Title 26 — Internal Revenue Code
Part I · Chapter 1 — Normal Taxes and Surtaxes
§ 407. Certain employees of domestic subsidiaries engaged in business outside the United States
Statutory text
Treatment as employees of domestic parent corporation
In general
For purposes of applying this part with respect to a pension, profit-sharing, or stock bonus plan described in section 401(a) or an annuity plan described in section 403(a), of a domestic parent corporation, an individual who is a citizen or resident of the United States and who is an employee of a domestic subsidiary (within the meaning of paragraph (2)) of such domestic parent corporation shall be treated as an employee of such domestic parent corporation, if—
the plan of such domestic parent corporation expressly provides for contributions or benefits for individuals who are citizens or residents of the United States and who are employees of its domestic subsidiaries; and
contributions under a funded plan of deferred compensation (whether or not a plan described in section 401(a) or 403(a)) are not provided by any other person with respect to the remuneration paid to such individual by the domestic subsidiary.
Definitions
For purposes of this section—
Domestic subsidiary
A corporation shall be treated as a domestic subsidiary for any taxable year only if—
such corporation is a domestic corporation 80 percent or more of the outstanding voting stock of which is owned by another domestic corporation;
95 percent or more of its gross income for the three-year period immediately preceding the close of its taxable year which ends on or before the close of the taxable year of such other domestic corporation (or for such part of such period during which the corporation was in existence), was derived from sources without the United States; and
90 percent or more of its gross income for such period (or such part) was derived from the active conduct of a trade or business.
If for the period (or part thereof) referred to in clauses (ii) and (iii) such corporation has no gross income, the provisions of clauses (ii) and (iii) shall be treated as satisfied if it is reasonable to anticipate that, with respect to the first taxable year thereafter for which such corporation has gross income, the provisions of such clauses will be satisfied.
Domestic parent corporation
The domestic parent corporation of any domestic subsidiary is the domestic corporation which owns 80 percent or more of the outstanding voting stock of such domestic subsidiary.
Special rules for application of section 401(a)
Nondiscrimination requirements
For purposes of applying section 401(a)(4) and section 410(b) with respect to an individual who is treated as an employee of a domestic parent corporation under subsection (a)—
if such individual is a highly compensated employee (within the meaning of section 414(q)), he shall be treated as having such capacity with respect to such domestic parent corporation; and
the determination of whether such individual is a highly compensated employee (as so defined) shall be made by treating such individual’s total compensation (determined with the application of paragraph (2) of this subsection) as compensation paid by such domestic parent corporation and by determining such individual’s status with regard to such domestic parent corporation.
Determination of compensation
For purposes of applying paragraph (5) of section 401(a) with respect to an individual who is treated as an employee of a domestic parent corporation under subsection (a), the total compensation of such individual shall be the remuneration paid to such individual by the domestic subsidiary which would constitute his total compensation if his services had been performed for such domestic parent corporation, and the basic or regular rate of compensation of such individual shall be determined under regulations prescribed by the Secretary.
[(c) Repealed. Pub. L. 104–188, title I, § 1401(b)(8), , 110 Stat. 1789]
Deductibility of contributions
For purposes of applying section 404 with respect to contributions made to or under a pension, profit-sharing, stock bonus, or annuity plan by a domestic parent corporation, or by another corporation which is entitled to deduct its contributions under section 404(a)(3)(B), on behalf of an individual who is treated as an employee of such domestic corporation under subsection (a)—
except as provided in paragraph (2), no deduction shall be allowed to such domestic parent corporation or to any other corporation which is entitled to deduct its contributions under such sections,
there shall be allowed as a deduction to the domestic subsidiary of which such individual is an employee an amount equal to the amount which (but for paragraph (1)) would be deductible under section 404 by the domestic parent corporation if he were an employee of the domestic parent corporation, and
any reference to compensation shall be considered to be a reference to the total compensation of such individual (determined with the application of subsection (b)(2)).
Any amount deductible by a domestic subsidiary under this subsection shall be deductible for its taxable year with or within which the taxable year of such domestic parent corporation ends.
Treatment as employee under related provisions
An individual who is treated as an employee of a domestic parent corporation under subsection (a) shall also be treated as an employee of such domestic parent corporation, with respect to the plan described in subsection (a)(1)(A), for purposes of applying the following provisions of this title:
Section 72(f) (relating to special rules for computing employees’ contributions).
Section 2039 (relating to annuities).
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.
Revenue Act of 1964
Pub. L. 88–272 title II § 220(b) · 78 Stat. 19
Enacted · 26 U.S.C. § 407
Added Pub. L. 88–272, title II, § 220(b), Feb. 26, 1964, 78 Stat. 60
Source evidence
Code source credit
Added Pub. L. 88–272, title II, § 220(b), Feb. 26, 1964, 78 Stat. 60Enacted provision · exact public law section
(b) Employees of Domestic Subsidiaries Engaged in Business Outside the United States.— Part 1 of subchapter I) of chapter I (relating to pension, profit-sharing, stock bonus plans, etc.) is Ante, p. 58. amended by adding after section 406 (as added by subsection (a)) the following new section: “SEC. 407. CERTAIN EMPLOYEES OF DOMESTIC SUBSIDIARIES ENGAGED IN BUSINESS OUTSIDE THE UNITED STATES. “(a) Treatment as Employees of Domestic Parent Corporation.— “(1) In general.— For purposes of applying this part with respect to a pension, profit-sharing, or stock bonus plan described in section 401(a), an annuity plan described bisection 403(a), or a bond purchase plan described in section 405(a), of a domestic parent corporation, an individual who is a citizen of the United States and who is an employee of a domestic subsidiary (within the meaning of paragraph (2)) of such domestic parent corporation shall be treated as an employee of such domestic parent corporation, if— “(A) the plan of such domestic parent corporation expressly provides for contributions or benefits for individuals who are citizens of the United States and who are employees of its domestic subsidiaries; and “(B) contributions under a funded plan of deferred compensation (whether or not a plan described in section 401(a), 403(a), or 405(a)) are not provided by any other person with respect to the remuneration paid to such individual by the domestic subsidiary. “(2) Definitions.— For purposes of this section— “(A) Domestic subsidiary.— A corporation shall be treated as a domestic subsidiary for any taxable year only if— “(i) such corporation is a domestic corporation 80 percent or more of the outstanding voting stock of which is owned by another domestic corporation; “(ii) 95 percent or more of its gross income for the three-year period immediately preceding the close of its taxable year which ends on or before the close of the taxable year of such other domestic corporation (or for such part of such period during which the corporation was in existence) was derived from sources without the United States; and “(iii) 90 percent or more of its gross income for such period (or such part) was derived from the active conduct of a trade or business. If for the period (or part thereof) referred to in clauses (ii) and (iii) such corporation has no gross income, the provisions of clauses (ii) and (iii) shall be treated as satisfied if it is reasonable to anticipate that, with respect to the first taxable year thereafter for which such corporation has gross income, the provisions of such clauses will be satisfied. “(B) Domestic parent corporation.— The domestic parent corporation of any domestic subsidiary is the domestic corporation which owns 80 percent or more of the outstanding voting stock of such domestic subsidiary. “(b) Special Rules for Application of Section 401(a).— “(1) Nondiscrimination requirements.— For purposes of applying paragraphs (3) (B) and (4) of section 401(a) with 68A Stat. 134. 26 USC 401. respect to an individual who is treated as an employee of a domestic parent corporation under subsection (a)— “(A) if such individual is an officer, shareholder, or person whose principal duties consist in supervising the work of other employees of a domestic subsidiary, he shall be treated as having such capacity with respect to suck domestic parent corporation; and “(B) the determination of whether such individual is a highly compensated employee shall be made by treating such individual’s total compensation (determined with the application of paragraph (2) of this subsection) as compensation paid by such domestic parent corporation and by determining such individual’s status with regard to such domestic parent corporation. “(2) Determination of compensation.— For purposes of applying paragraph (5) of section 401(a) with respect to an individual who is treated as an employee of a domestic parent corporation under subsection (a), the total compensation of such individual shall be the remuneration paid to such individual by the domestic subsidiary which would constitute his total compensation if his services had been performed for such domestic parent corporation, and the basic or regular rate of compensation of such individual shall be determined under regulations prescribed by the Secretary or his delegate. “(c) Termination of Status as Deemed Employee Not To Be Treated as Separation From Service for Purposes of Capital Gain Provisions.— For purposes of applying section 402(a) (2) and section 403(a)(2) with respect to an individual who is treated as 26 USC 402, 403. an employee of a domestic parent corporation under subsection (a), such individual shall not be considered as separated from the service of such domestic parent corporation solely by reason of the fact that— “(1) the corporation of which such individual is an employee ceases, for any taxable year, to be a domestic subsidiary within the meaning of subsection (a) (2) (A), “(2) such individual ceases to be an employee of a domestic subsidiary of such domestic parent corporation, if he becomes an employee of another corporation controlled by such domestic parent corporation, or “(3) the provision of the plan described in subsection (a) (1) (A) is terminated. “(d) Deductibility of Contributions.— For purposes of applying 68A Stat. 138; 76 Stat. 819, 826. 26 USC 404, 403. sections 404 and 405(c) with respect to contributions made to or under a pension, profit-sharing, stock bonus, annuity, or bond purchase plan by a domestic parent corporation, or by another corporation which is entitled to deduct its contributions under section 404 (a) (3) (B), on behalf of an individual who is treated as an employee of such domestic corporation under subsection (a)— “(1) except as provided in paragraph (2), no deduction shall be allowed to such domestic parent corporation or to any other corporation which is entitled to deduct its contributions under such sections, “(2) there shall be allowed as a deduction to the domestic subsidiary of which such individual is an employee an amount equal to the amount which (but for paragraph (1)) would be deductible under section 404 (or section 405(c)) by the domestic parent corporation if he were an employee of the domestic parent corporation, and “(3) any reference to compensation shall be considered to be a reference to the total compensation of such individual (determined with the application of subsection (b)(2)). Any amount deductible by a domestic subsidiary under this subsection shall be deductible for its taxable year with or within which the taxable year of such domestic parent corporation ends. “(e) Treatment as Employee Under Related Provisions.— An individual who is treated as an employee of a domestic parent corporation under subsection (a) shall also be treated as an employee of such domestic parent corporation, with respect to the plan described in subsection (a)(1)(A), for purposes of applying the following provisions of this title: “(1) Section 72(d) (relating to employees’ annuities). “(2) Section 72(f) (relating to special rules for computing employees’ contributions). “(3) Section 101(b) (relating to employees’ death benefits). “(4) Section 2039 (relating to annuities). “(5) Section 2517 (relating to certain annuities under qualified plans).”Tax Reform Act of 1969
Pub. L. 91–172 title V § 515(c)(3) · 83 Stat. 487
Substituted · 26 U.S.C. § 407(c)
Pub. L. 91–172 substituted “provisions and limitation of tax” for “provisions” in heading
Substituted · 26 U.S.C. § 407(c)
Pub. L. 91–172 substituted “section 72(n), section 402(a)(2),” for “section 402(a)(2)” in text
Source evidence
Code amendment note
Subsec. (c). Pub. L. 91–172 substituted “provisions and limitation of tax” for “provisions” in heading, and substituted “section 72(n), section 402(a)(2),” for “section 402(a)(2)” in text.Enacted provision · exact public law section
(3) Section 407(c) (relating to termination of status as deemed employee not to be treated as separation from service for purposes of capital gain provisions) is amended— (A) by striking out “Provisions.” in the heading and inserting in lieu thereof “Provisions and Limitation of Tax.”; and (B) by striking out “section 402(a)(2)” and inserting in lieu thereof “section 72(n), section 402(a)(2),”.Employee Retirement Income Security Act of 1974
Pub. L. 93–406 § 1016(a)(5) · 88 Stat. 829
Substituted · 26 U.S.C. § 407(b)(1)
Pub. L. 93–406, § 1016(a)(5), substituted “section 401(a)(4) and section 410(b) (without regard to paragraph (1)(A) thereof)” for “paragraphs (3)(B) and (4) of section 401(a)”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 93–406, § 1016(a)(5), substituted “section 401(a)(4) and section 410(b) (without regard to paragraph (1)(A) thereof)” for “paragraphs (3)(B) and (4) of section 401(a)”.Enacted provision · exact public law section
(5) Section 407(b)(1) (relating to certain employees of 26 USC 407. domestic subsidiaries engaged in business outside the United States) is amended by striking out “paragraph (3)(B) and (4) of section 401(a)” and inserting in lieu thereof “section 401(a)(4) and section 410(b) (without regard to paragraph (1)(A) thereof)”.Employee Retirement Income Security Act of 1974
Pub. L. 93–406 § 2005(c)(13) · 88 Stat. 829
Substituted · 26 U.S.C. § 407(c)
Pub. L. 93–406, § 2005(c)(13), substituted “subsections (a)(2) and (e) of section 402” for “section 72(n), section 402(a)(2)”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 93–406, § 2005(c)(13), substituted “subsections (a)(2) and (e) of section 402” for “section 72(n), section 402(a)(2)”.Enacted provision · exact public law section
(13) Section 407(c) (relating to termination of status as 26 USC 407. deemed employee, etc.) is amended by striking out “section 72(n), section 402(a)(2)” and inserting “subsections (a)(2) and (e) of section 402”.Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 407(b)(2)
Pub. L. 94–455 struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 94–455 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”.Pub. L. 98–21 title III § 321(d) · 97 Stat. 65
Inserted · 26 U.S.C. § 407(a)(1)
Pub. L. 98–21 inserted “or resident” after “citizen”
Inserted · 26 U.S.C. § 407(a)(1)
Pub. L. 98–21 inserted “or residents” after “citizens” in subpar. (A)
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 98–21 inserted “or resident” after “citizen”, and inserted “or residents” after “citizens” in subpar. (A).Tax Reform Act of 1984
Pub. L. 98–369 § 491(d)(16) · 98 Stat. 494
Substituted · 26 U.S.C. § 407(a)(1)
Pub. L. 98–369, § 491(d)(16), substituted “or an annuity plan described in section 403(a)” for “, an annuity plan described in section 403(a), or a bond purchase plan described in section 405(a)”
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 98–369, § 491(d)(16), substituted “or an annuity plan described in section 403(a)” for “, an annuity plan described in section 403(a), or a bond purchase plan described in section 405(a)”.Enacted provision · exact public law section
(16) Paragraph (1) of section 407(a) is amended by striking out “, an annuity plan described in section 403(a), or a bond purchase plan described in section 405(a)” and inserting in lieu thereof “or an annuity plan described in section 403(a)”.Tax Reform Act of 1984
Pub. L. 98–369 § 491(d)(17) · 98 Stat. 494
Substituted · 26 U.S.C. § 407(a)(1)(B)
Pub. L. 98–369, § 491(d)(17), substituted “or 403(a)” for “, 403(a), or 405(a)”
Source evidence
Code amendment note
Subsec. (a)(1)(B). Pub. L. 98–369, § 491(d)(17), substituted “or 403(a)” for “, 403(a), or 405(a)”.Enacted provision · exact public law section
(17) Subparagraph (B) of section 407(a)(1) is amended by striking out “, 403(a), or 405(a)” and inserting in lieu thereof “or 403(a)”.Tax Reform Act of 1984
Pub. L. 98–369 § 491(d)(18)(A) · 98 Stat. 494
Substituted · 26 U.S.C. § 407(d)
Pub. L. 98–369, § 491(d)(18)(A), (B), substituted in introductory provision “section 404” for “sections 404 and 405(a)”
Substituted · 26 U.S.C. § 407(d)
Pub. L. 98–369, § 491(d)(18)(A), (B), substituted in introductory provision “or annuity” for “annuity, or bond purchase”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 98–369, § 491(d)(18)(A), (B), substituted in introductory provision “section 404” for “sections 404 and 405(a)”, and “or annuity” for “annuity, or bond purchase”.Enacted provision · exact public law section
(A) by striking out “sections 404 and 405(c)” and inserting in lieu thereof ‘section 404”,Tax Reform Act of 1984
Pub. L. 98–369 § 491(d)(18)(C) · 98 Stat. 494
Struck · 26 U.S.C. § 407(d)(2)
Pub. L. 98–369, § 491(d)(18)(C), struck out “(or section 405(c))” after “section 404”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 98–369, § 491(d)(18)(C), struck out “(or section 405(c))” after “section 404”.Enacted provision · exact public law section
(C) by striking out “(or section 405(c))” in paragraph (2) thereof.Tax Reform Act of 1986
Pub. L. 99–514 § 1112(d)(3) · 100 Stat. 2085
Struck · 26 U.S.C. § 407(b)(1)
Pub. L. 99–514, § 1112(d)(3), struck out “(without regard to paragraph (1)(A) thereof)” after “section 410(b)” in introductory text
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 99–514, § 1112(d)(3), struck out “(without regard to paragraph (1)(A) thereof)” after “section 410(b)” in introductory text.Enacted provision · exact public law section
(3) Sections 406(b)(1) and 407(b)(1) are each amended by striking out “(without regard to paragraph (1)(A) thereof” after “section 410(b)”.Tax Reform Act of 1986
Pub. L. 99–514 § 1114(b)(9)(B) · 100 Stat. 2085
Amended · 26 U.S.C. § 407(b)(1)(A)
Pub. L. 99–514, § 1114(b)(9)(B), as amended by Pub. L. 101–239, § 7831(f)
Substituted · 26 U.S.C. § 407(b)(1)(A)
Pub. L. 99–514, § 1114(b)(9)(B), as substituted “a highly compensated employee (within the meaning of section 414(q))” for “an officer, shareholder, or person whose principal duties consist in supervising the work of other employees of a domestic subsidiary”
Source evidence
Code amendment note
Subsec. (b)(1)(A). Pub. L. 99–514, § 1114(b)(9)(B), as amended by Pub. L. 101–239, § 7831(f), substituted “a highly compensated employee (within the meaning of section 414(q))” for “an officer, shareholder, or person whose principal duties consist in supervising the work of other employees of a domestic subsidiary”.Enacted provision · exact public law section
(B) Section 407(b)(1)(A) is amended by striking out “an officer, shareholder, or person whose principal duties consist of supervising the work of other employees of a domestic subsidiary” and insert in lieu thereof “a highly compensated employee (within the meaning of section 414(q))”.Tax Reform Act of 1986
Pub. L. 99–514 § 1114(b)(9)(C) · 100 Stat. 2085
Inserted · 26 U.S.C. § 407(b)(1)(B)
Pub. L. 99–514, § 1114(b)(9)(C), inserted “(as so defined)” after “employee”
Source evidence
Code amendment note
Subsec. (b)(1)(B). Pub. L. 99–514, § 1114(b)(9)(C), inserted “(as so defined)” after “employee”.Enacted provision · exact public law section
(C) Sections 406(b)(1)(B) and 407(b)(1)(B) are each amended by inserting “(as so defined)” after “employee”.Tax Reform Act of 1986
Pub. L. 99–514 § 1852(e)(2)(D) · 100 Stat. 2085
Struck · 26 U.S.C. § 407(e)(5)
Pub. L. 99–514, § 1852(e)(2)(D), struck out par. (5) which read as follows: “Section 2517 (relating to certain annuities under qualified plans).”
Source evidence
Code amendment note
Subsec. (e)(5). Pub. L. 99–514, § 1852(e)(2)(D), struck out par. (5) which read as follows: “Section 2517 (relating to certain annuities under qualified plans).”Enacted provision · exact public law section
(D) Subsection (e) of section 407 is amended by striking out paragraph (5).Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011A(b)(16) · 102 Stat. 3342
Struck · 26 U.S.C. § 407(c)
Pub. L. 100–647, § 1011A(b)(16), struck out “of capital gain provisions and” after “service for purposes” in heading
Substituted · 26 U.S.C. § 407(c)
Pub. L. 100–647, § 1011A(b)(16), substituted “applying section 402(e)” for “applying subsections (a)(2) and (e) of section 402, and section 403(a)(2)” in text
Source evidence
Code amendment note
Subsec. (c). Pub. L. 100–647, § 1011A(b)(16), struck out “of capital gain provisions and” after “service for purposes” in heading and substituted “applying section 402(e)” for “applying subsections (a)(2) and (e) of section 402, and section 403(a)(2)” in text.Enacted provision · exact public law section
(16) Sections 406(c) and 407(c) of the 1986 Code are each amended— (A) by striking out “subsections (a)(2) and (e) of section 402, and section 403(a)(2)” and inserting in lieu thereof “section 402(e)”, and (B) by striking out “of Capital Gain Provisions and” in the heading thereof.Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011A(b)(1)(C) · 102 Stat. 3342
Redesignated · 26 U.S.C. § 407(e)
Pub. L. 100–647, § 1011A(b)(1)(C), redesignated pars. (2) to (4) as (1) to (3), respectively
Struck · 26 U.S.C. § 407(e)
Pub. L. 100–647, § 1011A(b)(1)(C), struck out former par. (1) which read as follows: “Section 72(d) (relating to employees’ annuities).”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 100–647, § 1011A(b)(1)(C), redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) which read as follows: “Section 72(d) (relating to employees’ annuities).”Enacted provision · exact public law section
(C) Sections 406(e) and 407(e) of the 1986 Code are each amended by striking out paragraph (1) and by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively.Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7831(f) · 103 Stat. 2106
Changed · 26 U.S.C. § 407(b)(1)(A)
Pub. L. 101–239, § 7831(f), made technical correction to Pub. L. 99–514, § 1114(b)(9)(B), see 1986 Amendment note below
Source evidence
Code amendment note
Subsec. (b)(1)(A). Pub. L. 101–239, § 7831(f), made technical correction to Pub. L. 99–514, § 1114(b)(9)(B), see 1986 Amendment note below.Enacted provision · exact public law section
(f) Amendment Related to Section 1114 of the 1986 Act.— Subparagraphs (A) and (B) of section 1114(b)(9) of the Tax Reform Act of 1986 are each amended by striking “consist of supervising” 26 USC 406, 407. and inserting “consist in supervising”.Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7811(g)(3) · 103 Stat. 2106
Substituted · 26 U.S.C. § 407(c)
Pub. L. 101–239, § 7811(g)(3), substituted “purposes of limitation” for “purposes limitation” in heading
Source evidence
Code amendment note
Subsec. (c). Pub. L. 101–239, § 7811(g)(3), substituted “purposes of limitation” for “purposes limitation” in heading.Enacted provision · exact public law section
(3) The heading of sections 406(c) and 407(c) are each amended by striking “Purposes Limitation” and inserting “Purposes of Limitation”.Unemployment Compensation Amendments of 1992
Pub. L. 102–318 title V § 521(b)(15) · 106 Stat. 290
Substituted · 26 U.S.C. § 407(c)
Pub. L. 102–318 substituted “402(d)” for “402(e)”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 102–318 substituted “402(d)” for “402(e)”.Enacted provision · exact public law section
(15) Section 407(c) (relating to termination of status as 26 USC 407. deemed employee not to be treated as separation from service for purposes of limitation of tax) is amended by striking “section 402(e)” and inserting “section 402(d)”.Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1401(b)(8) · 110 Stat. 1755
Struck · 26 U.S.C. § 407(c)
Pub. L. 104–188, § 1401(b)(8), struck out subsec. (c) which related to treatment of termination of status as deemed employee
Source evidence
Code amendment note
Subsec. (c). Pub. L. 104–188, § 1401(b)(8), struck out subsec. (c) which related to treatment of termination of status as deemed employee.Enacted provision · exact public law section
(8) Section 407(c) (relating to termination of status as deemed employee not to be treated as separation from service for purposes oflimitation of tax) is hereby repealed.Effective date note
Amendment by section 1401(b)(8) of Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1999, with retention of certain transition rules, see section 1401(c) of Pub. L. 104–188, set out as a note under section 402 of this title. Amendment by section 1402(b)(2) of Pub. L. 104–188 applicable with respect to decedents dying after Aug. 20, 1996, see section 1402(c) of Pub. L. 104–188, set out as a note under section 101 of this title.Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1402(b)(2) · 110 Stat. 1755
Redesignated · 26 U.S.C. § 407(e)(2); 26 U.S.C. § 407(e)(3)
Pub. L. 104–188, § 1402(b)(2), redesignated par. (3) as (2)
Struck · 26 U.S.C. § 407(e)(2); 26 U.S.C. § 407(e)(3)
Pub. L. 104–188, § 1402(b)(2), struck out former par. (2) which read as follows: “Section 101(b) (relating to employees’ death benefits).”
Source evidence
Code amendment note
Subsec. (e)(2), (3). Pub. L. 104–188, § 1402(b)(2), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “Section 101(b) (relating to employees’ death benefits).”Enacted provision · exact public law section
(2) Sections 406(e) and 407(e) are each amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).Effective date note
Amendment by section 1401(b)(8) of Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1999, with retention of certain transition rules, see section 1401(c) of Pub. L. 104–188, set out as a note under section 402 of this title. Amendment by section 1402(b)(2) of Pub. L. 104–188 applicable with respect to decedents dying after Aug. 20, 1996, see section 1402(c) of Pub. L. 104–188, set out as a note under section 101 of this title.
26 of 28 references resolved to an enrolled provision · 2 partial
Editorial Notes
Amendments1969–1996 · 10 rounds
1996
Subsec. (c). Pub. L. 104–188, § 1401(b)(8), struck out subsec. (c) which related to treatment of termination of status as deemed employee.
Subsec. (e)(2), (3). Pub. L. 104–188, § 1402(b)(2), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “Section 101(b) (relating to employees’ death benefits).”
1992
Subsec. (c). Pub. L. 102–318 substituted “402(d)” for “402(e)”.
1989
Subsec. (b)(1)(A). Pub. L. 101–239, § 7831(f), made technical correction to Pub. L. 99–514, § 1114(b)(9)(B), see 1986 Amendment note below.
Subsec. (c). Pub. L. 101–239, § 7811(g)(3), substituted “purposes of limitation” for “purposes limitation” in heading.
1988
Subsec. (c). Pub. L. 100–647, § 1011A(b)(16), struck out “of capital gain provisions and” after “service for purposes” in heading and substituted “applying section 402(e)” for “applying subsections (a)(2) and (e) of section 402, and section 403(a)(2)” in text.
Subsec. (e). Pub. L. 100–647, § 1011A(b)(1)(C), redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) which read as follows: “Section 72(d) (relating to employees’ annuities).”
1986
Subsec. (b)(1). Pub. L. 99–514, § 1112(d)(3), struck out “(without regard to paragraph (1)(A) thereof)” after “section 410(b)” in introductory text.
Subsec. (b)(1)(A). Pub. L. 99–514, § 1114(b)(9)(B), as amended by Pub. L. 101–239, § 7831(f), substituted “a highly compensated employee (within the meaning of section 414(q))” for “an officer, shareholder, or person whose principal duties consist in supervising the work of other employees of a domestic subsidiary”.
Subsec. (b)(1)(B). Pub. L. 99–514, § 1114(b)(9)(C), inserted “(as so defined)” after “employee”.
Subsec. (e)(5). Pub. L. 99–514, § 1852(e)(2)(D), struck out par. (5) which read as follows: “Section 2517 (relating to certain annuities under qualified plans).”
1984
Subsec. (a)(1). Pub. L. 98–369, § 491(d)(16), substituted “or an annuity plan described in section 403(a)” for “, an annuity plan described in section 403(a), or a bond purchase plan described in section 405(a)”.
Subsec. (a)(1)(B). Pub. L. 98–369, § 491(d)(17), substituted “or 403(a)” for “, 403(a), or 405(a)”.
Subsec. (d). Pub. L. 98–369, § 491(d)(18)(A), (B), substituted in introductory provision “section 404” for “sections 404 and 405(a)”, and “or annuity” for “annuity, or bond purchase”.
Subsec. (d)(2). Pub. L. 98–369, § 491(d)(18)(C), struck out “(or section 405(c))” after “section 404”.
1983
Subsec. (a)(1). Pub. L. 98–21 inserted “or resident” after “citizen”, and inserted “or residents” after “citizens” in subpar. (A).
1976
Subsec. (b)(2). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
1974
Subsec. (b)(1). Pub. L. 93–406, § 1016(a)(5), substituted “section 401(a)(4) and section 410(b) (without regard to paragraph (1)(A) thereof)” for “paragraphs (3)(B) and (4) of section 401(a)”.
Subsec. (c). Pub. L. 93–406, § 2005(c)(13), substituted “subsections (a)(2) and (e) of section 402” for “section 72(n), section 402(a)(2)”.
1969
Subsec. (c). Pub. L. 91–172 substituted “provisions and limitation of tax” for “provisions” in heading, and substituted “section 72(n), section 402(a)(2),” for “section 402(a)(2)” in text.
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by section 1401(b)(8) of Pub. L. 104–188 applicable to taxable years beginning after , with retention of certain transition rules, see section 1401(c) of Pub. L. 104–188, set out as a note under section 402 of this title.
Amendment by section 1402(b)(2) of Pub. L. 104–188 applicable with respect to decedents dying after , see section 1402(c) of Pub. L. 104–188, set out as a note under section 101 of this title.
Effective Date of 1992 Amendment
Amendment by Pub. L. 102–318 applicable to distributions after , see section 521(e) of Pub. L. 102–318, set out as a note under section 402 of this title.
Effective Date of 1989 Amendment
Amendment by section 7811(g)(3) of Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 7817 of Pub. L. 101–239, set out as a note under section 1 of this title.
Amendment by section 7831(f) of Pub. L. 101–239 effective as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7831(g) of Pub. L. 101–239, set out as a note under section 1 of this title.
Effective Date of 1988 Amendment
Amendment by 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.
Effective Date of 1986 Amendment
Amendment by section 1112(d)(3) of Pub. L. 99–514 applicable to plan years beginning after , with special rule regarding collective bargaining agreements ratified before , and with provision for waiver of excise tax on reversions, see section 1112(e) of Pub. L. 99–514, set out as a note under section 401 of this title.
Amendment by section 1114(b)(9)(B), (C) of Pub. L. 99–514 applicable to years beginning after , see section 1114(c)(3) of Pub. L. 99–514, set out as a note under section 414 of this title.
Amendment by section 1852(e)(2)(D) of Pub. L. 99–514 applicable to transfers after , see section 1852(e)(2)(E) of Pub. L. 99–514, set out as a note under section 406 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369 applicable to obligations issued after , see section 491(f)(1) of Pub. L. 98–369, set out as a note under section 62 of this title.
Effective Date of 1983 Amendment
Amendment by Pub. L. 98–21 applicable to plans established after , except that at the election of any domestic parent corporation such amendment shall also apply to any plan established on or before , see section 321(f) of Pub. L. 98–21 set out as a note under section 406 of this title.
Effective Date of 1974 Amendment
Amendment by section 1016(a)(5) of Pub. L. 93–406 applicable, except as otherwise provided in section 1017(c) through (i) of Pub. L. 93–406, for plan years beginning after , but, in the case of plans in existence on , amendment by Pub. L. 93–406 applicable for plan years beginning after , see section 1017 of Pub. L. 93–406, set out as an Effective Date; Transitional Rules note under section 410 of this title.
Amendment by section 2005(c)(13) of Pub. L. 93–406 applicable only with respect to distributions or payments made after , in taxable years beginning after , 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 Pub. L. 91–172 applicable to taxable years ending after , see section 515(d) of Pub. L. 91–172, set out as a note under section 402 of this title.
Effective Date
Section applicable to taxable years ending after , see section 220(d) of Pub. L. 88–272, set out as a note under section 406 of this title.
Regulations
Secretary of the Treasury or his delegate to issue before , final regulations to carry out amendments made by sections 1112 and 1114 of Pub. L. 99–514, see section 1141 of Pub. L. 99–514, set out as a note under section 401 of this title.
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 , 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 , 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 , see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.
Credits
1964–1996 · 11 acts
- 1964Added Pub. L. 88–272, title II, § 220(b), , 78 Stat. 60
- 1969amended Pub. L. 91–172, title V, § 515(c)(3), , 83 Stat. 646
- 1974Pub. L. 93–406, title II, §§ 1016(a)(5), 2005(c)(13), , 88 Stat. 929, 992
- 1976Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834
- 1983Pub. L. 98–21, title III, § 321(d), , 97 Stat. 119
- 1984Pub. L. 98–369, div. A, title IV, § 491(d)(16)–(18), , 98 Stat. 850
- 1986Pub. L. 99–514, title XI, §§ 1112(d)(3), 1114(b)(9)(B), (C), title XVIII, § 1852(e)(2)(D), , 100 Stat. 2445, 2451, 2868
- 1988Pub. L. 100–647, title I, § 1011A(b)(1)(C), (16), , 102 Stat. 3472, 3475
- 1989Pub. L. 101–239, title VII, §§ 7811(g)(3), 7831(f), , 103 Stat. 2409, 2427
- 1992Pub. L. 102–318, title V, § 521(b)(15), , 106 Stat. 311
- 1996Pub. L. 104–188, title I, §§ 1401(b)(8), 1402(b)(2), , 110 Stat. 1789, 1790.
Show as published
(Added Pub. L. 88–272, title II, § 220(b), , 78 Stat. 60; amended Pub. L. 91–172, title V, § 515(c)(3), , 83 Stat. 646; Pub. L. 93–406, title II, §§ 1016(a)(5), 2005(c)(13), , 88 Stat. 929, 992; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834; Pub. L. 98–21, title III, § 321(d), , 97 Stat. 119; Pub. L. 98–369, div. A, title IV, § 491(d)(16)–(18), , 98 Stat. 850; Pub. L. 99–514, title XI, §§ 1112(d)(3), 1114(b)(9)(B), (C), title XVIII, § 1852(e)(2)(D), , 100 Stat. 2445, 2451, 2868; Pub. L. 100–647, title I, § 1011A(b)(1)(C), (16), , 102 Stat. 3472, 3475; Pub. L. 101–239, title VII, §§ 7811(g)(3), 7831(f), , 103 Stat. 2409, 2427; Pub. L. 102–318, title V, § 521(b)(15), , 106 Stat. 311; Pub. L. 104–188, title I, §§ 1401(b)(8), 1402(b)(2), , 110 Stat. 1789, 1790.)