Title 26 — Internal Revenue Code
Part I · Chapter 1 — Normal Taxes and Surtaxes
§ 417. Definitions and special rules for purposes of minimum survivor annuity requirements
Statutory text
Election to waive qualified joint and survivor annuity or qualified preretirement survivor annuity
In general
A plan meets the requirements of section 401(a)(11) only if—
under the plan, each participant—
may elect at any time during the applicable election period to waive the qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit (or both),
if the participant elects a waiver under clause (i), may elect the qualified optional survivor annuity at any time during the applicable election period, and
may revoke any such election at any time during the applicable election period, and
the plan meets the requirements of paragraphs (2), (3), and (4) of this subsection.
Spouse must consent to election
Each plan shall provide that an election under paragraph (1)(A)(i) shall not take effect unless—
the spouse of the participant consents in writing to such election, (ii) such election designates a beneficiary (or a form of benefits) which may not be changed without spousal consent (or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse), and (iii) the spouse’s consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or
it is established to the satisfaction of a plan representative that the consent required under subparagraph (A) may not be obtained because there is no spouse, because the spouse cannot be located, or because of such other circumstances as the Secretary may by regulations prescribe.
Any consent by a spouse (or establishment that the consent of a spouse may not be obtained) under the preceding sentence shall be effective only with respect to such spouse.
Plan to provide written explanations
Explanation of joint and survivor annuity
Each plan shall provide to each participant, within a reasonable period of time before the annuity starting date (and consistent with such regulations as the Secretary may prescribe), a written explanation of—
the terms and conditions of the qualified joint and survivor annuity and of the qualified optional survivor annuity,
the participant’s right to make, and the effect of, an election under paragraph (1) to waive the joint and survivor annuity form of benefit,
the rights of the participant’s spouse under paragraph (2), and
the right to make, and the effect of, a revocation of an election under paragraph (1).
Explanation of qualified preretirement survivor annuity
In general
Each plan shall provide to each participant, within the applicable period with respect to such participant (and consistent with such regulations as the Secretary may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A).
Applicable period
For purposes of clause (i), the term “applicable period” means, with respect to a participant, whichever of the following periods ends last:
The period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35.
A reasonable period after the individual becomes a participant.
A reasonable period ending after paragraph (5) ceases to apply to the participant.
A reasonable period ending after section 401(a)(11) applies to the participant.
In the case of a participant who separates from service before attaining age 35, the applicable period shall be a reasonable period after separation.
Requirement of spousal consent for using plan assets as security for loans
Each plan shall provide that, if section 401(a)(11) applies to a participant when part or all of the participant’s accrued benefit is to be used as security for a loan, no portion of the participant’s accrued benefit may be used as security for such loan unless—
the spouse of the participant (if any) consents in writing to such use during the 90-day period ending on the date on which the loan is to be so secured, and
requirements comparable to the requirements of paragraph (2) are met with respect to such consent.
Special rules where plan fully subsidizes costs
In general
The requirements of this subsection shall not apply with respect to the qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit, as the case may be, if such benefit may not be waived (or another beneficiary selected) and if the plan fully subsidizes the costs of such benefit.
Definition
For purposes of subparagraph (A), a plan fully subsidizes the costs of a benefit if under the plan the failure to waive such benefit by a participant would not result in a decrease in any plan benefits with respect to such participant and would not result in increased contributions from such participant.
Applicable election period defined
For purposes of this subsection, the term “applicable election period” means—
in the case of an election to waive the qualified joint and survivor annuity form of benefit, the 180-day period ending on the annuity starting date, or
in the case of an election to waive the qualified preretirement survivor annuity, the period which begins on the first day of the plan year in which the participant attains age 35 and ends on the date of the participant’s death.
In the case of a participant who is separated from service, the applicable election period under subparagraph (B) with respect to benefits accrued before the date of such separation from service shall not begin later than such date.
Special rules relating to time for written explanation
Notwithstanding any other provision of this subsection—
Explanation may be provided after annuity starting date
In general
A plan may provide the written explanation described in paragraph (3)(A) after the annuity starting date. In any case to which this subparagraph applies, the applicable election period under paragraph (6) shall not end before the 30th day after the date on which such explanation is provided.
Regulatory authority
The Secretary may by regulations limit the application of clause (i), except that such regulations may not limit the period of time by which the annuity starting date precedes the provision of the written explanation other than by providing that the annuity starting date may not be earlier than termination of employment.
Waiver of 30-day period
A plan may permit a participant to elect (with any applicable spousal consent) to waive any requirement that the written explanation be provided at least 30 days before the annuity starting date (or to waive the 30-day requirement under subparagraph (A)) if the distribution commences more than 7 days after such explanation is provided.
Definition of qualified joint and survivor annuity
For purposes of this section and section 401(a)(11), the term “qualified joint and survivor annuity” means an annuity—
for the life of the participant with a survivor annuity for the life of the spouse which is not less than 50 percent of (and is not greater than 100 percent of) the amount of the annuity which is payable during the joint lives of the participant and the spouse, and
which is the actuarial equivalent of a single annuity for the life of the participant.
Such term also includes any annuity in a form having the effect of an annuity described in the preceding sentence.
Definition of qualified preretirement survivor annuity
For purposes of this section and section 401(a)(11)—
In general
Except as provided in paragraph (2), the term “qualified preretirement survivor annuity” means a survivor annuity for the life of the surviving spouse of the participant if—
the payments to the surviving spouse under such annuity are not less than the amounts which would be payable as a survivor annuity under the qualified joint and survivor annuity under the plan (or the actuarial equivalent thereof) if—
in the case of a participant who dies after the date on which the participant attained the earliest retirement age, such participant had retired with an immediate qualified joint and survivor annuity on the day before the participant’s date of death, or
in the case of a participant who dies on or before the date on which the participant would have attained the earliest retirement age, such participant had—
separated from service on the date of death,
survived to the earliest retirement age,
retired with an immediate qualified joint and survivor annuity at the earliest retirement age, and
died on the day after the day on which such participant would have attained the earliest retirement age, and
under the plan, the earliest period for which the surviving spouse may receive a payment under such annuity is not later than the month in which the participant would have attained the earliest retirement age under the plan.
In the case of an individual who separated from service before the date of such individual’s death, subparagraph (A)(ii)(I) shall not apply.
Special rule for defined contribution plans
In the case of any defined contribution plan or participant described in clause (ii) or (iii) of section 401(a)(11)(B), the term “qualified preretirement survivor annuity” means an annuity for the life of the surviving spouse the actuarial equivalent of which is not less than 50 percent of the portion of the account balance of the participant (as of the date of death) to which the participant had a nonforfeitable right (within the meaning of section 411(a)).
Security interests taken into account
For purposes of paragraphs (1) and (2), any security interest held by the plan by reason of a loan outstanding to the participant shall be taken into account in determining the amount of the qualified preretirement survivor annuity.
Survivor annuities need not be provided if participant and spouse married less than 1 year
In general
Except as provided in paragraph (2), a plan shall not be treated as failing to meet the requirements of section 401(a)(11) merely because the plan provides that a qualified joint and survivor annuity (or a qualified preretirement survivor annuity) will not be provided unless the participant and spouse had been married throughout the 1-year period ending on the earlier of—
the participant’s annuity starting date, or
the date of the participant’s death.
Treatment of certain marriages within 1 year of annuity starting date for purposes of qualified joint and survivor annuities
For purposes of paragraph (1), if—
a participant marries within 1 year before the annuity starting date, and
the participant and the participant’s spouse in such marriage have been married for at least a 1-year period ending on or before the date of the participant’s death,
such participant and such spouse shall be treated as having been married throughout the 1-year period ending on the participant’s annuity starting date.
Restrictions on cash-outs
Plan may require distribution if present value not in excess of dollar limit
A plan may provide that the present value of a qualified joint and survivor annuity or a qualified preretirement survivor annuity will be immediately distributed if such value does not exceed the amount that can be distributed without the participant’s consent under section 411(a)(11). No distribution may be made under the preceding sentence after the annuity starting date unless the participant and the spouse of the participant (or where the participant has died, the surviving spouse) consents in writing to such distribution.
Plan may distribute benefit in excess of dollar limit only with consent
If—
the present value of the qualified joint and survivor annuity or the qualified preretirement survivor annuity exceeds the amount that can be distributed without the participant’s consent under section 411(a)(11), and
the participant and the spouse of the participant (or where the participant has died, the surviving spouse) consent in writing to the distribution,
the plan may immediately distribute the present value of such annuity.
Determination of present value
In general
For purposes of paragraphs (1) and (2), the present value shall not be less than the present value calculated by using the applicable mortality table and the applicable interest rate.
Applicable mortality table
For purposes of subparagraph (A), the term “applicable mortality table” means a mortality table, modified as appropriate by the Secretary, based on the mortality table specified for the plan year under subparagraph (A) of section 430(h)(3) (without regard to subparagraph (C) or (D) of such section).
Applicable interest rate
For purposes of subparagraph (A), the term “applicable interest rate” means the adjusted first, second, and third segment rates applied under rules similar to the rules of section 430(h)(2)(C) (determined by not taking into account any adjustment under clause (iv) thereof) for the month before the date of the distribution or such other time as the Secretary may by regulations prescribe.
Applicable segment rates
For purposes of subparagraph (C), the adjusted first, second, and third segment rates are the first, second, and third segment rates which would be determined under section 430(h)(2)(C) (determined by not taking into account any adjustment under clause (iv) thereof) if section 430(h)(2)(D) were applied by substituting the average yields for the month described in subparagraph (C) for the average yields for the 24-month period described in such section.
Other definitions and special rules
For purposes of this section and section 401(a)(11)—
Vested participant
The term “vested participant” means any participant who has a nonforfeitable right (within the meaning of section 411(a)) to any portion of such participant’s accrued benefit.
Annuity starting date
In general
The term “annuity starting date” means—
the first day of the first period for which an amount is payable as an annuity, or
in the case of a benefit not payable in the form of an annuity, the first day on which all events have occurred which entitle the participant to such benefit.
Special rule for disability benefits
For purposes of subparagraph (A), the first day of the first period for which a benefit is to be received by reason of disability shall be treated as the annuity starting date only if such benefit is not an auxiliary benefit.
Earliest retirement age
The term “earliest retirement age” means the earliest date on which, under the plan, the participant could elect to receive retirement benefits.
Plan may take into account increased costs
A plan may take into account in any equitable manner (as determined by the Secretary) any increased costs resulting from providing a qualified joint or survivor annuity or a qualified preretirement survivor annuity.
Distributions by reason of security interests
If the use of any participant’s accrued benefit (or any portion thereof) as security for a loan meets the requirements of subsection (a)(4), nothing in this section or section 411(a)(11) shall prevent any distribution required by reason of a failure to comply with the terms of such loan.
Requirements for certain spousal consents
No consent of a spouse shall be effective for purposes of subsection (e)(1) or (e)(2) (as the case may be) unless requirements comparable to the requirements for spousal consent to an election under subsection (a)(1)(A) are met.
Consultation with the Secretary of Labor
In prescribing regulations under this section and section 401(a)(11), the Secretary shall consult with the Secretary of Labor.
Definition of qualified optional survivor annuity
In general
For purposes of this section, the term “qualified optional survivor annuity” means an annuity—
for the life of the participant with a survivor annuity for the life of the spouse which is equal to the applicable percentage of the amount of the annuity which is payable during the joint lives of the participant and the spouse, and
which is the actuarial equivalent of a single annuity for the life of the participant.
Such term also includes any annuity in a form having the effect of an annuity described in the preceding sentence.
Applicable percentage
In general
For purposes of paragraph (1), if the survivor annuity percentage—
is less than 75 percent, the applicable percentage is 75 percent, and
is greater than or equal to 75 percent, the applicable percentage is 50 percent.
Survivor annuity percentage
For purposes of subparagraph (A), the term “survivor annuity percentage” means the percentage which the survivor annuity under the plan’s qualified joint and survivor annuity bears to the annuity payable during the joint lives of the participant and the spouse.
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.
Retirement Equity Act of 1984
Pub. L. 98–397 title II § 203(b) · 98 Stat. 1426
Enacted · 26 U.S.C. § 417
Added Pub. L. 98–397, title II, § 203(b), Aug. 23, 1984, 98 Stat. 1441
Source evidence
Code source credit
Added Pub. L. 98–397, title II, § 203(b), Aug. 23, 1984, 98 Stat. 1441Enacted provision · exact public law section
(b) Definitions and Special Rules.— Subpart B of part I of subchapter D of chapter 1 is amended by adding at the end thereof the following new section: “SEC. 417. DEFINITIONS AND SPECIAL RULES FOR PURPOSES OF MINIMUM SURVIVOR ANNUITY REQUIREMENTS. “(a) Election To Waive Qualified Joint and Survivor Annuity or Qualified Preretirement Survivor Annuity.— “(1) In general.— A plan meets the requirements of section 401(a)(ii) only if— “(A) under the plan, each participant— “(i) may elect at any time during the applicable election period to waive the qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit (or both), and “(ii) may revoke any such election at any time during the applicable election period, and “(B) the plan meets the requirements of paragraphs (2) and (3) of this subsection. “(2) Spouse must consent to election.— Each plan shall provide that an election under paragraph (1)(A)(i) shall not take effect unless— “(A) the spouse of the participant consents in writing to such election, and the spouse’s consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or “(B) it is established to the satisfaction of a plan representative that the consent required under subparagraph (A) may not be obtained because there is no spouse, because the spouse cannot be located, or because of such other circumstances as the Secretary may by regulations prescribe. Any consent by a spouse (or establishment that the consent of a spouse may not be obtained) under the preceding sentence shall be effective only with respect to such spouse. “(3) Plan to provide written explanations.— “(A) Explanation of joint and survivor annuity.— Each plan shall provide to each participant, within a reasonable period of time before the annuity starting date (and consistent with such regulations as the Secretary may prescribe), a written explanation of— “(i) the terms and conditions of the qualified joint and survivor annuity, “(ii) the participant’s right to make, and the effect of, an election under paragraph (1) to waive the joint and survivor annuity form of benefit, “(iii) the rights of the participant’s spouse under paragraph (2), and “(iv) the right to make, and the effect of, a revocation of an election under paragraph (1). “(B) Explanation of qualified preretirement survivor annuity.— Each plan shall provide to each participant, within the period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35 (and consistent with such regulations as the Secretary may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A). “(4) Special rules where plan fully subsidizes costs.— “(A) In general.— The requirements of this subsection shall not apply with respect to the qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit, as the case may be, if the plan fully subsidizes the costs of such benefit. “(B) Definition.— For purposes of subparagraph (A), a plan fully subsidizes the costs of a benefit if under the plan the failure to waive such benefit by a participant would not result in a decrease in any plan benefits with respect to such participant and would not result in increased contributions from such participant. “(5) Applicable election period defined.— For purposes of this subsection, the term ‘applicable election period’ means— “(A) in the case of an election to waive the qualified joint and survivor annuity form of benefit, the 90-day period ending on the annuity starting date, or “(B) in the case of .an election to waive the qualified preretirement survivor annuity, the period which begins on the first day of the plan year in which the participant attains age 35 and ends on the date of the participant’s death. In the case of a participant who is separated from service, the applicable election period under subparagraph (B) with respect to benefits accrued before the date of such separation from service shall not begin later than such date. “(b) Definition of Qualified Joint and Survivor Annuity.— For Ante, p. 1440. purposes of this section and section 401(a)(11), the term ‘qualified joint and survivor annuity’ means an annuity— “(1) for the life of the participant with a survivor annuity for the life of the spouse which is not less than 50 percent of (and is not greater than 100 percent of) the amount of the annuity which is payable during the joint lives of the participant and the spouse, and “(2) which is the actuarial equivalent of a single annuity for the life of the participant. Such term also includes any annuity in a form having the effect of an annuity described in the preceding sentence. “(c) Definition of Qualified Preretirement Survivor Annuity.— For purposes of this section and section 401(a)(11)— Ante, p. 1440. “(1) In general.— Except as provided in paragraph (2), the term ‘qualified preretirement survivor annuity’ means a survivor annuity or the life of the surviving spouse of the participant if— “(A) the payments to the surviving spouse under such annuity are not less than the amounts which would be payable as a survivor annuity under the qualified joint and survivor annuity under the plan (or the actuarial equivalent thereof) if— “(i) in the case of a participant who dies after the date on which the participant attained the earliest retirement age, such participant had retired with an immediate qualified joint and survivor annuity on the day before the participant’s date of death, or “(ii) in the case of a participant who dies on or before the date on which the participant would have attained the earliest retirement age, such participant had— “(I) separated from service on the date of death, “(II) survived to the earliest retirement age, “(III) retired with an immediate qualified joint and survivor annuity at the earliest retirement age, and “(IV) died on the day after the day on which such participant would have attained the earliest retirement age, and “(B) under the plan, the earliest period for which the surviving spouse may receive a payment under such annuity is not later than the month in which the participant would have attained the earliest retirement age under the plan. “(2) Special rule for defined contribution plans.— In the case of any defined contribution plan or participant described in clause (ii) or (iii) of section 401(a)(11)(B), the term ‘qualified Ante, p. 1440. preretirement survivor annuity’ means an annuity for the life of the surviving spouse the actuarial equivalent of which is not less than 50 percent of the account balance of the participant as of the date of death. “(d) Survivor Annuities Need Not Be Provided if Participant and Spouse Married Less Than 1 Year.— “(1) In general.— Except as provided in paragraph (2), a plan shall not be treated as failing to meet the requirements of section 401(a)(11) merely because the plan provides that a qualified Ante, p. 1440. joint and survivor annuity (or a qualified preretirement survivor annuity) will not be provided unless the participant and spouse had been married throughout the 1-year period ending on the earlier of— “(A) the participant’s annuity starting date, or “(B) the date of the participant’s death. “(2) Treatment of certain marriages within 1 year of annuity starting date for purposes of qualified joint and survivor annuities.— For purposes of paragraph (1), if— “(A) a participant marries within 1 year before the annuity starting date, and “(B) the participant and the participant’s spouse in such marriage have been married for at least a 1-year period ending on or before the date of the participant’s death, such participant and such spouse shall be treated as having been married throughout the 1-year period ending on the participant’s annuity starting date. “(e) Restrictions on Cash-Outs.— “(1) Plan may require distribution if present value not in excess of $3,500.— A plan may provide that the present value of a qualified joint and survivor annuity or a qualified preretirement survivor annuity will be immediately distributed if such value does not exceed $3,500. No distribution may be made under the preceding sentence after the annuity starting date unless the participant and the spouse of the participant (or where the participant has died, the surviving spouse) consents in writing to such distribution. “(2) Plan may distribute benefit in excess of $3,500 only with consent.— If— “(A) the present value of the qualified joint and survivor annuity or the qualified preretirement survivor annuity exceeds $3,500, and “(B) the participant and the spouse of the participant (or where the participant has died, the surviving spouse) consent in writing to the distribution, the plan may immediately distribute the present value of such annuity. “(3) Determination of present value.— For purposes of paragraphs (1) and (2), the present value of a qualified joint and survivor annuity or a qualified preretirement survivor annuity shall be determined as of the date of the distribution and by using an interest rate not greater than the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination. “(f) Other Definitions and Special Rules.— For purposes of this Ante, p. 1440. section and section 401(a)(11)— “(1) Vested participant.— The term ‘vested participant’ means any participant who has a nonforfeitable right (within 26 USC 411. the meaning of section 411(a)) to any portion of the accrued benefit derived from employer contributions. “(2) Annuity starting date.— The term ‘annuity starting date’ means the first day of the first period for which an amount is received as an annuity (whether by reason of retirement or disability). “(3) Earliest retirement age.— The term ‘earliest retirement age’ means the earliest date on which, under the plan, the participant could elect to receive retirement benefits. “(4) Plan may take into account increased costs.— A plan may take into account in any equitable manner (as determined by the Secretary) any increased costs resulting from providing a qualified joint or survivor annuity or a qualified preretirement survivor annuity. “(5) Consultation with the secretary of labor.— In prescribing regulations under this section and section 401(a)(11), Ante, p. 1440. the Secretary shall consult with the Secretary of Labor.”.Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(15)(A) · 100 Stat. 2085
Substituted · 26 U.S.C. § 417(a)(1)
Pub. L. 99–514, § 1898(b)(15)(A), substituted “section 401(a)(11)” for “section 401(a)(ii)”
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 99–514, § 1898(b)(15)(A), substituted “section 401(a)(11)” for “section 401(a)(ii)”.Enacted provision · exact public law section
(A) Paragraph (1) of section 417(a) is amended by striking out “section 401(a)(ii)” and inserting in lieu thereof “section 401(a)(11)”.Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(4)(A)(i) · 100 Stat. 2085
Substituted · 26 U.S.C. § 417(a)(1)(B)
Pub. L. 99–514, § 1898(b)(4)(A)(i), substituted “paragraphs (2), (3), and (4)” for “paragraphs (2) and (3)”
Source evidence
Code amendment note
Subsec. (a)(1)(B). Pub. L. 99–514, § 1898(b)(4)(A)(i), substituted “paragraphs (2), (3), and (4)” for “paragraphs (2) and (3)”.Enacted provision · exact public law section
(i) Subparagraph (B) of section 417(a)(1) is amended by striking out “paragraphs (2) and (3)” and inserting in lieu thereof “paragraphs (2), (3), and (4)”.Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(6)(A) · 100 Stat. 2085
Amended · 26 U.S.C. § 417(a)(2)(A)
Pub. L. 99–514, § 1898(b)(6)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the spouse of the participant consents in writing to such election, and the spouse’s consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or”
Source evidence
Code amendment note
Subsec. (a)(2)(A). Pub. L. 99–514, § 1898(b)(6)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the spouse of the participant consents in writing to such election, and the spouse’s consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or”.Enacted provision · exact public law section
(A) Amendment of internal revenue code.— Subparagraph (A) of section 417(a)(2) (relating to requirement that spouse consent to election) is amended to read as follows: “(A) (i) the spouse of the participant consents in writing to such election, (ii) such election designates a beneficiary (or a form of benefits) which may not be changed without spousal consent (or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse), and (iii) the spouse’s consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or”.Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(5)(A) · 100 Stat. 2085
Amended · 26 U.S.C. § 417(a)(3)(B)
Pub. L. 99–514, § 1898(b)(5)(A), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Each plan shall provide to each participant, within the period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35 (and consistent with such regulations as the Secretary may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A).”
Source evidence
Code amendment note
Subsec. (a)(3)(B). Pub. L. 99–514, § 1898(b)(5)(A), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Each plan shall provide to each participant, within the period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35 (and consistent with such regulations as the Secretary may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A).”Enacted provision · exact public law section
(A) Amendment of internal revenue code.— Subparagraph (B) of section 417(a)(3) (relating to plan to provide written explanations) is amended to read as follows: “(B) Explanation of qualified preretirement survivor annuity.— “(i) In general.— Each plan shall provide to each participant, within the applicable period with respect to such participant (and consistent with such regulations as the Secretary may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A). “(ii) Applicable period.— For purposes of clause (i), the term ‘applicable period’ means, with respect to a participant, whichever of the following periods ends last: “(I) The period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35. “(II) A reasonable period after the individual becomes a participant. “(III) A reasonable period ending after paragraph (5) ceases to apply to the participant. “(IV) A reasonable period ending after section 401(a)(11) applies to the participant. “(V) A reasonable period after separation from service in case of a participant who separates before attaining age 35.”Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(4)(A)(ii) · 100 Stat. 2085
Redesignated · 26 U.S.C. § 417(a)(4)
Pub. L. 99–514, § 1898(b)(4)(A)(ii), added par. (4). Former par. (4) redesignated (5)
Source evidence
Code amendment note
Subsec. (a)(4). Pub. L. 99–514, § 1898(b)(4)(A)(ii), added par. (4). Former par. (4) redesignated (5).Enacted provision · exact public law section
(ii) Subsection (a) of section 417 is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph: “(4) Requirement of spousal consent for using plan assets as security for loans.— Each plan shall provide that, if section 401(a)(11) applies to a participant when part or all of the participant’s accrued benefit is to be used as security for a loan, no portion of the participant’s accrued benefit may be used as security for such loan unless— “(A) the spouse of the participant (if any) consents in writing to such use during the 90-day period ending on the date on which the loan is to be so secured, and “(B) requirements comparable to the requirements of paragraph (2) are met with respect to such consent.”Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(4)(A)(ii) · 100 Stat. 2085
Redesignated · 26 U.S.C. § 417(a)(5); 26 U.S.C. § 417(a)(6)
Pub. L. 99–514, § 1898(b)(4)(A)(ii), (11)(A), redesignated former par. (4) as (5)
Redesignated · 26 U.S.C. § 417(a)(5); 26 U.S.C. § 417(a)(6)
Pub. L. 99–514, § 1898(b)(4)(A)(ii), (11)(A), inserted in subpar. (A) “if such benefit may not be waived (or another beneficiary selected) and” before “if the plan”. Former par. (5) redesignated (6)
Source evidence
Code amendment note
Subsec. (a)(5), (6). Pub. L. 99–514, § 1898(b)(4)(A)(ii), (11)(A), redesignated former par. (4) as (5) and inserted in subpar. (A) “if such benefit may not be waived (or another beneficiary selected) and” before “if the plan”. Former par. (5) redesignated (6).Enacted provision · exact public law section
(ii) Subsection (a) of section 417 is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph: “(4) Requirement of spousal consent for using plan assets as security for loans.— Each plan shall provide that, if section 401(a)(11) applies to a participant when part or all of the participant’s accrued benefit is to be used as security for a loan, no portion of the participant’s accrued benefit may be used as security for such loan unless— “(A) the spouse of the participant (if any) consents in writing to such use during the 90-day period ending on the date on which the loan is to be so secured, and “(B) requirements comparable to the requirements of paragraph (2) are met with respect to such consent.”Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(15)(B) · 100 Stat. 2085
Substituted · 26 U.S.C. § 417(c)(1)
Pub. L. 99–514, § 1898(b)(15)(B), substituted “survivor annuity for the life of” for “survivor annuity or the life of”
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 99–514, § 1898(b)(15)(B), substituted “survivor annuity for the life of” for “survivor annuity or the life of”.Enacted provision · exact public law section
(B) Paragraph (1) of section 417(c) is amended by striking out “survivor annuity or the life of’ in the matter preceding subparagraph (A) and inserting in lieu thereof “survivor annuity for the life of”.Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(1)(A) · 100 Stat. 2085
Inserted · 26 U.S.C. § 417(c)(1)
Pub. L. 99–514, § 1898(b)(1)(A), inserted “In the case of an individual who separated from service before the date of such individual’s death, subparagraph (A)(ii)(I) shall not apply.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 99–514, § 1898(b)(1)(A), inserted “In the case of an individual who separated from service before the date of such individual’s death, subparagraph (A)(ii)(I) shall not apply.”Enacted provision · exact public law section
(A) Amendment of internal revenue code.— Paragraph (1) of section 417(c) (defining qualified preretirement survivor annuity) is amended by adding at the end thereof the following new sentence: “In the case of an individual who separated from service before the date of such individual’s death, subparagraph (A)(ii)(I) shall not apply.”Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(9)(A)(i) · 100 Stat. 2085
Substituted · 26 U.S.C. § 417(c)(2)
Pub. L. 99–514, § 1898(b)(9)(A)(i), substituted “the portion of the account balance of the participant (as of the date of death) to which the participant had a nonforfeitable right (within the meaning of section 411(a))” for “the account balance of the participant as of the date of death”
Source evidence
Code amendment note
Subsec. (c)(2). Pub. L. 99–514, § 1898(b)(9)(A)(i), substituted “the portion of the account balance of the participant (as of the date of death) to which the participant had a nonforfeitable right (within the meaning of section 411(a))” for “the account balance of the participant as of the date of death”.Enacted provision · exact public law section
(i) Paragraph (2) of section 417(c) (defining qualified preretirement survivor annuity) is amended by striking out “the account balance of the participant as of the date of death” and inserting in lieu thereof “the portion of the account balance of the participant (as of the date of death) to which the participant had a nonforfeitable right (within the meaning of section 411(a))”.Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(9)(A)(ii) · 100 Stat. 2085
Added · 26 U.S.C. § 417(c)(3)
Pub. L. 99–514, § 1898(b)(9)(A)(ii), added par. (3)
Source evidence
Code amendment note
Subsec. (c)(3). Pub. L. 99–514, § 1898(b)(9)(A)(ii), added par. (3).Enacted provision · exact public law section
(ii) Subsection (c) of section 417 (defining qualified preretirement survivor annuity) is amended by adding at the end thereof the following new paragraph: “(3) Security interests taken into account.— For purposes of paragraphs (1) and (2), any security interest held by the plan by reason of a loan outstanding to the participant shall be taken into account in determining the amount of the qualified preretirement survivor annuity.”Tax Reform Act of 1986
Pub. L. 99–514 § 1139(b) · 100 Stat. 2085
Amended · 26 U.S.C. § 417(e)(3)
Pub. L. 99–514, § 1139(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For purposes of paragraphs (1) and (2), the present value of a qualified joint and survivor annuity or a qualified preretirement survivor annuity shall be determined as of the date of the distribution and by using an interest rate not greater than the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination.”
Source evidence
Code amendment note
Subsec. (e)(3). Pub. L. 99–514, § 1139(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For purposes of paragraphs (1) and (2), the present value of a qualified joint and survivor annuity or a qualified preretirement survivor annuity shall be determined as of the date of the distribution and by using an interest rate not greater than the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination.”Enacted provision · exact public law section
(b) Conforming Amendment.— Paragraph (3) of section 417(e) (relating to determination of present value) is amended to read as follows: “(3) Determination of present value.— “(A) In general.— For purposes of paragraphs (1) and (2), the present value shall be calculated— “(i) by using an interest rate no greater than the applicable interest rate if the vested accrued benefit (using such rate) is not in excess of $25,000, and “(ii) by using an interest rate no greater than 120 percent of the applicable interest rate if the vested accrued benefit exceeds $25,000 (as determined under clause (i)). In no event shall the present value determined under subclause (II) be less than $25,000. “(B) Applicable interest rate.— For purposes of subparagraph (A), the term ’applicable interest rate’ means the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination.”Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(8)(A) · 100 Stat. 2085
Substituted · 26 U.S.C. § 417(f)(1)
Pub. L. 99–514, § 1898(b)(8)(A), substituted “such participant’s accrued benefit” for “the accrued benefit derived from employer contributions”
Source evidence
Code amendment note
Subsec. (f)(1). Pub. L. 99–514, § 1898(b)(8)(A), substituted “such participant’s accrued benefit” for “the accrued benefit derived from employer contributions”.Enacted provision · exact public law section
(A) Amendment of internal revenue code.— Paragraph (1) of section 417(f) (defining vested participant) is amended by striking out “the accrued benefit derived from employer contributions” and inserting in lieu thereof “such participant’s accrued benefit”.Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(12)(A) · 100 Stat. 2085
Amended · 26 U.S.C. § 417(f)(2)
Pub. L. 99–514, § 1898(b)(12)(A), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The term ‘annuity starting date’ means the first day of the first period for which an amount is received as an annuity (whether by reason of retirement or disability).”
Source evidence
Code amendment note
Subsec. (f)(2). Pub. L. 99–514, § 1898(b)(12)(A), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The term ‘annuity starting date’ means the first day of the first period for which an amount is received as an annuity (whether by reason of retirement or disability).”Enacted provision · exact public law section
(A) Amendment of internal revenue code.— Paragraph (2) of section 417(f) (defining annuity starting date) is amended to read as follows: “(2) Annuity starting date.— “(A) In general.— The term ‘annuity starting date’ means— “(i) the first day of the first period for which an amount is payable as an annuity, or “(ii) in the case of a benefit not payable in the form of an annuity, the first day on which all events have occurred which entitle the participant to such benefit. “(B) Special rule for disability benefits.— For purposes of subparagraph (A), the first day of the first period for which a benefit is to be received by reason of disability shall be treated as the annuity starting date only if such benefit is not an auxiliary benefit.”Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(4)(A)(iii) · 100 Stat. 2085
Added · 26 U.S.C. § 417(f)(5)
Pub. L. 99–514, § 1898(b)(4)(A)(iii), added par. (5)
Redesignated · 26 U.S.C. § 417(f)(5)
Pub. L. 99–514, § 1898(b)(4)(A)(iii), redesignated former par. (5) as (6)
Source evidence
Code amendment note
Subsec. (f)(5). Pub. L. 99–514, § 1898(b)(4)(A)(iii), added par. (5) and redesignated former par. (5) as (6).Enacted provision · exact public law section
(iii) Subsection (f) of section 417 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: “(5) Distributions by reason of security interests.— If the use of any participant’s accrued benefit (or any portion thereof) as security for a loan meets the requirements of subsection (a)(4), nothing in this section or section 411(a)(11) shall prevent any distribution required by reason of a failure to comply with the terms of such loan.”Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(10)(A) · 100 Stat. 2085
Added · 26 U.S.C. § 417(f)(6); 26 U.S.C. § 417(f)(7)
Pub. L. 99–514, § 1898(b)(10)(A), added par. (6)
Redesignated · 26 U.S.C. § 417(f)(6); 26 U.S.C. § 417(f)(7)
Pub. L. 99–514, § 1898(b)(10)(A), redesignated former par. (6) as (7)
Source evidence
Code amendment note
Subsec. (f)(6), (7). Pub. L. 99–514, § 1898(b)(10)(A), added par. (6) and redesignated former par. (6) as (7).Enacted provision · exact public law section
(A) Amendment of internal revenue code.— Subsection (f) of section 417 (as amended by paragraph (4)) is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph: “(6) Requirements for certain spousal consents.— No consent of a spouse shall be effective for purposes of subsection (e)(1) or (e)(2) (as the case may be) unless requirements comparable to the requirements for spousal consent to an election under subsection (a)(1)(A) are met.”Tax Reform Act of 1986
Pub. L. 99–514 § 1898(b)(4)(A)(iii) · 100 Stat. 2085
Redesignated · 26 U.S.C. § 417(f)(6); 26 U.S.C. § 417(f)(7)
Pub. L. 99–514, § 1898(b)(4)(A)(iii), redesignated former par. (5) as (6)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 99–514, § 1898(b)(4)(A)(iii), redesignated former par. (5) as (6).Enacted provision · exact public law section
(iii) Subsection (f) of section 417 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: “(5) Distributions by reason of security interests.— If the use of any participant’s accrued benefit (or any portion thereof) as security for a loan meets the requirements of subsection (a)(4), nothing in this section or section 411(a)(11) shall prevent any distribution required by reason of a failure to comply with the terms of such loan.”Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 title I § 1018(u)(9) · 102 Stat. 3342
Substituted · 26 U.S.C. § 417(e)(3)(A)
Pub. L. 100–647 substituted “clause (ii)” for “subclause (II)” in last sentence
Source evidence
Code amendment note
Subsec. (e)(3)(A). Pub. L. 100–647 substituted “clause (ii)” for “subclause (II)” in last sentence.Enacted provision · exact public law section
(9) Subparagraph (A) of section 417(e)(3) of the 1986 Code is amended by striking out “subclause (II)” and inserting in lieu thereof ^clause (ii)**Revenue Reconciliation Act of 1989
Pub. L. 101–239 title VII § 7862(d)(1)(A) · 103 Stat. 2106
Added · 26 U.S.C. § 417(a)(3)(B)(ii)
Pub. L. 101–239 added sentence at end
Struck · 26 U.S.C. § 417(a)(3)(B)(ii)
Pub. L. 101–239 struck out former subcl. (V) which read as follows: “A reasonable period after separation from service in case of a participant who separates before attaining age 35.”
Source evidence
Code amendment note
Subsec. (a)(3)(B)(ii). Pub. L. 101–239 added sentence at end and struck out former subcl. (V) which read as follows: “A reasonable period after separation from service in case of a participant who separates before attaining age 35.”Enacted provision · exact public law section
(A) Clause (ii) of section 417(a)(3)(B) (defining applicable 26 USC 417. period) is amended by striking subclause (V) and inserting at the end thereof the following new flush sentence: “In the case of a participant who separates from service before attaining age 35, the applicable period shall be a reasonable period after separation.”.Retirement Protection Act of 1994
Pub. L. 103–465 title VII § 767(a)(2) · 108 Stat. 4809
Amended · 26 U.S.C. § 417(e)(3)
Pub. L. 103–465 amended par. (3) generally
Substituted · 26 U.S.C. § 417(e)(3)
Pub. L. 103–465 substituting present provisions for provisions directing that present value be calculated by using a rate no greater than the applicable interest rate or 120 percent of such rate, depending upon amount of vested accrued benefit, and defining “applicable interest rate”
Source evidence
Code amendment note
Subsec. (e)(3). Pub. L. 103–465 amended par. (3) generally, substituting present provisions for provisions directing that present value be calculated by using a rate no greater than the applicable interest rate or 120 percent of such rate, depending upon amount of vested accrued benefit, and defining “applicable interest rate”.Enacted provision · exact public law section
(2) Determination of present value for purposes of restrictions on cash-outs.— Paragraph (3) of section 417(e) is amended to read as follows: “(3) Determination of present value.— “(A) In general.— “(i) Present value.— Except as provided in subparagraph (B), for purposes of paragraphs (1) and (2), the present value shall not be less than the present value calculated by using the applicable mortality table and the applicable interest rate. “(ii) Definitions.— For purposes of clause (i)— “(I) Applicable mortality table.— The term ‘applicable mortality table’ means the table prescribed by the Secretary. Such table shall be based on the prevailing commissioners’ standard table (described in section 807(d)(5)(A)) used to determine reserves for group annuity contracts issued on the date as of which present value is being determined (without regard to any other subparagraph of section 807(d)(5)). “(II) Applicable interest rate.— The term ‘applicable interest rate’ means the annual rate of interest on 30-year Treasury securities for the month before the date of distribution or such other time as the Secretary may by regulations prescribe. “(B) Exception.— In the case of a distribution from a plan that was adopted and in effect before the date of the enactment of the Retirement Protection Act of 1994, the present value of any distribution made before the earlier of— “(i) the later of the date a plan amendment applying subparagraph (A) is adopted or made effective, or “(ii) the first day of the first plan year beginning after December 31, 1999, shall be calculated, for purposes of paragraphs (1) and (2), using the interest rate determined under the regulations of the Pension Benefit Guaranty Corporation for determining the present value of a lump sum distribution on plan termination that were in effect on September 1, 1993, and using the provisions of the plan as in effect on the day before such date of enactment; but only if such provisions of the plan met the requirements of section 417(e)(3) as in effect on the day before such date of enactment.”Small Business Job Protection Act of 1996
Pub. L. 104–188 title I § 1451(a) · 110 Stat. 1755
Added · 26 U.S.C. § 417(a)(7)
Pub. L. 104–188 added par. (7)
Source evidence
Code amendment note
Subsec. (a)(7). Pub. L. 104–188 added par. (7).Enacted provision · exact public law section
(a) Amendment to Internal Revenue Code.— Section 417(a) is amended by adding at the end the following new paragraph: “(7) Special rules relating to time for written explanation.— Notwithstanding any other provision of this subsection— “(A) Explanation may be provided after annuity starting date.— “(i) In general.— A plan may provide the written explanation described in paragraph (3)(A) after the annuity starting date. In any case to which this subparagraph applies, the applicable election period under paragraph (6) shall not end before the 30th day after the date on which such explanation is provided. “(ii) Regulatory authority.— The Secretary may by regulations limit the application of clause (i), except that such regulations may not limit the period of time by which the annuity starting date precedes the provision of the written explanation other than by providing that the annuity starting date may not be earlier than termination of employment. “(B) Waiver of 30-day period.— A plan may permit a participant to elect (with any applicable spousal consent) to waive any requirement that the written explanation be provided at least 30 days before the annuity starting date (or to waive the 30-day requirement under subparagraph (A)) if the distribution commences more than 7 days after such explanation is provided.”.Pub. L. 105–34 title X § 1071(a)(2) · 111 Stat. 788
Substituted · 26 U.S.C. § 417(e)(1); 26 U.S.C. § 417(e)(2)
Pub. L. 105–34 substituted “dollar limit” for “$3,500” in text of pars. (1) and (2)(A)
Substituted · 26 U.S.C. § 417(e)(1); 26 U.S.C. § 417(e)(2)
Pub. L. 105–34 substituted “the dollar limit under section 411(a)(11)(A)” for “$3,500” in text of pars. (1) and (2)(A)
Source evidence
Code amendment note
Subsec. (e)(1), (2). Pub. L. 105–34 substituted “dollar limit” for “$3,500” in headings of pars. (1) and (2) and “the dollar limit under section 411(a)(11)(A)” for “$3,500” in text of pars. (1) and (2)(A).Enacted provision · exact public law section
(2) Conforming amendments.— (A) Section 411(a)(7)(B), paragraphs (1) and (2) of section 417(e), and section 457(e)(9) are each amended by striking “$3,500” each place it appears (other than the headings) and inserting “the dollar limit under section 411(a)(1l)(A)”. (B) The headings for paragraphs (1) and (2) of section 417(e) and subparagraph (A) of section 457(e)(9) are each amended by striking “$3,500” and inserting “dollar limit”.Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411(r)(1)(A) · 116 Stat. 21
Substituted · 26 U.S.C. § 417(e)(1)
Pub. L. 107–147, § 411(r)(1)(A), substituted “exceed the amount that can be distributed without the participant’s consent under section 411(a)(11)” for “exceed the dollar limit under section 411(a)(11)(A)”
Source evidence
Code amendment note
Subsec. (e)(1). Pub. L. 107–147, § 411(r)(1)(A), substituted “exceed the amount that can be distributed without the participant’s consent under section 411(a)(11)” for “exceed the dollar limit under section 411(a)(11)(A)”.Enacted provision · exact public law section
(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)”, andJob Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411(r)(1)(B) · 116 Stat. 21
Substituted · 26 U.S.C. § 417(e)(2)(A)
Pub. L. 107–147, § 411(r)(1)(B), substituted “exceeds the amount that can be distributed without the participant’s consent under section 411(a)(11)” for “exceeds the dollar limit under section 411(a)(11)(A)”
Source evidence
Code amendment note
Subsec. (e)(2)(A). Pub. L. 107–147, § 411(r)(1)(B), substituted “exceeds the amount that can be distributed without the participant’s consent under section 411(a)(11)” for “exceeds the dollar limit under section 411(a)(11)(A)”.Enacted provision · exact public law section
(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)”.Pub. L. 109–280 § 1004(a)(1) · 120 Stat. 780
Added · 26 U.S.C. § 417(a)(1)(A)(ii); 26 U.S.C. § 417(a)(1)(A)(iii)
Pub. L. 109–280, § 1004(a)(1), added cl. (ii)
Redesignated · 26 U.S.C. § 417(a)(1)(A)(ii); 26 U.S.C. § 417(a)(1)(A)(iii)
Pub. L. 109–280, § 1004(a)(1), redesignated former cl. (ii) as (iii)
Source evidence
Code amendment note
Subsec. (a)(1)(A)(ii), (iii). Pub. L. 109–280, § 1004(a)(1), added cl. (ii) and redesignated former cl. (ii) as (iii).Enacted provision · exact public law section
(1) Election of survivor annuity.— Section 417(a)(1)(A) of the Internal Revenue Code of 1986 26 USC 417. is amended— (A) in clause (i), by striking “, and” and inserting a comma; (B) by redesignating clause (ii) as clause (iii); and (C) by inserting after clause (i) the following: “(ii) if the participant elects a waiver under clause (i), may elect the qualified optional survivor annuity at any time during the applicable election period, and” .Pub. L. 109–280 § 1004(a)(3) · 120 Stat. 780
Inserted · 26 U.S.C. § 417(a)(3)(A)(i)
Pub. L. 109–280, § 1004(a)(3), inserted “and of the qualified optional survivor annuity” before comma at end
Source evidence
Code amendment note
Subsec. (a)(3)(A)(i). Pub. L. 109–280, § 1004(a)(3), inserted “and of the qualified optional survivor annuity” before comma at end.Enacted provision · exact public law section
(3) Notice.— Section 417(a)(3)(A)(i) of such Code is amended by inserting “and of the qualified optional survivor annuity” after “annuity”.Pub. L. 109–280 § 1102(a)(1)(A) · 120 Stat. 780
Substituted · 26 U.S.C. § 417(a)(6)(A)
Pub. L. 109–280, § 1102(a)(1)(A), substituted “180-day” for “90-day”
Source evidence
Code amendment note
Subsec. (a)(6)(A). Pub. L. 109–280, § 1102(a)(1)(A), substituted “180-day” for “90-day”.Enacted provision · exact public law section
(A) In general.— Section 417(a)(6)(A) of the Internal Revenue Code of 1986 26 USC 417. is amended by striking “90-day” and inserting “180-day”.Pub. L. 109–280 § 302(b) · 120 Stat. 780
Amended · 26 U.S.C. § 417(e)(3)
Pub. L. 109–280, § 302(b), reenacted heading without change and amended text of par. (3) generally
Substituted · 26 U.S.C. § 417(e)(3)
Pub. L. 109–280, § 302(b), reenacted heading without change and substituting provisions relating to determination of present value by using the applicable mortality table and the applicable interest rate, provisions defining “applicable mortality table” and “applicable interest rate”, and provisions relating to determination of the adjusted first, second, and third segment rates, for provisions relating to determination of present value, provisions defining “applicable mortality table” and “applicable interest rate”, and provisions stating exception for a distribution from a plan that was adopted and in effect before the date of the enactment of the Retirement Protection Act of 1994
Source evidence
Code amendment note
Subsec. (e)(3). Pub. L. 109–280, § 302(b), reenacted heading without change and amended text of par. (3) generally, substituting provisions relating to determination of present value by using the applicable mortality table and the applicable interest rate, provisions defining “applicable mortality table” and “applicable interest rate”, and provisions relating to determination of the adjusted first, second, and third segment rates, for provisions relating to determination of present value, provisions defining “applicable mortality table” and “applicable interest rate”, and provisions stating exception for a distribution from a plan that was adopted and in effect before the date of the enactment of the Retirement Protection Act of 1994.Enacted provision · exact public law section
(b) Amendment to Internal Revenue Code of 1986.— Paragraph (3) of section 417(e) of the Internal Revenue Code of 26 USC 417. 1986 is amended to read as follows: “(3) Determination of present value.— “(A) In general.— For purposes of paragraphs (1) and (2), the present value shall not be less than the present value calculated by using the applicable mortality table and the applicable interest rate. “(B) Applicable mortality table.— For purposes of subparagraph (A), the term ‘applicable mortality table’ means a mortality table, modified as appropriate by the Secretary, based on the mortality table specified for the plan year under subparagraph (A) of section 430(h)(3) (without regard to subparagraph (C) or (D) of such section). “(C) Applicable interest rate.— For purposes of subparagraph (A), the term ‘applicable interest rate’ means the adjusted first, second, and third segment rates applied under rules similar to the rules of section 430(h)(2)(C) for the month before the date of the distribution or such other time as the Secretary may by regulations prescribe. “(D) Applicable segment rates.— For purposes of subparagraph (C), the adjusted first, second, and third segment rates are the first, second, and third segment rates which would be determined under section 430(h)(2)(C) if— “(i) section 430(h)(2)(D) were applied by substituting the average yields for the month described in clause (ii) for the average yields for the 24-month period described in such section, “(ii) section 430(h)(2)(G)(i)(II) were applied by substituting ‘section 417(e)(3)(A)(ii)(II)’ for ‘section 412(b)(5)(B)(ii)(II)’, and “(iii) the applicable percentage under section 430(h)(2)(G) were determined in accordance with the following table: “In the case of plan years beginning in:The applicable percentage is: 2008 20 percent 2009 40 percent 2010 60 percent 2011 80 percent.”.Pub. L. 109–280 § 1004(a)(2) · 120 Stat. 780
Added · 26 U.S.C. § 417(g)
Pub. L. 109–280, § 1004(a)(2), added subsec. (g)
Source evidence
Code amendment note
Subsec. (g). Pub. L. 109–280, § 1004(a)(2), added subsec. (g).Enacted provision · exact public law section
(2) Definition.— Section 417 of such Code 26 USC 417. is amended by adding at the end the following: “(g) Definition of Qualified Optional Survivor Annuity.— “(1) In general.— For purposes of this section, the term ‘qualified optional survivor annuity’ means an annuity— “(A) for the life of the participant with a survivor annuity for the life of the spouse which is equal to the applicable percentage of the amount of the annuity which is payable during the joint lives of the participant and the spouse, and “(B) which is the actuarial equivalent of a single annuity for the life of the participant. Such term also includes any annuity in a form having the effect of an annuity described in the preceding sentence. “(2) Applicable percentage.— “(A) In general.— For purposes of paragraph (1), if the survivor annuity percentage— “(i) is less than 75 percent, the applicable percentage is 75 percent, and “(ii) is greater than or equal to 75 percent, the applicable percentage is 50 percent. “(B) Survivor annuity percentage.— For purposes of subparagraph (A), the term ‘survivor annuity percentage’ means the percentage which the survivor annuity under the plan’s qualified joint and survivor annuity bears to the annuity payable during the joint lives of the participant and the spouse.” .Worker, Retiree, and Employer Recovery Act of 2008
Pub. L. 110–458 title I § 103(b)(2)(A) · 122 Stat. 5092
Substituted · 26 U.S.C. § 417(e)(3)(D)(i)
Pub. L. 110–458 substituted “subparagraph (C)” for “clause (ii)”
Source evidence
Code amendment note
Subsec. (e)(3)(D)(i). Pub. L. 110–458 substituted “subparagraph (C)” for “clause (ii)”.Enacted provision · exact public law section
(A) Section 417(e)(3)(D)(i) of the 1986 Code 26 USC 417. is amended by striking “clause (ii)” and inserting “subparagraph (C)”.Highway Investment, Job Creation, and Economic Growth Act of 2012
Pub. L. 112–141 div. D title II § 40211(a)(2)(C) · 126 Stat. 405
Substituted · 26 U.S.C. § 417(e)(3)(C); 26 U.S.C. § 417(e)(3)(D)
Pub. L. 112–141 substituted “section 430(h)(2)(C) (determined by not taking into account any adjustment under clause (iv) thereof)” for “section 430(h)(2)(C)”
Source evidence
Code amendment note
Subsec. (e)(3)(C), (D). Pub. L. 112–141 substituted “section 430(h)(2)(C) (determined by not taking into account any adjustment under clause (iv) thereof)” for “section 430(h)(2)(C)”.Enacted provision · exact public law section
(C) Subparagraphs (C) and (D) of section 417(e)(3) of such Code are each amended by striking “section 430(h)(2)(C)” and inserting “section 430(h)(2)(C) (determined by not taking into account any adjustment under clause (iv) thereof)”.Tax Technical Corrections Act of 2014
Pub. L. 113–295 div. A title II § 221(a)(57)(B)(i) · 128 Stat. 4010
Substituted · 26 U.S.C. § 417(e)(3)(D)
Pub. L. 113–295 substituted “if section 430(h)(2)(D)” for “if—
Source evidence
Code amendment note
Subsec. (e)(3)(D). Pub. L. 113–295 substituted “if section 430(h)(2)(D)” for “if—“(i) section 430(h)(2)(D)” and “described in such section.” for “described in such section,” and struck out cls. (ii) and (iii) which applied section 430(h)(2)(G)(i)(II) of this title by substituting “section 417(e)(3)(A)(ii)(II)” for “section 412(b)(5)(B)(ii)(II)” and listed the applicable percentage under section 430(h)(2)(G) for plan years beginning in 2008 to 2011.
Enacted provision · exact public law section
(i) Subparagraph (D) of section 417(e)(3) is amended— (I) by striking clauses (ii) and (iii), (II) by striking “if—” and all that follows through “section 430(h)(2)(D)” and inserting “if section 430(h)(2)(D)”, and (III) by striking “described in such section,” and inserting “described in such section.”.Effective date note
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.
40 of 40 references resolved to an enrolled provision
Editorial Notes
Amendments1986–2014 · 11 rounds
2014
Subsec. (e)(3)(D). Pub. L. 113–295 substituted “if section 430(h)(2)(D)” for “if—
“(i) section 430(h)(2)(D)”
and “described in such section.” for “described in such section,” and struck out cls. (ii) and (iii) which applied section 430(h)(2)(G)(i)(II) of this title by substituting “section 417(e)(3)(A)(ii)(II)” for “section 412(b)(5)(B)(ii)(II)” and listed the applicable percentage under section 430(h)(2)(G) for plan years beginning in 2008 to 2011.
2012
Subsec. (e)(3)(C), (D). Pub. L. 112–141 substituted “section 430(h)(2)(C) (determined by not taking into account any adjustment under clause (iv) thereof)” for “section 430(h)(2)(C)”.
2008
Subsec. (e)(3)(D)(i). Pub. L. 110–458 substituted “subparagraph (C)” for “clause (ii)”.
2006
Subsec. (a)(1)(A)(ii), (iii). Pub. L. 109–280, § 1004(a)(1), added cl. (ii) and redesignated former cl. (ii) as (iii).
Subsec. (a)(3)(A)(i). Pub. L. 109–280, § 1004(a)(3), inserted “and of the qualified optional survivor annuity” before comma at end.
Subsec. (a)(6)(A). Pub. L. 109–280, § 1102(a)(1)(A), substituted “180-day” for “90-day”.
Subsec. (e)(3). Pub. L. 109–280, § 302(b), reenacted heading without change and amended text of par. (3) generally, substituting provisions relating to determination of present value by using the applicable mortality table and the applicable interest rate, provisions defining “applicable mortality table” and “applicable interest rate”, and provisions relating to determination of the adjusted first, second, and third segment rates, for provisions relating to determination of present value, provisions defining “applicable mortality table” and “applicable interest rate”, and provisions stating exception for a distribution from a plan that was adopted and in effect before the date of the enactment of the Retirement Protection Act of 1994.
Subsec. (g). Pub. L. 109–280, § 1004(a)(2), added subsec. (g).
2002
Subsec. (e)(1). Pub. L. 107–147, § 411(r)(1)(A), substituted “exceed the amount that can be distributed without the participant’s consent under section 411(a)(11)” for “exceed the dollar limit under section 411(a)(11)(A)”.
Subsec. (e)(2)(A). Pub. L. 107–147, § 411(r)(1)(B), substituted “exceeds the amount that can be distributed without the participant’s consent under section 411(a)(11)” for “exceeds the dollar limit under section 411(a)(11)(A)”.
1997
Subsec. (e)(1), (2). Pub. L. 105–34 substituted “dollar limit” for “$3,500” in headings of pars. (1) and (2) and “the dollar limit under section 411(a)(11)(A)” for “$3,500” in text of pars. (1) and (2)(A).
1996
Subsec. (a)(7). Pub. L. 104–188 added par. (7).
1994
Subsec. (e)(3). Pub. L. 103–465 amended par. (3) generally, substituting present provisions for provisions directing that present value be calculated by using a rate no greater than the applicable interest rate or 120 percent of such rate, depending upon amount of vested accrued benefit, and defining “applicable interest rate”.
1989
Subsec. (a)(3)(B)(ii). Pub. L. 101–239 added sentence at end and struck out former subcl. (V) which read as follows: “A reasonable period after separation from service in case of a participant who separates before attaining age 35.”
1988
Subsec. (e)(3)(A). Pub. L. 100–647 substituted “clause (ii)” for “subclause (II)” in last sentence.
1986
Subsec. (a)(1). Pub. L. 99–514, § 1898(b)(15)(A), substituted “section 401(a)(11)” for “section 401(a)(ii)”.
Subsec. (a)(1)(B). Pub. L. 99–514, § 1898(b)(4)(A)(i), substituted “paragraphs (2), (3), and (4)” for “paragraphs (2) and (3)”.
Subsec. (a)(2)(A). Pub. L. 99–514, § 1898(b)(6)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the spouse of the participant consents in writing to such election, and the spouse’s consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or”.
Subsec. (a)(3)(B). Pub. L. 99–514, § 1898(b)(5)(A), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Each plan shall provide to each participant, within the period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35 (and consistent with such regulations as the Secretary may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A).”
Subsec. (a)(4). Pub. L. 99–514, § 1898(b)(4)(A)(ii), added par. (4). Former par. (4) redesignated (5).
Subsec. (a)(5), (6). Pub. L. 99–514, § 1898(b)(4)(A)(ii), (11)(A), redesignated former par. (4) as (5) and inserted in subpar. (A) “if such benefit may not be waived (or another beneficiary selected) and” before “if the plan”. Former par. (5) redesignated (6).
Subsec. (c)(1). Pub. L. 99–514, § 1898(b)(15)(B), substituted “survivor annuity for the life of” for “survivor annuity or the life of”.
Pub. L. 99–514, § 1898(b)(1)(A), inserted “In the case of an individual who separated from service before the date of such individual’s death, subparagraph (A)(ii)(I) shall not apply.”
Subsec. (c)(2). Pub. L. 99–514, § 1898(b)(9)(A)(i), substituted “the portion of the account balance of the participant (as of the date of death) to which the participant had a nonforfeitable right (within the meaning of section 411(a))” for “the account balance of the participant as of the date of death”.
Subsec. (c)(3). Pub. L. 99–514, § 1898(b)(9)(A)(ii), added par. (3).
Subsec. (e)(3). Pub. L. 99–514, § 1139(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For purposes of paragraphs (1) and (2), the present value of a qualified joint and survivor annuity or a qualified preretirement survivor annuity shall be determined as of the date of the distribution and by using an interest rate not greater than the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination.”
Subsec. (f)(1). Pub. L. 99–514, § 1898(b)(8)(A), substituted “such participant’s accrued benefit” for “the accrued benefit derived from employer contributions”.
Subsec. (f)(2). Pub. L. 99–514, § 1898(b)(12)(A), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The term ‘annuity starting date’ means the first day of the first period for which an amount is received as an annuity (whether by reason of retirement or disability).”
Subsec. (f)(5). Pub. L. 99–514, § 1898(b)(4)(A)(iii), added par. (5) and redesignated former par. (5) as (6).
Subsec. (f)(6), (7). Pub. L. 99–514, § 1898(b)(10)(A), added par. (6) and redesignated former par. (6) as (7).
Pub. L. 99–514, § 1898(b)(4)(A)(iii), redesignated former par. (5) as (6).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by Pub. L. 113–295 effective , 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.
Effective Date of 2012 Amendment
Amendment by Pub. L. 112–141 applicable with respect to plan years beginning after , except as otherwise provided, see section 40211(c) of Pub. L. 112–141, set out as a note under section 404 of this title.
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.
Effective Date of 2006 Amendment
Pub. L. 109–280, title III, § 302(c), , 120 Stat. 921, provided that: “The amendments made by this section [amending this section and section 1055 of Title 29, Labor] shall apply with respect to plan years beginning after .”
Pub. L. 109–280, title X, § 1004(c), , 120 Stat. 1055, provided that:
“(1) In general.—
The amendments made by this section [amending this section and section 1055 of Title 29, Labor] shall apply to plan years beginning after .
“(2) Special rule for collectively bargained plans.—
In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified on or before the date of the enactment of this Act [], the amendments made by this section shall not apply to plan years beginning before the earlier of—
“(A) the later of—
“(i) , or
“(ii) the date on which the last collective bargaining agreement related to the plan terminates (determined without regard to any extension thereof after the date of enactment of this Act), or
“(B) .”
Pub. L. 109–280, title XI, § 1102(a)(3), , 120 Stat. 1056, provided that: “The amendments and modifications made or required by this subsection [amending this section and section 1055 of Title 29, Labor] shall apply to years beginning after .”
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 1997 Amendment
Amendment by Pub. L. 105–34 applicable to plan years beginning after , see section 1071(c) of Pub. L. 105–34, set out as a note under section 411 of this title.
Effective Date of 1996 Amendment
Pub. L. 104–188, title I, § 1451(c), , 110 Stat. 1816, provided that: “The amendments made by this section [amending this section and section 1055 of Title 29, Labor] shall apply to plan years beginning after .”
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–465 applicable to plan years and limitation years beginning after , except that employer may elect to treat such amendment as effective on or after , with provisions relating to reduction of accrued benefits, exception, and timing of plan amendment, see section 767(d) of Pub. L. 103–465, as amended, set out as a note under section 411 of this title.
Effective Date of 1989 Amendment
Amendment by Pub. L. 101–239 effective as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7863 of Pub. L. 101–239, set out as a note under section 106 of this title.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Effective Date of 1986 Amendment
Amendment by section 1139(b) of Pub. L. 99–514 applicable to distributions in plan years beginning after , except that such amendments shall not apply to any distributions in plan years beginning after , and before , if such distributions were made in accordance with the requirements of the regulations issued under the Retirement Equity Act of 1984, Pub. L. 98–397, with additional provisions relating to reductions in accrued benefits, see section 1139(d) of Pub. L. 99–514, set out as a note under section 411 of this title.
Pub. L. 99–514, title XVIII, § 1898(b)(4)(C), , 100 Stat. 2946, provided that:
“(i) The amendments made by this paragraph [amending this section and section 1055 of Title 29, Labor] shall apply with respect to loans made after .
“(ii) In the case of any loan which was made on or before , and which is secured by a portion of the participant’s accrued benefit, nothing in the amendments made by sections 103 and 203 of the Retirement Equity Act of 1984 [sections 103 and 203 of Pub. L. 98–397, enacting this section and amending section 401 of this title and section 1055 of Title 29] shall prevent any distribution required by reason of a failure to comply with the terms of such loan.
“(iii) For purposes of this subparagraph, any loan which is revised, extended, renewed, or renegotiated after , shall be treated as made after .”
Pub. L. 99–514, title XVIII, § 1898(b)(6)(C), , 100 Stat. 2948, provided that: “The amendments made by this paragraph [amending this section and section 1055 of Title 29, Labor] shall apply to plan years beginning after the date of the enactment of this Act [].”
Pub. L. 99–514, title XVIII, § 1898(b)(8)(C), as added by Pub. L. 101–239, title VII, § 7862(d)(2), , 103 Stat. 2434, provided that: “The amendments made by this paragraph [amending this section and section 1055 of Title 29, Labor] shall apply to distributions after the date of the enactment of this Act [].”
Amendment by section 1898(b)(1)(A), (5)(A), (9)(A), (10)(A), (11)(A), (12)(A), (15)(A), (B) 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
Section applicable to plan years beginning after , except as otherwise provided, see sections 302 and 303 of Pub. L. 98–397, set out as an Effective Date of 1984 Amendment note under section 1001 of Title 29, Labor.
Plan Amendments Not Required Until January 1, 1998
For provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of Pub. L. 104–188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after , see section 1465 of Pub. L. 104–188, set out as a note under section 401 of this title.
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.
Credits
1984–2014 · 12 acts
- 1984Added Pub. L. 98–397, title II, § 203(b), , 98 Stat. 1441
- 1986amended Pub. L. 99–514, title XI, § 1139(b), title XVIII, § 1898(b)(1)(A), (4)(A), (5)(A), (6)(A), (8)(A), (9)(A), (10)(A), (11)(A), (12)(A), (15)(A), (B), , 100 Stat. 2487, 2944, 2945, 2947–2951
- 1988Pub. L. 100–647, title I, § 1018(u)(9), , 102 Stat. 3590
- 1989Pub. L. 101–239, title VII, § 7862(d)(1)(A), , 103 Stat. 2433
- 1994Pub. L. 103–465, title VII, § 767(a)(2), , 108 Stat. 5038
- 1996Pub. L. 104–188, title I, § 1451(a), , 110 Stat. 1815
- 1997Pub. L. 105–34, title X, § 1071(a)(2), , 111 Stat. 948
- 2002Pub. L. 107–147, title IV, § 411(r)(1), , 116 Stat. 51
- 2006Pub. L. 109–280, title III, § 302(b), title X, § 1004(a), title XI, § 1102(a)(1)(A), , 120 Stat. 920, 1053, 1056
- 2008Pub. L. 110–458, title I, § 103(b)(2)(A), , 122 Stat. 5103
- 2012Pub. L. 112–141, div. D, title II, § 40211(a)(2)(C), , 126 Stat. 847
- 2014Pub. L. 113–295, div. A, title II, § 221(a)(57)(B)(i), , 128 Stat. 4046.
Show as published
(Added Pub. L. 98–397, title II, § 203(b), , 98 Stat. 1441; amended Pub. L. 99–514, title XI, § 1139(b), title XVIII, § 1898(b)(1)(A), (4)(A), (5)(A), (6)(A), (8)(A), (9)(A), (10)(A), (11)(A), (12)(A), (15)(A), (B), , 100 Stat. 2487, 2944, 2945, 2947–2951; Pub. L. 100–647, title I, § 1018(u)(9), , 102 Stat. 3590; Pub. L. 101–239, title VII, § 7862(d)(1)(A), , 103 Stat. 2433; Pub. L. 103–465, title VII, § 767(a)(2), , 108 Stat. 5038; Pub. L. 104–188, title I, § 1451(a), , 110 Stat. 1815; Pub. L. 105–34, title X, § 1071(a)(2), , 111 Stat. 948; Pub. L. 107–147, title IV, § 411(r)(1), , 116 Stat. 51; Pub. L. 109–280, title III, § 302(b), title X, § 1004(a), title XI, § 1102(a)(1)(A), , 120 Stat. 920, 1053, 1056; Pub. L. 110–458, title I, § 103(b)(2)(A), , 122 Stat. 5103; Pub. L. 112–141, div. D, title II, § 40211(a)(2)(C), , 126 Stat. 847; Pub. L. 113–295, div. A, title II, § 221(a)(57)(B)(i), , 128 Stat. 4046.)