Title 26 — Internal Revenue Code

Part I · Chapter 1 — Normal Taxes and Surtaxes

§ 414. Definitions and special rules

Statutory text

Service for predecessor employer

For purposes of this part—

in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and

in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary, be treated as service for the employer.

Employees of controlled group of corporations

In general

For purposes of sections 401, 408(k), 408(p), 410, 411, 415, and 416, all employees of all corporations which are members of a controlled group of corporations (within the meaning of section 1563(a), determined without regard to section 1563(a)(4) and (e)(3)(C)) shall be treated as employed by a single employer. With respect to a plan adopted by more than one such corporation, the applicable limitations provided by section 404(a) shall be determined as if all such employers were a single employer, and allocated to each employer in accordance with regulations prescribed by the Secretary.

Special rules for applying family attribution

For purposes of applying the attribution rules under section 1563 with respect to paragraph (1), the following rules apply:

Community property laws shall be disregarded for purposes of determining ownership.

Except as provided by the Secretary, stock of an individual not attributed under section 1563(e)(5) to such individual’s spouse shall not be attributed to such spouse by reason of the combined application of paragraphs (1) and (6)(A) of section 1563(e).

Except as provided by the Secretary, in the case of stock in different corporations that is attributed to a child under section 1563(e)(6)(A) from each parent, and is not attributed to such parents as spouses under section 1563(e)(5), such attribution to the child shall not by itself result in such corporations being members of the same controlled group.

Plan shall not fail to be treated as satisfying this section

If application of paragraph (2) causes 2 or more entities to be a controlled group or to no longer be in a controlled group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies.

Employees of partnerships, proprietorships, etc., which are under common control

In general

Except as provided in paragraph (2), for purposes of sections 401, 408(k), 408(p), 410, 411, 415, and 416, under regulations prescribed by the Secretary, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (b).

Special rules relating to church plans

General rule

Except as provided in subparagraphs (B) and (C), for purposes of this subsection and subsection (m), an organization that is otherwise eligible to participate in a church plan shall not be aggregated with another such organization and treated as a single employer with such other organization for a plan year beginning in a taxable year unless—

one such organization provides (directly or indirectly) at least 80 percent of the operating funds for the other organization during the preceding taxable year of the recipient organization, and

there is a degree of common management or supervision between the organizations such that the organization providing the operating funds is directly involved in the day-to-day operations of the other organization.

Nonqualified church-controlled organizations

Notwithstanding subparagraph (A), for purposes of this subsection and subsection (m), an organization that is a nonqualified church-controlled organization shall be aggregated with 1 or more other nonqualified church-controlled organizations, or with an organization that is not exempt from tax under section 501, and treated as a single employer with such other organization, if at least 80 percent of the directors or trustees of such other organization are either representatives of, or directly or indirectly controlled by, such nonqualified church-controlled organization. For purposes of this subparagraph, the term “nonqualified church-controlled organization” means a church-controlled tax-exempt organization described in section 501(c)(3) that is not a qualified church-controlled organization (as defined in section 3121(w)(3)(B)).

Permissive aggregation among church-related organizations

The church or convention or association of churches with which an organization described in subparagraph (A) is associated (within the meaning of subsection (e)(3)(D)), or an organization designated by such church or convention or association of churches, may elect to treat such organizations as a single employer for a plan year. Such election, once made, shall apply to all succeeding plan years unless revoked with notice provided to the Secretary in such manner as the Secretary shall prescribe.

Permissive disaggregation of church-related organizations

For purposes of subparagraph (A), in the case of a church plan, an employer may elect to treat churches (as defined in section 403(b)(12)(B)) separately from entities that are not churches (as so defined), without regard to whether such entities maintain separate church plans. Such election, once made, shall apply to all succeeding plan years unless revoked with notice provided to the Secretary in such manner as the Secretary shall prescribe.

Governmental plan

For purposes of this part, the term “governmental plan” means a plan established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. The term “governmental plan” also includes any plan to which the Railroad Retirement Act of 1935 or 1937 applies and which is financed by contributions required under that Act and any plan of an international organization which is exempt from taxation by reason of the International Organizations Immunities Act (59 Stat. 669). The term “governmental plan” includes a plan which is established and maintained by an Indian tribal government (as defined in section 7701(a)(40)), a subdivision of an Indian tribal government (determined in accordance with section 7871(d)), or an agency or instrumentality of either, and all of the participants of which are employees of such entity substantially all of whose services as such an employee are in the performance of essential governmental functions but not in the performance of commercial activities (whether or not an essential government function).

Church plan

In general

For purposes of this part, the term “church plan” means a plan established and maintained (to the extent required in paragraph (2)(B)) for its employees (or their beneficiaries) by a church or by a convention or association of churches which is exempt from tax under section 501.

Certain plans excluded

The term “church plan” does not include a plan—

which is established and maintained primarily for the benefit of employees (or their beneficiaries) of such church or convention or association of churches who are employed in connection with one or more unrelated trades or businesses (within the meaning of section 513); or

if less than substantially all of the individuals included in the plan are individuals described in paragraph (1) or (3)(B) (or their beneficiaries).

Definitions and other provisions

For purposes of this subsection—

Treatment as church plan

A plan established and maintained for its employees (or their beneficiaries) by a church or by a convention or association of churches includes a plan maintained by an organization, whether a civil law corporation or otherwise, the principal purpose or function of which is the administration or funding of a plan or program for the provision of retirement benefits or welfare benefits, or both, for the employees of a church or a convention or association of churches, if such organization is controlled by or associated with a church or a convention or association of churches.

Employee defined

The term employee of a church or a convention or association of churches shall include—

a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry, regardless of the source of his compensation;

an employee of an organization, whether a civil law corporation or otherwise, which is exempt from tax under section 501 and which is controlled by or associated with a church or a convention or association of churches; and

an individual described in subparagraph (E).

Church treated as employer

A church or a convention or association of churches which is exempt from tax under section 501 shall be deemed the employer of any individual included as an employee under subparagraph (B).

Association with church

An organization, whether a civil law corporation or otherwise, is associated with a church or a convention or association of churches if it shares common religious bonds and convictions with that church or convention or association of churches.

Special rule in case of separation from plan

If an employee who is included in a church plan separates from the service of a church or a convention or association of churches or an organization described in clause (ii) of paragraph (3)(B), the church plan shall not fail to meet the requirements of this subsection merely because the plan—

retains the employee’s accrued benefit or account for the payment of benefits to the employee or his beneficiaries pursuant to the terms of the plan; or

receives contributions on the employee’s behalf after the employee’s separation from such service, but only for a period of 5 years after such separation, unless the employee is disabled (within the meaning of the disability provisions of the church plan or, if there are no such provisions in the church plan, within the meaning of section 72(m)(7)) at the time of such separation from service.

Correction of failure to meet church plan requirements

In general

If a plan established and maintained for its employees (or their beneficiaries) by a church or by a convention or association of churches which is exempt from tax under section 501 fails to meet one or more of the requirements of this subsection and corrects its failure to meet such requirements within the correction period, the plan shall be deemed to meet the requirements of this subsection for the year in which the correction was made and for all prior years.

Failure to correct

If a correction is not made within the correction period, the plan shall be deemed not to meet the requirements of this subsection beginning with the date on which the earliest failure to meet one or more of such requirements occurred.

Correction period defined

The term “correction period” means—

the period, ending 270 days after the date of mailing by the Secretary of a notice of default with respect to the plan’s failure to meet one or more of the requirements of this subsection;

any period set by a court of competent jurisdiction after a final determination that the plan fails to meet such requirements, or, if the court does not specify such period, any reasonable period determined by the Secretary on the basis of all the facts and circumstances, but in any event not less than 270 days after the determination has become final; or

any additional period which the Secretary determines is reasonable or necessary for the correction of the default,

whichever has the latest ending date.

Special rules for chaplains and self-employed ministers

Certain ministers may participate

For purposes of this part—

In general

A duly ordained, commissioned, or licensed minister of a church is described in paragraph (3)(B) if, in connection with the exercise of their ministry, the minister—

is a self-employed individual (within the meaning of section 401(c)(1)(B), or

is employed by an organization other than an organization which is described in section 501(c)(3) and with respect to which the minister shares common religious bonds.

Treatment as employer and employee

For purposes of sections 403(b)(1)(A) and 404(a)(10), a minister described in clause (i)(I) shall be treated as employed by the minister’s own employer which is an organization described in section 501(c)(3) and exempt from tax under section 501(a).

Special rules for applying section 403(b) to self-employed ministers

In the case of a minister described in subparagraph (A)(i)(I)—

the minister’s includible compensation under section 403(b)(3) shall be determined by reference to the minister’s earned income (within the meaning of section 401(c)(2)) from such ministry rather than the amount of compensation which is received from an employer, and

the years (and portions of years) in which such minister was a self-employed individual (within the meaning of section 401(c)(1)(B)) with respect to such ministry shall be included for purposes of section 403(b)(4).

Effect on non-denominational plans

If a duly ordained, commissioned, or licensed minister of a church in the exercise of his or her ministry participates in a church plan (within the meaning of this section) and in the exercise of such ministry is employed by an employer not otherwise participating in such church plan, then such employer may exclude such minister from being treated as an employee of such employer for purposes of applying sections 401(a)(3), 401(a)(4), and 401(a)(5), as in effect on September 1, 1974, and sections 401(a)(4), 401(a)(5), 401(a)(26), 401(k)(3), 401(m), 403(b)(1)(D) (including section 403(b)(12)), and 410 to any stock bonus, pension, profit-sharing, or annuity plan (including an annuity described in section 403(b) or a retirement income account described in section 403(b)(9)). The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purpose of, and prevent the abuse of, this subparagraph.

Compensation taken into account only once

If any compensation is taken into account in determining the amount of any contributions made to, or benefits to be provided under, any church plan, such compensation shall not also be taken into account in determining the amount of any contributions made to, or benefits to be provided under, any other stock bonus, pension, profit-sharing, or annuity plan which is not a church plan.

Exclusion

In the case of a contribution to a church plan made on behalf of a minister described in subparagraph (A)(i)(II), such contribution shall not be included in the gross income of the minister to the extent that such contribution would not be so included if the minister was an employee of a church.

Multiemployer plan

Definition

For purposes of this part, the term “multiemployer plan” means a plan—

to which more than one employer is required to contribute,

which is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and

which satisfies such other requirements as the Secretary of Labor may prescribe by regulation.

Cases of common control

For purposes of this subsection, all trades or businesses (whether or not incorporated) which are under common control within the meaning of subsection (c) are considered a single employer.

Continuation of status after termination

Notwithstanding paragraph (1), a plan is a multiemployer plan on and after its termination date under title IV of the Employee Retirement Income Security Act of 1974 if the plan was a multiemployer plan under this subsection for the plan year preceding its termination date.

Transitional rule

For any plan year which began before the date of the enactment of the Multiemployer Pension Plan Amendments Act of 1980, the term “multiemployer plan” means a plan described in this subsection as in effect immediately before that date.

Special election

Within one year after the date of the enactment of the Multiemployer Pension Plan Amendments Act of 1980, a multiemployer plan may irrevocably elect, pursuant to procedures established by the Pension Benefit Guaranty Corporation and subject to the provisions of section 4403(b) and (c) of the Employee Retirement Income Security Act of 1974, that the plan shall not be treated as a multiemployer plan for any purpose under such Act or this title, if for each of the last 3 plan years ending prior to the effective date of the Multiemployer Pension Plan Amendments Act of 1980—

the plan was not a multiemployer plan because the plan was not a plan described in section 3(37)(A)(iii) of the Employee Retirement Income Security Act of 1974 and section 414(f)(1)(C) (as such provisions were in effect on the day before the date of the enactment of the Multiemployer Pension Plan Amendments Act of 1980); and

the plan had been identified as a plan that was not a multiemployer plan in substantially all its filings with the Pension Benefit Guaranty Corporation, the Secretary of Labor and the Secretary.

Election with regard to multiemployer status

Within 1 year after the enactment of the Pension Protection Act of 2006—

An election under paragraph (5) may be revoked, pursuant to procedures prescribed by the Pension Benefit Guaranty Corporation, if, for each of the 3 plan years prior to the date of the enactment of that Act, the plan would have been a multiemployer plan but for the election under paragraph (5), and

a plan that meets the criteria in subparagraph (A) and (B) of paragraph (1) of this subsection or that is described in subparagraph (E) may, pursuant to procedures prescribed by the Pension Benefit Guaranty Corporation, elect to be a multiemployer plan, if—

for each of the 3 plan years immediately preceding the first plan year for which the election under this paragraph is effective with respect to the plan, the plan has met those criteria or is so described,

substantially all of the plan’s employer contributions for each of those plan years were made or required to be made by organizations that were exempt from tax under section 501, and

the plan was established prior to September 2, 1974.

An election under this paragraph shall be effective for all purposes under this Act 1 and under the Employee Retirement Income Security Act of 1974, starting with any plan year beginning on or after January 1, 1999, and ending before January 1, 2008, as designated by the plan in the election made under subparagraph (A)(ii).

Once made, an election under this paragraph shall be irrevocable, except that a plan described in subparagraph (A)(ii) shall cease to be a multiemployer plan as of the plan year beginning immediately after the first plan year for which the majority of its employer contributions were made or required to be made by organizations that were not exempt from tax under section 501.

The fact that a plan makes an election under subparagraph (A)(ii) does not imply that the plan was not a multiemployer plan prior to the date of the election or would not be a multiemployer plan without regard to the election.

A plan is described in this subparagraph if it is a plan sponsored by an organization which is described in section 501(c)(5) and exempt from tax under section 501(a) and which was established in Chicago, Illinois, on August 12, 1881.

Maintenance under collective bargaining agreement.—

For purposes of this title and the Employee Retirement Income Security Act of 1974, a plan making an election under this paragraph shall be treated as maintained pursuant to a collective bargaining agreement if a collective bargaining agreement, expressly or otherwise, provides for or permits employer contributions to the plan by one or more employers that are signatory to such agreement, or participation in the plan by one or more employees of an employer that is signatory to such agreement, regardless of whether the plan was created, established, or maintained for such employees by virtue of another document that is not a collective bargaining agreement.

Plan administrator

For purposes of this part, the term “plan administrator” means—

the person specifically so designated by the terms of the instrument under which the plan is operated;

in the absence of a designation referred to in paragraph (1)—

in the case of a plan maintained by a single employer, such employer,

in the case of a plan maintained by two or more employers or jointly by one or more employers and one or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who maintained the plan, or

in any case to which subparagraph (A) or (B) does not apply, such other person as the Secretary may by regulation, prescribe.

Tax treatment of certain contributions

In general

Effective with respect to taxable years beginning after December 31, 1973, for purposes of this title, any amount contributed—

to an employees’ trust described in section 401(a), or

under a plan described in section 403(a), shall not be treated as having been made by the employer if it is designated as an employee contribution.

Designation by units of government

For purposes of paragraph (1), in the case of any plan established by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing, or a governmental plan described in the last sentence of section 414(d) (relating to plans of Indian tribal governments), where the contributions of employing units are designated as employee contributions but where any employing unit picks up the contributions, the contributions so picked up shall be treated as employer contributions.

Defined contribution plan

For purposes of this part, the term “defined contribution plan” means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant’s account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant’s account.

Defined benefit plan

For purposes of this part, the term “defined benefit plan” means any plan which is not a defined contribution plan.

Certain plans

A defined benefit plan which provides a benefit derived from employer contributions which is based partly on the balance of the separate account of a participant shall—

for purposes of section 410 (relating to minimum participation standards), be treated as a defined contribution plan,

for purposes of sections 72(d) (relating to treatment of employee contributions as separate contract), 411(a)(7)(A) (relating to minimum vesting standards), 415 (relating to limitations on benefits and contributions under qualified plans), and 401(m) (relating to nondiscrimination tests for matching requirements and employee contributions), be treated as consisting of a defined contribution plan to the extent benefits are based on the separate account of a participant and as a defined benefit plan with respect to the remaining portion of benefits under the plan, and

for purposes of section 4975 (relating to tax on prohibited transactions), be treated as a defined benefit plan.

Merger and consolidations of plans or transfers of plan assets

In general

A trust which forms a part of a plan shall not constitute a qualified trust under section 401 and a plan shall be treated as not described in section 403(a) unless in the case of any merger or consolidation of the plan with, or in the case of any transfer of assets or liabilities of such plan to, any other trust plan after September 2, 1974, each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated). The preceding sentence does not apply to any multiemployer plan with respect to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which Title IV of the Employee Retirement Income Security Act of 1974 applies.

Allocation of assets in plan spin-offs, etc.

In general

In the case of a plan spin-off of a defined benefit plan, a trust which forms part of—

the original plan, or

any plan spun off from such plan,

shall not constitute a qualified trust under this section unless the applicable percentage of excess assets are allocated to each of such plans.

Applicable percentage

For purposes of subparagraph (A), the term “applicable percentage” means, with respect to each of the plans described in clauses (i) and (ii) of subparagraph (A), the percentage determined by dividing—

the excess (if any) of—

the sum of the funding target and target normal cost determined under section 430, over

the amount of the assets required to be allocated to the plan after the spin-off (without regard to this paragraph), by

the sum of the excess amounts determined separately under clause (i) for all such plans.

Excess assets

For purposes of subparagraph (A), the term “excess assets” means an amount equal to the excess (if any) of—

the fair market value of the assets of the original plan immediately before the spin-off, over

the amount of assets required to be allocated after the spin-off to all plans (determined without regard to this paragraph).

Certain spun-off plans not taken into account

In general

A plan involved in a spin-off which is described in clause (ii), (iii), or (iv) shall not be taken into account for purposes of this paragraph, except that the amount determined under subparagraph (C)(ii) shall be increased by the amount of assets allocated to such plan.

Plans transferred out of controlled groups

A plan is described in this clause if, after such spin-off, such plan is maintained by an employer who is not a member of the same controlled group as the employer maintaining the original plan.

Plans transferred out of multiple employer plans

A plan as described in this clause if, after the spin-off, any employer maintaining such plan (and any member of the same controlled group as such employer) does not maintain any other plan remaining after the spin-off which is also maintained by another employer (or member of the same controlled group as such other employer) which maintained the plan in existence before the spin-off.

Terminated plans

A plan is described in this clause if, pursuant to the transaction involving the spin-off, the plan is terminated.

Controlled group

For purposes of this subparagraph, the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or (o).

Paragraph not to apply to multiemployer plans

This paragraph does not apply to any multiemployer plan with respect to any spin-off to the extent that participants either before or after the spin-off are covered under a multiemployer plan to which title IV of the Employee Retirement Income Security Act of 1974 applies.

Application to similar transaction

Except as provided by the Secretary, rules similar to the rules of this paragraph shall apply to transactions similar to spin-offs.

Special rules for bridge depository institutions

For purposes of this paragraph, in the case of a bridge depository institution established under section 11(i) of the Federal Deposit Insurance Act (12 U.S.C. 1821(i))—

such bank shall be treated as a member of any controlled group which includes any insured bank (as defined in section 3(h) of such Act (12 U.S.C. 1813(h)))—

which maintains a defined benefit plan,

which is closed by the appropriate bank regulatory authorities, and

any asset and liabilities of which are received by the bridge depository institution, and

the requirements of this paragraph shall not be treated as met with respect to such plan unless during the 180-day period beginning on the date such insured bank is closed—

the bridge depository institution has the right to require the plan to transfer (subject to the provisions of this paragraph) not more than 50 percent of the excess assets (as defined in subparagraph (C)) to a defined benefit plan maintained by the bridge depository institution with respect to participants or former participants (including retirees and beneficiaries) in the original plan employed by the bridge depository institution or formerly employed by the closed bank, and

no other merger, spin-off, termination, or similar transaction involving the portion of the excess assets described in subclause (I) may occur without the prior written consent of the bridge depository institution.

Employees of an affiliated service group

In general

For purposes of the employee benefit requirements listed in paragraph (4), except to the extent otherwise provided in regulations, all employees of the members of an affiliated service group shall be treated as employed by a single employer.

Affiliated service group

For purposes of this subsection, the term “affiliated service group” means a group consisting of a service organization (hereinafter in this paragraph referred to as the “first organization”) and one or more of the following:

any service organization which—

is a shareholder or partner in the first organization, and

regularly performs services for the first organization or is regularly associated with the first organization in performing services for third persons, and

any other organization if—

a significant portion of the business of such organization is the performance of services (for the first organization, for organizations described in subparagraph (A), or for both) of a type historically performed in such service field by employees, and

10 percent or more of the interests in such organization is held by persons who are highly compensated employees (within the meaning of section 414(q)) of the first organization or an organization described in subparagraph (A).

Service organizations

For purposes of this subsection, the term “service organization” means an organization the principal business of which is the performance of services.

Employee benefit requirements

For purposes of this subsection, the employee benefit requirements listed in this paragraph are—

paragraphs (3), (4), (7), (16), (17), and (26) of section 401(a), and

sections 408(k), 408(p), 410, 411, 415, and 416.

Certain organizations performing management functions

For purposes of this subsection, the term “affiliated service group” also includes a group consisting of—

an organization the principal business of which is performing, on a regular and continuing basis, management functions for 1 organization (or for 1 organization and other organizations related to such 1 organization), and

the organization (and related organizations) for which such functions are so performed by the organization described in subparagraph (A).

For purposes of this paragraph, the term “related organizations” has the same meaning as the term “related persons” when used in section 144(a)(3).

Other definitions

For purposes of this subsection—

Organization defined

The term “organization” means a corporation, partnership, or other organization.

Ownership

In general

In determining ownership, the principles of section 318(a) shall apply, except that community property laws shall be disregarded for purposes of determining ownership.

Special rules for applying family attribution

For purposes of applying the attribution rules under section 318 with respect to clause (i), the following rules apply:

Community property laws shall be disregarded for purposes of determining ownership.

Except as provided by the Secretary, stock of an individual not attributed under section 318(a)(1)(A)(i) to such individual’s spouse shall not be attributed by reason of the combined application of paragraphs (1)(A)(ii) and (4) of section 318(a) to such spouse from a child who has not attained the age of 21 years.

Except as provided by the Secretary, in the case of stock in different organizations which is attributed under section 318(a)(1)(A)(ii) from each parent to a child who has not attained the age of 21 years, and is not attributed to such parents as spouses under section 318(a)(1)(A)(i), such attribution to the child shall not by itself result in such organizations being members of the same affiliated service group.

Plan shall not fail to be treated as satisfying this section

If the application of clause (ii) causes two or more entities to be an affiliated service group, or to no longer be in an affiliated service group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies.

Employee leasing

In general

For purposes of the requirements listed in paragraph (3), with respect to any person (hereinafter in this subsection referred to as the “recipient”) for whom a leased employee performs services—

the leased employee shall be treated as an employee of the recipient, but

contributions or benefits provided by the leasing organization which are attributable to services performed for the recipient shall be treated as provided by the recipient.

Leased employee

For purposes of paragraph (1), the term “leased employee” means any person who is not an employee of the recipient and who provides services to the recipient if—

such services are provided pursuant to an agreement between the recipient and any other person (in this subsection referred to as the “leasing organization”),

such person has performed such services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, and

such services are performed under primary direction or control by the recipient.

Requirements

For purposes of this subsection, the requirements listed in this paragraph are—

paragraphs (3), (4), (7), (16), (17), and (26) of section 401(a),

sections 408(k), 408(p), 410, 411, 415, and 416, and

sections 79, 106, 117(d), 125, 127, 129, 132, 137, 274(j), 505, and 4980B.

Time when first considered as employee

In general

In the case of any leased employee, paragraph (1) shall apply only for purposes of determining whether the requirements listed in paragraph (3) are met for periods after the close of the period referred to in paragraph (2)(B).

Years of service

In the case of a person who is an employee of the recipient (whether by reason of this subsection or otherwise), for purposes of the requirements listed in paragraph (3), years of service for the recipient shall be determined by taking into account any period for which such employee would have been a leased employee but for the requirements of paragraph (2)(B).

Safe harbor

In general

In the case of requirements described in subparagraphs (A) and (B) of paragraph (3), this subsection shall not apply to any leased employee with respect to services performed for a recipient if—

such employee is covered by a plan which is maintained by the leasing organization and meets the requirements of subparagraph (B), and

leased employees (determined without regard to this paragraph) do not constitute more than 20 percent of the recipient’s nonhighly compensated work force.

Plan requirements

A plan meets the requirements of this subparagraph if—

such plan is a money purchase pension plan with a nonintegrated employer contribution rate for each participant of at least 10 percent of compensation,

such plan provides for full and immediate vesting, and

each employee of the leasing organization (other than employees who perform substantially all of their services for the leasing organization) immediately participates in such plan.

Clause (iii) shall not apply to any individual whose compensation from the leasing organization in each plan year during the 4-year period ending with the plan year is less than $1,000.

Definitions

For purposes of this paragraph—

Highly compensated employee

The term “highly compensated employee” has the meaning given such term by section 414(q).

Nonhighly compensated work force

The term “nonhighly compensated work force” means the aggregate number of individuals (other than highly compensated employees)—

who are employees of the recipient (without regard to this subsection) and have performed services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, or

who are leased employees with respect to the recipient (determined without regard to this paragraph).

Compensation

The term “compensation” has the same meaning as when used in section 415; except that such term shall include—

any employer contribution under a qualified cash or deferred arrangement to the extent not included in gross income under section 402(e)(3) or 402(h)(1)(B),

any amount which the employee would have received in cash but for an election under a cafeteria plan (within the meaning of section 125), and

any amount contributed to an annuity contract described in section 403(b) pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)).

Other rules

For purposes of this subsection—

Related persons

The term “related persons” has the same meaning as when used in section 144(a)(3).

Employees of entities under common control

The rules of subsections (b), (c), (m), and (o) shall apply.

Regulations

The Secretary shall prescribe such regulations (which may provide rules in addition to the rules contained in subsections (m) and (n)) as may be necessary to prevent the avoidance of any employee benefit requirement listed in subsection (m)(4) or (n)(3) or any requirement under section 457 through the use of—

separate organizations,

employee leasing, or

other arrangements.

The regulations prescribed under subsection (n) shall include provisions to minimize the recordkeeping requirements of subsection (n) in the case of an employer which has no top-heavy plans (within the meaning of section 416(g)) and which uses the services of persons (other than employees) for an insignificant percentage of the employer’s total workload.

Qualified domestic relations order defined

For purposes of this subsection and section 401(a)(13)—

In general

Qualified domestic relations order

The term “qualified domestic relations order” means a domestic relations order—

which creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable with respect to a participant under a plan, and

with respect to which the requirements of paragraphs (2) and (3) are met.

Domestic relations order

The term “domestic relations order” means any judgment, decree, or order (including approval of a property settlement agreement) which—

relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child, or other dependent of a participant, and

is made pursuant to a State or Tribal domestic relations law (including a community property law).

For purposes of clause (ii), the term “Tribal” with respect to a domestic relations law means such a law which is issued by or under the laws of an Indian tribal government, a subdivision of such an Indian tribal government, or an agency or instrumentality of either.

Order must clearly specify certain facts

A domestic relations order meets the requirements of this paragraph only if such order clearly specifies—

the name and the last known mailing address (if any) of the participant and the name and mailing address of each alternate payee covered by the order,

the amount or percentage of the participant’s benefits to be paid by the plan to each such alternate payee, or the manner in which such amount or percentage is to be determined,

the number of payments or period to which such order applies, and

each plan to which such order applies.

Order may not alter amount, form, etc., of benefits

A domestic relations order meets the requirements of this paragraph only if such order—

does not require a plan to provide any type or form of benefit, or any option, not otherwise provided under the plan,

does not require the plan to provide increased benefits (determined on the basis of actuarial value), and

does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order.

Exception for certain payments made after earliest retirement age

In general

A domestic relations order shall not be treated as failing to meet the requirements of subparagraph (A) of paragraph (3) solely because such order requires that payment of benefits be made to an alternate payee—

in the case of any payment before a participant has separated from service, on or after the date on which the participant attains (or would have attained) the earliest retirement age,

as if the participant had retired on the date on which such payment is to begin under such order (but taking into account only the present value of the benefits actually accrued and not taking into account the present value of any employer subsidy for early retirement), and

in any form in which such benefits may be paid under the plan to the participant (other than in the form of a joint and survivor annuity with respect to the alternate payee and his or her subsequent spouse).

For purposes of clause (ii), the interest rate assumption used in determining the present value shall be the interest rate specified in the plan or, if no rate is specified, 5 percent.

Earliest retirement age

For purposes of this paragraph, the term “earliest retirement age” means the earlier of—

the date on which the participant is entitled to a distribution under the plan, or

the later of—

the date the participant attains age 50, or

the earliest date on which the participant could begin receiving benefits under the plan if the participant separated from service.

Treatment of former spouse as surviving spouse for purposes of determining survivor benefits

To the extent provided in any qualified domestic relations order—

the former spouse of a participant shall be treated as a surviving spouse of such participant for purposes of sections 401(a)(11) and 417 (and any spouse of the participant shall not be treated as a spouse of the participant for such purposes), and

if married for at least 1 year, the surviving former spouse shall be treated as meeting the requirements of section 417(d).

Plan procedures with respect to orders

Notice and determination by administrator

In the case of any domestic relations order received by a plan—

the plan administrator shall promptly notify the participant and each alternate payee of the receipt of such order and the plan’s procedures for determining the qualified status of domestic relations orders, and

within a reasonable period after receipt of such order, the plan administrator shall determine whether such order is a qualified domestic relations order and notify the participant and each alternate payee of such determination.

Plan to establish reasonable procedures

Each plan shall establish reasonable procedures to determine the qualified status of domestic relations orders and to administer distributions under such qualified orders.

Procedures for period during which determination is being made

In general

During any period in which the issue of whether a domestic relations order is a qualified domestic relations order is being determined (by the plan administrator, by a court of competent jurisdiction, or otherwise), the plan administrator shall separately account for the amounts (hereinafter in this paragraph referred to as the “segregated amounts”) which would have been payable to the alternate payee during such period if the order had been determined to be a qualified domestic relations order.

Payment to alternate payee if order determined to be qualified domestic relations order

If within the 18-month period described in subparagraph (E) the order (or modification thereof) is determined to be a qualified domestic relations order, the plan administrator shall pay the segregated amounts (including any interest thereon) to the person or persons entitled thereto.

Payment to plan participant in certain cases

If within the 18-month period described in subparagraph (E)—

it is determined that the order is not a qualified domestic relations order, or

the issue as to whether such order is a qualified domestic relations order is not resolved,

then the plan administrator shall pay the segregated amounts (including any interest thereon) to the person or persons who would have been entitled to such amounts if there had been no order.

Subsequent determination or order to be applied prospectively only

Any determination that an order is a qualified domestic relations order which is made after the close of the 18-month period described in subparagraph (E) shall be applied prospectively only.

Determination of 18-month period

For purposes of this paragraph, the 18-month period described in this subparagraph is the 18-month period beginning with the date on which the first payment would be required to be made under the domestic relations order.

Alternate payee defined

The term “alternate payee” means any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant.

Subsection not to apply to plans to which section 401(a)(13) does not apply

This subsection shall not apply to any plan to which section 401(a)(13) does not apply. For purposes of this title, except as provided in regulations, any distribution from an annuity contract under section 403(b) pursuant to a qualified domestic relations order shall be treated in the same manner as a distribution from a plan to which section 401(a)(13) applies.

Waiver of certain distribution requirements

With respect to the requirements of subsections (a) and (k) of section 401, section 403(b), section 409(d), and section 457(d), a plan shall not be treated as failing to meet such requirements solely by reason of payments to an alternative payee pursuant to a qualified domestic relations order.

Application of rules to certain other plans

For purposes of this title, a distribution or payment from a governmental plan (as defined in subsection (d)) or a church plan (as described in subsection (e)) or an eligible deferred compensation plan (within the meaning of section 457(b)) shall be treated as made pursuant to a qualified domestic relations order if it is made pursuant to a domestic relations order which meets the requirement of clause (i) of paragraph (1)(A).

Tax treatment of payments from a section 457 plan

If a distribution or payment from an eligible deferred compensation plan described in section 457(b) is made pursuant to a qualified domestic relations order, rules similar to the rules of section 402(e)(1)(A) shall apply to such distribution or payment.

Consultation with the Secretary

In prescribing regulations under this subsection and section 401(a)(13), the Secretary of Labor shall consult with the Secretary.

Highly compensated employee

In general

The term “highly compensated employee” means any employee who—

was a 5-percent owner at any time during the year or the preceding year, or

for the preceding year—

had compensation from the employer in excess of $80,000, and

if the employer elects the application of this clause for such preceding year, was in the top-paid group of employees for such preceding year.

The Secretary shall adjust the $80,000 amount under subparagraph (B) at the same time and in the same manner as under section 415(d), except that the base period shall be the calendar quarter ending September 30, 1996.

5-percent owner

An employee shall be treated as a 5-percent owner for any year if at any time during such year such employee was a 5-percent owner (as defined in section 416(i)(1)) of the employer.

Top-paid group

An employee is in the top-paid group of employees for any year if such employee is in the group consisting of the top 20 percent of the employees when ranked on the basis of compensation paid during such year.

Compensation

For purposes of this subsection, the term “compensation” has the meaning given such term by section 415(c)(3).

Excluded employees

For purposes of subsection (r) and for purposes of determining the number of employees in the top-paid group, the following employees shall be excluded—

employees who have not completed 6 months of service,

employees who normally work less than 17½ hours per week,

employees who normally work during not more than 6 months during any year,

employees who have not attained age 21, and

except to the extent provided in regulations, employees who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and the employer.

Except as provided by the Secretary, the employer may elect to apply subparagraph (A), (B), (C), or (D) by substituting a shorter period of service, smaller number of hours or months, or lower age for the period of service, number of hours or months, or age (as the case may be) than that specified in such subparagraph.

Former employees

A former employee shall be treated as a highly compensated employee if—

such employee was a highly compensated employee when such employee separated from service, or

such employee was a highly compensated employee at any time after attaining age 55.

Coordination with other provisions

Subsections (b), (c), (m), (n), and (o) shall be applied before the application of this subsection.

Special rule for nonresident aliens

For purposes of this subsection and subsection (r), employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)) shall not be treated as employees.

Certain employees not considered highly compensated and excluded employees under pre-ERISA rules for church plans

In the case of a church plan (as defined in subsection (e)), no employee shall be considered an officer, a person whose principal duties consist of supervising the work of other employees, or a highly compensated employee for any year unless such employee is a highly compensated employee under paragraph (1) for such year.

Special rules for separate line of business

In general

For purposes of sections 129(d)(8) and 410(b), an employer shall be treated as operating separate lines of business during any year if the employer for bona fide business reasons operates separate lines of business.

Line of business must have 50 employees, etc.

A line of business shall not be treated as separate under paragraph (1) unless—

such line of business has at least 50 employees who are not excluded under subsection (q)(5),

the employer notifies the Secretary that such line of business is being treated as separate for purposes of paragraph (1), and

such line of business meets guidelines prescribed by the Secretary or the employer receives a determination from the Secretary that such line of business may be treated as separate for purposes of paragraph (1).

Safe harbor rule

In general

The requirements of subparagraph (C) of paragraph (2) shall not apply to any line of business if the highly compensated employee percentage with respect to such line of business is—

not less than one-half, and

not more than twice,

the percentage which highly compensated employees are of all employees of the employer. An employer shall be treated as meeting the requirements of clause (i) if at least 10 percent of all highly compensated employees of the employer perform services solely for such line of business.

Determination may be based on preceding year

The requirements of subparagraph (A) shall be treated as met with respect to any line of business if such requirements were met with respect to such line of business for the preceding year and if—

no more than a de minimis number of employees were shifted to or from the line of business after the close of the preceding year, or

the employees shifted to or from the line of business after the close of the preceding year contained a substantially proportional number of highly compensated employees.

Highly compensated employee percentage defined

For purposes of this subsection, the term “highly compensated employee percentage” means the percentage which highly compensated employees performing services for the line of business are of all employees performing services for the line of business.

Allocation of benefits to line of business

For purposes of this subsection, benefits which are attributable to services provided to a line of business shall be treated as provided by such line of business.

Headquarters personnel, etc.

The Secretary shall prescribe rules providing for—

the allocation of headquarters personnel among the lines of business of the employer, and

the treatment of other employees providing services for more than 1 line of business of the employer or not in lines of business meeting the requirements of paragraph (2).

Separate operating units

For purposes of this subsection, the term “separate line of business” includes an operating unit in a separate geographic area separately operated for a bona fide business reason.

Affiliated service groups

This subsection shall not apply in the case of any affiliated service group (within the meaning of section 414(m)).

Compensation

For purposes of any applicable provision—

In general

Except as provided in this subsection, the term “compensation” has the meaning given such term by section 415(c)(3).

Employer may elect not to treat certain deferrals as compensation

An employer may elect not to include as compensation any amount which is contributed by the employer pursuant to a salary reduction agreement and which is not includible in the gross income of an employee under section 125, 132(f)(4), 402(e)(3), 402(h), or 403(b).

Alternative determination of compensation

The Secretary shall by regulation provide for alternative methods of determining compensation which may be used by an employer, except that such regulations shall provide that an employer may not use an alternative method if the use of such method discriminates in favor of highly compensated employees (within the meaning of subsection (q)).

Applicable provision

For purposes of this subsection, the term “applicable provision” means any provision which specifically refers to this subsection.

Application of controlled group rules to certain employee benefits

In general

All employees who are treated as employed by a single employer under subsection (b), (c), or (m) shall be treated as employed by a single employer for purposes of an applicable section. The provisions of subsection (o) shall apply with respect to the requirements of an applicable section.

Applicable section

For purposes of this subsection, the term “applicable section” means section 79, 106, 117(d), 125, 127, 129, 132, 137, 274(j), 505, or 4980B.

Special rules relating to veterans’ reemployment rights under USERRA and to differential wage payments to members on active duty

Treatment of certain contributions made pursuant to veterans’ reemployment rights

If any contribution is made by an employer or an employee under an individual account plan with respect to an employee, or by an employee to a defined benefit plan that provides for employee contributions, and such contribution is required by reason of such employee’s rights under chapter 43 of title 38, United States Code, resulting from qualified military service, then—

such contribution shall not be subject to any otherwise applicable limitation contained in section 402(g), 402(h), 403(b), 404(a), 404(h), 408, 415, or 457, and shall not be taken into account in applying such limitations to other contributions or benefits under such plan or any other plan, with respect to the year in which the contribution is made,

such contribution shall be subject to the limitations referred to in subparagraph (A) with respect to the year to which the contribution relates (in accordance with rules prescribed by the Secretary), and

such plan shall not be treated as failing to meet the requirements of section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 401(m), 403(b)(12), 408(k)(3), 408(k)(6), 408(p), 410(b), or 416 by reason of the making of (or the right to make) such contribution.

For purposes of the preceding sentence, any elective deferral or employee contribution made under paragraph (2) shall be treated as required by reason of the employee’s rights under such chapter 43.

Reemployment rights under USERRA with respect to elective deferrals

In general

For purposes of this subchapter and section 457, if an employee is entitled to the benefits of chapter 43 of title 38, United States Code, with respect to any plan which provides for elective deferrals, the employer sponsoring the plan shall be treated as meeting the requirements of such chapter 43 with respect to such elective deferrals only if such employer—

permits such employee to make additional elective deferrals under such plan (in the amount determined under subparagraph (B) or such lesser amount as is elected by the employee) during the period which begins on the date of the reemployment of such employee with such employer and has the same length as the lesser of—

the product of 3 and the period of qualified military service which resulted in such rights, and

5 years, and

makes a matching contribution with respect to any additional elective deferral made pursuant to clause (i) which would have been required had such deferral actually been made during the period of such qualified military service.

Amount of makeup required

The amount determined under this subparagraph with respect to any plan is the maximum amount of the elective deferrals that the individual would have been permitted to make under the plan in accordance with the limitations referred to in paragraph (1)(A) during the period of qualified military service if the individual had continued to be employed by the employer during such period and received compensation as determined under paragraph (7). Proper adjustment shall be made to the amount determined under the preceding sentence for any elective deferrals actually made during the period of such qualified military service.

Elective deferral

For purposes of this paragraph, the term “elective deferral” has the meaning given such term by section 402(g)(3); except that such term shall include any deferral of compensation under an eligible deferred compensation plan (as defined in section 457(b)).

After-tax employee contributions

References in subparagraphs (A) and (B) to elective deferrals shall be treated as including references to employee contributions.

Certain retroactive adjustments not required

For purposes of this subchapter and subchapter E, no provision of chapter 43 of title 38, United States Code, shall be construed as requiring—

any crediting of earnings to an employee with respect to any contribution before such contribution is actually made, or

any allocation of any forfeiture with respect to the period of qualified military service.

Loan repayment suspensions permitted

If any plan suspends the obligation to repay any loan made to an employee from such plan for any part of any period during which such employee is performing service in the uniformed services (as defined in chapter 43 of title 38, United States Code), whether or not qualified military service, such suspension shall not be taken into account for purposes of section 72(p), 401(a), or 4975(d)(1).

Qualified military service

For purposes of this subsection, the term “qualified military service” means any service in the uniformed services (as defined in chapter 43 of title 38, United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service.

Individual account plan

For purposes of this subsection, the term “individual account plan” means any defined contribution plan (including any tax-sheltered annuity plan under section 403(b), any simplified employee pension under section 408(k), any qualified salary reduction arrangement under section 408(p), and any eligible deferred compensation plan (as defined in section 457(b))).

Compensation

For purposes of sections 403(b)(3), 415(c)(3), and 457(e)(5), an employee who is in qualified military service shall be treated as receiving compensation from the employer during such period of qualified military service equal to—

the compensation the employee would have received during such period if the employee were not in qualified military service, determined based on the rate of pay the employee would have received from the employer but for absence during the period of qualified military service, or

if the compensation the employee would have received during such period was not reasonably certain, the employee’s average compensation from the employer during the 12-month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service).

USERRA requirements for qualified retirement plans

For purposes of this subchapter and section 457, an employer sponsoring a retirement plan shall be treated as meeting the requirements of chapter 43 of title 38, United States Code, only if each of the following requirements is met:

An individual reemployed under such chapter is treated with respect to such plan as not having incurred a break in service with the employer maintaining the plan by reason of such individual’s period of qualified military service.

Each period of qualified military service served by an individual is, upon reemployment under such chapter, deemed with respect to such plan to constitute service with the employer maintaining the plan for the purpose of determining the nonforfeitability of the individual’s accrued benefits under such plan and for the purpose of determining the accrual of benefits under such plan.

An individual reemployed under such chapter is entitled to accrued benefits that are contingent on the making of, or derived from, employee contributions or elective deferrals only to the extent the individual makes payment to the plan with respect to such contributions or deferrals. No such payment may exceed the amount the individual would have been permitted or required to contribute had the individual remained continuously employed by the employer throughout the period of qualified military service. Any payment to such plan shall be made during the period beginning with the date of reemployment and whose duration is 3 times the period of the qualified military service (but not greater than 5 years).

Treatment in the case of death or disability resulting from active military service

In general

For benefit accrual purposes, an employer sponsoring a retirement plan may treat an individual who dies or becomes disabled (as defined under the terms of the plan) while performing qualified military service with respect to the employer maintaining the plan as if the individual has resumed employment in accordance with the individual’s reemployment rights under chapter 43 of title 38, United States Code, on the day preceding death or disability (as the case may be) and terminated employment on the actual date of death or disability. In the case of any such treatment, and subject to subparagraphs (B) and (C), any full or partial compliance by such plan with respect to the benefit accrual requirements of paragraph (8) with respect to such individual shall be treated for purposes of paragraph (1) as if such compliance were required under such chapter 43.

Nondiscrimination requirement

Subparagraph (A) shall apply only if all individuals performing qualified military service with respect to the employer maintaining the plan (as determined under subsections (b), (c), (m), and (o)) who die or became disabled as a result of performing qualified military service prior to reemployment by the employer are credited with service and benefits on reasonably equivalent terms.

Determination of benefits

The amount of employee contributions and the amount of elective deferrals of an individual treated as reemployed under subparagraph (A) for purposes of applying paragraph (8)(C) shall be determined on the basis of the individual’s average actual employee contributions or elective deferrals for the lesser of—

the 12-month period of service with the employer immediately prior to qualified military service, or

if service with the employer is less than such 12-month period, the actual length of continuous service with the employer.

Plans not subject to title 38

This subsection shall not apply to any retirement plan to which chapter 43 of title 38, United States Code, does not apply.

References

For purposes of this section, any reference to chapter 43 of title 38, United States Code, shall be treated as a reference to such chapter as in effect on December 12, 1994 (without regard to any subsequent amendment).

Treatment of differential wage payments

In general

Except as provided in this paragraph, for purposes of applying this title to a retirement plan to which this subsection applies—

an individual receiving a differential wage payment shall be treated as an employee of the employer making the payment,

the differential wage payment shall be treated as compensation, and

the plan shall not be treated as failing to meet the requirements of any provision described in paragraph (1)(C) by reason of any contribution or benefit which is based on the differential wage payment.

Special rule for distributions

In general

Notwithstanding subparagraph (A)(i), for purposes of section 401(k)(2)(B)(i)(I), 403(b)(7)(A)(ii), 403(b)(11)(A), or 457(d)(1)(A)(ii),2 an individual shall be treated as having been severed from employment during any period the individual is performing service in the uniformed services described in section 3401(h)(2)(A).

Limitation

If an individual elects to receive a distribution by reason of clause (i), the plan shall provide that the individual may not make an elective deferral or employee contribution during the 6-month period beginning on the date of the distribution.

Nondiscrimination requirement

Subparagraph (A)(iii) shall apply only if all employees of an employer (as determined under subsections (b), (c), (m), and (o)) performing service in the uniformed services described in section 3401(h)(2)(A) are entitled to receive differential wage payments on reasonably equivalent terms and, if eligible to participate in a retirement plan maintained by the employer, to make contributions based on the payments on reasonably equivalent terms. For purposes of applying this subparagraph, the provisions of paragraphs (3), (4), and (5) of section 410(b) shall apply.

Differential wage payment

For purposes of this paragraph, the term “differential wage payment” has the meaning given such term by section 3401(h)(2).

Catch-up contributions for individuals age 50 or over

In general

An applicable employer plan shall not be treated as failing to meet any requirement of this title solely because the plan permits an eligible participant to make additional elective deferrals in any plan year.

Limitation on amount of additional deferrals

In general

A plan shall not permit additional elective deferrals under paragraph (1) for any year in an amount greater than the lesser of—

the applicable dollar amount, or

the excess (if any) of—

the participant’s compensation (as defined in section 415(c)(3)) for the year, over

any other elective deferrals of the participant for such year which are made without regard to this subsection.

Applicable dollar amount

For purposes of this paragraph—

In the case of an applicable employer plan other than a plan described in section 401(k)(11) or 408(p), the applicable dollar amount is $5,000 (the adjusted dollar amount, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year).

In the case of an applicable employer plan described in section 401(k)(11) or 408(p), except as provided in clause (iii), the applicable dollar amount is $2,500 (the adjusted dollar amount, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year).

In the case of an applicable employer plan—

which is maintained by an eligible employer described in section 408(p)(2)(E)(i)(I), or

to which an election under section 408(p)(2)(E)(i)(II) applies for the year (including a plan described in section 401(k)(11) which is maintained by an eligible employer described in section 408(p)(2)(E)(i)(II) and to which such election applies by reason of subparagraphs (B)(i)(I) and (E) of section 401(k)(11)),

the applicable dollar amount is an amount equal to 110 percent of the dollar amount in effect under clause (ii) for calendar year 2024.

Cost-of-living adjustment

Certain large employers

In the case of a year beginning after December 31, 2006, the Secretary shall adjust annually the $5,000 amount in subparagraph (B)(i) and the $2,500 amount in subparagraph (B)(ii) for increases in the cost-of-living at the same time and in the same manner as adjustments under section 415(d); except that the base period taken into account shall be the calendar quarter beginning July 1, 2005, and any increase under this subparagraph which is not a multiple of $500 shall be rounded to the next lower multiple of $500. In the case of a year beginning after December 31, 2025, the Secretary shall adjust annually the adjusted dollar amounts applicable under clauses (i) and (ii) of subparagraph (E) for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence; except that the base period taken into account shall be the calendar quarter beginning July 1, 2024.

Other employers

In the case of a year beginning after December 31, 2024, the Secretary shall adjust annually the dollar amount described in subparagraph (B)(iii) in the manner provided under clause (i) of this subparagraph, except that the base period taken into account shall be the calendar quarter beginning July 1, 2023.

Aggregation of plans

For purposes of this paragraph, plans described in clauses (i), (ii), and (iv) of paragraph (6)(A) that are maintained by the same employer (as determined under subsection (b), (c), (m) or (o)) shall be treated as a single plan, and plans described in clause (iii) of paragraph (6)(A) that are maintained by the same employer shall be treated as a single plan.

Adjusted dollar amount

For purposes of subparagraph (B), the adjusted dollar amount is—

in the case of clause (i) of subparagraph (B), the greater of—

$10,000, or

an amount equal to 150 percent of the dollar amount which would be in effect under such clause for 2024 for eligible participants not described in the parenthetical in such clause, or

in the case of clause (ii) of subparagraph (B), the greater of—

$5,000, or

an amount equal to equal to 3 150 percent of the dollar amount which would be in effect under such clause for 2025 for eligible participants not described in the parenthetical in such clause.

Treatment of contributions

In the case of any contribution to a plan under paragraph (1)—

such contribution shall not, with respect to the year in which the contribution is made—

be subject to any otherwise applicable limitation contained in sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3)), or

be taken into account in applying such limitations to other contributions or benefits under such plan or any other such plan, and

except as provided in paragraph (4), such plan shall not be treated as failing to meet the requirements of section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416 by reason of the making of (or the right to make) such contribution.

Application of nondiscrimination rules

In general

An applicable employer plan shall be treated as failing to meet the nondiscrimination requirements under section 401(a)(4) with respect to benefits, rights, and features unless the plan allows all eligible participants to make the same election with respect to the additional elective deferrals under this subsection.

Aggregation

For purposes of subparagraph (A), all plans maintained by employers who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 plan, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section).

Eligible participant

For purposes of this subsection, the term “eligible participant” means a participant in a plan—

who would attain age 50 by the end of the taxable year,

with respect to whom no other elective deferrals may (without regard to this subsection) be made to the plan for the plan (or other applicable) year by reason of the application of any limitation or other restriction described in paragraph (3) or comparable limitation or restriction contained in the terms of the plan.

Other definitions and rules

For purposes of this subsection—

Applicable employer plan

The term “applicable employer plan” means—

an employees’ trust described in section 401(a) which is exempt from tax under section 501(a),

a plan under which amounts are contributed by an individual’s employer for an annuity contract described in section 403(b),

an eligible deferred compensation plan under section 457 of an eligible employer described in section 457(e)(1)(A), and

an arrangement meeting the requirements of section 408(k) or (p).

Elective deferral

The term “elective deferral” has the meaning given such term by subsection (u)(2)(C).

Exception for section 457 plans

This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).

Certain deferrals must be Roth contributions

In general

Except as provided in subparagraph (C), in the case of an eligible participant whose wages (as defined in section 3121(a)) for the preceding calendar year from the employer sponsoring the plan exceed $145,000, paragraph (1) shall apply only if any additional elective deferrals are designated Roth contributions (as defined in section 402A(c)(1)) made pursuant to an employee election.

Roth option

In the case of an applicable employer plan with respect to which subparagraph (A) applies to any participant for a plan year, paragraph (1) shall not apply to the plan unless the plan provides that any eligible participant may make the participant’s additional elective deferrals as designated Roth contributions.

Exception

Subparagraph (A) shall not apply in the case of an applicable employer plan described in paragraph (6)(A)(iv).

Election to change deferrals

The Secretary may provide by regulations that an eligible participant may elect to change the participant’s election to make additional elective deferrals if the participant’s compensation is determined to exceed the limitation under subparagraph (A) after the election is made.

Cost of living adjustment

In the case of a year beginning after December 31, 2024, the Secretary shall adjust annually the $145,000 amount in subparagraph (A) for increases in the cost-of-living at the same time and in the same manner as adjustments under 415(d); except that the base period taken into account shall be the calendar quarter beginning July 1, 2023, and any increase under this subparagraph which is not a multiple of $5,000 shall be rounded to the next lower multiple of $5,000.

Special rules for certain withdrawals from eligible automatic contribution arrangements

In general

If an eligible automatic contribution arrangement allows an employee to elect to make permissible withdrawals—

the amount of any such withdrawal shall be includible in the gross income of the employee for the taxable year of the employee in which the distribution is made,

no tax shall be imposed under section 72(t) with respect to the distribution, and

the arrangement shall not be treated as violating any restriction on distributions under this title solely by reason of allowing the withdrawal.

In the case of any distribution to an employee by reason of an election under this paragraph, employer matching contributions shall be forfeited or subject to such other treatment as the Secretary may prescribe.

Permissible withdrawal

For purposes of this subsection—

In general

The term “permissible withdrawal” means any withdrawal from an eligible automatic contribution arrangement meeting the requirements of this paragraph which—

is made pursuant to an election by an employee, and

consists of elective contributions described in paragraph (3)(B) (and earnings attributable thereto).

Time for making election

Subparagraph (A) shall not apply to an election by an employee unless the election is made no later than the date which is 90 days after the date of the first elective contribution with respect to the employee under the arrangement.

Amount of distribution

Subparagraph (A) shall not apply to any election by an employee unless the amount of any distribution by reason of the election is equal to the amount of elective contributions made with respect to the first payroll period to which the eligible automatic contribution arrangement applies to the employee and any succeeding payroll period beginning before the effective date of the election (and earnings attributable thereto).

Eligible automatic contribution arrangement

For purposes of this subsection, the term “eligible automatic contribution arrangement” means an arrangement under an applicable employer plan—

under which a participant may elect to have the employer make payments as contributions under the plan on behalf of the participant, or to the participant directly in cash,

under which the participant is treated as having elected to have the employer make such contributions in an amount equal to a uniform percentage of compensation provided under the plan until the participant specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage), and

which meets the requirements of paragraph (4).

Notice requirements

In general

The administrator of a plan containing an arrangement described in paragraph (3) shall, within a reasonable period before each plan year, give to each employee to whom an arrangement described in paragraph (3) applies for such plan year notice of the employee’s rights and obligations under the arrangement which—

is sufficiently accurate and comprehensive to apprise the employee of such rights and obligations, and

is written in a manner calculated to be understood by the average employee to whom the arrangement applies.

Time and form of notice

A notice shall not be treated as meeting the requirements of subparagraph (A) with respect to an employee unless—

the notice includes an explanation of the employee’s right under the arrangement to elect not to have elective contributions made on the employee’s behalf (or to elect to have such contributions made at a different percentage),

the employee has a reasonable period of time after receipt of the notice described in clause (i) and before the first elective contribution is made to make such election, and

the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the employee.

Applicable employer plan

For purposes of this subsection, the term “applicable employer plan” means—

an employees’ trust described in section 401(a) which is exempt from tax under section 501(a),

a plan under which amounts are contributed by an individual’s employer for an annuity contract described in section 403(b),

an eligible deferred compensation plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A),

a simplified employee pension the terms of which provide for a salary reduction arrangement described in section 408(k)(6), and

a simple retirement account (as defined in section 408(p)).

Special rule

A withdrawal described in paragraph (1) (subject to the limitation of paragraph (2)(C)) shall not be taken into account for purposes of section 401(k)(3) or for purposes of applying the limitation under section 402(g)(1).

Special rules for eligible combined defined benefit plans and qualified cash or deferred arrangements

General rule

Except as provided in this subsection, the requirements of this title shall be applied to any defined benefit plan or applicable defined contribution plan which is part of an eligible combined plan in the same manner as if each such plan were not a part of the eligible combined plan. In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately.

Eligible combined plan

For purposes of this subsection—

In general

The term “eligible combined plan” means a plan—

which is maintained by an employer which, at the time the plan is established, is a small employer,

which consists of a defined benefit plan and an applicable defined contribution plan,

the assets of which are held in a single trust forming part of the plan and are clearly identified and allocated to the defined benefit plan and the applicable defined contribution plan to the extent necessary for the separate application of this title under paragraph (1), and

with respect to which the benefit, contribution, vesting, and nondiscrimination requirements of subparagraphs (B), (C), (D), (E), and (F) are met.

For purposes of this subparagraph, the term “small employer” has the meaning given such term by section 4980D(d)(2), except that such section shall be applied by substituting “500” for “50” each place it appears.

Benefit requirements

In general

The benefit requirements of this subparagraph are met with respect to the defined benefit plan forming part of the eligible combined plan if the accrued benefit of each participant derived from employer contributions, when expressed as an annual retirement benefit, is not less than the applicable percentage of the participant’s final average pay. For purposes of this clause, final average pay shall be determined using the period of consecutive years (not exceeding 5) during which the participant had the greatest aggregate compensation from the employer.

Applicable percentage

For purposes of clause (i), the applicable percentage is the lesser of—

1 percent multiplied by the number of years of service with the employer, or

20 percent.

Special rule for applicable defined benefit plans

If the defined benefit plan under clause (i) is an applicable defined benefit plan as defined in section 411(a)(13)(B) which meets the interest credit requirements of section 411(b)(5)(B)(i), the plan shall be treated as meeting the requirements of clause (i) with respect to any plan year if each participant receives a pay credit for the year which is not less than the percentage of compensation determined in accordance with the following table:

If the participant’s age as of the beginning of the year is—	The percentage is—
30 or less	2
Over 30 but less than 40	4
40 or over but less than 50	6
50 or over	8.

Years of service

For purposes of this subparagraph, years of service shall be determined under the rules of paragraphs (4), (5), and (6) of section 411(a), except that the plan may not disregard any year of service because of a participant making, or failing to make, any elective deferral with respect to the qualified cash or deferred arrangement to which subparagraph (C) applies.

Contribution requirements

In general

The contribution requirements of this subparagraph with respect to any applicable defined contribution plan forming part of an eligible combined plan are met if—

the qualified cash or deferred arrangement included in such plan constitutes an automatic contribution arrangement, and

the employer is required to make matching contributions on behalf of each employee eligible to participate in the arrangement in an amount equal to 50 percent of the elective contributions of the employee to the extent such elective contributions do not exceed 4 percent of compensation.

Rules similar to the rules of clauses (ii) and (iii) of section 401(k)(12)(B) shall apply for purposes of this clause.

Nonelective contributions

An applicable defined contribution plan shall not be treated as failing to meet the requirements of clause (i) because the employer makes nonelective contributions under the plan but such contributions shall not be taken into account in determining whether the requirements of clause (i)(II) are met.

Vesting requirements

The vesting requirements of this subparagraph are met if—

in the case of a defined benefit plan forming part of an eligible combined plan an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit under the plan derived from employer contributions, and

in the case of an applicable defined contribution plan forming part of eligible combined plan—

an employee has a nonforfeitable right to any matching contribution made under the qualified cash or deferred arrangement included in such plan by an employer with respect to any elective contribution, including matching contributions in excess of the contributions required under subparagraph (C)(i)(II), and

an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit derived under the arrangement from nonelective contributions of the employer.

For purposes of this subparagraph, the rules of section 411 shall apply to the extent not inconsistent with this subparagraph.

Uniform provision of contributions and benefits

In the case of a defined benefit plan or applicable defined contribution plan forming part of an eligible combined plan, the requirements of this subparagraph are met if all contributions and benefits under each such plan, and all rights and features under each such plan, must be provided uniformly to all participants.

Requirements must be met without taking into account social security and similar contributions and benefits or other plans

In general

The requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met.

Social security and similar contributions

The requirements of this clause are met if—

the requirements of subparagraphs (B) and (C) are met without regard to section 401(l), and

the requirements of sections 401(a)(4) and 410(b) are met with respect to both the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan without regard to section 401(l).

Other plans and arrangements

The requirements of this clause are met if the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan meet the requirements of sections 401(a)(4) and 410(b) without being combined with any other plan.

Nondiscrimination requirements for qualified cash or deferred arrangement

In general

A qualified cash or deferred arrangement which is included in an applicable defined contribution plan forming part of an eligible combined plan shall be treated as meeting the requirements of section 401(k)(3)(A)(ii) if the requirements of paragraph (2)(C) are met with respect to such arrangement.

Matching contributions

In applying section 401(m)(11) to any matching contribution with respect to a contribution to which paragraph (2)(C) applies, the contribution requirement of paragraph (2)(C) and the notice requirements of paragraph (5)(B) shall be substituted for the requirements otherwise applicable under clauses (i) and (ii) of section 401(m)(11)(A).

Satisfaction of top-heavy rules

A defined benefit plan and applicable defined contribution plan forming part of an eligible combined plan for any plan year shall be treated as meeting the requirements of section 416 for the plan year.

Automatic contribution arrangement

For purposes of this subsection—

In general

A qualified cash or deferred arrangement shall be treated as an automatic contribution arrangement if the arrangement—

provides that each employee eligible to participate in the arrangement is treated as having elected to have the employer make elective contributions in an amount equal to 4 percent of the employee’s compensation unless the employee specifically elects not to have such contributions made or to have such contributions made at a different rate, and

meets the notice requirements under subparagraph (B).

Notice requirements

In general

The requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met.

Reasonable period to make election

The requirements of this clause are met if each employee to whom subparagraph (A)(i) applies—

receives a notice explaining the employee’s right under the arrangement to elect not to have elective contributions made on the employee’s behalf or to have the contributions made at a different rate, and

has a reasonable period of time after receipt of such notice and before the first elective contribution is made to make such election.

Annual notice of rights and obligations

The requirements of this clause are met if each employee eligible to participate in the arrangement is, within a reasonable period before any year, given notice of the employee’s rights and obligations under the arrangement.

The requirements of clauses (i) and (ii) of section 401(k)(12)(D) shall be met with respect to the notices described in clauses (ii) and (iii) of this subparagraph.

Coordination with other requirements

Treatment of separate plans

Section 414(k) shall not apply to an eligible combined plan.

Reporting

An eligible combined plan shall be treated as a single plan for purposes of sections 6058 and 6059.

Applicable defined contribution plan

For purposes of this subsection—

In general

The term “applicable defined contribution plan” means a defined contribution plan which includes a qualified cash or deferred arrangement.

Qualified cash or deferred arrangement

The term “qualified cash or deferred arrangement” has the meaning given such term by section 401(k)(2).

Cooperative and small employer charity pension plans

In general

For purposes of this title, except as provided in this subsection, a CSEC plan is a defined benefit plan (other than a multiemployer plan)—

to which section 104 of the Pension Protection Act of 2006 applies, without regard to—

section 104(a)(2) of such Act;

the amendments to such section 104 by section 202(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010; and

paragraph (3)(B);

that, as of June 25, 2010, was maintained by more than one employer and all of the employers were organizations described in section 501(c)(3);

that, as of June 25, 2010, was maintained by an employer—

described in section 501(c)(3),

chartered under part B of subtitle II of title 36, United States Code,

with employees in at least 40 States, and

whose primary exempt purpose is to provide services with respect to children; or

that, as of January 1, 2000, was maintained by an employer—

described in section 501(c)(3),

who has been in existence since at least 1938,

who conducts medical research directly or indirectly through grant making, and

whose primary exempt purpose is to provide services with respect to mothers and children.

Aggregation

All employers that are treated as a single employer under subsection (b) or (c) shall be treated as a single employer for purposes of determining if a plan was maintained by more than one employer under subparagraphs (B) and (C) of paragraph (1).

Election

In general

If a plan falls within the definition of a CSEC plan under this subsection (without regard to this paragraph), such plan shall be a CSEC plan unless the plan sponsor elects not later than the close of the first plan year of the plan beginning after December 31, 2013, not to be treated as a CSEC plan. An election under the preceding sentence shall take effect for such plan year and, once made, may be revoked only with the consent of the Secretary.

Special rule

If a plan described in subparagraph (A) is treated as a CSEC plan, section 104 of the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, shall cease to apply to such plan as of the first date as of which such plan is treated as a CSEC plan.

Certain plan transfers and mergers

In general

Under rules prescribed by the Secretary, except as provided in paragraph (2), no amount shall be includible in gross income by reason of—

a transfer of all or a portion of the accrued benefit of a participant or beneficiary, whether or not vested, from a church plan that is a plan described in section 401(a) or an annuity contract described in section 403(b) to an annuity contract described in section 403(b), if such plan and annuity contract are both maintained by the same church or convention or association of churches,

a transfer of all or a portion of the accrued benefit of a participant or beneficiary, whether or not vested, from an annuity contract described in section 403(b) to a church plan that is a plan described in section 401(a), if such plan and annuity contract are both maintained by the same church or convention or association of churches, or

a merger of a church plan that is a plan described in section 401(a), or an annuity contract described in section 403(b), with an annuity contract described in section 403(b), if such plan and annuity contract are both maintained by the same church or convention or association of churches.

Limitation

Paragraph (1) shall not apply to a transfer or merger unless the participant’s or beneficiary’s total accrued benefit immediately after the transfer or merger is equal to or greater than the participant’s or beneficiary’s total accrued benefit immediately before the transfer or merger, and such total accrued benefit is nonforfeitable after the transfer or merger.

Qualification

A plan or annuity contract shall not fail to be considered to be described in section 401(a) or 403(b) merely because such plan or annuity contract engages in a transfer or merger described in this subsection.

Definitions

For purposes of this subsection—

Church or convention or association of churches

The term “church or convention or association of churches” includes an organization described in subparagraph (A) or (B)(ii) of subsection (e)(3).

Annuity contract

The term “annuity contract” includes a custodial account described in section 403(b)(7) and a retirement income account described in section 403(b)(9).

Accrued benefit

The term “accrued benefit” means—

in the case of a defined benefit plan, the employee’s accrued benefit determined under the plan, and

in the case of a plan other than a defined benefit plan, the balance of the employee’s account under the plan.

Special rules applicable to benefit overpayments

In general

A plan shall not fail to be treated as described in clause (i), (ii), (iii), or (iv) of section 219(g)(5)(A) (and shall not fail to be treated as satisfying the requirements of section 401(a) or 403) merely because—

the plan fails to obtain payment from any participant, beneficiary, employer, plan sponsor, fiduciary, or other party on account of any inadvertent benefit overpayment made by the plan, or

the plan sponsor amends the plan to increase past, or decrease future, benefit payments to affected participants and beneficiaries in order to adjust for prior inadvertent benefit overpayments.

Reduction in future benefit payments and recovery from responsible party

Paragraph (1) shall not fail to apply to a plan merely because, after discovering a benefit overpayment, such plan—

reduces future benefit payments to the correct amount provided for under the terms of the plan, or

seeks recovery from the person or persons responsible for such overpayment.

Employer funding obligations

Nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to meet the minimum funding standards under sections 412 and 430 or to prevent or restore an impermissible forfeiture in accordance with section 411.

Observance of benefit limitations

Notwithstanding paragraph (1), a plan to which paragraph (1) applies shall observe any limitations imposed on it by section 401(a)(17) or 415. The plan may enforce such limitations using any method approved by the Secretary for recouping benefits previously paid or allocations previously made in excess of such limitations.

Coordination with other qualification requirements

The Secretary may issue regulations or other guidance of general applicability specifying how benefit overpayments and their recoupment or non-recoupment from a participant or beneficiary shall be taken into account for purposes of satisfying any requirement applicable to a plan to which paragraph (1) applies.

Eliminating unnecessary plan requirements related to unenrolled participants

In general

Notwithstanding any other provision of this title, with respect to any defined contribution plan, no disclosure, notice, or other plan document (other than the notices and documents described in subparagraphs (A) and (B)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant is furnished—

an annual reminder notice of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan, and

any document requested by such participant that the participant would be entitled to receive notwithstanding this subsection.

Unenrolled participant

For purposes of this subsection, the term “unenrolled participant” means an employee who—

is eligible to participate in a defined contribution plan,

has been furnished—

the summary plan description pursuant to section 104(b) of the Employee Retirement Income Security Act of 1974, and

any other notices related to eligibility under the plan and required to be furnished under this title, or the Employee Retirement Income Security Act of 1974, in connection with such participant’s initial eligibility to participate in such plan,

is not participating in such plan, and

satisfies such other criteria as the Secretary of the Treasury may determine appropriate, as prescribed in guidance issued in consultation with the Secretary of Labor.

For purposes of this subsection, any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility.

Annual reminder notice

For purposes of this subsection, the term “annual reminder notice” means the notice described in section 111(c) of the Employee Retirement Income Security Act of 1974.

Correcting automatic contribution errors

In general

Any plan or arrangement shall not fail to be treated as a plan described in sections 401(a), 403(b), 408, or 457(b), as applicable, solely by reason of a corrected error.

Corrected error defined

For purposes of this subsection, the term “corrected error” means a reasonable administrative error—

made in implementing an automatic enrollment or automatic escalation feature with respect to an eligible employee (or an affirmative election made by an eligible employee covered by such feature), or

made by failing to afford an eligible employee the opportunity to make an affirmative election because such employee was improperly excluded from the plan],³ and

that is corrected prospectively by implementing an automatic enrollment or automatic escalation feature with respect to an eligible employee (or an affirmative election made by an eligible employee) determined in accordance with the terms of an eligible automatic contribution arrangement (as defined under subsection (w)(3)), provided that—

such implementation error is corrected not later than—

the date of the first payment of compensation made by the employer to the employee on or after the last day of the 9½ month-period after the end of the plan year during which such error with respect to the employee first occurred, or

if earlier in the case of an employee who notifies the plan sponsor of such error, the date of the first payment of compensation made by the employer to the employee on or after the last day of the month following the month in which such notification was made,

in the case of an employee who would have been entitled to additional matching contributions had any missed elective deferral been made, the plan sponsor makes a corrective allocation, not later than the deadline specified by the Secretary in regulations or other guidance prescribed under paragraph (3), of matching contributions on behalf of the employee in an amount equal to the additional matching contributions to which the employee would have been so entitled (adjusted to account for earnings had the missed elective deferrals been made).

such implementation error is of a type which is so corrected for all similarly situated participants in a nondiscriminatory manner,

notice of such error is given to the employee not later than 45 days after the date on which correct deferrals begin, and

the notice under clause (iv) satisfies such regulations or other guidance as the Secretary prescribes under paragraph (4).

Such correction may occur before or after the participant has terminated employment and may occur without regard to whether the error is identified by the Secretary.

No obligation for employer to restore missed elective deferrals

If the requirements of paragraph (2)(B) are satisfied, the employer will not be required to provide eligible employees with the missed amount of elective deferrals resulting from a reasonable administrative error described in paragraph (2)(A)(i) or (ii) through a qualified nonelective contribution, or otherwise.

Regulations and guidance for favorable correction methods

The Secretary shall by regulations or other guidance of general applicability prescribe—

the deadline for making a corrective allocation of matching contributions required by paragraph (2)(B)(ii),

the content of the notice required by paragraph (2)(B)(iv),

the manner in which the amount of the corrective allocation under paragraph (2)(B)(ii) is determined,

the manner of adjustment to account for earnings on matching contributions under paragraph (2)(B)(ii), and

such other rules as are necessary to carry out the purposes of the subsection.

Footnotes

1 So in original. Probably should be “title”.
2 See References in Text note below.
3 So in original.

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.

1974
Employee Retirement Income Security Act of 1974
Pub. L. 93–406 title II § 1015 · 88 Stat. 829
Enacted · 26 U.S.C. § 414
Added Pub. L. 93–406, title II, § 1015, Sept. 2, 1974, 88 Stat. 925
Source evidence
Code source credit
Added Pub. L. 93–406, title II, § 1015, Sept. 2, 1974, 88 Stat. 925
Enacted provision · exact public law section
SEC. 1015. DEFINITIONS AND SPECIAL RULES. Subpart B of part I of subchapter D of chapter 1 is amended by inserting after section 413 the following new section: “SEC. 414. DEFINITIONS AND SPECIAL RULES. “(a) Service for Predecessor Employer.— For purposes of this part— “(1) in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and “(2) in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary or his delegate, be treated as service for the employer. “(b) Employees of Controlled Group of Corporations.— For purposes of sections 401, 410, 411, and 415, all employees of all corporations 26 USC 401. Ante, pp. 898, 901; Post, p. 979. which are members of a controlled group of corporations (within the meaning of section 1563(a), determined without regard to section 1563(a)(4) and (e)(3)(C)) shall be treated as employed 26 USC 1563. by a single employer. With respect to a plan adopted by more than one such corporation, the minimum funding standard of section 412, the tax imposed by section 4971, and the applicable limitations provided Ante, p. 920. by section 404(a) shall be determined as if all such employers were a single employer, and allocated to each employer in accordance with regulations prescribed by the Secretary or his delegate. “(c) Employees of Partnerships, Proprietorships, Etc., Which Are Under Common Control.— For purposes of sections 401, 410, 411, and 415, under regulations prescribed by the Secretary or his delegate, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (b). “(d) Governmental Plan.— For purposes of this part, the term ‘governmental plan’ means a plan established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. The term ‘governmental plan’ also includes any plan to which the Railroad Retirement Act of 1935 or 1937 applies and which is financed by contributions required 45 USC 215–228 notes, 228a. 22 USC 288 note. under that Act and any plan of an international organization which is exempt from taxation by reason of the International Organizations Immunities Act (59 Stat. 669). “(e) Church Plan.— “(1) In general.— For purposes of this part the term ‘church plan’ means— “(A) a plan established and maintained for its employees by a church or by a convention or association of churches which is exempt from tax under section 501, or 26 USC 501. “(B) a plan described in paragraph (3). “(2) Certain unrelated business or multiemployer plans.— The term ‘church plan’ does not include a plan— “(A) which is established and maintained primarily for the benefit of employees (or their beneficiaries) of such church or convention or association of churches who are employed in connection with one or more unrelated trades or businesses (within the meaning of section 513), or “(B) which is a plan maintained by more than one employer, if one or more of the employers in the plan is not a church (or a convention or association of churches) which is exempt from tax under section 501. “(3) Special temporary rule for certain church agencies under church plan.— “(A) Notwithstanding the provisions of paragraph (2)(B), a plan in existence on January 1, 1974, shall be treated as a church plan if it is established and maintained by a church or convention or association of churches and one or more agencies of such church (or convention or association) for the employees of such church (or convention or association) and the employees of one or more agencies of such church (or convention or association), and if such church (or convention or association) and each such agency is exempt from tax under section 501. 26 USC 501. “(B) Subparagraph (A) shall not apply to any plan maintained for employees of an agency with respect to which the plan was not maintained on January 1, 1974. “(C) Subparagraph (A) shall not apply with respect to any plan for any plan year beginning after December 31, 1982. “(f) Multiemployer Plan.— “(1) In general.— For purposes of this part, the term ‘multiemployer plan’ means a plan— “(A) to which more than one employer is required to contribute, “(B) which is maintained pursuant to a collective-bargaining agreement between employee representatives and more than one employer, “(C) under which the amount of contributions made under the plan for a plan year by each employer making such contributions is less than 50 percent of the aggregate amount of contributions made under the plan for that plan year by all employers making such contributions, “(D) under which benefits are payable with respect to each participant without regard to the cessation of contributions by the employer who employed that participant except to the extent that such benefits accrued as a result of service with the employer before such employer was required to contribute to such plan, and “(E) which satisfies such other requirements as the Secretary of Labor may by regulations prescribe. “(2) Special rules.— For purposes of this subsection— “(A) If a plan is a multiemployer plan within the meaning of paragraph (1) for any plan year, subparagraph (C) of paragraph (1) shall be applied by substituting ‘75 percent’ for ‘50 percent’ for each subsequent plan year until the first plan year following a plan year in which the plan had one employer who made contributions of 75 percent or more of the aggregate amount of contributions made under the plan for that plan year by all employers making such contributions. “(B) All corporations which are members of a controlled group of corporations (within the meaning of section 1563 26 USC 1563. (a), determined without regard to section 1563(e)(3)(C)) shall be deemed to be one employer. “(g) Plan Administrator.— For purposes of this part, the term ‘plan administrator’ means— “(1) the person specifically so designated by the terms of the instrument under which the plan is operated; “(2) in the absence of a designation referred to in paragraph (1)— “(A) in the case of a plan maintained by a single employer, such employer, “(B) in the case of a plan maintained by two or more employers or jointly by one or more employers and one or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who maintained the plan, or “(C) in any case to which subparagraph (A) or (B) does not apply, such other person as the Secretary or his delegate may by regulation, prescribe. “(h) Tax Treatment of Certain Contributions.— “(1) In general.— Effective with respect to taxable years beginning after December 31, 1973, for purposes of this title, any amount contributed— “(A) to an employees’ trust described in section 401(a), or 26 USC 401. “(B) under a plan described in section 403(a) or 405(a), 26 USC 403, 405. shall not be treated as having been made by the employer if it is designated as an employee contribution. “(2) Designation by units of government.— For purposes of paragraph (1), in the case of any plan established by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing, where the contributions of employing units are designated as employee contributions but where any employing unit picks up the contributions, the contributions so picked up shall be treated as employer contributions. “(i) Defined Contribution Plan.— For purposes of this part, the term ‘defined contribution plan’ means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant’s account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant’s account. “(j) Defined Benefit Plan.— For purposes of this part, the term ‘defined benefit plan’ means any plan which is not a defined contribution plan. “(k) Certain Plans.— A defined benefit plan which provides a benefit derived from employer contributions which is based partly on the balance of the separate account of a participant shall— “(1) for purposes of section 410 (relating to minimum participation Ante, p. 898. standards), be treated as a defined contribution plan, “(2) for purposes of sections 411(a)(7)(A) (relating to minimum Ante, p. 901. Post, p. 979. vesting standards) and 415 (relating to limitations on benefits and contributions under qualified plans), be treated as consisting of a defined contribution plan to the extent benefits are based on the separate account of a participant and as a defined benefit plan with respect to the remaining portion of benefits under the plan, and “(3) for purposes of section 4975 (relating to tax on prohibited Post, p. 971. transactions), be treated as a defined benefit plan. “(l) Mergers and Consolidations of Plans or Transfers of Plan Assets.— A trust which forms a part of a plan shall not constitute a qualified trust under section 401 and a plan shall be treated as not described in section 403(a) or 405 unless in the case of any merger or consolidation of the plan with, or in the case of any transfer of assets or liabilities of such plan to, any other trust plan after the date of the enactment of the Employee Retirement Income Security Act of 1974, each participant in the plan would (if the plan then terminated) Ante, p. 829. receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated). This paragraph shall apply in the case of a multiemployer plan only to the extent determined by the Pension Benefit Guaranty Corporation.”
1976
Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 414(a)(c)
Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Subsecs. (a) to (c). 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 § 1901(a)(64)(A) · 90 Stat. 1520
Substituted · 26 U.S.C. § 414(f)
Pub. L. 94–455, § 1901(a)(64)(A), substituted “Plan” for “plan” in heading
Source evidence
Code amendment note
Subsec. (f). Pub. L. 94–455, § 1901(a)(64)(A), substituted “Plan” for “plan” in heading.
Enacted provision · exact public law section
(A) The heading for section 414(f) (relating to multi-employer 26 USC 414. plans) is amended to read as follows: ‘(f) Multiemployer Plan.—”
1976
Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 414(g)(2)(C)
Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Subsec. (g)(2)(C). 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 § 1901(a)(64)(B) · 90 Stat. 1520
Substituted · 26 U.S.C. § 414(l)
Pub. L. 94–455, § 1901(a)(64)(B), substituted reference to Sept. 2, 1974, for reference to the date of enactment of the Employee Retirement Income Security Act of 1974
Source evidence
Code amendment note
Subsec. (l). Pub. L. 94–455, § 1901(a)(64)(B), substituted reference to Sept. 2, 1974, for reference to the date of enactment of the Employee Retirement Income Security Act of 1974.
Enacted provision · exact public law section
(B) Section 414(1) (relating to mergers and consolidations of plans or transfers of plan assets) is amended by striking out “the date of the enactment of the Employee Retirement Income Security Act of 1974” and inserting in lieu thereof “September 2, 1974”.
1978
Pub. L. 95–600 title I § 152(d) · 92 Stat. 2763
Inserted · 26 U.S.C. § 414(b); 26 U.S.C. § 414(c)
Pub. L. 95–600 inserted “408(k),” after “sections 401,” wherever appearing
Source evidence
Code amendment note
Subsecs. (b), (c). Pub. L. 95–600 inserted “408(k),” after “sections 401,” wherever appearing.
Enacted provision · exact public law section
(d) Employees of Enterprises Under Common Control.— Subsections (b) and (c) of section 414 are each amended by inserting “408(k),” 26 USC 414. after “401,”.
1980
Multiemployer Pension Plan Amendments Act of 1980
Pub. L. 96–364 § 407(b) · 94 Stat. 1208
Substituted · 26 U.S.C. § 414(e)
Pub. L. 96–364, § 407(b), substituted provisions defining “church plan” with respect to general requirements, exclusion of certain plans, definitions and other provisions, and correction of failures to meet church plan requirements, for provisions defining “church plan” with respect to general requirements, certain unrelated business or multiemployer plans, and special temporary rules for certain church agencies under church plan
Source evidence
Code amendment note
Subsec. (e). Pub. L. 96–364, § 407(b), substituted provisions defining “church plan” with respect to general requirements, exclusion of certain plans, definitions and other provisions, and correction of failures to meet church plan requirements, for provisions defining “church plan” with respect to general requirements, certain unrelated business or multiemployer plans, and special temporary rules for certain church agencies under church plan.
Enacted provision · exact public law section
(b) Section 414(e) of the Internal Revenue Code of 1954 (defining 26 USC 414. church plan) is amended to read as follows: “(e) Church Plan.— “(1) In general.— For purposes of this part, the term ‘church plan’ means a plan established and maintained (to the extent required in paragraph (2)(B)) for its employees (or their beneficiaries) by a church or by a convention or association of churches which is exempt from tax under section 501. “(2) Certain plans excluded.— The term ‘church plan’ does not include a plan— “(A) which is established and maintained primarily for the benefit of employees (or their beneficiaries) of such church or convention or association of churches who are employed in connection with one or more unrelated trades or businesses (within the meaning of section 513); or 26 USC 513. “(B) if less than substantially all of the individuals included in the plan are individuals described in paragraph (1) or (3)(B) (or their beneficiaries). “(3) Definitions and other provisions.— For purposes of this subsection— “(A) Treatment as church plan.— A plan established and maintained for its employees (or their beneficiaries) by a church or by a convention or association of churches includes a plan maintained by an organization, whether a civil law corporation or otherwise, the principal purpose or function of which is the administration or funding of a plan or program for the provision of retirement benefits or welfare benefits, or both, for the employees of a church or a convention or association of churches, if such organization is controlled by or associated with a church or a convention or association of churches. “(B) Employee defined.— The term employee of a church or a convention or association of churches shall include— “(i) a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry, regardless of the source of his compensation; “(ii) an employee of an organization, whether a civil law corporation or otherwise, which is exempt from tax 26 USC 501. under section 501 and which is controlled by or associated with a church or a convention or association of churches; and “(iii) an individual described in subparagraph (E). “(C) Church treated as employer.— A church or a convention or association of churches which is exempt from tax under section 501 shall be deemed the employer of any individual included as an employee under subparagraph (B). “(D) Association with church.— An organization, whether a civil law corporation or otherwise, is associated with a church or a convention or association of churches if it shares common religious bonds and convictions with that church or convention or association of churches. “(E) Special rule in case of separation from plan.— If an employee who is included in a church plan separates from the service of a church or a convention or association of churches or an organization described in clause (ii) of paragraph (3)(B), the church plan shall not fail to meet the requirements of this subsection merely because the plan— “(i) retains the employee’s accrued benefit or account for the payment of benefits to the employee or his beneficiaries pursuant to the terms of the plan; or “(ii) receives contributions on the employee’s behalf after the employee’s separation from such service, but only for a period of 5 years after such separation, unless the employee is disabled (within the meaning of the disability provisions of the church plan or, if there are no such provisions in the church plan, within the meaning 26 USC 72. of section 72(m)(7)) at the time of such separation from service. “(4) Correction of failure to meet church plan requirements.— “(A) In general.— If a plan established and maintained for its employees (or their beneficiaries) by a church or by a convention or association of churches which is exempt from tax under section 501 fails to meet one or more of the requirements of this subsection and corrects its failure to meet such requirements within the correction period, the plan shall be deemed to meet the requirements of this subsection for the year in which the correction was made and for all prior years. “(B) Failure to correct.— If a correction is not made within the correction period, the plan shall be deemed not to meet the requirements of this subsection beginning with the date on which the earliest failure to meet one or more of such requirements occurred. “(C) Correction period defined.— The term ‘correction period’ means— “(i) the period ending 270 days after the date of mailing by the Secretary of a notice of default with respect to the plan’s failure to meet one or more of the requirements of this subsection; “(ii) any period set by a court of competent jurisdiction after a final determination that the plan fails to meet such requirements, or, if the court does not specify such period, any reasonable period determined by the Secretary on the basis of all the facts and circumstances, but in any event not less than 270 days after the determination has become final; or “(iii) any additional period which the Secretary determines is reasonable or necessary for the correction of the default, whichever has the latest ending date.”.
1980
Multiemployer Pension Plan Amendments Act of 1980
Pub. L. 96–364 § 207 · 94 Stat. 1208
Substituted · 26 U.S.C. § 414(f)
Pub. L. 96–364, § 207, substituted provisions setting forth definition, cases of common control, continuation of status after termination, transitional rule, and special election with respect to a multiemployer plan, for provisions setting forth definition and special rules with respect to a multiemployer plan
Source evidence
Code amendment note
Subsec. (f). Pub. L. 96–364, § 207, substituted provisions setting forth definition, cases of common control, continuation of status after termination, transitional rule, and special election with respect to a multiemployer plan, for provisions setting forth definition and special rules with respect to a multiemployer plan.
Enacted provision · exact public law section
SEC. 207. DEFINITION OF MULTIEMPLOYER PLAN. (a) Section 414 (relating to definitions and special rules) is amended by striking out subsection (f) and inserting in lieu thereof the following: “(f) Multiemployer Plan.— “(1) Definition.— For purposes of this part, the term ‘multiemployer plan’ means a plan— “(A) to which more than one employer is required to contribute, “(B) which is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and “(C) which satisfies such other requirements as the Secretary of Labor may prescribe by regulation. “(2) Cases of common control.— For purposes of this subsection, all trades or businesses (whether or not incorporated) which are under common control within the meaning of subsection (c) are considered a single employer. “(3) Continuation of status after termination.— Notwithstanding paragraph (1), a plan is a multiemployer plan on and after its termination date under title IV of the Employee Retirement Income Security Act of 1974 if the plan was a multiemployer 29 USC 1301. plan under this subsection for the plan year preceding its termination date. “(4) Transitional rule.— For any plan year which began “Multiemployer plan.” Ante, p. 1208. before the date of the enactment of the Multiemployer Pension Plan Amendments Act of 1980, the term ‘multiemployer plan’ means a plan described in this subsection as in effect immediately before that date. “(5) Special election.— Within one year after the date of the enactment of the Multiemployer Pension Plan Amendments Act of 1980, a multiemployer plan may irrevocably elect, pursuant to procedures established by the Pension Benefit Guaranty Corporation and subject to the provisions of section 4403 (b) and (c) of the Employee Retirement Income Security Act of 1974, that the plan shall not be treated as a multiemployer plan for any purpose under such Act or this title, if for each of the last 3 plan years ending prior to the effective date of the Multiemployer Pension Plan Amendments Act of 1980— “(A) the plan was not a multiemployer plan because the plan was not a plan described in section 3(37)(A)(iii) of the Employee Retirement Income Security Act of 1974 and Post, p. 1291. section 414(f)(1)(C) (as such provisions were in effect on the day before the date of the enactment of the Multiemployer Pension Plan Amendments Act of 1980); and “(B) the plan had been identified as a plan that was not a multiemployer plan in substantially all its filings with the Pension Benefit Guaranty Corporation, the Secretary of Labor and the Secretary.”.
1980
Multiemployer Pension Plan Amendments Act of 1980
Pub. L. 96–364 § 208(a) · 94 Stat. 1208
Substituted · 26 U.S.C. § 414(l)
Pub. L. 96–364, § 208(a), substituted provisions relating to applicability to multiemployer plans subject to title IV of the Employee Retirement Income Security Act of 1974 of provisions of preceding sentence, for provisions relating to applicability of paragraph to multiemployer plans to extent determined by Corporation
Source evidence
Code amendment note
Subsec. (l). Pub. L. 96–364, § 208(a), substituted provisions relating to applicability to multiemployer plans subject to title IV of the Employee Retirement Income Security Act of 1974 of provisions of preceding sentence, for provisions relating to applicability of paragraph to multiemployer plans to extent determined by Corporation.
Enacted provision · exact public law section
(a) Sections 401(a)(12) and 414(1) are each amended by striking out 26 USC 401, 414. the last sentence and inserting in lieu thereof the following: “The preceding sentence does not apply to any multiemployer plan with respect to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which title IV of the Employee Retirement Income Security Act of 1974 applies.” 29 USC 1301. 26 USC 4975.
1980
Pub. L. 96–605 title II § 201(a) · 94 Stat. 3521
Added · 26 U.S.C. § 414(m)
Pub. L. 96–605 and Pub. L. 96–613 added an identical subsec. (m)
Source evidence
Code amendment note
Subsec. (m). Pub. L. 96–605 and Pub. L. 96–613 added an identical subsec. (m).
Enacted provision · exact public law section
(a) In General.— Section 414 (relating to definitions and special rules relating to pension plan, etc.) is amended by adding at the end thereof the following new subsection: “(m) Employees of an Affiliated Service Group.— “(1) In general.— For purposes of the employee benefit requirements listed in paragraph (4), except to the extent otherwise provided in regulations, all employees of the members of an affiliated service group shall be treated as employed by a single employer. “(2) Affiliated service group.— For purposes of this subsection, the term ‘affiliated service group’ means a group consisting of a service organization (hereinafter in this paragraph referred to as the ‘first organization’) and one or more of the following: “(A) any service organization which— “(i) is a shareholder or partner in the first organization, and “(ii) regularly performs services for the first organization or is regularly associated with the first organization in performing services for third persons, and “(B) any other organization if— “(i) a significant portion of the business of such organization is the performance of services (for the first organization, for organizations described in subparagraph (A), or for both) of a type historically performed in such service field by employees, and “(ii) 10 percent or more of the interests in such organization is held by persons who are officers, highly compensated employees, or owners of the first organization or an organization described in subparagraph (A). “(3) Service organizations.— For purposes of this subsection, the term ‘service organization’ means an organization the principal business of which is the performance of services. “(4) Employee benefit requirements.— For purposes of this subsection, the employee benefit requirements listed in this paragraph are— “(A) paragraphs (3), (4), (7), and (16) of section 401(a), 26 USC 401. 26 USC 408, 410, 411, 415. 26 USC 105. 26 USC 125. “(B) sections 408(k), 410,411, and 415, “(C) section 105(h), and “(D) section 125. “(5) Other definitions.— For purposes of this subsection— “(A) Organization defined.— The term ‘organization’ means a corporation, partnership, or other organization. “(B) Ownership.— In determining ownership, the principles of section 267(c) shall apply. 26 USC 267. “(6) Prevention of avoidance.— The Secretary shall prescribe Regulations. such regulations as may be necessary to prevent the avoidance with respect to service organizations, through the use of separate organizations, of any employee benefit requirement listed in paragraph (4).”
1982
Pub. L. 97–248 § 240(c)(1) · 96 Stat. 324
Inserted · 26 U.S.C. § 414(b); 26 U.S.C. § 414(c)
Pub. L. 97–248, § 240(c)(1), inserted reference to section 416
Source evidence
Code amendment note
Subsecs. (b), (c). Pub. L. 97–248, § 240(c)(1), inserted reference to section 416.
Enacted provision · exact public law section
(1) Subsections (b) and (c) of section 414 (relating to employees 26 USC 414. of controlled groups) are each amended by striking out “and 415” and inserting in lieu thereof “415, and 416”.
1982
Pub. L. 97–248 § 240(c)(2) · 96 Stat. 324
Inserted · 26 U.S.C. § 414(m)(4)(B)
Pub. L. 97–248, § 240(c)(2), inserted reference to section 416
Source evidence
Code amendment note
Subsec. (m)(4)(B). Pub. L. 97–248, § 240(c)(2), inserted reference to section 416.
Enacted provision · exact public law section
(2) Paragraph (4) of section 414(m) (relating to employees of an affiliated service group) is amended by striking out “and 415” in subparagraph (B), and inserting in lieu there of “415, and 416”.
1982
Pub. L. 97–248 § 246(a) · 96 Stat. 324
1. Added · 26 U.S.C. § 414(m)(5)(7)
  Pub. L. 97–248, § 246(a), added par. (5)
2. Redesignated · 26 U.S.C. § 414(m)(5)(7)
  Pub. L. 97–248, § 246(a), redesignated former pars. (5) and (6) as (6) and (7), respectively
Source evidence
Code amendment note
Subsec. (m)(5) to (7). Pub. L. 97–248, § 246(a), added par. (5) and redesignated former pars. (5) and (6) as (6) and (7), respectively.
Enacted provision · exact public law section
(a) General Rule.— Subsection (m) of section 414 (relating to 26 USC 414. employees of an affiliated service group) is amended by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively, and by inserting after paragraph (4) the following new paragraph: “(5) Certain organizations performing management functions.— For purposes of this subsection, the term ‘affiliated service group’ also includes a group consisting of— “(A) an organization the principal business of which is performing, on a regular and continuing basis, management functions for 1 organization (or for 1 organization and other organizations related to such 1 organization), and “(B) the organization (and related organizations) for which such functions are so performed by the organization described in subparagraph (A). For purposes of this paragraph, the term ‘related organizations’ has the same meaning as the term ‘related persons’ when used in section 103(b)(6)(C).”
1982
Pub. L. 97–248 § 248(a) · 96 Stat. 324
Added · 26 U.S.C. § 414(n)
Pub. L. 97–248, § 248(a), added subsec. (n)
Source evidence
Code amendment note
Subsec. (n). Pub. L. 97–248, § 248(a), added subsec. (n).
Enacted provision · exact public law section
(a) General Rule.— Section 414 (relating to definitions and special 26 USC 414. rules) is amended by adding at the end thereof the following new subsection: “(n) Employee Leasing.— “(1) In general.— For purposes of the pension requirements listed in paragraph (3), except to the extent otherwise provided in regulations, with respect to any person (hereinafter in this subsection referred to as the ‘recipient’) for whom a leased employee performs services— “(A) the leased employee shall be treated as an employee of the recipient, but “(B) contributions or benefits provided by the leasing organization which are attributable to services performed for the recipient shall be treated as provided by the recipient. “(2) Leased employee.— For purposes of paragraph (1), the term ‘leased employee’ means any person who provides services to the recipient if— “(A) such services are provided pursuant to an agreement between the recipient and any other person (in this subsection referred to as the ‘leasing organization’), “(B) such person has performed such services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, and “(C) such services are of a type historically performed, in the business field of the recipient, by employees. “(3) Pension requirements.— For purposes of this subsection, the pension requirements listed in this paragraph are— “(A) paragraphs (3), (4), (7), and (16) of section 401(a), and “(B) sections 408(k), 410, 411, 415, and 416. Ante, p. 514. “(4) Time when leased employee is first considered as employee.— In the case of any leased employee, paragraph (1) shall apply only for purposes of determining whether the pension requirements listed in paragraph (3) are met for periods after the close of the 1-year period referred to in paragraph (2); except that years of service for the recipient shall be determined by taking into account the entire period for which the leased employee performed services for the recipient (or related persons). “(5) Safe harbor.— This subsection shall not apply to any leased employee if such employee is covered by a plan which is maintained by the leasing organization if, with respect to such employee, such plan— “(A) is a money purchase pension plan with a nonintegrated employer contribution rate of at least 7½ percent, and “(B) provides for immediate participation and for full and immediate vesting. “(6) Related persons.— For purposes of this subsection, the term ‘related persons’ has the same meaning as when used in section 103(b)(6)(C).”
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 491(d)(26) · 98 Stat. 494
Struck · 26 U.S.C. § 414(h)(1)(B)
Pub. L. 98–369, § 491(d)(26), struck out “or 405(a)” after “section 403(a)”
Source evidence
Code amendment note
Subsec. (h)(1)(B). Pub. L. 98–369, § 491(d)(26), struck out “or 405(a)” after “section 403(a)”.
Enacted provision · exact public law section
(26) Subsection (h) of section 414 is amended by striking out “or 405(a)”.
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 491(d)(27) · 98 Stat. 494
Struck · 26 U.S.C. § 414(l)
Pub. L. 98–369, § 491(d)(27), struck out “or 405” after “section 403(a)”
Source evidence
Code amendment note
Subsec. (l). Pub. L. 98–369, § 491(d)(27), struck out “or 405” after “section 403(a)”.
Enacted provision · exact public law section
(27) Subsection (1) of section 414 is amended by striking out “or 405”.
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 526(a)(1) · 98 Stat. 494
Substituted · 26 U.S.C. § 414(m)(6)(B)
Pub. L. 98–369, § 526(a)(1), substituted “section 318(a)” for “section 267(c)”
Source evidence
Code amendment note
Subsec. (m)(6)(B). Pub. L. 98–369, § 526(a)(1), substituted “section 318(a)” for “section 267(c)”.
Enacted provision · exact public law section
(1) In general.— Subparagraph (B) of section 414(m)(6), as in effect for taxable years beginning after December 31, 1983, is amended by striking out “section 267(c)” and inserting in lieu thereof “section 318(a)”.
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 526(d)(2) · 98 Stat. 494
1. Amended · 26 U.S.C. § 414(m)(7)
  Pub. L. 98–369, § 526(d)(2), as amended by Pub. L. 99–514, § 1852(f)
2. Struck · 26 U.S.C. § 414(m)(7)
  Pub. L. 98–369, § 526(d)(2), as struck out par. (7) relating to regulations. See subsec. (o) of this section
Source evidence
Code amendment note
Subsec. (m)(7). Pub. L. 98–369, § 526(d)(2), as amended by Pub. L. 99–514, § 1852(f), struck out par. (7) relating to regulations. See subsec. (o) of this section.
Enacted provision · exact public law section
(2) Conforming amendment.— Subsection (m) of section 414 is amended by striking out paragraph (6).
1984
Tax Reform Act of 1984
Pub. L. 98–369 div. A title IV § 491(d)(26) · 98 Stat. 494
Substituted · 26 U.S.C. § 414(n)(2)
Pub. L. 98–369, §§ 526(b)(1), 713(i), made identical amendments, substituting “any person who is not an employee of the recipient and” for “any person” in text preceding subpar. (A)
Source evidence
Code amendment note
Subsec. (n)(2). Pub. L. 98–369, §§ 526(b)(1), 713(i), made identical amendments, substituting “any person who is not an employee of the recipient and” for “any person” in text preceding subpar. (A).
Enacted provision · exact public law section
(26) Subsection (h) of section 414 is amended by striking out “or 405(a)”.
1984
Tax Reform Act of 1984
Pub. L. 98–369 § 526(d)(1) · 98 Stat. 494
Added · 26 U.S.C. § 414(o)
Pub. L. 98–369, § 526(d)(1), added subsec. (o)
Source evidence
Code amendment note
Subsec. (o). Pub. L. 98–369, § 526(d)(1), added subsec. (o).
Enacted provision · exact public law section
(1) In general.— Section 414 (relating to definitions and special 26 USC 414. rules) is amended by adding at the end thereof the following new subsection: “(o) Regulations.— The Secretary shall prescribe such regulations (which may provide rules in addition to the rules contained in subsections (m) and (n)) as may be necessary to prevent the avoidance of any employee benefit requirement listed in subsection (m)(4) or (n)(3) through the use of— “(1) separate organizations, “(2) employee leasing, or “(3) other arrangements.”
1984
Retirement Equity Act of 1984
Pub. L. 98–397 title II § 204(b) · 98 Stat. 1426
Added · 26 U.S.C. § 414(p)
Pub. L. 98–397 added subsec. (p)
Source evidence
Code amendment note
Subsec. (p). Pub. L. 98–397 added subsec. (p).
Enacted provision · exact public law section
(b) Qualified Domestic Relations Order Defined.— Section 414 Ante, p. 875. 26 USC 414. is amended by adding at the end thereof the following new subsection: “(p) Qualified Domestic Relations Order Defined.— For purposes of this subsection and section 401(a)(13)— “(1) In general.— “(A) Qualified domestic relations order.— The term ‘qualified domestic relations order’ means a domestic relations order— “(i) which creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable with respect to a participant under a plan, and “(ii) with respect to which the requirements of paragraphs (2) and (3) are met. “(B) Domestic relations order.— The term ‘domestic relations order’ means any judgment, decree, or order (including approval of a property settlement agreement) which— “(i) relates to the provision of child support, alimony payments, or marital property rights to a spouse, child, or other dependent of a participant, and “(ii) is made pursuant to a State domestic relations law (including a community property law). “(2) Order must clearly specify certain facts.— A domestic relations order meets the requirements of this paragraph only if such order clearly specifies— “(A) the name and the last known mailing address (if any) of the participant and the name and mailing address of each alternate payee covered by the order, “(B) the amount or percentage of the participant’s benefits to be paid by the plan to each such alternate payee, or the manner in which such amount or percentage is to be determined, “(C) the number of payments or period to which such order applies, and “(D) each plan to which such order applies. “(3) Order may not alter amount, form, etc., of benefits.— A domestic relations order meets the requirements of this paragraph only if such order— “(A) does not require a plan to provide any type or form of benefit, or any option, not otherwise provided under the plan, “(B) does not require the plan to provide increased benefits, (determined on the basis of actuarial value), and “(C) does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order. “(4) Exception for certain payments made after earliest retirement age.— “(A) In general.— In the case of any payment before a participant has separated from service, a domestic relations order shall not be treated as failing to meet the requirements of subparagraph (A) of paragraph (3) solely because such order requires that payment of benefits be made to an alternate payee— “(i) on or after the date on which the participant attains (or would have attained) the earliest retirement age, “(ii) as if the participant had retired on the date on which such payment is to begin under such order (but taking into account only the present value of the benefits actually accrued and not taking into account the present value of any employer subsidy for early retirement), and “(iii) in any form in which such benefits may be paid under the plan to the participant (other than in the form of a joint and survivor annuity with respect to the alternate payee and his or her subsequent spouse). For purposes of clause (ii), the interest rate assumption used in determining the present value shall be the interest rate specified in the plan or, if no rate is specified, 5 percent. “(B) Earliest retirement age.— For purposes of this paragraph, the term ‘earliest retirement age’ has the meaning Ante, p. 1441. given such term by section 417(f)(3), except that in the case of any defined contribution plan, the earliest retirement age shall be the date which is 10 years before the normal retirement age (within the meaning of section 26 USC 411. 411(a)(8)). “(5) Treatment of former spouse as surviving spouse for purposes of determining survivor benefits.— To the extent provided in any qualified domestic relations order— “(A) the former spouse of a participant shall be treated as a surviving spouse of such participant for purposes of sections 401(a)(11) and 417, and Ante, pp. 1440, 1441. “(B) if married for at least 1 year, the surviving spouse shall be treated as meeting the requirements of section 417(d). A plan shall not be treated as failing to meet the requirements Prohibition. 26 USC 401. of subsection (a) or (k) of section 401 which prohibit payment of benefits before termination of employment solely by reason of payments to an alternate payee pursuant to a qualified domestic relations order. “(6) Plan procedures with respect to orders.— “(A) Notice and determination by administrator.— In the case of any domestic relations order received by a plan— “(i) the plan administrator shall promptly notify the participant and any other alternate payee of the receipt of such order and the plan’s procedures for determining the qualified status of domestic relations orders, and “(ii) within a reasonable period after receipt of such order, the plan administrator shall determine whether such order is a qualified domestic relations order and notify the participant and each alternate payee of such determination. “(B) Plan to establish reasonable procedures.— Each plan shall establish reasonable procedures to determine the qualified status of domestic relations orders and to administer distributions under such qualified orders. “(7) Procedures for period during which determination is being made.— “(A) In general.— During any period in which the issue of whether a domestic relations order is a qualified domestic relations order is being determined (by the plan administrator, by a court of competent jurisdiction, or otherwise), the plan administrator shall segregate in a separate account in the plan or in an escrow account the amounts which would have been payable to the alternate payee during such period if the order had been determined to be a qualified domestic relations order. “(B) Payment to alternate payee if order determined to be qualified domestic relations order.— If Within 18 months the order (or modification thereof) is determined to be a qualified domestic relations order, the plan administrator shall pay the segregated amounts (plus any interest thereon) to the person or persons entitled thereto. “(C) Payment to plan participant in certain cases.— If within 18 months— “(i) it is determined that the order is not a qualified domestic relations order, or “(ii) the issue as to whether such order is a qualified domestic relations order is not resolved, then the plan administrator shall pay the segregated amounts (plus any interest thereon) to the person or persons who would have been entitled to such amounts if there had been no order. “(D) Subsequent determination or order to be applied prospectively only.— Any determination that an order is a qualified domestic relations order which is made after the close of the 18-month period shall be applied prospectively only. “(8) Alternate payee defined.— The term ‘alternate payee’ means any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant. “(9) Consultation with the secretary.— In prescribing regulations Ante, p. 1445. under this subsection and section 401(a)(13), the Secretary of Labor shall consult with the Secretary.”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1117(c) · 100 Stat. 2085
Inserted · 26 U.S.C. § 414(k)(2)
Pub. L. 99–514, § 1117(c), inserted reference to section 401(m) (relating to nondiscrimination tests for matching requirements and employee contributions)
Source evidence
Code amendment note
Subsec. (k)(2). Pub. L. 99–514, § 1117(c), inserted reference to section 401(m) (relating to nondiscrimination tests for matching requirements and employee contributions).
Enacted provision · exact public law section
(c) Technical Amendment.— Paragraph (2) of section 414(k) (relating to certain plans) is amended by striking out “and 415 (relating to limitations on benefits and contributions under qualified plans)” and inserting in lieu thereof “, 415 (relating to limitations on benefits and contributions under qualified plans), and 401(m) (relating to nondiscrimination tests for matching requirements and employee contributions)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1114(b)(11) · 100 Stat. 2085
Substituted · 26 U.S.C. § 414(m)(2)(B)(ii)
Pub. L. 99–514, § 1114(b)(11), substituted “highly compensated employees (within the meaning of section 414(q))” for “officers, highly compensated employees, or owners”
Source evidence
Code amendment note
Subsec. (m)(2)(B)(ii). Pub. L. 99–514, § 1114(b)(11), substituted “highly compensated employees (within the meaning of section 414(q))” for “officers, highly compensated employees, or owners”.
Enacted provision · exact public law section
(11) Clause (ii) of section 414(m)(2)(B) is amended by striking out “officers, highly compensated employees, or owners” and inserting in lieu thereof “highly compensated employees (within the meaning of section 414(q))”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1301(j)(4) · 100 Stat. 2085
Substituted · 26 U.S.C. § 414(m)(5)
Pub. L. 99–514, § 1301(j)(4), substituted “section 144(a)(3)” for “section 103(b)(6)(C)”
Source evidence
Code amendment note
Subsec. (m)(5). Pub. L. 99–514, § 1301(j)(4), substituted “section 144(a)(3)” for “section 103(b)(6)(C)”.
Enacted provision · exact public law section
(4) Sections 269A(b)(3), 414(m)(5), 414(n)(6), and 4988(c)(2) (defining related person) are each amended by striking out “section 103(b)(6)(C)” and inserting in lieu thereof “section 144(a)(3)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1852(f) · 100 Stat. 2085
Amended · 26 U.S.C. § 414(m)(7)
Pub. L. 99–514, § 1852(f), amended directory language of Pub. L. 98–369, § 526(d)(2), to correct an error, and did not involve any change in text. See 1984 Amendment note below
Source evidence
Code amendment note
Subsec. (m)(7). Pub. L. 99–514, § 1852(f), amended directory language of Pub. L. 98–369, § 526(d)(2), to correct an error, and did not involve any change in text. See 1984 Amendment note below.
Enacted provision · exact public law section
(f) Amendment Related to Section 526 of the Act.— Paragraph (2) of section 526(d) of the Tax Reform Act of 1984 is amended by striking out “paragraph (6)” and inserting in lieu thereof “paragraph (7)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1151(i)(1) · 100 Stat. 2085
Substituted · 26 U.S.C. § 414(n)(1)
Pub. L. 99–514, § 1151(i)(1), substituted “requirements” for “pension requirements”
Source evidence
Code amendment note
Subsec. (n)(1). Pub. L. 99–514, § 1151(i)(1), substituted “requirements” for “pension requirements”.
Enacted provision · exact public law section
(1) Paragraph (1) of section 414(n) is amended by striking out “pension requirements” and inserting in lieu thereof “requirements”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1146(b)(2) · 100 Stat. 2085
Struck · 26 U.S.C. § 414(n)(1)
Pub. L. 99–514, § 1146(b)(2), struck out “except to the extent otherwise provided in regulations,” after “listed in paragraph (3),”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 99–514, § 1146(b)(2), struck out “except to the extent otherwise provided in regulations,” after “listed in paragraph (3),”.
Enacted provision · exact public law section
(2) Conforming amendment.— Section 414(n)(l) is amended by striking out “except to the extent otherwise provided in regulations,”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1151(i)(2) · 100 Stat. 2085
Inserted · 26 U.S.C. § 414(n)(2)(B)
Pub. L. 99–514, § 1151(i)(2), inserted “(6 months in the case of core health benefits)” after “1 year”
Source evidence
Code amendment note
Subsec. (n)(2)(B). Pub. L. 99–514, § 1151(i)(2), inserted “(6 months in the case of core health benefits)” after “1 year”.
Enacted provision · exact public law section
(2) Subparagraph (B) of section 414(n)(2) is amended by inserting “(6 months in the case of core health benefits)” after “1 year”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1151(i)(3) · 100 Stat. 2085
1. Substituted · 26 U.S.C. § 414(n)(3)
  Pub. L. 99–514, § 1151(i)(3), substituted “Requirements” for “Pension requirements” in heading
2. Substituted · 26 U.S.C. § 414(n)(3)
  Pub. L. 99–514, § 1151(i)(3), substituted “requirements” for “pension requirements” in text
3. Added · 26 U.S.C. § 414(n)(3)
  Pub. L. 99–514, § 1151(i)(3), added subpar. (C)
Source evidence
Code amendment note
Subsec. (n)(3). Pub. L. 99–514, § 1151(i)(3), substituted “Requirements” for “Pension requirements” in heading, substituted “requirements” for “pension requirements” in text, and added subpar. (C).
Enacted provision · exact public law section
(3) Paragraph (3) of section 414(n) is amended— (A) by striking out “Pension requirements” and inserting in lieu thereof “Requirements”, (B) by striking out “pension requirements” and inserting in lieu thereof “requirements”, and (C) by striking out “and” at the end of subparagraph (A), by striking out the period at the end of subparagraph (B) and inserting in lieu thereof “, and”, and by adding at the end thereof the following new subparagraph: “(C) sections 79, 89, 106, 117(d), 120, 125, 127, 129, 132, 274(j), and 505.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1146(a)(2) · 100 Stat. 2085
1. Substituted · 26 U.S.C. § 414(n)(4)
  Pub. L. 99–514, § 1146(a)(2), substituted “Time when first considered as employee” for “Time when leased employee is first considered as employee” in heading
2. Amended · 26 U.S.C. § 414(n)(4)
  Pub. L. 99–514, § 1146(a)(2), amended text generally. Prior to amendment, text read as follows: “In the case of any leased employee, paragraph (1) shall apply only for purposes of determining whether the pension requirements listed in paragraph (3) are met for periods after the close of the 1-year period referred to in paragraph (2); except that years of service for the recipient shall be determined by taking into account the entire period for which the leased employee performed services for the recipient (or related persons).”
Source evidence
Code amendment note
Subsec. (n)(4). Pub. L. 99–514, § 1146(a)(2), substituted “Time when first considered as employee” for “Time when leased employee is first considered as employee” in heading and amended text generally. Prior to amendment, text read as follows: “In the case of any leased employee, paragraph (1) shall apply only for purposes of determining whether the pension requirements listed in paragraph (3) are met for periods after the close of the 1-year period referred to in paragraph (2); except that years of service for the recipient shall be determined by taking into account the entire period for which the leased employee performed services for the recipient (or related persons).”
Enacted provision · exact public law section
(2) Clarification of years of service.— Paragraph (4) of section 414(n) is amended to read as follows: “(4) Time when first considered as employee.— “(A) In general.— In the case of any leased employee, paragraph (1) shall apply only for purposes of determining whether the requirements listed in paragraph (3) are met for periods after the close of the period referred to in paragraph (2)(B). “(B) Years of service.— In the case of a person who is an employee of the recipient (whether by reason of this subsection or otherwise), for purposes of the requirements listed in paragraph (3), years of service for the recipient shall be determined by taking into account any period for which such employee would have been a leased employee but for the requirements of paragraph (2)(B).”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1146(a)(1) · 100 Stat. 2085
Amended · 26 U.S.C. § 414(n)(5)
Pub. L. 99–514, § 1146(a)(1), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “This subsection shall not apply to any leased employee if such employee is covered by a plan which is maintained by the leasing organization if, with respect to such employee, such plan—
Source evidence
Code amendment note
Subsec. (n)(5). Pub. L. 99–514, § 1146(a)(1), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “This subsection shall not apply to any leased employee if such employee is covered by a plan which is maintained by the leasing organization if, with respect to such employee, such plan—
“(A) is a money purchase pension plan with a nonintegrated employer contribution rate of at least 7½ percent, and “(B) provides for immediate participation and for full and immediate vesting.”
Enacted provision · exact public law section
(1) General rule.— Paragraph (5) of section 414(n) (relating to safe harbor exemption) is amended to read as follows: “(5) Safe harbor.— “(A) In general.— In the case of requirements described in subparagraphs (A) and (B) of paragraph (3), this subsection shall not apply to any leased employee with respect to services performed for a recipient if— “(i) such employee is covered by a plan which is maintained by the leasing organization and meets the requirements of subparagraph (B), and “(ii) leased employees (determined without regard to this paragraph) do not constitute more than 20 percent of the recipient’s nonhighly compensated work force. “(B) Plan requirements —A plan meets the requirements of this subparagraph if— “(i) such plan is a money purchase pension plan with a nonintegrated employer contribution rate for each participant of at least 10 percent of compensation, “(ii) such plan provides for full and immediate vesting, and “(iii) each employee of the leasing organization (other than employees who perform substantially all of their services for the leasing organization) immediately participates in such plan. Clause (iii) shall not apply to any individual whose compensation from the leasing organization in each plan year during the 4-year period ending with the plan year is less than $1,000. “(C) Definitions.— For purposes of this paragraph— “(i) Highly compensated employee.— The term ‘highly compensated employee’ has the meaning given such term by section 414(q). “(ii) Nonhighly compensated work force.— The term ‘nonhighly compensated work force’ means the aggregate number of individuals (other than highly compensated employees)— “(I) who are employees of the recipient (without regard to this subsection) and have performed services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, or “(II) who are leased employees with respect to the recipient (determined without regard to this paragraph). “(iii) Compensation.— The term ‘compensation’ has the same meaning as when used in section 415; except that such term shall include— “(I) any employer contribution under a qualified cash or deferred arrangement to the extent not included in gross income under section 402(a)(8) or 402(h)(1)(B), “(II) any amount which the employee would have received in cash but for an election under a cafeteria plan (within the meaning of section 125), and “(III) any amount contributed to an annuity contract described in section 403(b) pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)).”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1301(j)(4) · 100 Stat. 2085
Substituted · 26 U.S.C. § 414(n)(6)
Pub. L. 99–514, § 1301(j)(4), substituted “section 144(a)(3)” for “section 103(b)(6)(C)” in subpar. (A)
Source evidence
Code amendment note
Subsec. (n)(6). Pub. L. 99–514, § 1301(j)(4), substituted “section 144(a)(3)” for “section 103(b)(6)(C)” in subpar. (A).
Enacted provision · exact public law section
(4) Sections 269A(b)(3), 414(m)(5), 414(n)(6), and 4988(c)(2) (defining related person) are each amended by striking out “section 103(b)(6)(C)” and inserting in lieu thereof “section 144(a)(3)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1146(a)(3) · 100 Stat. 2085
1. Substituted · 26 U.S.C. § 414(n)(6)
  Pub. L. 99–514, § 1146(a)(3), substituted “Other rules” for “Related persons” in heading
2. Amended · 26 U.S.C. § 414(n)(6)
  Pub. L. 99–514, § 1146(a)(3), amended text generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘related persons’ has the same meaning as when used in section 103(b)(6)(C).”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 99–514, § 1146(a)(3), substituted “Other rules” for “Related persons” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘related persons’ has the same meaning as when used in section 103(b)(6)(C).”
Enacted provision · exact public law section
(3) Conforming amendment.— Paragraph (6) of section 414(n) is amended to read as follows: “(6) Other rules.— For purposes of this subsection— “(A) Related persons.— The term ‘related persons’ has the same meaning as when used in section 103(b)(6)(C). “(B) Employees of entities under common control.— The rules of subsections (b), (c), (m), and (o) shall apply.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1146(b)(1) · 100 Stat. 2085
Inserted · 26 U.S.C. § 414(o)
Pub. L. 99–514, § 1146(b)(1), inserted provision relating to regulations to minimize recordkeeping requirements in case of employer which has no top-heavy plans and uses the services of persons other than employees for an insignificant percentage of the employer’s total workload
Source evidence
Code amendment note
Subsec. (o). Pub. L. 99–514, § 1146(b)(1), inserted provision relating to regulations to minimize recordkeeping requirements in case of employer which has no top-heavy plans and uses the services of persons other than employees for an insignificant percentage of the employer’s total workload.
Enacted provision · exact public law section
(1) In general.— Subsection (o) of section 414 (relating to regulations) is amended by adding at the end thereof the following new sentence: “The regulations prescribed under subsection (n) shall include provisions to minimize the recordkeeping requirements of subsection (n) in the case of an employer which has no top-heavy plans (within the meaning of section 416(g)) and which uses the services of persons (other than employees) for an insignificant percentage of the employer’s total workload.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(7)(A)(ii) · 100 Stat. 2085
Inserted · 26 U.S.C. § 414(p)(1)(B)(i)
Pub. L. 99–514, § 1898(c)(7)(A)(ii), inserted “former spouse,”
Source evidence
Code amendment note
Subsec. (p)(1)(B)(i). Pub. L. 99–514, § 1898(c)(7)(A)(ii), inserted “former spouse,”.
Enacted provision · exact public law section
(ii) Clause (i) of section 414(p)(1)(B) is amended by striking out “to a spouse,” and inserting in lieu thereof “to a spouse, former spouse,”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1899A(12) · 100 Stat. 2085
Struck · 26 U.S.C. § 414(p)(3)(B)
Pub. L. 99–514, § 1899A(12), struck out the comma after “benefits”
Source evidence
Code amendment note
Subsec. (p)(3)(B). Pub. L. 99–514, § 1899A(12), struck out the comma after “benefits”.
Enacted provision · exact public law section
(12) Subparagraph (B) of section 414(p)(3) is amended by striking out the comma after “benefits”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(7)(A)(vi) · 100 Stat. 2085
1. Substituted · 26 U.S.C. § 414(p)(4)(A)
  Pub. L. 99–514, § 1898(c)(7)(A)(vi), substituted “A” for “In the case of any payment before a participant has separated from service, a” in introductory provisions
2. Inserted · 26 U.S.C. § 414(p)(4)(A)
  Pub. L. 99–514, § 1898(c)(7)(A)(vi), inserted “in the case of any payment before a participant has separated from service,” in cl. (i)
Source evidence
Code amendment note
Subsec. (p)(4)(A). Pub. L. 99–514, § 1898(c)(7)(A)(vi), substituted “A” for “In the case of any payment before a participant has separated from service, a” in introductory provisions and inserted “in the case of any payment before a participant has separated from service,” in cl. (i).
Enacted provision · exact public law section
(vi) Paragraph (4)(A) of section 414(p) is amended— (I) by striking out “In the case of any payment before a participant has separated from service, a” and inserting in lieu thereof “A”, and (II) by inserting “in the case of any payment before a participant has separated from service,” before “on or” in clause (i).
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(7)(A)(vii) · 100 Stat. 2085
Amended · 26 U.S.C. § 414(p)(4)(B)
Pub. L. 99–514, § 1898(c)(7)(A)(vii), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “For purposes of this paragraph, the term ‘earliest retirement age’ has the meaning given such term by section 417(f)(3), except that in the case of any defined contribution plan, the earliest retirement age shall be the date which is 10 years before the normal retirement age (within the meaning of section 411(a)(8)).”
Source evidence
Code amendment note
Subsec. (p)(4)(B). Pub. L. 99–514, § 1898(c)(7)(A)(vii), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “For purposes of this paragraph, the term ‘earliest retirement age’ has the meaning given such term by section 417(f)(3), except that in the case of any defined contribution plan, the earliest retirement age shall be the date which is 10 years before the normal retirement age (within the meaning of section 411(a)(8)).”
Enacted provision · exact public law section
(vii) Subparagraph (B) of section 414(p)(4) is amended to read as follows: “(B) Earliest retirement age.— For purposes of this paragraph, the term ‘earliest retirement age’ means earlier of— (i) in the date on which the participant is entitled to a distribution under the plan, or “(ii) in the later of— “(I) the date the participant attains age 50, or “(II) the earliest date on which the participant could begin receiving benefits under the plan if the participant separated from service.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(7)(A)(v) · 100 Stat. 2085
Struck · 26 U.S.C. § 414(p)(5)
Pub. L. 99–514, § 1898(c)(7)(A)(v), struck out last sentence which read as follows: “A plan shall not be treated as failing to meet the requirements of subsection (a) or (k) of section 401 which prohibit payment of benefits before termination of employment solely by reason of payments to an alternate payee pursuant to a qualified domestic relations order.”
Source evidence
Code amendment note
Subsec. (p)(5). Pub. L. 99–514, § 1898(c)(7)(A)(v), struck out last sentence which read as follows: “A plan shall not be treated as failing to meet the requirements of subsection (a) or (k) of section 401 which prohibit payment of benefits before termination of employment solely by reason of payments to an alternate payee pursuant to a qualified domestic relations order.”
Enacted provision · exact public law section
(v) Subsection (p) of section 414 is amended by striking out the last sentence of paragraph (5) and by inserting after paragraph (9) the following new paragraph: “(10) Waiver of certain distribution requirements.— With respect to the requirements of subsections (a) and (k) of section 401 and section 409(d), a plan shall not be treated as failing to meet such requirements solely by reason of payments to an alternative payee pursuant to a qualified domestic relations order.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(6)(A) · 100 Stat. 2085
Inserted · 26 U.S.C. § 414(p)(5)(A)
Pub. L. 99–514, § 1898(c)(6)(A), inserted “(and any spouse of the participant shall not be treated as a spouse of the participant for such purposes)”
Source evidence
Code amendment note
Subsec. (p)(5)(A). Pub. L. 99–514, § 1898(c)(6)(A), inserted “(and any spouse of the participant shall not be treated as a spouse of the participant for such purposes)”.
Enacted provision · exact public law section
(A) Amendment of the internal revenue code.— Subparagraph (A) of section 414(p)(5) (relating to treatment of former spouse as surviving spouse for purposes of determining survivor benefits) is amended by striking out “sections 401(a)(11) and 417” and inserting in lieu thereof “sections 401(a)(11) and 417 (and any spouse of the participant shall not be treated as a spouse of the participant for such purposes)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(7)(A)(iv) · 100 Stat. 2085
Substituted · 26 U.S.C. § 414(p)(5)(B)
Pub. L. 99–514, § 1898(c)(7)(A)(iv), substituted “the surviving former spouse” for “the surviving spouse”
Source evidence
Code amendment note
Subsec. (p)(5)(B). Pub. L. 99–514, § 1898(c)(7)(A)(iv), substituted “the surviving former spouse” for “the surviving spouse”.
Enacted provision · exact public law section
(iv) Subparagraph (B) of section 414(p)(5) is amended by striking out “the surviving spouse” and inserting in lieu thereof “the surviving former spouse”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(7)(A)(iii) · 100 Stat. 2085
Substituted · 26 U.S.C. § 414(p)(6)(A)(i)
Pub. L. 99–514, § 1898(c)(7)(A)(iii), substituted “each alternate payee” for “any other alternate payee”
Source evidence
Code amendment note
Subsec. (p)(6)(A)(i). Pub. L. 99–514, § 1898(c)(7)(A)(iii), substituted “each alternate payee” for “any other alternate payee”.
Enacted provision · exact public law section
(iii) Clause (i) of section 414(p)(6)(A) is amended by striking out “any other alternate payee” and inserting in lieu thereof “each alternate payee”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(2)(A)(i) · 100 Stat. 2085
Substituted · 26 U.S.C. § 414(p)(7)(A)
Pub. L. 99–514, § 1898(c)(2)(A)(i), substituted “shall separately account for the amounts (hereinafter in this paragraph referred to as the ‘segregated amounts’)” for “shall segregate in a separate account in the plan or in an escrow account the amounts”
Source evidence
Code amendment note
Subsec. (p)(7)(A). Pub. L. 99–514, § 1898(c)(2)(A)(i), substituted “shall separately account for the amounts (hereinafter in this paragraph referred to as the ‘segregated amounts’)” for “shall segregate in a separate account in the plan or in an escrow account the amounts”.
Enacted provision · exact public law section
(i) Subparagraph (A) of section 414(p)(7) (relating to procedures for period during which determination is being made) is amended by striking out “shall segregate in a separate account in the plan or in an escrow account the amounts” and inserting in lieu thereof “shall separately account for the amounts (hereinafter in this paragraph referred to as the ‘segregated amounts’)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(2)(A)(ii) · 100 Stat. 2085
1. Substituted · 26 U.S.C. § 414(p)(7)(B)
  Pub. L. 99–514, § 1898(c)(2)(A)(ii), substituted “the 18-month period described in subparagraph (E)” for “18 months”
2. Substituted · 26 U.S.C. § 414(p)(7)(B)
  Pub. L. 99–514, § 1898(c)(2)(A)(ii), substituted “including any interest” for “plus any interest”
Source evidence
Code amendment note
Subsec. (p)(7)(B). Pub. L. 99–514, § 1898(c)(2)(A)(ii), substituted “the 18-month period described in subparagraph (E)” for “18 months” and “including any interest” for “plus any interest”.
Enacted provision · exact public law section
(ii) Subparagraph (B) of section 414(p)(7) (relating to payment to alternate payee if order is determined to be qualified domestic relations order) is amended— (I) by striking out “18 months” and inserting in lieu thereof “the 18-month period described in subparagraph (E)”, and (II) by striking out “plus any interest” and inserting in lieu thereof “including any interest”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(2)(A)(iii) · 100 Stat. 2085
1. Substituted · 26 U.S.C. § 414(p)(7)(C)
  Pub. L. 99–514, § 1898(c)(2)(A)(iii), substituted “the 18-month period described in subparagraph (E)” for “18 months”
2. Substituted · 26 U.S.C. § 414(p)(7)(C)
  Pub. L. 99–514, § 1898(c)(2)(A)(iii), substituted “including any interest” for “plus any interest”
Source evidence
Code amendment note
Subsec. (p)(7)(C). Pub. L. 99–514, § 1898(c)(2)(A)(iii), substituted “the 18-month period described in subparagraph (E)” for “18 months” and “including any interest” for “plus any interest”.
Enacted provision · exact public law section
(iii) Subparagraph (C) of section 414(p)(7) is amended— (I) by striking out “18 months” and inserting in lieu thereof “the 18-month period described in subparagraph (E)”, and (II) by striking out “plus any interest” and inserting in lieu thereof “including any interest”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(2)(A)(iv) · 100 Stat. 2085
Inserted · 26 U.S.C. § 414(p)(7)(D)
Pub. L. 99–514, § 1898(c)(2)(A)(iv), inserted “described in subparagraph (E)”
Source evidence
Code amendment note
Subsec. (p)(7)(D). Pub. L. 99–514, § 1898(c)(2)(A)(iv), inserted “described in subparagraph (E)”.
Enacted provision · exact public law section
(iv) Subparagraph (D) of section 414(p)(7) is amended by striking out “the 18-month period” and inserting in lieu thereof “the 18-month period described in subparagraph (E)”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(2)(A)(v) · 100 Stat. 2085
Added · 26 U.S.C. § 414(p)(7)(E)
Pub. L. 99–514, § 1898(c)(2)(A)(v), added subpar. (E)
Source evidence
Code amendment note
Subsec. (p)(7)(E). Pub. L. 99–514, § 1898(c)(2)(A)(v), added subpar. (E).
Enacted provision · exact public law section
(v) Paragraph (7) of section 414(p) is amended by adding at the end thereof the following new subparagraph: “(E) Determination of 18-month period.— For purposes of this paragraph, the 18-month period described in this subparagraph is the 18-month period beginning with the date on which the first payment would be required to be made under the domestic relations order.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(4)(A) · 100 Stat. 2085
Redesignated · 26 U.S.C. § 414(p)(9)
Pub. L. 99–514, § 1898(c)(4)(A), added par. (9). Former par. (9) redesignated (11)
Source evidence
Code amendment note
Subsec. (p)(9). Pub. L. 99–514, § 1898(c)(4)(A), added par. (9). Former par. (9) redesignated (11).
Enacted provision · exact public law section
(A) Amendment of internal revenue code.— Subsection (p) of section 414 is amended by redesignating paragraph (9) as paragraph (11) and by inserting after paragraph (8) the following new paragraph: “(9) Subsection not to apply to plans to which section 401(a) (13) does not apply.— This subsection shall not apply to any plan to which section 401(a)(13) does not apply.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(7)(A)(v) · 100 Stat. 2085
Added · 26 U.S.C. § 414(p)(10)
Pub. L. 99–514, § 1898(c)(7)(A)(v), added par. (10)
Source evidence
Code amendment note
Subsec. (p)(10). Pub. L. 99–514, § 1898(c)(7)(A)(v), added par. (10).
Enacted provision · exact public law section
(v) Subsection (p) of section 414 is amended by striking out the last sentence of paragraph (5) and by inserting after paragraph (9) the following new paragraph: “(10) Waiver of certain distribution requirements.— With respect to the requirements of subsections (a) and (k) of section 401 and section 409(d), a plan shall not be treated as failing to meet such requirements solely by reason of payments to an alternative payee pursuant to a qualified domestic relations order.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1898(c)(4)(A) · 100 Stat. 2085
Redesignated · 26 U.S.C. § 414(p)(11)
Pub. L. 99–514, § 1898(c)(4)(A), redesignated former par. (9) as (11)
Source evidence
Code amendment note
Subsec. (p)(11). Pub. L. 99–514, § 1898(c)(4)(A), redesignated former par. (9) as (11).
Enacted provision · exact public law section
(A) Amendment of internal revenue code.— Subsection (p) of section 414 is amended by redesignating paragraph (9) as paragraph (11) and by inserting after paragraph (8) the following new paragraph: “(9) Subsection not to apply to plans to which section 401(a) (13) does not apply.— This subsection shall not apply to any plan to which section 401(a)(13) does not apply.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1114(a) · 100 Stat. 2085
Added · 26 U.S.C. § 414(q)
Pub. L. 99–514, § 1114(a), added subsec. (q)
Source evidence
Code amendment note
Subsec. (q). Pub. L. 99–514, § 1114(a), added subsec. (q).
Enacted provision · exact public law section
(a) General Rule.— Section 414 is amended by adding at the end thereof the following new subsection: “(q) Highly Compensated Employee.— “(1) In general.— The term ‘highly compensated employee’ means any employee who, during the year or the preceding year— “(A) was at any time a 5-percent owner, “(B) received compensation from the employer in excess of $75,000, “(C) received compensation from the employer in excess of $50,000 and was in the top-paid group of employees for such year, or “(D) was at any time an officer and received compensation greater than 150 percent of the amount in effect under section 415(c)(1)(A) for such year. “(2) Special rule for current year.— In the case of the year for which the relevant determination is being made, an employee not described in subparagraph (B), (C), or CD) of paragraph (1) for the preceding year (without regard to this paragraph) shall not be treated as described in subparagraph (B), (C), or (D) of paragraph (1) unless such employee is a member of the group consisting of the 100 employees paid the greatest compensation during the year for which such determination is being made. “(3) 5-percent owner.— An employee shall be treated as a 5-percent owner for any year if at any time during such year such employee was a 5-percent owner (as defined in section 416(i)(D) of the employer. “(4) Top-paid group.— An employee is in the top-paid group of employees for any year if such employee is in the group consisting of the top 20 percent of the employees when ranked on the basis of compensation paid during such year. “(5) Special rules for treatment of officers.— “(A) Not more than 50 officers taken into account.— For purposes of paragraph (1)(D), no more than 50 employees (or, if lesser, the greater of 3 employees or 10 percent of the employees) shall be treated as officers. “(B) At least 1 officer taken into account.— If for any year no officer of the employer is described in paragraph (1)(D), the highest paid officer of the employer for such year shall be treated as described in such paragraph. “(6) Treatment of certain family members.— “(A) In general.— If any individual is a member of the family of a 5-percent owner or of a highly compensated employee in the group consisting of the 10 highly compensated employees paid the greatest compensation during the year, then— “(i) such individual shall not be considered a separate employee, and “(ii) any compensation paid to such individual (and any applicable contribution or benefit on behalf of such individual) shall be treated as if it were paid to (or on behalf of) the 5-percent owner or highly compensated employee. “(B) Family.— For purposes of subparagraph (A), the term ’family’ means, with respect to any employee, such employee’s spouse and lineal ascendants or descendants and the spouses of such lineal ascendants or descendants. “(7) Compensation.— For purposes of this subsection— “(A) In general.— The term ‘compensation’ means compensation within the meaning of section 415(c)(3). “(B) Certain provisions not taken into account.— The determination under subparagraph (A) shall be made— “(i) without regard to sections 125, 402(a)(8), and 402(h)(1)(B), and “(ii) in the case of employer contributions made pursuant to a salary reduction agreement, without regard to section 403(b). “(8) Excluded employees.— For purposes of subsection (r) and for purposes of determining the number of employees in the top-paid group under paragraph (4), the following employees shall be excluded— “(A) employees who have not completed 6 months of service, “(B) employees who normally work less than 17½ hours per week, “(C) employees who normally work during not more than 6 months during any year, “(D) employees who have not attained age 21, “(E) except to the extent provided in regulations, employees who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and the employer, and “(F) employees who are nonresident aliens and who receive no earned income (within the meaning of section 91 l(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)). The employer may elect to apply subparagraph (A), (B), (C), or (D) by substituting a shorter period of service, smaller number of hours or months, or lower age for the period of service, number of hours or months, or age (as the case may be) than that specified in such subparagraph. “(9) Former employees.— A former employee shall be treated as a highly compensated employee if— “(A) such employee was a highly compensated employee when such employee separated from service, or “(B) such employee was a highly compensated employee at any time after attaining age 55. “(10) Coordination with other provisions.— Subsections (b), (c), (m), (n), and (o) shall be applied before the application of this section.”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1115(a) · 100 Stat. 2085
Added · 26 U.S.C. § 414(r); 26 U.S.C. § 414(s)
Pub. L. 99–514, § 1115(a), added subsecs. (r) and (s)
Source evidence
Code amendment note
Subsecs. (r), (s). Pub. L. 99–514, § 1115(a), added subsecs. (r) and (s).
Enacted provision · exact public law section
(a) In General.— Section 414 is amended by adding at the end thereof the following new subsections: “(r) Special Rules for Separate Line of Business.— (1) In general.— For purposes of sections 89 and 410(b), an employer shall be treated as operating separate lines of business during any year if the employer for bona fide business reasons operates separate lines of business. “(2) Line of business must have 50 employees, etc.— A line of business shall not be treated as separate under paragraph (1) unless— “(A) such line of business has at least 50 employees who are not excluded under subsection (q)(8), “(B) the employer notifies the Secretary that such line of business is being treated as separate for purposes of paragraph (1), and “(C) such line of business meets guidelines prescribed by the Secretary or the employer receives a determination from the Secretary that such line of business may be treated as separate for purposes of paragraph (1). “(3) Safe harbor rule.— The requirements of subparagraph (C) of paragraph (2) shall not apply to any line of business if the highly compensated employee percentage with respect to such line of business is— “(A) not less than one-half, and “(B) not more than twice, the percentage which highly compensated employees are of all employees of the employer. An employer shall be treated as meeting the requirements of subparagraph (A) if at least 10 percent of all highly compensated employees of the employer perform services solely for such line of business. “(4) Highly compensated employee percentage defined.— For purposes of this subsection, the term ‘highly compensated employee percentage’ means the percentage which highly compensated employees performing services for the line of business are of all employees performing services for the line of business. “(5) Allocation of benefits to line of business.— For purposes of this subsection, benefits which are attributable to services provided to a line of business shall be treated as provided by such line of business. “(6) Headquarters personnel, etc.— The Secretary shall prescribe rules providing for— “(A) the allocation of headquarters personnel among the lines of business of the employer, and “(B) the treatment of other employees providing services for more than 1 line of business of the employer or not in lines of business meeting the requirements of paragraph (2). “(7) Separate operating units.— For purposes of this subsection, the term ‘separate line of business’ includes an operating unit in a separate geographic area separately operated for a bona fide business reason. “(8) Affiliated service groups.— This subsection shall not apply in the case of any affiliated service group (within the meaning of section 414(m)). “(s) Compensation.— For purposes of this part— “(1) In general.— The term ‘compensation’ means compensation for service performed for an employer which (taking into account the provisions of this chapter) is currently includible in gross income. “(2) Self-employed individuals.— The Secretary shall prescribe regulations for the determination of the compensation of an employee who is a self-employed individual (within the meaning of section 401(c)(D) which are based on the principles of paragraph (1). “(3) Employer may elect to treat certain deferrals as compensation.— An employer may elect to include as compensation any amount which is contributed by the employer pursuant to a salary reduction agreement and which is not includible in the gross income of an employee under section 125, 402(a)(8), 402(h), or 403(b). “(4) Alternative determination of compensation.— The Secretary shall by regulation provide for alternative methods of determining compensation which may be used by an employer, except that such regulations shall provide that an employer may not use an alternative method if the use of such method discriminates in favor of highly compensated employees (within the meaning of subsection (q)).”
1986
Tax Reform Act of 1986
Pub. L. 99–514 § 1151(e)(1) · 100 Stat. 2085
Added · 26 U.S.C. § 414(t)
Pub. L. 99–514, § 1151(e)(1), added subsec. (t)
Source evidence
Code amendment note
Subsec. (t). Pub. L. 99–514, § 1151(e)(1), added subsec. (t).
Enacted provision · exact public law section
(1) In general.— Section 414 is amended by adding at the ’ end thereof the following new subsection: “(t) Application of Controlled Group Rules to Certain Employee Benefits.— “(1) In general.— All employees who are treated as employed by a single employer under subsection (b), (c), or (m) of section 414 shall be treated as employed by a single employer for purposes of an applicable section. The provisions of subsection (o) of section 414 shall apply with respect to the requirements of an applicable section. “(2) Applicable section.— For purposes of this subsection, the term ‘applicable section’ means section 79, 89, 106, 117(d), 120, 125, 127,129,132, 274(j), or 505.”
1987
Pub. L. 100–203 title IX § 9305(c) · 101 Stat. 1330
Struck · 26 U.S.C. § 414(b)
Pub. L. 100–203 struck out “the minimum funding standard of section 412, the tax imposed by section 4971, and” after “one such corporation,”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 100–203 struck out “the minimum funding standard of section 412, the tax imposed by section 4971, and” after “one such corporation,”.
Enacted provision · exact public law section
(c) Conforming Amendment.— Section 4140)) of the 1986 Code is 26 USC 414.. amended by striking out “the minimum funding standard of section 412, the tax imposed by section 4971, and”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011A(b)(3) · 102 Stat. 3342
Inserted · 26 U.S.C. § 414(k)(2)
Pub. L. 100–647, § 1011A(b)(3), inserted “72(d) (relating to treatment of employee contributions as separate contract),” after “purposes of sections”
Source evidence
Code amendment note
Subsec. (k)(2). Pub. L. 100–647, § 1011A(b)(3), inserted “72(d) (relating to treatment of employee contributions as separate contract),” after “purposes of sections”.
Enacted provision · exact public law section
(3) Section 414(k)(2) of the 1986 Code (relating to certain plans treated as defined contribution plans) is amended by inserting “72(d) (relating to treatment of employee contributions as separate contract),”, before “411(a)(7)(A)”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 2005(c)(1) · 102 Stat. 3342
1. Substituted · 26 U.S.C. § 414(l)
  Pub. L. 100–647, § 2005(c)(1), (2), substituted “Merger” for “Mergers” in heading
2. Amended · 26 U.S.C. § 414(l)
  Pub. L. 100–647, § 2005(c)(1), (2), designated existing provision as par. (1)
3. Inserted · 26 U.S.C. § 414(l)
  Pub. L. 100–647, § 2005(c)(1), (2), inserted par. (1) heading
4. Added · 26 U.S.C. § 414(l)
  Pub. L. 100–647, § 2005(c)(1), (2), added par. (2)
Source evidence
Code amendment note
Subsec. (l). Pub. L. 100–647, § 2005(c)(1), (2), substituted “Merger” for “Mergers” in heading, designated existing provision as par. (1), inserted par. (1) heading, and added par. (2).
Enacted provision · exact public law section
(1) Section 414(1) of the 1986 Code is amended by adding at the end thereof the following new paragraph: “(2) Allocation of assets in plan spin-offs, etc.— “(A) In general.— In the case of a plan spin-off of a defined benefit plan, a trust which forms part of— “(i) the original plan, or “(ii) any plan spun off from such plan, shall not constitute a qualified trust under this section unless the applicable percentage of excess assets are allocated to each of such plans. “(B) Applicable percentage.— For purposes of subparagraph (A), the term ‘applicable percentage’ means, with respect to each of the plans described in clauses (i) and (ii) of subparagraph (A), the percentage determined by dividing— “(i) the excess (if any) of— “(I) the amount determined under section 412(c)(7)(A)(i) with respect to the plan, over “(II) the amount of the assets required to be allocated to the plan after the spin-off (without regard to this paragraph), by “(ii) the sum of the excess amounts determined separately under clause (i) for all such plans. “(C) Excess assets.— For purposes of subparagraph (A), the term ‘excess assets’ means an amount equal to the excess (if any) of— “(i) the fair market value of the assets of the original plan immediately before the spin-off, over “(ii) the amount of assets required to be allocated after the spin-off to all plans (determined without regard to this paragraph). “(D) Certain spun-off plans not taken into account.— “(i) In general.— A plan involved in a spin-off which is described in clause (ii), (iii), or (iv) shall not be taken into account for purposes of this paragraph, except that the amount determined under subparagraph (C)(ii) shall be increased by the amount of assets allocated to such plan. “(ii) Plans transferred out of controlled groups.— A plan is described in this clause if, after such spin-off, such plan is maintained by an employer who is not a member of the same controlled group as the employer maintaining the original plan. “(iii) Plans transferred out of multiple employer plans.— A plan as described in this clause if, after the spin-off, any employer maintaining such plan (and any member of the same controlled group as such employer) does not maintain any other plan remaining after the spin-off which is also maintained by another employer (or member of the same controlled group assuch other employer) which maintained the plan in existence before the spin-off. “(iv) Terminated plans.— A plan is described in this clause if, pursuant to the transaction involving the spin-off, the plan is terminated. “(v) Controlled group.— For purposes of this subparagraph, the term ‘controlled group’ means any group treated as a single employer under subsection (b), (c), (m), or (o). “(E) Paragraph not to apply to multiemployer plans.— This paragraph does not apply to any multiemployer plan with respect to any spin-off to the extent that participants either before or after the spin-off are covered under a multiemployer plan to which title IV of the Employee Retirement Income Security Act of 1974 applies. “(F) Application to similar transaction.— Except as provided by the Secretary, rules similar to the rules of this paragraph shall apply to transactions similar to spin-offs.”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 6067(a) · 102 Stat. 3342
Added · 26 U.S.C. § 414(l)(2)(G)
Pub. L. 100–647, § 6067(a), added subpar. (G)
Source evidence
Code amendment note
Subsec. (l)(2)(G). Pub. L. 100–647, § 6067(a), added subpar. (G).
Enacted provision · exact public law section
(a) In General.— Section 414(1)(2) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: “(G) Special rules for bridge banks.— For purposes of this paragraph, in the case of a bridge bank established under section 11(i) of the Federal Deposit Insurance Act (12 U.S.C. 1821(i))— “(i) such bank shall be treated as a member of any controlled group which includes any insured bank (as defined in section 3(h) of such Act (12 U.S.C. 1813(h)))— “(I) which maintains a defined benefit plan, “(II) which is closed by the appropriate bank regulatory authorities, and “(III) any asset and liabilities of which are received by the bridge bank, and “(ii) the requirements of this paragraph shall not be treated as met with respect to such plan unless during the 180-day period beginning on the date such insured bank is closed— “(I) the bridge bank has the right to require the plan to transfer (subject to the provisions of this paragraph) not more than 50 percent of the excess assets (as defined in subparagraph (C)) to a defined benefit plan maintained by the bridge bank with respect to participants or former participants (including retirees and beneficiaries) in the original plan employed by the bridge bank or formerly employed by the closed bank, and “(II) no other merger, spin-off, termination, or similar transaction involving the portion of the excess assets described in subclause (I) may occur without the prior written consent of the bridge bank.”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(h)(5) · 102 Stat. 3342
Substituted · 26 U.S.C. § 414(m)(4)(A)
Pub. L. 100–647, § 1011(h)(5), substituted “(16), (17), and (26)” for “and (16)”
Source evidence
Code amendment note
Subsec. (m)(4)(A). Pub. L. 100–647, § 1011(h)(5), substituted “(16), (17), and (26)” for “and (16)”.
Enacted provision · exact public law section
(5) Subsections (m)(4)(A) and (n)(3)(A) of section 414 of the 1986 Code are each amended by striking out “and (16)” and inserting in lieu thereof “(16), (17), and (26)”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011B(a)(16) · 102 Stat. 3342
Struck · 26 U.S.C. § 414(m)(4)(C); 26 U.S.C. § 414(m)(4)(D)
Pub. L. 100–647, § 1011B(a)(16), struck out subpars. (C) and (D) which read as follows:
Source evidence
Code amendment note
Subsec. (m)(4)(C), (D). Pub. L. 100–647, § 1011B(a)(16), struck out subpars. (C) and (D) which read as follows:
“(C) section 105(h), and “(D) section 125.”
Enacted provision · exact public law section
(16) Section 414(m)(4) of the 1986 Code is amended by inserting “and” at the end of subparagraph (A), by striking out the comma at the end of subparagraph (B) and inserting in lieu thereof a period, and by striking out subparagraphs (C) and (D).
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(h)(5) · 102 Stat. 3342
Substituted · 26 U.S.C. § 414(n)(3)(A)
Pub. L. 100–647, § 1011(h)(5), substituted “(16), (17), and (26)” for “and (16)”
Source evidence
Code amendment note
Subsec. (n)(3)(A). Pub. L. 100–647, § 1011(h)(5), substituted “(16), (17), and (26)” for “and (16)”.
Enacted provision · exact public law section
(5) Subsections (m)(4)(A) and (n)(3)(A) of section 414 of the 1986 Code are each amended by striking out “and (16)” and inserting in lieu thereof “(16), (17), and (26)”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 3011(b)(4) · 102 Stat. 3342
1. Amended · 26 U.S.C. § 414(n)(3)(C)
  Pub. L. 100–647, § 3011(b)(4), as amended by Pub. L. 101–239, § 7813(b)
2. Struck · 26 U.S.C. § 414(n)(3)(C)
  Pub. L. 100–647, § 3011(b)(4), as struck out “162(i)(2), 162(k),” after “132,”
3. Substituted · 26 U.S.C. § 414(n)(3)(C)
  Pub. L. 100–647, § 3011(b)(4), as substituted “505, and 4980B” for “and 505”
Source evidence
Code amendment note
Subsec. (n)(3)(C). Pub. L. 100–647, § 3011(b)(4), as amended by Pub. L. 101–239, § 7813(b), struck out “162(i)(2), 162(k),” after “132,” and substituted “505, and 4980B” for “and 505”.
Enacted provision · exact public law section
(4) Subparagraph (C) of section 414(n)(3) of the 1986 Code, as amended by section 111B(a) of this Act, is amended by striking out “162(i)(2), 162(k)(2),” and by striking out “and 505” and inserting in lieu thereof “505, and 4980B”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011B(a)(19) · 102 Stat. 3342
Inserted · 26 U.S.C. § 414(n)(3)(C)
Pub. L. 100–647, § 1011B(a)(19), inserted “162(i)(2), 162(k),” after “132,”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 100–647, § 1011B(a)(19), inserted “162(i)(2), 162(k),” after “132,”.
Enacted provision · exact public law section
(19) Subparagraph (O of section 414(n)(3) of the 1986 Code is amended by striking out “132,” and inserting in lieu thereof “132, 162(i)(2), 162(k),”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(e)(4) · 102 Stat. 3342
Inserted · 26 U.S.C. § 414(o)
Pub. L. 100–647, § 1011(e)(4), inserted “or any requirement under section 457” after “or (n)(3)”
Source evidence
Code amendment note
Subsec. (o). Pub. L. 100–647, § 1011(e)(4), inserted “or any requirement under section 457” after “or (n)(3)”.
Enacted provision · exact public law section
(4) Section 414(o) of the 1986 Code is amended by inserting “or any requirement under section 457” after “(n)(3)”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1018(t)(8)(E) · 102 Stat. 3342
1. Substituted · 26 U.S.C. § 414(p)(4)(B)
  Pub. L. 100–647, § 1018(t)(8)(E), substituted “means the earlier of” for “means earlier of”
2. Struck · 26 U.S.C. § 414(p)(4)(B)
  Pub. L. 100–647, § 1018(t)(8)(E), struck out “in” at beginning of cls. (i) and (ii)
Source evidence
Code amendment note
Subsec. (p)(4)(B). Pub. L. 100–647, § 1018(t)(8)(E), substituted “means the earlier of” for “means earlier of” and struck out “in” at beginning of cls. (i) and (ii).
Enacted provision · exact public law section
(E) Subparagraph (B) of section 414(p)(4) of the 1986 Code is amended— (i) by striking out “means earlier of and inserting in lieu thereof “means the earlier of’, and (ii) by striking out “in” each place it appears.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1018(t)(8)(G) · 102 Stat. 3342
Inserted · 26 U.S.C. § 414(p)(9)
Pub. L. 100–647, § 1018(t)(8)(G), inserted at end “For purposes of this title, except as provided in regulations, any distribution from an annuity contract under section 403(b) pursuant to a qualified domestic relations order shall be treated in the same manner as a distribution from a plan to which section 401(a)(13) applies.”
Source evidence
Code amendment note
Subsec. (p)(9). Pub. L. 100–647, § 1018(t)(8)(G), inserted at end “For purposes of this title, except as provided in regulations, any distribution from an annuity contract under section 403(b) pursuant to a qualified domestic relations order shall be treated in the same manner as a distribution from a plan to which section 401(a)(13) applies.”
Enacted provision · exact public law section
(G) Section 414(p)(9) of the 1986 Code is amended by Contracts. adding at the end thereof the following new sentence: “For purposes of this title, except as provided in regulations, any distribution from an annuity contract under section 403(b) pursuant to a qualified domestic relations order shall be treated in the same manner as a distribution from a plan to which section 401(a)(13) applies.”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1018(t)(8)(F) · 102 Stat. 3342
Inserted · 26 U.S.C. § 414(p)(10)
Pub. L. 100–647, § 1018(t)(8)(F), inserted “, 403(b),” after “section 401”
Source evidence
Code amendment note
Subsec. (p)(10). Pub. L. 100–647, § 1018(t)(8)(F), inserted “, 403(b),” after “section 401”.
Enacted provision · exact public law section
(F) Section 414(p)(10) of the 1986 Code (relating to waiver of certain distribution requirements) is amended by inserting “, 403(b),” after “section 401”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(i)(1) · 102 Stat. 3342
Inserted · 26 U.S.C. § 414(q)(1)
Pub. L. 100–647, § 1011(i)(1), inserted at end “The Secretary shall adjust the $75,000 and $50,000 amounts under this paragraph at the same time and in the same manner as under section 415(d).”
Source evidence
Code amendment note
Subsec. (q)(1). Pub. L. 100–647, § 1011(i)(1), inserted at end “The Secretary shall adjust the $75,000 and $50,000 amounts under this paragraph at the same time and in the same manner as under section 415(d).”
Enacted provision · exact public law section
(1) Paragraph (1) of section 414(q) of the 1986 Code (defining highly compensated employee) is amended by adding at the end thereof the following new flush sentence: “The Secretary shall adjust the $75,000 and $50,000 amounts under this paragraph at the same time and in the same manner as under section 415(d),”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(d)(8) · 102 Stat. 3342
1. Substituted · 26 U.S.C. § 414(q)(1)(D)
  Pub. L. 100–647, § 1011(d)(8), substituted “50” for “150”
2. Substituted · 26 U.S.C. § 414(q)(1)(D)
  Pub. L. 100–647, § 1011(d)(8), substituted “415(b)(1)(A)” for “415(c)(1)(A)”
Source evidence
Code amendment note
Subsec. (q)(1)(D). Pub. L. 100–647, § 1011(d)(8), substituted “50” for “150” and “415(b)(1)(A)” for “415(c)(1)(A)”.
Enacted provision · exact public law section
(8) Sections 414(q)(1)(D) and 416(i)(1)(A)(i) of the 1986 Code are each amended by striking out “150 percent of the amount in effect under section 415(c)(1)(A)” and inserting in lieu thereof “50 percent of the amount in effect under section 415(b)(1)(A)”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(i)(2) · 102 Stat. 3342
Added · 26 U.S.C. § 414(q)(6)(C)
Pub. L. 100–647, § 1011(i)(2), added subpar. (C)
Source evidence
Code amendment note
Subsec. (q)(6)(C). Pub. L. 100–647, § 1011(i)(2), added subpar. (C).
Enacted provision · exact public law section
(2) Section 414(q)(6) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: “(C) Rules to apply to other provisions.— “(i) In general.— Except as provided in regulations and in clause (ii), the rules of subparagraph (A) shall be applied in determining the compensation of (or any contributions or benefits on behalf of) any employee for purposes of any section with respect to which a highly compensated employee is defined by reference to this subsection. “(ii) Exception for determining integration levels.— Clause (i) shall not apply in determining the portion of the compensation of a participant which is under the integration level for purposes of section 401(1).”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(i)(4)(A) · 102 Stat. 3342
Inserted · 26 U.S.C. § 414(q)(8)
Pub. L. 100–647, § 1011(i)(4)(A), inserted “or the number of officers taken into account under paragraph (5)” after “under paragraph (4)”
Source evidence
Code amendment note
Subsec. (q)(8). Pub. L. 100–647, § 1011(i)(4)(A), inserted “or the number of officers taken into account under paragraph (5)” after “under paragraph (4)”.
Enacted provision · exact public law section
(A) Paragraph (8) of section 414(q) of the 1986 Code is amended by inserting “or the number of officers taken into account under paragraph (5)” after “paragraph (4)”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(i)(3)(A)(ii) · 102 Stat. 3342
Substituted · 26 U.S.C. § 414(q)(8)
Pub. L. 100–647, § 1011(i)(3)(A)(ii), substituted “Except as provided by the Secretary, the employer” for “The employer” in last sentence
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 100–647, § 1011(i)(3)(A)(ii), substituted “Except as provided by the Secretary, the employer” for “The employer” in last sentence.
Enacted provision · exact public law section
(ii) by striking out “The” in the last sentence thereof and inserting in lieu thereof “Except as provided by the Secretary, the”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(i)(3)(A)(i) · 102 Stat. 3342
Struck · 26 U.S.C. § 414(q)(8)(F)
Pub. L. 100–647, § 1011(i)(3)(A)(i), struck out subpar. (F) which read as follows: “employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)).”
Source evidence
Code amendment note
Subsec. (q)(8)(F). Pub. L. 100–647, § 1011(i)(3)(A)(i), struck out subpar. (F) which read as follows: “employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)).”
Enacted provision · exact public law section
(i) by inserting “and” at the end of subparagraph (D), by striking “, and” at the end of subparagraph (E) and inserting in lieu thereof a period, and by striking out subparagraph (F), and
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(i)(3)(B) · 102 Stat. 3342
Added · 26 U.S.C. § 414(q)(11)
Pub. L. 100–647, § 1011(i)(3)(B), added par. (11)
Source evidence
Code amendment note
Subsec. (q)(11). Pub. L. 100–647, § 1011(i)(3)(B), added par. (11).
Enacted provision · exact public law section
(B) Section 414(q) of the 1986 Code is amended by adding at the end thereof the following new paragraph: “(11) Special rule for nonresident aliens— For purposes of this subsection and subsection (r), employees who are non-resident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)) shall not be treated as employees.”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 3021(b)(1) · 102 Stat. 3342
Added · 26 U.S.C. § 414(q)(12)
Pub. L. 100–647, § 3021(b)(1), added par. (12)
Source evidence
Code amendment note
Subsec. (q)(12). Pub. L. 100–647, § 3021(b)(1), added par. (12).
Enacted provision · exact public law section
(1) Definition of highly compensated.— Subsection (q) of section 414 of the 1986 Code is amended by adding at the end thereof the following new paragraph: “(12) Simplified method for determining highly compensated employees.— “(A) In general.— If an election by the employer under this paragraph applies to any year, in determining whether an employee is a highly compensated employee for such year— “(i) subparagraph (B) of paragraph (1) shall be applied by substituting ‘$50,000’ for ‘$75,000’, and “(ii) subparagraph (C) of paragraph (1) shall not apply. “(B) Requirement for election.— An election under this paragraph shall not apply to any year unless— “(i) at all times during such year, the employer maintained significant business activities (and employed employees) in at least 2 significantly separate geographic areas, and “(ii) the employer satisfies such other conditions as the Secretary may prescribe.”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 3021(b)(2)(A) · 102 Stat. 3342
Amended · 26 U.S.C. § 414(r)(3)
Pub. L. 100–647, § 3021(b)(2)(A), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The requirements of subparagraph (C) of paragraph (2) shall not apply to any line of business if the highly compensated employee percentage with respect to such line of business is—
Source evidence
Code amendment note
Subsec. (r)(3). Pub. L. 100–647, § 3021(b)(2)(A), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The requirements of subparagraph (C) of paragraph (2) shall not apply to any line of business if the highly compensated employee percentage with respect to such line of business is—
“(A) not less than one-half, and “(B) not more than twice, the percentage which highly compensated employees are of all employees of the employer. An employer shall be treated as meeting the requirements of subparagraph (A) if at least 10 percent of all highly compensated employees of the employer perform services solely for such line of business.”
Enacted provision · exact public law section
(A) Safe harbor rule.— Paragraph (3) of section 414(r) of the 1986 Code is amended to read as follows: “(3) Safe harbor rule.— “(A) In general— The requirements of subparagraph (C) of paragraph (2) shall not apply to any line of business if the highly compensated employee percentage with respect to such line of business is— “(i) not less than one-half, and “(ii) not more than twice, the percentage which highly compensated employees are of all employees of the employer. An employer shall be treated as meeting the requirements of clause (i) if at least 10 percent of all highly compensated employees of the employer perform services solely for such fine of business. “(B) Determination may be based on preceding year.— The requirements of subparagraph (A) shall be treated as met with respect to any line of business if such requirements were met with respect to such line of business for the preceding year and if— “(i) no more than a de minimis number of employees were shifted to or from the line of business after the close of the preceding year, or “(ii) the employees shifted to or from the line of business after the close of the preceding year contained a substantially proportional number of highly compensated employees.”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(j)(1) · 102 Stat. 3342
Substituted · 26 U.S.C. § 414(s)
Pub. L. 100–647, § 1011(j)(1), substituted “any applicable provision” for “this part” in introductory provisions
Source evidence
Code amendment note
Subsec. (s). Pub. L. 100–647, § 1011(j)(1), substituted “any applicable provision” for “this part” in introductory provisions.
Enacted provision · exact public law section
(1) So much of section 414(s) of the 1986 Code as precedes paragraph (2) is amended to read as follows: “(s) Compensation.— For purposes of any applicable provision— “(1) In general.— Except as provided in this subsection, the term ‘compensation’ has the meaning given such term by section 415(c)(3).”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(j)(1) · 102 Stat. 3342
Amended · 26 U.S.C. § 414(s)(1)
Pub. L. 100–647, § 1011(j)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “The term ‘compensation’ means compensation for service performed for an employer which (taking into account the provisions of this chapter) is currently includible in gross income.”
Source evidence
Code amendment note
Subsec. (s)(1). Pub. L. 100–647, § 1011(j)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “The term ‘compensation’ means compensation for service performed for an employer which (taking into account the provisions of this chapter) is currently includible in gross income.”
Enacted provision · exact public law section
(1) So much of section 414(s) of the 1986 Code as precedes paragraph (2) is amended to read as follows: “(s) Compensation.— For purposes of any applicable provision— “(1) In general.— Except as provided in this subsection, the term ‘compensation’ has the meaning given such term by section 415(c)(3).”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011(j)(2) · 102 Stat. 3342
1. Added · 26 U.S.C. § 414(s)(2)(4)
  Pub. L. 100–647, § 1011(j)(2), added par. (4)
2. Redesignated · 26 U.S.C. § 414(s)(2)(4)
  Pub. L. 100–647, § 1011(j)(2), redesignated former pars. (3) and (4) as (2) and (3), respectively
3. Struck · 26 U.S.C. § 414(s)(2)(4)
  Pub. L. 100–647, § 1011(j)(2), struck out former par. (2) which read as follows: “The Secretary shall prescribe regulations for the determination of the compensation of an employee who is a self-employed individual (within the meaning of section 401(c)(1)) which are based on the principles of paragraph (1).”
Source evidence
Code amendment note
Subsec. (s)(2) to (4). Pub. L. 100–647, § 1011(j)(2), added par. (4), redesignated former pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which read as follows: “The Secretary shall prescribe regulations for the determination of the compensation of an employee who is a self-employed individual (within the meaning of section 401(c)(1)) which are based on the principles of paragraph (1).”
Enacted provision · exact public law section
(2) Section 414(s) of the 1986 Code is amended by striking out paragraph (2), by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively, and by adding at the end thereof the following new paragraph: (4) Applicable provision.— For purposes of this subsection, the term ‘applicable provision’ means any provision which specifically refers to this subsection,”
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011B(a)(20) · 102 Stat. 3342
Struck · 26 U.S.C. § 414(t)(1)
Pub. L. 100–647, § 1011B(a)(20), struck out “of section 414” before “shall be treated” and “shall apply with”
Source evidence
Code amendment note
Subsec. (t)(1). Pub. L. 100–647, § 1011B(a)(20), struck out “of section 414” before “shall be treated” and “shall apply with”.
Enacted provision · exact public law section
(20) Section 414(t)(1) of the 1986 Code (relating to application of controlled group rules to certain employees) is amended by striking out “of section 414” each place it appears.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 3011(b)(5) · 102 Stat. 3342
1. Amended · 26 U.S.C. § 414(t)(2)
  Pub. L. 100–647, § 3011(b)(5), as amended by Pub. L. 101–239, § 7813(b)
2. Struck · 26 U.S.C. § 414(t)(2)
  Pub. L. 100–647, § 3011(b)(5), as struck out “162(i)(2), 162(k),” after “132,”
3. Substituted · 26 U.S.C. § 414(t)(2)
  Pub. L. 100–647, § 3011(b)(5), as substituted “505, or 4980B” for “or 505”
Source evidence
Code amendment note
Subsec. (t)(2). Pub. L. 100–647, § 3011(b)(5), as amended by Pub. L. 101–239, § 7813(b), struck out “162(i)(2), 162(k),” after “132,” and substituted “505, or 4980B” for “or 505”.
Enacted provision · exact public law section
(5) Paragraph (2) of section 414(t) of the 1986 Code, as amended by section 111B(a) of this Act, is amended by striking out “162(i)(2), 162(k)(2),” and by striking out “or 505” and inserting in lieu thereof “505, or 4980B”.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 1011B(a)(17) · 102 Stat. 3342
Inserted · 26 U.S.C. § 414(t)(2)
Pub. L. 100–647, § 1011B(a)(17), inserted “162(i)(2), 162(k),” after “132,”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 100–647, § 1011B(a)(17), inserted “162(i)(2), 162(k),” after “132,”.
Enacted provision · exact public law section
(17) Paragraph (2) of section 414(t) of the 1986 Code is amended by striking out “132,” and inserting in lieu thereof “132, 162(i)(2), 162(k),”.
1989
Pub. L. 101–140 § 203(a)(6)(A) · 103 Stat. 830
Struck · 26 U.S.C. § 414(n)(3)(C)
Pub. L. 101–140, § 203(a)(6)(A), struck out “89,” after “79,”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–140, § 203(a)(6)(A), struck out “89,” after “79,”.
Enacted provision · exact public law section
(A) Subparagraph (C) of section 414(n)(3) is amended by striking “89,”.
1989
Pub. L. 101–140 § 204(b)(2) · 103 Stat. 830
Substituted · 26 U.S.C. § 414(r)(1)
Pub. L. 101–140, § 204(b)(2), substituted “sections 129(d)(8) and 410(b)” for “section 410(b)”
Source evidence
Code amendment note
Subsec. (r)(1). Pub. L. 101–140, § 204(b)(2), substituted “sections 129(d)(8) and 410(b)” for “section 410(b)”.
Enacted provision · exact public law section
(2) Dependent care.— Paragraph (1) of section 414(r) is amended by striking “section 410(b)” and inserting “sections 129(d)(8) and 410(b)”.
1989
Pub. L. 101–140 § 203(a)(6)(B) · 103 Stat. 830
Substituted · 26 U.S.C. § 414(r)(1)
Pub. L. 101–140, § 203(a)(6)(B), substituted “section 410(b)” for “sections 89 and 410(b)”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–140, § 203(a)(6)(B), substituted “section 410(b)” for “sections 89 and 410(b)”.
Enacted provision · exact public law section
(B) Paragraph (1) of section 414(r) is amended by striking “sections 89 and” and inserting “section”.
1989
Pub. L. 101–140 § 203(a)(6)(C) · 103 Stat. 830
Struck · 26 U.S.C. § 414(t)(2)
Pub. L. 101–140, § 203(a)(6)(C), struck out “89,” after “79,”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–140, § 203(a)(6)(C), struck out “89,” after “79,”.
Enacted provision · exact public law section
(C) Paragraph (2) of section 414(t) is amended by striking “89,”.
1989
Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7813(b) · 103 Stat. 2106
Amended · 26 U.S.C. § 414(n)(3)(C)
Pub. L. 101–239, § 7813(b), amended directory language of Pub. L. 100–647, § 3011(b)(4), see 1988 Amendment note below
Source evidence
Code amendment note
Subsec. (n)(3)(C). Pub. L. 101–239, § 7813(b), amended directory language of Pub. L. 100–647, § 3011(b)(4), see 1988 Amendment note below.
Enacted provision · exact public law section
(b) Amendments Related to Section 3011 of the 1988 Act.— Paragraphs (4) and (5) of section 3011(b) of the 1988 Act are each 26 USC 414. amended— (1) by striking “111B(a)” and inserting “1011B(a)”, and (2) by striking “162(k)(2)” and inserting “162(k)”.
1989
Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7811(m)(5) · 103 Stat. 2106
Inserted · 26 U.S.C. § 414(p)(10)
Pub. L. 101–239, § 7811(m)(5), inserted “section” before “403(b)”
Source evidence
Code amendment note
Subsec. (p)(10). Pub. L. 101–239, § 7811(m)(5), inserted “section” before “403(b)”.
Enacted provision · exact public law section
(5) Paragraph (10) of section 414(p) is amended by inserting “section” before “403(b)”.
1989
Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7841(a)(2) · 103 Stat. 2106
1. Added · 26 U.S.C. § 414(p)(11)
  Pub. L. 101–239, § 7841(a)(2), added par. (11)
2. Redesignated · 26 U.S.C. § 414(p)(11)
  Pub. L. 101–239, § 7841(a)(2), redesignated former par. (11) as (12)
Source evidence
Code amendment note
Subsec. (p)(11). Pub. L. 101–239, § 7841(a)(2), added par. (11) and redesignated former par. (11) as (12).
Enacted provision · exact public law section
(2) Subsection (p) of section 414 is amended by redesignating paragraph (11) as paragraph (12) and by inserting after paragraph (10) the following new paragraph: “(11) Application of rules to governmental and church plans.— For purposes of this title, a distribution or payment from a governmental plan (as defined in subsection (d)) or a church plan (as described in subsection (e)) shall be treated as made pursuant to a qualified domestic relations order if it is made pursuant to a domestic relations order which meets the requirement of clause (i) of paragraph (1)(A).”
1989
Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7813(b) · 103 Stat. 2106
Amended · 26 U.S.C. § 414(t)(2)
Pub. L. 101–239, § 7813(b), amended directory language of Pub. L. 100–647, § 3011(b)(5), see 1988 Amendment note below
Source evidence
Code amendment note
Subsec. (t)(2). Pub. L. 101–239, § 7813(b), amended directory language of Pub. L. 100–647, § 3011(b)(5), see 1988 Amendment note below.
Enacted provision · exact public law section
(b) Amendments Related to Section 3011 of the 1988 Act.— Paragraphs (4) and (5) of section 3011(b) of the 1988 Act are each 26 USC 414. amended— (1) by striking “111B(a)” and inserting “1011B(a)”, and (2) by striking “162(k)(2)” and inserting “162(k)”.
1990
Revenue Reconciliation Act of 1990
Pub. L. 101–508 title XI § 11703(b)(1) · 104 Stat. 1388
Struck · 26 U.S.C. § 414(n)(2)(B)
Pub. L. 101–508 struck out “(6 months in the case of core health benefits)” after “1 year”
Source evidence
Code amendment note
Subsec. (n)(2)(B). Pub. L. 101–508 struck out “(6 months in the case of core health benefits)” after “1 year”.
Enacted provision · exact public law section
(1) In general.— Subparagraph (B) of section 414(n)(2) is amended by striking “(6 months in the case of core health benefits)”.
1992
Unemployment Compensation Amendments of 1992
Pub. L. 102–318 § 521(b)(20) · 106 Stat. 290
Substituted · 26 U.S.C. § 414(n)(5)(C)(iii)(I)
Pub. L. 102–318, § 521(b)(20), substituted “402(e)(3)” for “402(a)(8)”
Source evidence
Code amendment note
Subsec. (n)(5)(C)(iii)(I). Pub. L. 102–318, § 521(b)(20), substituted “402(e)(3)” for “402(a)(8)”.
Enacted provision · exact public law section
(20) Subclause (I) of section 414(n)(5)(C)(iii) is amended by 26 USC 414. striking “section 402(a)(8)” and inserting “section 402(e)(3)”.
1992
Unemployment Compensation Amendments of 1992
Pub. L. 102–318 § 521(b)(21) · 106 Stat. 290
Substituted · 26 U.S.C. § 414(q)(7)(B)(i)
Pub. L. 102–318, § 521(b)(21), substituted “402(e)(3)” for “402(a)(8)”
Source evidence
Code amendment note
Subsec. (q)(7)(B)(i). Pub. L. 102–318, § 521(b)(21), substituted “402(e)(3)” for “402(a)(8)”.
Enacted provision · exact public law section
(21) Clause (i) of section 414(q)(7)(B) is amended by striking “402(a)(8)” and inserting “402(e)(3)”.
1992
Unemployment Compensation Amendments of 1992
Pub. L. 102–318 § 521(b)(22) · 106 Stat. 290
Substituted · 26 U.S.C. § 414(s)(2)
Pub. L. 102–318, § 521(b)(22), substituted “402(e)(3)” for “402(a)(8)”
Source evidence
Code amendment note
Subsec. (s)(2). Pub. L. 102–318, § 521(b)(22), substituted “402(e)(3)” for “402(a)(8)”.
Enacted provision · exact public law section
(22) Paragraph (2) of section 414(s) (relating to employer may elect to treat certain deferrals as compensation) is amended by striking “402(a)(8)” and inserting “402(e)(3)”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1421(b)(9)(C) · 110 Stat. 1755
Inserted · 26 U.S.C. § 414(b); 26 U.S.C. § 414(c)
Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”
Source evidence
Code amendment note
Subsecs. (b), (c). Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”.
Enacted provision · exact public law section
(C) Subsections (b), (c), (m)(4)(B), and (n)(3)(B) of section 414 are each amended by inserting “408(p),” after “408(k),”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1461(a) · 110 Stat. 1755
Added · 26 U.S.C. § 414(e)(5)
Pub. L. 104–188, § 1461(a), added par. (5)
Source evidence
Code amendment note
Subsec. (e)(5). Pub. L. 104–188, § 1461(a), added par. (5).
Enacted provision · exact public law section
(a) In General.— Section 414(e) (defining church plan) is amended by adding at the end the following new paragraph: “(5) Special rules for chaplains and self-employed ministers.— “(A) Certain ministers may participate.— For purposes of this part— “(i) In general.— An employee of a church or a convention or association of churches shall include a duly ordained, commissioned, or licensed minister of a church who, in connection with the exercise of his or her ministry— “(I) is a self-employed individual (within the meaning of section 401(c)(1)(B)), or “(II) is employed by an organization other than an organization described in section 501(c)(3). “(ii) Treatment as employer and employee.— “(I) Self-employed.— A minister described in clause (i)(I) shall be treated as his or her own employer which is an organization described in section 501(c)(3) and which is exempt from tax under section 501(a). “(II) Others.— A minister described in clause (i)(II) shall be treated as employed by an organization described in section 501(c)(3) and exempt from tax under section 501(a). “(B) Special rules for applying section 403(b) to self-employed ministers.— In the case of a minister described in subparagraph (A)(i)(I)— “(i) the minister’s includible compensation under section 403(b)(3) shall be determined by reference to the minister’s earned income (within the meaning of section 401(c)(2)) from such ministry rather than the amount of compensation which is received from an employer, and “(ii) the years (and portions of years) in which such minister was a self-employed individual (within the meaning of section 401(c)(1)(B)) with respect to such ministry shall be included for purposes of section 403(b)(4). “(C) Effect on non-denominational plans.— If a duly ordained, commissioned, or licensed minister of a church in the exercise of his or her ministry participates in a church plan (within the meaning of this section) and in the exercise of such ministry is employed by an employer not eligible to participate in such church plan, then such employer may exclude such minister from being treated as an employee of such employer for purposes of applying sections 401(a)(3), 401(a)(4), and 401(a)(5), as in effect on September 1, 1974, and sections 401(a)(4), 401(a)(5), 401(a)(26), 401(k)(3), 401(m), 403(b)(1)(D) (including section 403(b)(12)), and 410 to any stock bonus, pension, profit-sharing, or annuity plan (including an annuity described in section 403(b) or a retirement income account described in section 403(b)(9)). The Secretary shall prescribe such Regulations. regulations as may be necessary or appropriate to carry out the purpose of, and prevent the abuse of, this subparagraph. “(D) Compensation taken into account only once.— If any compensation is taken into account in determining the amount of any contributions made to, or benefits to be provided under, any church plan, such compensation shall not also be taken into account in determining the amount of any contributions made to, or benefits to be provided under, any other stock bonus, pension, profit-sharing, or annuity plan which is not a church plan.”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1421(b)(9)(C) · 110 Stat. 1755
Inserted · 26 U.S.C. § 414(m)(4)(B)
Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”
Source evidence
Code amendment note
Subsec. (m)(4)(B). Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”.
Enacted provision · exact public law section
(C) Subsections (b), (c), (m)(4)(B), and (n)(3)(B) of section 414 are each amended by inserting “408(p),” after “408(k),”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1454(a) · 110 Stat. 1755
Amended · 26 U.S.C. § 414(n)(2)(C)
Pub. L. 104–188, § 1454(a), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “such services are of a type historically performed, in the business field of the recipient, by employees.”
Source evidence
Code amendment note
Subsec. (n)(2)(C). Pub. L. 104–188, § 1454(a), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “such services are of a type historically performed, in the business field of the recipient, by employees.”
Enacted provision · exact public law section
(a) General Rule.— Subparagraph (C) of section 414(n)(2) (defining leased employee) is amended to read as follows: “(C) such services are performed under primary direction or control by the recipient.”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1421(b)(9)(C) · 110 Stat. 1755
Inserted · 26 U.S.C. § 414(n)(3)(B)
Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”
Source evidence
Code amendment note
Subsec. (n)(3)(B). Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”.
Enacted provision · exact public law section
(C) Subsections (b), (c), (m)(4)(B), and (n)(3)(B) of section 414 are each amended by inserting “408(p),” after “408(k),”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1431(a) · 110 Stat. 1755
Amended · 26 U.S.C. § 414(q)(1)
Pub. L. 104–188, § 1431(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “In general.—The term ‘highly compensated employee’ means any employee who, during the year or the preceding year—
Source evidence
Code amendment note
Subsec. (q)(1). Pub. L. 104–188, § 1431(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “In general.—The term ‘highly compensated employee’ means any employee who, during the year or the preceding year—
“(A) was at any time a 5-percent owner, “(B) received compensation from the employer in excess of $75,000, “(C) received compensation from the employer in excess of $50,000 and was in the top-paid group of employees for such year, or “(D) was at any time an officer and received compensation greater than 50 percent of the amount in effect under section 415(b)(1)(A) for such year. The Secretary shall adjust the $75,000 and $50,000 amounts under this paragraph at the same time and in the same manner as under section 415(d).”
Enacted provision · exact public law section
(a) In General.— Paragraph (1) of section 414(q) (defining highly compensated employee) is amended to read as follows: “(1) In general.— The term ‘highly compensated employee’ means any employee who— “(A) was a 5-percent owner at any time during the year or the preceding year, or “(B) for the preceding year— “(i) had compensation from the employer in excess of $80,000, and “(ii) if the employer elects the application of this clause for such preceding year, was in the top-paid group of employees for such preceding year. The Secretary shall adjust the $80,000 amount under subparagraph (B) at the same time and in the same manner as under section 415(d), except that the base period shall be the calendar quarter ending September 30, 1996.”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1431(c)(1)(A) · 110 Stat. 1755
1. Redesignated · 26 U.S.C. § 414(q)(2); 26 U.S.C. § 414(q)(3)
  Pub. L. 104–188, § 1431(c)(1)(A), redesignated pars. (3) and (4) as (2) and (3), respectively
2. Struck · 26 U.S.C. § 414(q)(2); 26 U.S.C. § 414(q)(3)
  Pub. L. 104–188, § 1431(c)(1)(A), struck out former par. (2) which read as follows: “Special rule for current year.—In the case of the year for which the relevant determination is being made, an employee not described in subparagraph (B), (C), or (D) of paragraph (1) for the preceding year (without regard to this paragraph) shall not be treated as described in subparagraph (B), (C), or (D) of paragraph (1) unless such employee is a member of the group consisting of the 100 employees paid the greatest compensation during the year for which such determination is being made.”
Source evidence
Code amendment note
Subsec. (q)(2), (3). Pub. L. 104–188, § 1431(c)(1)(A), redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which read as follows: “Special rule for current year.—In the case of the year for which the relevant determination is being made, an employee not described in subparagraph (B), (C), or (D) of paragraph (1) for the preceding year (without regard to this paragraph) shall not be treated as described in subparagraph (B), (C), or (D) of paragraph (1) unless such employee is a member of the group consisting of the 100 employees paid the greatest compensation during the year for which such determination is being made.”
Enacted provision · exact public law section
(A) Subsection (q) of section 414 is amended by striking paragraphs (2), (5), and (12) and by redesignating paragraphs (3) , (4), (7), (8), (9), (10), and (11) as paragraphs (2) through (8), respectively.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1434(b)(1) · 110 Stat. 1755
Amended · 26 U.S.C. § 414(q)(4)
Pub. L. 104–188, § 1434(b)(1), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “For purposes of this subsection—
Source evidence
Code amendment note
Subsec. (q)(4). Pub. L. 104–188, § 1434(b)(1), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “For purposes of this subsection—
“(A) In general.—The term ‘compensation’ means compensation within the meaning of section 415(c)(3). “(B) Certain provisions not taken into account.—The determination under subparagraph (A) shall be made— “(i) without regard to sections 125, 402(e)(3), and 402(h)(1)(B), and “(ii) in the case of employer contributions made pursuant to a salary reduction agreement, without regard to section 403(b).”
Enacted provision · exact public law section
(1) Section 414(q)(4), as redesignated by section 1431, is amended to read as follows: “(4) Compensation.— For purposes of this subsection, the term ‘compensation’ has the meaning given such term by section 415(c)(3).”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1431(c)(1)(A) · 110 Stat. 1755
Redesignated · 26 U.S.C. § 414(q)(4)
Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (7) as (4)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (7) as (4).
Enacted provision · exact public law section
(A) Subsection (q) of section 414 is amended by striking paragraphs (2), (5), and (12) and by redesignating paragraphs (3) , (4), (7), (8), (9), (10), and (11) as paragraphs (2) through (8), respectively.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1434(c)(1)(E) · 110 Stat. 1755
1. Amended · 26 U.S.C. § 414(q)(5)
  Pub. L. 104–188, § 1434(c)(1)(E), as amended by Pub. L. 105–206, § 6018(c)
2. Struck · 26 U.S.C. § 414(q)(5)
  Pub. L. 104–188, § 1434(c)(1)(E), as struck out “under paragraph (4) or the number of officers taken into account under paragraph (5)” after “top-paid group” in introductory provisions
Source evidence
Code amendment note
Subsec. (q)(5). Pub. L. 104–188, § 1434(c)(1)(E), as amended by Pub. L. 105–206, § 6018(c), struck out “under paragraph (4) or the number of officers taken into account under paragraph (5)” after “top-paid group” in introductory provisions.
Enacted provision · exact public law section
(c) Effective Date.— The amendments made by this section shall apply to years beginning after December 31, 1997.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1431(c)(1)(A) · 110 Stat. 1755
1. Redesignated · 26 U.S.C. § 414(q)(5)
  Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (8) as (5)
2. Struck · 26 U.S.C. § 414(q)(5)
  Pub. L. 104–188, § 1431(c)(1)(A), struck out former par. (5) which read as follows: “Special rules for treatment of officers.—
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (8) as (5) and struck out former par. (5) which read as follows: “Special rules for treatment of officers.—
“(A) Not more than 50 officers taken into account.—For purposes of paragraph (1)(D), no more than 50 employees (or, if lesser, the greater of 3 employees or 10 percent of the employees) shall be treated as officers. “(B) At least 1 officer taken into account.—If for any year no officer of the employer is described in paragraph (1)(D), the highest paid officer of the employer for such year shall be treated as described in such paragraph.”
Enacted provision · exact public law section
(A) Subsection (q) of section 414 is amended by striking paragraphs (2), (5), and (12) and by redesignating paragraphs (3) , (4), (7), (8), (9), (10), and (11) as paragraphs (2) through (8), respectively.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1431(b)(1) · 110 Stat. 1755
1. Redesignated · 26 U.S.C. § 414(q)(6)
  Pub. L. 104–188, § 1431(b)(1), (c)(1)(A), redesignated par. (9) as (6)
2. Struck · 26 U.S.C. § 414(q)(6)
  Pub. L. 104–188, § 1431(b)(1), (c)(1)(A), struck out former par. (6) which related to treatment of families of 5-percent owners or of highly compensated employees
Source evidence
Code amendment note
Subsec. (q)(6). Pub. L. 104–188, § 1431(b)(1), (c)(1)(A), redesignated par. (9) as (6) and struck out former par. (6) which related to treatment of families of 5-percent owners or of highly compensated employees.
Enacted provision · exact public law section
(1) In general.— Paragraph (6) of section 414(q) is hereby repealed.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1462(a) · 110 Stat. 1755
Added · 26 U.S.C. § 414(q)(7)
Pub. L. 104–188, § 1462(a), added par. (7) relating to certain employees not considered highly compensated and excluded employees under pre-ERISA rules for church plans
Source evidence
Code amendment note
Subsec. (q)(7). Pub. L. 104–188, § 1462(a), added par. (7) relating to certain employees not considered highly compensated and excluded employees under pre-ERISA rules for church plans.
Enacted provision · exact public law section
(a) In General.— Section 414(q) (defining highly compensated employee), as amended by section 1431(c)(1)(A) of this Act, is amended by adding at the end the following new paragraph: “(7) Certain employees not considered highly compensated and excluded employees under preerisa rules for church plans.— In the case of a church plan (as defined in subsection (e)), no employee shall be considered an officer, a person whose principal duties consist of supervising the work of other employees, or a highly compensated employee for any year unless such employee is a highly compensated employee under paragraph (1) for such year.”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1431(c)(1)(A) · 110 Stat. 1755
Redesignated · 26 U.S.C. § 414(q)(7)
Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (10), relating to coordination with other provisions, as (7). Former par. (7) redesignated (4)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (10), relating to coordination with other provisions, as (7). Former par. (7) redesignated (4).
Enacted provision · exact public law section
(A) Subsection (q) of section 414 is amended by striking paragraphs (2), (5), and (12) and by redesignating paragraphs (3) , (4), (7), (8), (9), (10), and (11) as paragraphs (2) through (8), respectively.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1431(c)(1)(A) · 110 Stat. 1755
1. Redesignated · 26 U.S.C. § 414(q)(8)(12)
  Pub. L. 104–188, § 1431(c)(1)(A), redesignated pars. (8) to (11) as (5) to (8), respectively
2. Struck · 26 U.S.C. § 414(q)(8)(12)
  Pub. L. 104–188, § 1431(c)(1)(A), struck out par. (12) which related to simplified method for determining highly compensated employees
Source evidence
Code amendment note
Subsec. (q)(8) to (12). Pub. L. 104–188, § 1431(c)(1)(A), redesignated pars. (8) to (11) as (5) to (8), respectively, and struck out par. (12) which related to simplified method for determining highly compensated employees.
Enacted provision · exact public law section
(A) Subsection (q) of section 414 is amended by striking paragraphs (2), (5), and (12) and by redesignating paragraphs (3) , (4), (7), (8), (9), (10), and (11) as paragraphs (2) through (8), respectively.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1431(c)(1)(D) · 110 Stat. 1755
Substituted · 26 U.S.C. § 414(r)(2)(A)
Pub. L. 104–188, § 1431(c)(1)(D), substituted “subsection (q)(5)” for “subsection (q)(8)”
Source evidence
Code amendment note
Subsec. (r)(2)(A). Pub. L. 104–188, § 1431(c)(1)(D), substituted “subsection (q)(5)” for “subsection (q)(8)”.
Enacted provision · exact public law section
(D) Subparagraph (A) of section 414(r)(2) is amended by striking “subsection (q)(8)” and inserting “subsection (q)(5)”.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1434(b)(2) · 110 Stat. 1755
Inserted · 26 U.S.C. § 414(s)(2)
Pub. L. 104–188, § 1434(b)(2), inserted “not” after “elect” in heading and in text
Source evidence
Code amendment note
Subsec. (s)(2). Pub. L. 104–188, § 1434(b)(2), inserted “not” after “elect” in heading and in text.
Enacted provision · exact public law section
(2) Section 414(s)(2) is amended by inserting “not” after “elect” in the text and heading thereof.
1996
Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1704(n)(1) · 110 Stat. 1755
Added · 26 U.S.C. § 414(u)
Pub. L. 104–188, § 1704(n)(1), added subsec. (u)
Source evidence
Code amendment note
Subsec. (u). Pub. L. 104–188, § 1704(n)(1), added subsec. (u).
Enacted provision · exact public law section
(1) In general.— Section 414 is amended by adding at the end the following new subsection: “(u) Special Rules Relating to Veterans’ Reemployment Rights Under USERRA.— “(1) Treatment of certain contributions made pursuant to veterans’ reemployment rights.— if any contribution is made by an employer or an employee under an individual account plan with respect to an employee, or by an employee to a defined benefit plan that provides for employee contributions, and such contribution is required by reason of such employee’s rights under chapter 43 of title 38, United States Code, resulting from qualified military service, then— “(A) such contribution shall not be subject to any otherwise applicable limitation contained in section 402(g), 402(h), 403(b), 404(a), 404(h), 408, 415, or 457, and shall not be taken into account in applying such limitations to other contributions or benefits under such plan or any other plan, with respect to the year in which the contribution is made, “(B) such contribution shall be subject to the limitations referred to in subparagraph (A) with respect to the year to which the contribution relates (in accordance with rules prescribed by the Secretary), and “(C) such plan shall not be treated as failing to meet the requirements of section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k.)(12), 401(m), 403(b)(12), 408(k)(3), 408(k)(6), 408(p), 410(b), or 416 by reason of the making of (or the right to make) such contribution. For purposes of the preceding sentence, any elective deferral or employee contribution made under paragraph (2) shall be treated as required by reason of the employee’s rights under such chapter 43. “(2) Reemployment rights under userra with respect to elective deferrals.— “(A) In general.— For purposes of this subchapter and section 457, if an employee is entitled to the benefits of chapter 43 of title 38, United States Code, with respect to any plan which provides for elective deferrals, the employer sponsoring the plan shall be treated as meeting the requirements of such chapter 43 with respect to such elective deferrals only if such employer— “(i) permits such employee to make additional elective deferrals under such plan (in the amount determined under subparagraph (B) or such lesser amount as is elected by the employee) during the period which begins on the date of the reemployment of such employee with such employer and has the same length as the lesser of— “(I) the product of 3 and the period of qualified military service which resulted in such rights, and “(II) 5 years, and “(ii) makes a matching contribution with respect to any additional elective deferral made pursuant to clause (i) which would have been required had such deferral actually been made during the period of such qualified military service. “(B) Amount of makeup required.— The amount determined under this subparagraph with respect to any plan is the maximum amount of the elective deferrals that the individual would have been permitted to make under the plan in accordance with the limitations referred to in paragraph (1)(A) during the period of qualified military service if the individual had continued to be employed by the employer during such period and received compensation as determined under paragraph (7). Proper adjustment shall be made to the amount determined under the preceding sentence for any elective deferrals actually made during the period of such qualified military service. “(C) Elective deferral.— For purposes of this paragraph, the term ‘elective deferral’ has the meaning given such term by section 402(g)(3); except that such term shall include any deferral of compensation under an eligible deferred compensation plan (as defined in section 457(b)). “(D) After-tax employee contributions.— References in subparagraphs (A) and (B) to elective deferrals shall be treated as including references to employee contributions. “(3) Certain retroactive adjustments not required.— For purposes of this subchapter and subchapter E, no provision of chapter 43 of title 38, United States Code, shall be construed as requiring— “(A) any crediting of earnings to an employee with respect to any contribution before such contribution is actually made, or “(B) any allocation of any forfeiture with respect to the period of qualified military service. “(4) Loan repayment suspensions permitted.— If any plan suspends the obligation to repay any loan made to an employee from such plan for any part of any period during which such employee is performing service in the uniformed services (as defined in chapter 43 of title 38, United States Code), whether or not qualified military service, such suspension shall not be taken into account for purposes of section 72(p), 401(a). or 4975(d)(1). “(5) Qualified military service.— For purposes of this subsection, the term ‘qualified military service’ means any service in the uniformed services (as defined in chapter 43 of title 38, United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service. “(6) Individual account plan.— For purposes of this subsection, the term ‘individual account plan’ means any defined contribution plan (including any tax-sheltered annuity plan under section 403(b), any simplified employee pension under section 408(k), any qualified salary reduction arrangement under section 408(p), and any eligible deferred compensation plan (as defined in section 457(b)). “(7) Compensation.— For purposes of sections 403(b)(3), 415(c)(3), and 457(e)(5), an employee who is in qualified military service shall be treated as receiving compensation from the employer during such period of qualified military service equal to— “(A) the compensation the employee would have received during such period if the employee were not in qualified military service, determined based on the rate of pay the employee would have received from the employer but for absence during the period of qualified military service, or “(B) if the compensation the employee would have received during such period was not reasonably certain, the employee’s average compensation from the employer during the 12-month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service). “(8) USERRA requirements for qualified retirement plans.— For purposes of this subchapter and section 457, an employer sponsoring a retirement plan shall be treated as meeting the requirements of chapter 43 of title 38, United States Code, only if each of the following requirements is met: “(A) An individual reemployed under such chapter is treated with respect to such plan as not having incurred a break in service with the employer maintaining the plan by reason of such individual’s period of qualified military service. “(B) Each period of qualified military service served by an individual is, upon reemployment under such chapter, deemed with respect to such plan to constitute service with the employer maintaining the plan for the purpose of determining the nonforfeitability of the individual’s accrued benefits under such plan and for the purpose of determining the accrual of benefits under such plan. “(C) An individual reemployed under such chapter is entitled to accrued benefits that are contingent on the making of, or derived from, employee contributions or elective deferrals only to the extent the individual makes payment to the plan with respect to such contributions or deferrals. No such payment may exceed the amount the individual would have been permitted or required to contribute had the individual remained continuously employed by the employer throughout the period of qualified military service. Any payment to such plan shall be made during the period beginning with the date of reemployment and whose duration is 3 times the period of the qualified military service (but not greater than 5 years). “(9) Plans not subject to title 38.— This subsection shall not apply to any retirement plan to which chapter 43 of title 38, United States Code, does not apply. “(10) References.— For purposes of this section, any reference to chapter 43 of title 38, United States Code, shall be treated as a reference to such chapter as in effect on December 12, 1994 (without regard to any subsequent amendment).”.
1997
Pub. L. 105–34 § 1601(d)(6)(A) · 111 Stat. 788
Amended · 26 U.S.C. § 414(e)(5)(A)
Pub. L. 105–34, § 1601(d)(6)(A), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “For purposes of this part—
Source evidence
Code amendment note
Subsec. (e)(5)(A). Pub. L. 105–34, § 1601(d)(6)(A), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “For purposes of this part—
“(i) In general.—An employee of a church or a convention or association of churches shall include a duly ordained, commissioned, or licensed minister of a church who, in connection with the exercise of his or her ministry— “(I) is a self-employed individual (within the meaning of section 401(c)(1)(B)), or “(II) is employed by an organization other than an organization described in section 501(c)(3). “(ii) Treatment as employer and employee.— “(I) Self-employed.—A minister described in clause (i)(I) shall be treated as his or her own employer which is an organization described in section 501(c)(3) and which is exempt from tax under section 501(a). “(II) Others.—A minister described in clause (i)(II) shall be treated as employed by an organization described in section 501(c)(3) and exempt from tax under section 501(a).”
Enacted provision · exact public law section
(A) Section 414(e)(5)(A) is amended to read as follows: “(A) Certain ministers may participate.— For purposes of this part— “(i) In general.— A duly ordained, commissioned, or licensed minister of a church is described in paragraph (3)(B) if, in connection with the exercise of their ministry, the minister— “(I) is a self-employed individual (within the meaning of section 401(c)(1)(B), or “(II) is employed by an organization other than an organization which is described in section 501(c)(3) and with respect to which the minister shares common religious bonds. “(ii) Treatment as employer and employee.— For purposes of sections 403(b)(1)(A) and 404(a)(10), a minister described in clause (i)(I) shall be treated as employed by the minister’s own employer which is an organization described in section 501(c)(3) and exempt from tax under section 501(a).”.
1997
Pub. L. 105–34 § 1522(a)(1) · 111 Stat. 788
Substituted · 26 U.S.C. § 414(e)(5)(C)
Pub. L. 105–34, § 1522(a)(1), substituted “not otherwise participating” for “not eligible to participate”
Source evidence
Code amendment note
Subsec. (e)(5)(C). Pub. L. 105–34, § 1522(a)(1), substituted “not otherwise participating” for “not eligible to participate”.
Enacted provision · exact public law section
(1) by striking “not eligible to participate” in subparagraph (C) and inserting “not otherwise participating”, and
1997
Pub. L. 105–34 § 1522(a)(2) · 111 Stat. 788
Added · 26 U.S.C. § 414(e)(5)(E)
Pub. L. 105–34, § 1522(a)(2), added subpar. (E)
Source evidence
Code amendment note
Subsec. (e)(5)(E). Pub. L. 105–34, § 1522(a)(2), added subpar. (E).
Enacted provision · exact public law section
(2) by adding at the end the following new subparagraph: “(E) Exclusion.— In the case of a contribution to a church plan made on behalf of a minister described in subparagraph (A)(i)(II), such contribution shall not be included in the gross income of the minister to the extent that such contribution would not be so included if the minister was an employee of a church.”.
1997
Pub. L. 105–34 § 1601(h)(2)(D)(i) · 111 Stat. 788
Inserted · 26 U.S.C. § 414(n)(3)(C)
Pub. L. 105–34, § 1601(h)(2)(D)(i), inserted “137,” after “132,”
Source evidence
Code amendment note
Subsec. (n)(3)(C). Pub. L. 105–34, § 1601(h)(2)(D)(i), inserted “137,” after “132,”.
Enacted provision · exact public law section
(i) Subparagraph (C) of section 414(n)(3) is amended by inserting “137,” after “132,”.
1997
Pub. L. 105–34 § 1601(d)(7) · 111 Stat. 788
Redesignated · 26 U.S.C. § 414(q)(7); 26 U.S.C. § 414(q)(9)
Pub. L. 105–34, § 1601(d)(7), redesignated par. (7), relating to certain employees not considered highly compensated and excluded employees under pre-ERISA rules for church plans, as (9)
Source evidence
Code amendment note
Subsec. (q)(7), (9). Pub. L. 105–34, § 1601(d)(7), redesignated par. (7), relating to certain employees not considered highly compensated and excluded employees under pre-ERISA rules for church plans, as (9).
Enacted provision · exact public law section
(7) Amendment related to section 1462.— The paragraph (7) of section 414(q) added by section 1462 of the Small Business Job Protection Act of 1996 is redesignated as paragraph (9). (e) Amendment Related to Subtitle E.—Subparagraph (A) of section 956(b)(1) is amended by inserting “to the extent such amount was accumulated in prior taxable years” after “section 316(a)(1)”.
1997
Pub. L. 105–34 § 1601(h)(2)(D)(ii) · 111 Stat. 788
Inserted · 26 U.S.C. § 414(t)(2)
Pub. L. 105–34, § 1601(h)(2)(D)(ii), inserted “137,” after “132,”
Source evidence
Code amendment note
Subsec. (t)(2). Pub. L. 105–34, § 1601(h)(2)(D)(ii), inserted “137,” after “132,”.
Enacted provision · exact public law section
(ii) Paragraph (2) of section 414(t) is amended by inserting “137,” after “132”.
1998
Internal Revenue Service Restructuring and Reform Act of 1998
Pub. L. 105–206 title VI § 6018(c) · 112 Stat. 685
Changed · 26 U.S.C. § 414(q)(5)
Pub. L. 105–206 made technical amendment to Pub. L. 104–188, § 1434(c)(1)(E). See 1996 Amendment note below
Source evidence
Code amendment note
Subsec. (q)(5). Pub. L. 105–206 made technical amendment to Pub. L. 104–188, § 1434(c)(1)(E). See 1996 Amendment note below.
Enacted provision · exact public law section
(c) Amendment Related to Section 1431.— Subparagraph (E)of section 1431(c)(1) of the Small Business Job Protection Act of 26 USC 414 1996 is amended to read as follows: “(E) .— Section 414(q)(5), as redesignated by subparagraph(A), is amended by striking ‘under paragraph (4) or the number of officers taken into account under paragraph (5)’”.
2000
Consolidated Appropriations Act, 2001
Pub. L. 106–554 § 1(a)(7)(tIII)(s314)(e)(2) · 114 Stat. 2763
Substituted · 26 U.S.C. § 414(s)(2)
Pub. L. 106–554 substituted “section 125, 132(f)(4), 402(e)(3)” for “section 125, 402(e)(3)”
Source evidence
Code amendment note
Subsec. (s)(2). Pub. L. 106–554 substituted “section 125, 132(f)(4), 402(e)(3)” for “section 125, 402(e)(3)”.
Enacted provision · exact public law section
(7) H.R. 5662, as introduced on December 14, 2000.
2001
Pub. L. 107–16 § 635(b) · 115 Stat. 38
Substituted · 26 U.S.C. § 414(p)(10)
Pub. L. 107–16, § 635(b), substituted “section 409(d), and section 457(d)” for “and section 409(d)”
Source evidence
Code amendment note
Subsec. (p)(10). Pub. L. 107–16, § 635(b), substituted “section 409(d), and section 457(d)” for “and section 409(d)”.
Enacted provision · exact public law section
(b) Waiver of Certain Distribution Requirements.— Paragraph (10) of section 414(p) is amended by striking “and section 409(d)” and inserting “section 409(d), and section 457(d)”.
2001
Pub. L. 107–16 § 635(a) · 115 Stat. 38
Substituted · 26 U.S.C. § 414(p)(11)
Pub. L. 107–16, § 635(a), in heading substituted “certain other plans” for “governmental and church plans” and in text inserted “or an eligible deferred compensation plan (within the meaning of section 457(b))” after “subsection (e))”
Source evidence
Code amendment note
Subsec. (p)(11). Pub. L. 107–16, § 635(a), in heading substituted “certain other plans” for “governmental and church plans” and in text inserted “or an eligible deferred compensation plan (within the meaning of section 457(b))” after “subsection (e))”.
Enacted provision · exact public law section
(a) In general.— Section 414(p)(11) (relating to application 26 USC 414. of rules to governmental and church plans ) is amended— (1) by inserting “or an eligible deferred compensation plan (within the meaning of section 457(b))” after “subsection (e))”; and (2) in the heading, by striking “governmental and church plans” and inserting “certain other plans”.
2001
Pub. L. 107–16 § 635(c) · 115 Stat. 38
1. Added · 26 U.S.C. § 414(p)(12); 26 U.S.C. § 414(p)(13)
  Pub. L. 107–16, § 635(c), added par. (12)
2. Redesignated · 26 U.S.C. § 414(p)(12); 26 U.S.C. § 414(p)(13)
  Pub. L. 107–16, § 635(c), redesignated former par. (12) as (13)
Source evidence
Code amendment note
Subsec. (p)(12), (13). Pub. L. 107–16, § 635(c), added par. (12) and redesignated former par. (12) as (13).
Enacted provision · exact public law section
(c) Tax Treatment of Payments From a Section 457 Plan.— Subsection (p) of section 414 is amended by redesignating paragraph (12) as paragraph (13) and inserting after paragraph (11) the following new paragraph; “(12) Tax treatment of payments from a section 457 plan.— If a distribution or payment from an eligible deferred compensation plan described in section 457(b) is made pursuant to a qualified domestic relations order, rules similar to the rules of section 402(e)(1)(A) shall apply to such distribution or payment.”.
2001
Pub. L. 107–16 § 631(a) · 115 Stat. 38
Added · 26 U.S.C. § 414(v)
Pub. L. 107–16, § 631(a), added subsec. (v)
Source evidence
Code amendment note
Subsec. (v). Pub. L. 107–16, § 631(a), added subsec. (v).
Enacted provision · exact public law section
(a) In General.— Section 414 (relating to definitions and special rules) is amended by adding at the end the following new subsection: “(v) Catch-Up Contributions for Individuals Age 50 or Over.— “(1) In general.— An applicable employer plan shall not be treated as failing to meet any requirement of this title solely because the plan permits an eligible participant to make additional elective deferrals in any plan year. “(2) Limitation on amount of additional deferrals.— “(A) In general.— A plan shall not permit additional elective deferrals under paragraph (1) for any year in an amount greater than the lesser of— “(i) the applicable dollar amount, or “(ii) the excess (if any) of— “(I) the participant’s compensation (as defined in section 415(c)(3)) for the year, over “(II) any other elective deferrals of the participant for such year which are made without regard to this subsection. “(B) Applicable dollar amount.— For purposes of this paragraph— “(i) In the case of an applicable employer plan other than a plan described in section 401(k)(11) or 408(p), the applicable dollar amount shall be determined in accordance with the following table: “For taxable year beginning in: The applicable dollar amount is: 2002 $1,000 2003 $2,000 2004 $3,000 2005 $4,000 2006 and thereafter $5,000. “(ii) In the case of an applicable employer plan described in section 401(k)(11) or 408(p), the applicable dollar amount shall be determined in accordance with the following table: “For taxable year beginning in: The applicable dollar amount is: 2002 $500 2003 $1,000 2004 $1,500 2005 $2,000 2006 and thereafter $2,500. “(C) Cost-of-living adjustment.— In the case of a year beginning after December 31, 2006, the Secretary shall adjust annually the $5,000 amount in subparagraph (B)(i) and the $2,500 amount in subparagraph (B)(ii) for increases in the cost-of-living at the same time and in the same manner as adjustments under section 415(d); except that the base period taken into account shall be the calendar quarter beginning July 1, 2005, and any increase under this subparagraph which is not a multiple of $500 shall be rounded to the next lower multiple of $500.”. “(3) Treatment of contributions.— In the case of any contribution to a plan under paragraph (1)— “(A) such contribution shall not, with respect to the year in which the contribution is made— “(i) be subject to any otherwise applicable limitation contained in section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457, or “(ii) be taken into account in applying such limitations to other contributions or benefits under such plan or any other such plan, and “(B) except as provided in paragraph (4), such plan shall not be treated as failing to meet the requirements of section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416 by reason of the making of (or the right to make) such contribution. “(4) Application of nondiscrimination rules.— “(A) In general.— An applicable employer plan shall be treated as failing to meet the nondiscrimination requirements under section 401(a)(4) with respect to benefits, rights, and features unless the plan allows all eligible participants to make the same election with respect to the additional elective deferrals under this subsection. “(B) Aggregation.— For purposes of subparagraph (A), all plans maintained by employers who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 plan. “(5) Eligible participant.— For purposes of this subsection, the term ‘eligible participant’ means, with respect to any plan year, a participant in a plan— “(A) who has attained the age of 50 before the close of the plan year, and “(B) with respect to whom no other elective deferrals may (without regard to this subsection) be made to the plan for the plan year by reason of the application of any limitation or other restriction described in paragraph (3) or comparable limitation or restriction contained in the terms of the plan. “(6) Other definitions and rules.— For purposes of this subsection— “(A) Applicable employer plan.— The term ‘applicable employer plan’ means— “(i) an employees’ trust described in section 401(a) which is exempt from tax under section 501(a), “(ii) a plan under which amounts are contributed by an individual’s employer for an annuity contract described in section 403(b), “(iii) an eligible deferred compensation plan under section 457 of an eligible employer described in section 457(e)(1)(A), and “(iv) an arrangement meeting the requirements of section 408 (k) or (p). “(B) Elective deferral.— The term ‘elective deferral’ has the meaning given such term by subsection (u)(2)(C). “(C) Exception for section 457 plans.— This subsection shall not apply to an applicable employer plan described in subparagraph (A)(iii) for any year to which section 457(b)(3) applies.”.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411 · 116 Stat. 21
Added · 26 U.S.C. § 414(v)(2)(D)
Pub. L. 107–147, § 411(o)(3), added subpar. (D)
Source evidence
Code amendment note
Subsec. (v)(2)(D). Pub. L. 107–147, § 411(o)(3), added subpar. (D).
Enacted provision · exact public law section
SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001. (a) Amendments Related to Section 101 of the Act.— (1) In general.— Subsection (b) of section 6428 is amended to read as follows: “(b) Credit Treated as Nonrefundable Personal Credit.— For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.”. (2) Conforming amendments.— “(A) Subsection (d) of section 6428 is amended to read as follows: “(d) Coordination with Advance Refunds of Credit.— “(1) In general.— The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). “(2) Joint returns.— In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.”. (B) Paragraph (2) of section 6428(e) is amended to read as follows: “(2) Advance refund amount.— For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if— “(A) this section (other than subsections (b) and (d) and this subsection) had applied to such taxable year, and “(B) the credit for such taxable year were not allowed to exceed the excess (if any) of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).”. (b) Amendment Related to Section 201 of the Act..— Subparagraph (B) of section 24(d)(1) is amended by striking 26 USC 24. “amount of credit allowed by this section” and inserting “aggregate amount of credits allowed by this subpart”. (c) Amendments Related to Section 202 of the Act.— (1) Corrections to credit for adoption expenses.— (A) Paragraph (1) of section 23(a) is amended to read as follows: “(1) In general.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.”. (B) Subsection (a) of section 23 is amended by adding at the end the following new paragraph: “(3) $10,000 credit for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.”. (C) Paragraph (2) of section 23(a) is amended by striking the last sentence. (D) Paragraph (1) of section 23(b) is amended by striking “subsection (a)(1)(A)” and inserting “subsection (a)”. (E) Subsection (i) of section 23 is amended by striking “the dollar limitation in subsection (b)(1)” and inserting “the dollar amounts in subsections (a)(3) and (b)(1)”. (F) Expenses paid or incurred during any taxable year 26 USC 23 note. , beginning before January 1, 2002, may be taken into account in determining the credit under section 23 of the Internal Revenue Code of 1986 only to the extent the aggregate of such expenses does not exceed the applicable limitation under section 23(b)(1) of such Code as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001. (2) Corrections to exclusion for employer-provided adoption assistance.— (A) Subsection (a) of section 137 is amended to read as follows: “(a) Exclusion.— “(1) In general.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program. “(2) $10,000 exclusion for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the qualified adoption expenses with respect to such adoption for such year shall be increased by an amount equal to the excess (if any) of $10,000 over the actual aggregate qualified adoption expenses with respect to such adoption during such taxable year and all prior taxable years.”. (B) Paragraph (2) of section 137(b) is amended by striking “subsection (a)(1)” and inserting “subsection (a)”. (3) Effective date.— The amendments made by this subsection 26 USC 23 note. shall apply to taxable years beginning after December 31, 2002; except that the amendments made by paragraphs (1)(C), (1)(D), and (2)(B) shall apply to taxable years beginning after December 31, 2001. (d) Amendments Related to Section 205 of the Act.— (1) Section 45F(d)(4)(B) is amended by striking “subpart A, B, or D of this part” and inserting “this chapter or for purposes of section 55”. (2) Section 38(b)(15) is amended by striking “45F” and inserting “45F(a)”. (e) Amendments Related to Section 301 of the Act.— (1) Section 63(c)(2) is amended— (A) in subparagraph (A), by striking “subparagraph (C)” and inserting “subparagraph (D)”, (B) by striking “or” at the end of subparagraph (B), (C) by redesignating subparagraph (C) as subparagraph (D), (D) by inserting after subparagraph (B) the following new subparagraph: “(C) one-half of the amount in effect under subparagraph (A) in the case of a married individual filing a separate return, or”, and (E) by inserting the following flush sentence at the end: “If any amount determined under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.”. (2) (A) Section 63(c)(4) is amended by striking “paragraph (2) or (5)” and inserting “paragraph (2)(B), (2)(1)), or (5)”. (B) Section 63(c)(4)(B)(i) is amended by striking “paragraph (2)” and inserting “paragraph (2)(B), (2)(D),”. (C) Section 63(c)(4) is amended by striking the flush sentence at the end (as added by section 301(c)(2) of Public Law 107-17). (f) Amendment Related to Section 401 of the Act.— Section 530(d)(4)(B)(iv) is amended by striking “because the taxpayer elected under paragraph (2)(C) to waive the application of paragraph (2)” and inserting “by application of paragraph (2)(C)(i)(II)”. (g) Amendments Related to Section 511 of the Act.— (1) Section 2511(c) is amended by striking “taxable gift under section 2503,” and inserting “transfer of property by gift,”. (2) Section 2101(b) is amended by striking the last sentence, (h) Amendment Related to Section 532 of the Act.— Section 2016 is amended by striking “any State, any possession of the United States, or the District of Columbia,”. (i) Amendments Relating to Section 602 of the Act.— (1) Subparagraph (A) of section 408(q)(3) is amended to read as follows: “(A) Qualified employer plan.— The term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”. (2) Section 4(c) of Employee Retirement Income Security Act of 1974 is amended— 29 USC 1003. (A) by inserting “and part 5 (relating to administration and enforcement)” before the period at the end, and (B) by adding at the end the following new sentence: “Such provisions shall apply to such accounts and annuities Applicability. in a manner similar to their application to a simplified employee pension under section 408(k) of the Internal Revenue Code of 1986.”. (j) Amendments Relating to Section 611 of the Act.— (1) Section 408(k) is amended— 26 USC 408. (A) in paragraph (2)(C) by striking “$300” and inserting “$450”, and (B) in paragraph (8) by striking “$300” both places it appears and inserting “$450”. (2) Section 409(o)(1)(C)(ii) is amended— (A) by striking “$500,000” both places it appears and inserting “$800,000”, and (B) by striking “$100,000” and inserting “$160,000”. (3) Section 611(i) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by adding at the end 26 USC 415 note. the following new paragraph: “(3) Special rule.— In the case of plan that, on June 7, 2001, incorporated by reference the limitation of section 415(b)(1)(A) of the Internal Revenue Code of 1986, section 411(d)(6) of such Code and section 204(g)(1) of the Employee Retirement Income Security Act of 1974 do not apply to a plan amendment that— “(A) is adopted on or before June 30, 2002, “(B) reduces benefits to the level that would have applied without regard to the amendments made by subsection (a) of this section, and “(C) is effective no earlier than the years described in paragraph (2).”. (k) Amendments Relating to Section 613 of the Act.— (1) Section 416(c)(1)(C)(iii) is amended by striking “Exception for frozen plan” and inserting “exception for plan under which no key employee (or former key employee) benefits for plan year”. (2) Section 416(g)(3)(B) is amended by striking “separation from service” and inserting “severance from employment”. (l) Amendments Relating to Sections 614 and 616 of the Act.— (1) Section 404(a)(12) is amended by striking “(9),” and inserting “(9) and subsection (h)(1)(C),”. (2) Section 404(n) is amended by striking “subsection (a),” and inserting “subsection (a) or paragraph (1)(C) of subsection (h)”. (3) Section 402(h)(2)(A) is amended by striking “15 percent” and inserting “25 percent”. (4) Section 404(a)(7)(C) is amended to read as follows: “(C) Paragraph not to apply in certain cases.— “(i) Beneficiary test.— This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than 1 trust or under a trust and an annuity plan. “(ii) Elective deferrals.— If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.”. (m) Amendment Relating to Section 618 of the Act.— 26 USC 25B. Section 25B(d)(2)(A) is amended to read as follows: “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”. (n) Amendments Relating to Section 619 of the Act.— (1) Section 45E(e)(1) is amended by striking “(n)” and inserting “(m)”. (2) Section 619(d) of the Economic Growth and Tax Relief 26 USC 38 note. Reconciliation Act of 2001 is amended by striking “established” and inserting “first effective”. (o) Amendments Relating to Section 631 of the Act.— (1) Section 402(g)(1) is amended by adding at the end the following: “(C) Catch-up contributions.— In addition to subparagraph (A), in the case of an eligible participant (as defined in section 414(v)), gross income shall not include elective deferrals in excess of the applicable dollar amount under subparagraph (B) to the extent that the amount of such elective deferrals does not exceed the applicable dollar amount under section 414(v)(2)(B)(i) for the taxable year (without regard to the treatment of the elective deferrals by an applicable employer plan under section 414(v)).”. (2) Section 401(a)(30) is amended by striking “402(g)(1)” and inserting “402(g)(1)(A)”. (3) Section 414(v)(2) is amended by adding at the end the following: “(D) Aggregation of plans.— For purposes of this paragraph, plans described in clauses (i), (ii), and (iv) of paragraph (6)(A) that are maintained by the same employer (as determined under subsection (b), (c), (m) or (o)) shall be treated as a single plan, and plans described in clause (iii) of paragraph (6)(A) that are maintained by the same employer shall be treated as a single plan.”. (4) Section 414(v)(3)(A)(i) is amended by striking “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457” and inserting “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))”. (5) Section 414(v)(3)(B) is amended by striking “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416” and inserting “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416”. (6) Section 414(v)(4)(B) is amended by inserting before 26 USC 414. the period at the end the following: “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”. (7) Section 414(v)(5) is amended— (A) by striking “, with respect to any plan year,” in the matter preceding subparagraph (A), (B) by amending subparagraph (A) to read as follows: “(A) who would attain age 50 by the end of the taxable year,”, and (C) in subparagraph (B) by striking “plan year” and inserting “plan (or other applicable) year”. (8) Section 414(v)(6)(C) is amended to read as follows: “(C) Exception for section 457 plans.—This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).”. (9) Section 457(e) is amended by adding at the end the following new paragraph: “(18) Coordination with catch-up contributions for individuals age 50 or older.— In the case of an individual who is an eligible participant (as defined by section 414(v)) and who is a participant in an eligible deferred compensation plan of an employer described in paragraph (I)(A), subsections (b)(3) and (c) shall be applied by substituting for the amount otherwise determined under the applicable subsection the greater of— “(A) the sum of— “(i) the plan ceiling established for purposes of subsection (b)(2) (without regard to subsection (b)(3)), plus “(ii) the applicable dollar amount for the taxable year determined under section 414(v)(2)(B)(i), or “(B) the amount determined under the applicable subsection (without regard to this paragraph).”. (p) Amendments Relating to Section 632 of the Act.— (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.”. (2) Section 403(b) is amended by striking paragraph (6). (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”. (4) Section 415(c)(7) is amended to read as follows: “(7) Special rules relating to church plans.— “(A) Alternative contribution limitation.— “(i) In general.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. “(ii) $40,000 aggregate limitation.— The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. “(B) Number of years of service for duly ordained, commissioned, or licensed ministers or lay employees.— For purposes of this paragraph— “(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. “(C) Foreign missionaries.— In the case of any individual described in subparagraph (D) performing services outside the United States, contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such employee, when expressed as an annual addition to such employee's account, shall not be treated as exceeding the limitation of paragraph (1) if such annual addition is not in excess of the greater of $3,000 or the employee's includible compensation determined under section 403(b)(3). “(D) Annual addition.— For purposes of this paragraph, the term ‘annual addition’ has the meaning given such term by paragraph (2). “(E) Church, convention or association of churches.— For purposes of this paragraph, the terms ‘church’ and ‘convention or association of churches’ have the same meaning as when used in section 414(e).”. (5) Section 457(e)(5) is amended to read as follows: 26 USC 457. “(5) Includible compensation.— The term ‘includible compensation’ has the meaning given to the term ‘participant's compensation’ by section 415(c)(3).”. (6) Section 402(g)(7)(B) is amended by striking “2001.” and inserting “2001).”. (q) Amendments Relating to Section 643 of the Act.— (1) Section 401(a)(31)(C)(i) is amended by inserting “is a qualified trust which is part of a plan which is a defined contribution plan and” before “agrees”. (2) Section 402(c)(2) is amended by adding at the end the following flush sentence: “In the case of a transfer described in subparagraph (A) or (B), the amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).”. (r) Amendments Relating to Section 648 of the Act.— (1) Section 417(e) is amended— (A) in paragraph (1) by striking “exceed the dollar limit under section 411(a)(11)(A)” and inserting “exceed the amount that can be distributed without the participant's consent under section 411(a)(11)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 411(a)(11)(A)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 411(a)(11)”. (2) Section 205(g) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1055. (A) in paragraph (1) by striking “exceed the dollar limit under section 203(e)(1)” and inserting “exceed the amount that can be distributed without the participant's consent under section 203(e)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 203(e)(1)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 203(e)”. (s) Amendment Relating to Section 652 of the Act.— Section 404(a)(1)(D)(iv) is amended by striking “Plans maintained by professional service employers” and inserting “Special rule for terminating plans”. (t) Amendments Relating to Section 657 of the Act.— Section 404(c)(3) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1104. (1) by striking “the earlier of” in subparagraph (A) the second place it appears, and (2) by striking “if the transfer” and inserting “a transfer that”. (u) Amendments Relating to Section 659 of the Act.— (1) Section 4980F is amended— (A) in subsection (e)(1) by striking “written notice” and inserting “the notice described in paragraph (2)”, (B) by amending subsection (f)(2)(A) to read as follows: “(A) any defined benefit plan described in section 401(a) which includes a trust exempt from tax under section 501(a), or”, and (C) in subsection (f)(3) by striking “significantly” both places it appears. (2) Section 204(h)(9) of the Employee Retirement Income Security Act of 1974 is amended by striking “significantly” both places it appears. (3) Section 659(c)(3)(B) of the Economic Growth and Tax 26 USC 4980F note. Relief Reconciliation Act of 2001 is amended by striking “(or” and inserting “(and”. (v) Amendments Relating to Section 661 of the Act.— (1) Section 412(c)(9)(B) is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(i) Limitation.— A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (2) Section 302(c)(9)(B) of the Employee Retirement Income 29 USC 1082. Security Act of 1974 is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(iv) A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (w) Amendments Relating to Section 662 of the Act.— (1) Section 404(k) is amended— (A) in paragraph (1) by striking “during the taxable year”, (B) in paragraph (2)(B) by striking “(A)(iii)” and inserting “(A)(iv)”, (C) in paragraph (4)(B) by striking “(iii)” and inserting “(iv)”, and (D) by redesignating subparagraph (B) of paragraph (4) (as amended by subparagraph (C)) as subparagraph (C) of paragraph (4) and by inserting after subparagraph (A) the following new subparagraph: “(B) Reinvestment dividends.— For purposes of subparagraph (A), an applicable dividend reinvested pursuant to clause (iii)(II) of paragraph (2)(A) shall be treated as paid in the taxable year of the corporation in which such dividend is reinvested in qualifying employer securities or in which the election under clause (iii) of paragraph (2)(A) is made, whichever is later.”. (2) Section 404(k) is amended by adding at the end the following new paragraph: “(7) Full vesting.— In accordance with section 411, an applicable dividend described in clause (iii)(II) of paragraph (2)(A) shall be subject to the requirements of section 411(a)(1).”. (x) Effective Date.— Except as provided in subsection (c), 26 USC 25B note. the amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 to which they relate.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411 · 116 Stat. 21
Substituted · 26 U.S.C. § 414(v)(3)(A)(i)
Pub. L. 107–147, § 411(o)(4), substituted “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))” for “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457”
Source evidence
Code amendment note
Subsec. (v)(3)(A)(i). Pub. L. 107–147, § 411(o)(4), substituted “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))” for “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457”.
Enacted provision · exact public law section
SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001. (a) Amendments Related to Section 101 of the Act.— (1) In general.— Subsection (b) of section 6428 is amended to read as follows: “(b) Credit Treated as Nonrefundable Personal Credit.— For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.”. (2) Conforming amendments.— “(A) Subsection (d) of section 6428 is amended to read as follows: “(d) Coordination with Advance Refunds of Credit.— “(1) In general.— The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). “(2) Joint returns.— In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.”. (B) Paragraph (2) of section 6428(e) is amended to read as follows: “(2) Advance refund amount.— For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if— “(A) this section (other than subsections (b) and (d) and this subsection) had applied to such taxable year, and “(B) the credit for such taxable year were not allowed to exceed the excess (if any) of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).”. (b) Amendment Related to Section 201 of the Act..— Subparagraph (B) of section 24(d)(1) is amended by striking 26 USC 24. “amount of credit allowed by this section” and inserting “aggregate amount of credits allowed by this subpart”. (c) Amendments Related to Section 202 of the Act.— (1) Corrections to credit for adoption expenses.— (A) Paragraph (1) of section 23(a) is amended to read as follows: “(1) In general.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.”. (B) Subsection (a) of section 23 is amended by adding at the end the following new paragraph: “(3) $10,000 credit for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.”. (C) Paragraph (2) of section 23(a) is amended by striking the last sentence. (D) Paragraph (1) of section 23(b) is amended by striking “subsection (a)(1)(A)” and inserting “subsection (a)”. (E) Subsection (i) of section 23 is amended by striking “the dollar limitation in subsection (b)(1)” and inserting “the dollar amounts in subsections (a)(3) and (b)(1)”. (F) Expenses paid or incurred during any taxable year 26 USC 23 note. , beginning before January 1, 2002, may be taken into account in determining the credit under section 23 of the Internal Revenue Code of 1986 only to the extent the aggregate of such expenses does not exceed the applicable limitation under section 23(b)(1) of such Code as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001. (2) Corrections to exclusion for employer-provided adoption assistance.— (A) Subsection (a) of section 137 is amended to read as follows: “(a) Exclusion.— “(1) In general.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program. “(2) $10,000 exclusion for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the qualified adoption expenses with respect to such adoption for such year shall be increased by an amount equal to the excess (if any) of $10,000 over the actual aggregate qualified adoption expenses with respect to such adoption during such taxable year and all prior taxable years.”. (B) Paragraph (2) of section 137(b) is amended by striking “subsection (a)(1)” and inserting “subsection (a)”. (3) Effective date.— The amendments made by this subsection 26 USC 23 note. shall apply to taxable years beginning after December 31, 2002; except that the amendments made by paragraphs (1)(C), (1)(D), and (2)(B) shall apply to taxable years beginning after December 31, 2001. (d) Amendments Related to Section 205 of the Act.— (1) Section 45F(d)(4)(B) is amended by striking “subpart A, B, or D of this part” and inserting “this chapter or for purposes of section 55”. (2) Section 38(b)(15) is amended by striking “45F” and inserting “45F(a)”. (e) Amendments Related to Section 301 of the Act.— (1) Section 63(c)(2) is amended— (A) in subparagraph (A), by striking “subparagraph (C)” and inserting “subparagraph (D)”, (B) by striking “or” at the end of subparagraph (B), (C) by redesignating subparagraph (C) as subparagraph (D), (D) by inserting after subparagraph (B) the following new subparagraph: “(C) one-half of the amount in effect under subparagraph (A) in the case of a married individual filing a separate return, or”, and (E) by inserting the following flush sentence at the end: “If any amount determined under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.”. (2) (A) Section 63(c)(4) is amended by striking “paragraph (2) or (5)” and inserting “paragraph (2)(B), (2)(1)), or (5)”. (B) Section 63(c)(4)(B)(i) is amended by striking “paragraph (2)” and inserting “paragraph (2)(B), (2)(D),”. (C) Section 63(c)(4) is amended by striking the flush sentence at the end (as added by section 301(c)(2) of Public Law 107-17). (f) Amendment Related to Section 401 of the Act.— Section 530(d)(4)(B)(iv) is amended by striking “because the taxpayer elected under paragraph (2)(C) to waive the application of paragraph (2)” and inserting “by application of paragraph (2)(C)(i)(II)”. (g) Amendments Related to Section 511 of the Act.— (1) Section 2511(c) is amended by striking “taxable gift under section 2503,” and inserting “transfer of property by gift,”. (2) Section 2101(b) is amended by striking the last sentence, (h) Amendment Related to Section 532 of the Act.— Section 2016 is amended by striking “any State, any possession of the United States, or the District of Columbia,”. (i) Amendments Relating to Section 602 of the Act.— (1) Subparagraph (A) of section 408(q)(3) is amended to read as follows: “(A) Qualified employer plan.— The term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”. (2) Section 4(c) of Employee Retirement Income Security Act of 1974 is amended— 29 USC 1003. (A) by inserting “and part 5 (relating to administration and enforcement)” before the period at the end, and (B) by adding at the end the following new sentence: “Such provisions shall apply to such accounts and annuities Applicability. in a manner similar to their application to a simplified employee pension under section 408(k) of the Internal Revenue Code of 1986.”. (j) Amendments Relating to Section 611 of the Act.— (1) Section 408(k) is amended— 26 USC 408. (A) in paragraph (2)(C) by striking “$300” and inserting “$450”, and (B) in paragraph (8) by striking “$300” both places it appears and inserting “$450”. (2) Section 409(o)(1)(C)(ii) is amended— (A) by striking “$500,000” both places it appears and inserting “$800,000”, and (B) by striking “$100,000” and inserting “$160,000”. (3) Section 611(i) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by adding at the end 26 USC 415 note. the following new paragraph: “(3) Special rule.— In the case of plan that, on June 7, 2001, incorporated by reference the limitation of section 415(b)(1)(A) of the Internal Revenue Code of 1986, section 411(d)(6) of such Code and section 204(g)(1) of the Employee Retirement Income Security Act of 1974 do not apply to a plan amendment that— “(A) is adopted on or before June 30, 2002, “(B) reduces benefits to the level that would have applied without regard to the amendments made by subsection (a) of this section, and “(C) is effective no earlier than the years described in paragraph (2).”. (k) Amendments Relating to Section 613 of the Act.— (1) Section 416(c)(1)(C)(iii) is amended by striking “Exception for frozen plan” and inserting “exception for plan under which no key employee (or former key employee) benefits for plan year”. (2) Section 416(g)(3)(B) is amended by striking “separation from service” and inserting “severance from employment”. (l) Amendments Relating to Sections 614 and 616 of the Act.— (1) Section 404(a)(12) is amended by striking “(9),” and inserting “(9) and subsection (h)(1)(C),”. (2) Section 404(n) is amended by striking “subsection (a),” and inserting “subsection (a) or paragraph (1)(C) of subsection (h)”. (3) Section 402(h)(2)(A) is amended by striking “15 percent” and inserting “25 percent”. (4) Section 404(a)(7)(C) is amended to read as follows: “(C) Paragraph not to apply in certain cases.— “(i) Beneficiary test.— This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than 1 trust or under a trust and an annuity plan. “(ii) Elective deferrals.— If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.”. (m) Amendment Relating to Section 618 of the Act.— 26 USC 25B. Section 25B(d)(2)(A) is amended to read as follows: “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”. (n) Amendments Relating to Section 619 of the Act.— (1) Section 45E(e)(1) is amended by striking “(n)” and inserting “(m)”. (2) Section 619(d) of the Economic Growth and Tax Relief 26 USC 38 note. Reconciliation Act of 2001 is amended by striking “established” and inserting “first effective”. (o) Amendments Relating to Section 631 of the Act.— (1) Section 402(g)(1) is amended by adding at the end the following: “(C) Catch-up contributions.— In addition to subparagraph (A), in the case of an eligible participant (as defined in section 414(v)), gross income shall not include elective deferrals in excess of the applicable dollar amount under subparagraph (B) to the extent that the amount of such elective deferrals does not exceed the applicable dollar amount under section 414(v)(2)(B)(i) for the taxable year (without regard to the treatment of the elective deferrals by an applicable employer plan under section 414(v)).”. (2) Section 401(a)(30) is amended by striking “402(g)(1)” and inserting “402(g)(1)(A)”. (3) Section 414(v)(2) is amended by adding at the end the following: “(D) Aggregation of plans.— For purposes of this paragraph, plans described in clauses (i), (ii), and (iv) of paragraph (6)(A) that are maintained by the same employer (as determined under subsection (b), (c), (m) or (o)) shall be treated as a single plan, and plans described in clause (iii) of paragraph (6)(A) that are maintained by the same employer shall be treated as a single plan.”. (4) Section 414(v)(3)(A)(i) is amended by striking “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457” and inserting “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))”. (5) Section 414(v)(3)(B) is amended by striking “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416” and inserting “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416”. (6) Section 414(v)(4)(B) is amended by inserting before 26 USC 414. the period at the end the following: “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”. (7) Section 414(v)(5) is amended— (A) by striking “, with respect to any plan year,” in the matter preceding subparagraph (A), (B) by amending subparagraph (A) to read as follows: “(A) who would attain age 50 by the end of the taxable year,”, and (C) in subparagraph (B) by striking “plan year” and inserting “plan (or other applicable) year”. (8) Section 414(v)(6)(C) is amended to read as follows: “(C) Exception for section 457 plans.—This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).”. (9) Section 457(e) is amended by adding at the end the following new paragraph: “(18) Coordination with catch-up contributions for individuals age 50 or older.— In the case of an individual who is an eligible participant (as defined by section 414(v)) and who is a participant in an eligible deferred compensation plan of an employer described in paragraph (I)(A), subsections (b)(3) and (c) shall be applied by substituting for the amount otherwise determined under the applicable subsection the greater of— “(A) the sum of— “(i) the plan ceiling established for purposes of subsection (b)(2) (without regard to subsection (b)(3)), plus “(ii) the applicable dollar amount for the taxable year determined under section 414(v)(2)(B)(i), or “(B) the amount determined under the applicable subsection (without regard to this paragraph).”. (p) Amendments Relating to Section 632 of the Act.— (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.”. (2) Section 403(b) is amended by striking paragraph (6). (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”. (4) Section 415(c)(7) is amended to read as follows: “(7) Special rules relating to church plans.— “(A) Alternative contribution limitation.— “(i) In general.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. “(ii) $40,000 aggregate limitation.— The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. “(B) Number of years of service for duly ordained, commissioned, or licensed ministers or lay employees.— For purposes of this paragraph— “(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. “(C) Foreign missionaries.— In the case of any individual described in subparagraph (D) performing services outside the United States, contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such employee, when expressed as an annual addition to such employee's account, shall not be treated as exceeding the limitation of paragraph (1) if such annual addition is not in excess of the greater of $3,000 or the employee's includible compensation determined under section 403(b)(3). “(D) Annual addition.— For purposes of this paragraph, the term ‘annual addition’ has the meaning given such term by paragraph (2). “(E) Church, convention or association of churches.— For purposes of this paragraph, the terms ‘church’ and ‘convention or association of churches’ have the same meaning as when used in section 414(e).”. (5) Section 457(e)(5) is amended to read as follows: 26 USC 457. “(5) Includible compensation.— The term ‘includible compensation’ has the meaning given to the term ‘participant's compensation’ by section 415(c)(3).”. (6) Section 402(g)(7)(B) is amended by striking “2001.” and inserting “2001).”. (q) Amendments Relating to Section 643 of the Act.— (1) Section 401(a)(31)(C)(i) is amended by inserting “is a qualified trust which is part of a plan which is a defined contribution plan and” before “agrees”. (2) Section 402(c)(2) is amended by adding at the end the following flush sentence: “In the case of a transfer described in subparagraph (A) or (B), the amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).”. (r) Amendments Relating to Section 648 of the Act.— (1) Section 417(e) is amended— (A) in paragraph (1) by striking “exceed the dollar limit under section 411(a)(11)(A)” and inserting “exceed the amount that can be distributed without the participant's consent under section 411(a)(11)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 411(a)(11)(A)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 411(a)(11)”. (2) Section 205(g) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1055. (A) in paragraph (1) by striking “exceed the dollar limit under section 203(e)(1)” and inserting “exceed the amount that can be distributed without the participant's consent under section 203(e)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 203(e)(1)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 203(e)”. (s) Amendment Relating to Section 652 of the Act.— Section 404(a)(1)(D)(iv) is amended by striking “Plans maintained by professional service employers” and inserting “Special rule for terminating plans”. (t) Amendments Relating to Section 657 of the Act.— Section 404(c)(3) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1104. (1) by striking “the earlier of” in subparagraph (A) the second place it appears, and (2) by striking “if the transfer” and inserting “a transfer that”. (u) Amendments Relating to Section 659 of the Act.— (1) Section 4980F is amended— (A) in subsection (e)(1) by striking “written notice” and inserting “the notice described in paragraph (2)”, (B) by amending subsection (f)(2)(A) to read as follows: “(A) any defined benefit plan described in section 401(a) which includes a trust exempt from tax under section 501(a), or”, and (C) in subsection (f)(3) by striking “significantly” both places it appears. (2) Section 204(h)(9) of the Employee Retirement Income Security Act of 1974 is amended by striking “significantly” both places it appears. (3) Section 659(c)(3)(B) of the Economic Growth and Tax 26 USC 4980F note. Relief Reconciliation Act of 2001 is amended by striking “(or” and inserting “(and”. (v) Amendments Relating to Section 661 of the Act.— (1) Section 412(c)(9)(B) is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(i) Limitation.— A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (2) Section 302(c)(9)(B) of the Employee Retirement Income 29 USC 1082. Security Act of 1974 is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(iv) A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (w) Amendments Relating to Section 662 of the Act.— (1) Section 404(k) is amended— (A) in paragraph (1) by striking “during the taxable year”, (B) in paragraph (2)(B) by striking “(A)(iii)” and inserting “(A)(iv)”, (C) in paragraph (4)(B) by striking “(iii)” and inserting “(iv)”, and (D) by redesignating subparagraph (B) of paragraph (4) (as amended by subparagraph (C)) as subparagraph (C) of paragraph (4) and by inserting after subparagraph (A) the following new subparagraph: “(B) Reinvestment dividends.— For purposes of subparagraph (A), an applicable dividend reinvested pursuant to clause (iii)(II) of paragraph (2)(A) shall be treated as paid in the taxable year of the corporation in which such dividend is reinvested in qualifying employer securities or in which the election under clause (iii) of paragraph (2)(A) is made, whichever is later.”. (2) Section 404(k) is amended by adding at the end the following new paragraph: “(7) Full vesting.— In accordance with section 411, an applicable dividend described in clause (iii)(II) of paragraph (2)(A) shall be subject to the requirements of section 411(a)(1).”. (x) Effective Date.— Except as provided in subsection (c), 26 USC 25B note. the amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 to which they relate.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411 · 116 Stat. 21
Substituted · 26 U.S.C. § 414(v)(3)(B)
Pub. L. 107–147, § 411(o)(5), substituted “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416” for “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416”
Source evidence
Code amendment note
Subsec. (v)(3)(B). Pub. L. 107–147, § 411(o)(5), substituted “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416” for “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416”.
Enacted provision · exact public law section
SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001. (a) Amendments Related to Section 101 of the Act.— (1) In general.— Subsection (b) of section 6428 is amended to read as follows: “(b) Credit Treated as Nonrefundable Personal Credit.— For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.”. (2) Conforming amendments.— “(A) Subsection (d) of section 6428 is amended to read as follows: “(d) Coordination with Advance Refunds of Credit.— “(1) In general.— The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). “(2) Joint returns.— In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.”. (B) Paragraph (2) of section 6428(e) is amended to read as follows: “(2) Advance refund amount.— For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if— “(A) this section (other than subsections (b) and (d) and this subsection) had applied to such taxable year, and “(B) the credit for such taxable year were not allowed to exceed the excess (if any) of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).”. (b) Amendment Related to Section 201 of the Act..— Subparagraph (B) of section 24(d)(1) is amended by striking 26 USC 24. “amount of credit allowed by this section” and inserting “aggregate amount of credits allowed by this subpart”. (c) Amendments Related to Section 202 of the Act.— (1) Corrections to credit for adoption expenses.— (A) Paragraph (1) of section 23(a) is amended to read as follows: “(1) In general.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.”. (B) Subsection (a) of section 23 is amended by adding at the end the following new paragraph: “(3) $10,000 credit for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.”. (C) Paragraph (2) of section 23(a) is amended by striking the last sentence. (D) Paragraph (1) of section 23(b) is amended by striking “subsection (a)(1)(A)” and inserting “subsection (a)”. (E) Subsection (i) of section 23 is amended by striking “the dollar limitation in subsection (b)(1)” and inserting “the dollar amounts in subsections (a)(3) and (b)(1)”. (F) Expenses paid or incurred during any taxable year 26 USC 23 note. , beginning before January 1, 2002, may be taken into account in determining the credit under section 23 of the Internal Revenue Code of 1986 only to the extent the aggregate of such expenses does not exceed the applicable limitation under section 23(b)(1) of such Code as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001. (2) Corrections to exclusion for employer-provided adoption assistance.— (A) Subsection (a) of section 137 is amended to read as follows: “(a) Exclusion.— “(1) In general.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program. “(2) $10,000 exclusion for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the qualified adoption expenses with respect to such adoption for such year shall be increased by an amount equal to the excess (if any) of $10,000 over the actual aggregate qualified adoption expenses with respect to such adoption during such taxable year and all prior taxable years.”. (B) Paragraph (2) of section 137(b) is amended by striking “subsection (a)(1)” and inserting “subsection (a)”. (3) Effective date.— The amendments made by this subsection 26 USC 23 note. shall apply to taxable years beginning after December 31, 2002; except that the amendments made by paragraphs (1)(C), (1)(D), and (2)(B) shall apply to taxable years beginning after December 31, 2001. (d) Amendments Related to Section 205 of the Act.— (1) Section 45F(d)(4)(B) is amended by striking “subpart A, B, or D of this part” and inserting “this chapter or for purposes of section 55”. (2) Section 38(b)(15) is amended by striking “45F” and inserting “45F(a)”. (e) Amendments Related to Section 301 of the Act.— (1) Section 63(c)(2) is amended— (A) in subparagraph (A), by striking “subparagraph (C)” and inserting “subparagraph (D)”, (B) by striking “or” at the end of subparagraph (B), (C) by redesignating subparagraph (C) as subparagraph (D), (D) by inserting after subparagraph (B) the following new subparagraph: “(C) one-half of the amount in effect under subparagraph (A) in the case of a married individual filing a separate return, or”, and (E) by inserting the following flush sentence at the end: “If any amount determined under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.”. (2) (A) Section 63(c)(4) is amended by striking “paragraph (2) or (5)” and inserting “paragraph (2)(B), (2)(1)), or (5)”. (B) Section 63(c)(4)(B)(i) is amended by striking “paragraph (2)” and inserting “paragraph (2)(B), (2)(D),”. (C) Section 63(c)(4) is amended by striking the flush sentence at the end (as added by section 301(c)(2) of Public Law 107-17). (f) Amendment Related to Section 401 of the Act.— Section 530(d)(4)(B)(iv) is amended by striking “because the taxpayer elected under paragraph (2)(C) to waive the application of paragraph (2)” and inserting “by application of paragraph (2)(C)(i)(II)”. (g) Amendments Related to Section 511 of the Act.— (1) Section 2511(c) is amended by striking “taxable gift under section 2503,” and inserting “transfer of property by gift,”. (2) Section 2101(b) is amended by striking the last sentence, (h) Amendment Related to Section 532 of the Act.— Section 2016 is amended by striking “any State, any possession of the United States, or the District of Columbia,”. (i) Amendments Relating to Section 602 of the Act.— (1) Subparagraph (A) of section 408(q)(3) is amended to read as follows: “(A) Qualified employer plan.— The term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”. (2) Section 4(c) of Employee Retirement Income Security Act of 1974 is amended— 29 USC 1003. (A) by inserting “and part 5 (relating to administration and enforcement)” before the period at the end, and (B) by adding at the end the following new sentence: “Such provisions shall apply to such accounts and annuities Applicability. in a manner similar to their application to a simplified employee pension under section 408(k) of the Internal Revenue Code of 1986.”. (j) Amendments Relating to Section 611 of the Act.— (1) Section 408(k) is amended— 26 USC 408. (A) in paragraph (2)(C) by striking “$300” and inserting “$450”, and (B) in paragraph (8) by striking “$300” both places it appears and inserting “$450”. (2) Section 409(o)(1)(C)(ii) is amended— (A) by striking “$500,000” both places it appears and inserting “$800,000”, and (B) by striking “$100,000” and inserting “$160,000”. (3) Section 611(i) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by adding at the end 26 USC 415 note. the following new paragraph: “(3) Special rule.— In the case of plan that, on June 7, 2001, incorporated by reference the limitation of section 415(b)(1)(A) of the Internal Revenue Code of 1986, section 411(d)(6) of such Code and section 204(g)(1) of the Employee Retirement Income Security Act of 1974 do not apply to a plan amendment that— “(A) is adopted on or before June 30, 2002, “(B) reduces benefits to the level that would have applied without regard to the amendments made by subsection (a) of this section, and “(C) is effective no earlier than the years described in paragraph (2).”. (k) Amendments Relating to Section 613 of the Act.— (1) Section 416(c)(1)(C)(iii) is amended by striking “Exception for frozen plan” and inserting “exception for plan under which no key employee (or former key employee) benefits for plan year”. (2) Section 416(g)(3)(B) is amended by striking “separation from service” and inserting “severance from employment”. (l) Amendments Relating to Sections 614 and 616 of the Act.— (1) Section 404(a)(12) is amended by striking “(9),” and inserting “(9) and subsection (h)(1)(C),”. (2) Section 404(n) is amended by striking “subsection (a),” and inserting “subsection (a) or paragraph (1)(C) of subsection (h)”. (3) Section 402(h)(2)(A) is amended by striking “15 percent” and inserting “25 percent”. (4) Section 404(a)(7)(C) is amended to read as follows: “(C) Paragraph not to apply in certain cases.— “(i) Beneficiary test.— This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than 1 trust or under a trust and an annuity plan. “(ii) Elective deferrals.— If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.”. (m) Amendment Relating to Section 618 of the Act.— 26 USC 25B. Section 25B(d)(2)(A) is amended to read as follows: “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”. (n) Amendments Relating to Section 619 of the Act.— (1) Section 45E(e)(1) is amended by striking “(n)” and inserting “(m)”. (2) Section 619(d) of the Economic Growth and Tax Relief 26 USC 38 note. Reconciliation Act of 2001 is amended by striking “established” and inserting “first effective”. (o) Amendments Relating to Section 631 of the Act.— (1) Section 402(g)(1) is amended by adding at the end the following: “(C) Catch-up contributions.— In addition to subparagraph (A), in the case of an eligible participant (as defined in section 414(v)), gross income shall not include elective deferrals in excess of the applicable dollar amount under subparagraph (B) to the extent that the amount of such elective deferrals does not exceed the applicable dollar amount under section 414(v)(2)(B)(i) for the taxable year (without regard to the treatment of the elective deferrals by an applicable employer plan under section 414(v)).”. (2) Section 401(a)(30) is amended by striking “402(g)(1)” and inserting “402(g)(1)(A)”. (3) Section 414(v)(2) is amended by adding at the end the following: “(D) Aggregation of plans.— For purposes of this paragraph, plans described in clauses (i), (ii), and (iv) of paragraph (6)(A) that are maintained by the same employer (as determined under subsection (b), (c), (m) or (o)) shall be treated as a single plan, and plans described in clause (iii) of paragraph (6)(A) that are maintained by the same employer shall be treated as a single plan.”. (4) Section 414(v)(3)(A)(i) is amended by striking “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457” and inserting “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))”. (5) Section 414(v)(3)(B) is amended by striking “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416” and inserting “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416”. (6) Section 414(v)(4)(B) is amended by inserting before 26 USC 414. the period at the end the following: “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”. (7) Section 414(v)(5) is amended— (A) by striking “, with respect to any plan year,” in the matter preceding subparagraph (A), (B) by amending subparagraph (A) to read as follows: “(A) who would attain age 50 by the end of the taxable year,”, and (C) in subparagraph (B) by striking “plan year” and inserting “plan (or other applicable) year”. (8) Section 414(v)(6)(C) is amended to read as follows: “(C) Exception for section 457 plans.—This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).”. (9) Section 457(e) is amended by adding at the end the following new paragraph: “(18) Coordination with catch-up contributions for individuals age 50 or older.— In the case of an individual who is an eligible participant (as defined by section 414(v)) and who is a participant in an eligible deferred compensation plan of an employer described in paragraph (I)(A), subsections (b)(3) and (c) shall be applied by substituting for the amount otherwise determined under the applicable subsection the greater of— “(A) the sum of— “(i) the plan ceiling established for purposes of subsection (b)(2) (without regard to subsection (b)(3)), plus “(ii) the applicable dollar amount for the taxable year determined under section 414(v)(2)(B)(i), or “(B) the amount determined under the applicable subsection (without regard to this paragraph).”. (p) Amendments Relating to Section 632 of the Act.— (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.”. (2) Section 403(b) is amended by striking paragraph (6). (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”. (4) Section 415(c)(7) is amended to read as follows: “(7) Special rules relating to church plans.— “(A) Alternative contribution limitation.— “(i) In general.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. “(ii) $40,000 aggregate limitation.— The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. “(B) Number of years of service for duly ordained, commissioned, or licensed ministers or lay employees.— For purposes of this paragraph— “(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. “(C) Foreign missionaries.— In the case of any individual described in subparagraph (D) performing services outside the United States, contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such employee, when expressed as an annual addition to such employee's account, shall not be treated as exceeding the limitation of paragraph (1) if such annual addition is not in excess of the greater of $3,000 or the employee's includible compensation determined under section 403(b)(3). “(D) Annual addition.— For purposes of this paragraph, the term ‘annual addition’ has the meaning given such term by paragraph (2). “(E) Church, convention or association of churches.— For purposes of this paragraph, the terms ‘church’ and ‘convention or association of churches’ have the same meaning as when used in section 414(e).”. (5) Section 457(e)(5) is amended to read as follows: 26 USC 457. “(5) Includible compensation.— The term ‘includible compensation’ has the meaning given to the term ‘participant's compensation’ by section 415(c)(3).”. (6) Section 402(g)(7)(B) is amended by striking “2001.” and inserting “2001).”. (q) Amendments Relating to Section 643 of the Act.— (1) Section 401(a)(31)(C)(i) is amended by inserting “is a qualified trust which is part of a plan which is a defined contribution plan and” before “agrees”. (2) Section 402(c)(2) is amended by adding at the end the following flush sentence: “In the case of a transfer described in subparagraph (A) or (B), the amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).”. (r) Amendments Relating to Section 648 of the Act.— (1) Section 417(e) is amended— (A) in paragraph (1) by striking “exceed the dollar limit under section 411(a)(11)(A)” and inserting “exceed the amount that can be distributed without the participant's consent under section 411(a)(11)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 411(a)(11)(A)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 411(a)(11)”. (2) Section 205(g) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1055. (A) in paragraph (1) by striking “exceed the dollar limit under section 203(e)(1)” and inserting “exceed the amount that can be distributed without the participant's consent under section 203(e)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 203(e)(1)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 203(e)”. (s) Amendment Relating to Section 652 of the Act.— Section 404(a)(1)(D)(iv) is amended by striking “Plans maintained by professional service employers” and inserting “Special rule for terminating plans”. (t) Amendments Relating to Section 657 of the Act.— Section 404(c)(3) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1104. (1) by striking “the earlier of” in subparagraph (A) the second place it appears, and (2) by striking “if the transfer” and inserting “a transfer that”. (u) Amendments Relating to Section 659 of the Act.— (1) Section 4980F is amended— (A) in subsection (e)(1) by striking “written notice” and inserting “the notice described in paragraph (2)”, (B) by amending subsection (f)(2)(A) to read as follows: “(A) any defined benefit plan described in section 401(a) which includes a trust exempt from tax under section 501(a), or”, and (C) in subsection (f)(3) by striking “significantly” both places it appears. (2) Section 204(h)(9) of the Employee Retirement Income Security Act of 1974 is amended by striking “significantly” both places it appears. (3) Section 659(c)(3)(B) of the Economic Growth and Tax 26 USC 4980F note. Relief Reconciliation Act of 2001 is amended by striking “(or” and inserting “(and”. (v) Amendments Relating to Section 661 of the Act.— (1) Section 412(c)(9)(B) is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(i) Limitation.— A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (2) Section 302(c)(9)(B) of the Employee Retirement Income 29 USC 1082. Security Act of 1974 is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(iv) A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (w) Amendments Relating to Section 662 of the Act.— (1) Section 404(k) is amended— (A) in paragraph (1) by striking “during the taxable year”, (B) in paragraph (2)(B) by striking “(A)(iii)” and inserting “(A)(iv)”, (C) in paragraph (4)(B) by striking “(iii)” and inserting “(iv)”, and (D) by redesignating subparagraph (B) of paragraph (4) (as amended by subparagraph (C)) as subparagraph (C) of paragraph (4) and by inserting after subparagraph (A) the following new subparagraph: “(B) Reinvestment dividends.— For purposes of subparagraph (A), an applicable dividend reinvested pursuant to clause (iii)(II) of paragraph (2)(A) shall be treated as paid in the taxable year of the corporation in which such dividend is reinvested in qualifying employer securities or in which the election under clause (iii) of paragraph (2)(A) is made, whichever is later.”. (2) Section 404(k) is amended by adding at the end the following new paragraph: “(7) Full vesting.— In accordance with section 411, an applicable dividend described in clause (iii)(II) of paragraph (2)(A) shall be subject to the requirements of section 411(a)(1).”. (x) Effective Date.— Except as provided in subsection (c), 26 USC 25B note. the amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 to which they relate.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411 · 116 Stat. 21
Inserted · 26 U.S.C. § 414(v)(4)(B)
Pub. L. 107–147, § 411(o)(6), inserted before period at end “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”
Source evidence
Code amendment note
Subsec. (v)(4)(B). Pub. L. 107–147, § 411(o)(6), inserted before period at end “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”.
Enacted provision · exact public law section
SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001. (a) Amendments Related to Section 101 of the Act.— (1) In general.— Subsection (b) of section 6428 is amended to read as follows: “(b) Credit Treated as Nonrefundable Personal Credit.— For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.”. (2) Conforming amendments.— “(A) Subsection (d) of section 6428 is amended to read as follows: “(d) Coordination with Advance Refunds of Credit.— “(1) In general.— The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). “(2) Joint returns.— In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.”. (B) Paragraph (2) of section 6428(e) is amended to read as follows: “(2) Advance refund amount.— For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if— “(A) this section (other than subsections (b) and (d) and this subsection) had applied to such taxable year, and “(B) the credit for such taxable year were not allowed to exceed the excess (if any) of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).”. (b) Amendment Related to Section 201 of the Act..— Subparagraph (B) of section 24(d)(1) is amended by striking 26 USC 24. “amount of credit allowed by this section” and inserting “aggregate amount of credits allowed by this subpart”. (c) Amendments Related to Section 202 of the Act.— (1) Corrections to credit for adoption expenses.— (A) Paragraph (1) of section 23(a) is amended to read as follows: “(1) In general.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.”. (B) Subsection (a) of section 23 is amended by adding at the end the following new paragraph: “(3) $10,000 credit for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.”. (C) Paragraph (2) of section 23(a) is amended by striking the last sentence. (D) Paragraph (1) of section 23(b) is amended by striking “subsection (a)(1)(A)” and inserting “subsection (a)”. (E) Subsection (i) of section 23 is amended by striking “the dollar limitation in subsection (b)(1)” and inserting “the dollar amounts in subsections (a)(3) and (b)(1)”. (F) Expenses paid or incurred during any taxable year 26 USC 23 note. , beginning before January 1, 2002, may be taken into account in determining the credit under section 23 of the Internal Revenue Code of 1986 only to the extent the aggregate of such expenses does not exceed the applicable limitation under section 23(b)(1) of such Code as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001. (2) Corrections to exclusion for employer-provided adoption assistance.— (A) Subsection (a) of section 137 is amended to read as follows: “(a) Exclusion.— “(1) In general.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program. “(2) $10,000 exclusion for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the qualified adoption expenses with respect to such adoption for such year shall be increased by an amount equal to the excess (if any) of $10,000 over the actual aggregate qualified adoption expenses with respect to such adoption during such taxable year and all prior taxable years.”. (B) Paragraph (2) of section 137(b) is amended by striking “subsection (a)(1)” and inserting “subsection (a)”. (3) Effective date.— The amendments made by this subsection 26 USC 23 note. shall apply to taxable years beginning after December 31, 2002; except that the amendments made by paragraphs (1)(C), (1)(D), and (2)(B) shall apply to taxable years beginning after December 31, 2001. (d) Amendments Related to Section 205 of the Act.— (1) Section 45F(d)(4)(B) is amended by striking “subpart A, B, or D of this part” and inserting “this chapter or for purposes of section 55”. (2) Section 38(b)(15) is amended by striking “45F” and inserting “45F(a)”. (e) Amendments Related to Section 301 of the Act.— (1) Section 63(c)(2) is amended— (A) in subparagraph (A), by striking “subparagraph (C)” and inserting “subparagraph (D)”, (B) by striking “or” at the end of subparagraph (B), (C) by redesignating subparagraph (C) as subparagraph (D), (D) by inserting after subparagraph (B) the following new subparagraph: “(C) one-half of the amount in effect under subparagraph (A) in the case of a married individual filing a separate return, or”, and (E) by inserting the following flush sentence at the end: “If any amount determined under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.”. (2) (A) Section 63(c)(4) is amended by striking “paragraph (2) or (5)” and inserting “paragraph (2)(B), (2)(1)), or (5)”. (B) Section 63(c)(4)(B)(i) is amended by striking “paragraph (2)” and inserting “paragraph (2)(B), (2)(D),”. (C) Section 63(c)(4) is amended by striking the flush sentence at the end (as added by section 301(c)(2) of Public Law 107-17). (f) Amendment Related to Section 401 of the Act.— Section 530(d)(4)(B)(iv) is amended by striking “because the taxpayer elected under paragraph (2)(C) to waive the application of paragraph (2)” and inserting “by application of paragraph (2)(C)(i)(II)”. (g) Amendments Related to Section 511 of the Act.— (1) Section 2511(c) is amended by striking “taxable gift under section 2503,” and inserting “transfer of property by gift,”. (2) Section 2101(b) is amended by striking the last sentence, (h) Amendment Related to Section 532 of the Act.— Section 2016 is amended by striking “any State, any possession of the United States, or the District of Columbia,”. (i) Amendments Relating to Section 602 of the Act.— (1) Subparagraph (A) of section 408(q)(3) is amended to read as follows: “(A) Qualified employer plan.— The term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”. (2) Section 4(c) of Employee Retirement Income Security Act of 1974 is amended— 29 USC 1003. (A) by inserting “and part 5 (relating to administration and enforcement)” before the period at the end, and (B) by adding at the end the following new sentence: “Such provisions shall apply to such accounts and annuities Applicability. in a manner similar to their application to a simplified employee pension under section 408(k) of the Internal Revenue Code of 1986.”. (j) Amendments Relating to Section 611 of the Act.— (1) Section 408(k) is amended— 26 USC 408. (A) in paragraph (2)(C) by striking “$300” and inserting “$450”, and (B) in paragraph (8) by striking “$300” both places it appears and inserting “$450”. (2) Section 409(o)(1)(C)(ii) is amended— (A) by striking “$500,000” both places it appears and inserting “$800,000”, and (B) by striking “$100,000” and inserting “$160,000”. (3) Section 611(i) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by adding at the end 26 USC 415 note. the following new paragraph: “(3) Special rule.— In the case of plan that, on June 7, 2001, incorporated by reference the limitation of section 415(b)(1)(A) of the Internal Revenue Code of 1986, section 411(d)(6) of such Code and section 204(g)(1) of the Employee Retirement Income Security Act of 1974 do not apply to a plan amendment that— “(A) is adopted on or before June 30, 2002, “(B) reduces benefits to the level that would have applied without regard to the amendments made by subsection (a) of this section, and “(C) is effective no earlier than the years described in paragraph (2).”. (k) Amendments Relating to Section 613 of the Act.— (1) Section 416(c)(1)(C)(iii) is amended by striking “Exception for frozen plan” and inserting “exception for plan under which no key employee (or former key employee) benefits for plan year”. (2) Section 416(g)(3)(B) is amended by striking “separation from service” and inserting “severance from employment”. (l) Amendments Relating to Sections 614 and 616 of the Act.— (1) Section 404(a)(12) is amended by striking “(9),” and inserting “(9) and subsection (h)(1)(C),”. (2) Section 404(n) is amended by striking “subsection (a),” and inserting “subsection (a) or paragraph (1)(C) of subsection (h)”. (3) Section 402(h)(2)(A) is amended by striking “15 percent” and inserting “25 percent”. (4) Section 404(a)(7)(C) is amended to read as follows: “(C) Paragraph not to apply in certain cases.— “(i) Beneficiary test.— This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than 1 trust or under a trust and an annuity plan. “(ii) Elective deferrals.— If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.”. (m) Amendment Relating to Section 618 of the Act.— 26 USC 25B. Section 25B(d)(2)(A) is amended to read as follows: “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”. (n) Amendments Relating to Section 619 of the Act.— (1) Section 45E(e)(1) is amended by striking “(n)” and inserting “(m)”. (2) Section 619(d) of the Economic Growth and Tax Relief 26 USC 38 note. Reconciliation Act of 2001 is amended by striking “established” and inserting “first effective”. (o) Amendments Relating to Section 631 of the Act.— (1) Section 402(g)(1) is amended by adding at the end the following: “(C) Catch-up contributions.— In addition to subparagraph (A), in the case of an eligible participant (as defined in section 414(v)), gross income shall not include elective deferrals in excess of the applicable dollar amount under subparagraph (B) to the extent that the amount of such elective deferrals does not exceed the applicable dollar amount under section 414(v)(2)(B)(i) for the taxable year (without regard to the treatment of the elective deferrals by an applicable employer plan under section 414(v)).”. (2) Section 401(a)(30) is amended by striking “402(g)(1)” and inserting “402(g)(1)(A)”. (3) Section 414(v)(2) is amended by adding at the end the following: “(D) Aggregation of plans.— For purposes of this paragraph, plans described in clauses (i), (ii), and (iv) of paragraph (6)(A) that are maintained by the same employer (as determined under subsection (b), (c), (m) or (o)) shall be treated as a single plan, and plans described in clause (iii) of paragraph (6)(A) that are maintained by the same employer shall be treated as a single plan.”. (4) Section 414(v)(3)(A)(i) is amended by striking “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457” and inserting “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))”. (5) Section 414(v)(3)(B) is amended by striking “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416” and inserting “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416”. (6) Section 414(v)(4)(B) is amended by inserting before 26 USC 414. the period at the end the following: “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”. (7) Section 414(v)(5) is amended— (A) by striking “, with respect to any plan year,” in the matter preceding subparagraph (A), (B) by amending subparagraph (A) to read as follows: “(A) who would attain age 50 by the end of the taxable year,”, and (C) in subparagraph (B) by striking “plan year” and inserting “plan (or other applicable) year”. (8) Section 414(v)(6)(C) is amended to read as follows: “(C) Exception for section 457 plans.—This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).”. (9) Section 457(e) is amended by adding at the end the following new paragraph: “(18) Coordination with catch-up contributions for individuals age 50 or older.— In the case of an individual who is an eligible participant (as defined by section 414(v)) and who is a participant in an eligible deferred compensation plan of an employer described in paragraph (I)(A), subsections (b)(3) and (c) shall be applied by substituting for the amount otherwise determined under the applicable subsection the greater of— “(A) the sum of— “(i) the plan ceiling established for purposes of subsection (b)(2) (without regard to subsection (b)(3)), plus “(ii) the applicable dollar amount for the taxable year determined under section 414(v)(2)(B)(i), or “(B) the amount determined under the applicable subsection (without regard to this paragraph).”. (p) Amendments Relating to Section 632 of the Act.— (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.”. (2) Section 403(b) is amended by striking paragraph (6). (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”. (4) Section 415(c)(7) is amended to read as follows: “(7) Special rules relating to church plans.— “(A) Alternative contribution limitation.— “(i) In general.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. “(ii) $40,000 aggregate limitation.— The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. “(B) Number of years of service for duly ordained, commissioned, or licensed ministers or lay employees.— For purposes of this paragraph— “(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. “(C) Foreign missionaries.— In the case of any individual described in subparagraph (D) performing services outside the United States, contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such employee, when expressed as an annual addition to such employee's account, shall not be treated as exceeding the limitation of paragraph (1) if such annual addition is not in excess of the greater of $3,000 or the employee's includible compensation determined under section 403(b)(3). “(D) Annual addition.— For purposes of this paragraph, the term ‘annual addition’ has the meaning given such term by paragraph (2). “(E) Church, convention or association of churches.— For purposes of this paragraph, the terms ‘church’ and ‘convention or association of churches’ have the same meaning as when used in section 414(e).”. (5) Section 457(e)(5) is amended to read as follows: 26 USC 457. “(5) Includible compensation.— The term ‘includible compensation’ has the meaning given to the term ‘participant's compensation’ by section 415(c)(3).”. (6) Section 402(g)(7)(B) is amended by striking “2001.” and inserting “2001).”. (q) Amendments Relating to Section 643 of the Act.— (1) Section 401(a)(31)(C)(i) is amended by inserting “is a qualified trust which is part of a plan which is a defined contribution plan and” before “agrees”. (2) Section 402(c)(2) is amended by adding at the end the following flush sentence: “In the case of a transfer described in subparagraph (A) or (B), the amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).”. (r) Amendments Relating to Section 648 of the Act.— (1) Section 417(e) is amended— (A) in paragraph (1) by striking “exceed the dollar limit under section 411(a)(11)(A)” and inserting “exceed the amount that can be distributed without the participant's consent under section 411(a)(11)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 411(a)(11)(A)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 411(a)(11)”. (2) Section 205(g) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1055. (A) in paragraph (1) by striking “exceed the dollar limit under section 203(e)(1)” and inserting “exceed the amount that can be distributed without the participant's consent under section 203(e)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 203(e)(1)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 203(e)”. (s) Amendment Relating to Section 652 of the Act.— Section 404(a)(1)(D)(iv) is amended by striking “Plans maintained by professional service employers” and inserting “Special rule for terminating plans”. (t) Amendments Relating to Section 657 of the Act.— Section 404(c)(3) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1104. (1) by striking “the earlier of” in subparagraph (A) the second place it appears, and (2) by striking “if the transfer” and inserting “a transfer that”. (u) Amendments Relating to Section 659 of the Act.— (1) Section 4980F is amended— (A) in subsection (e)(1) by striking “written notice” and inserting “the notice described in paragraph (2)”, (B) by amending subsection (f)(2)(A) to read as follows: “(A) any defined benefit plan described in section 401(a) which includes a trust exempt from tax under section 501(a), or”, and (C) in subsection (f)(3) by striking “significantly” both places it appears. (2) Section 204(h)(9) of the Employee Retirement Income Security Act of 1974 is amended by striking “significantly” both places it appears. (3) Section 659(c)(3)(B) of the Economic Growth and Tax 26 USC 4980F note. Relief Reconciliation Act of 2001 is amended by striking “(or” and inserting “(and”. (v) Amendments Relating to Section 661 of the Act.— (1) Section 412(c)(9)(B) is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(i) Limitation.— A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (2) Section 302(c)(9)(B) of the Employee Retirement Income 29 USC 1082. Security Act of 1974 is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(iv) A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (w) Amendments Relating to Section 662 of the Act.— (1) Section 404(k) is amended— (A) in paragraph (1) by striking “during the taxable year”, (B) in paragraph (2)(B) by striking “(A)(iii)” and inserting “(A)(iv)”, (C) in paragraph (4)(B) by striking “(iii)” and inserting “(iv)”, and (D) by redesignating subparagraph (B) of paragraph (4) (as amended by subparagraph (C)) as subparagraph (C) of paragraph (4) and by inserting after subparagraph (A) the following new subparagraph: “(B) Reinvestment dividends.— For purposes of subparagraph (A), an applicable dividend reinvested pursuant to clause (iii)(II) of paragraph (2)(A) shall be treated as paid in the taxable year of the corporation in which such dividend is reinvested in qualifying employer securities or in which the election under clause (iii) of paragraph (2)(A) is made, whichever is later.”. (2) Section 404(k) is amended by adding at the end the following new paragraph: “(7) Full vesting.— In accordance with section 411, an applicable dividend described in clause (iii)(II) of paragraph (2)(A) shall be subject to the requirements of section 411(a)(1).”. (x) Effective Date.— Except as provided in subsection (c), 26 USC 25B note. the amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 to which they relate.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411 · 116 Stat. 21
Struck · 26 U.S.C. § 414(v)(5)
Pub. L. 107–147, § 411(o)(7)(A), struck out “, with respect to any plan year,” before “a participant” in introductory provisions
Source evidence
Code amendment note
Subsec. (v)(5). Pub. L. 107–147, § 411(o)(7)(A), struck out “, with respect to any plan year,” before “a participant” in introductory provisions.
Enacted provision · exact public law section
SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001. (a) Amendments Related to Section 101 of the Act.— (1) In general.— Subsection (b) of section 6428 is amended to read as follows: “(b) Credit Treated as Nonrefundable Personal Credit.— For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.”. (2) Conforming amendments.— “(A) Subsection (d) of section 6428 is amended to read as follows: “(d) Coordination with Advance Refunds of Credit.— “(1) In general.— The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). “(2) Joint returns.— In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.”. (B) Paragraph (2) of section 6428(e) is amended to read as follows: “(2) Advance refund amount.— For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if— “(A) this section (other than subsections (b) and (d) and this subsection) had applied to such taxable year, and “(B) the credit for such taxable year were not allowed to exceed the excess (if any) of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).”. (b) Amendment Related to Section 201 of the Act..— Subparagraph (B) of section 24(d)(1) is amended by striking 26 USC 24. “amount of credit allowed by this section” and inserting “aggregate amount of credits allowed by this subpart”. (c) Amendments Related to Section 202 of the Act.— (1) Corrections to credit for adoption expenses.— (A) Paragraph (1) of section 23(a) is amended to read as follows: “(1) In general.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.”. (B) Subsection (a) of section 23 is amended by adding at the end the following new paragraph: “(3) $10,000 credit for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.”. (C) Paragraph (2) of section 23(a) is amended by striking the last sentence. (D) Paragraph (1) of section 23(b) is amended by striking “subsection (a)(1)(A)” and inserting “subsection (a)”. (E) Subsection (i) of section 23 is amended by striking “the dollar limitation in subsection (b)(1)” and inserting “the dollar amounts in subsections (a)(3) and (b)(1)”. (F) Expenses paid or incurred during any taxable year 26 USC 23 note. , beginning before January 1, 2002, may be taken into account in determining the credit under section 23 of the Internal Revenue Code of 1986 only to the extent the aggregate of such expenses does not exceed the applicable limitation under section 23(b)(1) of such Code as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001. (2) Corrections to exclusion for employer-provided adoption assistance.— (A) Subsection (a) of section 137 is amended to read as follows: “(a) Exclusion.— “(1) In general.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program. “(2) $10,000 exclusion for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the qualified adoption expenses with respect to such adoption for such year shall be increased by an amount equal to the excess (if any) of $10,000 over the actual aggregate qualified adoption expenses with respect to such adoption during such taxable year and all prior taxable years.”. (B) Paragraph (2) of section 137(b) is amended by striking “subsection (a)(1)” and inserting “subsection (a)”. (3) Effective date.— The amendments made by this subsection 26 USC 23 note. shall apply to taxable years beginning after December 31, 2002; except that the amendments made by paragraphs (1)(C), (1)(D), and (2)(B) shall apply to taxable years beginning after December 31, 2001. (d) Amendments Related to Section 205 of the Act.— (1) Section 45F(d)(4)(B) is amended by striking “subpart A, B, or D of this part” and inserting “this chapter or for purposes of section 55”. (2) Section 38(b)(15) is amended by striking “45F” and inserting “45F(a)”. (e) Amendments Related to Section 301 of the Act.— (1) Section 63(c)(2) is amended— (A) in subparagraph (A), by striking “subparagraph (C)” and inserting “subparagraph (D)”, (B) by striking “or” at the end of subparagraph (B), (C) by redesignating subparagraph (C) as subparagraph (D), (D) by inserting after subparagraph (B) the following new subparagraph: “(C) one-half of the amount in effect under subparagraph (A) in the case of a married individual filing a separate return, or”, and (E) by inserting the following flush sentence at the end: “If any amount determined under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.”. (2) (A) Section 63(c)(4) is amended by striking “paragraph (2) or (5)” and inserting “paragraph (2)(B), (2)(1)), or (5)”. (B) Section 63(c)(4)(B)(i) is amended by striking “paragraph (2)” and inserting “paragraph (2)(B), (2)(D),”. (C) Section 63(c)(4) is amended by striking the flush sentence at the end (as added by section 301(c)(2) of Public Law 107-17). (f) Amendment Related to Section 401 of the Act.— Section 530(d)(4)(B)(iv) is amended by striking “because the taxpayer elected under paragraph (2)(C) to waive the application of paragraph (2)” and inserting “by application of paragraph (2)(C)(i)(II)”. (g) Amendments Related to Section 511 of the Act.— (1) Section 2511(c) is amended by striking “taxable gift under section 2503,” and inserting “transfer of property by gift,”. (2) Section 2101(b) is amended by striking the last sentence, (h) Amendment Related to Section 532 of the Act.— Section 2016 is amended by striking “any State, any possession of the United States, or the District of Columbia,”. (i) Amendments Relating to Section 602 of the Act.— (1) Subparagraph (A) of section 408(q)(3) is amended to read as follows: “(A) Qualified employer plan.— The term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”. (2) Section 4(c) of Employee Retirement Income Security Act of 1974 is amended— 29 USC 1003. (A) by inserting “and part 5 (relating to administration and enforcement)” before the period at the end, and (B) by adding at the end the following new sentence: “Such provisions shall apply to such accounts and annuities Applicability. in a manner similar to their application to a simplified employee pension under section 408(k) of the Internal Revenue Code of 1986.”. (j) Amendments Relating to Section 611 of the Act.— (1) Section 408(k) is amended— 26 USC 408. (A) in paragraph (2)(C) by striking “$300” and inserting “$450”, and (B) in paragraph (8) by striking “$300” both places it appears and inserting “$450”. (2) Section 409(o)(1)(C)(ii) is amended— (A) by striking “$500,000” both places it appears and inserting “$800,000”, and (B) by striking “$100,000” and inserting “$160,000”. (3) Section 611(i) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by adding at the end 26 USC 415 note. the following new paragraph: “(3) Special rule.— In the case of plan that, on June 7, 2001, incorporated by reference the limitation of section 415(b)(1)(A) of the Internal Revenue Code of 1986, section 411(d)(6) of such Code and section 204(g)(1) of the Employee Retirement Income Security Act of 1974 do not apply to a plan amendment that— “(A) is adopted on or before June 30, 2002, “(B) reduces benefits to the level that would have applied without regard to the amendments made by subsection (a) of this section, and “(C) is effective no earlier than the years described in paragraph (2).”. (k) Amendments Relating to Section 613 of the Act.— (1) Section 416(c)(1)(C)(iii) is amended by striking “Exception for frozen plan” and inserting “exception for plan under which no key employee (or former key employee) benefits for plan year”. (2) Section 416(g)(3)(B) is amended by striking “separation from service” and inserting “severance from employment”. (l) Amendments Relating to Sections 614 and 616 of the Act.— (1) Section 404(a)(12) is amended by striking “(9),” and inserting “(9) and subsection (h)(1)(C),”. (2) Section 404(n) is amended by striking “subsection (a),” and inserting “subsection (a) or paragraph (1)(C) of subsection (h)”. (3) Section 402(h)(2)(A) is amended by striking “15 percent” and inserting “25 percent”. (4) Section 404(a)(7)(C) is amended to read as follows: “(C) Paragraph not to apply in certain cases.— “(i) Beneficiary test.— This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than 1 trust or under a trust and an annuity plan. “(ii) Elective deferrals.— If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.”. (m) Amendment Relating to Section 618 of the Act.— 26 USC 25B. Section 25B(d)(2)(A) is amended to read as follows: “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”. (n) Amendments Relating to Section 619 of the Act.— (1) Section 45E(e)(1) is amended by striking “(n)” and inserting “(m)”. (2) Section 619(d) of the Economic Growth and Tax Relief 26 USC 38 note. Reconciliation Act of 2001 is amended by striking “established” and inserting “first effective”. (o) Amendments Relating to Section 631 of the Act.— (1) Section 402(g)(1) is amended by adding at the end the following: “(C) Catch-up contributions.— In addition to subparagraph (A), in the case of an eligible participant (as defined in section 414(v)), gross income shall not include elective deferrals in excess of the applicable dollar amount under subparagraph (B) to the extent that the amount of such elective deferrals does not exceed the applicable dollar amount under section 414(v)(2)(B)(i) for the taxable year (without regard to the treatment of the elective deferrals by an applicable employer plan under section 414(v)).”. (2) Section 401(a)(30) is amended by striking “402(g)(1)” and inserting “402(g)(1)(A)”. (3) Section 414(v)(2) is amended by adding at the end the following: “(D) Aggregation of plans.— For purposes of this paragraph, plans described in clauses (i), (ii), and (iv) of paragraph (6)(A) that are maintained by the same employer (as determined under subsection (b), (c), (m) or (o)) shall be treated as a single plan, and plans described in clause (iii) of paragraph (6)(A) that are maintained by the same employer shall be treated as a single plan.”. (4) Section 414(v)(3)(A)(i) is amended by striking “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457” and inserting “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))”. (5) Section 414(v)(3)(B) is amended by striking “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416” and inserting “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416”. (6) Section 414(v)(4)(B) is amended by inserting before 26 USC 414. the period at the end the following: “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”. (7) Section 414(v)(5) is amended— (A) by striking “, with respect to any plan year,” in the matter preceding subparagraph (A), (B) by amending subparagraph (A) to read as follows: “(A) who would attain age 50 by the end of the taxable year,”, and (C) in subparagraph (B) by striking “plan year” and inserting “plan (or other applicable) year”. (8) Section 414(v)(6)(C) is amended to read as follows: “(C) Exception for section 457 plans.—This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).”. (9) Section 457(e) is amended by adding at the end the following new paragraph: “(18) Coordination with catch-up contributions for individuals age 50 or older.— In the case of an individual who is an eligible participant (as defined by section 414(v)) and who is a participant in an eligible deferred compensation plan of an employer described in paragraph (I)(A), subsections (b)(3) and (c) shall be applied by substituting for the amount otherwise determined under the applicable subsection the greater of— “(A) the sum of— “(i) the plan ceiling established for purposes of subsection (b)(2) (without regard to subsection (b)(3)), plus “(ii) the applicable dollar amount for the taxable year determined under section 414(v)(2)(B)(i), or “(B) the amount determined under the applicable subsection (without regard to this paragraph).”. (p) Amendments Relating to Section 632 of the Act.— (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.”. (2) Section 403(b) is amended by striking paragraph (6). (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”. (4) Section 415(c)(7) is amended to read as follows: “(7) Special rules relating to church plans.— “(A) Alternative contribution limitation.— “(i) In general.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. “(ii) $40,000 aggregate limitation.— The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. “(B) Number of years of service for duly ordained, commissioned, or licensed ministers or lay employees.— For purposes of this paragraph— “(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. “(C) Foreign missionaries.— In the case of any individual described in subparagraph (D) performing services outside the United States, contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such employee, when expressed as an annual addition to such employee's account, shall not be treated as exceeding the limitation of paragraph (1) if such annual addition is not in excess of the greater of $3,000 or the employee's includible compensation determined under section 403(b)(3). “(D) Annual addition.— For purposes of this paragraph, the term ‘annual addition’ has the meaning given such term by paragraph (2). “(E) Church, convention or association of churches.— For purposes of this paragraph, the terms ‘church’ and ‘convention or association of churches’ have the same meaning as when used in section 414(e).”. (5) Section 457(e)(5) is amended to read as follows: 26 USC 457. “(5) Includible compensation.— The term ‘includible compensation’ has the meaning given to the term ‘participant's compensation’ by section 415(c)(3).”. (6) Section 402(g)(7)(B) is amended by striking “2001.” and inserting “2001).”. (q) Amendments Relating to Section 643 of the Act.— (1) Section 401(a)(31)(C)(i) is amended by inserting “is a qualified trust which is part of a plan which is a defined contribution plan and” before “agrees”. (2) Section 402(c)(2) is amended by adding at the end the following flush sentence: “In the case of a transfer described in subparagraph (A) or (B), the amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).”. (r) Amendments Relating to Section 648 of the Act.— (1) Section 417(e) is amended— (A) in paragraph (1) by striking “exceed the dollar limit under section 411(a)(11)(A)” and inserting “exceed the amount that can be distributed without the participant's consent under section 411(a)(11)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 411(a)(11)(A)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 411(a)(11)”. (2) Section 205(g) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1055. (A) in paragraph (1) by striking “exceed the dollar limit under section 203(e)(1)” and inserting “exceed the amount that can be distributed without the participant's consent under section 203(e)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 203(e)(1)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 203(e)”. (s) Amendment Relating to Section 652 of the Act.— Section 404(a)(1)(D)(iv) is amended by striking “Plans maintained by professional service employers” and inserting “Special rule for terminating plans”. (t) Amendments Relating to Section 657 of the Act.— Section 404(c)(3) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1104. (1) by striking “the earlier of” in subparagraph (A) the second place it appears, and (2) by striking “if the transfer” and inserting “a transfer that”. (u) Amendments Relating to Section 659 of the Act.— (1) Section 4980F is amended— (A) in subsection (e)(1) by striking “written notice” and inserting “the notice described in paragraph (2)”, (B) by amending subsection (f)(2)(A) to read as follows: “(A) any defined benefit plan described in section 401(a) which includes a trust exempt from tax under section 501(a), or”, and (C) in subsection (f)(3) by striking “significantly” both places it appears. (2) Section 204(h)(9) of the Employee Retirement Income Security Act of 1974 is amended by striking “significantly” both places it appears. (3) Section 659(c)(3)(B) of the Economic Growth and Tax 26 USC 4980F note. Relief Reconciliation Act of 2001 is amended by striking “(or” and inserting “(and”. (v) Amendments Relating to Section 661 of the Act.— (1) Section 412(c)(9)(B) is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(i) Limitation.— A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (2) Section 302(c)(9)(B) of the Employee Retirement Income 29 USC 1082. Security Act of 1974 is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(iv) A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (w) Amendments Relating to Section 662 of the Act.— (1) Section 404(k) is amended— (A) in paragraph (1) by striking “during the taxable year”, (B) in paragraph (2)(B) by striking “(A)(iii)” and inserting “(A)(iv)”, (C) in paragraph (4)(B) by striking “(iii)” and inserting “(iv)”, and (D) by redesignating subparagraph (B) of paragraph (4) (as amended by subparagraph (C)) as subparagraph (C) of paragraph (4) and by inserting after subparagraph (A) the following new subparagraph: “(B) Reinvestment dividends.— For purposes of subparagraph (A), an applicable dividend reinvested pursuant to clause (iii)(II) of paragraph (2)(A) shall be treated as paid in the taxable year of the corporation in which such dividend is reinvested in qualifying employer securities or in which the election under clause (iii) of paragraph (2)(A) is made, whichever is later.”. (2) Section 404(k) is amended by adding at the end the following new paragraph: “(7) Full vesting.— In accordance with section 411, an applicable dividend described in clause (iii)(II) of paragraph (2)(A) shall be subject to the requirements of section 411(a)(1).”. (x) Effective Date.— Except as provided in subsection (c), 26 USC 25B note. the amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 to which they relate.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411 · 116 Stat. 21
Amended · 26 U.S.C. § 414(v)(5)(A)
Pub. L. 107–147, § 411(o)(7)(B), amended subpar. (A) generally. Prior to amendment, subpar (A) read as follows: “who has attained the age of 50 before the close of the plan year, and”
Source evidence
Code amendment note
Subsec. (v)(5)(A). Pub. L. 107–147, § 411(o)(7)(B), amended subpar. (A) generally. Prior to amendment, subpar (A) read as follows: “who has attained the age of 50 before the close of the plan year, and”.
Enacted provision · exact public law section
SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001. (a) Amendments Related to Section 101 of the Act.— (1) In general.— Subsection (b) of section 6428 is amended to read as follows: “(b) Credit Treated as Nonrefundable Personal Credit.— For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.”. (2) Conforming amendments.— “(A) Subsection (d) of section 6428 is amended to read as follows: “(d) Coordination with Advance Refunds of Credit.— “(1) In general.— The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). “(2) Joint returns.— In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.”. (B) Paragraph (2) of section 6428(e) is amended to read as follows: “(2) Advance refund amount.— For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if— “(A) this section (other than subsections (b) and (d) and this subsection) had applied to such taxable year, and “(B) the credit for such taxable year were not allowed to exceed the excess (if any) of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).”. (b) Amendment Related to Section 201 of the Act..— Subparagraph (B) of section 24(d)(1) is amended by striking 26 USC 24. “amount of credit allowed by this section” and inserting “aggregate amount of credits allowed by this subpart”. (c) Amendments Related to Section 202 of the Act.— (1) Corrections to credit for adoption expenses.— (A) Paragraph (1) of section 23(a) is amended to read as follows: “(1) In general.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.”. (B) Subsection (a) of section 23 is amended by adding at the end the following new paragraph: “(3) $10,000 credit for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.”. (C) Paragraph (2) of section 23(a) is amended by striking the last sentence. (D) Paragraph (1) of section 23(b) is amended by striking “subsection (a)(1)(A)” and inserting “subsection (a)”. (E) Subsection (i) of section 23 is amended by striking “the dollar limitation in subsection (b)(1)” and inserting “the dollar amounts in subsections (a)(3) and (b)(1)”. (F) Expenses paid or incurred during any taxable year 26 USC 23 note. , beginning before January 1, 2002, may be taken into account in determining the credit under section 23 of the Internal Revenue Code of 1986 only to the extent the aggregate of such expenses does not exceed the applicable limitation under section 23(b)(1) of such Code as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001. (2) Corrections to exclusion for employer-provided adoption assistance.— (A) Subsection (a) of section 137 is amended to read as follows: “(a) Exclusion.— “(1) In general.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program. “(2) $10,000 exclusion for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the qualified adoption expenses with respect to such adoption for such year shall be increased by an amount equal to the excess (if any) of $10,000 over the actual aggregate qualified adoption expenses with respect to such adoption during such taxable year and all prior taxable years.”. (B) Paragraph (2) of section 137(b) is amended by striking “subsection (a)(1)” and inserting “subsection (a)”. (3) Effective date.— The amendments made by this subsection 26 USC 23 note. shall apply to taxable years beginning after December 31, 2002; except that the amendments made by paragraphs (1)(C), (1)(D), and (2)(B) shall apply to taxable years beginning after December 31, 2001. (d) Amendments Related to Section 205 of the Act.— (1) Section 45F(d)(4)(B) is amended by striking “subpart A, B, or D of this part” and inserting “this chapter or for purposes of section 55”. (2) Section 38(b)(15) is amended by striking “45F” and inserting “45F(a)”. (e) Amendments Related to Section 301 of the Act.— (1) Section 63(c)(2) is amended— (A) in subparagraph (A), by striking “subparagraph (C)” and inserting “subparagraph (D)”, (B) by striking “or” at the end of subparagraph (B), (C) by redesignating subparagraph (C) as subparagraph (D), (D) by inserting after subparagraph (B) the following new subparagraph: “(C) one-half of the amount in effect under subparagraph (A) in the case of a married individual filing a separate return, or”, and (E) by inserting the following flush sentence at the end: “If any amount determined under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.”. (2) (A) Section 63(c)(4) is amended by striking “paragraph (2) or (5)” and inserting “paragraph (2)(B), (2)(1)), or (5)”. (B) Section 63(c)(4)(B)(i) is amended by striking “paragraph (2)” and inserting “paragraph (2)(B), (2)(D),”. (C) Section 63(c)(4) is amended by striking the flush sentence at the end (as added by section 301(c)(2) of Public Law 107-17). (f) Amendment Related to Section 401 of the Act.— Section 530(d)(4)(B)(iv) is amended by striking “because the taxpayer elected under paragraph (2)(C) to waive the application of paragraph (2)” and inserting “by application of paragraph (2)(C)(i)(II)”. (g) Amendments Related to Section 511 of the Act.— (1) Section 2511(c) is amended by striking “taxable gift under section 2503,” and inserting “transfer of property by gift,”. (2) Section 2101(b) is amended by striking the last sentence, (h) Amendment Related to Section 532 of the Act.— Section 2016 is amended by striking “any State, any possession of the United States, or the District of Columbia,”. (i) Amendments Relating to Section 602 of the Act.— (1) Subparagraph (A) of section 408(q)(3) is amended to read as follows: “(A) Qualified employer plan.— The term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”. (2) Section 4(c) of Employee Retirement Income Security Act of 1974 is amended— 29 USC 1003. (A) by inserting “and part 5 (relating to administration and enforcement)” before the period at the end, and (B) by adding at the end the following new sentence: “Such provisions shall apply to such accounts and annuities Applicability. in a manner similar to their application to a simplified employee pension under section 408(k) of the Internal Revenue Code of 1986.”. (j) Amendments Relating to Section 611 of the Act.— (1) Section 408(k) is amended— 26 USC 408. (A) in paragraph (2)(C) by striking “$300” and inserting “$450”, and (B) in paragraph (8) by striking “$300” both places it appears and inserting “$450”. (2) Section 409(o)(1)(C)(ii) is amended— (A) by striking “$500,000” both places it appears and inserting “$800,000”, and (B) by striking “$100,000” and inserting “$160,000”. (3) Section 611(i) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by adding at the end 26 USC 415 note. the following new paragraph: “(3) Special rule.— In the case of plan that, on June 7, 2001, incorporated by reference the limitation of section 415(b)(1)(A) of the Internal Revenue Code of 1986, section 411(d)(6) of such Code and section 204(g)(1) of the Employee Retirement Income Security Act of 1974 do not apply to a plan amendment that— “(A) is adopted on or before June 30, 2002, “(B) reduces benefits to the level that would have applied without regard to the amendments made by subsection (a) of this section, and “(C) is effective no earlier than the years described in paragraph (2).”. (k) Amendments Relating to Section 613 of the Act.— (1) Section 416(c)(1)(C)(iii) is amended by striking “Exception for frozen plan” and inserting “exception for plan under which no key employee (or former key employee) benefits for plan year”. (2) Section 416(g)(3)(B) is amended by striking “separation from service” and inserting “severance from employment”. (l) Amendments Relating to Sections 614 and 616 of the Act.— (1) Section 404(a)(12) is amended by striking “(9),” and inserting “(9) and subsection (h)(1)(C),”. (2) Section 404(n) is amended by striking “subsection (a),” and inserting “subsection (a) or paragraph (1)(C) of subsection (h)”. (3) Section 402(h)(2)(A) is amended by striking “15 percent” and inserting “25 percent”. (4) Section 404(a)(7)(C) is amended to read as follows: “(C) Paragraph not to apply in certain cases.— “(i) Beneficiary test.— This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than 1 trust or under a trust and an annuity plan. “(ii) Elective deferrals.— If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.”. (m) Amendment Relating to Section 618 of the Act.— 26 USC 25B. Section 25B(d)(2)(A) is amended to read as follows: “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”. (n) Amendments Relating to Section 619 of the Act.— (1) Section 45E(e)(1) is amended by striking “(n)” and inserting “(m)”. (2) Section 619(d) of the Economic Growth and Tax Relief 26 USC 38 note. Reconciliation Act of 2001 is amended by striking “established” and inserting “first effective”. (o) Amendments Relating to Section 631 of the Act.— (1) Section 402(g)(1) is amended by adding at the end the following: “(C) Catch-up contributions.— In addition to subparagraph (A), in the case of an eligible participant (as defined in section 414(v)), gross income shall not include elective deferrals in excess of the applicable dollar amount under subparagraph (B) to the extent that the amount of such elective deferrals does not exceed the applicable dollar amount under section 414(v)(2)(B)(i) for the taxable year (without regard to the treatment of the elective deferrals by an applicable employer plan under section 414(v)).”. (2) Section 401(a)(30) is amended by striking “402(g)(1)” and inserting “402(g)(1)(A)”. (3) Section 414(v)(2) is amended by adding at the end the following: “(D) Aggregation of plans.— For purposes of this paragraph, plans described in clauses (i), (ii), and (iv) of paragraph (6)(A) that are maintained by the same employer (as determined under subsection (b), (c), (m) or (o)) shall be treated as a single plan, and plans described in clause (iii) of paragraph (6)(A) that are maintained by the same employer shall be treated as a single plan.”. (4) Section 414(v)(3)(A)(i) is amended by striking “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457” and inserting “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))”. (5) Section 414(v)(3)(B) is amended by striking “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416” and inserting “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416”. (6) Section 414(v)(4)(B) is amended by inserting before 26 USC 414. the period at the end the following: “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”. (7) Section 414(v)(5) is amended— (A) by striking “, with respect to any plan year,” in the matter preceding subparagraph (A), (B) by amending subparagraph (A) to read as follows: “(A) who would attain age 50 by the end of the taxable year,”, and (C) in subparagraph (B) by striking “plan year” and inserting “plan (or other applicable) year”. (8) Section 414(v)(6)(C) is amended to read as follows: “(C) Exception for section 457 plans.—This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).”. (9) Section 457(e) is amended by adding at the end the following new paragraph: “(18) Coordination with catch-up contributions for individuals age 50 or older.— In the case of an individual who is an eligible participant (as defined by section 414(v)) and who is a participant in an eligible deferred compensation plan of an employer described in paragraph (I)(A), subsections (b)(3) and (c) shall be applied by substituting for the amount otherwise determined under the applicable subsection the greater of— “(A) the sum of— “(i) the plan ceiling established for purposes of subsection (b)(2) (without regard to subsection (b)(3)), plus “(ii) the applicable dollar amount for the taxable year determined under section 414(v)(2)(B)(i), or “(B) the amount determined under the applicable subsection (without regard to this paragraph).”. (p) Amendments Relating to Section 632 of the Act.— (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.”. (2) Section 403(b) is amended by striking paragraph (6). (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”. (4) Section 415(c)(7) is amended to read as follows: “(7) Special rules relating to church plans.— “(A) Alternative contribution limitation.— “(i) In general.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. “(ii) $40,000 aggregate limitation.— The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. “(B) Number of years of service for duly ordained, commissioned, or licensed ministers or lay employees.— For purposes of this paragraph— “(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. “(C) Foreign missionaries.— In the case of any individual described in subparagraph (D) performing services outside the United States, contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such employee, when expressed as an annual addition to such employee's account, shall not be treated as exceeding the limitation of paragraph (1) if such annual addition is not in excess of the greater of $3,000 or the employee's includible compensation determined under section 403(b)(3). “(D) Annual addition.— For purposes of this paragraph, the term ‘annual addition’ has the meaning given such term by paragraph (2). “(E) Church, convention or association of churches.— For purposes of this paragraph, the terms ‘church’ and ‘convention or association of churches’ have the same meaning as when used in section 414(e).”. (5) Section 457(e)(5) is amended to read as follows: 26 USC 457. “(5) Includible compensation.— The term ‘includible compensation’ has the meaning given to the term ‘participant's compensation’ by section 415(c)(3).”. (6) Section 402(g)(7)(B) is amended by striking “2001.” and inserting “2001).”. (q) Amendments Relating to Section 643 of the Act.— (1) Section 401(a)(31)(C)(i) is amended by inserting “is a qualified trust which is part of a plan which is a defined contribution plan and” before “agrees”. (2) Section 402(c)(2) is amended by adding at the end the following flush sentence: “In the case of a transfer described in subparagraph (A) or (B), the amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).”. (r) Amendments Relating to Section 648 of the Act.— (1) Section 417(e) is amended— (A) in paragraph (1) by striking “exceed the dollar limit under section 411(a)(11)(A)” and inserting “exceed the amount that can be distributed without the participant's consent under section 411(a)(11)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 411(a)(11)(A)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 411(a)(11)”. (2) Section 205(g) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1055. (A) in paragraph (1) by striking “exceed the dollar limit under section 203(e)(1)” and inserting “exceed the amount that can be distributed without the participant's consent under section 203(e)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 203(e)(1)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 203(e)”. (s) Amendment Relating to Section 652 of the Act.— Section 404(a)(1)(D)(iv) is amended by striking “Plans maintained by professional service employers” and inserting “Special rule for terminating plans”. (t) Amendments Relating to Section 657 of the Act.— Section 404(c)(3) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1104. (1) by striking “the earlier of” in subparagraph (A) the second place it appears, and (2) by striking “if the transfer” and inserting “a transfer that”. (u) Amendments Relating to Section 659 of the Act.— (1) Section 4980F is amended— (A) in subsection (e)(1) by striking “written notice” and inserting “the notice described in paragraph (2)”, (B) by amending subsection (f)(2)(A) to read as follows: “(A) any defined benefit plan described in section 401(a) which includes a trust exempt from tax under section 501(a), or”, and (C) in subsection (f)(3) by striking “significantly” both places it appears. (2) Section 204(h)(9) of the Employee Retirement Income Security Act of 1974 is amended by striking “significantly” both places it appears. (3) Section 659(c)(3)(B) of the Economic Growth and Tax 26 USC 4980F note. Relief Reconciliation Act of 2001 is amended by striking “(or” and inserting “(and”. (v) Amendments Relating to Section 661 of the Act.— (1) Section 412(c)(9)(B) is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(i) Limitation.— A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (2) Section 302(c)(9)(B) of the Employee Retirement Income 29 USC 1082. Security Act of 1974 is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(iv) A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (w) Amendments Relating to Section 662 of the Act.— (1) Section 404(k) is amended— (A) in paragraph (1) by striking “during the taxable year”, (B) in paragraph (2)(B) by striking “(A)(iii)” and inserting “(A)(iv)”, (C) in paragraph (4)(B) by striking “(iii)” and inserting “(iv)”, and (D) by redesignating subparagraph (B) of paragraph (4) (as amended by subparagraph (C)) as subparagraph (C) of paragraph (4) and by inserting after subparagraph (A) the following new subparagraph: “(B) Reinvestment dividends.— For purposes of subparagraph (A), an applicable dividend reinvested pursuant to clause (iii)(II) of paragraph (2)(A) shall be treated as paid in the taxable year of the corporation in which such dividend is reinvested in qualifying employer securities or in which the election under clause (iii) of paragraph (2)(A) is made, whichever is later.”. (2) Section 404(k) is amended by adding at the end the following new paragraph: “(7) Full vesting.— In accordance with section 411, an applicable dividend described in clause (iii)(II) of paragraph (2)(A) shall be subject to the requirements of section 411(a)(1).”. (x) Effective Date.— Except as provided in subsection (c), 26 USC 25B note. the amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 to which they relate.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411 · 116 Stat. 21
Substituted · 26 U.S.C. § 414(v)(5)(B)
Pub. L. 107–147, § 411(o)(7)(C), substituted “plan (or other applicable) year” for “plan year”
Source evidence
Code amendment note
Subsec. (v)(5)(B). Pub. L. 107–147, § 411(o)(7)(C), substituted “plan (or other applicable) year” for “plan year”.
Enacted provision · exact public law section
SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001. (a) Amendments Related to Section 101 of the Act.— (1) In general.— Subsection (b) of section 6428 is amended to read as follows: “(b) Credit Treated as Nonrefundable Personal Credit.— For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.”. (2) Conforming amendments.— “(A) Subsection (d) of section 6428 is amended to read as follows: “(d) Coordination with Advance Refunds of Credit.— “(1) In general.— The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). “(2) Joint returns.— In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.”. (B) Paragraph (2) of section 6428(e) is amended to read as follows: “(2) Advance refund amount.— For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if— “(A) this section (other than subsections (b) and (d) and this subsection) had applied to such taxable year, and “(B) the credit for such taxable year were not allowed to exceed the excess (if any) of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).”. (b) Amendment Related to Section 201 of the Act..— Subparagraph (B) of section 24(d)(1) is amended by striking 26 USC 24. “amount of credit allowed by this section” and inserting “aggregate amount of credits allowed by this subpart”. (c) Amendments Related to Section 202 of the Act.— (1) Corrections to credit for adoption expenses.— (A) Paragraph (1) of section 23(a) is amended to read as follows: “(1) In general.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.”. (B) Subsection (a) of section 23 is amended by adding at the end the following new paragraph: “(3) $10,000 credit for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.”. (C) Paragraph (2) of section 23(a) is amended by striking the last sentence. (D) Paragraph (1) of section 23(b) is amended by striking “subsection (a)(1)(A)” and inserting “subsection (a)”. (E) Subsection (i) of section 23 is amended by striking “the dollar limitation in subsection (b)(1)” and inserting “the dollar amounts in subsections (a)(3) and (b)(1)”. (F) Expenses paid or incurred during any taxable year 26 USC 23 note. , beginning before January 1, 2002, may be taken into account in determining the credit under section 23 of the Internal Revenue Code of 1986 only to the extent the aggregate of such expenses does not exceed the applicable limitation under section 23(b)(1) of such Code as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001. (2) Corrections to exclusion for employer-provided adoption assistance.— (A) Subsection (a) of section 137 is amended to read as follows: “(a) Exclusion.— “(1) In general.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program. “(2) $10,000 exclusion for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the qualified adoption expenses with respect to such adoption for such year shall be increased by an amount equal to the excess (if any) of $10,000 over the actual aggregate qualified adoption expenses with respect to such adoption during such taxable year and all prior taxable years.”. (B) Paragraph (2) of section 137(b) is amended by striking “subsection (a)(1)” and inserting “subsection (a)”. (3) Effective date.— The amendments made by this subsection 26 USC 23 note. shall apply to taxable years beginning after December 31, 2002; except that the amendments made by paragraphs (1)(C), (1)(D), and (2)(B) shall apply to taxable years beginning after December 31, 2001. (d) Amendments Related to Section 205 of the Act.— (1) Section 45F(d)(4)(B) is amended by striking “subpart A, B, or D of this part” and inserting “this chapter or for purposes of section 55”. (2) Section 38(b)(15) is amended by striking “45F” and inserting “45F(a)”. (e) Amendments Related to Section 301 of the Act.— (1) Section 63(c)(2) is amended— (A) in subparagraph (A), by striking “subparagraph (C)” and inserting “subparagraph (D)”, (B) by striking “or” at the end of subparagraph (B), (C) by redesignating subparagraph (C) as subparagraph (D), (D) by inserting after subparagraph (B) the following new subparagraph: “(C) one-half of the amount in effect under subparagraph (A) in the case of a married individual filing a separate return, or”, and (E) by inserting the following flush sentence at the end: “If any amount determined under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.”. (2) (A) Section 63(c)(4) is amended by striking “paragraph (2) or (5)” and inserting “paragraph (2)(B), (2)(1)), or (5)”. (B) Section 63(c)(4)(B)(i) is amended by striking “paragraph (2)” and inserting “paragraph (2)(B), (2)(D),”. (C) Section 63(c)(4) is amended by striking the flush sentence at the end (as added by section 301(c)(2) of Public Law 107-17). (f) Amendment Related to Section 401 of the Act.— Section 530(d)(4)(B)(iv) is amended by striking “because the taxpayer elected under paragraph (2)(C) to waive the application of paragraph (2)” and inserting “by application of paragraph (2)(C)(i)(II)”. (g) Amendments Related to Section 511 of the Act.— (1) Section 2511(c) is amended by striking “taxable gift under section 2503,” and inserting “transfer of property by gift,”. (2) Section 2101(b) is amended by striking the last sentence, (h) Amendment Related to Section 532 of the Act.— Section 2016 is amended by striking “any State, any possession of the United States, or the District of Columbia,”. (i) Amendments Relating to Section 602 of the Act.— (1) Subparagraph (A) of section 408(q)(3) is amended to read as follows: “(A) Qualified employer plan.— The term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”. (2) Section 4(c) of Employee Retirement Income Security Act of 1974 is amended— 29 USC 1003. (A) by inserting “and part 5 (relating to administration and enforcement)” before the period at the end, and (B) by adding at the end the following new sentence: “Such provisions shall apply to such accounts and annuities Applicability. in a manner similar to their application to a simplified employee pension under section 408(k) of the Internal Revenue Code of 1986.”. (j) Amendments Relating to Section 611 of the Act.— (1) Section 408(k) is amended— 26 USC 408. (A) in paragraph (2)(C) by striking “$300” and inserting “$450”, and (B) in paragraph (8) by striking “$300” both places it appears and inserting “$450”. (2) Section 409(o)(1)(C)(ii) is amended— (A) by striking “$500,000” both places it appears and inserting “$800,000”, and (B) by striking “$100,000” and inserting “$160,000”. (3) Section 611(i) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by adding at the end 26 USC 415 note. the following new paragraph: “(3) Special rule.— In the case of plan that, on June 7, 2001, incorporated by reference the limitation of section 415(b)(1)(A) of the Internal Revenue Code of 1986, section 411(d)(6) of such Code and section 204(g)(1) of the Employee Retirement Income Security Act of 1974 do not apply to a plan amendment that— “(A) is adopted on or before June 30, 2002, “(B) reduces benefits to the level that would have applied without regard to the amendments made by subsection (a) of this section, and “(C) is effective no earlier than the years described in paragraph (2).”. (k) Amendments Relating to Section 613 of the Act.— (1) Section 416(c)(1)(C)(iii) is amended by striking “Exception for frozen plan” and inserting “exception for plan under which no key employee (or former key employee) benefits for plan year”. (2) Section 416(g)(3)(B) is amended by striking “separation from service” and inserting “severance from employment”. (l) Amendments Relating to Sections 614 and 616 of the Act.— (1) Section 404(a)(12) is amended by striking “(9),” and inserting “(9) and subsection (h)(1)(C),”. (2) Section 404(n) is amended by striking “subsection (a),” and inserting “subsection (a) or paragraph (1)(C) of subsection (h)”. (3) Section 402(h)(2)(A) is amended by striking “15 percent” and inserting “25 percent”. (4) Section 404(a)(7)(C) is amended to read as follows: “(C) Paragraph not to apply in certain cases.— “(i) Beneficiary test.— This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than 1 trust or under a trust and an annuity plan. “(ii) Elective deferrals.— If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.”. (m) Amendment Relating to Section 618 of the Act.— 26 USC 25B. Section 25B(d)(2)(A) is amended to read as follows: “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”. (n) Amendments Relating to Section 619 of the Act.— (1) Section 45E(e)(1) is amended by striking “(n)” and inserting “(m)”. (2) Section 619(d) of the Economic Growth and Tax Relief 26 USC 38 note. Reconciliation Act of 2001 is amended by striking “established” and inserting “first effective”. (o) Amendments Relating to Section 631 of the Act.— (1) Section 402(g)(1) is amended by adding at the end the following: “(C) Catch-up contributions.— In addition to subparagraph (A), in the case of an eligible participant (as defined in section 414(v)), gross income shall not include elective deferrals in excess of the applicable dollar amount under subparagraph (B) to the extent that the amount of such elective deferrals does not exceed the applicable dollar amount under section 414(v)(2)(B)(i) for the taxable year (without regard to the treatment of the elective deferrals by an applicable employer plan under section 414(v)).”. (2) Section 401(a)(30) is amended by striking “402(g)(1)” and inserting “402(g)(1)(A)”. (3) Section 414(v)(2) is amended by adding at the end the following: “(D) Aggregation of plans.— For purposes of this paragraph, plans described in clauses (i), (ii), and (iv) of paragraph (6)(A) that are maintained by the same employer (as determined under subsection (b), (c), (m) or (o)) shall be treated as a single plan, and plans described in clause (iii) of paragraph (6)(A) that are maintained by the same employer shall be treated as a single plan.”. (4) Section 414(v)(3)(A)(i) is amended by striking “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457” and inserting “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))”. (5) Section 414(v)(3)(B) is amended by striking “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416” and inserting “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416”. (6) Section 414(v)(4)(B) is amended by inserting before 26 USC 414. the period at the end the following: “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”. (7) Section 414(v)(5) is amended— (A) by striking “, with respect to any plan year,” in the matter preceding subparagraph (A), (B) by amending subparagraph (A) to read as follows: “(A) who would attain age 50 by the end of the taxable year,”, and (C) in subparagraph (B) by striking “plan year” and inserting “plan (or other applicable) year”. (8) Section 414(v)(6)(C) is amended to read as follows: “(C) Exception for section 457 plans.—This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).”. (9) Section 457(e) is amended by adding at the end the following new paragraph: “(18) Coordination with catch-up contributions for individuals age 50 or older.— In the case of an individual who is an eligible participant (as defined by section 414(v)) and who is a participant in an eligible deferred compensation plan of an employer described in paragraph (I)(A), subsections (b)(3) and (c) shall be applied by substituting for the amount otherwise determined under the applicable subsection the greater of— “(A) the sum of— “(i) the plan ceiling established for purposes of subsection (b)(2) (without regard to subsection (b)(3)), plus “(ii) the applicable dollar amount for the taxable year determined under section 414(v)(2)(B)(i), or “(B) the amount determined under the applicable subsection (without regard to this paragraph).”. (p) Amendments Relating to Section 632 of the Act.— (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.”. (2) Section 403(b) is amended by striking paragraph (6). (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”. (4) Section 415(c)(7) is amended to read as follows: “(7) Special rules relating to church plans.— “(A) Alternative contribution limitation.— “(i) In general.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. “(ii) $40,000 aggregate limitation.— The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. “(B) Number of years of service for duly ordained, commissioned, or licensed ministers or lay employees.— For purposes of this paragraph— “(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. “(C) Foreign missionaries.— In the case of any individual described in subparagraph (D) performing services outside the United States, contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such employee, when expressed as an annual addition to such employee's account, shall not be treated as exceeding the limitation of paragraph (1) if such annual addition is not in excess of the greater of $3,000 or the employee's includible compensation determined under section 403(b)(3). “(D) Annual addition.— For purposes of this paragraph, the term ‘annual addition’ has the meaning given such term by paragraph (2). “(E) Church, convention or association of churches.— For purposes of this paragraph, the terms ‘church’ and ‘convention or association of churches’ have the same meaning as when used in section 414(e).”. (5) Section 457(e)(5) is amended to read as follows: 26 USC 457. “(5) Includible compensation.— The term ‘includible compensation’ has the meaning given to the term ‘participant's compensation’ by section 415(c)(3).”. (6) Section 402(g)(7)(B) is amended by striking “2001.” and inserting “2001).”. (q) Amendments Relating to Section 643 of the Act.— (1) Section 401(a)(31)(C)(i) is amended by inserting “is a qualified trust which is part of a plan which is a defined contribution plan and” before “agrees”. (2) Section 402(c)(2) is amended by adding at the end the following flush sentence: “In the case of a transfer described in subparagraph (A) or (B), the amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).”. (r) Amendments Relating to Section 648 of the Act.— (1) Section 417(e) is amended— (A) in paragraph (1) by striking “exceed the dollar limit under section 411(a)(11)(A)” and inserting “exceed the amount that can be distributed without the participant's consent under section 411(a)(11)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 411(a)(11)(A)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 411(a)(11)”. (2) Section 205(g) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1055. (A) in paragraph (1) by striking “exceed the dollar limit under section 203(e)(1)” and inserting “exceed the amount that can be distributed without the participant's consent under section 203(e)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 203(e)(1)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 203(e)”. (s) Amendment Relating to Section 652 of the Act.— Section 404(a)(1)(D)(iv) is amended by striking “Plans maintained by professional service employers” and inserting “Special rule for terminating plans”. (t) Amendments Relating to Section 657 of the Act.— Section 404(c)(3) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1104. (1) by striking “the earlier of” in subparagraph (A) the second place it appears, and (2) by striking “if the transfer” and inserting “a transfer that”. (u) Amendments Relating to Section 659 of the Act.— (1) Section 4980F is amended— (A) in subsection (e)(1) by striking “written notice” and inserting “the notice described in paragraph (2)”, (B) by amending subsection (f)(2)(A) to read as follows: “(A) any defined benefit plan described in section 401(a) which includes a trust exempt from tax under section 501(a), or”, and (C) in subsection (f)(3) by striking “significantly” both places it appears. (2) Section 204(h)(9) of the Employee Retirement Income Security Act of 1974 is amended by striking “significantly” both places it appears. (3) Section 659(c)(3)(B) of the Economic Growth and Tax 26 USC 4980F note. Relief Reconciliation Act of 2001 is amended by striking “(or” and inserting “(and”. (v) Amendments Relating to Section 661 of the Act.— (1) Section 412(c)(9)(B) is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(i) Limitation.— A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (2) Section 302(c)(9)(B) of the Employee Retirement Income 29 USC 1082. Security Act of 1974 is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(iv) A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (w) Amendments Relating to Section 662 of the Act.— (1) Section 404(k) is amended— (A) in paragraph (1) by striking “during the taxable year”, (B) in paragraph (2)(B) by striking “(A)(iii)” and inserting “(A)(iv)”, (C) in paragraph (4)(B) by striking “(iii)” and inserting “(iv)”, and (D) by redesignating subparagraph (B) of paragraph (4) (as amended by subparagraph (C)) as subparagraph (C) of paragraph (4) and by inserting after subparagraph (A) the following new subparagraph: “(B) Reinvestment dividends.— For purposes of subparagraph (A), an applicable dividend reinvested pursuant to clause (iii)(II) of paragraph (2)(A) shall be treated as paid in the taxable year of the corporation in which such dividend is reinvested in qualifying employer securities or in which the election under clause (iii) of paragraph (2)(A) is made, whichever is later.”. (2) Section 404(k) is amended by adding at the end the following new paragraph: “(7) Full vesting.— In accordance with section 411, an applicable dividend described in clause (iii)(II) of paragraph (2)(A) shall be subject to the requirements of section 411(a)(1).”. (x) Effective Date.— Except as provided in subsection (c), 26 USC 25B note. the amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 to which they relate.
2002
Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411 · 116 Stat. 21
Amended · 26 U.S.C. § 414(v)(6)(C)
Pub. L. 107–147, § 411(o)(8), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “This subsection shall not apply to an applicable employer plan described in subparagraph (A)(iii) for any year to which section 457(b)(3) applies.”
Source evidence
Code amendment note
Subsec. (v)(6)(C). Pub. L. 107–147, § 411(o)(8), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “This subsection shall not apply to an applicable employer plan described in subparagraph (A)(iii) for any year to which section 457(b)(3) applies.”
Enacted provision · exact public law section
SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001. (a) Amendments Related to Section 101 of the Act.— (1) In general.— Subsection (b) of section 6428 is amended to read as follows: “(b) Credit Treated as Nonrefundable Personal Credit.— For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.”. (2) Conforming amendments.— “(A) Subsection (d) of section 6428 is amended to read as follows: “(d) Coordination with Advance Refunds of Credit.— “(1) In general.— The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). “(2) Joint returns.— In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.”. (B) Paragraph (2) of section 6428(e) is amended to read as follows: “(2) Advance refund amount.— For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if— “(A) this section (other than subsections (b) and (d) and this subsection) had applied to such taxable year, and “(B) the credit for such taxable year were not allowed to exceed the excess (if any) of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).”. (b) Amendment Related to Section 201 of the Act..— Subparagraph (B) of section 24(d)(1) is amended by striking 26 USC 24. “amount of credit allowed by this section” and inserting “aggregate amount of credits allowed by this subpart”. (c) Amendments Related to Section 202 of the Act.— (1) Corrections to credit for adoption expenses.— (A) Paragraph (1) of section 23(a) is amended to read as follows: “(1) In general.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.”. (B) Subsection (a) of section 23 is amended by adding at the end the following new paragraph: “(3) $10,000 credit for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.”. (C) Paragraph (2) of section 23(a) is amended by striking the last sentence. (D) Paragraph (1) of section 23(b) is amended by striking “subsection (a)(1)(A)” and inserting “subsection (a)”. (E) Subsection (i) of section 23 is amended by striking “the dollar limitation in subsection (b)(1)” and inserting “the dollar amounts in subsections (a)(3) and (b)(1)”. (F) Expenses paid or incurred during any taxable year 26 USC 23 note. , beginning before January 1, 2002, may be taken into account in determining the credit under section 23 of the Internal Revenue Code of 1986 only to the extent the aggregate of such expenses does not exceed the applicable limitation under section 23(b)(1) of such Code as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001. (2) Corrections to exclusion for employer-provided adoption assistance.— (A) Subsection (a) of section 137 is amended to read as follows: “(a) Exclusion.— “(1) In general.— Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program. “(2) $10,000 exclusion for adoption of child with special needs regardless of expenses.— In the case of an adoption of a child with special needs which becomes final during a taxable year, the qualified adoption expenses with respect to such adoption for such year shall be increased by an amount equal to the excess (if any) of $10,000 over the actual aggregate qualified adoption expenses with respect to such adoption during such taxable year and all prior taxable years.”. (B) Paragraph (2) of section 137(b) is amended by striking “subsection (a)(1)” and inserting “subsection (a)”. (3) Effective date.— The amendments made by this subsection 26 USC 23 note. shall apply to taxable years beginning after December 31, 2002; except that the amendments made by paragraphs (1)(C), (1)(D), and (2)(B) shall apply to taxable years beginning after December 31, 2001. (d) Amendments Related to Section 205 of the Act.— (1) Section 45F(d)(4)(B) is amended by striking “subpart A, B, or D of this part” and inserting “this chapter or for purposes of section 55”. (2) Section 38(b)(15) is amended by striking “45F” and inserting “45F(a)”. (e) Amendments Related to Section 301 of the Act.— (1) Section 63(c)(2) is amended— (A) in subparagraph (A), by striking “subparagraph (C)” and inserting “subparagraph (D)”, (B) by striking “or” at the end of subparagraph (B), (C) by redesignating subparagraph (C) as subparagraph (D), (D) by inserting after subparagraph (B) the following new subparagraph: “(C) one-half of the amount in effect under subparagraph (A) in the case of a married individual filing a separate return, or”, and (E) by inserting the following flush sentence at the end: “If any amount determined under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.”. (2) (A) Section 63(c)(4) is amended by striking “paragraph (2) or (5)” and inserting “paragraph (2)(B), (2)(1)), or (5)”. (B) Section 63(c)(4)(B)(i) is amended by striking “paragraph (2)” and inserting “paragraph (2)(B), (2)(D),”. (C) Section 63(c)(4) is amended by striking the flush sentence at the end (as added by section 301(c)(2) of Public Law 107-17). (f) Amendment Related to Section 401 of the Act.— Section 530(d)(4)(B)(iv) is amended by striking “because the taxpayer elected under paragraph (2)(C) to waive the application of paragraph (2)” and inserting “by application of paragraph (2)(C)(i)(II)”. (g) Amendments Related to Section 511 of the Act.— (1) Section 2511(c) is amended by striking “taxable gift under section 2503,” and inserting “transfer of property by gift,”. (2) Section 2101(b) is amended by striking the last sentence, (h) Amendment Related to Section 532 of the Act.— Section 2016 is amended by striking “any State, any possession of the United States, or the District of Columbia,”. (i) Amendments Relating to Section 602 of the Act.— (1) Subparagraph (A) of section 408(q)(3) is amended to read as follows: “(A) Qualified employer plan.— The term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).”. (2) Section 4(c) of Employee Retirement Income Security Act of 1974 is amended— 29 USC 1003. (A) by inserting “and part 5 (relating to administration and enforcement)” before the period at the end, and (B) by adding at the end the following new sentence: “Such provisions shall apply to such accounts and annuities Applicability. in a manner similar to their application to a simplified employee pension under section 408(k) of the Internal Revenue Code of 1986.”. (j) Amendments Relating to Section 611 of the Act.— (1) Section 408(k) is amended— 26 USC 408. (A) in paragraph (2)(C) by striking “$300” and inserting “$450”, and (B) in paragraph (8) by striking “$300” both places it appears and inserting “$450”. (2) Section 409(o)(1)(C)(ii) is amended— (A) by striking “$500,000” both places it appears and inserting “$800,000”, and (B) by striking “$100,000” and inserting “$160,000”. (3) Section 611(i) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by adding at the end 26 USC 415 note. the following new paragraph: “(3) Special rule.— In the case of plan that, on June 7, 2001, incorporated by reference the limitation of section 415(b)(1)(A) of the Internal Revenue Code of 1986, section 411(d)(6) of such Code and section 204(g)(1) of the Employee Retirement Income Security Act of 1974 do not apply to a plan amendment that— “(A) is adopted on or before June 30, 2002, “(B) reduces benefits to the level that would have applied without regard to the amendments made by subsection (a) of this section, and “(C) is effective no earlier than the years described in paragraph (2).”. (k) Amendments Relating to Section 613 of the Act.— (1) Section 416(c)(1)(C)(iii) is amended by striking “Exception for frozen plan” and inserting “exception for plan under which no key employee (or former key employee) benefits for plan year”. (2) Section 416(g)(3)(B) is amended by striking “separation from service” and inserting “severance from employment”. (l) Amendments Relating to Sections 614 and 616 of the Act.— (1) Section 404(a)(12) is amended by striking “(9),” and inserting “(9) and subsection (h)(1)(C),”. (2) Section 404(n) is amended by striking “subsection (a),” and inserting “subsection (a) or paragraph (1)(C) of subsection (h)”. (3) Section 402(h)(2)(A) is amended by striking “15 percent” and inserting “25 percent”. (4) Section 404(a)(7)(C) is amended to read as follows: “(C) Paragraph not to apply in certain cases.— “(i) Beneficiary test.— This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than 1 trust or under a trust and an annuity plan. “(ii) Elective deferrals.— If, in connection with 1 or more defined contribution plans and 1 or more defined benefit plans, no amounts (other than elective deferrals (as defined in section 402(g)(3))) are contributed to any of the defined contribution plans for the taxable year, then subparagraph (A) shall not apply with respect to any of such defined contribution plans and defined benefit plans.”. (m) Amendment Relating to Section 618 of the Act.— 26 USC 25B. Section 25B(d)(2)(A) is amended to read as follows: “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”. (n) Amendments Relating to Section 619 of the Act.— (1) Section 45E(e)(1) is amended by striking “(n)” and inserting “(m)”. (2) Section 619(d) of the Economic Growth and Tax Relief 26 USC 38 note. Reconciliation Act of 2001 is amended by striking “established” and inserting “first effective”. (o) Amendments Relating to Section 631 of the Act.— (1) Section 402(g)(1) is amended by adding at the end the following: “(C) Catch-up contributions.— In addition to subparagraph (A), in the case of an eligible participant (as defined in section 414(v)), gross income shall not include elective deferrals in excess of the applicable dollar amount under subparagraph (B) to the extent that the amount of such elective deferrals does not exceed the applicable dollar amount under section 414(v)(2)(B)(i) for the taxable year (without regard to the treatment of the elective deferrals by an applicable employer plan under section 414(v)).”. (2) Section 401(a)(30) is amended by striking “402(g)(1)” and inserting “402(g)(1)(A)”. (3) Section 414(v)(2) is amended by adding at the end the following: “(D) Aggregation of plans.— For purposes of this paragraph, plans described in clauses (i), (ii), and (iv) of paragraph (6)(A) that are maintained by the same employer (as determined under subsection (b), (c), (m) or (o)) shall be treated as a single plan, and plans described in clause (iii) of paragraph (6)(A) that are maintained by the same employer shall be treated as a single plan.”. (4) Section 414(v)(3)(A)(i) is amended by striking “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457” and inserting “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))”. (5) Section 414(v)(3)(B) is amended by striking “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416” and inserting “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416”. (6) Section 414(v)(4)(B) is amended by inserting before 26 USC 414. the period at the end the following: “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”. (7) Section 414(v)(5) is amended— (A) by striking “, with respect to any plan year,” in the matter preceding subparagraph (A), (B) by amending subparagraph (A) to read as follows: “(A) who would attain age 50 by the end of the taxable year,”, and (C) in subparagraph (B) by striking “plan year” and inserting “plan (or other applicable) year”. (8) Section 414(v)(6)(C) is amended to read as follows: “(C) Exception for section 457 plans.—This subsection shall not apply to a participant for any year for which a higher limitation applies to the participant under section 457(b)(3).”. (9) Section 457(e) is amended by adding at the end the following new paragraph: “(18) Coordination with catch-up contributions for individuals age 50 or older.— In the case of an individual who is an eligible participant (as defined by section 414(v)) and who is a participant in an eligible deferred compensation plan of an employer described in paragraph (I)(A), subsections (b)(3) and (c) shall be applied by substituting for the amount otherwise determined under the applicable subsection the greater of— “(A) the sum of— “(i) the plan ceiling established for purposes of subsection (b)(2) (without regard to subsection (b)(3)), plus “(ii) the applicable dollar amount for the taxable year determined under section 414(v)(2)(B)(i), or “(B) the amount determined under the applicable subsection (without regard to this paragraph).”. (p) Amendments Relating to Section 632 of the Act.— (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.”. (2) Section 403(b) is amended by striking paragraph (6). (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”. (4) Section 415(c)(7) is amended to read as follows: “(7) Special rules relating to church plans.— “(A) Alternative contribution limitation.— “(i) In general.— Notwithstanding any other provision of this subsection, at the election of a participant who is an employee of a church or a convention or association of churches, including an organization described in section 414(e)(3)(B)(ii), contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such participant, when expressed as an annual addition to such participant's account, shall be treated as not exceeding the limitation of paragraph (1) if such annual addition is not in excess of $10,000. “(ii) $40,000 aggregate limitation.— The total amount of additions with respect to any participant which may be taken into account for purposes of this subparagraph for all years may not exceed $40,000. “(B) Number of years of service for duly ordained, commissioned, or licensed ministers or lay employees.— For purposes of this paragraph— “(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. “(C) Foreign missionaries.— In the case of any individual described in subparagraph (D) performing services outside the United States, contributions and other additions for an annuity contract or retirement income account described in section 403(b) with respect to such employee, when expressed as an annual addition to such employee's account, shall not be treated as exceeding the limitation of paragraph (1) if such annual addition is not in excess of the greater of $3,000 or the employee's includible compensation determined under section 403(b)(3). “(D) Annual addition.— For purposes of this paragraph, the term ‘annual addition’ has the meaning given such term by paragraph (2). “(E) Church, convention or association of churches.— For purposes of this paragraph, the terms ‘church’ and ‘convention or association of churches’ have the same meaning as when used in section 414(e).”. (5) Section 457(e)(5) is amended to read as follows: 26 USC 457. “(5) Includible compensation.— The term ‘includible compensation’ has the meaning given to the term ‘participant's compensation’ by section 415(c)(3).”. (6) Section 402(g)(7)(B) is amended by striking “2001.” and inserting “2001).”. (q) Amendments Relating to Section 643 of the Act.— (1) Section 401(a)(31)(C)(i) is amended by inserting “is a qualified trust which is part of a plan which is a defined contribution plan and” before “agrees”. (2) Section 402(c)(2) is amended by adding at the end the following flush sentence: “In the case of a transfer described in subparagraph (A) or (B), the amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).”. (r) Amendments Relating to Section 648 of the Act.— (1) Section 417(e) is amended— (A) in paragraph (1) by striking “exceed the dollar limit under section 411(a)(11)(A)” and inserting “exceed the amount that can be distributed without the participant's consent under section 411(a)(11)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 411(a)(11)(A)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 411(a)(11)”. (2) Section 205(g) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1055. (A) in paragraph (1) by striking “exceed the dollar limit under section 203(e)(1)” and inserting “exceed the amount that can be distributed without the participant's consent under section 203(e)”, and (B) in paragraph (2)(A) by striking “exceeds the dollar limit under section 203(e)(1)” and inserting “exceeds the amount that can be distributed without the participant's consent under section 203(e)”. (s) Amendment Relating to Section 652 of the Act.— Section 404(a)(1)(D)(iv) is amended by striking “Plans maintained by professional service employers” and inserting “Special rule for terminating plans”. (t) Amendments Relating to Section 657 of the Act.— Section 404(c)(3) of the Employee Retirement Income Security Act of 1974 is amended— 26 USC 1104. (1) by striking “the earlier of” in subparagraph (A) the second place it appears, and (2) by striking “if the transfer” and inserting “a transfer that”. (u) Amendments Relating to Section 659 of the Act.— (1) Section 4980F is amended— (A) in subsection (e)(1) by striking “written notice” and inserting “the notice described in paragraph (2)”, (B) by amending subsection (f)(2)(A) to read as follows: “(A) any defined benefit plan described in section 401(a) which includes a trust exempt from tax under section 501(a), or”, and (C) in subsection (f)(3) by striking “significantly” both places it appears. (2) Section 204(h)(9) of the Employee Retirement Income Security Act of 1974 is amended by striking “significantly” both places it appears. (3) Section 659(c)(3)(B) of the Economic Growth and Tax 26 USC 4980F note. Relief Reconciliation Act of 2001 is amended by striking “(or” and inserting “(and”. (v) Amendments Relating to Section 661 of the Act.— (1) Section 412(c)(9)(B) is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(i) Limitation.— A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (2) Section 302(c)(9)(B) of the Employee Retirement Income 29 USC 1082. Security Act of 1974 is amended— (A) in clause (ii) by striking “125 percent” and inserting “100 percent”, and (B) by adding at the end the following new clause: “(iv) A change in funding method to use a prior year valuation, as provided in clause (ii), may not be made unless as of the valuation date within the prior plan year, the value of the assets of the plan are not less than 125 percent of the plan's current liability (as defined in paragraph (7)(B)).”. (w) Amendments Relating to Section 662 of the Act.— (1) Section 404(k) is amended— (A) in paragraph (1) by striking “during the taxable year”, (B) in paragraph (2)(B) by striking “(A)(iii)” and inserting “(A)(iv)”, (C) in paragraph (4)(B) by striking “(iii)” and inserting “(iv)”, and (D) by redesignating subparagraph (B) of paragraph (4) (as amended by subparagraph (C)) as subparagraph (C) of paragraph (4) and by inserting after subparagraph (A) the following new subparagraph: “(B) Reinvestment dividends.— For purposes of subparagraph (A), an applicable dividend reinvested pursuant to clause (iii)(II) of paragraph (2)(A) shall be treated as paid in the taxable year of the corporation in which such dividend is reinvested in qualifying employer securities or in which the election under clause (iii) of paragraph (2)(A) is made, whichever is later.”. (2) Section 404(k) is amended by adding at the end the following new paragraph: “(7) Full vesting.— In accordance with section 411, an applicable dividend described in clause (iii)(II) of paragraph (2)(A) shall be subject to the requirements of section 411(a)(1).”. (x) Effective Date.— Except as provided in subsection (c), 26 USC 25B note. the amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 to which they relate.
2004
Working Families Tax Relief Act of 2004
Pub. L. 108–311 title IV § 408(a)(15) · 118 Stat. 1166
Substituted · 26 U.S.C. § 414(q)(7)
Pub. L. 108–311 substituted “subsection” for “section”
Source evidence
Code amendment note
Subsec. (q)(7). Pub. L. 108–311 substituted “subsection” for “section”.
Enacted provision · exact public law section
(15) Paragraph (7) of section 414(q) is amended by striking “section” and inserting “subsection”.
2006
Pub. L. 109–280 § 906(a)(1) · 120 Stat. 780
Inserted · 26 U.S.C. § 414(d)
Pub. L. 109–280, § 906(a)(1), inserted at end “The term ‘governmental plan’ includes a plan which is established and maintained by an Indian tribal government (as defined in section 7701(a)(40)), a subdivision of an Indian tribal government (determined in accordance with section 7871(d)), or an agency or instrumentality of either, and all of the participants of which are employees of such entity substantially all of whose services as such an employee are in the performance of essential governmental functions but not in the performance of commercial activities (whether or not an essential government function).”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 109–280, § 906(a)(1), inserted at end “The term ‘governmental plan’ includes a plan which is established and maintained by an Indian tribal government (as defined in section 7701(a)(40)), a subdivision of an Indian tribal government (determined in accordance with section 7871(d)), or an agency or instrumentality of either, and all of the participants of which are employees of such entity substantially all of whose services as such an employee are in the performance of essential governmental functions but not in the performance of commercial activities (whether or not an essential government function).”
Enacted provision · exact public law section
(1) Amendment to internal revenue code of 1986.— Section 414(d) of the Internal Revenue Code of 1986 26 USC 414. (defining governmental plan) is amended by adding at the end the following: “The term ‘governmental plan’ includes a plan which is established and maintained by an Indian tribal government (as defined in section 7701(a)(40)), a subdivision of an Indian tribal government (determined in accordance with section 7871(d)), or an agency or instrumentality of either, and all of the participants of which are employees of such entity substantially all of whose services as such an employee are in the performance of essential governmental functions but not in the performance of commercial activities (whether or not an essential government function).”.
2006
Pub. L. 109–280 § 1106(b) · 120 Stat. 780
Added · 26 U.S.C. § 414(f)(6)
Pub. L. 109–280, § 1106(b), added par. (6)
Source evidence
Code amendment note
Subsec. (f)(6). Pub. L. 109–280, § 1106(b), added par. (6).
Enacted provision · exact public law section
(b) Amendment to Internal Revenue Code.— Subsection (f) of section 414 of the Internal Revenue Code of 1986 26 USC 414. is amended by adding at the end the following new paragraph (6): “(6) Election with regard to multiemployer status.— “(A) Deadline. Within 1 year after the enactment of the Pension Protection Act of 2006— “(i) An election under paragraph (5) may be revoked, pursuant to procedures prescribed by the Pension Benefit Guaranty Corporation, if, for each of the 3 plan years prior to the date of the enactment of that Act, the plan would have been a multiemployer plan but for the election under paragraph (5), and “(ii) a plan that meets the criteria in subparagraph (A) and (B) of paragraph (1) of this subsection or that is described in subparagraph (E) may, pursuant to procedures prescribed by the Pension Benefit Guaranty Corporation, elect to be a multiemployer plan, if— “(I) for each of the 3 plan years immediately before the date of enactment of the Pension Protection Act of 2006, the plan has met those criteria or is so described, “(II) substantially all of the plan’s employer contributions for each of those plan years were made or required to be made by organizations that were exempt from tax under section 501, and “(III) the plan was established prior to September 2, 1974. “(B) Effective date. An election under this paragraph shall be effective for all purposes under this Act and under the Employee Retirement Income Security Act of 1974, starting with the first plan year ending after the date of the enactment of the Pension Protection Act of 2006. “(C) Once made, an election under this paragraph shall be irrevocable, except that a plan described in subparagraph (A)(ii) shall cease to be a multiemployer plan as of the plan year beginning immediately after the first plan year for which the majority of its employer contributions were made or required to be made by organizations that were not exempt from tax under section 501. “(D) The fact that a plan makes an election under subparagraph (A)(ii) does not imply that the plan was not a multiemployer plan prior to the date of the election or would not be a multiemployer plan without regard to the election. “(E) A plan is described in this subparagraph if it is a plan— “(i) that was established in Chicago, Illinois, on August 12, 1881; and “(ii) sponsored by an organization described in section 501(c)(5) and exempt from tax under section 501(a).” .
2006
Pub. L. 109–280 § 906(b)(1)(C) · 120 Stat. 780
Inserted · 26 U.S.C. § 414(h)(2)
Pub. L. 109–280, § 906(b)(1)(C), inserted “or a governmental plan described in the last sentence of section 414(d) (relating to plans of Indian tribal governments),” after “foregoing,”
Source evidence
Code amendment note
Subsec. (h)(2). Pub. L. 109–280, § 906(b)(1)(C), inserted “or a governmental plan described in the last sentence of section 414(d) (relating to plans of Indian tribal governments),” after “foregoing,”.
Enacted provision · exact public law section
(C) Government pick up contributions.— Paragraph (2) of section 414(h) of such Code (relating to designation by units of government) is amended by inserting “or a governmental plan described in the last sentence of section 414(d) (relating to plans of Indian tribal governments),” after “foregoing,”.
2006
Pub. L. 109–280 § 114(c) · 120 Stat. 780
Amended · 26 U.S.C. § 414(l)(2)(B)(i)(I)
Pub. L. 109–280, § 114(c), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “the amount determined under section 412(c)(7)(A)(i) with respect to the plan, over”
Source evidence
Code amendment note
Subsec. (l)(2)(B)(i)(I). Pub. L. 109–280, § 114(c), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “the amount determined under section 412(c)(7)(A)(i) with respect to the plan, over”.
Enacted provision · exact public law section
(c) Mergers and Consolidations of Plans.— Subclause (I) of section 414(l)(2)(B)(i) of such Code is amended to read as follows: “(I) the amount determined under section 431(c)(6)(A)(i) in the case of a multiemployer plan (and the sum of the funding shortfall and target normal cost determined under section 430 in the case of any other plan), over” .
2006
Pub. L. 109–280 § 902(d)(1) · 120 Stat. 780
Added · 26 U.S.C. § 414(w)
Pub. L. 109–280, § 902(d)(1), added subsec. (w)
Source evidence
Code amendment note
Subsec. (w). Pub. L. 109–280, § 902(d)(1), added subsec. (w).
Enacted provision · exact public law section
(1) In general.— Section 414 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: “(w) Special Rules for Certain Withdrawals From Eligible Automatic Contribution Arrangements.— “(1) In general.— If an eligible automatic contribution arrangement allows an employee to elect to make permissible withdrawals— “(A) the amount of any such withdrawal shall be includible in the gross income of the employee for the taxable year of the employee in which the distribution is made, “(B) no tax shall be imposed under section 72(t) with respect to the distribution, and “(C) the arrangement shall not be treated as violating any restriction on distributions under this title solely by reason of allowing the withdrawal. In the case of any distribution to an employee by reason of an election under this paragraph, employer matching contributions shall be forfeited or subject to such other treatment as the Secretary may prescribe. “(2) Permissible withdrawal.— For purposes of this sub- section— “(A) In general.— The term ‘permissible withdrawal’ means any withdrawal from an eligible automatic contribution arrangement meeting the requirements of this paragraph which— “(i) is made pursuant to an election by an employee, and “(ii) consists of elective contributions described in paragraph (3)(B) (and earnings attributable thereto). “(B) Time for making election.— Subparagraph (A) shall not apply to an election by an employee unless the election is made no later than the date which is 90 days after the date of the first elective contribution with respect to the employee under the arrangement. “(C) Amount of distribution.— Subparagraph (A) shall not apply to any election by an employee unless the amount of any distribution by reason of the election is equal to the amount of elective contributions made with respect to the first payroll period to which the eligible automatic contribution arrangement applies to the employee and any succeeding payroll period beginning before the effective date of the election (and earnings attributable thereto). “(3) Eligible automatic contribution arrangement.— For purposes of this subsection, the term ‘eligible automatic contribution arrangement’ means an arrangement under an applicable employer plan— “(A) under which a participant may elect to have the employer make payments as contributions under the plan on behalf of the participant, or to the participant directly in cash, “(B) under which the participant is treated as having elected to have the employer make such contributions in an amount equal to a uniform percentage of compensation provided under the plan until the participant specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage), “(C) under which, in the absence of an investment election by the participant, contributions described in subparagraph (B) are invested in accordance with regulations prescribed by the Secretary of Labor under section 404(c)(5) of the Employee Retirement Income Security Act of 1974, and “(D) which meets the requirements of paragraph (4). “(4) Notice requirements.— “(A) In general.— The administrator of a plan containing an arrangement described in paragraph (3) shall, within a reasonable period before each plan year, give to each employee to whom an arrangement described in paragraph (3) applies for such plan year notice of the employee’s rights and obligations under the arrangement which— “(i) is sufficiently accurate and comprehensive to apprise the employee of such rights and obligations, and “(ii) is written in a manner calculated to be understood by the average employee to whom the arrangement applies. “(B) Time and form of notice.— A notice shall not be treated as meeting the requirements of subparagraph (A) with respect to an employee unless— “(i) the notice includes an explanation of the employee’s right under the arrangement to elect not to have elective contributions made on the employee’s behalf (or to elect to have such contributions made at a different percentage), “(ii) the employee has a reasonable period of time after receipt of the notice described in clause (i) and before the first elective contribution is made to make such election, and “(iii) the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the employee. “(5) Applicable employer plan.— For purposes of this subsection, the term ‘applicable employer plan’ means— “(A) an employees’ trust described in section 401(a) which is exempt from tax under section 501(a), “(B) a plan under which amounts are contributed by an individual’s employer for an annuity contract described in section 403(b), and “(C) an eligible deferred compensation plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A). “(6) Special rule.— A withdrawal described in paragraph (1) (subject to the limitation of paragraph (2)(C)) shall not be taken into account for purposes of section 401(k)(3).” .
2006
Pub. L. 109–280 § 903(a) · 120 Stat. 780
Added · 26 U.S.C. § 414(x)
Pub. L. 109–280, § 903(a), added subsec. (x)
Source evidence
Code amendment note
Subsec. (x). Pub. L. 109–280, § 903(a), added subsec. (x).
Enacted provision · exact public law section
(a) Amendments of Internal Revenue Code.— Section 414 of the Internal Revenue Code of 1986, as amended by this 26 USC 414. Act, is amended by adding at the end the following new subsection: “(x) Special Rules for Eligible Combined Defined Benefit Plans and Qualified Cash or Deferred Arrangements.— “(1) General rule.— Except as provided in this subsection, the requirements of this title shall be applied to any defined benefit plan or applicable defined contribution plan which are part of an eligible combined plan in the same manner as if each such plan were not a part of the eligible combined plan. “(2) Eligible combined plan.— For purposes of this sub- section— “(A) In general.— The term ‘eligible combined plan’ means a plan— “(i) which is maintained by an employer which, at the time the plan is established, is a small employer, “(ii) which consists of a defined benefit plan and an applicable defined contribution plan, “(iii) the assets of which are held in a single trust forming part of the plan and are clearly identified and allocated to the defined benefit plan and the applicable defined contribution plan to the extent necessary for the separate application of this title under paragraph (1), and “(iv) with respect to which the benefit, contribution, vesting, and nondiscrimination requirements of subparagraphs (B), (C), (D), (E), and (F) are met. For purposes of this subparagraph, the term ‘small employer’ has the meaning given such term by section 4980D(d)(2), except that such section shall be applied by substituting ‘500’ for ‘50’ each place it appears. “(B) Benefit requirements.— “(i) In general.— The benefit requirements of this subparagraph are met with respect to the defined benefit plan forming part of the eligible combined plan if the accrued benefit of each participant derived from employer contributions, when expressed as an annual retirement benefit, is not less than the applicable percentage of the participant’s final average pay. For purposes of this clause, final average pay shall be determined using the period of consecutive years (not exceeding 5) during which the participant had the greatest aggregate compensation from the employer. “(ii) Applicable percentage.— For purposes of clause (i), the applicable percentage is the lesser of— “(I) 1 percent multiplied by the number of years of service with the employer, or “(II) 20 percent. “(iii) Special rule for applicable defined benefit plans.— If the defined benefit plan under clause (i) is an applicable defined benefit plan as defined in section 411(a)(13)(B) which meets the interest credit requirements of section 411(b)(5)(B)(i), the plan shall be treated as meeting the requirements of clause (i) with respect to any plan year if each participant receives a pay credit for the year which is not less than the percentage of compensation determined in accordance with the following table: “If the participant’s age as of the beginning of the year is— The percentage is— 30 or less2 Over 30 but less than 404 40 or over but less than 506 50 or over8. “(iv) Years of service.— For purposes of this subparagraph, years of service shall be determined under the rules of paragraphs (4), (5), and (6) of section 411(a), except that the plan may not disregard any year of service because of a participant making, or failing to make, any elective deferral with respect to the qualified cash or deferred arrangement to which subparagraph (C) applies. “(C) Contribution requirements.— “(i) In general.— The contribution requirements of this subparagraph with respect to any applicable defined contribution plan forming part of an eligible combined plan are met if— “(I) the qualified cash or deferred arrangement included in such plan constitutes an automatic contribution arrangement, and “(II) the employer is required to make matching contributions on behalf of each employee eligible to participate in the arrangement in an amount equal to 50 percent of the elective contributions of the employee to the extent such elective contributions do not exceed 4 percent of compensation. Rules Applicability. similar to the rules of clauses (ii) and (iii) of section 401(k)(12)(B) shall apply for purposes of this clause. “(ii) Nonelective contributions.— An applicable defined contribution plan shall not be treated as failing to meet the requirements of clause (i) because the employer makes nonelective contributions under the plan but such contributions shall not be taken into account in determining whether the requirements of clause (i)(II) are met. “(D) Vesting requirements.— The vesting requirements of this subparagraph are met if— “(i) in the case of a defined benefit plan forming part of an eligible combined plan an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit under the plan derived from employer contributions, and “(ii) in the case of an applicable defined contribution plan forming part of eligible combined plan— “(I) an employee has a nonforfeitable right to any matching contribution made under the qualified cash or deferred arrangement included in such plan by an employer with respect to any elective contribution, including matching contributions in excess of the contributions required under subparagraph (C)(i)(II), and “(II) an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit derived under the arrangement from nonelective contributions of the employer. For Applicability. purposes of this subparagraph, the rules of section 411 shall apply to the extent not inconsistent with this subparagraph. “(E) Uniform provision of contributions and benefits.— In the case of a defined benefit plan or applicable defined contribution plan forming part of an eligible combined plan, the requirements of this subparagraph are met if all contributions and benefits under each such plan, and all rights and features under each such plan, must be provided uniformly to all participants. “(F) Requirements must be met without taking into account social security and similar contributions and benefits or other plans.— “(i) In general.— The requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met. “(ii) Social security and similar contributions.— The requirements of this clause are met if— “(I) the requirements of subparagraphs (B) and (C) are met without regard to section 401(l), and “(II) the requirements of sections 401(a)(4) and 410(b) are met with respect to both the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan without regard to section 401(l). “(iii) Other plans and arrangements.— The requirements of this clause are met if the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan meet the requirements of sections 401(a)(4) and 410(b) without being combined with any other plan. “(3) Nondiscrimination requirements for qualified cash or deferred arrangement.— “(A) In general.— A qualified cash or deferred arrangement which is included in an applicable defined contribution plan forming part of an eligible combined plan shall be treated as meeting the requirements of section 401(k)(3)(A)(ii) if the requirements of paragraph (2)(C) are met with respect to such arrangement. “(B) Matching contributions.— In applying section 401(m)(11) to any matching contribution with respect to a contribution to which paragraph (2)(C) applies, the contribution requirement of paragraph (2)(C) and the notice requirements of paragraph (5)(B) shall be substituted for the requirements otherwise applicable under clauses (i) and (ii) of section 401(m)(11)(A). “(4) Satisfaction of top-heavy rules.— A defined benefit plan and applicable defined contribution plan forming part of an eligible combined plan for any plan year shall be treated as meeting the requirements of section 416 for the plan year. “(5) Automatic contribution arrangement.— For purposes of this subsection— “(A) In general.— A qualified cash or deferred arrangement shall be treated as an automatic contribution arrangement if the arrangement— “(i) provides that each employee eligible to participate in the arrangement is treated as having elected to have the employer make elective contributions in an amount equal to 4 percent of the employee’s compensation unless the employee specifically elects not to have such contributions made or to have such contributions made at a different rate, and “(ii) meets the notice requirements under subparagraph (B). “(B) Notice requirements.— “(i) In general.— The requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met. “(ii) Reasonable period to make election.— The requirements of this clause are met if each employee to whom subparagraph (A)(i) applies— “(I) receives a notice explaining the employee’s right under the arrangement to elect not to have elective contributions made on the employee’s behalf or to have the contributions made at a different rate, and “(II) has a reasonable period of time after receipt of such notice and before the first elective contribution is made to make such election. “(iii) Annual notice of rights and obligations.— The requirements of this clause are met if each employee eligible to participate in the arrangement is, within a reasonable period before any year, given notice of the employee’s rights and obligations under the arrangement. The requirements of clauses (i) and (ii) of section 401(k)(12)(D) shall be met with respect to the notices described in clauses (ii) and (iii) of this subparagraph. “(6) Coordination with other requirements.— “(A) Treatment of separate plans.— Section 414(k) shall not apply to an eligible combined plan. “(B) Reporting.— An eligible combined plan shall be treated as a single plan for purposes of sections 6058 and 6059. “(7) Applicable defined contribution plan.— For purposes of this subsection— “(A) In general.— The term ‘applicable defined contribution plan’ means a defined contribution plan which includes a qualified cash or deferred arrangement. “(B) Qualified cash or deferred arrangement.— The term ‘qualified cash or deferred arrangement’ has the meaning given such term by section 401(k)(2).” .
2007
U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007
Pub. L. 110–28 § 6611(a)(2)(A) · 121 Stat. 112
Substituted · 26 U.S.C. § 414(f)(6)(A)(ii)(I)
Pub. L. 110–28, § 6611(a)(2)(A), substituted “for each of the 3 plan years immediately preceding the first plan year for which the election under this paragraph is effective with respect to the plan,” for “for each of the 3 plan years immediately before the date of enactment of the Pension Protection Act of 2006,”
Source evidence
Code amendment note
Subsec. (f)(6)(A)(ii)(I). Pub. L. 110–28, § 6611(a)(2)(A), substituted “for each of the 3 plan years immediately preceding the first plan year for which the election under this paragraph is effective with respect to the plan,” for “for each of the 3 plan years immediately before the date of enactment of the Pension Protection Act of 2006,”.
Enacted provision · exact public law section
(A) in subparagraph (A)(ii)(I), by striking “for each of the 3 plan years immediately before the date of enactment of the Pension Protection Act of 2006,” and inserting “for each of the 3 plan years immediately preceding the first plan year for which the election under this paragraph is effective with respect to the plan,”;
2007
U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007
Pub. L. 110–28 § 6611(a)(2)(B) · 121 Stat. 112
Substituted · 26 U.S.C. § 414(f)(6)(B)
Pub. L. 110–28, § 6611(a)(2)(B), substituted “starting with any plan year beginning on or after January 1, 1999, and ending before January 1, 2008, as designated by the plan in the election made under subparagraph (A)(ii)” for “starting with the first plan year ending after the date of the enactment of the Pension Protection Act of 2006”
Source evidence
Code amendment note
Subsec. (f)(6)(B). Pub. L. 110–28, § 6611(a)(2)(B), substituted “starting with any plan year beginning on or after January 1, 1999, and ending before January 1, 2008, as designated by the plan in the election made under subparagraph (A)(ii)” for “starting with the first plan year ending after the date of the enactment of the Pension Protection Act of 2006”.
Enacted provision · exact public law section
(B) in subparagraph (B), by striking “starting with the first plan year ending after the date of the enactment of the Pension Protection Act of 2006” and inserting “starting with any plan year beginning on or after January 1, 1999, and ending before January 1, 2008, as designated by the plan in the election made under subparagraph (A)(ii)”; and
2007
U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007
Pub. L. 110–28 § 6611(b)(2) · 121 Stat. 112
Substituted · 26 U.S.C. § 414(f)(6)(E)
Pub. L. 110–28, § 6611(b)(2), substituted “if it is a plan sponsored by an organization which is described in section 501(c)(5) and exempt from tax under section 501(a) and which was established in Chicago, Illinois, on August 12, 1881.” for “if it is a plan—
Source evidence
Code amendment note
Subsec. (f)(6)(E). Pub. L. 110–28, § 6611(b)(2), substituted “if it is a plan sponsored by an organization which is described in section 501(c)(5) and exempt from tax under section 501(a) and which was established in Chicago, Illinois, on August 12, 1881.” for “if it is a plan—
“(i) that was established in Chicago, Illinois, on August 12, 1881; and “(ii) sponsored by an organization described in section 501(c)(5) and exempt from tax under section 501(a).”
Enacted provision · exact public law section
(2) Subparagraph (E) of section 414(f)(6) of the Internal Revenue Code of 1986 (as amended by section 1106(b) of the Pension Protection Act of 2006) 26 USC 414. is amended by striking “if it is a plan—” and all that follows and inserting the following: “if it is a plan sponsored by an organization which is described in section 501(c)(5) and exempt from tax under section 501(a) and which was established in Chicago, Illinois, on August 12, 1881.”.
2007
U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007
Pub. L. 110–28 § 6611(a)(2)(C) · 121 Stat. 112
Added · 26 U.S.C. § 414(f)(6)(F)
Pub. L. 110–28, § 6611(a)(2)(C), added subpar. (F)
Source evidence
Code amendment note
Subsec. (f)(6)(F). Pub. L. 110–28, § 6611(a)(2)(C), added subpar. (F).
Enacted provision · exact public law section
(C) by adding at the end the following new subparagraph: “(F) Maintenance under collective bargaining agreement.— For purposes of this title and the Employee Retirement Income Security Act of 1974, a plan making an election under this paragraph shall be treated as maintained pursuant to a collective bargaining agreement if a collective bargaining agreement, expressly or otherwise, provides for or permits employer contributions to the plan by one or more employers that are signatory to such agreement, or participation in the plan by one or more employees of an employer that is signatory to such agreement, regardless of whether the plan was created, established, or maintained for such employees by virtue of another document that is not a collective bargaining agreement.” .
2008
Heroes Earnings Assistance and Relief Tax Act of 2008
Pub. L. 110–245 § 105(b)(1)(B) · 122 Stat. 1624
Inserted · 26 U.S.C. § 414(u)
Pub. L. 110–245, § 105(b)(1)(B), inserted “and to differential wage payments to members on active duty” after “USERRA” in heading
Source evidence
Code amendment note
Subsec. (u). Pub. L. 110–245, § 105(b)(1)(B), inserted “and to differential wage payments to members on active duty” after “USERRA” in heading.
Enacted provision · exact public law section
(B) Conforming amendment.— The heading for section 414(u) 26 USC 414. is amended by inserting “and to Differential Wage Payments to Members on Active Duty” after “USERRA”.
2008
Heroes Earnings Assistance and Relief Tax Act of 2008
Pub. L. 110–245 § 104(b) · 122 Stat. 1624
1. Added · 26 U.S.C. § 414(u)(9)(11)
  Pub. L. 110–245, § 104(b), added par. (9)
2. Redesignated · 26 U.S.C. § 414(u)(9)(11)
  Pub. L. 110–245, § 104(b), redesignated former pars. (9) and (10) as (10) and (11), respectively
Source evidence
Code amendment note
Subsec. (u)(9) to (11). Pub. L. 110–245, § 104(b), added par. (9) and redesignated former pars. (9) and (10) as (10) and (11), respectively.
Enacted provision · exact public law section
(b) Treatment in the Case of Death or Disability Resulting From Active Military Service for Benefit Accrual Purposes.— Subsection (u) of section 414 (relating to special rules relating to veterans’ reemployment rights under USERRA) is amended by redesignating paragraphs (9) and (10) as paragraphs (10) and (11), respectively, and by inserting after paragraph (8) the following new paragraph: “(9) Treatment in the case of death or disability resulting from active military service.— “(A) In general.— For benefit accrual purposes, an employer sponsoring a retirement plan may treat an individual who dies or becomes disabled (as defined under the terms of the plan) while performing qualified military service with respect to the employer maintaining the plan as if the individual has resumed employment in accordance with the individual’s reemployment rights under chapter 43 of title 38, United States Code, on the day preceding death or disability (as the case may be) and terminated employment on the actual date of death or disability. In the case of any such treatment, and subject to subparagraphs (B) and (C), any full or partial compliance by such plan with respect to the benefit accrual requirements of paragraph (8) with respect to such individual shall be treated for purposes of paragraph (1) as if such compliance were required under such chapter 43. “(B) Nondiscrimination requirement.— Subparagraph (A) shall apply only if all individuals performing qualified military service with respect to the employer maintaining the plan (as determined under subsections (b), (c), (m), and (o)) who die or became disabled as a result of performing qualified military service prior to reemployment by the employer are credited with service and benefits on reasonably equivalent terms. “(C) Determination of benefits.— The amount of employee contributions and the amount of elective deferrals of an individual treated as reemployed under subparagraph (A) for purposes of applying paragraph (8)(C) shall be determined on the basis of the individual’s average actual employee contributions or elective deferrals for the lesser of— “(i) the 12-month period of service with the employer immediately prior to qualified military service, or “(ii) if service with the employer is less than such 12-month period, the actual length of continuous service with the employer.” .
2008
Heroes Earnings Assistance and Relief Tax Act of 2008
Pub. L. 110–245 § 105(b)(1)(A) · 122 Stat. 1624
Added · 26 U.S.C. § 414(u)(12)
Pub. L. 110–245, § 105(b)(1)(A), added par. (12)
Source evidence
Code amendment note
Subsec. (u)(12). Pub. L. 110–245, § 105(b)(1)(A), added par. (12).
Enacted provision · exact public law section
(A) In general.— Section 414(u) (relating to special rules relating to veterans’ reemployment rights under USERRA), as amended by section 103(b), is amended by adding at the end the following new paragraph: “(12) Treatment of differential wage payments.— “(A) In general.— Except as provided in this paragraph, for purposes of applying this title to a retirement plan to which this subsection applies— “(i) an individual receiving a differential wage payment shall be treated as an employee of the employer making the payment, “(ii) the differential wage payment shall be treated as compensation, and “(iii) the plan shall not be treated as failing to meet the requirements of any provision described in paragraph (1)(C) by reason of any contribution or benefit which is based on the differential wage payment. “(B) Special rule for distributions.— “(i) In general.— Notwithstanding subparagraph (A)(i), for purposes of section 401(k)(2)(B)(i)(I), 403(b)(7)(A)(ii), 403(b)(11)(A), or 457(d)(1)(A)(ii), an individual shall be treated as having been severed from employment during any period the individual is performing service in the uniformed services described in section 3401(h)(2)(A). “(ii) Limitation.— If an individual elects to receive a distribution by reason of clause (i), the plan shall provide that the individual may not make an elective deferral or employee contribution during the 6-month period beginning on the date of the distribution. “(C) Nondiscrimination requirement.— Subparagraph (A)(iii) shall apply only if all employees of an employer (as determined under subsections (b), (c), (m), and (o)) performing service in the uniformed services described in section 3401(h)(2)(A) are entitled to receive differential wage payments on reasonably equivalent terms and, if eligible to participate in a retirement plan maintained by the employer, to make contributions based on the payments on reasonably equivalent terms. For purposes of applying this subparagraph, the provisions of paragraphs (3), (4), and (5) of section 410(b) shall apply. “(D) Differential wage payment.— For purposes of this paragraph, the term ‘differential wage payment’ has the meaning given such term by section 3401(h)(2).” .
2008
Federal Housing Finance Regulatory Reform Act of 2008
Pub. L. 110–289 § 1604(b)(4) · 122 Stat. 2654
Substituted · 26 U.S.C. § 414(l)(2)(G)
Pub. L. 110–289, § 1604(b)(4), which directed substitution of “bridge depository institution” for “bridge bank”, was executed by making the substitution wherever appearing in text, to reflect the probable intent of Congress
Source evidence
Code amendment note
Subsec. (l)(2)(G). Pub. L. 110–289, § 1604(b)(4), which directed substitution of “bridge depository institution” for “bridge bank”, was executed by making the substitution wherever appearing in text, to reflect the probable intent of Congress.
Enacted provision · exact public law section
(4) Title 26, united states code.— Section 414(l)(2)(G) of the Internal Revenue Code of 1986, is amended by striking “bridge bank” and inserting “bridge depository institution”.
2008
Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 § 101(d)(2)(E) · 122 Stat. 5092
Amended · 26 U.S.C. § 414(l)(2)(B)(i)(I)
Pub. L. 110–458, § 101(d)(2)(E), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “the amount determined under section 431(c)(6)(A)(i) in the case of a multiemployer plan (and the sum of the funding shortfall and target normal cost determined under section 430 in the case of any other plan), over”
Source evidence
Code amendment note
Subsec. (l)(2)(B)(i)(I). Pub. L. 110–458, § 101(d)(2)(E), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “the amount determined under section 431(c)(6)(A)(i) in the case of a multiemployer plan (and the sum of the funding shortfall and target normal cost determined under section 430 in the case of any other plan), over”.
Enacted provision · exact public law section
(E) Section 414(l)(2)(B)(i)(I) of the 1986 Code 26 USC 414. is amended to read as follows: “(I) the sum of the funding target and target normal cost determined under section 430, over” .
2008
Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 § 109(b)(4) · 122 Stat. 5092
1. Inserted · 26 U.S.C. § 414(w)(3)(B)(D)
  Pub. L. 110–458, § 109(b)(4), inserted “and” after comma at end of subpar. (B)
2. Redesignated · 26 U.S.C. § 414(w)(3)(B)(D)
  Pub. L. 110–458, § 109(b)(4), redesignated subpar. (D) as (C)
3. Struck · 26 U.S.C. § 414(w)(3)(B)(D)
  Pub. L. 110–458, § 109(b)(4), struck out former subpar. (C) which read as follows: “under which, in the absence of an investment election by the participant, contributions described in subparagraph (B) are invested in accordance with regulations prescribed by the Secretary of Labor under section 404(c)(5) of the Employee Retirement Income Security Act of 1974, and”
Source evidence
Code amendment note
Subsec. (w)(3)(B) to (D). Pub. L. 110–458, § 109(b)(4), inserted “and” after comma at end of subpar. (B), redesignated subpar. (D) as (C), and struck out former subpar. (C) which read as follows: “under which, in the absence of an investment election by the participant, contributions described in subparagraph (B) are invested in accordance with regulations prescribed by the Secretary of Labor under section 404(c)(5) of the Employee Retirement Income Security Act of 1974, and”.
Enacted provision · exact public law section
(4) Section 414(w)(3) of the 1986 Code 26 USC 414. is amended— (A) in subparagraph (B), by inserting “and” after the comma at the end, (B) by striking subparagraph (C), and (C) by redesignating subparagraph (D) as subparagraph (C).
2008
Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 § 109(b)(5) · 122 Stat. 5092
Added · 26 U.S.C. § 414(w)(5)(D); 26 U.S.C. § 414(w)(5)(E)
Pub. L. 110–458, § 109(b)(5), added subpars. (D) and (E)
Source evidence
Code amendment note
Subsec. (w)(5)(D), (E). Pub. L. 110–458, § 109(b)(5), added subpars. (D) and (E).
Enacted provision · exact public law section
(5) Section 414(w)(5) of the 1986 Code is amended by striking “and” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting a comma, and by adding at the end the following: “(D) a simplified employee pension the terms of which provide for a salary reduction arrangement described in section 408(k)(6), and “(E) a simple retirement account (as defined in section 408(p)).” .
2008
Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 § 109(b)(6) · 122 Stat. 5092
Inserted · 26 U.S.C. § 414(w)(6)
Pub. L. 110–458, § 109(b)(6), inserted “or for purposes of applying the limitation under section 402(g)(1)” before period at end
Source evidence
Code amendment note
Subsec. (w)(6). Pub. L. 110–458, § 109(b)(6), inserted “or for purposes of applying the limitation under section 402(g)(1)” before period at end.
Enacted provision · exact public law section
(6) Section 414(w)(6) of the 1986 Code is amended by inserting “or for purposes of applying the limitation under section 402(g)(1)” before the period at the end.
2008
Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 § 109(c)(1) · 122 Stat. 5092
Inserted · 26 U.S.C. § 414(x)(1)
Pub. L. 110–458, § 109(c)(1), inserted at end “In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately.”
Source evidence
Code amendment note
Subsec. (x)(1). Pub. L. 110–458, § 109(c)(1), inserted at end “In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately.”
Enacted provision · exact public law section
(1) Amendment of 1986 code.— Section 414(x)(1) of the 1986 Code is amended by adding at the end of paragraph (1) the following new sentence: “In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately.”
2014
Cooperative and Small Employer Charity Pension Flexibility Act
Pub. L. 113–97 § 201 · 128 Stat. 1101
Added · 26 U.S.C. § 414(y)
Pub. L. 113–97, § 201, added subsec. (y)
Source evidence
Code amendment note
Subsec. (y). Pub. L. 113–97, § 201, added subsec. (y).
Enacted provision · exact public law section
SEC. 201. DEFINITION OF COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLANS. Section 414 of the Internal Revenue Code of 1986 26 USC 414. is amended by adding at the end the following new subsection: “(y) Cooperative and Small Employer Charity Pension Plans.— “(1) In general.— For purposes of this title, except as provided in this subsection, a CSEC plan is a defined benefit plan (other than a multiemployer plan)— “(A) to which section 104 of the Pension Protection Act of 2006 applies, without regard to— “(i) section 104(a)(2) of such Act; “(ii) the amendments to such section 104 by section 202(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010; and “(iii) paragraph (3)(B); or “(B) that, as of June 25, 2010, was maintained by more than one employer and all of the employers were organizations described in section 501(c)(3). “(2) Aggregation.— All employers that are treated as a single employer under subsection (b) or (c) shall be treated as a single employer for purposes of determining if a plan was maintained by more than one employer under paragraph (1)(B).” .
2014
Cooperative and Small Employer Charity Pension Flexibility Act
Pub. L. 113–97 § 203(a) · 128 Stat. 1101
Added · 26 U.S.C. § 414(y)(3)
Pub. L. 113–97, § 203(a), added par. (3)
Source evidence
Code amendment note
Subsec. (y)(3). Pub. L. 113–97, § 203(a), added par. (3).
Enacted provision · exact public law section
(a) In General.— Section 414(y) of the Internal Revenue Code of 1986, 26 USC 414. as added by section 201, is amended by adding at the end the following new paragraph: “(3) Election.— “(A) In general.— If a plan falls within the definition of a CSEC plan under this subsection (without regard to this paragraph), such plan shall be a CSEC plan unless the plan sponsor elects not later than the close of the first plan year of the plan beginning after December 31, 2013, not to be treated as a CSEC plan. An election under the preceding sentence shall take effect for such plan year and, once made, may be revoked only with the consent of the Secretary. “(B) Special rule.— If a plan described in subparagraph (A) is treated as a CSEC plan, section 104 of the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, shall cease to apply to such plan as of the first date as of which such plan is treated as a CSEC plan.” .
2014
Consolidated and Further Continuing Appropriations Act, 2015
Pub. L. 113–235 § 3(b)(1) · 128 Stat. 2130
Added · 26 U.S.C. § 414(y)(1)(C)
Pub. L. 113–235, § 3(b)(1), added subpar. (C)
Source evidence
Code amendment note
Subsec. (y)(1)(C). Pub. L. 113–235, § 3(b)(1), added subpar. (C).
Enacted provision · exact public law section
SEC. 3. REFERENCES. Except as expressly provided otherwise, any reference to “this Act” contained in any division of this Act shall be treated as referring only to the provisions of that division.
2014
Consolidated and Further Continuing Appropriations Act, 2015
Pub. L. 113–235 § 3(b)(2) · 128 Stat. 2130
Substituted · 26 U.S.C. § 414(y)(2)
Pub. L. 113–235, § 3(b)(2), substituted “subparagraph (B) and (C) of paragraph (1)” for “paragraph (1)(B)”
Source evidence
Code amendment note
Subsec. (y)(2). Pub. L. 113–235, § 3(b)(2), substituted “subparagraph (B) and (C) of paragraph (1)” for “paragraph (1)(B)”.
Enacted provision · exact public law section
SEC. 3. REFERENCES. Except as expressly provided otherwise, any reference to “this Act” contained in any division of this Act shall be treated as referring only to the provisions of that division.
2014
Tax Technical Corrections Act of 2014
Pub. L. 113–295 § 221(a)(19)(B)(i) · 128 Stat. 4010
Struck · 26 U.S.C. § 414(n)(3)(C)
Pub. L. 113–295, § 221(a)(19)(B)(i), struck out “120,” after “117(d),”
Source evidence
Code amendment note
Subsec. (n)(3)(C). Pub. L. 113–295, § 221(a)(19)(B)(i), struck out “120,” after “117(d),”.
Enacted provision · exact public law section
(i) Section 414(n)(3)(C) is amended by striking “120,”.
2014
Tax Technical Corrections Act of 2014
Pub. L. 113–295 § 221(a)(19)(B)(ii) · 128 Stat. 4010
Struck · 26 U.S.C. § 414(t)(2)
Pub. L. 113–295, § 221(a)(19)(B)(ii), struck out “120,” after “117(d),”
Source evidence
Code amendment note
Subsec. (t)(2). Pub. L. 113–295, § 221(a)(19)(B)(ii), struck out “120,” after “117(d),”.
Enacted provision · exact public law section
(ii) Section 414(t)(2) is amended by striking “120,”.
2014
Tax Technical Corrections Act of 2014
Pub. L. 113–295 § 221(a)(55) · 128 Stat. 4010
Amended · 26 U.S.C. § 414(v)(2)(B)(i); 26 U.S.C. § 414(v)(2)(B)(ii)
Pub. L. 113–295, § 221(a)(55), amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) listed applicable dollar amounts for taxable years 2002 to 2006 and thereafter for an applicable employer plan other than a plan described in section 401(k)(11) or 408(p) and an applicable employer plan described in section 401(k)(11) or 408(p), respectively
Source evidence
Code amendment note
Subsec. (v)(2)(B)(i), (ii). Pub. L. 113–295, § 221(a)(55), amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) listed applicable dollar amounts for taxable years 2002 to 2006 and thereafter for an applicable employer plan other than a plan described in section 401(k)(11) or 408(p) and an applicable employer plan described in section 401(k)(11) or 408(p), respectively.
Enacted provision · exact public law section
(55) Catch-up contributions.— Clauses (i) and (ii) of section 414(v)(2)(B) are amended to read as follows: “(i) In the case of an applicable employer plan other than a plan described in section 401(k)(11) or 408(p), the applicable dollar amount is $5,000. “(ii) In the case of an applicable employer plan described in section 401(k)(11) or 408(p), the applicable dollar amount is $2,500.” .
2015
Protecting Americans from Tax Hikes Act of 2015
Pub. L. 114–113 § 336(a)(1) · 129 Stat. 2242
1. Amended · 26 U.S.C. § 414(c)
  Pub. L. 114–113, § 336(a)(1), designated existing provisions as par. (1)
2. Inserted · 26 U.S.C. § 414(c)
  Pub. L. 114–113, § 336(a)(1), inserted heading
3. Substituted · 26 U.S.C. § 414(c)
  Pub. L. 114–113, § 336(a)(1), substituted “Except as provided in paragraph (2), for purposes” for “For purposes”
4. Added · 26 U.S.C. § 414(c)
  Pub. L. 114–113, § 336(a)(1), added par. (2)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 114–113, § 336(a)(1), designated existing provisions as par. (1), inserted heading, substituted “Except as provided in paragraph (2), for purposes” for “For purposes”, and added par. (2).
Enacted provision · exact public law section
(1) In general.— Section 414(c) is amended— (A) by striking “For purposes” and inserting the following: “(1) In general.— Except as provided in paragraph (2), for purposes” , and (B) by adding at the end the following new paragraph: “(2) Special rules relating to church plans.— “(A) General rule.— Except as provided in subparagraphs (B) and (C), for purposes of this subsection and subsection (m), an organization that is otherwise eligible to participate in a church plan shall not be aggregated with another such organization and treated as a single employer with such other organization for a plan year beginning in a taxable year unless— “(i) one such organization provides (directly or indirectly) at least 80 percent of the operating funds for the other organization during the preceding taxable year of the recipient organization, and “(ii) there is a degree of common management or supervision between the organizations such that the organization providing the operating funds is directly involved in the day-to-day operations of the other organization. “(B) Nonqualified church-controlled organizations.— Notwithstanding subparagraph (A), for purposes of this subsection and subsection (m), an organization that is a nonqualified church-controlled organization shall be aggregated with 1 or more other nonqualified church-controlled organizations, or with an organization that is not exempt from tax under section 501, and treated as a single employer with such other organization, if at least 80 percent of the directors or trustees of such other organization are either representatives of, or directly or indirectly controlled by, such nonqualified church-controlled organization. For purposes of this subparagraph, the term ‘nonqualified church-controlled organization’ means a church-controlled tax-exempt organization described in section 501(c)(3) that is not a qualified church-controlled organization (as defined in section 3121(w)(3)(B)). “(C) Permissive aggregation among church-related organizations.— The church or convention or association of churches with which an organization described in subparagraph (A) is associated (within the meaning of subsection (e)(3)(D)), or an organization designated by such church or convention or association of churches, may elect to treat such organizations as a single employer for a plan year. Such election, once made, shall apply to all succeeding plan years unless revoked with notice provided to the Secretary in such manner as the Secretary shall prescribe. “(D) Permissive disaggregation of church-related organizations.— For purposes of subparagraph (A), in the case of a church plan, an employer may elect to treat churches (as defined in section 403(b)(12)(B)) separately from entities that are not churches (as so defined), without regard to whether such entities maintain separate church plans. Such election, once made, shall apply to all succeeding plan years unless revoked with notice provided to the Secretary in such manner as the Secretary shall prescribe.” .
2015
Protecting Americans from Tax Hikes Act of 2015
Pub. L. 114–113 § 336(d)(1) · 129 Stat. 2242
Added · 26 U.S.C. § 414(z)
Pub. L. 114–113, § 336(d)(1), added subsec. (z)
Source evidence
Code amendment note
Subsec. (z). Pub. L. 114–113, § 336(d)(1), added subsec. (z).
Enacted provision · exact public law section
(1) In general.— Section 414 is amended by adding at the end the following new subsection: “(z) Certain Plan Transfers and Mergers.— “(1) In general.— Under rules prescribed by the Secretary, except as provided in paragraph (2), no amount shall be includible in gross income by reason of— “(A) a transfer of all or a portion of the accrued benefit of a participant or beneficiary, whether or not vested, from a church plan that is a plan described in section 401(a) or an annuity contract described in section 403(b) to an annuity contract described in section 403(b), if such plan and annuity contract are both maintained by the same church or convention or association of churches, “(B) a transfer of all or a portion of the accrued benefit of a participant or beneficiary, whether or not vested, from an annuity contract described in section 403(b) to a church plan that is a plan described in section 401(a), if such plan and annuity contract are both maintained by the same church or convention or association of churches, or “(C) a merger of a church plan that is a plan described in section 401(a), or an annuity contract described in section 403(b), with an annuity contract described in section 403(b), if such plan and annuity contract are both maintained by the same church or convention or association of churches. “(2) Limitation.— Paragraph (1) shall not apply to a transfer or merger unless the participant’s or beneficiary’s total accrued benefit immediately after the transfer or merger is equal to or greater than the participant’s or beneficiary’s total accrued benefit immediately before the transfer or merger, and such total accrued benefit is nonforfeitable after the transfer or merger. “(3) Qualification.— A plan or annuity contract shall not fail to be considered to be described in section 401(a) or 403(b) merely because such plan or annuity contract engages in a transfer or merger described in this subsection. “(4) Definitions.— For purposes of this subsection— “(A) Church or convention or association of churches.— The term ‘church or convention or association of churches’ includes an organization described in subparagraph (A) or (B)(ii) of subsection (e)(3). “(B) Annuity contract.— The term ‘annuity contract’ includes a custodial account described in section 403(b)(7) and a retirement income account described in section 403(b)(9). “(C) Accrued benefit.— The term ‘accrued benefit’ means— “(i) in the case of a defined benefit plan, the employee’s accrued benefit determined under the plan, and “(ii) in the case of a plan other than a defined benefit plan, the balance of the employee’s account under the plan.” .
2018
Energy and Water Development and Related Agencies Appropriations Act, 2018
Pub. L. 115–141 § 401(a)(87) · 132 Stat. 348
Substituted · 26 U.S.C. § 414(l)(2)(G)
Pub. L. 115–141, § 401(a)(87), substituted “depository institutions” for “banks” in heading
Source evidence
Code amendment note
Subsec. (l)(2)(G). Pub. L. 115–141, § 401(a)(87), substituted “depository institutions” for “banks” in heading.
Enacted provision · exact public law section
Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.
2018
Energy and Water Development and Related Agencies Appropriations Act, 2018
Pub. L. 115–141 § 401(a)(88) · 132 Stat. 348
Substituted · 26 U.S.C. § 414(u)(6)
Pub. L. 115–141, § 401(a)(88), substituted “section 457(b)))” for “section 457(b))”
Source evidence
Code amendment note
Subsec. (u)(6). Pub. L. 115–141, § 401(a)(88), substituted “section 457(b)))” for “section 457(b))”.
Enacted provision · exact public law section
Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.
2018
Energy and Water Development and Related Agencies Appropriations Act, 2018
Pub. L. 115–141 § 401(a)(89) · 132 Stat. 348
Substituted · 26 U.S.C. § 414(x)(1)
Pub. L. 115–141, § 401(a)(89), substituted “is” for “are”
Source evidence
Code amendment note
Subsec. (x)(1). Pub. L. 115–141, § 401(a)(89), substituted “is” for “are”.
Enacted provision · exact public law section
Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.
2018
Energy and Water Development and Related Agencies Appropriations Act, 2018
Pub. L. 115–141 § 401(a)(90) · 132 Stat. 348
Struck · 26 U.S.C. § 414(y)(1)(C)(i)
Pub. L. 115–141, § 401(a)(90), struck out “of such Code” after “section 501(c)(3)”
Source evidence
Code amendment note
Subsec. (y)(1)(C)(i). Pub. L. 115–141, § 401(a)(90), struck out “of such Code” after “section 501(c)(3)”.
Enacted provision · exact public law section
Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.
2018
Energy and Water Development and Related Agencies Appropriations Act, 2018
Pub. L. 115–141 § 401(a)(91) · 132 Stat. 348
Substituted · 26 U.S.C. § 414(y)(2)
Pub. L. 115–141, § 401(a)(91), substituted “subparagraphs” for “subparagraph”
Source evidence
Code amendment note
Subsec. (y)(2). Pub. L. 115–141, § 401(a)(91), substituted “subparagraphs” for “subparagraph”.
Enacted provision · exact public law section
Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.
2020
Coronavirus Aid, Relief, and Economic Security Act
Pub. L. 116–136 div. A title III § 3609(b) · 134 Stat. 281
Added · 26 U.S.C. § 414(y)(1)(D)
Pub. L. 116–136 added subpar. (D)
Source evidence
Code amendment note
Subsec. (y)(1)(D). Pub. L. 116–136 added subpar. (D).
Enacted provision · exact public law section
(b) Internal Revenue Code of 1986.— Section 414(y)(1) of the Internal Revenue Code of 1986 26 USC 414. is amended— (1) by striking “or” at the end of subparagraph (B); (2) by striking the period at the end of subparagraph (C)(iv) and inserting “; or”; and (3) by inserting after subparagraph (C) the following new subparagraph: “(D) that, as of January 1, 2000, was maintained by an employer— “(i) described in section 501(c)(3), “(ii) who has been in existence since at least 1938, “(iii) who conducts medical research directly or indirectly through grant making, and “(iv) whose primary exempt purpose is to provide services with respect to mothers and children.” .
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 315(a)(1) · 136 Stat. 4459
1. Amended · 26 U.S.C. § 414(b)
  Pub. L. 117–328, § 315(a)(1), designated existing provisions as par. (1)
2. Inserted · 26 U.S.C. § 414(b)
  Pub. L. 117–328, § 315(a)(1), inserted heading
3. Added · 26 U.S.C. § 414(b)
  Pub. L. 117–328, § 315(a)(1), added par. (2)
Source evidence
Code amendment note
Subsec. (b). Pub. L. 117–328, § 315(a)(1), designated existing provisions as par. (1), inserted heading, and added par. (2).
Enacted provision · exact public law section
(1) in subsection (b)— (A) by striking “For purposes of” and inserting the following: “(1) In general.— For purposes of” , and (B) by adding at the end the following new paragraphs: “(2) Special rules for applying family attribution.— For purposes of applying the attribution rules under section 1563 with respect to paragraph (1), the following rules apply: “(A) Community property laws shall be disregarded for purposes of determining ownership. “(B) Except as provided by the Secretary, stock of an individual not attributed under section 1563(e)(5) to such individual’s spouse shall not be attributed to such spouse by reason of the combined application of paragraphs (1) and (6)(A) of section 1563(e). “(C) Except as provided by the Secretary, in the case of stock in different corporations that is attributed to a child under section 1563(e)(6)(A) from each parent, and is not attributed to such parents as spouses under section 1563(e)(5), such attribution to the child shall not by itself result in such corporations being members of the same controlled group. “(3) Plan shall not fail to be treated as satisfying this section.— If application of paragraph (2) causes 2 or more entities to be a controlled group or to no longer be in a controlled group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies.” , and
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 315(a)(2)(A) · 136 Stat. 4459
1. Amended · 26 U.S.C. § 414(m)(6)(B)
  Pub. L. 117–328, § 315(a)(2)(A), (B), designated existing provisions as cl. (i)
2. Inserted · 26 U.S.C. § 414(m)(6)(B)
  Pub. L. 117–328, § 315(a)(2)(A), (B), inserted heading
3. Added · 26 U.S.C. § 414(m)(6)(B)
  Pub. L. 117–328, § 315(a)(2)(A), (B), added cls. (ii) and (iii)
Source evidence
Code amendment note
Subsec. (m)(6)(B). Pub. L. 117–328, § 315(a)(2)(A), (B), designated existing provisions as cl. (i), inserted heading, and added cls. (ii) and (iii).
Enacted provision · exact public law section
(A) by striking “Ownership.—In determining” and inserting the following: “ Ownership.— “(i) In general.— In determining” ,
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 315(a)(2)(C) · 136 Stat. 4459
Substituted · 26 U.S.C. § 414(m)(6)(B)(i)
Pub. L. 117–328, § 315(a)(2)(C), substituted “apply, except that community property laws shall be disregarded for purposes of determining ownership” for “apply”
Source evidence
Code amendment note
Subsec. (m)(6)(B)(i). Pub. L. 117–328, § 315(a)(2)(C), substituted “apply, except that community property laws shall be disregarded for purposes of determining ownership” for “apply”.
Enacted provision · exact public law section
(C) by striking “apply” in clause (i), as so added, and inserting “apply, except that community property laws shall be disregarded for purposes of determining ownership”.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 339(a)(2) · 136 Stat. 4459
Inserted · 26 U.S.C. § 414(p)(1)(B)
Pub. L. 117–328, § 339(a)(2), inserted concluding provisions
Source evidence
Code amendment note
Subsec. (p)(1)(B). Pub. L. 117–328, § 339(a)(2), inserted concluding provisions.
Enacted provision · exact public law section
(2) Conforming amendment.— Subparagraph (B) of section 414(p)(1) is amended by adding at the end the following flush sentence: “For Definition. purposes of clause (ii), the term ‘Tribal’ with respect to a domestic relations law means such a law which is issued by or under the laws of an Indian tribal government, a subdivision of such an Indian tribal government, or an agency or instrumentality of either.” .
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 339(a)(1) · 136 Stat. 4459
Inserted · 26 U.S.C. § 414(p)(1)(B)(ii)
Pub. L. 117–328, § 339(a)(1), inserted “or Tribal” after “State”
Source evidence
Code amendment note
Subsec. (p)(1)(B)(ii). Pub. L. 117–328, § 339(a)(1), inserted “or Tribal” after “State”.
Enacted provision · exact public law section
(1) In general.— Clause (ii) of section 414(p)(1)(B) is amended by inserting “or Tribal” after “State”.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
Department of Commerce Appropriations Act, 2023
Pub. L. 117–328 § 109(a)(1) · 136 Stat. 4459
Inserted · 26 U.S.C. § 414(v)(2)(B)(i)
Pub. L. 117–328, § 109(a)(1), inserted before period at end “(the adjusted dollar amount, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year)”
Source evidence
Code amendment note
Subsec. (v)(2)(B)(i). Pub. L. 117–328, § 109(a)(1), inserted before period at end “(the adjusted dollar amount, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year)”.
Enacted provision · exact public law section
Sec. 109. To carry out the responsibilities of the National Oceanic and Atmospheric Administration (NOAA), the Administrator of NOAA is authorized to: (1) enter into grants and cooperative agreements with; (2) use on a non-reimbursable basis land, services, equipment, personnel, and facilities provided by; and (3) receive and expend funds made available on a consensual basis from: a Federal agency, State or subdivision thereof, local government, Tribal government, Territory, or possession or any subdivisions thereof: Provided, That funds received for permitting and related regulatory activities pursuant to this section shall be deposited under the heading “National Oceanic and Atmospheric Administration—Operations, Research, and Facilities” and shall remain available until September 30, 2024, for such purposes: Provided further, That all funds within this section and their corresponding uses are subject to section 505 of this Act.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
Department of the Treasury Appropriations Act, 2023
Pub. L. 117–328 § 117(b)(1)(A) · 136 Stat. 4459
Substituted · 26 U.S.C. § 414(v)(2)(B)(ii)
Pub. L. 117–328, § 117(b)(1)(A), substituted “except as provided in clause (iii), the applicable” for “the applicable”
Source evidence
Code amendment note
Subsec. (v)(2)(B)(ii). Pub. L. 117–328, § 117(b)(1)(A), substituted “except as provided in clause (iii), the applicable” for “the applicable”.
Enacted provision · exact public law section
Sec. 117. The Secretary of the Treasury may transfer funds from the “Bureau of the Fiscal Service—Salaries and Expenses” to the Debt Collection Fund as necessary to cover the costs of debt collection: Provided, Reimbursement. That such amounts shall be reimbursed to such salaries and expenses account from debt collections received in the Debt Collection Fund.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
Department of Commerce Appropriations Act, 2023
Pub. L. 117–328 § 109(a)(2) · 136 Stat. 4459
Inserted · 26 U.S.C. § 414(v)(2)(B)(ii)
Pub. L. 117–328, § 109(a)(2), inserted before period at end “(the adjusted dollar amount, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year)”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 117–328, § 109(a)(2), inserted before period at end “(the adjusted dollar amount, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year)”.
Enacted provision · exact public law section
Sec. 109. To carry out the responsibilities of the National Oceanic and Atmospheric Administration (NOAA), the Administrator of NOAA is authorized to: (1) enter into grants and cooperative agreements with; (2) use on a non-reimbursable basis land, services, equipment, personnel, and facilities provided by; and (3) receive and expend funds made available on a consensual basis from: a Federal agency, State or subdivision thereof, local government, Tribal government, Territory, or possession or any subdivisions thereof: Provided, That funds received for permitting and related regulatory activities pursuant to this section shall be deposited under the heading “National Oceanic and Atmospheric Administration—Operations, Research, and Facilities” and shall remain available until September 30, 2024, for such purposes: Provided further, That all funds within this section and their corresponding uses are subject to section 505 of this Act.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
Department of the Treasury Appropriations Act, 2023
Pub. L. 117–328 § 117(b)(1)(B) · 136 Stat. 4459
Added · 26 U.S.C. § 414(v)(2)(B)(iii)
Pub. L. 117–328, § 117(b)(1)(B), added cl. (iii)
Source evidence
Code amendment note
Subsec. (v)(2)(B)(iii). Pub. L. 117–328, § 117(b)(1)(B), added cl. (iii).
Enacted provision · exact public law section
Sec. 117. The Secretary of the Treasury may transfer funds from the “Bureau of the Fiscal Service—Salaries and Expenses” to the Debt Collection Fund as necessary to cover the costs of debt collection: Provided, Reimbursement. That such amounts shall be reimbursed to such salaries and expenses account from debt collections received in the Debt Collection Fund.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
Department of the Treasury Appropriations Act, 2023
Pub. L. 117–328 § 117(b)(2) · 136 Stat. 4459
1. Amended · 26 U.S.C. § 414(v)(2)(C)
  Pub. L. 117–328, § 117(b)(2), designated existing provisions as cl. (i)
2. Inserted · 26 U.S.C. § 414(v)(2)(C)
  Pub. L. 117–328, § 117(b)(2), inserted heading
3. Added · 26 U.S.C. § 414(v)(2)(C)
  Pub. L. 117–328, § 117(b)(2), added cl. (ii)
Source evidence
Code amendment note
Subsec. (v)(2)(C). Pub. L. 117–328, § 117(b)(2), designated existing provisions as cl. (i), inserted heading, and added cl. (ii).
Enacted provision · exact public law section
Sec. 117. The Secretary of the Treasury may transfer funds from the “Bureau of the Fiscal Service—Salaries and Expenses” to the Debt Collection Fund as necessary to cover the costs of debt collection: Provided, Reimbursement. That such amounts shall be reimbursed to such salaries and expenses account from debt collections received in the Debt Collection Fund.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
Department of Commerce Appropriations Act, 2023
Pub. L. 117–328 § 109(c) · 136 Stat. 4459
Inserted · 26 U.S.C. § 414(v)(2)(C)
Pub. L. 117–328, § 109(c), inserted at end “In the case of a year beginning after December 31, 2025, the Secretary shall adjust annually the adjusted dollar amounts applicable under clauses (i) and (ii) of subparagraph (E) for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence; except that the base period taken into account shall be the calendar quarter beginning July 1, 2024.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 117–328, § 109(c), inserted at end “In the case of a year beginning after December 31, 2025, the Secretary shall adjust annually the adjusted dollar amounts applicable under clauses (i) and (ii) of subparagraph (E) for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence; except that the base period taken into account shall be the calendar quarter beginning July 1, 2024.”
Enacted provision · exact public law section
Sec. 109. To carry out the responsibilities of the National Oceanic and Atmospheric Administration (NOAA), the Administrator of NOAA is authorized to: (1) enter into grants and cooperative agreements with; (2) use on a non-reimbursable basis land, services, equipment, personnel, and facilities provided by; and (3) receive and expend funds made available on a consensual basis from: a Federal agency, State or subdivision thereof, local government, Tribal government, Territory, or possession or any subdivisions thereof: Provided, That funds received for permitting and related regulatory activities pursuant to this section shall be deposited under the heading “National Oceanic and Atmospheric Administration—Operations, Research, and Facilities” and shall remain available until September 30, 2024, for such purposes: Provided further, That all funds within this section and their corresponding uses are subject to section 505 of this Act.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
Department of Commerce Appropriations Act, 2023
Pub. L. 117–328 § 109(b) · 136 Stat. 4459
Added · 26 U.S.C. § 414(v)(2)(E)
Pub. L. 117–328, § 109(b), added subpar. (E)
Source evidence
Code amendment note
Subsec. (v)(2)(E). Pub. L. 117–328, § 109(b), added subpar. (E).
Enacted provision · exact public law section
Sec. 109. To carry out the responsibilities of the National Oceanic and Atmospheric Administration (NOAA), the Administrator of NOAA is authorized to: (1) enter into grants and cooperative agreements with; (2) use on a non-reimbursable basis land, services, equipment, personnel, and facilities provided by; and (3) receive and expend funds made available on a consensual basis from: a Federal agency, State or subdivision thereof, local government, Tribal government, Territory, or possession or any subdivisions thereof: Provided, That funds received for permitting and related regulatory activities pursuant to this section shall be deposited under the heading “National Oceanic and Atmospheric Administration—Operations, Research, and Facilities” and shall remain available until September 30, 2024, for such purposes: Provided further, That all funds within this section and their corresponding uses are subject to section 505 of this Act.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
Financial Services and General Government Appropriations Act, 2023
Pub. L. 117–328 § 603(a) · 136 Stat. 4459
Added · 26 U.S.C. § 414(v)(7)
Pub. L. 117–328, § 603(a), added par. (7)
Source evidence
Code amendment note
Subsec. (v)(7). Pub. L. 117–328, § 603(a), added par. (7).
Enacted provision · exact public law section
Sec. 603. The expenditure of any appropriation under this Act for any consulting service through procurement contract pursuant to 5 U.S.C. 3109, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
Energy and Water Development and Related Agencies Appropriations Act, 2023
Pub. L. 117–328 § 301(b)(1) · 136 Stat. 4459
Added · 26 U.S.C. § 414(aa)
Pub. L. 117–328, § 301(b)(1), added subsec. (aa)
Source evidence
Code amendment note
Subsec. (aa). Pub. L. 117–328, § 301(b)(1), added subsec. (aa).
Enacted provision · exact public law section
(1) Unless the Secretary of Energy notifies the Committees on Appropriations of both Houses of Congress at least 3 full business days in advance, none of the funds made available in this title may be used to— (A) make a grant allocation or discretionary grant award totaling $1,000,000 or more; (B) make a discretionary contract award or Other Transaction Agreement totaling $1,000,000 or more, including a contract covered by the Federal Acquisition Regulation; (C) issue a letter of intent to make an allocation, award, or Agreement in excess of the limits in subparagraph (A) or (B); or (D) announce publicly the intention to make an allocation, award, or Agreement in excess of the limits in subparagraph (A) or (B).
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 320(b) · 136 Stat. 4459
Added · 26 U.S.C. § 414(bb)
Pub. L. 117–328, § 320(b), added subsec. (bb)
Source evidence
Code amendment note
Subsec. (bb). Pub. L. 117–328, § 320(b), added subsec. (bb).
Enacted provision · exact public law section
(b) Amendment of Internal Revenue Code of 1986.— Section 414, as amended by the preceding provisions of this Act, 26 USC 414. is amended by adding at the end the following new subsection: “(bb) Eliminating Unnecessary Plan Requirements Related to Unenrolled Participants.— “(1) In general.— Notwithstanding any other provision of this title, with respect to any defined contribution plan, no disclosure, notice, or other plan document (other than the notices and documents described in subparagraphs (A) and (B)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant is furnished— “(A) an annual reminder notice of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan, and “(B) any document requested by such participant that the participant would be entitled to receive notwithstanding this subsection. “(2) Unenrolled participant.— For purposes of this subsection, the term ‘unenrolled participant’ means an employee who— “(A) is eligible to participate in a defined contribution plan, “(B) has been furnished— “(i) the summary plan description pursuant to section 104(b) of the Employee Retirement Income Security Act of 1974, and “(ii) any other notices related to eligibility under the plan and required to be furnished under this title, or the Employee Retirement Income Security Act of 1974, in connection with such participant’s initial eligibility to participate in such plan, “(C) is not participating in such plan, and “(D) satisfies such other criteria as the Secretary of the Treasury may determine appropriate, as prescribed in guidance issued in consultation with the Secretary of Labor. For purposes of this subsection, any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility. “(3) Annual reminder notice.— For purposes of this subsection, the term ‘annual reminder notice’ means the notice described in section 111(c) of the Employee Retirement Income Security Act of 1974.” .
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.
2022
SECURE 2.0 Act of 2022
Pub. L. 117–328 § 350(a) · 136 Stat. 4459
Added · 26 U.S.C. § 414(cc)
Pub. L. 117–328, § 350(a), added subsec. (cc)
Source evidence
Code amendment note
Subsec. (cc). Pub. L. 117–328, § 350(a), added subsec. (cc).
Enacted provision · exact public law section
(a) In General.— Section 414, 26 USC 414. as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection: “(cc) Correcting Automatic Contribution Errors.— “(1) In general.— Any plan or arrangement shall not fail to be treated as a plan described in sections 401(a), 403(b), 408, or 457(b), as applicable, solely by reason of a corrected error. “(2) Corrected error defined.— For purposes of this subsection, the term ‘corrected error’ means a reasonable administrative error— “(A) (i) made in implementing an automatic enrollment or automatic escalation feature with respect to an eligible employee (or an affirmative election made by an eligible employee covered by such feature), or “(ii) made by failing to afford an eligible employee the opportunity to make an affirmative election because such employee was improperly excluded from the plan], and “(B) that is corrected prospectively by implementing an automatic enrollment or automatic escalation feature with respect to an eligible employee (or an affirmative election made by an eligible employee) determined in accordance with the terms of an eligible automatic contribution arrangement (as defined under subsection (w)(3)), provided that— “(i) such implementation error is corrected not later than— “(I) the date of the first payment of compensation made by the employer to the employee on or after the last day of the 9½ month-period after the end of the plan year during which such error with respect to the employee first occurred, or “(II) if earlier in the case of an employee who notifies the plan sponsor of such error, the date of the first payment of compensation made by the employer to the employee on or after the last day of the month following the month in which such notification was made, “(ii) in the case of an employee who would have been entitled to additional matching contributions had any missed elective deferral been made, the plan sponsor makes a corrective allocation, not later than the deadline specified by the Secretary in regulations or other guidance prescribed under paragraph (3), of matching contributions on behalf of the employee in an amount equal to the additional matching contributions to which the employee would have been so entitled (adjusted to account for earnings had the missed elective deferrals been made). “(iii) such implementation error is of a type which is so corrected for all similarly situated participants in a nondiscriminatory manner, “(iv) notice of such error is given to the employee not later than 45 days after the date on which correct deferrals begin, and “(v) the notice under clause (iv) satisfies such regulations or other guidance as the Secretary prescribes under paragraph (4). Such correction may occur before or after the participant has terminated employment and may occur without regard to whether the error is identified by the Secretary. “(3) No obligation for employer to restore missed elective deferrals.— If the requirements of paragraph (2)(B) are satisfied, the employer will not be required to provide eligible employees with the missed amount of elective deferrals resulting from a reasonable administrative error described in paragraph (2)(A)(i) or (ii) through a qualified nonelective contribution, or otherwise. “(4) Regulations and guidance for favorable correction methods.— The Secretary shall by regulations or other guidance of general applicability prescribe— “(A) the deadline for making a corrective allocation of matching contributions required by paragraph (2)(B)(ii), “(B) the content of the notice required by paragraph (2)(B)(iv), “(C) the manner in which the amount of the corrective allocation under paragraph (2)(B)(ii) is determined, “(D) the manner of adjustment to account for earnings on matching contributions under paragraph (2)(B)(ii), and “(E) such other rules as are necessary to carry out the purposes of the subsection.” .
Effective date note
Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.” Amendment by section 117(b) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 117(h) of Pub. L. 117–328, set out as a note under section 401 of this title. Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.” Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.” Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.” Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.” Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.

221 of 221 references resolved to an enrolled provision

Notes

Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Internal Revenue Notices listed in a table under section 401 of this title.

Editorial Notes

References in Text

The Railroad Retirement Act of 1935 or 1937, referred to in subsec. (d), means act Aug. 29, 1935, ch. 812, 49 Stat. 867, known as the Railroad Retirement Act of 1935. The Railroad Retirement Act of 1935 was amended generally by act June 24, 1937, ch. 382, part I, 50 Stat. 307, and was known as the Railroad Retirement Act of 1937. The Railroad Retirement Act of 1937 was amended generally and redesignated the Railroad Retirement Act of 1974 by Pub. L. 93–444, title I, Oct. 16, 1974, 88 Stat. 1305 and is classified generally to subchapter IV (§ 231 et seq.) of chapter 9 of Title 45, Railroads. For complete classification of this Act to the Code, see Tables.

The International Organizations Immunities Act (59 Stat. 669), referred to in subsec. (d), is act Dec. 29, 1945, ch. 652, title I, 59 Stat. 669, which is classified principally to subchapter XVIII (§ 288 et seq.) of chapter 7 of Title 22, Foreign Relations and Intercourse. The Act also amended several other laws including the Internal Revenue Code of 1939. For exemption from taxation of income of international organizations and of the compensation of employees thereof, see sections 892 and 893 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 288 of Title 22 and Tables.

The Employee Retirement Income Security Act of 1974, referred to in subsecs. (f)(3), (5), (6)(B), (F), (l)(1), (2)(E), and (bb)(2)(B), (3), is Pub. L. 93–406, Sept. 2, 1974, 88 Stat. 829, which is classified principally to chapter 18 (§ 1001 et seq.) of Title 29, Labor. Title IV of the Act is classified principally to subchapter III (§ 1301 et seq.) of chapter 18 of Title 29. Sections 3(37)(A)(iii), 104(b), and 111(c) of the Act are classified to sections 1002(37)(A)(iii), 1024(b), and 1031(c), respectively, of Title 29. Section 4403(b) and (c) of the Employee Retirement Income Security Act of 1974 probably means section 4303(b) and (c) of such Act which is classified to section 1453(b) and (c) of Title 29. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Tables.

The date of the enactment of the Multiemployer Pension Plan Amendments Act of 1980, referred to in subsec. (f)(4), (5), means the date of the enactment of Pub. L. 96–364, which was approved Sept. 26, 1980.

Effective date of the Multiemployer Pension Plan Amendments Act of 1980, referred to in subsec. (f)(5), probably means the date of enactment of the Multiemployer Pension Plan Amendments Act of 1980, which was approved Sept. 26, 1980.

The Pension Protection Act of 2006, referred to in subsecs. (f)(6)(A) and (y)(1)(A), (3)(B), is Pub. L. 109–280, Aug. 17, 2006, 120 Stat. 780. Section 104 of the Act is set out as a note under section 401 of this title. For complete classification of this Act to the Code, see Short Title of 2006 Amendment note set out under section 1001 of Title 29, Labor, and Tables.

Section 403(b)(7)(A)(ii), referred to in subsec. (u)(12)(B)(i), probably means section 403(b)(7)(A)(ii) of this title prior to amendment by Pub. L. 116–94, div. O, title I, § 109(c)(2), Dec. 20, 2019, 133 Stat. 3151.

The Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, referred to in subsec. (y)(1)(A)(ii), (3)(B), is Pub. L. 111–192, June 25, 2010, 124 Stat. 1280. For complete classification of this Act to the Code, see Short Title of 2010 Amendment note set out under section 1001 of Title 29, Labor, and Tables.

Amendments1976–2022 · 26 rounds

2022

Subsec. (b). Pub. L. 117–328, § 315(a)(1), designated existing provisions as par. (1), inserted heading, and added par. (2).

Subsec. (m)(6)(B). Pub. L. 117–328, § 315(a)(2)(A), (B), designated existing provisions as cl. (i), inserted heading, and added cls. (ii) and (iii).

Subsec. (m)(6)(B)(i). Pub. L. 117–328, § 315(a)(2)(C), substituted “apply, except that community property laws shall be disregarded for purposes of determining ownership” for “apply”.

Subsec. (p)(1)(B). Pub. L. 117–328, § 339(a)(2), inserted concluding provisions.

Subsec. (p)(1)(B)(ii). Pub. L. 117–328, § 339(a)(1), inserted “or Tribal” after “State”.

Subsec. (v)(2)(B)(i). Pub. L. 117–328, § 109(a)(1), inserted before period at end “(the adjusted dollar amount, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year)”.

Subsec. (v)(2)(B)(ii). Pub. L. 117–328, § 117(b)(1)(A), substituted “except as provided in clause (iii), the applicable” for “the applicable”.

Pub. L. 117–328, § 109(a)(2), inserted before period at end “(the adjusted dollar amount, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year)”.

Subsec. (v)(2)(B)(iii). Pub. L. 117–328, § 117(b)(1)(B), added cl. (iii).

Subsec. (v)(2)(C). Pub. L. 117–328, § 117(b)(2), designated existing provisions as cl. (i), inserted heading, and added cl. (ii).

Pub. L. 117–328, § 109(c), inserted at end “In the case of a year beginning after December 31, 2025, the Secretary shall adjust annually the adjusted dollar amounts applicable under clauses (i) and (ii) of subparagraph (E) for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence; except that the base period taken into account shall be the calendar quarter beginning July 1, 2024.”

Subsec. (v)(2)(E). Pub. L. 117–328, § 109(b), added subpar. (E).

Subsec. (v)(7). Pub. L. 117–328, § 603(a), added par. (7).

Subsec. (aa). Pub. L. 117–328, § 301(b)(1), added subsec. (aa).

Subsec. (bb). Pub. L. 117–328, § 320(b), added subsec. (bb).

Subsec. (cc). Pub. L. 117–328, § 350(a), added subsec. (cc).

2020

Subsec. (y)(1)(D). Pub. L. 116–136 added subpar. (D).

2018

Subsec. (l)(2)(G). Pub. L. 115–141, § 401(a)(87), substituted “depository institutions” for “banks” in heading.

Subsec. (u)(6). Pub. L. 115–141, § 401(a)(88), substituted “section 457(b)))” for “section 457(b))”.

Subsec. (x)(1). Pub. L. 115–141, § 401(a)(89), substituted “is” for “are”.

Subsec. (y)(1)(C)(i). Pub. L. 115–141, § 401(a)(90), struck out “of such Code” after “section 501(c)(3)”.

Subsec. (y)(2). Pub. L. 115–141, § 401(a)(91), substituted “subparagraphs” for “subparagraph”.

2015

Subsec. (c). Pub. L. 114–113, § 336(a)(1), designated existing provisions as par. (1), inserted heading, substituted “Except as provided in paragraph (2), for purposes” for “For purposes”, and added par. (2).

Subsec. (z). Pub. L. 114–113, § 336(d)(1), added subsec. (z).

2014

Subsec. (n)(3)(C). Pub. L. 113–295, § 221(a)(19)(B)(i), struck out “120,” after “117(d),”.

Subsec. (t)(2). Pub. L. 113–295, § 221(a)(19)(B)(ii), struck out “120,” after “117(d),”.

Subsec. (v)(2)(B)(i), (ii). Pub. L. 113–295, § 221(a)(55), amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) listed applicable dollar amounts for taxable years 2002 to 2006 and thereafter for an applicable employer plan other than a plan described in section 401(k)(11) or 408(p) and an applicable employer plan described in section 401(k)(11) or 408(p), respectively.

Subsec. (y). Pub. L. 113–97, § 201, added subsec. (y).

Subsec. (y)(1)(C). Pub. L. 113–235, § 3(b)(1), added subpar. (C).

Subsec. (y)(2). Pub. L. 113–235, § 3(b)(2), substituted “subparagraph (B) and (C) of paragraph (1)” for “paragraph (1)(B)”.

Subsec. (y)(3). Pub. L. 113–97, § 203(a), added par. (3).

2008

Subsec. (l)(2)(B)(i)(I). Pub. L. 110–458, § 101(d)(2)(E), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “the amount determined under section 431(c)(6)(A)(i) in the case of a multiemployer plan (and the sum of the funding shortfall and target normal cost determined under section 430 in the case of any other plan), over”.

Subsec. (l)(2)(G). Pub. L. 110–289, § 1604(b)(4), which directed substitution of “bridge depository institution” for “bridge bank”, was executed by making the substitution wherever appearing in text, to reflect the probable intent of Congress.

Subsec. (u). Pub. L. 110–245, § 105(b)(1)(B), inserted “and to differential wage payments to members on active duty” after “USERRA” in heading.

Subsec. (u)(9) to (11). Pub. L. 110–245, § 104(b), added par. (9) and redesignated former pars. (9) and (10) as (10) and (11), respectively.

Subsec. (u)(12). Pub. L. 110–245, § 105(b)(1)(A), added par. (12).

Subsec. (w)(3)(B) to (D). Pub. L. 110–458, § 109(b)(4), inserted “and” after comma at end of subpar. (B), redesignated subpar. (D) as (C), and struck out former subpar. (C) which read as follows: “under which, in the absence of an investment election by the participant, contributions described in subparagraph (B) are invested in accordance with regulations prescribed by the Secretary of Labor under section 404(c)(5) of the Employee Retirement Income Security Act of 1974, and”.

Subsec. (w)(5)(D), (E). Pub. L. 110–458, § 109(b)(5), added subpars. (D) and (E).

Subsec. (w)(6). Pub. L. 110–458, § 109(b)(6), inserted “or for purposes of applying the limitation under section 402(g)(1)” before period at end.

Subsec. (x)(1). Pub. L. 110–458, § 109(c)(1), inserted at end “In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately.”

2007

Subsec. (f)(6)(A)(ii)(I). Pub. L. 110–28, § 6611(a)(2)(A), substituted “for each of the 3 plan years immediately preceding the first plan year for which the election under this paragraph is effective with respect to the plan,” for “for each of the 3 plan years immediately before the date of enactment of the Pension Protection Act of 2006,”.

Subsec. (f)(6)(B). Pub. L. 110–28, § 6611(a)(2)(B), substituted “starting with any plan year beginning on or after January 1, 1999, and ending before January 1, 2008, as designated by the plan in the election made under subparagraph (A)(ii)” for “starting with the first plan year ending after the date of the enactment of the Pension Protection Act of 2006”.

Subsec. (f)(6)(E). Pub. L. 110–28, § 6611(b)(2), substituted “if it is a plan sponsored by an organization which is described in section 501(c)(5) and exempt from tax under section 501(a) and which was established in Chicago, Illinois, on August 12, 1881.” for “if it is a plan—

“(i) that was established in Chicago, Illinois, on August 12, 1881; and

“(ii) sponsored by an organization described in section 501(c)(5) and exempt from tax under section 501(a).”

Subsec. (f)(6)(F). Pub. L. 110–28, § 6611(a)(2)(C), added subpar. (F).

2006

Subsec. (d). Pub. L. 109–280, § 906(a)(1), inserted at end “The term ‘governmental plan’ includes a plan which is established and maintained by an Indian tribal government (as defined in section 7701(a)(40)), a subdivision of an Indian tribal government (determined in accordance with section 7871(d)), or an agency or instrumentality of either, and all of the participants of which are employees of such entity substantially all of whose services as such an employee are in the performance of essential governmental functions but not in the performance of commercial activities (whether or not an essential government function).”

Subsec. (f)(6). Pub. L. 109–280, § 1106(b), added par. (6).

Subsec. (h)(2). Pub. L. 109–280, § 906(b)(1)(C), inserted “or a governmental plan described in the last sentence of section 414(d) (relating to plans of Indian tribal governments),” after “foregoing,”.

Subsec. (l)(2)(B)(i)(I). Pub. L. 109–280, § 114(c), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “the amount determined under section 412(c)(7)(A)(i) with respect to the plan, over”.

Subsec. (w). Pub. L. 109–280, § 902(d)(1), added subsec. (w).

Subsec. (x). Pub. L. 109–280, § 903(a), added subsec. (x).

2004

Subsec. (q)(7). Pub. L. 108–311 substituted “subsection” for “section”.

2002

Subsec. (v)(2)(D). Pub. L. 107–147, § 411(o)(3), added subpar. (D).

Subsec. (v)(3)(A)(i). Pub. L. 107–147, § 411(o)(4), substituted “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined without regard to section 457(b)(3))” for “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457”.

Subsec. (v)(3)(B). Pub. L. 107–147, § 411(o)(5), substituted “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or 416” for “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416”.

Subsec. (v)(4)(B). Pub. L. 107–147, § 411(o)(6), inserted before period at end “, except that a plan described in clause (i) of section 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”.

Subsec. (v)(5). Pub. L. 107–147, § 411(o)(7)(A), struck out “, with respect to any plan year,” before “a participant” in introductory provisions.

Subsec. (v)(5)(A). Pub. L. 107–147, § 411(o)(7)(B), amended subpar. (A) generally. Prior to amendment, subpar (A) read as follows: “who has attained the age of 50 before the close of the plan year, and”.

Subsec. (v)(5)(B). Pub. L. 107–147, § 411(o)(7)(C), substituted “plan (or other applicable) year” for “plan year”.

Subsec. (v)(6)(C). Pub. L. 107–147, § 411(o)(8), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “This subsection shall not apply to an applicable employer plan described in subparagraph (A)(iii) for any year to which section 457(b)(3) applies.”

2001

Subsec. (p)(10). Pub. L. 107–16, § 635(b), substituted “section 409(d), and section 457(d)” for “and section 409(d)”.

Subsec. (p)(11). Pub. L. 107–16, § 635(a), in heading substituted “certain other plans” for “governmental and church plans” and in text inserted “or an eligible deferred compensation plan (within the meaning of section 457(b))” after “subsection (e))”.

Subsec. (p)(12), (13). Pub. L. 107–16, § 635(c), added par. (12) and redesignated former par. (12) as (13).

Subsec. (v). Pub. L. 107–16, § 631(a), added subsec. (v).

2000

Subsec. (s)(2). Pub. L. 106–554 substituted “section 125, 132(f)(4), 402(e)(3)” for “section 125, 402(e)(3)”.

1998

Subsec. (q)(5). Pub. L. 105–206 made technical amendment to Pub. L. 104–188, § 1434(c)(1)(E). See 1996 Amendment note below.

1997

Subsec. (e)(5)(A). Pub. L. 105–34, § 1601(d)(6)(A), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “For purposes of this part—

“(i) In general.—An employee of a church or a convention or association of churches shall include a duly ordained, commissioned, or licensed minister of a church who, in connection with the exercise of his or her ministry—

“(I) is a self-employed individual (within the meaning of section 401(c)(1)(B)), or

“(II) is employed by an organization other than an organization described in section 501(c)(3).

“(ii) Treatment as employer and employee.—

“(I) Self-employed.—A minister described in clause (i)(I) shall be treated as his or her own employer which is an organization described in section 501(c)(3) and which is exempt from tax under section 501(a).

“(II) Others.—A minister described in clause (i)(II) shall be treated as employed by an organization described in section 501(c)(3) and exempt from tax under section 501(a).”

Subsec. (e)(5)(C). Pub. L. 105–34, § 1522(a)(1), substituted “not otherwise participating” for “not eligible to participate”.

Subsec. (e)(5)(E). Pub. L. 105–34, § 1522(a)(2), added subpar. (E).

Subsec. (n)(3)(C). Pub. L. 105–34, § 1601(h)(2)(D)(i), inserted “137,” after “132,”.

Subsec. (q)(7), (9). Pub. L. 105–34, § 1601(d)(7), redesignated par. (7), relating to certain employees not considered highly compensated and excluded employees under pre-ERISA rules for church plans, as (9).

Subsec. (t)(2). Pub. L. 105–34, § 1601(h)(2)(D)(ii), inserted “137,” after “132,”.

1996

Subsecs. (b), (c). Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”.

Subsec. (e)(5). Pub. L. 104–188, § 1461(a), added par. (5).

Subsec. (m)(4)(B). Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”.

Subsec. (n)(2)(C). Pub. L. 104–188, § 1454(a), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “such services are of a type historically performed, in the business field of the recipient, by employees.”

Subsec. (n)(3)(B). Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”.

Subsec. (q)(1). Pub. L. 104–188, § 1431(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “In general.—The term ‘highly compensated employee’ means any employee who, during the year or the preceding year—

“(A) was at any time a 5-percent owner,

“(B) received compensation from the employer in excess of $75,000,

“(C) received compensation from the employer in excess of $50,000 and was in the top-paid group of employees for such year, or

“(D) was at any time an officer and received compensation greater than 50 percent of the amount in effect under section 415(b)(1)(A) for such year.

The Secretary shall adjust the $75,000 and $50,000 amounts under this paragraph at the same time and in the same manner as under section 415(d).”

Subsec. (q)(2), (3). Pub. L. 104–188, § 1431(c)(1)(A), redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which read as follows: “Special rule for current year.—In the case of the year for which the relevant determination is being made, an employee not described in subparagraph (B), (C), or (D) of paragraph (1) for the preceding year (without regard to this paragraph) shall not be treated as described in subparagraph (B), (C), or (D) of paragraph (1) unless such employee is a member of the group consisting of the 100 employees paid the greatest compensation during the year for which such determination is being made.”

Subsec. (q)(4). Pub. L. 104–188, § 1434(b)(1), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “For purposes of this subsection—

“(A) In general.—The term ‘compensation’ means compensation within the meaning of section 415(c)(3).

“(B) Certain provisions not taken into account.—The determination under subparagraph (A) shall be made—

“(i) without regard to sections 125, 402(e)(3), and 402(h)(1)(B), and

“(ii) in the case of employer contributions made pursuant to a salary reduction agreement, without regard to section 403(b).”

Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (7) as (4).

Subsec. (q)(5). Pub. L. 104–188, § 1434(c)(1)(E), as amended by Pub. L. 105–206, § 6018(c), struck out “under paragraph (4) or the number of officers taken into account under paragraph (5)” after “top-paid group” in introductory provisions.

Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (8) as (5) and struck out former par. (5) which read as follows: “Special rules for treatment of officers.—

“(A) Not more than 50 officers taken into account.—For purposes of paragraph (1)(D), no more than 50 employees (or, if lesser, the greater of 3 employees or 10 percent of the employees) shall be treated as officers.

“(B) At least 1 officer taken into account.—If for any year no officer of the employer is described in paragraph (1)(D), the highest paid officer of the employer for such year shall be treated as described in such paragraph.”

Subsec. (q)(6). Pub. L. 104–188, § 1431(b)(1), (c)(1)(A), redesignated par. (9) as (6) and struck out former par. (6) which related to treatment of families of 5-percent owners or of highly compensated employees.

Subsec. (q)(7). Pub. L. 104–188, § 1462(a), added par. (7) relating to certain employees not considered highly compensated and excluded employees under pre-ERISA rules for church plans.

Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (10), relating to coordination with other provisions, as (7). Former par. (7) redesignated (4).

Subsec. (q)(8) to (12). Pub. L. 104–188, § 1431(c)(1)(A), redesignated pars. (8) to (11) as (5) to (8), respectively, and struck out par. (12) which related to simplified method for determining highly compensated employees.

Subsec. (r)(2)(A). Pub. L. 104–188, § 1431(c)(1)(D), substituted “subsection (q)(5)” for “subsection (q)(8)”.

Subsec. (s)(2). Pub. L. 104–188, § 1434(b)(2), inserted “not” after “elect” in heading and in text.

Subsec. (u). Pub. L. 104–188, § 1704(n)(1), added subsec. (u).

1992

Subsec. (n)(5)(C)(iii)(I). Pub. L. 102–318, § 521(b)(20), substituted “402(e)(3)” for “402(a)(8)”.

Subsec. (q)(7)(B)(i). Pub. L. 102–318, § 521(b)(21), substituted “402(e)(3)” for “402(a)(8)”.

Subsec. (s)(2). Pub. L. 102–318, § 521(b)(22), substituted “402(e)(3)” for “402(a)(8)”.

1990

Subsec. (n)(2)(B). Pub. L. 101–508 struck out “(6 months in the case of core health benefits)” after “1 year”.

1989

Subsec. (n)(3)(C). Pub. L. 101–239, § 7813(b), amended directory language of Pub. L. 100–647, § 3011(b)(4), see 1988 Amendment note below.

Pub. L. 101–140, § 203(a)(6)(A), struck out “89,” after “79,”.

Subsec. (p)(10). Pub. L. 101–239, § 7811(m)(5), inserted “section” before “403(b)”.

Subsec. (p)(11). Pub. L. 101–239, § 7841(a)(2), added par. (11) and redesignated former par. (11) as (12).

Subsec. (r)(1). Pub. L. 101–140, § 204(b)(2), substituted “sections 129(d)(8) and 410(b)” for “section 410(b)”.

Pub. L. 101–140, § 203(a)(6)(B), substituted “section 410(b)” for “sections 89 and 410(b)”.

Subsec. (t)(2). Pub. L. 101–239, § 7813(b), amended directory language of Pub. L. 100–647, § 3011(b)(5), see 1988 Amendment note below.

Pub. L. 101–140, § 203(a)(6)(C), struck out “89,” after “79,”.

1988

Subsec. (k)(2). Pub. L. 100–647, § 1011A(b)(3), inserted “72(d) (relating to treatment of employee contributions as separate contract),” after “purposes of sections”.

Subsec. (l). Pub. L. 100–647, § 2005(c)(1), (2), substituted “Merger” for “Mergers” in heading, designated existing provision as par. (1), inserted par. (1) heading, and added par. (2).

Subsec. (l)(2)(G). Pub. L. 100–647, § 6067(a), added subpar. (G).

Subsec. (m)(4)(A). Pub. L. 100–647, § 1011(h)(5), substituted “(16), (17), and (26)” for “and (16)”.

Subsec. (m)(4)(C), (D). Pub. L. 100–647, § 1011B(a)(16), struck out subpars. (C) and (D) which read as follows:

“(C) section 105(h), and

“(D) section 125.”

Subsec. (n)(3)(A). Pub. L. 100–647, § 1011(h)(5), substituted “(16), (17), and (26)” for “and (16)”.

Subsec. (n)(3)(C). Pub. L. 100–647, § 3011(b)(4), as amended by Pub. L. 101–239, § 7813(b), struck out “162(i)(2), 162(k),” after “132,” and substituted “505, and 4980B” for “and 505”.

Pub. L. 100–647, § 1011B(a)(19), inserted “162(i)(2), 162(k),” after “132,”.

Subsec. (o). Pub. L. 100–647, § 1011(e)(4), inserted “or any requirement under section 457” after “or (n)(3)”.

Subsec. (p)(4)(B). Pub. L. 100–647, § 1018(t)(8)(E), substituted “means the earlier of” for “means earlier of” and struck out “in” at beginning of cls. (i) and (ii).

Subsec. (p)(9). Pub. L. 100–647, § 1018(t)(8)(G), inserted at end “For purposes of this title, except as provided in regulations, any distribution from an annuity contract under section 403(b) pursuant to a qualified domestic relations order shall be treated in the same manner as a distribution from a plan to which section 401(a)(13) applies.”

Subsec. (p)(10). Pub. L. 100–647, § 1018(t)(8)(F), inserted “, 403(b),” after “section 401”.

Subsec. (q)(1). Pub. L. 100–647, § 1011(i)(1), inserted at end “The Secretary shall adjust the $75,000 and $50,000 amounts under this paragraph at the same time and in the same manner as under section 415(d).”

Subsec. (q)(1)(D). Pub. L. 100–647, § 1011(d)(8), substituted “50” for “150” and “415(b)(1)(A)” for “415(c)(1)(A)”.

Subsec. (q)(6)(C). Pub. L. 100–647, § 1011(i)(2), added subpar. (C).

Subsec. (q)(8). Pub. L. 100–647, § 1011(i)(4)(A), inserted “or the number of officers taken into account under paragraph (5)” after “under paragraph (4)”.

Pub. L. 100–647, § 1011(i)(3)(A)(ii), substituted “Except as provided by the Secretary, the employer” for “The employer” in last sentence.

Subsec. (q)(8)(F). Pub. L. 100–647, § 1011(i)(3)(A)(i), struck out subpar. (F) which read as follows: “employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)).”

Subsec. (q)(11). Pub. L. 100–647, § 1011(i)(3)(B), added par. (11).

Subsec. (q)(12). Pub. L. 100–647, § 3021(b)(1), added par. (12).

Subsec. (r)(3). Pub. L. 100–647, § 3021(b)(2)(A), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The requirements of subparagraph (C) of paragraph (2) shall not apply to any line of business if the highly compensated employee percentage with respect to such line of business is—

“(A) not less than one-half, and

“(B) not more than twice,

the percentage which highly compensated employees are of all employees of the employer. An employer shall be treated as meeting the requirements of subparagraph (A) if at least 10 percent of all highly compensated employees of the employer perform services solely for such line of business.”

Subsec. (s). Pub. L. 100–647, § 1011(j)(1), substituted “any applicable provision” for “this part” in introductory provisions.

Subsec. (s)(1). Pub. L. 100–647, § 1011(j)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “The term ‘compensation’ means compensation for service performed for an employer which (taking into account the provisions of this chapter) is currently includible in gross income.”

Subsec. (s)(2) to (4). Pub. L. 100–647, § 1011(j)(2), added par. (4), redesignated former pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which read as follows: “The Secretary shall prescribe regulations for the determination of the compensation of an employee who is a self-employed individual (within the meaning of section 401(c)(1)) which are based on the principles of paragraph (1).”

Subsec. (t)(1). Pub. L. 100–647, § 1011B(a)(20), struck out “of section 414” before “shall be treated” and “shall apply with”.

Subsec. (t)(2). Pub. L. 100–647, § 3011(b)(5), as amended by Pub. L. 101–239, § 7813(b), struck out “162(i)(2), 162(k),” after “132,” and substituted “505, or 4980B” for “or 505”.

Pub. L. 100–647, § 1011B(a)(17), inserted “162(i)(2), 162(k),” after “132,”.

1987

Subsec. (b). Pub. L. 100–203 struck out “the minimum funding standard of section 412, the tax imposed by section 4971, and” after “one such corporation,”.

1986

Subsec. (k)(2). Pub. L. 99–514, § 1117(c), inserted reference to section 401(m) (relating to nondiscrimination tests for matching requirements and employee contributions).

Subsec. (m)(2)(B)(ii). Pub. L. 99–514, § 1114(b)(11), substituted “highly compensated employees (within the meaning of section 414(q))” for “officers, highly compensated employees, or owners”.

Subsec. (m)(5). Pub. L. 99–514, § 1301(j)(4), substituted “section 144(a)(3)” for “section 103(b)(6)(C)”.

Subsec. (m)(7). Pub. L. 99–514, § 1852(f), amended directory language of Pub. L. 98–369, § 526(d)(2), to correct an error, and did not involve any change in text. See 1984 Amendment note below.

Subsec. (n)(1). Pub. L. 99–514, § 1151(i)(1), substituted “requirements” for “pension requirements”.

Pub. L. 99–514, § 1146(b)(2), struck out “except to the extent otherwise provided in regulations,” after “listed in paragraph (3),”.

Subsec. (n)(2)(B). Pub. L. 99–514, § 1151(i)(2), inserted “(6 months in the case of core health benefits)” after “1 year”.

Subsec. (n)(3). Pub. L. 99–514, § 1151(i)(3), substituted “Requirements” for “Pension requirements” in heading, substituted “requirements” for “pension requirements” in text, and added subpar. (C).

Subsec. (n)(4). Pub. L. 99–514, § 1146(a)(2), substituted “Time when first considered as employee” for “Time when leased employee is first considered as employee” in heading and amended text generally. Prior to amendment, text read as follows: “In the case of any leased employee, paragraph (1) shall apply only for purposes of determining whether the pension requirements listed in paragraph (3) are met for periods after the close of the 1-year period referred to in paragraph (2); except that years of service for the recipient shall be determined by taking into account the entire period for which the leased employee performed services for the recipient (or related persons).”

Subsec. (n)(5). Pub. L. 99–514, § 1146(a)(1), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “This subsection shall not apply to any leased employee if such employee is covered by a plan which is maintained by the leasing organization if, with respect to such employee, such plan—

“(A) is a money purchase pension plan with a nonintegrated employer contribution rate of at least 7½ percent, and

“(B) provides for immediate participation and for full and immediate vesting.”

Subsec. (n)(6). Pub. L. 99–514, § 1301(j)(4), substituted “section 144(a)(3)” for “section 103(b)(6)(C)” in subpar. (A).

Pub. L. 99–514, § 1146(a)(3), substituted “Other rules” for “Related persons” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘related persons’ has the same meaning as when used in section 103(b)(6)(C).”

Subsec. (o). Pub. L. 99–514, § 1146(b)(1), inserted provision relating to regulations to minimize recordkeeping requirements in case of employer which has no top-heavy plans and uses the services of persons other than employees for an insignificant percentage of the employer’s total workload.

Subsec. (p)(1)(B)(i). Pub. L. 99–514, § 1898(c)(7)(A)(ii), inserted “former spouse,”.

Subsec. (p)(3)(B). Pub. L. 99–514, § 1899A(12), struck out the comma after “benefits”.

Subsec. (p)(4)(A). Pub. L. 99–514, § 1898(c)(7)(A)(vi), substituted “A” for “In the case of any payment before a participant has separated from service, a” in introductory provisions and inserted “in the case of any payment before a participant has separated from service,” in cl. (i).

Subsec. (p)(4)(B). Pub. L. 99–514, § 1898(c)(7)(A)(vii), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “For purposes of this paragraph, the term ‘earliest retirement age’ has the meaning given such term by section 417(f)(3), except that in the case of any defined contribution plan, the earliest retirement age shall be the date which is 10 years before the normal retirement age (within the meaning of section 411(a)(8)).”

Subsec. (p)(5). Pub. L. 99–514, § 1898(c)(7)(A)(v), struck out last sentence which read as follows: “A plan shall not be treated as failing to meet the requirements of subsection (a) or (k) of section 401 which prohibit payment of benefits before termination of employment solely by reason of payments to an alternate payee pursuant to a qualified domestic relations order.”

Subsec. (p)(5)(A). Pub. L. 99–514, § 1898(c)(6)(A), inserted “(and any spouse of the participant shall not be treated as a spouse of the participant for such purposes)”.

Subsec. (p)(5)(B). Pub. L. 99–514, § 1898(c)(7)(A)(iv), substituted “the surviving former spouse” for “the surviving spouse”.

Subsec. (p)(6)(A)(i). Pub. L. 99–514, § 1898(c)(7)(A)(iii), substituted “each alternate payee” for “any other alternate payee”.

Subsec. (p)(7)(A). Pub. L. 99–514, § 1898(c)(2)(A)(i), substituted “shall separately account for the amounts (hereinafter in this paragraph referred to as the ‘segregated amounts’)” for “shall segregate in a separate account in the plan or in an escrow account the amounts”.

Subsec. (p)(7)(B). Pub. L. 99–514, § 1898(c)(2)(A)(ii), substituted “the 18-month period described in subparagraph (E)” for “18 months” and “including any interest” for “plus any interest”.

Subsec. (p)(7)(C). Pub. L. 99–514, § 1898(c)(2)(A)(iii), substituted “the 18-month period described in subparagraph (E)” for “18 months” and “including any interest” for “plus any interest”.

Subsec. (p)(7)(D). Pub. L. 99–514, § 1898(c)(2)(A)(iv), inserted “described in subparagraph (E)”.

Subsec. (p)(7)(E). Pub. L. 99–514, § 1898(c)(2)(A)(v), added subpar. (E).

Subsec. (p)(9). Pub. L. 99–514, § 1898(c)(4)(A), added par. (9). Former par. (9) redesignated (11).

Subsec. (p)(10). Pub. L. 99–514, § 1898(c)(7)(A)(v), added par. (10).

Subsec. (p)(11). Pub. L. 99–514, § 1898(c)(4)(A), redesignated former par. (9) as (11).

Subsec. (q). Pub. L. 99–514, § 1114(a), added subsec. (q).

Subsecs. (r), (s). Pub. L. 99–514, § 1115(a), added subsecs. (r) and (s).

Subsec. (t). Pub. L. 99–514, § 1151(e)(1), added subsec. (t).

1984

Subsec. (h)(1)(B). Pub. L. 98–369, § 491(d)(26), struck out “or 405(a)” after “section 403(a)”.

Subsec. (l). Pub. L. 98–369, § 491(d)(27), struck out “or 405” after “section 403(a)”.

Subsec. (m)(6)(B). Pub. L. 98–369, § 526(a)(1), substituted “section 318(a)” for “section 267(c)”.

Subsec. (m)(7). Pub. L. 98–369, § 526(d)(2), as amended by Pub. L. 99–514, § 1852(f), struck out par. (7) relating to regulations. See subsec. (o) of this section.

Subsec. (n)(2). Pub. L. 98–369, §§ 526(b)(1), 713(i), made identical amendments, substituting “any person who is not an employee of the recipient and” for “any person” in text preceding subpar. (A).

Subsec. (o). Pub. L. 98–369, § 526(d)(1), added subsec. (o).

Subsec. (p). Pub. L. 98–397 added subsec. (p).

1982

Subsecs. (b), (c). Pub. L. 97–248, § 240(c)(1), inserted reference to section 416.

Subsec. (m)(4)(B). Pub. L. 97–248, § 240(c)(2), inserted reference to section 416.

Subsec. (m)(5) to (7). Pub. L. 97–248, § 246(a), added par. (5) and redesignated former pars. (5) and (6) as (6) and (7), respectively.

Subsec. (n). Pub. L. 97–248, § 248(a), added subsec. (n).

1980

Subsec. (e). Pub. L. 96–364, § 407(b), substituted provisions defining “church plan” with respect to general requirements, exclusion of certain plans, definitions and other provisions, and correction of failures to meet church plan requirements, for provisions defining “church plan” with respect to general requirements, certain unrelated business or multiemployer plans, and special temporary rules for certain church agencies under church plan.

Subsec. (f). Pub. L. 96–364, § 207, substituted provisions setting forth definition, cases of common control, continuation of status after termination, transitional rule, and special election with respect to a multiemployer plan, for provisions setting forth definition and special rules with respect to a multiemployer plan.

Subsec. (l). Pub. L. 96–364, § 208(a), substituted provisions relating to applicability to multiemployer plans subject to title IV of the Employee Retirement Income Security Act of 1974 of provisions of preceding sentence, for provisions relating to applicability of paragraph to multiemployer plans to extent determined by Corporation.

Subsec. (m). Pub. L. 96–605 and Pub. L. 96–613 added an identical subsec. (m).

1978

Subsecs. (b), (c). Pub. L. 95–600 inserted “408(k),” after “sections 401,” wherever appearing.

1976

Subsecs. (a) to (c). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

Subsec. (f). Pub. L. 94–455, § 1901(a)(64)(A), substituted “Plan” for “plan” in heading.

Subsec. (g)(2)(C). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

Subsec. (l). Pub. L. 94–455, § 1901(a)(64)(B), substituted reference to Sept. 2, 1974, for reference to the date of enactment of the Employee Retirement Income Security Act of 1974.

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Pub. L. 117–328, div. T, title I, § 109(d), Dec. 29, 2022, 136 Stat. 5290, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2024.”

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

Pub. L. 117–328, div. T, title III, § 315(b), Dec. 29, 2022, 136 Stat. 5352, provided that: “The amendments made by this section [amending this section] shall apply to plan years beginning after December 31, 2023.”

Pub. L. 117–328, div. T, title III, § 320(c), Dec. 29, 2022, 136 Stat. 5356, provided that: “The amendments made by this section [enacting section 1030a of Title 29, Labor, and amending this section, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and sections 441 and 1031 of Title 29] shall apply to plan years beginning after December 31, 2022.”

Pub. L. 117–328, div. T, title III, § 339(c), Dec. 29, 2022, 136 Stat. 5375, provided that: “The amendments made by this section [amending this section and section 1056 of Title 29, Labor] shall apply to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.”

Pub. L. 117–328, div. T, title III, § 350(b), Dec. 29, 2022, 136 Stat. 5387, provided that: “The amendment made by this section [amending this section] shall apply with respect to any errors with respect to which the date referred to in section 414(cc) (as added by this section) is after December 31, 2023. Prior to the application of any regulations or other guidance prescribed under paragraph (3) of section 414(cc) of the Internal Revenue Code of 1986 (as added by this section), taxpayers may rely upon their reasonable good faith interpretations of the provisions of such section.”

Amendment by section 603(a) of Pub. L. 117–328 applicable to taxable years beginning after Dec. 31, 2023, see section 603(c) of Pub. L. 117–328, set out as a note under section 402 of this title.

Effective Date of 2020 Amendment

Pub. L. 116–136, div. A, title III, § 3609(c), Mar. 27, 2020, 134 Stat. 414, provided that: “The amendments made by this section [amending this section and section 1060 of Title 29, Labor] shall apply to plan years beginning after December 31, 2018.”

Effective Date of 2015 Amendment

Pub. L. 114–113, div. Q, title III, § 336(a)(3), Dec. 18, 2015, 129 Stat. 3110, provided that: “The amendments made by paragraph (1) [amending this section] shall apply to years beginning before, on, or after the date of the enactment of this Act [Dec. 18, 2015].”

Pub. L. 114–113, div. Q, title III, § 336(d)(2), Dec. 18, 2015, 129 Stat. 3113, provided that: “The amendment made by this subsection [amending this section] shall apply to transfers or mergers occurring after the date of the enactment of this Act [Dec. 18, 2015].”

Effective Date of 2014 Amendment

Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

Pub. L. 113–235, div. P, § 3(c), Dec. 16, 2014, 128 Stat. 2829, provided that: “The amendments made by this section [amending this section and section 1060 of Title 29, Labor] shall take effect as if included in the amendments made by the Cooperative and Small Employer Charity Pension Flexibility Act [Pub. L. 113–97] (29 U.S.C. 401 note) [probably means 26 U.S.C. 401 note].”

Amendment by section 201 of Pub. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of this title.

Pub. L. 113–97, title II, § 203(b), Apr. 7, 2014, 128 Stat. 1139, provided that: “The amendment made by this section [amending this section] shall apply as of the date of enactment of this Act [Apr. 7, 2014].”

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–458 effective as if included in the provisions of Pub. L. 109–280 to which the amendment relates, except as otherwise provided, see section 112 of Pub. L. 110–458, set out as a note under section 72 of this title.

Amendment by section 104(b) of 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.

Amendment by section 105(b)(1) of Pub. L. 110–245 applicable to years beginning after December 31, 2008, see section 105(b)(3) of Pub. L. 110–245, set out as a note under section 219 of this title.

Effective Date of 2007 Amendment

Pub. L. 110–28, title VI, § 6611(c), May 25, 2007, 121 Stat. 181, provided that: “The amendments made by this section [amending this section and section 1002 of Title 29, Labor] shall take effect as if included in section 1106 of the Pension Protection Act of 2006 [Pub. L. 109–280].”

Effective Date of 2006 Amendment

Amendment by section 114(c) of Pub. L. 109–280 applicable to plan years beginning after 2007, see section 114(g)(1) of Pub. L. 109–280, as added by Pub. L. 110–458, set out as a note under section 401 of this title.

Amendment by section 902(d)(1) of Pub. L. 109–280 applicable to plan years beginning after Dec. 31, 2007, see section 902(g) of Pub. L. 109–280, set out as a note under section 401 of this title.

Pub. L. 109–280, title IX, § 903(c), Aug. 17, 2006, 120 Stat. 1048, provided that: “The amendments made by this section [amending this section and section 1060 of Title 29, Labor] shall apply to plan years beginning after December 31, 2009.”

Pub. L. 109–280, title IX, § 906(c), Aug. 17, 2006, 120 Stat. 1052, provided that: “The amendments made by this section [amending this section, section 415 of this title, and sections 1002 and 1321 of Title 29, Labor] shall apply to any year beginning on or after the date of the enactment of this Act [Aug. 17, 2006].”

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

Pub. L. 107–16, title VI, § 631(b), June 7, 2001, 115 Stat. 113, provided that: “The amendment made by this section [amending this section] shall apply to contributions in taxable years beginning after December 31, 2001.”

Pub. L. 107–16, title VI, § 635(d), June 7, 2001, 115 Stat. 117, provided that: “The amendment made by this section [amending this section] shall apply to transfers, distributions, and payments made 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 6018 of Pub. L. 105–206 effective as if included in the provisions of the Small Business Job Protection Act of 1996, Pub. L. 104–188, to which such amendment relates, see section 6018(h) of Pub. L. 105–206, set out as a note under section 23 of this title.

Effective Date of 1997 Amendment

Pub. L. 105–34, title XV, § 1522(b), Aug. 5, 1997, 111 Stat. 1070, provided that: “The amendments made by this section [amending this section] shall apply to years beginning after December 31, 1997.”

Amendment by section 1601(d)(6)(A), (7), (h)(2)(D)(i), (ii) 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

Amendment by section 1421(b)(9)(C) of Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1996, see section 1421(e) of Pub. L. 104–188, set out as a note under section 72 of this title.

Pub. L. 104–188, title I, § 1431(d), Aug. 20, 1996, 110 Stat. 1803, provided that:

“(1)
In general.—
The amendments made by this section [amending this section, sections 129, 401, 404, 408, and 416 of this title, and provisions set out as a note below] shall apply to years beginning after December 31, 1996, except that in determining whether an employee is a highly compensated employee for years beginning in 1997, such amendments shall be treated as having been in effect for years beginning in 1996.
#
“(2)
Family aggregation.—
The amendments made by subsection (b) [amending this section and sections 401 and 404 of this title] shall apply to years beginning after December 31, 1996.”
#

Pub. L. 104–188, title I, § 1434(c), Aug. 20, 1996, 110 Stat. 1807, provided that: “The amendments made by this section [amending this section and section 415 of this title] shall apply to years beginning after December 31, 1997.”

Pub. L. 104–188, title I, § 1454(b), Aug. 20, 1996, 110 Stat. 1817, provided that: “The amendment made by subsection (a) [amending this section] shall apply to years beginning after December 31, 1996, but shall not apply to any relationship determined under an Internal Revenue Service ruling issued before the date of the enactment of this Act [Aug. 20, 1996] pursuant to section 414(n)(2)(C) of the Internal Revenue Code of 1986 (as in effect on the day before such date) not to involve a leased employee.”

Amendment by section 1461(a) of Pub. L. 104–188 applicable to years beginning after Dec. 31, 1996, see section 1461(c) of Pub. L. 104–188, set out as a note under section 404 of this title.

Pub. L. 104–188, title I, § 1462(c), Aug. 20, 1996, 110 Stat. 1824, provided that: “The amendments made by subsection (a) [amending this section] shall apply to years beginning after December 31, 1996.”

Pub. L. 104–188, title I, § 1704(n)(3), Aug. 20, 1996, 110 Stat. 1886, provided that: “The amendments made by this subsection [amending this section and section 1108 of Title 29, Labor] shall be effective as of December 12, 1994.”

Effective Date of 1992 Amendment

Amendment by 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.

Effective Date of 1990 Amendment

Pub. L. 101–508, title XI, § 11703(b)(2), Nov. 5, 1990, 104 Stat. 1388–517, provided that: “The amendment made by subsection (a) [probably means par. (1), which amended this section] shall take effect as if included in the amendments made by section 1151 of the Tax Reform Act of 1986 [Pub. L. 99–514].”

Effective Date of 1989 Amendments

Amendment by sections 7811(m)(5) and 7813(b) 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 7841(a)(2) of Pub. L. 101–239 applicable to transfers after Dec. 19, 1989, in taxable years ending after such date, see section 7841(a)(3) of Pub. L. 101–239, set out as a note under section 408 of this title.

Amendment by section 203(a)(6) of Pub. L. 101–140 effective as if included in section 1151 of Pub. L. 99–514, see section 203(c) of Pub. L. 101–140, set out as a note under section 79 of this title.

Amendment by section 204(b)(2) of Pub. L. 101–140 applicable to years beginning after Dec. 31, 1988, see section 204(d)(1) of Pub. L. 101–140, set out as a note under section 129 of this title.

Effective Date of 1988 Amendment

Amendment by sections 1011(d)(8), (e)(4), (h)(5), (i)(1)–(4)(A), (j)(1), (2), 1011A(b)(3), 1011B(a)(16), (17), (19), (20), and 1018(t)(8)(E)–(G) 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 II, § 2005(c)(3), Nov. 10, 1988, 102 Stat. 3612, provided that:

“(A)
Except as provided in subparagraph (B), the amendments made by this subsection [amending this section] shall apply with respect to transactions occurring after July 26, 1988.
#
“(B)
The amendments made by this subsection shall not apply to any transaction occurring after July 26, 1988, if on or before such date the board of directors of the employer, approves such transaction or the employer took similar binding action.”
#

Amendment by section 3011(b)(4), (5) of Pub. L. 100–647 applicable to taxable years beginning after Dec. 31, 1988, but not applicable to any plan for any plan year to which section 162(k) of this title (as in effect on the day before Nov. 10, 1988) did not apply by reason of section 10001(e)(2) of Pub. L. 99–272, see section 3011(d) of Pub. L. 100–647, set out as a note under section 162 of this title.

Amendment by section 3021(b)(1), (2)(A) of Pub. L. 100–647 applicable to years beginning after Dec. 31, 1986, see section 3021(d)(2) of Pub. L. 100–647, set out as a note under section 129 of this title.

Pub. L. 100–647, title VI, § 6067(c), Nov. 10, 1988, 102 Stat. 3703, as amended by Pub. L. 101–239, title VII, § 7816(k), Dec. 19, 1989, 103 Stat. 2421, provided that: “The amendment made by this section [amending this section] shall take effect as if included in the amendments made by section 2005(c) of this Act [amending this section].”

Effective Date of 1987 Amendment

Amendment by Pub. L. 100–203 applicable with respect to plan years beginning after Dec. 31, 1987, see section 9305(d) of Pub. L. 100–203, set out as a note under section 412 of this title.

Effective Date of 1986 Amendment

Pub. L. 99–514, title XI, § 1114(c), Oct. 22, 1986, 100 Stat. 2452, as amended by Pub. L. 104–188, title I, § 1431(c)(2), Aug. 20, 1996, 110 Stat. 1803; Pub. L. 107–16, title VI, § 663(a), June 7, 2001, 115 Stat. 142, provided that:

“(1)
In general.—
Except as provided in this subsection, the amendment made by this section [amending this section and sections 106, 274, 423, and 501 of this title] shall apply to years beginning after December 31, 1986.
#
“(2)
Conforming amendments to employee benefit provisions.—
The amendments made by paragraphs (2), (3), (4), (5), and (16) of subsection (b) [amending sections 117, 120, 127, 129, 132, and 505 of this title] shall apply to years beginning after December 31, 1987.
#
“(3)
Conforming amendments to pension provisions.—
The amendments made by paragraphs (7), (8), (9), (10), (11), (12), and (15) of subsection (b) [amending this section and sections 401, 404A, 406, 407, 411, 415, and 4975 of this title and section 1108 of Title 29, Labor] shall apply to years beginning after December 31, 1988.”
#

[Pub. L. 107–16, title VI, § 663(b), June 7, 2001, 115 Stat. 143, provided that: “The repeal made by subsection (a) [repealing par. (4) of section 1114(c) of Pub. L. 99–514, set out above] shall apply to plan years beginning after December 31, 2001.” ]

Pub. L. 99–514, title XI, § 1115(b), Oct. 22, 1986, 100 Stat. 2454, provided that: “The amendment made by subsection (a) [amending this section] shall apply to years beginning after December 31, 1986.”

Amendment by section 1117(c) of Pub. L. 99–514 applicable to plan years beginning after Dec. 31, 1986, with special provisions for plans maintained pursuant to collective bargaining agreements ratified before Mar. 1, 1986, and for annuity contracts under section 403(b) of this title, see section 1117(d) of Pub. L. 99–514, set out as a note under section 401 of this title.

Pub. L. 99–514, title XI, § 1146(c), Oct. 22, 1986, 100 Stat. 2493, provided that:

“(1)
In general.—
Except as provided in this subsection, the amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 1983.
#
“(2)
Subsection (a)(1).—
The amendment made by subsection (a)(1) shall apply to services performed after December 31, 1986.
#
“(3)
Recordkeeping requirements.—
In the case of years beginning before the date of the enactment of this Act [Oct. 22, 1986], the last sentence of section 414(o) shall be applied without regard to the requirement that an insignificant percentage of the workload be performed by persons other than employees.”
#

Amendment by section 1151(e)(1), (i) of Pub. L. 99–514 applicable, with certain qualifications and exceptions, to years beginning after Dec. 31, 1988, see section 1151(k) of Pub. L. 99–514, as amended, set out as a note under section 79 of this title.

Amendment by section 1301(j)(4) of Pub. L. 99–514 applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, see sections 1311 to 1318 of Pub. L. 99–514, set out as an Effective Date; Transitional Rules note under section 141 of this title.

Amendment by section 1852(f) 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.

Amendment by section 1898(c)(2)(A), (4)(A), (6)(A), (7)(A)(ii)–(vii) of Pub. L. 99–514 effective as if included in the provision of the Retirement Equity Act of 1984, Pub. L. 98–397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Pub. L. 99–514, set out as a note under section 401 of this title.

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–397 effective Jan. 1, 1985, except as otherwise provided, see section 303(d) of Pub. L. 98–397, set out as a note under section 1001 of Title 29, Labor.

Amendment by section 491(d)(26), (27) 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.

Pub. L. 98–369, div. A, title V, § 526(a)(2), July 18, 1984, 98 Stat. 874, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 1984.”

Pub. L. 98–369, div. A, title V, § 526(b)(2), July 18, 1984, 98 Stat. 874, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 1983.”

Pub. L. 98–369, div. A, title V, § 526(d)(3), July 18, 1984, 98 Stat. 875, provided that: “The amendments made by this subsection [amending this section] shall take effect on the date of the enactment of this Act [July 18, 1984].”

Amendment by section 713(i) of Pub. L. 98–369 effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97–248, to which such amendment relates, see section 715 of Pub. L. 98–369, set out as a note under section 31 of this title.

Effective Date of 1982 Amendment

Amendment by section 240(c) of Pub. L. 97–248, applicable to years beginning after Dec. 31, 1983, see section 241(a) of Pub. L. 97–248, set out as a note under section 416 of this title.

Pub. L. 97–248, title II, § 246(b), Sept. 3, 1982, 96 Stat. 525, provided that: “The amendments made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1983.”

Pub. L. 97–248, title II, § 248(b), Sept. 3, 1982, 96 Stat. 527, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1983.”

Effective Date of 1980 Amendment

Pub. L. 96–605, title II, § 201(c), Dec. 28, 1980, 94 Stat. 3527, and Pub. L. 96–613, § 5(c), Dec. 28, 1980, 94 Stat. 3582, provided that:

“(1)
In general.—
Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 105 and 125 of this title] shall apply to plan years ending after November 30, 1980.
#
“(2)
Plans in existence on november 30, 1980.—
In the case of a plan in existence on November 30, 1980, the amendments made by this section [amending this section and sections 105 and 125 of this title] shall apply to plan years beginning after November 30, 1980.”
#

Pub. L. 96–364, title IV, § 407(c), Sept. 26, 1980, 94 Stat. 1307, provided that: “The amendments made by this section [amending this section and section 1002 of Title 29, Labor] shall be effective as of January 1, 1974.”

Amendment by sections 207 and 208(a) of Pub. L. 96–364 effective Sept. 26, 1980, see section 210(a) of Pub. L. 96–364, set out as an Effective Date note under section 194A of this title.

Effective Date of 1978 Amendment

Amendment by Pub. L. 95–600 applicable to taxable years beginning after Dec. 31, 1978, see section 152(h) of Pub. L. 95–600, set out as a note under section 408 of this title.

Effective Date of 1976 Amendment

Amendment by section 1901(a)(64) 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.

Effective Date

Section applicable, except as otherwise provided in section 1017(c) through (i) of Pub. L. 93–406, for plan years beginning after Sept. 2, 1974, and, in the case of plans in existence on Jan. 1, 1974, for plan years beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93–406, set out as an Effective Date; Transitional Rules note under section 410 of this title.

Regulations

Pub. L. 109–280, title X, § 1001, Aug. 17, 2006, 120 Stat. 1052, provided that:

“Not later than 1 year after the date of the enactment of this Act [Aug. 17, 2006], the Secretary of Labor shall issue regulations under section 206(d)(3) of the Employee Retirement Security Act of 1974 [29 U.S.C. 1056(d)(3)] and section 414(p) of the Internal Revenue Code of 1986 which clarify that—
“(1)
a domestic relations order otherwise meeting the requirements to be a qualified domestic relations order, including the requirements of section 206(d)(3)(D) of such Act and section 414(p)(3) of such Code, shall not fail to be treated as a qualified domestic relations order solely because—
“(A)
the order is issued after, or revises, another domestic relations order or qualified domestic relations order; or
#
“(B)
of the time at which it is issued; and
#
#
“(2)
any order described in paragraph (1) shall be subject to the same requirements and protections which apply to qualified domestic relations orders, including the provisions of section 206(d)(3)(H) of such Act and section 414(p)(7) of such Code.”
#

Secretary of the Treasury or his delegate to issue before Feb. 1, 1988, final regulations to carry out amendments made by sections 1114, 1115, and 1117 of Pub. L. 99–514, see section 1141 of Pub. L. 99–514, set out as a note under section 401 of this title.

Provisions Relating to Plan Amendments Pursuant to Pub. L. 117–328

Pub. L. 117–328, div. T, title V, § 501(a), (b), Dec. 29, 2022, 136 Stat. 5388, provided that:

“(a)
In General.—
If this section applies to any retirement plan or contract amendment—
“(1)
such retirement plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection (b)(2)(A); and
#
“(2)
except as provided by the Secretary of the Treasury (or the Secretary’s delegate), such retirement plan shall not fail to meet the requirements of section 411(d)(6) of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(g)] by reason of such amendment.
#
#
“(b)
Amendments to Which Section Applies.—
“(1)
In general.—
This section shall apply to any amendment to any retirement plan or annuity contract which is made—
“(A)
pursuant to any amendment made by this Act or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor (or a delegate of either such Secretary) under this Act [div. T of Pub. L. 117–328, see Tables for classification]; and
#
“(B)
on or before the last day of the first plan year beginning on or after January 1, 2025, or such later date as the Secretary of the Treasury may prescribe.
#
In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), or an applicable collectively bargained plan, this paragraph shall be applied by substituting ‘2027’ for ‘2025’. For purposes of the preceding sentence, the term ‘applicable collectively bargained plan’ means a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before the date of enactment of this Act [Dec. 29, 2022].
#
“(2)
Conditions.—
This section shall not apply to any amendment unless—
“(A)
during the period—
“(i)
beginning on the date the legislative or regulatory amendment described in paragraph (1)(A) takes effect (or in the case of a plan or contract amendment not required by such legislative or regulatory amendment, the effective date specified by the plan); and
#
“(ii)
ending on the date described in paragraph (1)(B) (as modified by the second sentence of paragraph (1)) (or, if earlier, the date the plan or contract amendment is adopted),
#
the plan or contract is operated as if such plan or contract amendment were in effect; and
#
“(B)
such plan or contract amendment applies retroactively for such period.”
#
#
#

Provisions Relating to Plan Amendments Pursuant to Pub. L. 116–94

Pub. L. 116–94, div. O, title VI, § 601, Dec. 20, 2019, 133 Stat. 3181, as amended by Pub. L. 117–328, div. T, title V, § 501(c)(1), Dec. 29, 2022, 136 Stat. 5389, provided that:

“(a)
In General.—
If this section applies to any retirement plan or contract amendment—
“(1)
such retirement plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection (b)(2)(A); and
#
“(2)
except as provided by the Secretary of the Treasury (or the Secretary’s delegate), such retirement plan shall not fail to meet the requirements of section 411(d)(6) of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(g)] by reason of such amendment.
#
#
“(b)
Amendments to Which Section Applies.—
“(1)
In general.—
This section shall apply to any amendment to any retirement plan or annuity contract which is made—
“(A)
pursuant to any amendment made by this Act or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor (or a delegate of either such Secretary) under this Act [div. O of Pub. L. 116–94, see Tables for classification]; and
#
“(B)
on or before the last day of the first plan year beginning on or after January 1, 2025, or such later date as the Secretary of the Treasury may prescribe.
#
In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), or an applicable collectively bargained plan in the case of section 401 (and the amendments made thereby), this paragraph shall be applied by substituting ‘2027’ for ‘2025’. For purposes of the preceding sentence, the term ‘applicable collectively bargained plan’ means a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before the date of enactment of this Act [Dec. 20, 2019].
#
“(2)
Conditions.—
This section shall not apply to any amendment unless—
“(A)
during the period—
“(i)
beginning on the date the legislative or regulatory amendment described in paragraph (1)(A) takes effect (or in the case of a plan or contract amendment not required by such legislative or regulatory amendment, the effective date specified by the plan); and
#
“(ii)
ending on the date described in paragraph (1)(B) (as modified by the second sentence of paragraph (1)) (or, if earlier, the date the plan or contract amendment is adopted),
#
the plan or contract is operated as if such plan or contract amendment were in effect; and
#
“(B)
such plan or contract amendment applies retroactively for such period.”
#
#
#

Provisions Relating to Plan Amendments Pursuant to Pub. L. 110–245

Pub. L. 110–245, title I, § 105(c), June 17, 2008, 122 Stat. 1629, provided that:

“(1)
In general.—
If this subsection applies to any plan or annuity contract amendment, such plan or contract shall be treated as being operated in accordance with the terms of the plan or contract during the period described in paragraph (2)(B)(i).
#
“(2)
Amendments to which section applies.—
“(A)
In general.—
This subsection shall apply to any amendment to any plan or annuity contract which is made—
“(i)
pursuant to any amendment made by subsection (b)(1) [amending this section], and
#
“(ii)
on or before the last day of the first plan year beginning on or after January 1, 2010.
#
In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), this subparagraph shall be applied by substituting ‘2012’ for ‘2010’ in clause (ii).
#
“(B)
Conditions.—
This subsection shall not apply to any plan or annuity contract amendment unless—
“(i)
during the period beginning on the date the amendment described in subparagraph (A)(i) takes effect and ending on the date described in subparagraph (A)(ii) (or, if earlier, the date the plan or contract amendment is adopted), the plan or contract is operated as if such plan or contract amendment were in effect, and
#
“(ii)
such plan or contract amendment applies retroactively for such period.”
#
#
#

Clarification Relating to Application of Anti-Abuse Rule

Pub. L. 114–113, div. Q, title III, § 336(a)(2), Dec. 18, 2015, 129 Stat. 3110, provided that: “The rule of 26 CFR 1.414(c)–5(f) shall continue to apply to each paragraph of section 414(c) of the Internal Revenue Code of 1986, as amended by paragraph (1).”

Automatic Enrollment by Church Plans

Pub. L. 114–113, div. Q, title III, § 336(c), Dec. 18, 2015, 129 Stat. 3110, provided that:

“(1)
In general.—
This subsection shall supersede any law of a State that relates to wage, salary, or payroll payment, collection, deduction, garnishment, assignment, or withholding which would directly or indirectly prohibit or restrict the inclusion in any church plan (as defined in section 414(e) of the Internal Revenue Code of 1986) of an automatic contribution arrangement.
#
“(2)
Definition of automatic contribution arrangement.—
For purposes of this subsection, the term ‘automatic contribution arrangement’ means an arrangement—
“(A)
under which a participant may elect to have the plan sponsor or the employer make payments as contributions under the plan on behalf of the participant, or to the participant directly in cash,
#
“(B)
under which a participant is treated as having elected to have the plan sponsor or the employer make such contributions in an amount equal to a uniform percentage of compensation provided under the plan until the participant specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage), and
#
“(C)
under which the notice and election requirements of paragraph (3), and the investment requirements of paragraph (4), are satisfied.
#
#
“(3)
Notice requirements.—
“(A)
In general.—
The plan sponsor of, or plan administrator or employer maintaining, an automatic contribution arrangement shall, within a reasonable period before the first day of each plan year, provide to each participant to whom the arrangement applies for such plan year notice of the participant’s rights and obligations under the arrangement which—
“(i)
is sufficiently accurate and comprehensive to apprise the participant of such rights and obligations, and
#
“(ii)
is written in a manner calculated to be understood by the average participant to whom the arrangement applies.
#
#
“(B)
Election requirements.—
A notice shall not be treated as meeting the requirements of subparagraph (A) with respect to a participant unless—
“(i)
the notice includes an explanation of the participant’s right under the arrangement not to have elective contributions made on the participant’s behalf (or to elect to have such contributions made at a different percentage),
#
“(ii)
the participant has a reasonable period of time, after receipt of the explanation described in clause (i) and before the first elective contribution is made, to make such election, and
#
“(iii)
the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the participant.
#
#
#
“(4)
Default investment.—
If no affirmative investment election has been made with respect to any automatic contribution arrangement, contributions to such arrangement shall be invested in a default investment selected with the care, skill, prudence, and diligence that a prudent person selecting an investment option would use.
#
“(5)
Effective date.—
This subsection shall take effect on the date of the enactment of this Act [Dec. 18, 2015].”
#

Investments by Church Plans in Collective Trusts

Pub. L. 114–113, div. Q, title III, § 336(e), Dec. 18, 2015, 129 Stat. 3113, provided that:

“(1)
In general.—
In the case of—
“(A)
a church plan (as defined in section 414(e) of the Internal Revenue Code of 1986), including a plan described in section 401(a) of such Code and a retirement income account described in section 403(b)(9) of such Code, and
#
“(B)
an organization described in section 414(e)(3)(A) of such Code the principal purpose or function of which is the administration of such a plan or account,
#
the assets of such plan, account, or organization (including any assets otherwise permitted to be commingled for investment purposes with the assets of such a plan, account, or organization) may be invested in a group trust otherwise described in Internal Revenue Service Revenue Ruling 81–100 (as modified by Internal Revenue Service Revenue Rulings 2004–67, 2011–1, and 2014–24), or any subsequent revenue ruling that supersedes or modifies such revenue ruling, without adversely affecting the tax status of the group trust, such plan, account, or organization, or any other plan or trust that invests in the group trust.
#
“(2)
Effective date.—
This subsection shall apply to investments made after the date of the enactment of this Act [Dec. 18, 2015].”
#

Applicability of Amendments by Subtitles A and B of Title I of Pub. L. 109–280

For special rules on applicability of amendments by subtitles A (§§ 101–108) and B (§§ 111–116) of title I of Pub. L. 109–280 to certain eligible cooperative plans, PBGC settlement plans, and eligible government contractor plans, see sections 104, 105, and 106 of Pub. L. 109–280, set out as notes under section 401 of this title.

Sample Language for Spousal Consent and Qualified Domestic Relations Forms

Pub. L. 104–188, title I, § 1457, Aug. 20, 1996, 110 Stat. 1818, provided that:

“(a)
Development of Sample Language.—
Not later than January 1, 1997, the Secretary of the Treasury shall develop—
“(1)
sample language for inclusion in a form for the spousal consent required under section 417(a)(2) of the Internal Revenue Code of 1986 and section 205(c)(2) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1055(c)(2)] which—
“(A)
is written in a manner calculated to be understood by the average person, and
#
“(B)
discloses in plain form—
“(i)
whether the waiver to which the spouse consents is irrevocable, and
#
“(ii)
whether such waiver may be revoked by a qualified domestic relations order, and
#
#
#
“(2)
sample language for inclusion in a form for a qualified domestic relations order described in section 414(p)(1)(A) of such Code and section 206(d)(3)(B)(i) of such Act [29 U.S.C. 1056(d)(3)(B)(i)] which—
“(A)
meets the requirements contained in such sections, and
#
“(B)
the provisions of which focus attention on the need to consider the treatment of any lump sum payment, qualified joint and survivor annuity, or qualified preretirement survivor annuity.
#
#
#
“(b)
Publicity.—
The Secretary of the Treasury shall include publicity for the sample language developed under subsection (a) in the pension outreach efforts undertaken by the Secretary.”
#

Safeharbor Authority

Pub. L. 104–188, title I, § 1462(b), Aug. 20, 1996, 110 Stat. 1824, provided that: “The Secretary of the Treasury may design nondiscrimination and coverage safe harbors for church plans.”

Application of Line of Business Test for Period Before Guidelines Issued

Pub. L. 101–140, title II, § 204(b)(1), Nov. 8, 1989, 103 Stat. 833, provided that: “In the case of any plan year beginning on or before the date the Secretary of the Treasury or his delegate issues guidelines and begins issuing determinations under section 414(r)(2)(C) of the Internal Revenue Code of 1986, an employer shall be treated as operating separate lines of business if the employer reasonably determines that it meets the requirements of section 414(r) (other than paragraph (2)(C) thereof) of such Code.”

[Pub. L. 101–140, title II, § 204(d)(3), Nov. 8, 1989, 103 Stat. 833, provided that: “The provisions of subsection (b)(1) [set out above] shall apply to years beginning after December 31, 1986.” ]

Nonenforcement of Amendment Made by Section 1151 of Pub. L. 99–514 for Fiscal Year 1990

No monies appropriated by Pub. L. 101–136 to be used to implement or enforce section 1151 of Pub. L. 99–514 or the amendments made by such section, see section 528 of Pub. L. 101–136, set out as a note under section 89 of this title.

Study Reflecting Allocation of Assets

Pub. L. 100–647, title VI, § 6067(b), Nov. 10, 1988, 102 Stat. 3703, directed Secretary of the Treasury or his delegate, in consultation with Federal Deposit Insurance Corporation, to conduct a study with respect to proper method of allocating assets in case of a transaction to which the amendment made by such section and, not later than Jan. 1, 1990 (due date extended to Jan. 1, 1992, by Pub. L. 101–508, title XI, § 11831(b), Nov. 5, 1990, 104 Stat. 1388–559) to report results of such study to Committee on Ways and Means of House of Representatives and to Committee on Finance of Senate.

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.

Credits

1974–2022 · 35 acts

1974Added Pub. L. 93–406, title II, § 1015, Sept. 2, 1974, 88 Stat. 925
1976amended Pub. L. 94–455, title XIX, §§ 1901(a)(64), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1775, 1834
1978Pub. L. 95–600, title I, § 152(d), Nov. 6, 1978, 92 Stat. 2799
1980Pub. L. 96–364, title II, §§ 207, 208(a), title IV, § 407(b), Sept. 26, 1980, 94 Stat. 1288, 1289, 1305
1980Pub. L. 96–605, title II, § 201(a), Dec. 28, 1980, 94 Stat. 3526
1980Pub. L. 96–613, § 5(a), Dec. 28, 1980, 94 Stat. 3580
1982Pub. L. 97–248, title II, §§ 240(c), 246(a), 248(a), Sept. 3, 1982, 96 Stat. 520, 525, 526
1984Pub. L. 98–369, div. A, title IV, § 491(d)(26), (27), title V, § 526(a)(1), (b)(1), (d)(1), (2), title VII, § 713(i), July 18, 1984, 98 Stat. 850, 874, 875, 960
1984Pub. L. 98–397, title II, § 204(b), Aug. 23, 1984, 98 Stat. 1445
1986Pub. L. 99–514, title XI, §§ 1114(a), (b)(11), 1115(a), 1117(c), 1146(a), (b), 1151(e)(1), (i), title XIII, § 1301(j)(4), title XVIII, §§ 1852(f), 1898(c)(2)(A), (4)(A), (6)(A), (7)(A)(ii)–(vii), 1899A(12), Oct. 22, 1986, 100 Stat. 2448, 2451, 2452, 2462, 2491, 2506, 2507, 2657, 2868, 2951, 2953, 2954, 2958
1987Pub. L. 100–203, title IX, § 9305(c), Dec. 22, 1987, 101 Stat. 1330–352
1988Pub. L. 100–647, title I, §§ 1011(d)(8), (e)(4), (h)(5), (i)(1)–(4)(A), (j)(1), (2), 1011A(b)(3), 1011B(a)(16), (17), (19), (20), 1018(t)(8)(E)–(G), title II, § 2005(c)(1), (2), title III, §§ 3011(b)(4), (5), 3021(b)(1), (2)(A), title VI, § 6067(a), Nov. 10, 1988, 102 Stat. 3460, 3461, 3465, 3467, 3468, 3473, 3485, 3589, 3611, 3612, 3625, 3631, 3632, 3703
1989Pub. L. 101–140, title II, §§ 203(a)(6), 204(b)(2), Nov. 8, 1989, 103 Stat. 831, 833
1989Pub. L. 101–239, title VII, §§ 7811(m)(5), 7813(b), 7841(a)(2), Dec. 19, 1989, 103 Stat. 2412, 2413, 2427
1990Pub. L. 101–508, title XI, § 11703(b)(1), Nov. 5, 1990, 104 Stat. 1388–517
1992Pub. L. 102–318, title V, § 521(b)(20)–(22), July 3, 1992, 106 Stat. 311
1996Pub. L. 104–188, title I, §§ 1421(b)(9)(C), 1431(a), (b)(1), (c)(1)(A), (D), (E), 1434(b), 1454(a), 1461(a), 1462(a), 1704(n)(1), Aug. 20, 1996, 110 Stat. 1798, 1802, 1803, 1807, 1817, 1822, 1824, 1883
1997Pub. L. 105–34, title XV, § 1522(a), title XVI, § 1601(d)(6)(A), (7), (h)(2)(D)(i), (ii), Aug. 5, 1997, 111 Stat. 1070, 1089, 1090, 1092
1998Pub. L. 105–206, title VI, § 6018(c), July 22, 1998, 112 Stat. 822
2000Pub. L. 106–554, § 1(a)(7) [title III, § 314(e)(2)], Dec. 21, 2000, 114 Stat. 2763, 2763A–643
2001Pub. L. 107–16, title VI, §§ 631(a), 635(a)–(c), June 7, 2001, 115 Stat. 111, 117
2002Pub. L. 107–147, title IV, § 411(o)(3)–(8), Mar. 9, 2002, 116 Stat. 48, 49
2004Pub. L. 108–311, title IV, § 408(a)(15), Oct. 4, 2004, 118 Stat. 1192
2006Pub. L. 109–280, title I, § 114(c), title IX, §§ 902(d)(1), 903(a), 906(a)(1), (b)(1)(C), title XI, § 1106(b), Aug. 17, 2006, 120 Stat. 853, 1036, 1040, 1051, 1052, 1062
2007Pub. L. 110–28, title VI, § 6611(a)(2), (b)(2), May 25, 2007, 121 Stat. 180, 181
2008Pub. L. 110–245, title I, §§ 104(b), 105(b)(1), June 17, 2008, 122 Stat. 1626, 1628
2008Pub. L. 110–289, div. A, title VI, § 1604(b)(4), July 30, 2008, 122 Stat. 2829
2008Pub. L. 110–458, title I, §§ 101(d)(2)(E), 109(b)(4)–(c)(1), Dec. 23, 2008, 122 Stat. 5099, 5111
2014Pub. L. 113–97, title II, §§ 201, 203(a), Apr. 7, 2014, 128 Stat. 1121, 1138
2014Pub. L. 113–235, div. P, § 3(b), Dec. 16, 2014, 128 Stat. 2829
2014Pub. L. 113–295, div. A, title II, § 221(a)(19)(B)(i), (ii), (55), Dec. 19, 2014, 128 Stat. 4039, 4045
2015Pub. L. 114–113, div. Q, title III, § 336(a)(1), (d)(1), Dec. 18, 2015, 129 Stat. 3109, 3112
2018Pub. L. 115–141, div. U, title IV, § 401(a)(87)–(91), Mar. 23, 2018, 132 Stat. 1188
2020Pub. L. 116–136, div. A, title III, § 3609(b), Mar. 27, 2020, 134 Stat. 413
2022Pub. L. 117–328, div. T, title I, §§ 109(a)–(c), 117(b), title III, §§ 301(b)(1), 315(a), 320(b), 339(a), 350(a), title VI, § 603(a), Dec. 29, 2022, 136 Stat. 5290, 5300, 5337, 5351, 5355, 5374, 5386, 5391.

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(Added Pub. L. 93–406, title II, § 1015, Sept. 2, 1974, 88 Stat. 925; amended Pub. L. 94–455, title XIX, §§ 1901(a)(64), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1775, 1834; Pub. L. 95–600, title I, § 152(d), Nov. 6, 1978, 92 Stat. 2799; Pub. L. 96–364, title II, §§ 207, 208(a), title IV, § 407(b), Sept. 26, 1980, 94 Stat. 1288, 1289, 1305; Pub. L. 96–605, title II, § 201(a), Dec. 28, 1980, 94 Stat. 3526; Pub. L. 96–613, § 5(a), Dec. 28, 1980, 94 Stat. 3580; Pub. L. 97–248, title II, §§ 240(c), 246(a), 248(a), Sept. 3, 1982, 96 Stat. 520, 525, 526; Pub. L. 98–369, div. A, title IV, § 491(d)(26), (27), title V, § 526(a)(1), (b)(1), (d)(1), (2), title VII, § 713(i), July 18, 1984, 98 Stat. 850, 874, 875, 960; Pub. L. 98–397, title II, § 204(b), Aug. 23, 1984, 98 Stat. 1445; Pub. L. 99–514, title XI, §§ 1114(a), (b)(11), 1115(a), 1117(c), 1146(a), (b), 1151(e)(1), (i), title XIII, § 1301(j)(4), title XVIII, §§ 1852(f), 1898(c)(2)(A), (4)(A), (6)(A), (7)(A)(ii)–(vii), 1899A(12), Oct. 22, 1986, 100 Stat. 2448, 2451, 2452, 2462, 2491, 2506, 2507, 2657, 2868, 2951, 2953, 2954, 2958; Pub. L. 100–203, title IX, § 9305(c), Dec. 22, 1987, 101 Stat. 1330–352; Pub. L. 100–647, title I, §§ 1011(d)(8), (e)(4), (h)(5), (i)(1)–(4)(A), (j)(1), (2), 1011A(b)(3), 1011B(a)(16), (17), (19), (20), 1018(t)(8)(E)–(G), title II, § 2005(c)(1), (2), title III, §§ 3011(b)(4), (5), 3021(b)(1), (2)(A), title VI, § 6067(a), Nov. 10, 1988, 102 Stat. 3460, 3461, 3465, 3467, 3468, 3473, 3485, 3589, 3611, 3612, 3625, 3631, 3632, 3703; Pub. L. 101–140, title II, §§ 203(a)(6), 204(b)(2), Nov. 8, 1989, 103 Stat. 831, 833; Pub. L. 101–239, title VII, §§ 7811(m)(5), 7813(b), 7841(a)(2), Dec. 19, 1989, 103 Stat. 2412, 2413, 2427; Pub. L. 101–508, title XI, § 11703(b)(1), Nov. 5, 1990, 104 Stat. 1388–517; Pub. L. 102–318, title V, § 521(b)(20)–(22), July 3, 1992, 106 Stat. 311; Pub. L. 104–188, title I, §§ 1421(b)(9)(C), 1431(a), (b)(1), (c)(1)(A), (D), (E), 1434(b), 1454(a), 1461(a), 1462(a), 1704(n)(1), Aug. 20, 1996, 110 Stat. 1798, 1802, 1803, 1807, 1817, 1822, 1824, 1883; Pub. L. 105–34, title XV, § 1522(a), title XVI, § 1601(d)(6)(A), (7), (h)(2)(D)(i), (ii), Aug. 5, 1997, 111 Stat. 1070, 1089, 1090, 1092; Pub. L. 105–206, title VI, § 6018(c), July 22, 1998, 112 Stat. 822; Pub. L. 106–554, § 1(a)(7) [title III, § 314(e)(2)], Dec. 21, 2000, 114 Stat. 2763, 2763A–643; Pub. L. 107–16, title VI, §§ 631(a), 635(a)–(c), June 7, 2001, 115 Stat. 111, 117; Pub. L. 107–147, title IV, § 411(o)(3)–(8), Mar. 9, 2002, 116 Stat. 48, 49; Pub. L. 108–311, title IV, § 408(a)(15), Oct. 4, 2004, 118 Stat. 1192; Pub. L. 109–280, title I, § 114(c), title IX, §§ 902(d)(1), 903(a), 906(a)(1), (b)(1)(C), title XI, § 1106(b), Aug. 17, 2006, 120 Stat. 853, 1036, 1040, 1051, 1052, 1062; Pub. L. 110–28, title VI, § 6611(a)(2), (b)(2), May 25, 2007, 121 Stat. 180, 181; Pub. L. 110–245, title I, §§ 104(b), 105(b)(1), June 17, 2008, 122 Stat. 1626, 1628; Pub. L. 110–289, div. A, title VI, § 1604(b)(4), July 30, 2008, 122 Stat. 2829; Pub. L. 110–458, title I, §§ 101(d)(2)(E), 109(b)(4)–(c)(1), Dec. 23, 2008, 122 Stat. 5099, 5111; Pub. L. 113–97, title II, §§ 201, 203(a), Apr. 7, 2014, 128 Stat. 1121, 1138; Pub. L. 113–235, div. P, § 3(b), Dec. 16, 2014, 128 Stat. 2829; Pub. L. 113–295, div. A, title II, § 221(a)(19)(B)(i), (ii), (55), Dec. 19, 2014, 128 Stat. 4039, 4045; Pub. L. 114–113, div. Q, title III, § 336(a)(1), (d)(1), Dec. 18, 2015, 129 Stat. 3109, 3112; Pub. L. 115–141, div. U, title IV, § 401(a)(87)–(91), Mar. 23, 2018, 132 Stat. 1188; Pub. L. 116–136, div. A, title III, § 3609(b), Mar. 27, 2020, 134 Stat. 413; Pub. L. 117–328, div. T, title I, §§ 109(a)–(c), 117(b), title III, §§ 301(b)(1), 315(a), 320(b), 339(a), 350(a), title VI, § 603(a), Dec. 29, 2022, 136 Stat. 5290, 5300, 5337, 5351, 5355, 5374, 5386, 5391.)