), a plan meets the nondiscrimination requirements of this paragraph if— “(i) with respect to contributions not made pursuant to a salary reduction agreement, such plan meets the requirements of paragraphs (4), (5), and (26) of section 401(a) and section 410(b) in the same manner as if such plan were described in section 401(a), and “(ii) all employees of the organization may elect to have the employer make contributions of more than $200 pursuant to a salary reduction agreement if any employee of the organization may elect to have the organization make contributions for such contracts pursuant to such agreement. For purposes of clause (ii), there may be excluded any employee who is a participant in an eligible deferred compensation plan (within the meaning of section 457) or a qualified cash or deferred arrangement of the organization or another annuity contract described in this subsection. Any nonresident alien described in section 410(b)(3)(C) may also be excluded. For purposes of this subparagraph, students who normally work less than 20 hours per week may (subject to the conditions applicable under section 410(b)(4)) be excluded. “(B) Church.— For purposes of paragraph (1)(D), the term ‘church’ has the meaning given to such term by section 3121(w)(3)(A). Such term shall include any qualified church-controlled organization (as defined in section 3121(w)(3)(B)).”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1852(a)(3)(A) · 100 Stat. 2085
Added · 26 U.S.C. § 403(b)(10)
Pub. L. 99–514, § 1852(a)(3)(A), added par. (10) relating to distribution requirements
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 99–514, § 1852(a)(3)(A), added par. (10) relating to distribution requirements.
Enacted provision · exact public law section
(A) Subsection (b) of section 403 (relating to taxability of beneficiary under annuity purchased by section 501(c)(3) organization or public school) is amended by adding at the end thereof the following new paragraph: “(10) Distribution requirements.— Under regulations prescribed by the Secretary, this subsection shall not apply to any annuity contract (or to any custodial account described in paragraph (7) or retirement income account described in paragraph (9)) unless requirements similar to the requirements of section 401(a)(9) are met (and requirements similar to the incidental death benefit requirements of section 401(a) are met) with respect to such annuity contract (or custodial account or retirement income account).”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1123(c)(1) · 100 Stat. 2085
Added · 26 U.S.C. § 403(b)(11)
Pub. L. 99–514, § 1123(c)(1), added par. (11)
Source evidence
Code amendment note
Subsec. (b)(11). Pub. L. 99–514, § 1123(c)(1), added par. (11).
Enacted provision · exact public law section
(1) In general.— Subsection (b) of section 403 (relating to taxability of beneficiary under annuity purchased by section 501(c)(3) organization or public school) is amended by adding at the end thereof the following new paragraph: “(11) Requirement that distributions not begin before age 59½, separation from service, death, or disability.— This subsection shall not apply to any annuity contract unless under such contract distributions attributable to contributions made pursuant to a salary reduction agreement (within the meaning of section 402(g)(3)(C)) may be paid only— “(A) when the employee attains age 59½, separates from service, dies, or becomes disabled (within the meaning of section 72(m)(7)), or “(B) in the case of hardship. Such contract may not provide for the distribution of any income attributable to such contributions in the case of hardship.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1122(d)(3) · 100 Stat. 2085
Amended · 26 U.S.C. § 403(c)
Pub. L. 99–514, § 1122(d)(3), amended last sentence generally. Prior to amendment, last sentence read as follows: “The amount actually paid or made available to any beneficiary under such contract shall be taxable to him in the year in which so paid or made available under section 72 (relating to annuities).”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 99–514, § 1122(d)(3), amended last sentence generally. Prior to amendment, last sentence read as follows: “The amount actually paid or made available to any beneficiary under such contract shall be taxable to him in the year in which so paid or made available under section 72 (relating to annuities).”
Enacted provision · exact public law section
(3) The last sentence of section 403(c) (relating to taxability of beneficiary under nonqualified annuities or under annuities purchased by exempt organizations) is amended to read as follows: “In the case of any portion of any contract which is attributable to premiums to which this subsection applies, the amount actually paid or made available under such contract to any beneficiary which is attributable to such premiums shall be taxable to the beneficiary (in the year in which so paid or made available) under section 72 (relating to annuities).”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(m)(1)(B) · 102 Stat. 3342
Substituted · 26 U.S.C. § 403(b)(1)(D)
Pub. L. 100–647, § 1011(m)(1)(B), substituted “paragraph (12)” for “paragraph (10)”
Source evidence
Code amendment note
Subsec. (b)(1)(D). Pub. L. 100–647, § 1011(m)(1)(B), substituted “paragraph (12)” for “paragraph (10)”.
Enacted provision · exact public law section
(B) Subparagraph (D) of section 403(b)(1) of the 1986 Code is amended by striking out “paragraph (10)” and inserting in lieu thereof “paragraph (12)”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(c)(7)(B) · 102 Stat. 3342
Added · 26 U.S.C. § 403(b)(1)(E)
Pub. L. 100–647, § 1011(c)(7)(B), added subpar. (E)
Source evidence
Code amendment note
Subsec. (b)(1)(E). Pub. L. 100–647, § 1011(c)(7)(B), added subpar. (E).
Enacted provision · exact public law section
(B) Section 403(b)(1) of the 1986 Code is amended by striking out “and” at the end of subparagraph (C), by inserting “and” at the end of subparagraph (D), and by inserting after subparagraph (D) the following new subparagraph: “(E) in the case of a contract purchased under a plan which provides a salary reduction agreement, the plan meets the requirements of section 401(a)(30),”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(m)(1)(A) · 102 Stat. 3342
Redesignated · 26 U.S.C. § 403(b)(10)
Pub. L. 100–647, § 1011(m)(1)(A), redesignated par. (10), relating to nondiscrimination requirements, as (12)
Source evidence
Code amendment note
Subsec. (b)(10). Pub. L. 100–647, § 1011(m)(1)(A), redesignated par. (10), relating to nondiscrimination requirements, as (12).
Enacted provision · exact public law section
(A) Section 403(b)(10) of the 1986 Code (relating to non-discrimination requirements), as added by section 1120(b) of the Reform Act, is redesignated as paragraph (12).
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(m)(1)(A) · 102 Stat. 3342
Redesignated · 26 U.S.C. § 403(b)(12)
Pub. L. 100–647, § 1011(m)(1)(A), redesignated par. (10), relating to nondiscrimination requirements, as (12)
Source evidence
Code amendment note
Subsec. (b)(12). Pub. L. 100–647, § 1011(m)(1)(A), redesignated par. (10), relating to nondiscrimination requirements, as (12).
Enacted provision · exact public law section
(A) Section 403(b)(10) of the 1986 Code (relating to non-discrimination requirements), as added by section 1120(b) of the Reform Act, is redesignated as paragraph (12).
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(m)(2) · 102 Stat. 3342
Inserted · 26 U.S.C. § 403(b)(12)(A)
Pub. L. 100–647, § 1011(m)(2), inserted “(17),” after “paragraphs (4), (5),” and “, section 401(m),” after “of section 401(a)” in cl. (i)
Source evidence
Code amendment note
Subsec. (b)(12)(A). Pub. L. 100–647, § 1011(m)(2), inserted “(17),” after “paragraphs (4), (5),” and “, section 401(m),” after “of section 401(a)” in cl. (i).
Enacted provision · exact public law section
(2) Clause (i) of section 403(b)(12)(A), as redesignated by paragraph (1), is amended— (A) by inserting “(17),” after “(5),”, and (B) by inserting “, section 401(m),” after “section 401(a)” the first place it appears.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(c)(12) · 102 Stat. 3342
Inserted · 26 U.S.C. § 403(b)(12)(A)
Pub. L. 100–647, § 1011(c)(12), inserted after cl. (ii) “For purposes of clause (i), a contribution shall be treated as not made pursuant to a salary reduction agreement if under the agreement it is made pursuant to a 1-time irrevocable election made by the employee at the time of initial eligibility to participate in the agreement or is made pursuant to a similar arrangement specified in regulations.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 100–647, § 1011(c)(12), inserted after cl. (ii) “For purposes of clause (i), a contribution shall be treated as not made pursuant to a salary reduction agreement if under the agreement it is made pursuant to a 1-time irrevocable election made by the employee at the time of initial eligibility to participate in the agreement or is made pursuant to a similar arrangement specified in regulations.”
Enacted provision · exact public law section
(12) Subparagraph (A) of section 403(b)(12) of the 1986 Code is Wages. amended by inserting after clause (ii) the following new sentence: “For purposes of clause (i), a contribution shall be treated as not made pursuant to a salary reduction agreement if under the agreement it is made pursuant to a 1-time irrevocable election made by the employee at the time of initial eligibility to participate in the agreement or is made pursuant to a similar arrangement specified in regulations.”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 6052(a)(1) · 102 Stat. 3342
Amended · 26 U.S.C. § 403(b)(12)(A)
Pub. L. 100–647, § 6052(a)(1), amended last sentence generally. Prior to amendment, last sentence read as follows: “For purposes of this subparagraph, students who normally work less than 20 hours per week may (subject to the conditions applicable under section 410(b)(4)) be excluded.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 100–647, § 6052(a)(1), amended last sentence generally. Prior to amendment, last sentence read as follows: “For purposes of this subparagraph, students who normally work less than 20 hours per week may (subject to the conditions applicable under section 410(b)(4)) be excluded.”
Enacted provision · exact public law section
(1) In general.— The last sentence of section 403(b)(12)(A) of the 1986 Code is amended to read as follows: “Subject to the conditions applicable under section 410(b)(4), there may be excluded for purposes of this subparagraph employees who are students performing services described in section 3121(b)(10) and employees who normally work less than 20 hours per week.”
1990
Revenue Reconciliation Act of 1990
Pub. L. 101–508 title XI § 11701(k) · 104 Stat. 1388
Inserted · 26 U.S.C. § 403(b)(12)(A)
Pub. L. 101–508 inserted “involving a one-time irrevocable election” after “similar arrangement” in second sentence
Source evidence
Code amendment note
Subsec. (b)(12)(A). Pub. L. 101–508 inserted “involving a one-time irrevocable election” after “similar arrangement” in second sentence.
Enacted provision · exact public law section
(k) Amendment Related to Section 7811.— The second sentence of section 403(b)(12)(A) is amended by inserting “involving a one-time irrevocable election” after “similar arrangement”.
1992
Unemployment Compensation Amendments of 1992
Pub. L. 102–318 § 521(b)(12)(A) · 106 Stat. 290
Inserted · 26 U.S.C. § 403(a)(4)(A)(i)
Pub. L. 102–318, § 521(b)(12)(A), inserted before comma at end “in an eligible rollover distribution (within the meaning of section 402(c)(4))”
Source evidence
Code amendment note
Subsec. (a)(4)(A)(i). Pub. L. 102–318, § 521(b)(12)(A), inserted before comma at end “in an eligible rollover distribution (within the meaning of section 402(c)(4))”.
Enacted provision · exact public law section
(A) Clause (i) of section 403(a)(4)(A) is amended by inserting 26 USC 403. “in an eligible rollover distribution (within the meaning of section 402(c)(4))” before the comma at the end thereof
1992
Unemployment Compensation Amendments of 1992
Pub. L. 102–318 § 521(b)(12)(B) · 106 Stat. 290
Amended · 26 U.S.C. § 403(a)(4)(B)
Pub. L. 102–318, § 521(b)(12)(B), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Rules similar to the rules of subparagraphs (B) through (G) of section 402(a)(5) and of paragraphs (6) and (7) of section 402(a) shall apply for purposes of subparagraph (A).”
Source evidence
Code amendment note
Subsec. (a)(4)(B). Pub. L. 102–318, § 521(b)(12)(B), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Rules similar to the rules of subparagraphs (B) through (G) of section 402(a)(5) and of paragraphs (6) and (7) of section 402(a) shall apply for purposes of subparagraph (A).”
Enacted provision · exact public law section
(B) Subparagraph (B) of section 403(a)(4) is amended to read as follows: “(B) Certain rules made applicable.— Rules similar to the rules of paragraphs (2) through (7) of section 402(c) shall apply for purposes of subparagraph (A).”
1992
Unemployment Compensation Amendments of 1992
Pub. L. 102–318 § 522(c)(2) · 106 Stat. 290
Added · 26 U.S.C. § 403(a)(5)
Pub. L. 102–318, § 522(c)(2), added par. (5)
Source evidence
Code amendment note
Subsec. (a)(5). Pub. L. 102–318, § 522(c)(2), added par. (5).
Enacted provision · exact public law section
(2) Employee annuities.— Subsection (a) of section 403 26 USC 403. is amended by adding at the end the following new paragraph: “(5) Direct trustee-to-trustee transfer.— Any amount transferred in a direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of such transfer.”
1992
Unemployment Compensation Amendments of 1992
Pub. L. 102–318 § 521(b)(13)(A) · 106 Stat. 290
Inserted · 26 U.S.C. § 403(b)(8)(A)(i)
Pub. L. 102–318, § 521(b)(13)(A), inserted before comma at end “in an eligible rollover distribution (within the meaning of section 402(c)(4))”
Source evidence
Code amendment note
Subsec. (b)(8)(A)(i). Pub. L. 102–318, § 521(b)(13)(A), inserted before comma at end “in an eligible rollover distribution (within the meaning of section 402(c)(4))”.
Enacted provision · exact public law section
(A) Clause (i) of section 403(b)(8)(A) is amended by inserting “in an eligible rollover distribution (within the meaning of section 402(c)(4))” before the comma at the end thereof
1992
Unemployment Compensation Amendments of 1992
Pub. L. 102–318 § 521(b)(13)(B) · 106 Stat. 290
1. Added · 26 U.S.C. § 403(b)(8)(B)(D)
  Pub. L. 102–318, § 521(b)(13)(B), added subpar. (B)
2. Struck · 26 U.S.C. § 403(b)(8)(B)(D)
  Pub. L. 102–318, § 521(b)(13)(B), struck out former subpars. (B) to (D), which related to special rules for partial distributions, applicability of certain similar rules, and eligibility for rollover treatment of required distributions
Source evidence
Code amendment note
Subsec. (b)(8)(B) to (D). Pub. L. 102–318, § 521(b)(13)(B), added subpar. (B) and struck out former subpars. (B) to (D), which related to special rules for partial distributions, applicability of certain similar rules, and eligibility for rollover treatment of required distributions.
Enacted provision · exact public law section
(B) Paragraph (8) of section 403(b) is amended by striking subparagraphs (B), (C), and (D) and inserting the following: “(B) Certain rules made applicable.— Rules similar to the rules of paragraphs (2) through (7) of section 402(c) shall apply for purposes of subparagraph (A).”
1992
Unemployment Compensation Amendments of 1992
Pub. L. 102–318 § 522(a)(3) · 106 Stat. 290
1. Substituted · 26 U.S.C. § 403(b)(10)
  Pub. L. 102–318, § 522(a)(3), (c)(3), substituted “sections 401(a)(9) and 401(a)(31)” for “section 401(a)(9)”
2. Inserted · 26 U.S.C. § 403(b)(10)
  Pub. L. 102–318, § 522(a)(3), (c)(3), inserted at end “Any amount transferred in an direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of the transfer.”
Source evidence
Code amendment note
Subsec. (b)(10). Pub. L. 102–318, § 522(a)(3), (c)(3), substituted “sections 401(a)(9) and 401(a)(31)” for “section 401(a)(9)” and inserted at end “Any amount transferred in an direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of the transfer.”
Enacted provision · exact public law section
(3) Annuities purchased by charities and public schools.— Paragraph (10) of section 403(b) (relating to distribution requirements) is amended by striking “section 401(a)(9)” and inserting “sections 401(a)(9) and 401(a)(31)”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1450(c)(1) · 110 Stat. 1755
Amended · 26 U.S.C. § 403(b)(1)(E)
Pub. L. 104–188, § 1450(c)(1), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: “in the case of a contract purchased under a plan which provides a salary reduction agreement, the plan meets the requirements of section 401(a)(30),”
Source evidence
Code amendment note
Subsec. (b)(1)(E). Pub. L. 104–188, § 1450(c)(1), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: “in the case of a contract purchased under a plan which provides a salary reduction agreement, the plan meets the requirements of section 401(a)(30),”.
Enacted provision · exact public law section
(1) In general.— Subparagraph (E) of section 403(b)(1) is amended to read as follows: “(E) in the case of a contract purchased under a salary reduction agreement, the contract meets the requirements of section 401(a)(30),”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1704(t)(69) · 110 Stat. 1755
Substituted · 26 U.S.C. § 403(b)(10)
Pub. L. 104–188, § 1704(t)(69), substituted “a direct” for “an direct” in last sentence
Source evidence
Code amendment note
Subsec. (b)(10). Pub. L. 104–188, § 1704(t)(69), substituted “a direct” for “an direct” in last sentence.
Enacted provision · exact public law section
(69) The last sentence of section 403(b)(10) is amended by striking “an direct” and inserting “a direct”.
1997
Pub. L. 105–34 § 1601(d)(6)(B) · 111 Stat. 788
Added · 26 U.S.C. § 403(b)(1)(A)(iii)
Pub. L. 105–34, § 1601(d)(6)(B), added cl. (iii)
Source evidence
Code amendment note
Subsec. (b)(1)(A)(iii). Pub. L. 105–34, § 1601(d)(6)(B), added cl. (iii).
Enacted provision · exact public law section
(B) Section 403(b)(1)(A) is amended by striking “or” at the end of clause (i), by inserting “or” at the end of clause (ii), and by adding at the end the following new clause: “(iii) for the minister described in section 414(e)(5)(A) by the minister or by an employer,”.
1997
Pub. L. 105–34 § 1504(a)(1) · 111 Stat. 788
Inserted · 26 U.S.C. § 403(b)(3)
Pub. L. 105–34, § 1504(a)(1), inserted at end “Such term includes—” and subpars. (A) and (B)
Source evidence
Code amendment note
Subsec. (b)(3). Pub. L. 105–34, § 1504(a)(1), inserted at end “Such term includes—” and subpars. (A) and (B).
Enacted provision · exact public law section
(1) In general.— Section 403(b)(3) (defining includible compensation) is amended by adding at the end the following: “Such term includes— “(A) any elective deferral (as defined in section 402(g)(3)), and “(B) any amount which is contributed or deferred by the employer at the election of the employee and which is not includible in the gross income of the employee by reason of section 125 or 457.”.
1997
Pub. L. 105–34 § 1505(c) · 111 Stat. 788
Added · 26 U.S.C. § 403(b)(12)(C)
Pub. L. 105–34, § 1505(c), added subpar. (C)
Source evidence
Code amendment note
Subsec. (b)(12)(C). Pub. L. 105–34, § 1505(c), added subpar. (C).
Enacted provision · exact public law section
(c) Nondiscrimination Rules for Section 403(b) Plans.— Section 403(b)(12) (relating to nondiscrimination requirements) is amended by adding at the end the following: “(C) State and local governmental plans.— For purposes of paragraph (1)(D), the requirements of subparagraph (A)(i) (other than those relating to section 401(a)(17)) 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).”.
1998
Internal Revenue Service Restructuring and Reform Act of 1998
Pub. L. 105–206 title VI § 6005(c)(2)(B) · 112 Stat. 685
Inserted · 26 U.S.C. § 403(b)(8)(B)
Pub. L. 105–206 inserted “(including paragraph (4)(C) thereof)” after “section 402(c)”
Source evidence
Code amendment note
Subsec. (b)(8)(B). Pub. L. 105–206 inserted “(including paragraph (4)(C) thereof)” after “section 402(c)”.
Enacted provision · exact public law section
(B) Section 403(b)(8)(B) of the 1986 Code is amended by inserting “(including paragraph (4)(C) thereof)” after “section 402(c)”.
2000
Consolidated Appropriations Act, 2001
Pub. L. 106–554 § 1(a)(7)(tIII)(s314)(e)(1) · 114 Stat. 2763
Substituted · 26 U.S.C. § 403(b)(3)(B)
Pub. L. 106–554 substituted “section 125, 132(f)(4), or” for “section 125 or”
Source evidence
Code amendment note
Subsec. (b)(3)(B). Pub. L. 106–554 substituted “section 125, 132(f)(4), or” for “section 125 or”.
Enacted provision · exact public law section
(7) H.R. 5662, as introduced on December 14, 2000.
2001
Pub. L. 107–16 § 642(b)(1) · 115 Stat. 38
Substituted · 26 U.S.C. § 403(b)(1)
Pub. L. 107–16, § 642(b)(1), substituted “section 408(d)(3)(A)(ii)” for “section 408(d)(3)(A)(iii)” in concluding provisions
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 107–16, § 642(b)(1), substituted “section 408(d)(3)(A)(ii)” for “section 408(d)(3)(A)(iii)” in concluding provisions.
Enacted provision · exact public law section
(1) Paragraph (1) of section 403(b) is amended by striking “section 408(d)(3)(A)(iii)” and inserting “section 408(d)(3)(A)(ii)”.
2001
Pub. L. 107–16 § 632(a)(2)(A) · 115 Stat. 38
Substituted · 26 U.S.C. § 403(b)(1)
Pub. L. 107–16, § 632(a)(2)(A), substituted “the applicable limit under section 415” for “the exclusion allowance for such taxable year” in concluding provisions
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 107–16, § 632(a)(2)(A), substituted “the applicable limit under section 415” for “the exclusion allowance for such taxable year” in concluding provisions.
Enacted provision · exact public law section
(A) by striking “the exclusion allowance for such taxable year” in paragraph (1) and inserting “the applicable limit under section 415”,
2001
Pub. L. 107–16 § 632(a)(2)(B) · 115 Stat. 38
Struck · 26 U.S.C. § 403(b)(2)
Pub. L. 107–16, § 632(a)(2)(B), struck out par. (2), which described exclusion allowance for purposes of subsec. (b) providing general criteria, determination under section 415 rules, number of years of service for duly ordained, commissioned, or licensed ministers or lay employees, and alternative exclusion allowance for such ministers or lay employees
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 107–16, § 632(a)(2)(B), struck out par. (2), which described exclusion allowance for purposes of subsec. (b) providing general criteria, determination under section 415 rules, number of years of service for duly ordained, commissioned, or licensed ministers or lay employees, and alternative exclusion allowance for such ministers or lay employees.
Enacted provision · exact public law section
(B) by striking paragraph (2), and
2001
Pub. L. 107–16 § 632(a)(2)(C) · 115 Stat. 38
Inserted · 26 U.S.C. § 403(b)(3)
Pub. L. 107–16, § 632(a)(2)(C), inserted “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” before period at end of second sentence
Source evidence
Code amendment note
Subsec. (b)(3). Pub. L. 107–16, § 632(a)(2)(C), inserted “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” before period at end of second sentence.
Enacted provision · exact public law section
(C) by inserting “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” before the period at the end of the second sentence of paragraph (3).
2001
Pub. L. 107–16 § 646(a)(2)(A) · 115 Stat. 38
Substituted · 26 U.S.C. § 403(b)(7)(A)(ii)
Pub. L. 107–16, § 646(a)(2)(A), substituted “has a severance from employment” for “separates from service”
Source evidence
Code amendment note
Subsec. (b)(7)(A)(ii). Pub. L. 107–16, § 646(a)(2)(A), substituted “has a severance from employment” for “separates from service”.
Enacted provision · exact public law section
(A) Paragraphs (7)(A)(ii) and (11)(A) of section 403(b) are each amended by striking “separates from service” and inserting “has a severance from employment”.
2001
Pub. L. 107–16 § 641(b)(1) · 115 Stat. 38
Substituted · 26 U.S.C. § 403(b)(8)(A)(ii)
Pub. L. 107–16, § 641(b)(1), substituted “such distribution to an eligible retirement plan described in section 402(c)(8)(B), and” for “such distribution to an individual retirement plan or to an annuity contract described in paragraph (1), and”
Source evidence
Code amendment note
Subsec. (b)(8)(A)(ii). Pub. L. 107–16, § 641(b)(1), substituted “such distribution to an eligible retirement plan described in section 402(c)(8)(B), and” for “such distribution to an individual retirement plan or to an annuity contract described in paragraph (1), and”.
Enacted provision · exact public law section
(1) Rollovers from section 403(b) plans.— Section 26 USC 403. 403(b)(8)(A)(ii) (relating to rollover amounts) is amended by striking “such distribution” and all that follows and inserting “such distribution to an eligible retirement plan described in section 402(c)(8)(B), and”.
2001
Pub. L. 107–16 § 641(e)(7) · 115 Stat. 38
Amended · 26 U.S.C. § 403(b)(8)(B)
Pub. L. 107–16, § 641(e)(7), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (2) through (7) of section 402(c) (including paragraph (4)(C) thereof) shall apply for purposes of subparagraph (A).”
Source evidence
Code amendment note
Subsec. (b)(8)(B). Pub. L. 107–16, § 641(e)(7), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (2) through (7) of section 402(c) (including paragraph (4)(C) thereof) shall apply for purposes of subparagraph (A).”
Enacted provision · exact public law section
(7) Subparagraph (B) of section 403(b)(8) is amended to read as follows: “(B) Certain rules made applicable.— The rules of paragraphs (2) through (7) and (9) of section 402(c) and section 402(f) shall apply for purposes of subparagraph (A), except that section 402(f) shall be applied to the payor in lieu of the plan administrator.”.
2001
Pub. L. 107–16 § 646(a)(2)(B) · 115 Stat. 38
Substituted · 26 U.S.C. § 403(b)(11)
Pub. L. 107–16, § 646(a)(2)(B), substituted “severance from employment” for “separation from service” in heading
Source evidence
Code amendment note
Subsec. (b)(11). Pub. L. 107–16, § 646(a)(2)(B), substituted “severance from employment” for “separation from service” in heading.
Enacted provision · exact public law section
(B) The heading for paragraph (11) of section 403(b) is amended by striking “separation from service” and inserting “severance from employment”.
2001
Pub. L. 107–16 § 646(a)(2)(A) · 115 Stat. 38
Substituted · 26 U.S.C. § 403(b)(11)(A)
Pub. L. 107–16, § 646(a)(2)(A), substituted “has a severance from employment” for “separates from service”
Source evidence
Code amendment note
Subsec. (b)(11)(A). Pub. L. 107–16, § 646(a)(2)(A), substituted “has a severance from employment” for “separates from service”.
Enacted provision · exact public law section
(A) Paragraphs (7)(A)(ii) and (11)(A) of section 403(b) are each amended by striking “separates from service” and inserting “has a severance from employment”.
2001
Pub. L. 107–16 § 647(a) · 115 Stat. 38
Added · 26 U.S.C. § 403(b)(13)
Pub. L. 107–16, § 647(a), added par. (13)
Source evidence
Code amendment note
Subsec. (b)(13). Pub. L. 107–16, § 647(a), added par. (13).
Enacted provision · exact public law section
(a) Section 403(b) Plans.— Subsection (b) of section 403 is 26 USC 403. amended by adding at the end the following new paragraph: “(13) Trustee-to-trustee transfers to purchase permissive service credit.— No amount shall be includible in gross income by reason of a direct trustee-to-trustee transfer to a defined benefit governmental plan (as defined in section 414(d)) if such transfer is— “(A) for the purchase of permissive service credit (as defined in section 415(n)(3)(A)) under such plan, or “(B) a repayment to which section 415 does not apply by reason of subsection (k)(3) thereof.”.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411(p)(1) · 116 Stat. 21
1. Inserted · 26 U.S.C. § 403(b)(1)
  Pub. L. 107–147, § 411(p)(1), inserted concluding provisions
2. Struck · 26 U.S.C. § 403(b)(1)
  Pub. L. 107–147, § 411(p)(1), struck out former concluding provisions which read as follows: “then amounts contributed by such employer for such annuity contract on or after such rights become nonforfeitable shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such amounts does not exceed the applicable limit under section 415. The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities). For purposes of applying the rules of this subsection to amounts contributed by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or section 408(d)(3)(A)(ii) shall not be considered contributed by such employer.”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 107–147, § 411(p)(1), inserted concluding provisions and struck out former concluding provisions which read as follows: “then amounts contributed by such employer for such annuity contract on or after such rights become nonforfeitable shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such amounts does not exceed the applicable limit under section 415. The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities). For purposes of applying the rules of this subsection to amounts contributed by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or section 408(d)(3)(A)(ii) shall not be considered contributed by such employer.”
Enacted provision · exact public law section
(1) Section 403(b)(1) is amended in the matter following subparagraph (E) by striking “then amounts contributed” and all that follows and inserting the following: “then contributions and other additions by such employer for such annuity contract shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such contributions and additions (when expressed as an annual addition (within the meaning of section 415(c)(2))) does not exceed the applicable limit under section 415. The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities). For purposes of applying the rules of this subsection to contributions and other additions by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or section 408(d)(3)(A)(ii) shall not be considered contributed by such employer.”.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411(p)(3) · 116 Stat. 21
1. Inserted · 26 U.S.C. § 403(b)(3)
  Pub. L. 107–147, § 411(p)(3), in first sentence, inserted “, and which precedes the taxable year by no more than five years” before period at end and, in second sentence
2. Struck · 26 U.S.C. § 403(b)(3)
  Pub. L. 107–147, § 411(p)(3), in first sentence, struck out “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” after “this subsection applies”
Source evidence
Code amendment note
Subsec. (b)(3). Pub. L. 107–147, § 411(p)(3), in first sentence, inserted “, and which precedes the taxable year by no more than five years” before period at end and, in second sentence, struck out “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” after “this subsection applies”.
Enacted provision · exact public law section
(3) Section 403(b)(3) is amended— (A) in the first sentence by inserting the following before the period at the end: and which precedes the taxable year by no more than five years”, and (B) in the second sentence by striking “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated”.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411(p)(2) · 116 Stat. 21
Struck · 26 U.S.C. § 403(b)(6)
Pub. L. 107–147, § 411(p)(2), struck out heading and text of par. (6). Text read as follows: “For purposes of this subsection and section 72(f) (relating to special rules for computing employees’ contributions to annuity contracts), if rights of the employee under an annuity contract described in subparagraphs (A) and (B) of paragraph (1) change from forfeitable to nonforfeitable rights, then the amount (determined without regard to this subsection) includible in gross income by reason of such change shall be treated as an amount contributed by the employer for such annuity contract as of the time such rights become nonforfeitable.”
Source evidence
Code amendment note
Subsec. (b)(6). Pub. L. 107–147, § 411(p)(2), struck out heading and text of par. (6). Text read as follows: “For purposes of this subsection and section 72(f) (relating to special rules for computing employees’ contributions to annuity contracts), if rights of the employee under an annuity contract described in subparagraphs (A) and (B) of paragraph (1) change from forfeitable to nonforfeitable rights, then the amount (determined without regard to this subsection) includible in gross income by reason of such change shall be treated as an amount contributed by the employer for such annuity contract as of the time such rights become nonforfeitable.”
Enacted provision · exact public law section
(2) Section 403(b) is amended by striking paragraph (6).
2004
Working Families Tax Relief Act of 2004
Pub. L. 108–311 § 404(e) · 118 Stat. 1166
Amended · 26 U.S.C. § 403(a)(4)(B)
Pub. L. 108–311, § 404(e), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (2) through (7) of section 402(c) shall apply for purposes of subparagraph (A).”
Source evidence
Code amendment note
Subsec. (a)(4)(B). Pub. L. 108–311, § 404(e), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (2) through (7) of section 402(c) shall apply for purposes of subparagraph (A).”
Enacted provision · exact public law section
(e) Amendment Related to Section 641 of the Act.— Subparagraph (B) of section 403(a)(4) 26 USC 403. is amended to read as follows: “(B) Certain rules made applicable.— The rules of paragraphs (2) through (7) and (9) of section 402(c) and section 402(f) shall apply for purposes of subparagraph (A).” .
2004
Working Families Tax Relief Act of 2004
Pub. L. 108–311 § 408(a)(11) · 118 Stat. 1166
Substituted · 26 U.S.C. § 403(b)(7)(A)(ii)
Pub. L. 108–311, § 408(a)(11), substituted “3121(a)(5)(D)” for “3121(a)(1)(D)”
Source evidence
Code amendment note
Subsec. (b)(7)(A)(ii). Pub. L. 108–311, § 408(a)(11), substituted “3121(a)(5)(D)” for “3121(a)(1)(D)”.
Enacted provision · exact public law section
(11) Clause (ii) of section 403(b)(7)(A) is amended by striking “section 3121(a)(1)(D)” and inserting “section 3121(a)(5)(D)”.
2005
Tax Technical Corrections Act of 2005
Pub. L. 109–135 title IV § 412(w) · 119 Stat. 2577
Inserted · 26 U.S.C. § 403(b)(9)(B)
Pub. L. 109–135 inserted “or” before “a convention”
Source evidence
Code amendment note
Subsec. (b)(9)(B). Pub. L. 109–135 inserted “or” before “a convention”.
Enacted provision · exact public law section
(w) Subparagraph (B) of section 403(b)(9) is amended by inserting “or” before “a convention”.
2006
Pub. L. 109–280 § 845(b)(1) · 120 Stat. 780
Added · 26 U.S.C. § 403(a)(2)
Pub. L. 109–280, § 845(b)(1), added par. (2)
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 109–280, § 845(b)(1), added par. (2).
Enacted provision · exact public law section
(1) Section 403(a) of such Code 26 USC 403. (relating to taxability of beneficiary under a qualified annuity plan) is amended by inserting after paragraph (1) the following new paragraph: “(2) Special rule for health and long-term care insurance.— To the extent provided in section 402(l), paragraph (1) shall not apply to the amount distributed under the contract which is otherwise includible in gross income under this subsection.” .
2006
Pub. L. 109–280 § 829(a)(2) · 120 Stat. 780
Inserted · 26 U.S.C. § 403(a)(4)(B)
Pub. L. 109–280, § 829(a)(2), inserted “and (11)” after “(7)”
Source evidence
Code amendment note
Subsec. (a)(4)(B). Pub. L. 109–280, § 829(a)(2), inserted “and (11)” after “(7)”.
Enacted provision · exact public law section
(2) Section 403(a) plans.— Subparagraph (B) of section 403(a)(4) of such Code 26 USC 403. (relating to rollover amounts) is amended by inserting “and (11)” after “(7)”.
2006
Pub. L. 109–280 § 845(b)(2) · 120 Stat. 780
Added · 26 U.S.C. § 403(b)(2)
Pub. L. 109–280, § 845(b)(2), added par. (2)
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 109–280, § 845(b)(2), added par. (2).
Enacted provision · exact public law section
(2) Section 403(b) of such Code (relating to taxability of beneficiary under annuity purchased by section 501(c)(3) organization or public school) is amended by inserting after paragraph (1) the following new paragraph: “(2) Special rule for health and long-term care insurance.— To the extent provided in section 402(l), paragraph (1) shall not apply to the amount distributed under the contract which is otherwise includible in gross income under this subsection.” .
2006
Pub. L. 109–280 § 827(b)(2) · 120 Stat. 780
Inserted · 26 U.S.C. § 403(b)(7)(A)(ii)
Pub. L. 109–280, § 827(b)(2), inserted “(unless such amount is a distribution to which section 72(t)(2)(G) applies)” after “distributee”
Source evidence
Code amendment note
Subsec. (b)(7)(A)(ii). Pub. L. 109–280, § 827(b)(2), inserted “(unless such amount is a distribution to which section 72(t)(2)(G) applies)” after “distributee”.
Enacted provision · exact public law section
(2) Section 403(b)(7)(A)(ii) of such Code is amended by inserting “(unless such amount is a distribution to which section 72(t)(2)(G) applies)” after “distributee”.
2006
Pub. L. 109–280 § 829(a)(3) · 120 Stat. 780
Substituted · 26 U.S.C. § 403(b)(8)(B)
Pub. L. 109–280, § 829(a)(3), substituted “, (9), and (11)” for “and (9)”
Source evidence
Code amendment note
Subsec. (b)(8)(B). Pub. L. 109–280, § 829(a)(3), substituted “, (9), and (11)” for “and (9)”.
Enacted provision · exact public law section
(3) Section 403(b) plans.— Subparagraph (B) of section 403(b)(8) of such Code (relating to rollover amounts) is amended by striking “and (9)” and inserting “, (9), and (11)”.
2006
Pub. L. 109–280 § 827(b)(3) · 120 Stat. 780
Added · 26 U.S.C. § 403(b)(11)(C)
Pub. L. 109–280, § 827(b)(3), added subpar. (C)
Source evidence
Code amendment note
Subsec. (b)(11)(C). Pub. L. 109–280, § 827(b)(3), added subpar. (C).
Enacted provision · exact public law section
(3) Section 403(b)(11) of such Code is amended by striking “or” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, or”, and by inserting after subparagraph (B) the following new subparagraph: “(C) for distributions to which section 72(t)(2)(G) applies.” .
2008
Heroes Earnings Assistance and Relief Tax Act of 2008
Pub. L. 110–245 title I § 104(c)(2) · 122 Stat. 1624
Added · 26 U.S.C. § 403(b)(14)
Pub. L. 110–245 added par. (14)
Source evidence
Code amendment note
Subsec. (b)(14). Pub. L. 110–245 added par. (14).
Enacted provision · exact public law section
(2) Section 403(b) is amended by adding at the end the following new paragraph: “(14) Death benefits under userra-qualified active military service.— This subsection shall not apply to an annuity contract unless such contract meets the requirements of section 401(a)(37).” .
2019
Department of Labor Appropriations Act, 2020
Pub. L. 116–94 § 109(c)(2) · 133 Stat. 2534
Substituted · 26 U.S.C. § 403(b)(7)(A)
Pub. L. 116–94, § 109(c)(2), substituted “if the amounts are to be invested in regulated investment company stock to be held in that custodial account, and under the custodial account—” for “if—” and cls. (i) and (ii) for former cls. (i) and (ii) which read as follows:
Source evidence
Code amendment note
Subsec. (b)(7)(A). Pub. L. 116–94, § 109(c)(2), substituted “if the amounts are to be invested in regulated investment company stock to be held in that custodial account, and under the custodial account—” for “if—” and cls. (i) and (ii) for former cls. (i) and (ii) which read as follows:
“(i) the amounts are to be invested in regulated investment company stock to be held in that custodial account, and “(ii) under the custodial account no such amounts may be paid or made available to any distributee (unless such amount is a distribution to which section 72(t)(2)(G) applies) before the employee dies, attains age 59½, has a severance from employment, becomes disabled (within the meaning of section 72(m)(7)), or in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)), encounters financial hardship.”
Enacted provision · exact public law section
Sec. 109. (a) Flexibility With Respect to the Crossing of H–2B Nonimmigrants Working in the Seafood Industry.— (1) In general.— Subject to paragraph (2), if a petition for H–2B nonimmigrants filed by an employer in the seafood industry is granted, the employer may bring the nonimmigrants described in the petition into the United States at any time during the 120-day period beginning on the start date for which the employer is seeking the services of the nonimmigrants without filing another petition. (2) Requirements for crossings after 90th day.— An employer in the seafood industry may not bring H–2B nonimmigrants into the United States after the date that is 90 days after the start date for which the employer is seeking the services of the nonimmigrants unless the employer— (A) completes a new assessment of the local labor market by— (i) listing job orders in local newspapers on 2 separate Sundays; and (ii) posting the job opportunity on the appropriate Department of Labor Electronic Job Registry and at the employer’s place of employment; and (B) offers the job to an equally or better qualified United States worker who— (i) applies for the job; and (ii) will be available at the time and place of need. (3) Exemption from rules with respect to staggering.— The Secretary of Labor shall not consider an employer in the seafood industry who brings H–2B nonimmigrants into the United States during the 120-day period specified in paragraph (1) to be staggering the date of need in violation of section 655.20(d) of title 20, Code of Federal Regulations, or any other applicable provision of law. (b) H–2B Nonimmigrants Defined.— In this section, the term “H–2B nonimmigrants” means aliens admitted to the United States pursuant to section 101(a)(15)(H)(ii)(B) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)(B)).
2019
Department of Labor Appropriations Act, 2020
Pub. L. 116–94 § 111(a) · 133 Stat. 2534
Inserted · 26 U.S.C. § 403(b)(9)(B)
Pub. L. 116–94, § 111(a), inserted “(including an employee described in section 414(e)(3)(B))” after “employee described in paragraph (1)”
Source evidence
Code amendment note
Subsec. (b)(9)(B). Pub. L. 116–94, § 111(a), inserted “(including an employee described in section 414(e)(3)(B))” after “employee described in paragraph (1)”.
Enacted provision · exact public law section
Sec. 111. None of the funds in this Act shall be used to enforce the definition of corresponding employment found in 20 CFR 655.5 or the three-fourths guarantee rule definition found in 20 CFR 655.20, or any references thereto. Further, for the purpose of regulating admission of temporary workers under the H–2B program, the definition of temporary need shall be that provided in 8 CFR 214.2(h)(6)(ii)(B).
2019
Department of Labor Appropriations Act, 2020
Pub. L. 116–94 § 109(c)(1) · 133 Stat. 2534
Added · 26 U.S.C. § 403(b)(11)(D)
Pub. L. 116–94, § 109(c)(1), added subpar. (D)
Source evidence
Code amendment note
Subsec. (b)(11)(D). Pub. L. 116–94, § 109(c)(1), added subpar. (D).
Enacted provision · exact public law section
Sec. 109. (a) Flexibility With Respect to the Crossing of H–2B Nonimmigrants Working in the Seafood Industry.— (1) In general.— Subject to paragraph (2), if a petition for H–2B nonimmigrants filed by an employer in the seafood industry is granted, the employer may bring the nonimmigrants described in the petition into the United States at any time during the 120-day period beginning on the start date for which the employer is seeking the services of the nonimmigrants without filing another petition. (2) Requirements for crossings after 90th day.— An employer in the seafood industry may not bring H–2B nonimmigrants into the United States after the date that is 90 days after the start date for which the employer is seeking the services of the nonimmigrants unless the employer— (A) completes a new assessment of the local labor market by— (i) listing job orders in local newspapers on 2 separate Sundays; and (ii) posting the job opportunity on the appropriate Department of Labor Electronic Job Registry and at the employer’s place of employment; and (B) offers the job to an equally or better qualified United States worker who— (i) applies for the job; and (ii) will be available at the time and place of need. (3) Exemption from rules with respect to staggering.— The Secretary of Labor shall not consider an employer in the seafood industry who brings H–2B nonimmigrants into the United States during the 120-day period specified in paragraph (1) to be staggering the date of need in violation of section 655.20(d) of title 20, Code of Federal Regulations, or any other applicable provision of law. (b) H–2B Nonimmigrants Defined.— In this section, the term “H–2B nonimmigrants” means aliens admitted to the United States pursuant to section 101(a)(15)(H)(ii)(B) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)(B)).
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 334(b)(2) · 136 Stat. 4459
Added · 26 U.S.C. § 403(a)(6)
Pub. L. 117–328, § 334(b)(2), added par. (6)
Source evidence
Code amendment note
Subsec. (a)(6). Pub. L. 117–328, § 334(b)(2), added par. (6).
Enacted provision · exact public law section
(2) Section 403(a) is amended by adding at the end the following new paragraph: “(6) Qualified long-term care distributions.— An annuity contract shall not fail to be subject to this subsection solely by reason of allowing distributions to which section 401(a)(39) applies.” .
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, 2023
Pub. L. 117–328 § 128(b) · 136 Stat. 4459
Struck · 26 U.S.C. § 403(b)(7)
Pub. L. 117–328, § 128(b), struck out “for regulated investment company stock” after “Custodial accounts” in heading
Source evidence
Code amendment note
Subsec. (b)(7). Pub. L. 117–328, § 128(b), struck out “for regulated investment company stock” after “Custodial accounts” in heading.
Enacted provision · exact public law section
Sec. 128. For an additional amount for the accounts and in the amounts specified for planning and design, unspecified minor construction, and authorized major construction projects, for construction improvements to Department of Defense laboratory facilities, to remain available until September 30, 2027: “Military Construction, Army”, $20,000,000; “Military Construction, Navy and Marine Corps”, $10,000,000; and “Military Construction, Air Force”, $90,000,000: Provided, Deadline. Expenditure plan. That not later than 60 days after enactment of this Act, the Secretary of the military department concerned, or their designee, shall submit to the Committees on Appropriations of both Houses of Congress an expenditure plan for funds provided under this section: Provided further, Approvals. That the Secretary of the military department concerned may not obligate or expend any funds prior to approval by the Committees on Appropriations of both Houses of Congress of the expenditure plan required by this section.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, 2023
Pub. L. 117–328 § 128(a) · 136 Stat. 4459
Substituted · 26 U.S.C. § 403(b)(7)(A)
Pub. L. 117–328, § 128(a), in introductory provisions, substituted “if the amounts are to be held in that custodial account and are invested in regulated investment company stock or a group trust intended to satisfy the requirements of Internal Revenue Service Revenue Ruling 81–100 (or any successor guidance)” for “if the amounts are to be invested in regulated investment company stock to be held in that custodial account”
Source evidence
Code amendment note
Subsec. (b)(7)(A). Pub. L. 117–328, § 128(a), in introductory provisions, substituted “if the amounts are to be held in that custodial account and are invested in regulated investment company stock or a group trust intended to satisfy the requirements of Internal Revenue Service Revenue Ruling 81–100 (or any successor guidance)” for “if the amounts are to be invested in regulated investment company stock to be held in that custodial account”.
Enacted provision · exact public law section
Sec. 128. For an additional amount for the accounts and in the amounts specified for planning and design, unspecified minor construction, and authorized major construction projects, for construction improvements to Department of Defense laboratory facilities, to remain available until September 30, 2027: “Military Construction, Army”, $20,000,000; “Military Construction, Navy and Marine Corps”, $10,000,000; and “Military Construction, Air Force”, $90,000,000: Provided, Deadline. Expenditure plan. That not later than 60 days after enactment of this Act, the Secretary of the military department concerned, or their designee, shall submit to the Committees on Appropriations of both Houses of Congress an expenditure plan for funds provided under this section: Provided further, Approvals. That the Secretary of the military department concerned may not obligate or expend any funds prior to approval by the Committees on Appropriations of both Houses of Congress of the expenditure plan required by this section.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Financial Services and General Government Appropriations Act, 2023
Pub. L. 117–328 § 602(b)(1) · 136 Stat. 4459
Substituted · 26 U.S.C. § 403(b)(7)(A)(i)(V)
Pub. L. 117–328, § 602(b)(1), substituted “subject to the provisions of paragraph (17)” for “in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D))”
Source evidence
Code amendment note
Subsec. (b)(7)(A)(i)(V). Pub. L. 117–328, § 602(b)(1), substituted “subject to the provisions of paragraph (17)” for “in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D))”.
Enacted provision · exact public law section
Sec. 602. None of the funds appropriated in this Act shall remain available for obligation beyond the current fiscal year, nor may any be transferred to other appropriations, except for transfers made pursuant to the authority in section 3173(d) of title 40, United States Code, unless expressly so provided herein.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 334(b)(3) · 136 Stat. 4459
Added · 26 U.S.C. § 403(b)(7)(A)(i)(VII)
Pub. L. 117–328, § 334(b)(3), added subcl. (VII)
Source evidence
Code amendment note
Subsec. (b)(7)(A)(i)(VII). Pub. L. 117–328, § 334(b)(3), added subcl. (VII).
Enacted provision · exact public law section
(3) Section 403(b)(7)(A)(i) is amended by striking “or” at the end of subclause (V), by striking “and” at the end of subclause (VI) and inserting “or” and by adding at the end the following new subclause: “(VII) as provided for distributions to which section 401(a)(39) applies, and” .
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Department of Education Appropriations Act, 2023
Pub. L. 117–328 § 312(b)(1) · 136 Stat. 4459
Added · 26 U.S.C. § 403(b)(7)(D)
Pub. L. 117–328, § 312(b)(1), added subpar. (D)
Source evidence
Code amendment note
Subsec. (b)(7)(D). Pub. L. 117–328, § 312(b)(1), added subpar. (D).
Enacted provision · exact public law section
Sec. 312. Of the amounts appropriated in this Act for “Institute of Education Sciences”, $19,000,000 shall be available for the Secretary of Education (“the Secretary”) to provide support services to the Institute of Education Sciences (including, but not limited to information technology services, lease or procurement of office space, human resource services, financial management services, financial systems support, budget formulation and execution, legal counsel, equal employment opportunity services, physical security, facilities management, acquisition and contract management, grants administration and policy, and enterprise risk management): Provided, That the Secretary shall calculate the actual amounts obligated and expended for such support services by using a standard Department of Education methodology for allocating the cost of all such support services: Provided further, That the Secretary may transfer any amounts available for IES support services in excess of actual amounts needed for IES support services, as so calculated, to the “Program Administration” account from the “Institute of Education Sciences” account: Provided further, That in order to address any shortfall between amounts available for IES support services and amounts needed for IES support services, as so calculated, the Secretary may transfer necessary amounts to the “Institute of Education Sciences” account from the “Program Administration” account: Provided further, Notifications. Time period. That the Committees on Appropriations of the House of Representatives and the Senate are notified at least 14 days in advance of any transfer made pursuant to this section.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Financial Services and General Government Appropriations Act, 2023
Pub. L. 117–328 § 602(b)(2)(B) · 136 Stat. 4459
Struck · 26 U.S.C. § 403(b)(11)
Pub. L. 117–328, § 602(b)(2)(B), in concluding provisions, struck out “Such contract may not provide for the distribution of any income attributable to such contributions in the case of hardship.” before “In determining”
Source evidence
Code amendment note
Subsec. (b)(11). Pub. L. 117–328, § 602(b)(2)(B), in concluding provisions, struck out “Such contract may not provide for the distribution of any income attributable to such contributions in the case of hardship.” before “In determining”.
Enacted provision · exact public law section
Sec. 602. None of the funds appropriated in this Act shall remain available for obligation beyond the current fiscal year, nor may any be transferred to other appropriations, except for transfers made pursuant to the authority in section 3173(d) of title 40, United States Code, unless expressly so provided herein.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Department of Education Appropriations Act, 2023
Pub. L. 117–328 § 312(b)(2) · 136 Stat. 4459
Inserted · 26 U.S.C. § 403(b)(11)
Pub. L. 117–328, § 312(b)(2), in concluding provisions, inserted at end “In determining whether a distribution is upon hardship of an employee, the administrator of the plan may rely on a written certification by the employee that the distribution is on account of a financial need of a type which is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and is not in excess of the amount required to satisfy such financial need, and that the employee has no alternative means reasonably available to satisfy such financial need. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee’s certification, and for procedures for addressing cases of employee misrepresentation.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 117–328, § 312(b)(2), in concluding provisions, inserted at end “In determining whether a distribution is upon hardship of an employee, the administrator of the plan may rely on a written certification by the employee that the distribution is on account of a financial need of a type which is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and is not in excess of the amount required to satisfy such financial need, and that the employee has no alternative means reasonably available to satisfy such financial need. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee’s certification, and for procedures for addressing cases of employee misrepresentation.”
Enacted provision · exact public law section
Sec. 312. Of the amounts appropriated in this Act for “Institute of Education Sciences”, $19,000,000 shall be available for the Secretary of Education (“the Secretary”) to provide support services to the Institute of Education Sciences (including, but not limited to information technology services, lease or procurement of office space, human resource services, financial management services, financial systems support, budget formulation and execution, legal counsel, equal employment opportunity services, physical security, facilities management, acquisition and contract management, grants administration and policy, and enterprise risk management): Provided, That the Secretary shall calculate the actual amounts obligated and expended for such support services by using a standard Department of Education methodology for allocating the cost of all such support services: Provided further, That the Secretary may transfer any amounts available for IES support services in excess of actual amounts needed for IES support services, as so calculated, to the “Program Administration” account from the “Institute of Education Sciences” account: Provided further, That in order to address any shortfall between amounts available for IES support services and amounts needed for IES support services, as so calculated, the Secretary may transfer necessary amounts to the “Institute of Education Sciences” account from the “Program Administration” account: Provided further, Notifications. Time period. That the Committees on Appropriations of the House of Representatives and the Senate are notified at least 14 days in advance of any transfer made pursuant to this section.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Financial Services and General Government Appropriations Act, 2023
Pub. L. 117–328 § 602(b)(2)(A) · 136 Stat. 4459
Substituted · 26 U.S.C. § 403(b)(11)(B)
Pub. L. 117–328, § 602(b)(2)(A), substituted “subject to the provisions of paragraph (17), in” for “in”
Source evidence
Code amendment note
Subsec. (b)(11)(B). Pub. L. 117–328, § 602(b)(2)(A), substituted “subject to the provisions of paragraph (17), in” for “in”.
Enacted provision · exact public law section
Sec. 602. None of the funds appropriated in this Act shall remain available for obligation beyond the current fiscal year, nor may any be transferred to other appropriations, except for transfers made pursuant to the authority in section 3173(d) of title 40, United States Code, unless expressly so provided herein.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 334(b)(4) · 136 Stat. 4459
Added · 26 U.S.C. § 403(b)(11)(E)
Pub. L. 117–328, § 334(b)(4), added subpar. (E)
Source evidence
Code amendment note
Subsec. (b)(11)(E). Pub. L. 117–328, § 334(b)(4), added subpar. (E).
Enacted provision · exact public law section
(4) Section 403(b)(11) is amended by striking “or” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting “, or”, and by inserting after subparagraph (D) the following new subparagraph: “(E) for distributions to which section 401(a)(39) applies.” .
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Department of the Treasury Appropriations Act, 2023
Pub. L. 117–328 § 125(a)(2)(B)(i) · 136 Stat. 4459
Inserted · 26 U.S.C. § 403(b)(12)(A)
Pub. L. 117–328, § 125(a)(2)(B)(i), which directed that the “last sentence” of subpar. (A) be amended by inserting “and section 202(c) of the Employee Retirement Income Security Act of 1974” after “under section 410(b)(4)”, was executed by making the insertion after “under section 410(b)(4)” in what had been the last sentence of concluding provisions prior to amendments by Pub. L. 117–328, §§ 110(e), 113(b), to reflect the probable intent of Congress. See notes below
Source evidence
Code amendment note
Subsec. (b)(12)(A). Pub. L. 117–328, § 125(a)(2)(B)(i), which directed that the “last sentence” of subpar. (A) be amended by inserting “and section 202(c) of the Employee Retirement Income Security Act of 1974” after “under section 410(b)(4)”, was executed by making the insertion after “under section 410(b)(4)” in what had been the last sentence of concluding provisions prior to amendments by Pub. L. 117–328, §§ 110(e), 113(b), to reflect the probable intent of Congress. See notes below.
Enacted provision · exact public law section
(a) Not later than 60 days after the end of each quarter, the Office of Financial Stability and the Office of Financial Research shall submit reports on their activities to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Financial Services of the House of Representatives, and the Senate Committee on Banking, Housing, and Urban Affairs.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Department of the Treasury Appropriations Act, 2023
Pub. L. 117–328 § 113(b) · 136 Stat. 4459
Inserted · 26 U.S.C. § 403(b)(12)(A)
Pub. L. 117–328, § 113(b), in concluding provisions, inserted at end “A plan shall not fail to satisfy clause (ii) solely by reason of offering a de minimis financial incentive (not derived from plan assets) to employees to elect to have the employer make contributions pursuant to a salary reduction agreement.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 117–328, § 113(b), in concluding provisions, inserted at end “A plan shall not fail to satisfy clause (ii) solely by reason of offering a de minimis financial incentive (not derived from plan assets) to employees to elect to have the employer make contributions pursuant to a salary reduction agreement.”
Enacted provision · exact public law section
Sec. 113. Appropriations to the Department of the Treasury in this Act shall be available for uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901), including maintenance, repairs, and cleaning; purchase of insurance for official motor vehicles operated in foreign countries; purchase of motor vehicles without regard to the general purchase price limitations for vehicles purchased and used overseas for the current fiscal year; entering into contracts with the Department of State for the furnishing of health and medical services to employees and their dependents serving in foreign countries; and services authorized by 5 U.S.C. 3109.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Department of Commerce Appropriations Act, 2023
Pub. L. 117–328 § 110(e) · 136 Stat. 4459
Inserted · 26 U.S.C. § 403(b)(12)(A)
Pub. L. 117–328, § 110(e), in concluding provisions, inserted at end “The fact that the employer offers matching contributions on account of qualified student loan payments as described in section 401(m)(13) shall not be taken into account in determining whether the arrangement satisfies the requirements of clause (ii) (and any regulation thereunder).”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 117–328, § 110(e), in concluding provisions, inserted at end “The fact that the employer offers matching contributions on account of qualified student loan payments as described in section 401(m)(13) shall not be taken into account in determining whether the arrangement satisfies the requirements of clause (ii) (and any regulation thereunder).”
Enacted provision · exact public law section
Sec. 110. Amounts provided by this Act or by any prior appropriations Act that remain available for obligation, for necessary expenses of the programs of the Economics and Statistics Administration of the Department of Commerce, including amounts provided for programs of the Bureau of Economic Analysis and the Bureau of the Census, shall be available for expenses of cooperative agreements with appropriate entities, including any Federal, State, or local governmental unit, or institution of higher education, to aid and promote statistical, research, and methodology activities which further the purposes for which such amounts have been made available.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Department of the Treasury Appropriations Act, 2023
Pub. L. 117–328 § 125(a)(2)(A) · 136 Stat. 4459
Added · 26 U.S.C. § 403(b)(12)(D)
Pub. L. 117–328, § 125(a)(2)(A), added subpar. (D)
Source evidence
Code amendment note
Subsec. (b)(12)(D). Pub. L. 117–328, § 125(a)(2)(A), added subpar. (D).
Enacted provision · exact public law section
(a) Not later than 60 days after the end of each quarter, the Office of Financial Stability and the Office of Financial Research shall submit reports on their activities to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Financial Services of the House of Representatives, and the Senate Committee on Banking, Housing, and Urban Affairs.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Department of Commerce Appropriations Act, 2023
Pub. L. 117–328 § 106(a) · 136 Stat. 4459
Added · 26 U.S.C. § 403(b)(15)
Pub. L. 117–328, § 106(a), added par. (15)
Source evidence
Code amendment note
Subsec. (b)(15). Pub. L. 117–328, § 106(a), added par. (15).
Enacted provision · exact public law section
Sec. 106. Nothing in this title shall be construed to prevent a grant recipient from deterring child pornography, copyright infringement, or any other unlawful activity over its networks.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Department of the Treasury Appropriations Act, 2023
Pub. L. 117–328 § 121(b) · 136 Stat. 4459
Added · 26 U.S.C. § 403(b)(16)
Pub. L. 117–328, § 121(b), added par. (16)
Source evidence
Code amendment note
Subsec. (b)(16). Pub. L. 117–328, § 121(b), added par. (16).
Enacted provision · exact public law section
Sec. 121. Not to exceed $5,000 shall be made available from the Bureau of Engraving and Printing’s Industrial Revolving Fund for necessary official reception and representation expenses.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”
2022
Financial Services and General Government Appropriations Act, 2023
Pub. L. 117–328 § 602(a) · 136 Stat. 4459
Added · 26 U.S.C. § 403(b)(17)
Pub. L. 117–328, § 602(a), added par. (17)
Source evidence
Code amendment note
Subsec. (b)(17). Pub. L. 117–328, § 602(a), added par. (17).
Enacted provision · exact public law section
Sec. 602. None of the funds appropriated in this Act shall remain available for obligation beyond the current fiscal year, nor may any be transferred to other appropriations, except for transfers made pursuant to the authority in section 3173(d) of title 40, United States Code, unless expressly so provided herein.
Effective date note
Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.” Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].” Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title. Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title. Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”

139 of 140 references resolved to an enrolled provision · 1 partial

Editorial Notes

References in Text

Section 202(c) of the Employee Retirement Income Security Act of 1974, referred to in subsec. (b)(12)(A), (D)(i), is classified to section 1052(c) of Title 29, Labor.

Amendments1958–2022 · 29 rounds

2022

Subsec. (a)(6). Pub. L. 117–328, § 334(b)(2), added par. (6).

Subsec. (b)(7). Pub. L. 117–328, § 128(b), struck out “for regulated investment company stock” after “Custodial accounts” in heading.

Subsec. (b)(7)(A). Pub. L. 117–328, § 128(a), in introductory provisions, substituted “if the amounts are to be held in that custodial account and are invested in regulated investment company stock or a group trust intended to satisfy the requirements of Internal Revenue Service Revenue Ruling 81–100 (or any successor guidance)” for “if the amounts are to be invested in regulated investment company stock to be held in that custodial account”.

Subsec. (b)(7)(A)(i)(V). Pub. L. 117–328, § 602(b)(1), substituted “subject to the provisions of paragraph (17)” for “in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D))”.

Subsec. (b)(7)(A)(i)(VII). Pub. L. 117–328, § 334(b)(3), added subcl. (VII).

Subsec. (b)(7)(D). Pub. L. 117–328, § 312(b)(1), added subpar. (D).

Subsec. (b)(11). Pub. L. 117–328, § 602(b)(2)(B), in concluding provisions, struck out “Such contract may not provide for the distribution of any income attributable to such contributions in the case of hardship.” before “In determining”.

Pub. L. 117–328, § 312(b)(2), in concluding provisions, inserted at end “In determining whether a distribution is upon hardship of an employee, the administrator of the plan may rely on a written certification by the employee that the distribution is on account of a financial need of a type which is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and is not in excess of the amount required to satisfy such financial need, and that the employee has no alternative means reasonably available to satisfy such financial need. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee’s certification, and for procedures for addressing cases of employee misrepresentation.”

Subsec. (b)(11)(B). Pub. L. 117–328, § 602(b)(2)(A), substituted “subject to the provisions of paragraph (17), in” for “in”.

Subsec. (b)(11)(E). Pub. L. 117–328, § 334(b)(4), added subpar. (E).

Subsec. (b)(12)(A). Pub. L. 117–328, § 125(a)(2)(B)(i), which directed that the “last sentence” of subpar. (A) be amended by inserting “and section 202(c) of the Employee Retirement Income Security Act of 1974” after “under section 410(b)(4)”, was executed by making the insertion after “under section 410(b)(4)” in what had been the last sentence of concluding provisions prior to amendments by Pub. L. 117–328, §§ 110(e), 113(b), to reflect the probable intent of Congress. See notes below.

Pub. L. 117–328, § 113(b), in concluding provisions, inserted at end “A plan shall not fail to satisfy clause (ii) solely by reason of offering a de minimis financial incentive (not derived from plan assets) to employees to elect to have the employer make contributions pursuant to a salary reduction agreement.”

Pub. L. 117–328, § 110(e), in concluding provisions, inserted at end “The fact that the employer offers matching contributions on account of qualified student loan payments as described in section 401(m)(13) shall not be taken into account in determining whether the arrangement satisfies the requirements of clause (ii) (and any regulation thereunder).”

Subsec. (b)(12)(D). Pub. L. 117–328, § 125(a)(2)(A), added subpar. (D).

Subsec. (b)(15). Pub. L. 117–328, § 106(a), added par. (15).

Subsec. (b)(16). Pub. L. 117–328, § 121(b), added par. (16).

Subsec. (b)(17). Pub. L. 117–328, § 602(a), added par. (17).

2019

Subsec. (b)(7)(A). Pub. L. 116–94, § 109(c)(2), substituted “if the amounts are to be invested in regulated investment company stock to be held in that custodial account, and under the custodial account—” for “if—” and cls. (i) and (ii) for former cls. (i) and (ii) which read as follows:

“(i) the amounts are to be invested in regulated investment company stock to be held in that custodial account, and

“(ii) under the custodial account no such amounts may be paid or made available to any distributee (unless such amount is a distribution to which section 72(t)(2)(G) applies) before the employee dies, attains age 59½, has a severance from employment, becomes disabled (within the meaning of section 72(m)(7)), or in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)), encounters financial hardship.”

Subsec. (b)(9)(B). Pub. L. 116–94, § 111(a), inserted “(including an employee described in section 414(e)(3)(B))” after “employee described in paragraph (1)”.

Subsec. (b)(11)(D). Pub. L. 116–94, § 109(c)(1), added subpar. (D).

2008

Subsec. (b)(14). Pub. L. 110–245 added par. (14).

2006

Subsec. (a)(2). Pub. L. 109–280, § 845(b)(1), added par. (2).

Subsec. (a)(4)(B). Pub. L. 109–280, § 829(a)(2), inserted “and (11)” after “(7)”.

Subsec. (b)(2). Pub. L. 109–280, § 845(b)(2), added par. (2).

Subsec. (b)(7)(A)(ii). Pub. L. 109–280, § 827(b)(2), inserted “(unless such amount is a distribution to which section 72(t)(2)(G) applies)” after “distributee”.

Subsec. (b)(8)(B). Pub. L. 109–280, § 829(a)(3), substituted “, (9), and (11)” for “and (9)”.

Subsec. (b)(11)(C). Pub. L. 109–280, § 827(b)(3), added subpar. (C).

2005

Subsec. (b)(9)(B). Pub. L. 109–135 inserted “or” before “a convention”.

2004

Subsec. (a)(4)(B). Pub. L. 108–311, § 404(e), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (2) through (7) of section 402(c) shall apply for purposes of subparagraph (A).”

Subsec. (b)(7)(A)(ii). Pub. L. 108–311, § 408(a)(11), substituted “3121(a)(5)(D)” for “3121(a)(1)(D)”.

2002

Subsec. (b)(1). Pub. L. 107–147, § 411(p)(1), inserted concluding provisions and struck out former concluding provisions which read as follows: “then amounts contributed by such employer for such annuity contract on or after such rights become nonforfeitable shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such amounts does not exceed the applicable limit under section 415. The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities). For purposes of applying the rules of this subsection to amounts contributed by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or section 408(d)(3)(A)(ii) shall not be considered contributed by such employer.”

Subsec. (b)(3). Pub. L. 107–147, § 411(p)(3), in first sentence, inserted “, and which precedes the taxable year by no more than five years” before period at end and, in second sentence, struck out “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” after “this subsection applies”.

Subsec. (b)(6). Pub. L. 107–147, § 411(p)(2), struck out heading and text of par. (6). Text read as follows: “For purposes of this subsection and section 72(f) (relating to special rules for computing employees’ contributions to annuity contracts), if rights of the employee under an annuity contract described in subparagraphs (A) and (B) of paragraph (1) change from forfeitable to nonforfeitable rights, then the amount (determined without regard to this subsection) includible in gross income by reason of such change shall be treated as an amount contributed by the employer for such annuity contract as of the time such rights become nonforfeitable.”

2001

Subsec. (b)(1). Pub. L. 107–16, § 642(b)(1), substituted “section 408(d)(3)(A)(ii)” for “section 408(d)(3)(A)(iii)” in concluding provisions.

Pub. L. 107–16, § 632(a)(2)(A), substituted “the applicable limit under section 415” for “the exclusion allowance for such taxable year” in concluding provisions.

Subsec. (b)(2). Pub. L. 107–16, § 632(a)(2)(B), struck out par. (2), which described exclusion allowance for purposes of subsec. (b) providing general criteria, determination under section 415 rules, number of years of service for duly ordained, commissioned, or licensed ministers or lay employees, and alternative exclusion allowance for such ministers or lay employees.

Subsec. (b)(3). Pub. L. 107–16, § 632(a)(2)(C), inserted “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” before period at end of second sentence.

Subsec. (b)(7)(A)(ii). Pub. L. 107–16, § 646(a)(2)(A), substituted “has a severance from employment” for “separates from service”.

Subsec. (b)(8)(A)(ii). Pub. L. 107–16, § 641(b)(1), substituted “such distribution to an eligible retirement plan described in section 402(c)(8)(B), and” for “such distribution to an individual retirement plan or to an annuity contract described in paragraph (1), and”.

Subsec. (b)(8)(B). Pub. L. 107–16, § 641(e)(7), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (2) through (7) of section 402(c) (including paragraph (4)(C) thereof) shall apply for purposes of subparagraph (A).”

Subsec. (b)(11). Pub. L. 107–16, § 646(a)(2)(B), substituted “severance from employment” for “separation from service” in heading.

Subsec. (b)(11)(A). Pub. L. 107–16, § 646(a)(2)(A), substituted “has a severance from employment” for “separates from service”.

Subsec. (b)(13). Pub. L. 107–16, § 647(a), added par. (13).

2000

Subsec. (b)(3)(B). Pub. L. 106–554 substituted “section 125, 132(f)(4), or” for “section 125 or”.

1998

Subsec. (b)(8)(B). Pub. L. 105–206 inserted “(including paragraph (4)(C) thereof)” after “section 402(c)”.

1997

Subsec. (b)(1)(A)(iii). Pub. L. 105–34, § 1601(d)(6)(B), added cl. (iii).

Subsec. (b)(3). Pub. L. 105–34, § 1504(a)(1), inserted at end “Such term includes—” and subpars. (A) and (B).

Subsec. (b)(12)(C). Pub. L. 105–34, § 1505(c), added subpar. (C).

1996

Subsec. (b)(1)(E). Pub. L. 104–188, § 1450(c)(1), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: “in the case of a contract purchased under a plan which provides a salary reduction agreement, the plan meets the requirements of section 401(a)(30),”.

Subsec. (b)(10). Pub. L. 104–188, § 1704(t)(69), substituted “a direct” for “an direct” in last sentence.

1992

Subsec. (a)(4)(A)(i). Pub. L. 102–318, § 521(b)(12)(A), inserted before comma at end “in an eligible rollover distribution (within the meaning of section 402(c)(4))”.

Subsec. (a)(4)(B). Pub. L. 102–318, § 521(b)(12)(B), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Rules similar to the rules of subparagraphs (B) through (G) of section 402(a)(5) and of paragraphs (6) and (7) of section 402(a) shall apply for purposes of subparagraph (A).”

Subsec. (a)(5). Pub. L. 102–318, § 522(c)(2), added par. (5).

Subsec. (b)(8)(A)(i). Pub. L. 102–318, § 521(b)(13)(A), inserted before comma at end “in an eligible rollover distribution (within the meaning of section 402(c)(4))”.

Subsec. (b)(8)(B) to (D). Pub. L. 102–318, § 521(b)(13)(B), added subpar. (B) and struck out former subpars. (B) to (D), which related to special rules for partial distributions, applicability of certain similar rules, and eligibility for rollover treatment of required distributions.

Subsec. (b)(10). Pub. L. 102–318, § 522(a)(3), (c)(3), substituted “sections 401(a)(9) and 401(a)(31)” for “section 401(a)(9)” and inserted at end “Any amount transferred in an direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of the transfer.”

1990

Subsec. (b)(12)(A). Pub. L. 101–508 inserted “involving a one-time irrevocable election” after “similar arrangement” in second sentence.

1988

Subsec. (b)(1)(D). Pub. L. 100–647, § 1011(m)(1)(B), substituted “paragraph (12)” for “paragraph (10)”.

Subsec. (b)(1)(E). Pub. L. 100–647, § 1011(c)(7)(B), added subpar. (E).

Subsec. (b)(10). Pub. L. 100–647, § 1011(m)(1)(A), redesignated par. (10), relating to nondiscrimination requirements, as (12).

Subsec. (b)(12). Pub. L. 100–647, § 1011(m)(1)(A), redesignated par. (10), relating to nondiscrimination requirements, as (12).

Subsec. (b)(12)(A). Pub. L. 100–647, § 1011(m)(2), inserted “(17),” after “paragraphs (4), (5),” and “, section 401(m),” after “of section 401(a)” in cl. (i).

Pub. L. 100–647, § 1011(c)(12), inserted after cl. (ii) “For purposes of clause (i), a contribution shall be treated as not made pursuant to a salary reduction agreement if under the agreement it is made pursuant to a 1-time irrevocable election made by the employee at the time of initial eligibility to participate in the agreement or is made pursuant to a similar arrangement specified in regulations.”

Pub. L. 100–647, § 6052(a)(1), amended last sentence generally. Prior to amendment, last sentence read as follows: “For purposes of this subparagraph, students who normally work less than 20 hours per week may (subject to the conditions applicable under section 410(b)(4)) be excluded.”

1986

Subsec. (a)(1). Pub. L. 99–514, § 1122(d)(1), substituted “Distributee taxable under section 72” for “General rule” in heading and amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Except as provided in paragraph (2), if an annuity contract is purchased by an employer for an employee under a plan which meets the requirements of section 404(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section), the employee shall include in his gross income the amounts received under such contract for the year received as provided in section 72 (relating to annuities).”

Subsec. (a)(2). Pub. L. 99–514, § 1122(b)(1)(B), struck out par. (2) which read as follows:

“(A) General rule

“If—

“(i) an annuity contract is purchased by an employer for an employee under a plan described in paragraph (1);

“(ii) such plan requires that refunds of contributions with respect to annuity contracts purchased under such plan be used to reduce subsequent premiums on the contracts under the plan; and

“(iii) a lump sum distribution (as defined in section 402(e)(4)(A)) is paid to the recipient,

so much of the total taxable amount (as defined in section 402(e)(4)(D)) of such distribution as is equal to the product of such total taxable amount multiplied by the fraction described in section 402(a)(2) shall be treated as a gain from the sale or exchange of a capital asset held for more than 6 months. For purposes of this paragraph, in the case of an individual who is an employee without regard to section 401(c)(1), determination of whether or not any distribution is a lump sum distribution shall be made without regard to the requirement that an election be made under subsection (e)(4)(B) of section 402, but no distribution to any taxpayer other than an individual, estate, or trust may be treated as a lump sum distribution under this paragraph.

“(B) Cross reference

“For imposition of separate tax on ordinary income portion of lump sum distribution, see section 402(e).”

Subsec. (a)(4)(B). Pub. L. 99–514, § 1852(a)(5)(B)(i), substituted “through (G)” for “through (F)”.

Subsec. (b)(1). Pub. L. 99–514, § 1122(d)(2), amended second sentence generally. Prior to amendment, second sentence read as follows: “The employee shall include in his gross income the amounts received under such contract for the year received as provided in section 72 (relating to annuities)”.

Subsec. (b)(1)(D). Pub. L. 99–514, § 1120(a), added subpar. (D).

Subsec. (b)(7)(A)(ii). Pub. L. 99–514, § 1123(c)(2), inserted “in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(1)(D)),” after “section 72(m)(7)), or”.

Subsec. (b)(7)(D). Pub. L. 99–514, § 1852(a)(3)(B), struck out subpar. (D) “Distribution requirements” which read as follows: “For purposes of determining when the interest of an employee in a custodial account must be distributed, such account shall be treated in the same manner as an annuity contract.”

Subsec. (b)(8)(C). Pub. L. 99–514, § 1852(b)(10), inserted “and” before “(F)(i)”.

Subsec. (b)(8)(D). Pub. L. 99–514, § 1852(a)(5)(B)(ii), added subpar. (D).

Subsec. (b)(10). Pub. L. 99–514, § 1120(b), added par. (10) relating to nondiscrimination requirements.

Pub. L. 99–514, § 1852(a)(3)(A), added par. (10) relating to distribution requirements.

Subsec. (b)(11). Pub. L. 99–514, § 1123(c)(1), added par. (11).

Subsec. (c). Pub. L. 99–514, § 1122(d)(3), amended last sentence generally. Prior to amendment, last sentence read as follows: “The amount actually paid or made available to any beneficiary under such contract shall be taxable to him in the year in which so paid or made available under section 72 (relating to annuities).”

1984

Subsec. (a)(2)(A). Pub. L. 98–369, § 1001(b)(4), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below.

Subsec. (a)(4)(A)(i). Pub. L. 98–369, § 522(a)(2), substituted “any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him,” for “the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in a qualifying rollover distribution.”

Subsec. (a)(4)(B). Pub. L. 98–369, § 522(d)(9), substituted “(B) through (F)” for “(B) through (E)”.

Subsec. (b)(1). Pub. L. 98–369, § 491(d)(12), struck out “or 409(b)(3)(C)” after “408(d)(3)(A)(iii)”.

Subsec. (b)(7)(D). Pub. L. 98–369, § 521(c), added subpar. (D).

Subsec. (b)(8)(A)(i). Pub. L. 98–369, § 522(a)(3), substituted “any portion of the balance to the credit of an employee in an annuity contract described in paragraph (1) is paid to him” for “the balance to the credit of an employee is paid to him in a qualifying distribution”.

Subsec. (b)(8)(B). Pub. L. 98–369, § 522(d)(10), substituted provisions relating to special rules for partial distributions for provisions relating to definition of qualifying distributions.

Subsec. (b)(8)(C). Pub. L. 98–369, § 522(d)(11), substituted “(F)(i)” for “(D)(v), and (E)(i)”.

1983

Subsec. (b)(3). Pub. L. 98–21 substituted “section 911” for “sections 105(d) and 911”.

Subsec. (b)(8)(C). Pub. L. 97–448 substituted “subparagraphs (B), (C), (D)(v), and (E)(i) of section 402(a)(5)” for “subparagraphs (B), (C), and (E)(i) of section 402(a)(5)”.

1982

Subsec. (b)(2)(B). Pub. L. 97–248, § 251(a)(1), (c)(3), substituted “home health service agencies, and certain churches, etc.” for “and home health service agencies”, and “(under section 415 without regard to section 415(c)(8))” for “(under section 415)”.

Subsec. (b)(2)(C), (D). Pub. L. 97–248, § 251(a)(2), added subpars. (C) and (D).

Subsec. (b)(9). Pub. L. 97–248, § 251(b), added par. (9).

1981

Subsec. (b)(8)(B)(i). Pub. L. 97–34 inserted “, or 1 or more distributions of accumulated deductible employee contributions (within the meaning of section 72(o)(5))” after “subsection (a)”.

1980

Subsec. (b). Pub. L. 96–222 substituted in par. (1) “409(b)(3)(C)” for “409(d)(3)(C)”, and in par. (7)(A) “which satisfies” for “which satisfied”.

1978

Subsec. (a)(4). Pub. L. 95–600, § 157(g)(2), in subpar. (B) substituted “paragraphs (6) and (7)” for “paragraph (6)”.

Pub. L. 95–458, among other changes, substituted provision permitting tax free treatment for any portion of a lump sum distribution from a qualified retirement plan which is deposited in an individual retirement account or another qualifying plan for provision which required transfer of all such property received.

Subsec. (a)(5). Pub. L. 95–458 struck out par. (5) which related to special rules concerning time of termination of a profit-sharing plan and the treatment of the sale of a corporate subsidiary or assets as payment or distribution on account of termination of a plan of which an annuity trust was a part.

Subsec. (b)(1). Pub. L. 95–600, § 156(b), inserted provision relating to application of rules of this subsection to amounts contributed by an employer for a taxable year.

Subsec. (b)(7)(A). Pub. L. 95–600, § 154(a), struck out “the amounts are paid to provide a retirement benefit for that employee and are to be invested in regulated investment company stock to be held in that custodial account” after “contract for his employee if”, and added cls. (i) and (ii).

Subsec. (b)(8). Pub. L. 95–600, § 156(a), added par. (8).

1976

Subsec. (a)(2)(A). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”.

Pub. L. 94–455, § 1402(b) (1)(D), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.

Subsec. (a)(4). Pub. L. 94–455, § 1901(a)(58), reenacted provisions following subpar. (C) without substantive change.

Pub. L. 94–267, § 1(b)(2), substituted “a payment” for “the lump-sum distribution”.

Subsec. (a)(4)(A). Pub. L. 94–267, § 1(b)(1), restructured provisions by adding cl. (i) and designating existing provision as cl. (ii).

Subsec. (a)(5). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.

Pub. L. 94–267, § 1(b)(3), added par. (5).

Subsec. (b)(1)(A)(ii). Pub. L. 94–455, § 1901(b)(8)(A), substituted “educational organization described in section 170(b)(1)(A)(ii)” for “educational institution (as defined in section 151(e)(4))”.

Subsec. (b)(4)(B). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

Subsec. (b)(7)(C). Pub. L. 94–455, § 1504(a), struck out “, and which issues only redeemable stock” after “regulated investment company within the meaning of section 851(a)”.

1974

Subsec. (a)(2). Pub. L. 93–406, § 2005(b)(2), substituted “a lump sum distribution (as defined in section 4002(e)(4)(A)) is paid to the recipient” for “the total amounts payable by reason of an employee’s death or other separation from the service, or by reason of the death of an employee after the employee’s separation from the service, are paid to the payee within one taxable year of the payee” as cl. (iii) of subpar. (A), substituted “so much of the total taxable amount (as defined in section 402(e)(4)(D)) of such distribution as is equal to the product of such total taxable amount multiplied by the fraction described in section 402(a)(2) shall be treated as a gain from the sale or exchange of a capital asset held for more than 6 months. For purposes of this paragraph, in the case of an individual who is an employee without regard to section 401(c)(1), determination of whether or not any distribution is a lump sum distribution shall be made without regard to the requirement that an election be made under subsection (e)(4)(B) of section 402, but no distribution to any taxpayer other than an individual, estate, or trust may be treated as a lump sum distribution under this paragraph” for “then the amount of such payments, to the extent exceeding the amount contributed by the employee (determined by applying section 72(f)), which employee contributions shall be reduced by any amounts theretofore paid to him which were not includible in gross income, shall be considered a gain from the sale or exchange of a capital asset held for more than 6 months. This subparagraph shall not apply to amounts paid to any payee to the extent such amounts are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section 401(c)(1)” following cl. (iii) of subpar. (A), substituted provisions setting out a cross reference to section 402(e) for provisions defining “total amounts” as subpar. (B), and struck out subpar. (C) setting out limitations on capital gains treatment.

Subsec. (a)(4). Pub. L. 93–406, § 2002(g)(6), added par. (4).

Subsec. (b)(2). Pub. L. 93–406, § 2004(c)(4), designated existing provisions as subpar. (A) and added subpar. (B).

Subsec. (b)(7). Pub. L. 93–406, § 1022(e), added par. (7).

1969

Subsec. (a)(2)(C). Pub. L. 91–172, § 515(a)(2), added subpar. (C).

Subsec. (c). Pub. L. 91–172, § 321(b)(2), consolidated provisions of subsec. (c) providing for taxability of beneficiary under a nonqualified annuity, the employees gross income to include amount contributed by employer for annuity contract in the year in which amount is contributed, the amount to be included as provided in section 72 of this title and of subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, the gross income to include amount contributed by employer after Dec. 31, 1957, in the year of change from forfeitable to nonforfeitable rights, the new provisions including premiums paid by an employer in accordance with section 83, except that value of the contract shall be substituted for fair market value of the property for purposes of applying such section 83, such provision not to be applicable to that portion of premiums paid which is excluded from gross income under subsec. (b) of this section.

Subsec. (d). Pub. L. 91–172, § 321(b)(2), struck out subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, gross income of the employee to include (amount contributed by employer after Dec. 31, 1957), in year of change from forfeitable to nonforfeitable rights. See subsec. (c) of this section.

1964

Subsecs. (a)(1), (b)(1), (c). Pub. L. 88–272, § 232(e)(4)–(6), struck out “except that section 72(e)(3) shall not apply” after “(relating to annuities)”.

1962

Subsec. (a)(2)(A). Pub. L. 87–792, § 4(d)(1), (2), substituted “described in paragraph (1)” for “which meets the requirements of section 401(a)(3), (4), (5), and (6)” in cl. (i), and inserted sentence at end thereof providing that this subparagraph shall not apply to amounts paid to any payee to the extent such amounts are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section 401(c)(1).

Subsec. (a)(3). Pub. L. 87–792, § 4(d)(3), added par. (3).

1961

Subsec. (b). Pub. L. 87–370, § 3(a)(3), inserted “or public school” in heading.

Subsec. (b)(1)(A). Pub. L. 87–370, § 3(a)(1), included annuity contracts purchased for an employee, other than one described in clause (i) of this subpar., who performs services for an educational institution, as defined in section 151(e)(4) of this title, by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of either.

Subsec. (b)(3). Pub. L. 87–370, § (3)(a)(2), substituted “the employer described in paragraph (1)(A)” for “the employer described in section 501(c)(3) and exempt from tax under section 501(a)”.

1958

Subsec. (a)(1). Pub. L. 85–866, § 23(b), substituted “which meets the requirements of section 404(a)(2) (whether or not the employer deducts the amounts paid for the contract under such section),” for “with respect to which the employer’s contribution is deductible under section 404(a)(2), or if an annuity contract is purchased for an employee by an employer described in section 501(c)(3) which is exempt from tax under section 501(a),”.

Subsecs. (b) to (d). Pub. L. 85–866, § 23(a), added subsec. (b), redesignated former subsec. (b) as (c), and added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Pub. L. 117–328, div. T, title I, § 106(h)(1), Dec. 29, 2022, 136 Stat. 5289, provided that: “The amendments made by this section [amending this section, sections 6057 and 6058 of this title, and section 1002 of Title 29, Labor] shall apply to plan years beginning after December 31, 2022.”

Amendment by section 110(e) of Pub. L. 117–328 applicable to contributions made for plan years beginning after Dec. 31, 2023, see section 110(h) of Pub. L. 117–328, set out as a note under section 401 of this title.

Amendment by section 113(b) of Pub. L. 117–328 applicable with respect to plan years beginning after Dec. 29, 2022, see section 113(e) of Pub. L. 117–328, set out as a note under section 401 of this title.

Amendment by section 121(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title.

Amendment by section 125(a)(2)(A), (B)(i) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2024, see section 125(f)(1) of Pub. L. 117–328, set out as a note under section 401 of this title.

Pub. L. 117–328, div. T, title I, § 128(c), Dec. 29, 2022, 136 Stat. 5330, provided that: “The amendments made by this section [amending this section] shall apply to amounts invested after the date of the enactment of this Act [Dec. 29, 2022].”

Amendment by section 312(b) of Pub. L. 117–328 applicable to plan years beginning after Dec. 29, 2022, see section 312(d) of Pub. L. 117–328, set out as a note under section 401 of this title.

Amendment by section 334(b)(2)–(4) of Pub. L. 117–328 applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of Pub. L. 117–328, set out as a note under section 72 of this title.

Pub. L. 117–328, div. T, title VI, § 602(c), Dec. 29, 2022, 136 Stat. 5391, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”

Effective Date of 2019 Amendment

Amendment by section 109(c) of Pub. L. 116–94 applicable to plan years beginning after Dec. 31, 2019, see section 109(e) of Pub. L. 116–94, set out as a note under section 401 of this title.

Pub. L. 116–94, div. O, title I, § 111(b), Dec. 20, 2019, 133 Stat. 3152, provided that: “The amendment made by this section [amending this section] shall apply to years beginning before, on, or after the date of the enactment of this Act [Dec. 20, 2019].”

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–245 applicable with respect to deaths and disabilities occurring on or after Jan. 1, 2007, see section 104(d)(1) of Pub. L. 110–245, set out as a note under section 401 of this title.

Effective Date of 2006 Amendment

Amendment by section 827(b)(2), (3) of Pub. L. 109–280 applicable to distributions after Sept. 11, 2001, with waiver of limitations if refund or credit of overpayment of tax resulting from such amendment is prevented before the close of the 1-year period beginning on Aug. 17, 2006, see section 827(c) of Pub. L. 109–280, set out as a note under section 72 of this title.

Amendment by section 829(a)(2), (3) of Pub. L. 109–280 applicable to distributions after Dec. 31, 2006, see section 829(b) of Pub. L. 109–280, set out as a note under section 402 of this title.

Amendment by section 845(b)(1), (2) of Pub. L. 109–280 applicable to distributions in taxable years beginning after Dec. 31, 2006, see section 845(c) of Pub. L. 109–280, set out as a note under section 402 of this title.

Effective Date of 2004 Amendment

Amendment by section 404(e) of Pub. L. 108–311 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 404(f) of Pub. L. 108–311, set out as a note under section 45A of this title.

Effective Date of 2002 Amendment

Amendment by Pub. L. 107–147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 411(x) of Pub. L. 107–147, set out as a note under section 25B of this title.

Effective Date of 2001 Amendment

Amendment by section 632(a)(2) of Pub. L. 107–16 applicable to years beginning after Dec. 31, 2001, see section 632(a)(4) of Pub. L. 107–16, set out as a note under section 72 of this title.

Amendment by section 641(b)(1), (e)(7) 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.

Amendment by section 642(b)(1) of Pub. L. 107–16 applicable to distributions after Dec. 31, 2001, see section 642(c) of Pub. L. 107–16, set out as a note under section 408 of this title.

Amendment by section 646(a)(2) of Pub. L. 107–16 applicable to distributions after Dec. 31, 2001, see section 646(b) of Pub. L. 107–16, set out as a note under section 401 of this title.

Pub. L. 107–16, title VI, § 647(c), June 7, 2001, 115 Stat. 127, provided that: “The amendments made by this section [amending this section and section 457 of this title] shall apply to trustee-to-trustee transfers after December 31, 2001.”

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–554 effective as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 1(a)(7) [title III, § 314(g)] of Pub. L. 106–554, set out as a note under section 56 of this title.

Effective Date of 1998 Amendment

Amendment by section 6005 of Pub. L. 105–206 applicable to distributions after Dec. 31, 1998, see section 6005(c)(2)(C) of Pub. L. 105–206, set out as a note under section 402 of this title.

Effective Date of 1997 Amendment

Pub. L. 105–34, title XV, § 1504(a)(2), Aug. 5, 1997, 111 Stat. 1063, provided that: “The amendment made by this subsection [amending this section] shall apply to years beginning after December 31, 1997.”

Amendment by section 1505(c) of Pub. L. 105–34 applicable to taxable years beginning on or after Aug. 5, 1997, with certain governmental plans treated as satisfying requirements for all taxable years beginning before Aug. 5, 1997, see section 1505(d) of Pub. L. 105–34, set out as a note under section 401 of this title.

Amendment by section 1601(d)(6)(B) 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, 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

Pub. L. 104–188, title I, § 1450(c)(2), Aug. 20, 1996, 110 Stat. 1815, provided that: “The amendment made by this subsection [amending this section] shall apply to years beginning after December 31, 1995, except a contract shall not be required to meet any change in any requirement by reason of such amendment before the 90th day after the date of the enactment of this Act [Aug. 20, 1996].”

Effective Date of 1992 Amendment

Amendment by section 521(b)(12), (13) 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.

Amendment by section 522(a)(3), (c)(2), (3) of Pub. L. 102–318 applicable, except as otherwise provided, to distributions after Dec. 31, 1992, see section 522(d) of Pub. L. 102–318, set out as a note under section 401 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–508 effective, except as otherwise provided, as if included in the provision of the Revenue Reconciliation Act of 1989, Pub. L. 101–239, title VII, to which such amendment relates, see section 11701(n) of Pub. L. 101–508, set out as a note under section 42 of this title.

Effective Date of 1988 Amendment

Amendment by section 1011(c)(7)(B) of Pub. L. 100–647 applicable to plan years beginning after Dec. 31, 1987, with exception in case of a plan described in section 1105(c)(2) of Pub. L. 99–514, see section 1011(c)(7)(E) of Pub. L. 100–647, set out as a note under section 401 of this title.

Amendment by section 1011(c)(12), (m)(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.

Pub. L. 100–647, title VI, § 6052(a)(2), Nov. 10, 1988, 102 Stat. 3696, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect as if included in the amendment made by section 1120(b) of the Reform Act [Pub. L. 99–514].”

Effective Date of 1986 Amendment

Pub. L. 99–514, title XI, § 1120(c), Oct. 22, 1986, 100 Stat. 2464, as amended by Pub. L. 100–647, title I, § 1011(m)(3), Nov. 10, 1988, 102 Stat. 3471, provided that:

“(1)
In general.—
Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to years beginning after December 31, 1988.
#
“(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, 1991, or
#
“(B)
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).”
#
#
#

Amendment by section 1122(b)(1)(B), (d) of Pub. L. 99–514 applicable, except as otherwise provided, to amounts distributed after Dec. 31, 1986, in taxable years ending after such date, see section 1122(h) of Pub. L. 99–514, set out as a note under section 402 of this title.

Amendment by section 1123(c) of Pub. L. 99–514 applicable to years beginning after Dec. 31, 1988, but only with respect to distributions from contracts described in subsec. (b) of this section which are attributable to assets other than assets held as of the close of the last year beginning before Jan. 1, 1989, with certain exceptions and transition rule, see section 1123(e) of Pub. L. 99–514, as amended, set out as a note under section 72 of this title.

Pub. L. 99–514, title XVIII, § 1852(a)(3)(C), Oct. 22, 1986, 100 Stat. 2865, provided that: “The amendments made by this paragraph [amending this section] shall apply to benefits accruing after December 31, 1986, in taxable years ending after such date.”

Amendment by section 1852(a)(5)(B), (b)(10) 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.

Effective Date of 1984 Amendment

Amendment by section 491(d)(12) of Pub. L. 98–369 applicable to obligations issued after Dec. 31, 1983, see section 491(f)(1) of Pub. L. 98–369, set out as a note under section 62 of this title.

Amendment by section 521(c) of Pub. L. 98–369 applicable to years beginning after Dec. 31, 1984, see section 521(e) of Pub. L. 98–369, set out as a note under section 401 of this title.

Amendment by section 522 of Pub. L. 98–369 applicable to distributions made after July 18, 1984, in taxable years ending after that date, see section 522(e) of Pub. L. 98–369, set out as a note under section 402 of this title.

Amendment by section 1001(b)(4) of Pub. L. 98–369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Pub. L. 98–369, set out as a note under section 166 of this title.

Effective Date of 1983 Amendment

Amendment by Pub. L. 98–21 applicable to taxable years beginning after Dec. 31, 1983, except that if an individual’s annuity starting date was deferred under section 105(d)(6) of this title as in effect on the day before Apr. 20, 1983, such deferral shall end on the first day of such individual’s first taxable year beginning after Dec. 31, 1983, see section 122(d) of Pub. L. 98–21, set out as a note under section 22 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

Pub. L. 97–248, title II, § 251(e), Sept. 3, 1982, 96 Stat. 531, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 114–113, div. Q, title III, § 336(b)(1), Dec. 18, 2015, 129 Stat. 3110, provided that:

“(1)
In general.—
Except as provided in this subsection, the amendments made by this section [amending this section and section 415 of this title, and enacting a provision set out as a note below] shall apply to taxable years beginning after December 31, 1981.
#
“(2)
Retirement income accounts.—
The amendments made by subsection (b) [amending this section] shall apply to taxable years beginning after December 31, 1974.
#
“(3)
Section 415 amendments.—
The amendments made by subsection (c) [amending section 415 of this title] shall apply to years beginning after December 31, 1981.
#
“(4)
Correction period.—
The amendment made by subsection (d) [enacting provisions set out below] shall take effect on July 1, 1982.
#
“(5)
Special rule for existing defined benefit arrangements.—
Any defined benefit arrangement which is established by a church or a convention or association of churches (including an organization described in section 414(e)(3)(B)(ii) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) and which is in effect on the date of the enactment of this Act [Sept. 3, 1982] shall not be treated as failing to meet the requirements of section 403(b) of such Code merely because it is a defined benefit arrangement, and shall be subject to the applicable limitations of section 415(b) of such Code as if it were a defined benefit plan under section 401(a) of such Code (and not to the limitations of section 415(c) of such Code)..[sic]”
#

[Pub. L. 114–113, div. Q, title III, § 336(b)(2), Dec. 18, 2015, 129 Stat. 3110, provided that: “The amendments made by this subsection [amending section 251(e)(5) of Pub. L. 97–248, set out above] shall apply to years beginning before, on, or after the date of the enactment of this Act [Dec. 18, 2015].” ]

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–34 applicable to taxable years beginning after Dec. 31, 1981, see section 311(i)(1) of Pub. L. 97–34, set out as a note under section 219 of this title.

Effective Date of 1980 Amendment

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

Pub. L. 95–600, title I, § 154(b), Nov. 6, 1978, 92 Stat. 2801, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1978.”

Pub. L. 95–600, title I, § 156(d), Nov. 6, 1978, 92 Stat. 2803, as amended by Pub. L. 96–222, title I, § 101(a)(13)(A), Apr. 1, 1980, 94 Stat. 204, provided that: “The amendments made by this section [amending this section and sections 219, 220, 408, 409, 2039, and 4973] shall apply to distributions or transfers made after December 31, 1977, in taxable years beginning after such date.”

Amendment by section 157(g)(2) of Pub. L. 95–600 applicable to lump-sum distributions completed after Dec. 31, 1978, in taxable years ending after such date, see section 157(g)(4) of Pub. L. 95–600, set out as a note under section 402 of this title.

Amendment by Pub. L. 95–458 applicable with respect to taxable years beginning after Dec. 31, 1974, see section 4(d) of Pub. L. 95–458, set out as a note under section 402 of this title.

Effective Date of 1976 Amendment

Pub. L. 94–455, title XIV, § 1402(b)(1), Oct. 4, 1976, 90 Stat. 1731, provided that the amendment made by that section is effective with respect to taxable years beginning in 1977.

Pub. L. 94–455, title XIV, § 1402(b)(2), Oct. 4, 1976, 90 Stat. 1732, provided that the amendment made by that section is effective with respect to taxable years beginning after Dec. 31, 1977.

Pub. L. 94–455, title XIV, § 1504(b), Oct. 4, 1976, 90 Stat. 1738, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1975.”

Amendment by section 1901(a)(58), (b)(8)(A) 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.

Amendment by Pub. L. 94–267 applicable with respect to payments made to an employee on or after July 4, 1974, see section 1(e) of Pub. L. 94–267, set out as a note under section 401 of this title.

Effective Date of 1974 Amendment

Pub. L. 93–406, title II, § 1022(e), Sept. 2, 1974, 88 Stat. 940, provided that the amendment made by that section is effective Jan. 1, 1974.

Amendment by section 2002(g)(6) of Pub. L. 93–406 applicable on and after Sept. 2, 1974, with respect to contributions to an employees’ trust described in section 401(a) which is exempt from tax under section 501(a) or an annuity plan described in section 403(a), see section 2002(i)(3) of Pub. L. 93–406, set out as a note under section 402 of this title.

Amendment by section 2004(c)(4) 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; Transition Provisions note under section 415 of this title.

Amendment by section 2005(b)(2) of Pub. L. 93–406 applicable only with respect to distributions or payments made after Dec. 31, 1973, in taxable years beginning after Dec. 31, 1973, see section 2005(d) of Pub. L. 93–406, set out as a note under section 402 of this title.

Effective Date of 1969 Amendment

Amendment by section 321(b)(2) of Pub. L. 91–172 applicable with respect to contributions made and premiums paid after Aug. 1, 1969, see section 321(d) of Pub. L. 91–172, set out as an Effective Date note under section 83 of this title.

Amendment by section 515(a)(2) of Pub. L. 91–172 applicable to taxable years ending after Dec. 31, 1969, see section 515(d) of Pub. L. 91–172, set out as a note under section 402 of this title.

Effective Date of 1964 Amendment

Amendment by Pub. L. 88–272 applicable to taxable years beginning after Dec. 31, 1963, see section 232(g) of Pub. L. 88–272, set out as a note under section 5 of this title.

Effective Date of 1962 Amendment

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.

Effective Date of 1961 Amendment

Pub. L. 87–370, § 3(b), Oct. 4, 1961, 75 Stat. 801, provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to taxable years beginning after December 31, 1957.”

Effective Dates of 1958 Amendment

Pub. L. 85–866, § 23(g), Sept. 2, 1958, 72 Stat. 1623, provided that: “The amendments made by subsections (a), (b), (c), and (d) [amending this section and section 101 of this title] shall apply with respect to taxable years beginning after December 31, 1957. The amendments made by subsection (e) [amending section 2039 of this title] shall apply with respect to estates of decedents dying after December 31, 1957. The amendments made by subsection (f) [amending section 2517 of this title] shall apply with respect to calendar years after 1957.”

Regulations

Pub. L. 117–328, div. T, title I, § 106(e), Dec. 29, 2022, 136 Stat. 5288, provided that: “The Secretary of the Treasury (or the Secretary’s delegate) shall prescribe such regulations as may be necessary to clarify, in the case of plans to which section 403(b)(15) of the Internal Revenue Code of 1986 applies, the treatment of an employer departing such plan in connection with such employer’s failure to meet multiple employer plan requirements.”

Secretary of the Treasury or his delegate to issue before Feb. 1, 1988, final regulations to carry out amendments made by section 1120 of Pub. L. 99–514, see section 1141 of Pub. L. 99–514, set out as a note under section 401 of this title.

Rule of Construction

Pub. L. 117–328, div. T, title I, § 106(h)(2), Dec. 29, 2022, 136 Stat. 5289, provided that: “Nothing in the amendments made by subsection (a) [amending this section] shall be construed as limiting the authority of the Secretary of the Treasury or the Secretary’s delegate (determined without regard to such amendment) to provide for the proper treatment of a failure to meet any requirement applicable under the Internal Revenue Code of 1986 with respect to one employer (and its employees) in the case of a plan to which section 403(b)(15) of the Internal Revenue Code of 1986 applies.”

No Inference With Respect to Church Plans

Pub. L. 117–328, div. T, title I, § 106(g), Dec. 29, 2022, 136 Stat. 5288, provided that: “Regarding any application of section 403(b) of the Internal Revenue Code of 1986 to an annuity contract purchased under a church plan (as defined in section 414(e) of such Code) maintained by more than 1 employer, or to any application of rules similar to section 413(e) of such Code to such a plan, no inference shall be made from section 403(b)(15)(A) of such Code (as added by this Act [div. T of Pub. L. 117–328]) not applying to such plans.”

Treatment of Custodial Accounts on Termination of Section 403(b) Plans

Pub. L. 116–94, div. O, title I, § 110, Dec. 20, 2019, 133 Stat. 3152, provided that: “Not later than six months after the date of enactment of this Act [Dec. 20, 2019], the Secretary of the Treasury shall issue guidance to provide that, if an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph (A) of section 403(b)(7), the plan administrator or custodian may distribute an individual custodial account in kind to a participant or beneficiary of the plan and the distributed custodial account shall be maintained by the custodian on a tax-deferred basis as a section 403(b)(7) custodial account, similar to the treatment of fully-paid individual annuity contracts under Revenue Ruling 2011–7, until amounts are actually paid to the participant or beneficiary. The guidance shall provide further (i) that the section 403(b)(7) status of the distributed custodial account is generally maintained if the custodial account thereafter adheres to the requirements of section 403(b) that are in effect at the time of the distribution of the account and (ii) that a custodial account would not be considered distributed to the participant or beneficiary if the employer has any material retained rights under the account (but the employer would not be treated as retaining material rights simply because the custodial account was originally opened under a group contract). Such guidance shall be retroactively effective for taxable years beginning after December 31, 2008.”

Election To Modify Section 403(b) Exclusion Allowance To Conform to Section 415 Modification

Pub. L. 107–16, title VI, § 632(b)(3), June 7, 2001, 115 Stat. 115, provided that: “In the case of taxable years beginning after December 31, 1999, and before January 1, 2002, a plan may disregard the requirement in the regulations regarding the exclusion allowance under section 403(b)(2) of the Internal Revenue Code of 1986 that contributions to a defined benefit pension plan be treated as previously excluded amounts for purposes of the exclusion allowance.”

Modifications of Subsection (b) of This Section

Pub. L. 105–34, title XVI, § 1601(d)(4), Aug. 5, 1997, 111 Stat. 1089, as amended by Pub. L. 105–206, title VI, § 6016(a)(2), July 22, 1998, 112 Stat. 822, provided that:

“(A)
Paragraphs (7)(A)(ii) and (11) of section 403(b) of the Internal Revenue Code of 1986 shall not apply with respect to a distribution from a contract described in section 1450(b)(1) of such Act [Pub. L. 104–188, set out below] to the extent that such distribution is not includible in income by reason of—
“(i)
in the case of distributions before January 1, 1998, section 403(b)(8) or (b)(10) of such Code (determined after the application of section 1450(b)(2) of such Act [Pub. L. 104–188, set out below]), and
#
“(ii)
in the case of distributions on and after such date, such section 403(b)(10).
#
#
“(B)
This paragraph shall apply as if included in section 1450 of the Small Business Job Protection Act of 1996 [Pub. L. 104–188, set out below].”
#

Pub. L. 104–188, title I, § 1450(a), (b), Aug. 20, 1996, 110 Stat. 1814, provided that:

“(a)
Multiple Salary Reduction Agreements Permitted.—
“(1)
General rule.—
For purposes of section 403(b) of the Internal Revenue Code of 1986, the frequency that an employee is permitted to enter into a salary reduction agreement, the salary to which such an agreement may apply, and the ability to revoke such an agreement shall be determined under the rules applicable to cash or deferred elections under section 401(k) of such Code.
#
“(2)
Constructive receipt.—
[Amended section 402 of this title.]
#
“(3)
Effective date.—
This subsection shall apply to taxable years beginning after December 31, 1995.
#
#
“(b)
Treatment of Indian Tribal Governments.—
“(1)
In general.—
In the case of any contract purchased in a plan year beginning before January 1, 1995, section 403(b) of the Internal Revenue Code of 1986 shall be applied as if any reference to an employer described in section 501(c)(3) of the Internal Revenue Code of 1986 which is exempt from tax under section 501 of such Code included a reference to an employer which is an Indian tribal government (as defined by section 7701(a)(40) of such Code), a subdivision of an Indian tribal government (determined in accordance with section 7871(d) of such Code), 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.
#
“(2)
Rollovers.—
Solely for purposes of applying section 403(b)(8) of such Code to a contract to which paragraph (1) applies, a qualified cash or deferred arrangement under section 401(k) of such Code shall be treated as if it were a plan or contract described in clause (ii) of section 403(b)(8)(A) of such Code.”
#
#

Sampling To Determine Whether Plan Meets Subsection (b)(12) Requirements

Pub. L. 100–647, title VI, § 6052(b), Nov. 10, 1988, 102 Stat. 3696, provided that:

“In the case of plan years beginning in 1989, 1990, or 1991, determinations as to whether a plan meets the requirements of section 403(b)(12) of the 1986 Code may be made on the basis of a statistically valid random sample. The preceding sentence shall apply only if—
“(1)
the sampling is conducted by an independent person in a manner not inconsistent with regulations prescribed by the Secretary, and
#
“(2)
the statistical method and sample size result in a 95 percent probability that the results will have a margin of error not greater than 3 percent.”
#

Plan Amendments Not Required Until January 1, 1998

For provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of Pub. L. 104–188 require 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 Jan. 1, 1998, see section 1465 of Pub. L. 104–188, set out as a note under section 401 of this title.

Plan Amendments Not Required Until January 1, 1994

For provisions directing that if any amendments made by subtitle B [§§ 521–523] of title V of Pub. L. 102–318 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1994, see section 523 of Pub. L. 102–318, set out as a note under section 401 of this title.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.

Correction Period for Church Plans

Pub. L. 97–248, title II, § 251(d), Sept. 3, 1982, 96 Stat. 531, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“A church plan (within the meaning of section 414(e) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) shall not be treated as not meeting the requirements of section 401 or 403 of such Code if—
“(1)
by reason of any change in any law, regulation, ruling, or otherwise such plan is required to be amended to meet such requirements, and
#
“(2)
such plan is so amended at the next earliest church convention or such other time as the Secretary of the Treasury or his delegate may prescribe.”
#

Transitional Rule for Making Section 403(b)(8) Rollover in the Case of Payments During 1978

Pub. L. 96–222, title I, § 101(a)(13)(B), Apr. 1, 1980, 94 Stat. 204, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “In the case of any payment made during 1978 in a qualifying distribution described in section 403(b)(8) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the applicable period specified in section 402(a)(5)(C) of such Code shall not expire before the close of December 31, 1980.”

Transitional Rule in Case of Rollover Contributions to Employee Trusts or Annuities

Applicable period specified in section 402(a)(5)(C) of this title shall not expire before close of Dec. 31, 1980 in case of any payment described in subsec. (a)(4)(A) of this section or section 402(a)(5)(A) of this title, see section 157(h)(3)(B) of Pub. L. 95–600, set out as a note under section 402 of this title.

Credits

1954–2022 · 33 acts

1954Aug. 16, 1954, ch. 736, 68A Stat. 137
1958Pub. L. 85–866, title I, § 23(a)–(c), Sept. 2, 1958, 72 Stat. 1620–1622
1961Pub. L. 87–370, § 3(a), Oct. 4, 1961, 75 Stat. 801
1962Pub. L. 87–792, § 4(d), Oct. 10, 1962, 76 Stat. 825
1964Pub. L. 88–272, title II, § 232(e)(4)–(6), Feb. 26, 1964, 78 Stat. 111
1969Pub. L. 91–172, title III, § 321(b)(2), title V, § 515(a)(2), Dec. 30, 1969, 83 Stat. 591, 644
1974Pub. L. 93–406, title II, §§ 1022(e), 2002(g)(6), 2004(c)(4), 2005(b)(2), Sept. 2, 1974, 88 Stat. 940, 969, 986, 991
1976Pub. L. 94–267, § 1(b), Apr. 15, 1976, 90 Stat. 366
1976Pub. L. 94–455, title XIV, § 1402(b)(1)(D), (2), title XV, § 1504(a), title XIX, §§ 1901(a)(58), (b)(8)(A), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1731, 1732, 1738, 1774, 1794, 1834
1978Pub. L. 95–458, § 4(b), Oct. 14, 1978, 92 Stat. 1259
1978Pub. L. 95–600, title I, §§ 154(a), 156(a), (b), 157(g)(2), Nov. 6, 1978, 92 Stat. 2801, 2802, 2808
1980Pub. L. 96–222, title I, § 101(a)(12), (13)(C), Apr. 1, 1980, 94 Stat. 204
1981Pub. L. 97–34, title III, § 311(b)(3)(B), Aug. 13, 1981, 95 Stat. 280
1982Pub. L. 97–248, title II, § 251(a), (b), (c)(3), Sept. 3, 1982, 96 Stat. 529–531
1983Pub. L. 97–448, title I, § 103(c)(8)(B), Jan. 12, 1983, 96 Stat. 2377
1983Pub. L. 98–21, title I, § 122(c)(4), Apr. 20, 1983, 97 Stat. 87
1984Pub. L. 98–369, div. A, title IV, § 491(d)(12), title V, §§ 521(c), 522(a)(2), (3), (d)(9)–(11), title X, § 1001(b)(4), (e), July 18, 1984, 98 Stat. 849, 867, 869–871, 1011, 1012
1986Pub. L. 99–514, title XI, §§ 1120(a), (b), 1122(b)(1)(B), (d), 1123(c), title XVIII, § 1852(a)(3)(A), (B), (5)(B), (b)(10), Oct. 22, 1986, 100 Stat. 2463, 2466, 2469, 2474, 2865, 2867
1988Pub. L. 100–647, title I, § 1011(c)(7)(B), (12), (m)(1), (2), title VI, § 6052(a)(1), Nov. 10, 1988, 102 Stat. 3458, 3459, 3471, 3696
1990Pub. L. 101–508, title XI, § 11701(k), Nov. 5, 1990, 104 Stat. 1388–513
1992Pub. L. 102–318, title V, §§ 521(b)(12), (13), 522(a)(3), (c)(2), (3), July 3, 1992, 106 Stat. 311, 314, 315
1996Pub. L. 104–188, title I, §§ 1450(c)(1), 1704(t)(69), Aug. 20, 1996, 110 Stat. 1815, 1891
1997Pub. L. 105–34, title XV, §§ 1504(a)(1), 1505(c), title XVI, § 1601(d)(6)(B), Aug. 5, 1997, 111 Stat. 1063, 1064, 1090
1998Pub. L. 105–206, title VI, § 6005(c)(2)(B), July 22, 1998, 112 Stat. 800
2000Pub. L. 106–554, § 1(a)(7) [title III, § 314(e)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–643
2001Pub. L. 107–16, title VI, §§ 632(a)(2), 641(b)(1), (e)(7), 642(b)(1), 646(a)(2), 647(a), June 7, 2001, 115 Stat. 113, 120, 121, 126, 127
2002Pub. L. 107–147, title IV, § 411(p)(1)–(3), Mar. 9, 2002, 116 Stat. 49, 50
2004Pub. L. 108–311, title IV, §§ 404(e), 408(a)(11), Oct. 4, 2004, 118 Stat. 1188, 1191
2005Pub. L. 109–135, title IV, § 412(w), Dec. 21, 2005, 119 Stat. 2638
2006Pub. L. 109–280, title VIII, §§ 827(b)(2), (3), 829(a)(2), (3), 845(b)(1), (2), Aug. 17, 2006, 120 Stat. 1000, 1002, 1015
2008Pub. L. 110–245, title I, § 104(c)(2), June 17, 2008, 122 Stat. 1627
2019Pub. L. 116–94, div. O, title I, §§ 109(c), 111(a), Dec. 20, 2019, 133 Stat. 3151, 3152
2022Pub. L. 117–328, div. T, title I, §§ 106(a), 110(e), 113(b), 121(b), 125(a)(2)(A), (B)(i), 128(a), (b), title III, §§ 312(b), 334(b)(2)–(4), title VI, § 602(a), (b), Dec. 29, 2022, 136 Stat. 5286, 5293, 5295, 5310, 5314, 5315, 5330, 5347, 5370, 5391.

Show as published

(Aug. 16, 1954, ch. 736, 68A Stat. 137; Pub. L. 85–866, title I, § 23(a)–(c), Sept. 2, 1958, 72 Stat. 1620–1622; Pub. L. 87–370, § 3(a), Oct. 4, 1961, 75 Stat. 801; Pub. L. 87–792, § 4(d), Oct. 10, 1962, 76 Stat. 825; Pub. L. 88–272, title II, § 232(e)(4)–(6), Feb. 26, 1964, 78 Stat. 111; Pub. L. 91–172, title III, § 321(b)(2), title V, § 515(a)(2), Dec. 30, 1969, 83 Stat. 591, 644; Pub. L. 93–406, title II, §§ 1022(e), 2002(g)(6), 2004(c)(4), 2005(b)(2), Sept. 2, 1974, 88 Stat. 940, 969, 986, 991; Pub. L. 94–267, § 1(b), Apr. 15, 1976, 90 Stat. 366; Pub. L. 94–455, title XIV, § 1402(b)(1)(D), (2), title XV, § 1504(a), title XIX, §§ 1901(a)(58), (b)(8)(A), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1731, 1732, 1738, 1774, 1794, 1834; Pub. L. 95–458, § 4(b), Oct. 14, 1978, 92 Stat. 1259; Pub. L. 95–600, title I, §§ 154(a), 156(a), (b), 157(g)(2), Nov. 6, 1978, 92 Stat. 2801, 2802, 2808; Pub. L. 96–222, title I, § 101(a)(12), (13)(C), Apr. 1, 1980, 94 Stat. 204; Pub. L. 97–34, title III, § 311(b)(3)(B), Aug. 13, 1981, 95 Stat. 280; Pub. L. 97–248, title II, § 251(a), (b), (c)(3), Sept. 3, 1982, 96 Stat. 529–531; Pub. L. 97–448, title I, § 103(c)(8)(B), Jan. 12, 1983, 96 Stat. 2377; Pub. L. 98–21, title I, § 122(c)(4), Apr. 20, 1983, 97 Stat. 87; Pub. L. 98–369, div. A, title IV, § 491(d)(12), title V, §§ 521(c), 522(a)(2), (3), (d)(9)–(11), title X, § 1001(b)(4), (e), July 18, 1984, 98 Stat. 849, 867, 869–871, 1011, 1012; Pub. L. 99–514, title XI, §§ 1120(a), (b), 1122(b)(1)(B), (d), 1123(c), title XVIII, § 1852(a)(3)(A), (B), (5)(B), (b)(10), Oct. 22, 1986, 100 Stat. 2463, 2466, 2469, 2474, 2865, 2867; Pub. L. 100–647, title I, § 1011(c)(7)(B), (12), (m)(1), (2), title VI, § 6052(a)(1), Nov. 10, 1988, 102 Stat. 3458, 3459, 3471, 3696; Pub. L. 101–508, title XI, § 11701(k), Nov. 5, 1990, 104 Stat. 1388–513; Pub. L. 102–318, title V, §§ 521(b)(12), (13), 522(a)(3), (c)(2), (3), July 3, 1992, 106 Stat. 311, 314, 315; Pub. L. 104–188, title I, §§ 1450(c)(1), 1704(t)(69), Aug. 20, 1996, 110 Stat. 1815, 1891; Pub. L. 105–34, title XV, §§ 1504(a)(1), 1505(c), title XVI, § 1601(d)(6)(B), Aug. 5, 1997, 111 Stat. 1063, 1064, 1090; Pub. L. 105–206, title VI, § 6005(c)(2)(B), July 22, 1998, 112 Stat. 800; Pub. L. 106–554, § 1(a)(7) [title III, § 314(e)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–643; Pub. L. 107–16, title VI, §§ 632(a)(2), 641(b)(1), (e)(7), 642(b)(1), 646(a)(2), 647(a), June 7, 2001, 115 Stat. 113, 120, 121, 126, 127; Pub. L. 107–147, title IV, § 411(p)(1)–(3), Mar. 9, 2002, 116 Stat. 49, 50; Pub. L. 108–311, title IV, §§ 404(e), 408(a)(11), Oct. 4, 2004, 118 Stat. 1188, 1191; Pub. L. 109–135, title IV, § 412(w), Dec. 21, 2005, 119 Stat. 2638; Pub. L. 109–280, title VIII, §§ 827(b)(2), (3), 829(a)(2), (3), 845(b)(1), (2), Aug. 17, 2006, 120 Stat. 1000, 1002, 1015; Pub. L. 110–245, title I, § 104(c)(2), June 17, 2008, 122 Stat. 1627; Pub. L. 116–94, div. O, title I, §§ 109(c), 111(a), Dec. 20, 2019, 133 Stat. 3151, 3152; Pub. L. 117–328, div. T, title I, §§ 106(a), 110(e), 113(b), 121(b), 125(a)(2)(A), (B)(i), 128(a), (b), title III, §§ 312(b), 334(b)(2)–(4), title VI, § 602(a), (b), Dec. 29, 2022, 136 Stat. 5286, 5293, 5295, 5310, 5314, 5315, 5330, 5347, 5370, 5391.)

Statutory text

Taxability of beneficiary under a qualified annuity plan

Distributee taxable under section 72

Special rule for health and long-term care insurance

Self-employed individuals

Rollover amounts

General rule

Certain rules made applicable

Direct trustee-to-trustee transfer

Qualified long-term care distributions

Taxability of beneficiary under annuity purchased by section 501(c)(3) organization or public school

General rule

Special rule for health and long-term care insurance

Includible compensation

Years of service

Application to more than one annuity contract

[(6) Repealed. Pub. L. 107–147, title IV, § 411(p)(2), Mar. 9, 2002, 116 Stat. 50]

Custodial accounts

Amounts paid treated as contributions

Account treated as plan

Regulated investment company

Employee certification

Rollover amounts

General rule

Certain rules made applicable

Retirement income accounts provided by churches, etc.

Amounts paid treated as contributions

Retirement income account

Distribution requirements

Requirement that distributions not begin before age 59½, severance from employment, death, or disability

Nondiscrimination requirements

In general

Church

State and local governmental plans

Rules relating to certain part-time employees

1 In general

Trustee-to-trustee transfers to purchase permissive service credit

Death benefits under USERRA-qualified active military service

Multiple employer plans

In general

Treatment of employers failing to meet requirements of plan

In general

Additional requirements in case of non-governmental plans

Safe harbor deferral-only plans for employers with no retirement plan

In general

Safe harbor deferral-only plan

Automatic deferral

In general

Election out

Qualified percentage

Contribution limitations

In general

Cost-of-living adjustment

Catch-up contributions for individuals age 50 or over

Eligible employer

In general

Relief for acquisitions, etc.

Qualified plan

Eligible employee

Special rules relating to hardship withdrawals

Amounts which may be withdrawn

No requirement to take available loan

Taxability of beneficiary under nonqualified annuities or under annuities purchased by exempt organizations

Footnotes

Legislative history

Editorial Notes

2022

2019

2008

2006

2005

2004

2002

2001

2000

1998

1997

1996

1992

1990

[(6) Repealed. Pub. L. 107–147, title IV, § 411(p)(2), Mar. 9, 2002, 116 Stat. 50]

 1 In general