I.R.C. § 403(a) Taxability Of Beneficiary Under A Qualified Annuity Plan —
I.R.C. § 403(a)(1) Distributee Taxable Under Section 72 —
If an annuity contract is purchased by an employer
for an employee under a plan which meets the requirements of section 404(a)(2) (whether or not
the employer deducts the amounts paid for the contract under such
section), the amount actually distributed to any distributee under
the contract shall be taxable to the distributee (in the year in
which so distributed) under section 72 (relating
to annuities).
I.R.C. § 403(a)(2) Special Rule For Health And Long-Term Care Insurance —
To the extent provided in section 402(l), paragraph (1) shall not apply to the amount
distributed under the contract which is otherwise includible
in gross income under this subsection.
I.R.C. § 403(a)(3) Self-Employed Individuals —
For purposes of this subsection, the term “employee"
includes an individual who is an employee within the meaning of section 401(c)(1), and the employer
of such individual is the person treated as his employer under section 401(c)(4).
I.R.C. § 403(a)(4) Rollover Amounts
I.R.C. § 403(a)(4)(A) General Rule —
If—
I.R.C. § 403(a)(4)(A)(i) —
any portion of the balance to the credit
of an employee in an employee annuity described in paragraph (1) is paid to him in an eligible
rollover distribution (within the meaning of section 402(c)(4)),
I.R.C. § 403(a)(4)(A)(ii) —
the employee transfers any portion
of the property he receives in such distribution to an eligible retirement
plan, and
I.R.C. § 403(a)(4)(A)(iii) —
in the case of a distribution of
property other than money, the amount so transferred consists of
the property distributed, then such distribution (to the extent so
transferred) shall not be includible in gross income for the taxable
year in which paid.
I.R.C. § 403(a)(4)(B) Certain Rules Made Applicable —
The rules of paragraphs (2) through (7) and (11) and (9) of section 402(c) and section 402(f) shall apply for purposes
of subparagraph (A).
I.R.C. § 403(a)(5) Direct Trustee-To-Trustee Transfer —
Any amount transferred in a direct trustee-to-trustee
transfer in accordance with section 401(a)(31) shall not be
includible in gross income for the taxable year of such transfer.
Editor's Note: Sec. 403(a)(6), below,
added by Sec. 334(b) of Pub. L. 117-328,
Div. T, applicable to distributions made after the date which is 3
years after the date of enactment of this Act [Dec. 29, 2022].
I.R.C. § 403(a)(6) Qualified Long-Term Care Distributions —
An annuity contract shall not fail to be subject to this
subsection solely by reason of allowing distributions to which section
401(a)(39) applies.
I.R.C. § 403(b) Taxability Of Beneficiary Under Annuity Purchased By Section
501(c)(3) Organization Or Public School —
I.R.C. § 403(b)(1) General Rule —
If—
I.R.C. § 403(b)(1)(A) —
an annuity contract is purchased—
I.R.C. § 403(b)(1)(A)(i) —
for an employee by an employer described
in section 501(c)(3) which
is exempt from tax under section 501(a),
I.R.C. § 403(b)(1)(A)(ii) —
for an employee (other than an employee
described in clause (i)),
who performs services for an educational organization described in
section 170(b)(1)(A)(ii),
by an employer which is a State, a political subdivision of a State,
or an agency or instrumentality of any one or more of the foregoing,
or
I.R.C. § 403(b)(1)(A)(iii) —
for the minister described in section 414(e)(5)(A) by the minister
or by an employer.
I.R.C. § 403(b)(1)(B) —
such annuity contract is not subject
to subsection (a),
I.R.C. § 403(b)(1)(C) —
the employee's rights under the contract
are nonforfeitable, except for failure to pay future premiums,
I.R.C. § 403(b)(1)(D) —
except in the case of a contract purchased
by a church, such contract is purchased under a plan which meets
the nondiscrimination requirements of paragraph (12), and
I.R.C. § 403(b)(1)(E) —
in the case of a contract purchased
under a salary reduction agreement, the contract meets the requirements
of section 401(a)(30),
then contributions and other additions
by such employer for such annuity contract shall be excluded from
the gross income of the employee for the taxable year to the extent
that the aggregate of such contributions and additions (when expressed
as an annual addition (within the meaning of section 415(c)(2))) does not exceed
the applicable limit under section 415.
The amount actually distributed to any distributee under such contract
shall be taxable to the distributee (in the year in which so distributed)
under section 72
(relating to annuities). For purposes of applying the rules of this
subsection to contributions and other additions by an employer for
a taxable year, amounts transferred to a contract described in this
paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or section 408(d)(3)(A)(ii) shall
not be considered contributed by such employer.
I.R.C. § 403(b)(2) Special Rule For Health And Long-Term Care Insurance —
To the extent provided in section 402(l), paragraph (1) shall not apply to the amount
distributed under the contract which is otherwise includible in gross
income under this subsection.
I.R.C. § 403(b)(3) Includible Compensation —
For purposes of this subsection, the term “includible
compensation” means, in the case of any employee, the amount of compensation
which is received from the employer described in paragraph (1)(A), and which is includible
in gross income (computed without regard to section 911) for the most recent period
(ending not later than the close of the taxable year) which under
paragraph (4) may be counted
as one year of service, and which precedes the taxable year by no
more than five years. Such term does not include any amount contributed
by the employer for any annuity contract to which this subsection
applies. Such term includes—
I.R.C. § 403(b)(3)(A) —
any elective deferral (as defined
in section 402(g)(3)),
and
I.R.C. § 403(b)(3)(B) —
any amount which is contributed or
deferred by the employer at the election of the employee and which
is not includible in the gross income of the employee by reason
of section 125, 132(f)(4), or 457.
I.R.C. § 403(b)(4) Years Of Service —
In determining the number of years of service for purposes
of this subsection, there shall be included—
I.R.C. § 403(b)(4)(A) —
one year for each full year during
which the individual was a full-time employee of the organization
purchasing the annuity for him, and
I.R.C. § 403(b)(4)(B) —
a fraction of a year (determined in
accordance with regulations prescribed by the Secretary) for each
full year during which such individual was a part-time employee of
such organization and for each part of a year during which such individual
was a full-time or part-time employee of such organization.
In no case shall the number of years
of service be less than one.
I.R.C. § 403(b)(5) Application To More Than One Annuity Contract —
If for any taxable year of the employee this subsection
applies to 2 or more annuity contracts purchased by the employer,
such contracts shall be treated as one contract.
I.R.C. § 403(b)(6) [ Struck By Pub. L. 107-147, Sec. 411(p)(2).]
I.R.C. § 403(b)(7) Custodial Accounts —
Editor's Note: Subsec. 403(b)(7)(A)(I)-(VI),
below, before amendment by Sec. 334(b)(3) of Pub.
L. 117-328, Div. T, is applicable to distributions made
before the date which is before Dec. 31, 2025.
I.R.C. § 403(b)(7)(A) Amounts Paid Treated As Contributions —
For purposes of this title, amounts paid by an employer
described in paragraph (1)(A) to
a custodial account which satisfies the requirements of section 401(f)(2) shall be treated
as amounts contributed by him for an annuity contract for his employee
if the amounts are to be held in that custodial account and are invested
in regulated investment company stock or a group trust intended to
satisfy the requirements of Internal Revenue Service Revenue Ruling
81–100 (or any successor guidance), and under the custodial
account—
I.R.C. § 403(b)(7)(A)(i) —
no such amounts may be paid or made available
to any distributee (unless such amount is a distribution to which
section 72(t)(2)(G) applies) before—
I.R.C. § 403(b)(7)(A)(i)(I) —
the employee dies,
I.R.C. § 403(b)(7)(A)(i)(II) —
the employee attains age 59 ½,
I.R.C. § 403(b)(7)(A)(i)(III) —
the employee dies,
I.R.C. § 403(b)(7)(A)(i)(IV) —
the employee becomes disabled (within
the meaning of section 72(m)(7)),
Editor's Note: Subsec. 403(b)(7)(A)(V)
below, before amendment by Subsec. 602(b)(2) of Pub. L. 117-328, Div. T, is effective for
plan years beginning before Dec. 31, 2023.
I.R.C. § 403(b)(7)(A)(i)(V) —
in the case of contributions made pursuant
to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)),
the employee encounters financial hardship, or
Editor's Note: Subsec. 403(b)(7)(A)(V)
below, after amendment by Subsec. 602(b)(2) of Pub.
L. 117-328, Div. T, is effective for plan years beginning
after Dec. 31, 2023.
I.R.C. § 403(b)(7)(A)(i)(V) —
subject to the provisions of paragraph
(17), the employee encounters financial hardship, or
I.R.C. § 403(b)(7)(A)(i)(VI) —
except as may be otherwise provided
by regulations, with respect to amounts invested in a lifetime income
investment (as defined in section 401(a)(38)(B)(ii)), the date that
is 90 days prior to the date that such lifetime income investment
may no longer be held as an investment option under the contract,
and
I.R.C. § 403(b)(7)(A)(i)(ii) —
in the case of amounts described in
clause (i)(VI), such amounts will be distributed only in the form
of a qualified distribution (as defined in section 401(a)(38)(B)(i))
or a qualified plan distribution annuity contract (as defined in section
401(a)(38)(B)(iv)).
Editor's Note: Subsec. 403(b)(7)(A)(i)(I)-(VII),
below, after amendment by Sec. 334(b)(3) of Pub.
L. 117-328, Div. T, is generally applicable to distributions
made after the date which is after Dec. 31, 2025. Note, clause (V),
below, is effective for plan years beginning after Dec. 31, 2023.
I.R.C. § 403(b)(7)(A)(i) —
no such amounts may be paid or made available
to any distributee (unless such amount is a distribution to which
section 72(t)(2)(G) applies) before—
I.R.C. § 403(b)(7)(A)(i)(I) —
the employee dies,
I.R.C. § 403(b)(7)(A)(i)(II) —
the employee attains age 59 1/2,
I.R.C. § 403(b)(7)(A)(i)(III) —
the employee has a severance from employment,
I.R.C. § 403(b)(7)(A)(i)(IV) —
the employee becomes disabled (within
the meaning of section 72(m)(7)),
Editor's Note: Subsec. 403(b)(7)(A)(V)
below, after amendment by Subsec. 602(b)(2) of Pub.
L. 117-328, Div. T, is effective for plan years beginning
after Dec. 31, 2023.
I.R.C. § 403(b)(7)(A)(i)(V) —
subject to the provisions of paragraph
(17), the employee encounters financial hardship, or
I.R.C. § 403(b)(7)(A)(i)(VI) —
except as may be otherwise provided
by regulations, with respect to amounts invested in a lifetime income
investment (as defined in section 401(a)(38)(B)(ii)), the date that
is 90 days prior to the date that such lifetime income investment
may no longer be held as an investment option under the contract,
or
I.R.C. § 403(b)(7)(A)(i)(VII) —
except as may be otherwise provided
by regulations, with respect to amounts invested in a lifetime income
investment (as defined in section 401(a)(38)(B)(ii)), the date that
is 90 days prior to the date that such lifetime income investment
may no longer be held as an investment option under the contract,
or
I.R.C. § 403(b)(7)(A)(ii) —
in the case of amounts described in
clause (i)(VI), such amounts will be distributed only in the form
of a qualified distribution (as defined in section 401(a)(38)(B)(i))
or a qualified plan distribution annuity contract (as defined in section
401(a)(38)(B)(iv)).
I.R.C. § 403(b)(7)(B) Account Treated As Plan —
For purposes of this title, a custodial account which
satisfies the requirements of section 401(f)(2) shall be treated
as an organization described in section 401(a) solely for purposes of
subchapter F and subtitle F with respect to amounts received by it
(and income from investment thereof).
I.R.C. § 403(b)(7)(C) Regulated Investment Company —
For purposes of this paragraph, the term “regulated
investment company” means a domestic corporation which is a regulated
investment company within the meaning of section 851(a).
I.R.C. § 403(b)(7)(D) Employee Certification —
Employee certification. In determining whether a distribution
is upon the financial hardship of an employee, the administrator of
the plan may rely on a written certification by the employee that
the distribution is --
I.R.C. § 403(b)(7)(D)(i) —
on account of a financial need of a type
which is deemed in regulations prescribed by the Secretary to be an
immediate and heavy financial need, and
I.R.C. § 403(b)(7)(D)(ii) —
not in excess of the amount required
to satisfy such financial need, and
that the employee
has no alternative means reasonably available to satisfy such financial
need. The Secretary may provide by regulations for exceptions to the
rule of the preceding sentence in cases where the plan administrator
has actual knowledge to the contrary of the employee's certification,
and for procedures for addressing cases of employee misrepresentation.
I.R.C. § 403(b)(8) Rollover Amounts
I.R.C. § 403(b)(8)(A) General Rule —
If—
I.R.C. § 403(b)(8)(A)(i) —
any portion of the balance to the credit
of an employee in an annuity contract described in paragraph (1) is paid to him in an eligible
rollover distribution (within the meaning of section 402(c)(4)),
I.R.C. § 403(b)(8)(A)(ii) —
the employee transfers any portion
of the property he receives in such distribution to an eligible retirement
plan described in section 402(c)(8)(B),
and
I.R.C. § 403(b)(8)(A)(iii) —
in the case of a distribution of
property other than money, the property so transferred consists of
the property distributed,
then such distribution (to the extent
so transferred) shall not be includible in gross income for the taxable
year in which paid.
I.R.C. § 403(b)(8)(B) Certain Rules Made Applicable —
The rules of paragraphs (2) through (7), (9),
and (11) of section 402(c) and section 402(f) shall apply for purposes
of subparagraph (A),
except that section 402(f) shall
be applied to the payor in lieu of the plan administrator.
I.R.C. § 403(b)(9) Retirement Income Accounts Provided By Churches, Etc.
I.R.C. § 403(b)(9)(A) Amounts Paid Treated As Contributions —
For purposes of this title—
I.R.C. § 403(b)(9)(A)(i) —
a retirement income account shall be
treated as an annuity contract described in this subsection, and
I.R.C. § 403(b)(9)(A)(ii) —
amounts paid by an employer described
in paragraph (1)(A) to
a retirement income account shall be treated as amounts contributed
by the employer for an annuity contract for the employee on whose
behalf such account is maintained.
I.R.C. § 403(b)(9)(B) Retirement Income Account —
For purposes of this paragraph, the term “retirement
income account” means a defined contribution program established
or maintained by a church, or a convention or association of churches,
including an organization described in section 414(e)(3)(A), to provide
benefits under section 403(b) for
an employee described in paragraph (1) (including
an employee described in section 414(e)(3)(B)) or his beneficiaries.
I.R.C. § 403(b)(10) Distribution Requirements —
Under regulations prescribed by the Secretary, this
subsection shall not apply to any annuity contract (or to any custodial
account described in paragraph (7) or
retirement income account described in paragraph (9)) unless requirements similar
to the requirements of section 401(a)(9) and
401(a)(31)
are met (and requirements similar to the incidental death benefit
requirements of section 401(a) are
met) with respect to such annuity contract (or custodial account
or retirement income account). Any amount transferred in a direct
trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be
includible in gross income for the taxable year of the transfer.
Editor's Note: Sec. 403(b)(11) before
amendments by Pub. L. 117-328,
Div. T, is effective for plan years beginning before Dec. 31, 2023.
I.R.C. § 403(b)(11) Requirement That Distributions Not Begin Before Age 591/2, Severance
From Employment, Death, Or Disability —
This subsection shall not apply to any annuity contract
unless under such contract distributions attributable to contributions
made pursuant to a salary reduction agreement (within the meaning
of section 402(g)(3)(C))
may be paid only—
I.R.C. § 403(b)(11)(A) —
when the employee attains age 591/2, has
a severance from employment, dies, or becomes disabled (within the
meaning of section 72(m)(7)),
I.R.C. § 403(b)(11)(B) —
in the case of hardship,
I.R.C. § 403(b)(11)(C) —
for distributions to which section 72(t)(2)(G) applies, or
I.R.C. § 403(b)(11)(D) —
except as may be otherwise provided by
regulations, with respect to amounts invested in a lifetime income
investment (as defined in section 401(a)(38)(B)(ii))—
I.R.C. § 403(b)(11)(D)(i) —
on or after the date that is 90 days
prior to the date that such lifetime income investment may no longer
be held as an investment option under the contract, and
I.R.C. § 403(b)(11)(D)(ii) —
in the form of a qualified distribution
(as defined in section 401(a)(38)(B)(i)) or a qualified plan distribution
annuity contract (as defined in section 401(a)(38)(B)(iv)).
Such contract may not provide for the distribution of
any income attributable to such contributions in the case of hardship.
I.R.C. § 403(b)(11) Requirement That Distributions Not Begin Before Age 591/2, Severance
From Employment, Death, Or Disability —
This subsection shall not apply to any annuity contract
unless under such contract distributions attributable to contributions
made pursuant to a salary reduction agreement (within the meaning
of section 402(g)(3)(C))
may be paid only—
I.R.C. § 403(b)(11)(A) —
when the employee attains age 591/2, has
a severance from employment, dies, or becomes disabled (within the
meaning of section 72(m)(7)),
Editor's Note: Sec. 403(b)(11)(B), below,
before amendment by Pub. L. 117-328,
Div. T, Sec. 602(b)(2), is effective for plan years beginning before
Dec. 31, 2023
I.R.C. § 403(b)(11)(B) —
in the case of hardship,
Editor's Note: Sec. 403(b)(11)(B), below,
after amendment by Pub. L. 117-328,
Div. T, Sec. 602(b)(2), is effective for plan years beginning after
Dec. 31, 2023.
I.R.C. § 403(b)(11)(B) —
subject to the provisions of paragraph
(17), in the case of hardship,
Editor's Note: Sec. 403(b)(11)(C)-(E),
after amendment by Pub. L. 117-328,
Div. T, Sec. 334(b)(4), below, is effective for distributions made
after the date which is 3 years after Dec. 29, 2022.
I.R.C. § 403(b)(11)(C) —
for distributions to which section 72(t)(2)(G)
applies,
I.R.C. § 403(b)(11)(D) —
eexcept as may be otherwise provided
by regulations, with respect to amounts invested in a lifetime income
investment (as defined in section 401(a)(38)(B)(ii) )—
I.R.C. § 403(b)(11)(D)(i) —
on or after the date that is 90 days
prior to the date that such lifetime income investment may no longer
be held as an investment option under the contract, and
I.R.C. § 403(b)(11)(D)(ii) —
in the form of a qualified distribution
(as defined in section 401(a)(38)(B)(i)) or a qualified plan distribution
annuity contract (as defined in section 401(a)(38)(B)(iv) ), or
I.R.C. § 403(b)(11)(D)(E) —
for distributions to which section 401(a)(39)
applies.
Editor's Note: The closing text for
403(b)(11), below, before amendment by Sec. 312(b)(2) of Pub. L. 117-328, Div. T, is effective
for plan years before Jan. 1, 2024.
Such contract
may not provide for the distribution of any income attributable to
such contributions in the case of hardship. In determining whether
a distribution is upon hardship of an employee, the administrator
of the plan may rely on a written certification by the employee that
the distribution is on account of a financial need of a type which
is deemed in regulations prescribed by the Secretary to be an immediate
and heavy financial need and is not in excess of the amount required
to satisfy such financial need, and that the employee has no alternative
means reasonably available to satisfy such financial need. The Secretary
may provide by regulations for exceptions to the rule of the preceding
sentence in cases where the plan administrator has actual knowledge
to the contrary of the employee's certification, and for procedures
for addressing cases of employee misrepresentation.
Editor's Note: Sec. 312(b)(2) of Pub. L. 117-328, Div. T, added the following
closing text for Sec. 403(b)(11) effective for plan years beginning
after Dec. 31, 2023.
In determining
whether a distribution is upon hardship of an employee, the administrator
of the plan may rely on a written certification by the employee that
the distribution is on account of a financial need of a type which
is deemed in regulations prescribed by the Secretary to be an immediate
and heavy financial need and is not in excess of the amount required
to satisfy such financial need, and that the employee has no alternative
means reasonably available to satisfy such financial need. The Secretary
may provide by regulations for exceptions to the rule of the preceding
sentence in cases where the plan administrator has actual knowledge
to the contrary of the employee's certification, and for procedures
for addressing cases of employee misrepresentation.
Such contract may not provide
for the distribution of any income attributable to such contributions
in the case of hardship.
I.R.C. § 403(b)(12) Nondiscrimination requirements —
Editor's Note: Sec. 403(b)(12)(A) below,
before amendment by Sec. 110(e) of Pub.
L. 117-328, Div. T, is effective for plan years beginning
before Dec. 31, 2023.
I.R.C. § 403(b)(12)(A) In General —
For purposes of paragraph (1)(D), a plan meets the nondiscrimination
requirements of this paragraph if—
I.R.C. § 403(b)(12)(A)(i) —
with respect to contributions not made
pursuant to a salary reduction agreement, such plan meets the requirements
of paragraphs (4), (5), (17),
and (26) of section 401(a), section 401(m), and section 410(b) in the same manner as
if such plan were described in section 401(a), and
I.R.C. § 403(b)(12)(A)(ii) —
all employees of the organization
may elect to have the employer make contributions of more than $200
pursuant to a salary reduction agreement if any employee of the organization
may elect to have the organization make contributions for such contracts
pursuant to such agreement.
For purposes of clause (i), a contribution shall
be treated as not made pursuant to a salary reduction agreement if
under the agreement it is made pursuant to a 1-time irrevocable election
made by the employee at the time of initial eligibility to participate
in the agreement or is made pursuant to a similar arrangement involving
a one-time irrevocable election specified in regulations. For purposes
of clause (ii),
there may be excluded any employee who is a participant in an eligible
deferred compensation plan (within the meaning of section 457) or a qualified cash or deferred
arrangement of the organization or another annuity contract described
in this subsection. Any nonresident alien described in section 410(b)(3)(C) may also
be excluded. Subject to the conditions applicable under section 410(b)(4), there may be excluded
for purposes of this subparagraph employees who are students performing
services described in section 3121(b)(10) and
employees who normally work less than 20 hours per week. A plan shall
not fail to satisfy clause (ii) solely by reason of offering a de
minimis financial incentive (not derived from plan assets) to employees
to elect to have the employer make contributions pursuant to a salary
reduction agreement.
Editor's Note: Sec. 403(b)(12)(A), below,
after amendment by Sec. 110(e) of Pub. L.
117-328, Div. T, is effective for plan years beginning
after December 31, 2023.
I.R.C. § 403(b)(12)(12) Nondiscrimination Requirements
I.R.C. § 403(b)(12)(12)(A) In General —
For purposes of paragraph (1)(D), a plan meets the nondiscrimination
requirements of this paragraph if—
I.R.C. § 403(b)(12)(12)(A)(i) —
with respect to contributions not made
pursuant to a salary reduction agreement, such plan meets the requirements
of paragraphs (4), (5), (17),
and (26) of section 401(a), section 401(m), and section 410(b) in the same manner as
if such plan were described in section 401(a), and
I.R.C. § 403(b)(12)(12)(A)(ii) —
all employees of the organization
may elect to have the employer make contributions of more than $200
pursuant to a salary reduction agreement if any employee of the organization
may elect to have the organization make contributions for such contracts
pursuant to such agreement.
Editor's Note: Sec. 113(b) of Pub. L. 113-328, Div. T, further amended
Sec. 403(b)(12)(A) by adding the sentence at the end, applicabe with
respect to plan years beginning after the enactment date [Enacted
Dec. 29, 2022].
For purposes
of clause (i),
a contribution shall be treated as not made pursuant to a salary reduction
agreement if under the agreement it is made pursuant to a 1-time
irrevocable election made by the employee at the time of initial
eligibility to participate in the agreement or is made pursuant to
a similar arrangement involving a one-time irrevocable election specified
in regulations. For purposes of clause (ii), there may be excluded
any employee who is a participant in an eligible deferred compensation
plan (within the meaning of section 457)
or a qualified cash or deferred arrangement of the organization or
another annuity contract described in this subsection. Any nonresident
alien described in section 410(b)(3)(C)
may also be excluded. Subject to the conditions applicable under section
410(b)(4),
there may be excluded for purposes of this subparagraph employees
who are students performing services described in section 3121(b)(10) and employees
who normally work less than 20 hours per week. The fact that the employer
offers matching contributions on account of qualified student loan
payments as described in section 401(m)(13) shall not be taken into
account in determining whether the arrangement satisfies the requirements
of clause (ii) (and any regulation thereunder). A plan shall not fail
to satisfy clause (ii) solely by reason of offering a de minimis financial
incentive (not derived from plan assets) to employees to elect to
have the employer make contributions pursuant to a salary reduction
agreement.
I.R.C. § 403(b)(12)(B) Church —
For purposes of paragraph (1)(D), the term “church” has
the meaning given to such term by section 3121(w)(3)(A). Such term
shall include any qualified church-controlled organization (as defined
in section 3121(w)(3)(B)).
I.R.C. § 403(b)(12)(C) State And Local Governmental Plans —
For purposes of paragraph (1)(D), the requirements of subparagraph (A)(i) (other than those
relating to section 401(a)(17))
shall not apply to a governmental plan (within the meaning of section 414(d)) maintained by a State
or local government or political subdivision thereof (or agency or
instrumentality thereof).
I.R.C. § 403(b)(13) Trustee-To-Trustee Transfers To Purchase Permissive Service
Credit —
No amount shall be includible in gross income by reason
of a direct trustee-to-trustee transfer to a defined benefit governmental
plan (as defined in section 414(d))
if such transfer is—
I.R.C. § 403(b)(13)(A) —
for the purchase of permissive service
credit (as defined in section 415(n)(3)(A))
under such plan, or
I.R.C. § 403(b)(13)(B) —
a repayment to which section 415 does not apply by reason of
subsection (k)(3) thereof.
I.R.C. § 403(b)(14) Death Benefits Under USERRA-Qualified Active Military Service —
This subsection shall not apply to an annuity contract
unless such contract meets the requirements of section 401(a)(37).
I.R.C. § 403(b)(15) Multiple Employer Plans
I.R.C. § 403(b)(15)(A) —
IN GENERAL.—Except in the case
of a church plan, this subsection shall not be treated as failing
to apply to an annuity contract solely by reason of such contract
being purchased under a plan maintained by more than 1 employer.
I.R.C. § 403(b)(15)(B) Treatment Of Employers Failing To Meet Requirements Of Plan —
I.R.C. § 403(b)(15)(B)(i) —
IN GENERAL.—In the case of a plan
maintained by more than 1 employer, this subsection shall not be treated
as failing to apply to an annuity contract held under such plan merely
because of one or more employers failing to meet the requirements
of this subsection if such plan satisfies rules similar to the rules
of section 413(e)(2) with respect to any such employer failure.
I.R.C. § 403(b)(15)(B)(ii) —
ADDITIONAL REQUIREMENTS IN CASE OF
NON-GOVERNMENTAL PLANS.—A plan shall not be treated as meeting
the requirements of this subparagraph unless the plan satisfies rules
similar to the rules of subparagraph (A) or (B) of section 413(e)(1),
except in the case of a multiple employer plan maintained solely by
any of the following: A State, a political subdivision of a State,
or an agency or instrumentality of any one or more of the foregoing.
Editor's Note: Sec. ____ of Pub. L. 117-328, Div. T added par. (16)
effective for plan years beginning after, Dec. 31, 2023.
I.R.C. § 403(b)(15)(B)(16) Safe Harbor Deferral-Only Plans For Employers With No Retirement
Plan.
I.R.C. § 403(b)(15)(B)(16)(A) IN GENERAL —
A safe harbor deferral-only plan maintained by an eligible
employer shall be treated as meeting the requirements of paragraph
(12) .
I.R.C. § 403(b)(15)(B)(16)(A)(B) Safe Harbor Deferral-Only Plan —
For purposes of this paragraph, the term “safe
harbor deferral-only plan” means any plan which meets—
I.R.C. § 403(b)(15)(B)(16)(A)(B)(i) —
the automatic deferral requirements of
subparagraph (C) ,
I.R.C. § 403(b)(15)(B)(16)(A)(B)(ii) —
the contribution limitations of subparagraph
(D) , and
I.R.C. § 403(b)(15)(B)(16)(A)(B)(iii) —
the requirements of subparagraph (E)
of section 401(k)(13) .
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C) Automatic Deferral
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(i) —
IN GENERAL.—The requirements of
this subparagraph are met if, under the plan, each eligible employee
is treated as having elected to have the employer make elective contributions
in an amount equal to a qualified percentage of compensation.
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii) —
Election out. The election treated as
having been made under clause (i) shall cease to apply with respect
to any eligible employee if such eligible employee makes an affirmative
election—
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I) —
to not have such contributions made,
or
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(II) —
to make elective contributions at a
level specified in such affirmative election.
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D) Contribution Limitations —
In general. The requirements of this subparagraph are
met if, under the plan—
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(i) —
the automatic deferral requirements of
subparagraph (C) ,
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(ii) —
the aggregate amount of such elective
contributions which may be made with respect to any employee for any
calendar year shall not exceed $6,000.
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(iii) —
) Catch-up contributions for individuals
age 50 or over. In the case of an individual who has attained the
age of 50 before the close of the taxable year, the limitation under
clause (i)(II) shall be increased by the applicable amount determined
under section 219(b)(5)(B)(ii) (after the application of section 219(b)(5)(C)(iii)
).
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E) Eligible Employer —
For Purposes Of This Paragraph—
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i) —
In general. The term “eligible
employer” means any employer if the employer does not maintain
a qualified plan with respect to which contributions are made, or
benefits are accrued, for service in the year for which the determination
is being made. If only individuals other than employees described
in subparagraph (A) of section 410(b)(3) are eligible to participate
in such arrangement, then the preceding sentence shall be applied
without regard to any qualified plan in which only employees described
in such subparagraph are eligible to participate.
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(ii) —
Relief for acquisitions, etc. Rules
similar to the rules of section 408(p)(10) shall apply for purposes
of clause (i)
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(iii) —
Qualified plan. The term “qualified
plan” means a plan, contract, pension, account, or trust described
in subparagraph (A) or (B) of paragraph (5) of section 219(g) (determined
without regard to the last sentence of such paragraph (5))
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(F) Eligible Employee —
For purposes of this paragraph, the term “eligible
employee” means any employee of the employer other than an employee
who is permitted to be excluded under paragraph (12)(A) .
Editor's Note: Subsec. 602(a) of Pub. L. 117-328, Div. T, added par. (17)
effective for plan years beginning after Dec. 31, 2023.
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(17) Special Rules Relating To Hardship Withdrawls —
For purposes of paragraphs (7) and (11) —
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(A) Amounts which may be withdrawn. —
The following amounts may be distributed upon hardship
of the employee:
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(i) —
Contributions made pursuant to a salary
reduction agreement (within the meaning of section 3121(a)(5)(D)
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(ii) —
Qualified nonelective contributions
(as defined in section 401(m)(4)(C) ).
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(iii) —
Earnings on any contributions described
in clause (i) , (ii) , or (iii).
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(B) No Requirement To Take Available Loan —
A distribution shall not be treated as failing to be
made upon the hardship of an employee solely because the employee
does not take any available loan under the plan
I.R.C. § 403(b)(15)(B)(16)(A)(B)(C)(ii)(I)(D)(E)(i)(C) Taxability Of Beneficiary Under Nonqualified Annuities Or Under
Annuities Purchased By Exempt Organizations —
A distribution shall not be treated as failing to be
made upon the hardship of an employee solely because the employee
does not take any available loan under the plan
Premiums paid
by an employer for an annuity contract which is not subject to subsection
(a) shall be included in the gross income of the employee in accordance
with section 83 (relating to property transferred in connection with
performance of services), except that the value of such contract shall
be substituted for the fair market value of the property for purposes
of applying such section. The preceding sentence shall not apply to
that portion of the premiums paid which is excluded from gross income
under subsection (b) . In the case of any portion of any contract
which is attributable to premiums to which this subsection applies,
the amount actually paid or made available under such contract to
any beneficiary which is attributable to such premiums shall be taxable
to the beneficiary (in the year in which so paid or made available)
under section 72 (relating to annuities).
I.R.C. § 403(c) Taxability Of Beneficiary Under Nonqualified Annuities Or Under
Annuities Purchased By Exempt Organizations —
Premiums paid by an employer for an annuity contract
which is not subject to subsection (a) shall
be included in the gross income of the employee in accordance with
section 83 (relating
to property transferred in connection with performance of services),
except that the value of such contract shall be substituted for the
fair market value of the property for purposes of applying such section.
The preceding sentence shall not apply to that portion of the premiums
paid which is excluded from gross income under subsection (b). In the case of any portion of
any contract which is attributable to premiums to which this subsection
applies, the amount actually paid or made available under such contract
to any beneficiary which is attributable to such premiums shall be
taxable to the beneficiary (in the year in which so paid or made
available) under section 72
(relating to annuities).
I.R.C. § 403(D) Rules Relating To Certain Part-Time Employees
I.R.C. § 403(D)(i) In General —
In the case of employees who are eligible to participate
in the agreement solely by reason of section 202(c)(1)(B) of the Employee
Retirement Income Security Act of 1974—
I.R.C. § 403(D)(i)(I) —
notwithstanding section 401(a)(4), an
employer shall not be required to make nonelective or matching contributions
on behalf of such employees even if such contributions are made on
behalf of other employees eligible to participate in the plan, and
I.R.C. § 403(D)(i)(I)(II) —
the employer may elect to exclude such
employees from the application of subsections (a)(4), (k)(3), (k)(12),
(k)(13), and (m)(2) of section 401 and section 410(b).
(Aug. 16, 1954, ch. 736, 68A Stat. 137; Sept. 2, 1958,
Pub. L. 85-866, title I, Sec.
23(a)-(c), 72 Stat. 1620-1622; Oct. 4, 1961, Pub. L. 87-370, Sec. 3(a), 75 Stat.
801; Oct. 10, 1962, Pub. L. 87-792,
Sec. 4(d), 76 Stat. 825; Feb. 26, 1964, Pub.
L. 88-272, title II, Sec. 232(e)(4)-(6), 78 Stat. 111;
Dec. 30, 1969, Pub. L. 91-172,
title III, Sec. 321(b)(2), title V, Sec. 515(a)(2), 83 Stat. 591,
644; Sept. 2, 1974, Pub. L. 93-406,
title II, Sec. 1022(e), 2002(g)(6), 2004(c)(4), 2005(b)(2), 88 Stat.
940, 969, 986, 991; Apr. 15, 1976, Pub. L.
94-267, Sec. 1(b), 90 Stat. 366; Oct. 4, 1976, Pub. L. 94-455, title XIV, Sec. 1402(b)(1)(D),
(2), title XV, Sec. 1504(a), title XIX, Sec. 1901(a)(58), (b)(8)(A),
1906(b)(13)(A), 90 Stat. 1731, 1732, 1738, 1774, 1794, 1834; Oct.
14, 1978, Pub. L. 95-458, Sec. 4(b),
92 Stat. 1259; Nov. 6, 1978, Pub. L. 95-600,
title I, Sec. 154(a), 156(a), (b), 157(g)(2), 92 Stat. 2801, 2802,
2808; Apr. 1, 1980, Pub. L. 96-222,
title I, Sec. 101(a)(12), (13)(C), 94 Stat. 204; Aug. 13, 1981, Pub. L. 97-34, title III, Sec. 311(b)(3)(B),
95 Stat. 280; Sept. 3, 1982, Pub. L. 97-248,
title II, Sec. 251(a), (b), (c)(3), 96 Stat. 529-531; Jan. 12, 1983, Pub. L. 97-448, title I, Sec. 103(c)(8)(B),
96 Stat. 2377; Apr. 20, 1983, Pub. L. 98-21,
title I, Sec. 122(c)(4), 97 Stat. 87; July 18, 1984, Pub. L. 98-369, div. A, title IV, Sec.
491(d)(12), title V, Sec. 521(c), 522(a)(2), (3), (d)(9)-(11), title
X, Sec. 1001(b)(4), 98 Stat. 849, 867, 869-871, 1011; Oct. 22, 1986, Pub. L. 99-514, title XI, Sec. 1120(a),
(b), 1122(b)(1)(B), (d), 1123(c), title XVIII, Sec. 1852(a)(3)(A),
(B), (5)(B), (b)(10), 100 Stat. 2463, 2466, 2469, 2474, 2865, 2867;
Nov. 10, 1988, Pub. L. 100-647,
title I, Sec. 1011(c)(7)(B), (12), (m)(1), (2), title VI, Sec. 6052(a)(1),
102 Stat. 3458, 3459, 3471, 3696; Nov. 5, 1990, Pu,b. L. 101-508, title XI, Sec. 11701(k),
104 Stat. 1388-513; July 3, 1992, Pub. L.
102-318, title V, Sec. 521, 522; Aug. 20, 1996, Pub. L. 104-188, title I, Sec. 1450, 1704(t)(69),
110 Stat. 1755; Pub. L. 105-34,
title XV, XVI, Sec. 1504, 1505(c), 1601(d)(4)(A), 1601(d)(6)(B),
Aug. 5, 1997, 111 Stat 788; Pub. L. 105-206,
title VI, Sec. 6005(c)(2)(B), July 22, 1998, 112 Stat 685; Pub. L. 106-554, Sec. 314, Dec. 21,
2000, 114 Stat. 2763; Pub. L. 107-16,
Sec. 632, 641, 642, 646, 647, June 7, 2001, 115 Stat. 38; Pub. L. 107-147, Sec. 411, Mar. 9,
2002, 116 Stat. 21; Pub. L. 108-311,
title IV, Sec. 404(e), 408(a)(11), Oct. 4, 2004, 118 Stat. 1166; Pub. L. 109-135, title IV, Sec. 412(w),
Dec. 21, 2005, 119 Stat. 2577; Pub. L. 109-280,
title VIII, Sec. 827(b), 829(a), 845(b), Aug. 17, 2006, 120 Stat.
780; Pub. L. 110-245, Sec. 104(c)(2),
June 17, 2008, 122 Stat. 1624; Pub. L. 116-94,
Div. O, title I, Sec. 109(c), 111(a), Dec. 20, 2019; Pub. L. 117-328, Div. T, title I, Sec.
105(a) 106(a), Sec. 110(e), Sec. 113(b), Sec. 125(b), Sec. 128(a),
128(b), title III, Sec. 312(b)(1)-(2), Sec. 334(b), title VI, Sec.
602(a), (b), Dec. 29, 2022.)
BACKGROUND NOTES
AMENDMENTS
2022 —Subsec.
(a)(6). Pub. L. 117-328, Div.
T, Sec. 334(b)(2), amended subsec. (b) by adding new par, (6).
Subsec. (b)(7) heading. Pub. L. 117-328, Div. T, Sec. 128(b),
amended, the heading of par. (7) by striking “FOR REGULATED
INVESTMENT COMPANY STOCK”.
Subsec. (b)(7)(A). Pub. L. 117-328, Div. T, Sec. 128(a), amended,
subpar. (A) by substituting “if the amounts are to be held in
that custodial account and are invested in regulated investment company
stock or a group trust intended to satisfy the requirements of Internal
Revenue Service Revenue Ruling 81–100 (or any successor guidance)”
for “if the amounts are to be invested in regulated investment
company stock to be held in that custodial account”.
Subsec. (b)(7)(A)(i). Pub. L. 117-328, Div. T, Sec. 334(b)(3),
amended subpar. (A) by striking “or” at the end of subclause
(V), by striking ‘‘and’’ at the end of subclause
(VI) and inserting ‘‘or’’ and by adding new
subclause (VII) at the end.
Subsec. (b)(7)(A)(i)(V). Pub. L. 117-328, Div. T, Sec. 602(b)(1),
amended clause (V) by substituting ‘‘subject to the provisions
of paragraph (17)” for “in the case of contributions made
pursuant to a salary reduction agreement (within the meaning of section
3121(a)(5)(D))” .
Subsec. (b)(7)(D). Pub. L. 117-328, Div. T, Sec. 312(b)(1),
amended added subpar. (D).
Subsec. (b)(11). Pub. L. 117-328, Div. T, Sec. 312(b)(2)
amended par. (11) by adding the following flush language at the end: “In
determining whether a distribution is upon hardship of an employee,
the administrator of the plan may rely on a written certification
by the employee that the distribution is on account of a financial
need of a type which is deemed in regulations prescribed by the Secretary
to be an immediate and heavy financial need and is not in excess of
the amount required to satisfy such financial need, and that the employee
has no alternative means reasonably available to satisfy such financial
need. The Secretary may provide by regulations for exceptions to the
rule of the preceding sentence in cases where the plan administrator
has actual knowledge to the contrary of the employee's certification,
and for procedures for addressing cases of employee misrepresentation.”
at the end.
Subsec. (b)(11). Pub. L. 117-328, Div. T, Sec. 312(b)(4)
amended par. (11) by striking the period at the end of subpar. (D)
and inserting “ or”, and by inserting after subparagraph
(D) the following new subparagraph: “(E) for distributions to
which section 401(a)(39) applies.”
Subsec. (b)(11). Pub. L. 117-328, Div. T, Sec. 602(b)(2)(A)-(B)
amended par. (11) by striking “in” in subparagraph (B)
and inserting “‘subject to the provisions of paragraph
(17), in”, and (B) by striking the second sentence.
Subsec. (b)(12)(A). Pub. L. 117-328, Div. T, Sec. 110(e) added
the following at the end: “Subparagraph (A) of section 403(b)(12)
is amended by adding at the end the following: ‘‘The fact
that the employer offers matching contributions on account of qualified
student loan payments as described in section 401(m)(13) shall not
be taken into account in determining whether the arrangement satisfies
the requirements of clause (ii) (and any regulation thereunder).”
Subsec. (b)(12)(A). Pub. L. 117-328, Div. T, Sec. 113(b) amended
par. (12) by adding the flush sentence at the end.
Subsec. (b)(12)(D). Pub. L. 117-328, Div. T, Sec. 125(a)(2)
amended par. (12) by adding subpar. (D).
Subsec. (b)(15). Pub. L. 117-328, Div. T, Sec. 106(a), amended
subsec. (b) by adding par. (15).
Subsec. (b)(17). Pub. L. 117-328, Div. T, Sec. 602(a), amended
subsec. (b) by adding par. (17).
2019 -
Subsec. (b)(7)(A). Pub. L. 116-94,
Div. O, Sec. 109(c)(2), amended subpar. (A). Before amendment it read
as follows:
“(A) Amounts Paid Treated As Contributions.—For
purposes of this title, amounts paid by an employer described in paragraph
(1)(A) to a custodial account which satisfies the requirements of
section 401(f)(2) shall be treated as amounts contributed by him for
an annuity contract for his employee if—
“(i) the amounts are to be invested in regulated
investment company stock to be held in that custodial account, and
“(ii) under the custodial account no such
amounts may be paid or made available to any distributee (unless such
amount is a distribution to which section 72(t)(2)(G) applies) before
the employee dies, attains age 59-1/2, has a severance from employment,
becomes disabled (within the meaning of section 72(m)(7)), or in the
case of contributions made pursuant to a salary reduction agreement
(within the meaning of section 3121(a)(5)(D)), encounters financial
hardship.”
Subsec. (b)(9)(B). Pub.
L. 116-94, Div. O, Sec. 111(a), amended subpar. (B) by inserting ‘‘(including
an employee described in section 414(e)(3)(B))’’ after ‘‘employee
described in paragraph (1)’’.
Subsec. (b)(11)(B)-(D). Pub.
L. 116-94, Div. O, Sec. 109(c)(1), amended par. (11) by
striking “or” at the end of subpar. (B), by substituting “,
or” for the period at the end of subpar. (C), and by adding
subpar. (D).
2008 - Subsec. (b)(14). Pub. L. 110-245, Sec. 104(c)(2),
added par. (14).
2006 - Subsec. (a)(2). Pub. L. 109-280, Sec. 845(b)(1),
added par. (2).
Subsec. (a)(4)(B). Pub. L. 109-280, Sec. 829(a)(2),
amended subpar. (B) by inserting “and (11)” after “(7)”.
Subsec. (b)(2). Pub.
L. 109-280, Sec. 845(b)(2), added par. (2).
Subsec. (b)(7)(A)(ii). Pub. L. 109-280, Sec. 827(b)(2),
amended clause (ii) by inserting “(unless such amount is a distribution
to which section 72(t)(2)(G) applies)” after “distributee”.
Subsec. (b)(8)(B). Pub. L. 109-280, Sec. 829(a)(3),
amended subpar. (B) by substituting “, (9), and (11)” for “and (9)”.
Subsec. (b)(11)(A)-(C). Pub. L. 109-280, Sec. 827(b)(3),
amended par. (11) by striking “or” at the end of subpar. (A), by substituting
“, or” for the period at the end of subpar. (B), and by adding subpar.
(C).
2005 - Subsec. (b)(9)(B). Pub. L. 109-135, Sec. 412(w), amended
subpar. (B) by inserting “or” before “a convention”.
2004 - Subsec. (a)(4)(B). Pub. L. 108-311, Sec. 404(e), amended
subpar. (B). Before amendment, it read as follows:
“(B) Certain rules made applicable
“Rules similar to the
rules of paragraphs (2) through (7) of section 402(c) shall apply
for purposes of subparagraph (A).”
Subsec. (b)(7)(A)(ii). Pub. L. 108-311, Sec. 408(a)(11),
amended clause (ii) by substituting “section 3121(a)(5)(D)” for “section
3121(a)(1)(D)”.
2002 - Subsec. (b)(1). Pub. L. 107-147, Sec. 411(p)(1),
amended the matter following subpar. (E) of par. (1). Before amendment
it read as follows:
“then amounts contributed by
such employer for such annuity contract on or after such rights become
nonforfeitable shall be excluded from the gross income of the employee
for the taxable year to the extent that the aggregate of such amounts
does not exceed the applicable limit under section 415. The amount
actually distributed to any distributee under such contract shall
be taxable to the distributee (in the year in which so distributed)
under section 72 (relating to annuities). For purposes of applying
the rules of this subsection to amounts contributed by an employer
for a taxable year, amounts transferred to a contract described in
this paragraph by reason of a rollover contribution described in paragraph
(8) of this subsection or section 408(d)(3)(A)(ii) shall not be considered
contributed by such employer.”
Subsec. (b)(3). Pub.
L. 107-147, Sec. 411(p)(3), amended par. (3) by inserting
“, and which precedes the taxable year by no more than five years"
at the end of the first sentence; and 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” at the end of the second
sentence.
Subsec. (b)(6). Pub.
L. 107-147, Sec. 411(p)(2), struck par. (6). Prior to being
struck it read as follows:
“(6) Forfeitable rights which
become nonforfeitable
“For purposes of this subsection
and section 72(f) (relating to special rules for computing employees'
contributions to annuity contracts), if rights of the employee under
an annuity contract described in subparagraphs (A) and (B) of paragraph
(1) change from forfeitable to nonforfeitable rights, then the amount
(determined without regard to this subsection) includible in gross
income by reason of such change shall be treated as an amount contributed
by the employer for such annuity contract as of the time such rights
become nonforfeitable.”
2001 - Subsec. (b)(1). Pub. L. 107-16, Sec. 632(a)(2)(A),
amended par. (1) by substituting “the applicable limit under section
415” for “the exclusion allowance for such taxable year”.
Subsec. (b)(1). Pub.
L. 107-16, Sec. 642(b)(1), amended par. (1) by substituting
“section 408(d)(3)(A)(ii)” for “section 408(d)(3)(A)(iii)”.
Subsec. (b)(2). Pub.
L. 107-16, Sec. 632(a)(2)(B), struck par. (2). Before being
struck it read as follows:
“(2) Exclusion allowance
“(A) In general
“For purposes of this subsection,
the exclusion allowance for any employee for the taxable year is an
amount equal to the excess, if any, of--
“(i) the amount determined by
multiplying 20 percent of his includible compensation by the number
of years of service, over
“(ii) the aggregate of the amounts
contributed by the employer for annuity contracts and excludible from
the gross income of the employee for any prior taxable year.
“(B) Election to have allowance
determined under section 415 rules
“In the case of an employee
who makes an election under section 415(c)(4)(D) to have the provisions
of section 415(c)(4)(C) (relating to special rule for section 403(b)
contracts purchased by educational institutions, hospitals, home health
service agencies, and certain churches, etc.) apply, the exclusion
allowance for any such employee for the taxable year is the amount
which could be contributed (under section 415 without regard to section
415(c)(8)) by his employer under a plan described in section 403(a)
if the annuity contract for the benefit of such employee were treated
as a defined contribution plan maintained by the employer.
“(C) Number of years of service
for duly ordained, commissioned, or licensed ministers or lay employees
“For purposes of this subsection
and section 415(c)(4)(A)--
“(i) all years of service by--
“(I) a duly ordained, commissioned,
or licensed minister of a church, or
“(II) a lay person, as an employee
of a church, a convention or association of churches, including an
organization described in section 414(e)(3)(B)(ii), shall be considered
as years of service for 1 employer, and
“(ii) all amounts contributed
for annuity contracts by each such church (or convention or association
of churches) or such organization during such years for such minister
or lay person shall be considered to have been contributed by 1 employer.
“For purposes of the preceding
sentence, the terms “church” and “convention or association of churches"
have the same meaning as when used in section 414(e).
“(D) Alternative exclusion allowance
“(i) In general
“In the case of any individual
described in subparagraph (C), the amount determined under subparagraph
(A) shall not be less than the lesser of--
“(I) $3,000, or
“(II) the includible compensation
of such individual.
“(ii) Subparagraph not to apply
to individuals with adjusted gross income over $17,000
“This subparagraph shall not
apply with respect to any taxable year to any individual whose adjusted
gross income for such taxable year (determined separately and without
regard to any community property laws) exceeds $17,000.
“(iii) Special rule for foreign
missionaries
“In the case of an individual
described in subparagraph (C)(i) performing services outside the United
States, there shall be included as includible compensation for any
year under clause (i)(II) any amount contributed during such year
by a church (or convention or association of churches) for an annuity
contract with respect to such individual.”
Subsec. (b)(3). Pub.
L. 107-16, Sec. 632(a)(2)(C), amended par. (3) by inserting
“or any amount received by a former employee after the fifth taxable
year following the taxable year in which such employee was terminated"
before the period at the end of the second sentence.
Subsec. (b)(7)(A)(ii). Pub. L. 107-16, Sec. 646(a)(2)(A),
amended clause (ii) by substituting “has a severance from employment"
from “separates from service”.
Subsec. (b)(8)(A)(ii). Pub. L. 107-16, Sec. 641(b)(1),
amended clause (ii) by substituting “such distribution to an eligible
retirement plan described in section 402(c)(8)(B)” for “such distribution
to an individual retirement plan or to an annuity contract described
in paragraph (1), and”.
Subsec. (b)(8)(B). Pub.
L. 107-16, Sec. 641(e)(7), amended subpar. (B). Before amendment
it read as follows:
“(B) Certain rules made applicable.--
“Rules similar to the rules
of paragraphs (2) through (7) of section 402(c) (including paragraph
(4)(C) thereof) shall apply for purposes of subparagraph (A).”
Subsec. (b)(11). Pub. L. 107-16, Sec. 646(a)(2)(B),
amended the heading of par. (11) by substituting “severance from employment"
for “separation from service”.
Subsec. (b)(11)(A). Pub. L. 107-16, Sec. 646(a)(2)(A),
amended subpar. (A) by substituting “has a severance from employment"
for “separates from service”.
Subsec. (b)(13). Pub.
L. 107-16, Sec. 647(a), added par. (13).
2000 - Subsec. (b)(3)(B). Pub. L. 106-554, Sec. 314(e)(1),
amended subpar. (B) by substituting “section 125, 132(f)(4), or"
for “section 125 or”.
1998 - Subsec. (b)(8)(B). Pub. L. 105-206, Sec. 6005(c)(2)(B),
amended subpar. (B) by inserting “(including paragraph (4)(C) thereof)"
after “section 402(c)”.
1997 - Subsec. (b)(1)(A). Pub. L. 105-34, Sec. 1601(d)(6)(B) amended
subpar. (A) by striking “or” at the end of clause (i); by inserting
“or” at the end of clause (ii); and by adding clause (iii).
Subsec. (b)(3). Pub.
L. 105-34, Sec. 1504(a)(1) amended par. (3) by adding “Such
term includes” and the material following at the end.
Subsec. (b)(12)(C). Pub.
L. 105-34, Sec. 1505(c), added subpar. (C).
1996 - Subsec. (b)(1)(E). Pub. L. 104-188 amended subpar. (E). Before
amendment, subpar. (E) read as follows:
“(E) in the case of a contract
purchased under a plan which provides a salary reduction agreement,
the plan meets the requirements of section 401(a)(30)”.
1992 - Subsec. (a)(4)(A)(i). Pub. L. 102-318, Sec. 521(b)(12)(A),
amended clause (i) by inserting “in an eligible rollover distribution
(within the meaning of section 402(c)(4))” before the comma at the
end.
Subsec. (a)(4)(B). Pub. L. 102-318, Sec. 521(b)(12)(B),
amended subpar. (B). Before amendment, it read as follows:
“Rules similar to the rules
of subparagraphs (B) through (G) of section 402(a)(5) and of paragraphs
(6) and (7) of section 402(a) shall apply for purposes of subparagraph
(A).”
Subsec.(a)(5). Pub.
L. 102-318, Sec. 522(c)(2), added par. (5).
Subsec. (b)(8)(A)(i). Pub. L. 102-318, Sec. 521(b)(13),
amended clause (i) by inserting “in an eligible rollover distribution
(within the meaning of section 402(c)(4))” before the comma at the
end.
Subsec. (b)(8)(B)-(D). Pub. L. 102-318, Sec. 521(b)(13)(B),
struck subpar. (B)-(D) and added a new subpar. (B). Before being struck,
subpar. (B)-(D) read as follows:
“(B) Special rules for partial
distributions
“(i) In general
“In the case of any distribution
other than a total distribution, rules similar to the rules of clauses
(i) and (ii) of section 402(a)(5)(D) shall apply.
“(ii) Total distribution
“For purposes of subparagraph
(A), the term “total distribution” means one or more distributions
from an annuity contract described in paragraph (1) which would constitute
a lump-sum distribution within the meaning of section 402(e)(4)(A)
(determined without regard to subparagraphs (B) and (H) of section
402(e)(4)) if such annuity contract were described in subsection (a),
or 1 or more distributions of accumulated deductible employee contributions
(within the meaning of section 72(o)(5)).
“(C) Certain rules made applicable
“Rules similar to the rules
of subparagraphs (B), (C), and (F)(i) of section 402(a)(5) and of
paragraphs (6) and (7) of section 402(a) shall apply for purposes
of subparagraph (A).
“(D) Required distributions
not eligible for rollover treatment
“Subparagraph (A) shall not
apply to any distribution to the extent such distribution is required
under paragraph (10).”
Subsec. (b)(10). Pub.
L. 102-318, Sec. 522(a)(3), amended par. (10) by substituting
“section 401(a)(9) and 401(a)(31)” for “section 401(a)(9)”.
Subsec. (b)(10). Pub.
L. 102-318, Sec. 522(c)(3), amended par. (10) by adding
a new sentence at the end.
1990 - Subsec. (b)(12)(A). Pub. L. 101-508 inserted ‘involving a one-time
irrevocable election’ after ‘similar arrangement’ in second sentence.
1988 - Subsec. (b)(1)(D). Pub. L. 100-647, Sec. 1011(m)(1)(B),
substituted ‘paragraph (12)’ for ‘paragraph (10)’.
Subsec. (b)(1)(E). Pub. L. 100-647, Sec. 1011(c)(7)(B),
added subpar. (E).
Subsec. (b)(10). Pub. L. 100-647, Sec. 1011(m)(1)(A),
redesignated par. (10), relating to nondiscrimination requirements,
as (12).
Subsec. (b)(12). Pub. L. 100-647, Sec. 1011(m)(1)(A),
redesignated par. (10), relating to nondiscrimination requirements,
as (12).
Subsec. (b)(12)(A). Pub. L. 100-647, Sec. 1011(m)(2),
inserted ‘(17),’ after ‘paragraphs (4), (5),’ and ‘, section 401(m),’
after ‘of section 401(a)’ in cl. (i).
Pub. L. 100-647,
Sec. 1011(c)(12), inserted after cl. (ii) ‘For purposes
of clause (i), a contribution shall be treated as not made pursuant
to a salary reduction agreement if under the agreement it is made
pursuant to a 1-time irrevocable election made by the employee at
the time of initial eligibility to participate in the agreement or
is made pursuant to a similar arrangement specified in regulations.’
Pub. L. 100-647,
Sec. 6052(a)(1), amended last sentence generally. Prior
to amendment, last sentence read as follows: ‘For purposes of this
subparagraph, students who normally work less than 20 hours per week
may (subject to the conditions applicable under section 410(b)(4))
be excluded.’
1986 - Subsec. (a)(1). Pub. L. 99-514, Sec. 1122(d)(1),
substituted ‘Distributee taxable under section 72’ for ‘General rule’
in heading and amended par. (1) generally. Prior to amendment, par.
(1) read as follows: ‘Except as provided in paragraph (2), if an annuity
contract is purchased by an employer for an employee under a plan
which meets the requirements of section 404(a)(2) (whether or not
the employer deducts the amounts paid for the contract under such
section), the employee shall include in his gross income the amounts
received under such contract for the year received as provided in
section 72 (relating to annuities).’
Subsec. (a)(2). Pub. L. 99-514, Sec. 1122(b)(1)(B),
struck out par. (2) which read as follows:
‘(A) General rule
‘If -
‘(i) an annuity contract is
purchased by an employer for an employee under a plan described in
paragraph (1);
‘(ii) such plan requires that
refunds of contributions with respect to annuity contracts purchased
under such plan be used to reduce subsequent premiums on the contracts
under the plan; and
‘(iii) a lump sum distribution
(as defined in section 402(e)(4)(A)) is paid to the recipient, so
much of the total taxable amount (as defined in section 402(e)(4)(D))
of such distribution as is equal to the product of such total taxable
amount multiplied by the fraction described in section 402(a)(2) shall
be treated as a gain from the sale or exchange of a capital asset
held for more than 6 months. For purposes of this paragraph, in the
case of an individual who is an employee without regard to section
401(c)(1), determination of whether or not any distribution is a lump
sum distribution shall be made without regard to the requirement that
an election be made under subsection (e)(4)(B) of section 402, but
no distribution to any taxpayer other than an individual, estate,
or trust may be treated as a lump sum distribution under this paragraph.
‘(B) Cross reference
‘For imposition of separate tax on ordinary income
portion of lump sum distribution, see section 402(e).’
Subsec. (a)(4)(B). Pub. L. 99-514, Sec. 1852(a)(5)(B)(i),
substituted ‘through (G)’ for ‘through (F)’.
Subsec. (b)(1). Pub.
L. 99-514, Sec. 1122(d)(2), amended second sentence generally.
Prior to amendment, second sentence read as follows: ‘The employee
shall include in his gross income the amounts received under such
contract for the year received as provided in section 72 (relating
to annuities)’.
Subsec. (b)(1)(D). Pub.
L. 99-514, Sec. 1120(a), added subpar. (D).
Subsec. (b)(7)(A)(ii). Pub. L. 99-514, Sec. 1123(c)(2),
inserted ‘in the case of contributions made pursuant to a salary reduction
agreement (within the meaning of section 3121(a)(1)(D)),’ after ‘section
72(m)(7)), or’.
Subsec. (b)(7)(D). Pub. L. 99-514, Sec. 1852(a)(3)(B),
struck out subpar. (D) ‘Distribution requirements’ which read as follows:
‘For purposes of determining when the interest of an employee in a
custodial account must be distributed, such account shall be treated
in the same manner as an annuity contract.’
Subsec. (b)(8)(C). Pub. L. 99-514, Sec. 1852(b)(10),
inserted ‘and’ before ‘(F)(i)’.
Subsec. (b)(8)(D). Pub. L. 99-514, Sec. 1852(a)(5)(B)(ii),
added subpar. (D).
Subsec. (b)(10). Pub.
L. 99-514, Sec. 1120(b), added par. (10) relating to nondiscrimination
requirements.
Pub. L.
99-514, Sec. 1852(a)(3)(A), added par. (10) relating to
distribution requirements.
Subsec. (b)(11). Pub.
L. 99-514, Sec. 1123(c)(1), added par. (11).
Subsec. (c). Pub.
L. 99-514, Sec. 1122(d)(3), amended last sentence generally.
Prior to amendment, last sentence read as follows: ‘The amount actually
paid or made available to any beneficiary under such contract shall
be taxable to him in the year in which so paid or made available under
section 72 (relating to annuities).’
1984 - Subsec. (a)(2)(A). Pub. L. 98-369, Sec. 1001(b)(4),
substituted ‘6 months’ for ‘1 year’.
Subsec. (a)(4)(A)(i). Pub. L. 98-369, Sec. 522(a)(2),
substituted ‘any portion of the balance to the credit of an employee
in an employee annuity described in paragraph (1) is paid to him,’
for ‘the balance to the credit of an employee in an employee annuity
described in paragraph (1) is paid to him in a qualifying rollover
distribution.’
Subsec. (a)(4)(B). Pub.
L. 98-369, Sec. 522(d)(9), substituted ‘(B) through (F)’
for ‘(B) through (E)’.
Subsec. (b)(1). Pub.
L. 98-369, Sec. 491(d)(12), struck out ‘or 409(b)(3)(C)’
after ‘408(d)(3)(A)(iii)’.
Subsec. (b)(7)(D). Pub.
L. 98-369, Sec. 521(c), added subpar. (D).
Subsec. (b)(8)(A)(i). Pub. L. 98-369, Sec. 522(a)(3),
substituted ‘any portion of the balance to the credit of an employee
in an annuity contract described in paragraph (1) is paid to him’
for ‘the balance to the credit of an employee is paid to him in a
qualifying distribution’.
Subsec. (b)(8)(B). Pub. L. 98-369, Sec. 522(d)(10),
substituted provisions relating to special rules for partial distributions
for provisions relating to definition of qualifying distributions.
Subsec. (b)(8)(C). Pub. L. 98-369, Sec. 522(d)(11),
substituted ‘(F)(i)’ for ‘(D)(v), and (E)(i)’.
1983 - Subsec. (b)(3). Pub. L. 98-21 substituted ‘section 911’ for
‘sections 105(d) and 911’.
Subsec. (b)(8)(C). Pub.
L. 97-448 substituted ‘subparagraphs (B), (C), (D)(v), and
(E)(i) of section 402(a)(5)’ for ‘subparagraphs (B), (C), and (E)(i)
of section 402(a)(5)’.
1982 - Subsec. (b)(2)(B). Pub. L. 97-248, Sec. 251(a)(1),
(c)(3), substituted ‘home health service agencies, and certain churches,
etc.’ for ‘and home health service agencies’, and ‘(under section
415 without regard to section 415(c)(8))’ for ‘(under section 415)’.
Subsec. (b)(2)(C), (D). Pub. L. 97-248, Sec. 251(a)(2),
added subpars. (C) and (D).
Subsec. (b)(9). Pub.
L. 97-248, Sec. 251(b), added par. (9).
1981 - Subsec. (b)(8)(B)(i). Pub. L. 97-34 inserted ‘, or 1 or more distributions
of accumulated deductible employee contributions (within the meaning
of section 72(o)(5))’ after ‘subsection (a)’.
1980 - Subsec. (b). Pub. L. 96-222 substituted in par. (1) ‘409(b)(3)(C)’
for ‘409(d)(3)(C)’, and in par. (7)(A) ‘which satisfies’ for ‘which
satisfied’.
1978 - Subsec. (a)(4). Pub. L. 95-600, Sec. 157(g)(2),
in subpar. (B) substituted ‘paragraphs (6) and (7)’ for ‘paragraph
(6)’.
Pub. L. 95-458,
among other changes, substituted provision permitting tax free treatment
for any portion of a lump sum distribution from a qualified retirement
plan which is deposited in an individual retirement account or another
qualifying plan for provision which required transfer of all such
property received.
Subsec. (a)(5). Pub. L.
95-458 struck out par. (5) which related to special rules
concerning time of termination of a profit-sharing plan and the treatment
of the sale of a corporate subsidiary or assets as payment or distribution
on account of termination of a plan of which an annuity trust was
a part.
Subsec. (b)(1). Pub.
L. 95-600, Sec. 156(b), inserted provision relating to application
of rules of this subsection to amounts contributed by an employer
for a taxable year.
Subsec. (b)(7)(A). Pub.
L. 95-600, Sec. 154(a), struck out ‘the amounts are paid
to provide a retirement benefit for that employee and are to be invested
in regulated investment company stock to be held in that custodial
account’ after ‘contract for his employee if’, and added cls. (i)
and (ii).
Subsec. (b)(8). Pub.
L. 95-600, Sec. 156(a), added par. (8).
1976 - Subsec. (a)(2)(A). Pub. L. 94-455, Sec. 1402(b)(2),
provided that ‘9 months’ would be changed to ‘1 year’.
Pub. L. 94-455,
Sec. 1402(b) (1)(D), provided that ‘6 months’ would be changed
to ‘9 months’ for taxable years beginning in 1977.
Subsec. (a)(4). Pub.
L. 94-455, Sec. 1901(a)(58), reenacted provisions following
subpar. (C) without substantive change.
Pub. L. 94-267,
Sec. 1(b)(2), substituted ‘a payment’ for ‘the lump-sum
distribution’.
Subsec. (a)(4)(A). Pub.
L. 94-267, Sec. 1(b)(1), restructured provisions by adding
cl. (i) and designating existing provision as cl. (ii).
Subsec. (a)(5). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out ‘or his delegate’ after ‘Secretary’ wherever appearing.
Pub. L. 94-267,
Sec. 1(b)(3), added par. (5).
Subsec. (b)(1)(A)(ii). Pub. L. 94-455, Sec. 1901(b)(8)(A),
substituted ‘educational organization described in section 170(b)(1)(A)(ii)’
for ‘educational institution (as defined in section 151(e)(4))’.
Subsec. (b)(4)(B). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (b)(7)(C). Pub.
L. 94-455, Sec. 1504(a), struck out ‘, and which issues
only redeemable stock’ after ‘regulated investment company within
the meaning of section 851(a)’.
1974 - Subsec. (a)(2). Pub. L. 93-406, Sec. 2005(b)(2),
substituted ‘a lump sum distribution (as defined in section 4002(e)(4)(A))
is paid to the recipient’ for ‘the total amounts payable by reason
of an employee's death or other separation from the service, or by
reason of the death of an employee after the employee's separation
from the service, are paid to the payee within one taxable year of
the payee' as cl. (iii) of subpar. (A), substituted ‘so much of the
total taxable amount (as defined in section 402(e)(4)(D)) of such
distribution as is equal to the product of such total taxable amount
multiplied by the fraction described in section 402(a)(2) shall be
treated as a gain from the sale or exchange of a capital asset held
for more than 6 months. For purposes of this paragraph, in the case
of an individual who is an employee without regard to section 401(c)(1),
determination of whether or not any distribution is a lump sum distribution
shall be made without regard to the requirement that an election be
made under subsection (e)(4)(B) of section 402, but no distribution
to any taxpayer other than an individual, estate, or trust may be
treated as a lump sum distribution under this paragraph’ for ‘then
the amount of such payments, to the extent exceeding the amount contributed
by the employee (determined by applying section 72(f)), which employee
contributions shall be reduced by any amounts theretofore paid to
him which were not includible in gross income, shall be considered
a gain from the sale or exchange of a capital asset held for more
than 6 months. This subparagraph shall not apply to amounts paid to
any payee to the extent such amounts are attributable to contributions
made on behalf of the employee while he was an employee within the
meaning of section 401(c)(1)’ following cl. (iii) of subpar. (A),
substituted provisions setting out a cross reference to section 402(e)
for provisions defining ‘total amounts’ as subpar. (B), and struck
out subpar. (C) setting out limitations on capital gains treatment.
Subsec. (a)(4). Pub.
L. 93-406, Sec. 2002(g)(6), added par. (4).
Subsec. (b)(2). Pub.
L. 93-406, Sec. 2004(c)(4), designated existing provisions
as subpar. (A) and added subpar. (B).
Subsec. (b)(7). Pub.
L. 93-406, Sec. 1022(e), added par. (7).
1969 - Subsec. (a)(2)(C). Pub. L. 91-172, Sec. 515(a)(2),
added subpar. (C).
Subsec. (c). Pub.
L. 91-172, Sec. 321(b)(2), consolidated provisions of subsec.
(c) providing for taxability of beneficiary under a nonqualified annuity,
the employees gross income to include amount contributed by employer
for annuity contract in the year in which amount is contributed, the
amount to be included as provided in section 72 of this title and
of subsec. (d) providing for taxability of beneficiary under certain
forfeitable contracts purchased by exempt organizations, including
farmers' cooperatives, the gross income to include amount contributed
by employer after Dec. 31, 1957, in the year of change from forfeitable
to nonforfeitable rights, the new provisions including premiums paid
by an employer in accordance with section 83, except that value of
the contract shall be substituted for fair market value of the property
for purposes of applying such section 83, such provision not to be
applicable to that portion of premiums paid which is excluded from
gross income under subsec. (b) of this section.
Subsec. (d). Pub.
L. 91-172, Sec. 321(b)(2), struck out subsec. (d) providing
for taxability of beneficiary under certain forfeitable contracts
purchased by exempt organizations, including farmers' cooperatives,
gross income of the employee to include (amount contributed by employer
after Dec. 31, 1957), in year of change from forfeitable to nonforfeitable
rights. See subsec. (c) of this section.
1964 - Subsecs. (a)(1), (b)(1),
(c). Pub. L. 88-272, Sec. 232(e)(4)-(6),
struck out ‘except that section 72(e)(3) shall not apply’ after ‘(relating
to annuities)’.
1962 - Subsec. (a)(2)(A). Pub. L. 87-792, Sec. 4(d)(1), (2),
substituted ‘described in paragraph (1)’ for ‘which meets the requirements
of section 401(a)(3), (4), (5), and (6)’ in cl. (i), and inserted
sentence at end thereof providing that this subparagraph shall not
apply to amounts paid to any payee to the extent such amounts are
attributable to contributions made on behalf of the employee while
he was an employee within the meaning of section 401(c)(1).
Subsec. (a)(3). Pub.
L. 87-792, Sec. 4(d)(3), added par. (3).
1961 - Subsec. (b). Pub. L. 87-370, Sec. 3(a)(3), inserted
‘or public school’ in heading.
Subsec. (b)(1)(A). Pub.
L. 87-370, Sec. 3(a)(1), included annuity contracts purchased
for an employee, other than one described in clause (i) of this subpar.,
who performs services for an educational institution, as defined in
section 151(e)(4) of this title, by an employer which is a State,
a political subdivision of a State, or an agency or instrumentality
of either.
Subsec. (b)(3). Pub. L.
87-370, Sec. (3)(a)(2), substituted ‘the employer described
in paragraph (1)(A)’ for ‘the employer described in section 501(c)(3)
and exempt from tax under section 501(a)’.
1958 - Subsec. (a)(1). Pub. L. 85-866, Sec. 23(b), substituted
‘which meets the requirements of section 404(a)(2) (whether or not
the employer deducts the amounts paid for the contract under such
section),’ for ‘with respect to which the employer's contribution
is deductible under section 404(a)(2), or if an annuity contract is
purchased for an employee by an employer described in section 501(c)(3)
which is exempt from tax under section 501(a),'.
Subsecs. (b) to (d). Pub.
L. 85-866, Sec. 23(a), added subsec. (b), redesignated former
subsec. (b) as (c), and added subsec. (d).
EFFECTIVE DATE OF 2022 AMENDMENTS
Amendment by Sec. 105(a)
of Pub. L. 117-328, Div. T, applicable
to plan years beginning after December 31, 2022.
Amendment by Sec. 106(a)
of Pub. L. 117-328, Div. T, applicable
to plan years beginning after December 31, 2022.
Amendment
by Sec. 110(e) of Pub. L. 117-328, Div. T, applicable to
contributions made for plan years beginning after December 31, 2023.
Amendment
by Sec. 113(b) of Pub. L. 117-328, Div. T, applicable with
respect to plan years beginning after the date of enactment of this
Act [Enacted Dec. 29, 2022].
Amendments
by Sec.125(a) of Pub. L. 117-328, Div. T, applicable to
plan years beginning after Dec. 31, 2024.
Amendments by Sec. 128(a)
of Pub. L. 117-328, Div. T, applicable
to amounts invested after the date of enactment of this Act [Enacted
Dec. 29, 2022].
Amendments by 312(b) of Pub. L. 117-328, Div. T, is effective for
plan years beginning after the date of enactment of this Act [Enacted:
December 29, 2022].
Amendments by Sec. 334(b)
of Pub. L. 117-328, Div. T, applicable
to distributions made after the date which is 3 years after the date
of enactment of this Act [Enacted: Dec. 29, 2022].
Amendments by Sec. 602(a),
(b) of Pub. L. 117-328, Div. T,
applicable to plan years beginning after December 31, 2023.
EFFECTIVE
DATE OF 2019 AMENDMENTS
Amendments
by Sec. 109(c) of Pub. L. 116-94,
Div. O, effective for plan years beginning after December 31, 2019.
Amendment by Sec. 111(a) of Pub.
L. 116-94, Div. O, effective for years beginning before,
on, or after the date of the enactment of this Act [Enacted: Dec.
20, 2019].
EFFECTIVE
DATE OF 2008 AMENDMENT
Amendment
by Sec. 104(c)(1) of Pub. L. 110-245 effective
with respect to deaths and disabilities occurring on or after January
1, 2007. Sec. 104(d)(2) of Pub. L. 110-245 provided
that:
“(2)
PROVISIONS RELATING TO PLAN AMENDMENTS-
“
(A) IN GENERAL- If this subparagraph applies to any plan or contract
amendment, such plan or contract shall be treated as being operated
in accordance with the terms of the plan during the period described
in subparagraph (B)(iii).
“(B)
AMENDMENTS TO WHICH SUBPARAGRAPH (A) APPLIES-
“(i)
IN GENERAL- Subparagraph (A) shall apply to any amendment to any plan
or annuity contract which is made—
“(I)
pursuant to the amendments made by subsection (a) or pursuant to any
regulation issued by the Secretary of the Treasury under subsection
(a), 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 clause shall be applied by substituting ‘2012’ for ‘2010’
in subclause (II).
“(ii)
CONDITIONS- This paragraph shall not apply to any amendment unless—
“(I)
the plan or contract is operated as if such plan or contract amendment
were in effect for the period described in clause (iii), and
“(II)
such plan or contract amendment applies retroactively for such period.
“(iii)
PERIOD DESCRIBED- The period described in this clause is the period—
“(I)
beginning on the effective date specified by the plan, and
“(II)
ending on the date described in clause (i)(II) (or, if earlier, the
date the plan or contract amendment is adopted).”
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendments by Sec. 827(b) of Pub. L. 109-280 applicable to distributions
after September 11, 2001. Section 827(c)(2) of Pub.
L. 109-280 provided that:
“(2) WAIVER OF LIMITATIONS- If refund or credit
of any overpayment of tax resulting from the amendments made
by this section is prevented at any time before the close of
the 1-year period beginning on the date of the enactment of this
Act by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or allowed
if claim therefor is filed before the close of such period.”
Amendments by Sec. 829(a) of Pub. L. 109-280 applicable to distributions
after December 31, 2006.
Amendments by Sec. 845(b) of Pub. L. 109-280 applicable to distributions
in taxable years beginning after December 31, 2006.
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Sec. 412(w) of Pub.
L. 109-135 applicable on the date of the enactment of this
Act [Enacted: Dec. 21, 2005].
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendment by Sec. 404(e) of Pub.
L. 108-311 applicable as if included in the provisions of
the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16, Sec. 641] to which it
relates [effective: distributions after 2001].
Amendment by Sec. 408(a)(11) of Pub. L. 108-311 applicable on the date
of the enactment of this Act [Enacted: Oct. 4, 2004].
EFFECTIVE DATE OF 2002 AMENDMENTS
Amendments by Sec. 411(p) of Pub. L. 107-147 applicable as if included
in the provisions of the Economic Growth and Tax Relief Reconciliation
Act of 2001 [Pub. L. 107-16, Sec. 632]
to which they relate.
EFFECTIVE DATE OF 2001 AMENDMENTS
Amendments by Sec. 632(a)(2) of Pub. L. 107-16 applicable to years beginning
after December 31, 2001.
Amendment by Sec. 641 of Pub.
L. 107-16 applicable to distributions after December 31,
2001.
Amendment by Sec. 642(b) of Pub.
L. 107-16 applicable to distributions after December 31,
2001.
Amendments by Sec. 646 of Pub.
L. 107-16 applicable to distributions after December 31,
2001.
Amendment by Sec. 647 of Pub.
L. 107-16 applicable to trustee-to-trustee transfers after
December 31, 2001.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358, provided that:
“(a) IN GENERAL.--All provisions of, and amendments
made by, this Act shall not apply--
“(1) to taxable, plan, or limitation
years beginning after December 31, 2010, or
“(2) in the case of title V,
to estates of decedents dying, gifts made, or generation skipping
transfers, after December 31, 2010.
“(b) APPLICATION OF CERTAIN LAWS.--The Internal
Revenue Code of 1986 and the Employee Retirement Income Security Act
of 1974 shall be applied and administered to years, estates, gifts,
and transfers described in subsection (a) as if the provisions and
amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.-Subsection (a) shall not apply
to section 803 (relating to no federal income tax on restitution received
by victims of the Nazi regime or their heirs or estates).”
RULE OF CONSTRUCTION
Pub.
L. 117-328, Div. T, Sec. 106(h)(2) provided the rule of
construction:
“RULE OF CONSTRUCTION.—Nothing
in the amendments made by subsection (a) shall be construed as limiting
the authority of the Secretary of the Treasury or the Secretary's
delegate (determined without regard to such amendment) to provide
for the proper treatment of a failure to meet any requirement applicable
under the Internal Revenue Code of 1986 with respect to one employer
(and its employees) in the case of a plan to which section 403(b)(15)
of the Internal Revenue Code of 1986 applies.”
PENSIONS AND INDIVIDUAL RETIREMENT ARRANGEMENT
PROVISIONS OF ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF
2001 MADE PERMANENT
Section 811 of Pub. L.
109-280 provided that:
“Title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 [Pub. L. 107-16]
shall not apply to the provisions of, and amendments made by, subtitles
A through F [Sections 601-666] of title VI of such Act (relating to
pension and individual retirement arrangement provisions).”
EFFECTIVE DATE OF 2000 AMENDMENTS
Amendment by Sec. 314(e)(1) of Pub. L. 106-554 applicable as if included
in the provisions of the Taxpayer Relief Act of 1997 to which it
relates [taxable years beginning after 1997].
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendment by Sec. 6005(c)(2)(B) of Pub. L. 105-206 applicable to distributions
after December 31, 1998.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 1504(a)(1) of Pub. L. 105-34 applicable to years beginning
after December 31, 1997.
Amendment by Sec. 1505(c) of Pub.
L. 105-34 applicable to taxable years beginning on or after
the date of enactment of this Act [Aug. 5, 1997]. Sec. 1505(d)(2),
as amended by Pub. L. 105-206, Sec.
6015(b), and Pub. L.
109-280, Sec. 861(a)(2), provided the following special
rule:
“(2) Treatment for years beginning before date
of enactment.--A governmental plan (within the meaning of section 414(d) of the Internal Revenue Code of
1986) shall be treated as satisfying the requirements of sections
401(a)(3), 401(a)(4), 401(a)(26), 401(k), 401(m), 403 (b)(1)(D) and
(b)(12)(A)(i), and 410 of such Code for all taxable years beginning
before the date of enactment of this Act [Aug. 5, 1997].”
Note that the amendment of Sec. 1505(d)(2) by Pub. L. 109-280, Sec. 861(a)(2) [striking
“maintained by a State or local government or political subdivision
thereof (or agency or instrumentality thereof)"] is effective for
any year beginning at the date of the enactment of Pub. L. 109-280 [Enacted: Aug. 17, 2006].
Amendments by Sec. 1601(d)(6) of Pub. L. 105-34 effective as if included
in the provisions of the Small Business Job Protection Act of 1996
to which they relate.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L.
104-188 effective for taxable years beginning after December
31, 1995, except a contract shall not be required to meet any change
in any requirement by reason of such amendment before the 90th day
after the date of the enactment of this Act [Aug. 20, 1996].
EFFECTIVE DATE OF 1992 AMENDMENTS
Amendment by section 521 of Pub.
L. 102-318 effective for distributions after December 31,
1992. Sec. 521(e)(2) of Pub. L. 102-318 provided
the following special rule:
“(2) Special Rule for Partial Distributions.-For
purposes of section 402(a)(5)(D)(i)(II)
of the Internal Revenue Codeof 1986 (as in effect before
the amendments made by this section), a distribution before January
1, 1993, which is made before or at the same time as a series of periodic
payments shall not be treated as one of such series if it is not substantially
equal in amount to other payments in such series.
Amendment by section 522 of Pub.
L. 102-318 effective for distributions after December 31,
1992. Sec. 522(d)(2) of Pub. L. 102-318 provided
the following transition rule:
“(2) Transition Rule for Certain Annuity Contracts.-If,
as of July 1, 1992, a State law prohibits a direct trustee-to-trustee
transfer from an annuity contract described in section 403(b) of the Internal Revenue Code of
1986 which was purchased for an employee by an employer which is a
State or a political subdivision thereof (or an agency or instrumentality
of any 1 or more of either), the amendments made by this section shall
not apply to distributions before the earlier of-
“(A) 90 days after the first day after July 1,
1992, on which such transfer is allowed under State law, or
“(B) January 1, 1994.”
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L.
101-508 effective, except as otherwise provided, as if included
in the provision of the Revenue Reconciliation Act of 1989, Pub. L. 101-239, title VII, to which such
amendment relates, see section 11701(n) of Pub.
L. 101-508, set out as a note under section 42 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1011(c)(7)(B) of Pub. L. 100-647 applicable to plan years
beginning after Dec. 31, 1987, with exception in case of a plan described
in section 1105(c)(2) of Pub. L. 99-514,
see section 1011(c)(7)(E) of Pub. L. 100-647,
set out as a note under section 401 of this title.
Amendment by section 1011(c)(12), (m)(1), (2) of Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which
such amendment relates, see section 1019(a) of Pub.
L. 100-647, set out as a note under section 1 of this title.
Section 6052(a)(2) of Pub.
L. 100-647 provided that: ‘The amendment made by paragraph
(1) (amending this section) shall take effect as if included in the
amendment made by section 1120(b) of the Reform Act (Pub. L. 99-514).'
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1120(c) of Pub.
L. 99-514, as amended by Pub.
L. 100-647, title I, Sec. 1011(m)(3), Nov. 10, 1988, 102
Stat. 3471, provided that:
‘(1) In general. - Except as provided in paragraph
(2), the amendments made by this section (amending this section) shall
apply to years beginning after December 31, 1988.
‘(2) Collective bargaining agreements. - In the
case of a plan maintained pursuant to 1 or more collective bargaining
agreements between employee representatives and 1 or more employers
ratified before March 1, 1986, the amendments made by this section
shall not apply to plan years beginning before the earlier of -
‘(A) January 1, 1991, or
‘(B) the later of -
‘(i) January 1, 1989, or
‘(ii) the date on which the
last of such collective bargaining agreements terminates (determined
without regard to any extension thereof after February 28, 1986).’
Amendment by section 1122(b)(1)(B), (d) of Pub. L. 99-514 applicable, except as otherwise
provided, to amounts distributed after Dec. 31, 1986, in taxable years
ending after such date, see section 1122(h) of Pub.
L. 99-514, set out as a note under section 402 of this title.
Amendment by section 1123(c) of Pub. L. 99-514 applicable to years beginning
after Dec. 31, 1988, but only with respect to distributions from contracts
described in subsec. (b) of this section which are attributable to
assets other than assets held as of the close of the last year beginning
before Jan. 1, 1989, with certain exceptions and transition rule,
see section 1123(e) of Pub. L. 99-514,
as amended, set out as a note under section 72 of this title.
Section 1852(a)(3)(C) of Pub.
L. 99-514 provided that: ‘The amendments made by this paragraph
(amending this section) shall apply to benefits accruing after December
31, 1986, in taxable years ending after such date.’
Amendment by section 1852(a)(5)(B), (b)(10) of Pub. L. 99-514 effective, except as otherwise
provided, as if included in the provisions of the Tax Reform Act of
1984, Pub. L. 98-369, div. A, to
which such amendment relates, see section 1881 of Pub. L. 99-514, set out as a note under
section 48 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 491(d)(12) of Pub. L. 98-369 applicable to obligations
issued after Dec. 31, 1983, see section 491(f)(1) of Pub. L. 98-369, set out as a note under
section 62 of this title.
Amendment by section 521(c) of Pub. L. 98-369 applicable to years beginning
after Dec. 31, 1984, see section 521(e) of Pub.
L. 98-369, set out as a note under section 401 of this title.
Amendment by section 522 of Pub.
L. 98-369 applicable to distributions made after July 18,
1984, in taxable years ending after that date, see section 522(e)
of Pub. L. 98-369, set out as a
note under section 402 of this title.
Amendment by section 1001(b)(4) of Pub. L. 98-369 applicable to property acquired
after June 22, 1984, and before Jan. 1, 1988, see section 1001(e)
of Pub. L. 98-369, set out as a
note under section 166 of this title.
EFFECTIVE DATE OF 1983 AMENDMENTS
Amendment by Pub. L. 98-21 applicable
to taxable years beginning after Dec. 31, 1983, except that if an
individual's annuity starting date was deferred under section 105(d)(6)
of this title as in effect on the day before Apr. 20, 1983, such deferral
shall end on the first day of such individual's first taxable year
beginning after Dec. 31, 1983, see section 122(d) of Pub. L. 98-21, set out as a note under section
22 of this title.
Amendment by Pub. L. 97-448 effective,
except as otherwise provided, as if it had been included in the provision
of the Economic Recovery Tax Act of 1981, Pub.
L. 97-34, to which such amendment relates, see section 109
of Pub. L. 97-448, set out as a
note under section 1 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Section 251(e) of Pub.
L. 97-248, as amended by Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, and Pub. L. 114-113, Div. Q, Sec. 336(b)(1),
provided that:
‘(1) In general. - Except as provided in this subsection,
the amendments made by this section (amending this section and section
415 of this title, and enacting a provision set out as a note below)
shall apply to taxable years beginning after December 31, 1981.
‘(2) Retirement income accounts. - The amendments
made by subsection (b) (amending this section) shall apply to taxable
years beginning after December 31, 1974.
‘(3) Section 415 amendments. - The amendments made
by subsection (c) (amending section 415 of this title) shall apply
to years beginning after December 31, 1981.
‘(4) Correction period. - The amendment made by
subsection (d) (enacting provisions set out below) shall take effect
on July 1, 1982.
‘(5) Special rule for existing defined benefit
arrangements. - Any defined benefit arrangement which is established
by a church or a convention or association of churches (including
an organization described in section
414(e)(3)(B)(ii) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954)) and which is in effect
on the date of the enactment of this Act (Sept. 3, 1982) shall not
be treated as failing to meet the requirements of section 403(b) of
such Code merely because it is a defined benefit arrangement, and
shall be subject to the applicable limitations of section 415(b) of
such Code as if it were a defined benefit plan under section 401(a)
of such Code (and not to the limitations of section 415(c) of such
Code).'
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable
to taxable years beginning after Dec. 31, 1981, see section 311(i)(1)
of Pub. L. 97-34, set out as a note
under section 219 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-222 effective,
except as otherwise provided, as if it had been included in the provisions
of the Revenue Act of 1978, Pub. L. 95-600,
to which such amendment relates, see section 201 of Pub. L. 96-222, set out as a note under
section 32 of this title.
EFFECTIVE DATE OF 1978 AMENDMENTS
Section 154(b) of Pub.
L. 95-600 provided that: ‘The amendment made by this section
(amending this section) shall apply to taxable years beginning after
December 31, 1978.’
Section 156(d) of Pub.
L. 95-600, as amended by Pub. L.
96-222, title I, Sec. 101(a)(13)(A), Apr. 1, 1980, 94 Stat.
204, provided that: ‘The amendments made by this section (amending
this section and sections 219, 220, 408, 409, 2039, and 4973) shall
apply to distributions or transfers made after December 31, 1977,
in taxable years beginning after such date.’
Amendment by section 157(g)(2) of Pub. L. 95-600 applicable to lump-sum distributions
completed after Dec. 31, 1978, in taxable years ending after such
date, see section 157(g)(4) of Pub. L. 95-600,
set out as a note under section 402 of this title.
Amendment by Pub. L. 95-458 applicable
with respect to taxable years beginning after Dec. 31, 1974, see section
4(d) of Pub. L. 95-458, set out
as a note under section 402 of this title.
EFFECTIVE DATE OF 1976 AMENDMENTS
Section 1402(b)(1) of Pub.
L. 94-455 provided that the amendment made by that section
is effective with respect to taxable years beginning in 1977.
Section 1402(b)(2) of Pub.
L. 94-455 provided that the amendment made by that section
is effective with respect to taxable years beginning after Dec. 31,
1977.
Section 1504(b) of Pub.
L. 94-455 provided that: ‘The amendment made by this section
(amending this section) shall apply to taxable years beginning after
December 31, 1975.’
Amendment by section 1901(a)(58), (b)(8)(A) of Pub. L. 94-455 effective for taxable years
beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as a note under
section 2 of this title.
Amendment by Pub. L. 94-267 applicable
with respect to payments made to an employee on or after July 4, 1974,
see section 1(e) of Pub. L. 94-267,
set out as a note under section 401 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Section 1022(e) of Pub.
L. 93-406 provided that the amendment made by that section
is effective Jan. 1, 1974.
Amendment by section 2002(g)(6) of Pub. L. 93-406 applicable on and after Sept.
2, 1974, with respect to contributions to an employees' trust described
in section 401(a) which is exempt from tax under section 501(a) or
an annuity plan described in section 403(a), see section 2002(i)(3)
of Pub. L. 93-406, set out as a
note under section 402 of this title.
Amendment by section 2004(c)(4) of Pub. L. 93-406 applicable to years beginning
after Dec. 31, 1975, see section 2004(d) of Pub.
L. 93-406, set out as an Effective Date; Transition Provisions
note under section 415 of this title.
Amendment by section 2005(b)(2) of Pub. L. 93-406 applicable only with respect
to distributions or payments made after Dec. 31, 1973, in taxable
years beginning after Dec. 31, 1973, see section 2005(d) of Pub. L. 93-406, set out as a note under
section 402 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 321(b)(2) of Pub. L. 91-172 applicable with respect to
contributions made and premiums paid after Aug. 1, 1969, see section
321(d) of Pub. L. 91-172, set out
as an Effective Date note under section 83 of this title.
Amendment by section 515(a)(2) of Pub. L. 91-172 applicable to taxable years
ending after Dec. 31, 1969, see section 515(d) of Pub. L. 91-172, set out as a note under
section 402 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272 applicable
to taxable years beginning after Dec. 31, 1963, see section 232(g)
of Pub. L. 88-272, set out as a
note under section 5 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by Pub. L. 87-792 applicable
to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a note under
section 22 of this title.
EFFECTIVE DATE OF 1961 AMENDMENT
Section 3(b) of Pub. L.
87-370 provided that: ‘The amendments made by subsection
(a) (amending this section) shall apply with respect to taxable years
beginning after December 31, 1957.’
EFFECTIVE DATES OF 1958 AMENDMENT
Section 23(g) of Pub.
L. 85-866 provided that: ‘The amendments made by subsections
(a), (b), (c), and (d) (amending this section and section 101 of this
title) shall apply with respect to taxable years beginning after December
31, 1957. The amendments made by subsection (e) (amending section
2039 of this title) shall apply with respect to estates of decedents
dying after December 31, 1957. The amendments made by subsection (f)
(amending section 2517 of this title) shall apply with respect to
calendar years after 1957.’
REGULATIONS RELATING TO
EMPLOYER FAILURE TO MEET MULTIPLE EMPLOYER PLAN REQUIREMENTS.—
Sec. 106(e) of Pub. L. 117-328, Div. T, provided that:
“ (e) The Secretary
of the Treasury (or the Secretary's delegate) shall prescribe
such regulations as may be necessary to clarify, in the case of plans
to which section 403(b)(15) of the Internal Revenue Code of 1986 applies,
the treatment of an employer departing such plan in connection with
such employer's failure to meet multiple employer plan requirements.”
MODIFICATION OF MODEL
PLAN LANGUAGE, ETC.—
Sec. 106(f) of Pub. L. 117-328, Div. T, provided that:
“(1) PLAN NOTIFICATIONS.—The
Secretary of the Treasury (or the Secretary's delegate), in
consultation with the Secretary of Labor, shall modify the model plan
language published under section 413(e)(5) of the Internal Revenue
Code of 1986 to include language that requires participating employers
be notified that the plan is subject to the Employee Retirement Income
Security Act of 1974 and that such employer is a plan sponsor with
respect to its employees participating in the multiple employer plan
and, as such, has certain fiduciary duties with respect to the plan
and to its employees.
“(2) MODEL PLANS FOR
MULTIPLE EMPLOYER 403(b) PLANS.— For plans to which section
403(b)(15)(A) of the Internal Revenue Code of 1986 applies (other
than a plan maintained for its employees by a State, a political subdivision
of a State, or an agency or instrumentality of any one or more of
the foregoing), the Secretary of the Treasury (or the Secretary's
delegate), in consultation with the Secretary of Labor, shall publish
model plan language similar to model plan language published under
section 413(e)(5) of such Code.
“(3) EDUCATIONAL OUTREACH
TO EMPLOYERS EXEMPT FROM TAX.—The Secretary of the Treasury
(or the Secretary's delegate), in consultation with the Secretary
of Labor, shall provide education and outreach to increase awareness
to employers described in section 501(c)(3) of the Internal Revenue
Code of 1986, and which are exempt from tax under section 501(a) of
such Code, that multiple employer plans are subject to the Employee
Retirement Income Security Act of 1974 and that such employer is a
plan sponsor with respect to its employees participating in the multiple
employer plan and, as such, has certain fiduciary duties with respect
to the plan and to its employees.”
NO INFERENCE WITH RESPECT
TO CHURCH PLANS.—
Sec. 106(g) of Pub. L. 117-328, Div. T, further added:
“(g) NO INFERENCE WITH
RESPECT TO CHURCH PLANS.—
Regarding any application
of section 403(b) of the Internal Revenue Code of 1986 to an annuity
contract purchased under a church plan (as defined in section 414(e)
of such Code) maintained by more than 1 employer, or to any application
of rules similar to section 413(e) of such Code to such a plan, no
inference shall be made from section 403(b)(15)(A) of such Code (as
added by this Act) not applying to such plans.”
ELIMINATING A PENALTY
ON PARTIAL ANNUITIZATION.
Sec. 204(a)-(b) of Pub. L. 117-328, Div. T, provided:
“ELIMINATING A PENALTY
ON PARTIAL ANNUITIZATION.—
“(a) Secretary of the
Treasury (or the Secretary's delegate) shall amend the regulations
under section 401(a)(9) of the Internal Revenue Code of 1986 to provide
that if an employee's benefit is in the form of an individual
account under a defined contribution plan, the plan may allow the
employee to elect to have the amount required to be distributed from
such account under such section for a year to be calculated as the
excess of the total required amount for such year over the annuity
amount for such year.
DEFINITIONS.—
“For purposes of this
section—
“(1) TOTAL REQUIRED
AMOUNT.—The term ‘‘total required amount’’,
with respect to a year, means the amount which would be required to
be distributed under Treas. Reg. section 1.401(a)(9)–5 (or any
successor regulation) for the year, determined by treating the account
balance as of the last valuation date in the immediately preceding
calendar year as including the value on that date of all annuity contracts
which were purchased with a portion of the account and from which
payments are made in accordance with Treas. Reg. section 1.401(a)(9)–6.
“(2) ANNUITY AMOUNT.—The
term ‘‘annuity amount’’, with respect to a
year, is the total amount distributed in the year from all annuity
contracts described in paragraph (1).”
Sec. 204(c)-(d) of Pub. L. 117-328, Div. T, further provided:
“(c) CONFORMING REGULATORY
AMENDMENTS.—The Secretary of the Treasury (or the Secretary's
delegate) shall amend the regulations under sections 403(b)(10), 408(a)(6),
408(b)(3), and 457(d)(2) of the Internal Revenue Code of 1986 to conform
to the amendments described in subsection (a). Such conforming amendments
shall treat all individual retirement plans (as defined in section
7701(a)(37) of such Code) which an individual holds as the owner,
or which an individual holds as a beneficiary of the same decedent,
as one such plan for purposes of the amendments described in subsection
(a). Such conforming amendments shall also treat all contracts described
in section 403(b) of such Code which an individual holds as an employee,
or which an individual holds as a beneficiary of the same decedent,
as one such contract for such purposes.
“(d) EFFECTIVE DATE.—The
modifications and amendments required under subsections (a) and (c)
shall be deemed to have been made as of the date of the enactment
of this Act, and as of such date—
“(1) all applicable
laws shall be applied in all respects as though the actions which
the Secretary of the Treasury (or the Secretary's delegate)
is required to take under such subsections had been taken, and
“(2) until such time
as such actions are taken, taxpayers may rely upon their reasonable
good faith interpretations of this section.”
REGULATORY AUTHORITY
Section 110(g) of Pub. L. 117-328, Div. T, provided the following
authority:
“(g) REGULATORY
AUTHORITY.—
“The Secretary
of the Treasury (or such Secretary's delegate) shall prescribe
regulations for purposes of implementing the amendments made by this
section, including regulations—
“ (1) permitting
a plan to make matching contributions for qualified student loan payments,
as defined in sections 401(m)(4)(D) and 408(p)(2)(F) of the Internal
Revenue Code of 1986, as added by this section, at a different frequency
than matching contributions are otherwise made under the plan, provided
that the frequency is not less than annually;
“(2) permitting
employers to establish reasonable procedures to claim matching contributions
for such qualified student loan payments under the plan, including
an annual deadline (not earlier than 3 months after the close of each
plan year) by which a claim must be made; and
“ (3) promulgating
model amendments which plans may adopt to implement matching contributions
on such qualified student loan payments for purposes of sections 401(m),
408(p), 403(b), and 457(b) of the Internal Revenue Code of 1986.”
TREATMENT OF CUSTODIAL
ACCOUNTS ON TERMINATION OF SECTION 403(b) PLANS
Section 110 of Pub. L. 116-94, Div. O, provided that:
Not later than six months after the date of enactment
of this Act, the Secretary of the Treasury shall issue guidance to
provide that, if an employer terminates the plan under which amounts
are contributed to a custodial account under subparagraph (A) of section
403(b)(7), the plan administrator or custodian may distribute an individual
custodial account in kind to a participant or beneficiary of the plan
and the distributed custodial account shall be maintained by the custodian
on a tax-deferred basis as a section 403(b)(7) custodial account,
similar to the treatment of fully-paid individual annuity contracts
under Revenue Ruling 2011–7,
until amounts are actually paid to the participant or beneficiary.
The guidance shall provide further (i) that the section 403(b)(7)
status of the distributed custodial account is generally maintained
if the custodial account thereafter adheres to the requirements of
section 403(b) that are in effect at the time of the distribution
of the account and (ii) that a custodial account would not be considered
distributed to the participant or beneficiary if the employer has
any material retained rights under the account (but the employer would
not be treated as retaining material rights simply because the custodial
account was originally opened under a group contract). Such guidance
shall be retroactively effective for taxable years beginning after
December 31, 2008.
SPECIAL DISASTER-RELATED
RULES FOR USE OF RETIREMENT FUNDS
Section 202 of Pub. L. 116-94, Div. Q, provided:
“SEC. 202. SPECIAL
DISASTER-RELATED RULES FOR USE OF RETIREMENT FUNDS.
“(a) TAX-FAVORED WITHDRAWALS
FROM RETIREMENT PLANS.—
“(1) IN GENERAL.—Section 72(t) of the Internal Revenue Code of
1986 shall not apply to any qualified disaster distribution.
“(2) AGGREGATE DOLLAR
LIMITATION.—
“(A) IN GENERAL.—For
purposes of this subsection, the aggregate amount of distributions
received by an individual which may be treated as qualified disaster
distributions for any taxable year shall not exceed the excess (if
any) of—
“(i) $100,000, over
“(ii) the aggregate
amounts treated as qualified disaster distributions received by such
individual for all prior taxable years.
“(B) TREATMENT OF
PLAN DISTRIBUTIONS.—If a distribution to an individual would
(without regard to subparagraph (A)) be a qualified disaster distribution,
a plan shall not be treated as violating any requirement of the Internal
Revenue Code of 1986 merely because the plan treats such distribution
as a qualified disaster distribution, unless the aggregate amount
of such distributions from all plans maintained by the employer (and
any member of any controlled group which includes the employer) to
such individual exceeds $100,000.
“(C) CONTROLLED GROUP.—For
purposes of subparagraph (B), the term ‘‘controlled group’’
means any group treated as a single employer under subsection (b),
(c), (m), or (o) of section 414 of the
Internal Revenue Code of 1986.
“(D) SPECIAL RULE
FOR INDIVIDUALS AFFECTED BY MORE THAN ONE DISASTER.—The limitation
of subparagraph (A) shall be applied separately with respect to distributions
made with respect to each qualified disaster.
“(3) AMOUNT DISTRIBUTED
MAY BE REPAID.—
“(A) IN GENERAL.—Any
individual who receives a qualified disaster distribution may, at
any time during the 3-year period beginning on the day after the date
on which such distribution was received, make 1 or more contributions
in an aggregate amount not to exceed the amount of such distribution
to an eligible retirement plan of which such individual is a beneficiary
and to which a rollover contribution of such distribution could be
made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16),
of the Internal Revenue Code of 1986, as the case may be.
“(B) TREATMENT OF
REPAYMENTS OF DISTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
IRAS.—For purposes of the Internal Revenue Code of 1986, if
a contribution is made pursuant to subparagraph (A) with respect to
a qualified disaster distribution from an eligible retirement plan
other than an individual retirement plan, then the taxpayer shall,
to the extent of the amount of the contribution, be treated as having
received the qualified disaster distribution in an eligible rollover
distribution (as defined in section 402(c)(4) of such Code) and as
having transferred the amount to the eligible retirement plan in a
direct trustee to trustee transfer within 60 days of the distribution.
“(C) TREATMENT OF
REPAYMENTS OF DISTRIBUTIONS FROM IRAS.—For purposes of the Internal
Revenue Code of 1986, if a contribution is made pursuant to subparagraph
(A) with respect to a qualified disaster distribution from an individual
retirement plan (as defined by section 7701(a)(37) of such Code),
then, to the extent of the amount of the contribution, the qualified
disaster distribution shall be treated as a distribution described
in section 408(d)(3) of such Code and as having been transferred to
the eligible retirement plan in a direct trustee to trustee transfer
within 60 days of the distribution.
“(4) DEFINITIONS.—For
purposes of this subsection—
“(A) QUALIFIED DISASTER
DISTRIBUTION.—Except as provided in paragraph (2), the term ‘‘qualified
disaster distribution’’ means any distribution from an
eligible retirement plan made—
“(i) on or after the
first day of the incident period of a qualified disaster and before
the date which is 180 days after the date of the enactment of this
Act, and
“(ii) to an individual
whose principal place of abode at any time during the incident period
of such qualified disaster is located in the qualified disaster area
with respect to such qualified disaster and who has sustained an economic
loss by reason of such qualified disaster.
“(B) ELIGIBLE RETIREMENT
PLAN.—The term ‘‘eligible retirement plan’’
shall have the meaning given such term by section 402(c)(8)(B) of the Internal Revenue
Code of 1986.
“(5) INCOME INCLUSION
SPREAD OVER 3-YEAR PERIOD.—
“(A) IN GENERAL.—In
the case of any qualified disaster distribution, unless the taxpayer
elects not to have this paragraph apply for any taxable year, any
amount required to be included in gross income for such taxable year
shall be so included ratably over the 3-taxable year period beginning
with such taxable year.
“(B) SPECIAL RULE.—For
purposes of subparagraph (A), rules similar to the rules of subparagraph
(E) of section 408A(d)(3) of the
Internal Revenue Code of 1986 shall apply.
“(6) SPECIAL RULES.—
“(A) EXEMPTION OF
DISTRIBUTIONS FROM TRUSTEE TO TRUSTEE TRANSFER AND WITHHOLDING RULES.—For
purposes of sections 401(a)(31), 402(f), and 3405
of the Internal Revenue Code of 1986, qualified disaster
distributions shall not be treated as eligible rollover distributions.
“(B) QUALIFIED DISASTER
DISTRIBUTIONS TREATED AS MEETING PLAN DISTRIBUTION REQUIREMENTS.—For
purposes the Internal Revenue Code of 1986, a qualified disaster distribution
shall be treated as meeting the requirements of sections 401(k)(2)(B)(i),
403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of such Code.
“(b) RECONTRIBUTIONS
OF WITHDRAWALS FOR HOME PURCHASES.—
“(1) RECONTRIBUTIONS.—
“(A) IN GENERAL.—Any
individual who received a qualified distribution may, during the applicable
period, make 1 or more contributions in an aggregate amount not to
exceed the amount of such qualified distribution to an eligible retirement
plan (as defined in section 402(c)(8)(B)
of the Internal Revenue Codeof 1986) of which such individual
is a beneficiary and to which a rollover contribution of such distribution
could be made under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3),
of such Code, as the case may be.
“(B) TREATMENT OF
REPAYMENTS.—Rules similar to the rules of subparagraphs (B)
and (C) of subsection (a)(3) shall apply for purposes of this subsection.
“(2) QUALIFIED DISTRIBUTION.—For
purposes of this subsection, the term ‘‘qualified distribution’’
means any distribution—
“(A) described in
section 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only to the extent
such distribution relates to financial hardship), 403(b)(11)(B), or
72(t)(2)(F), of the Internal Revenue Code of 1986,
“(B) which was to
be used to purchase or construct a principal residence in a qualified
disaster area, but which was not so used on account of the qualified
disaster with respect to such area, and
“(C) which was received
during the period beginning on the date which is 180 days before the
first day of the incident period of such qualified disaster and ending
on the date which is 30 days after the last day of such incident period.
“(3) APPLICABLE PERIOD.—For
purposes of this subsection, the term ‘‘applicable period’’
means, in the case of a principal residence in a qualified disaster
area with respect to any qualified disaster, the period beginning
on the first day of the incident period of such qualified disaster
and ending on the date which is 180 days after the date of the enactment
of this Act.
“(c) LOANS FROM QUALIFIED
PLANS.—
“(1) INCREASE IN LIMIT
ON LOANS NOT TREATED AS DISTRIBUTIONS.—In the case of any loan
from a qualified employer plan (as defined under section 72(p)(4) of the Internal Revenue Code of
1986) to a qualified individual made during the 180-day period beginning
on the date of the enactment of this Act—
“(A) clause (i) of
section 72(p)(2)(A) of such Code shall be applied by substituting ‘‘$100,000’’
for ‘‘$50,000’’, and
“(B) clause (ii) of
such section shall be applied by substituting ‘‘the present
value of the nonforfeitable accrued benefit of the employee under
the plan’’ for ‘‘one-half of the present value
of the nonforfeitable accrued benefit of the employee under the plan’’.
“(2) DELAY OF REPAYMENT.—In
the case of a qualified individual (with respect to any qualified
disaster) with an outstanding loan (on or after the first day of the
incident period of such qualified disaster) from a qualified employer
plan (as defined in section 72(p)(4)
of the Internal Revenue Codeof 1986)—
“(A) if the due date
pursuant to subparagraph (B) or (C) of section 72(p)(2) of such Code
for any repayment with respect to such loan occurs during the period
beginning on the first day of the incident period of such qualified
disaster and ending on the date which is 180 days after the last day
of such incident period, such due date shall be delayed for 1 year
(or, if later, until the date which is 180 days after the date of
the enactment of this Act),
“(B) any subsequent
repayments with respect to any such loan shall be appropriately adjusted
to reflect the delay in the due date under subparagraph (A) and any
interest accruing during such delay, and
“(C) in determining
the 5-year period and the term of a loan under subparagraph (B) or
(C) of section 72(p)(2) of such Code, the period described in subparagraph
(A) of this paragraph shall be disregarded.
“(3) QUALIFIED INDIVIDUAL.—For
purposes of this subsection, the term ‘‘qualified individual’’
means any individual—
“(A) whose principal
place of abode at any time during the incident period of any qualified
disaster is located in the qualified disaster area with respect to
such qualified disaster, and
“(B) who has sustained
an economic loss by reason of such qualified disaster.
“(d) PROVISIONS RELATING
TO PLAN AMENDMENTS.—
“(1) IN GENERAL.—If
this subsection applies to any amendment to any plan or annuity contract,
such plan or contract shall be treated as being operated in accordance
with the terms of the plan during the period described in paragraph
(2)(B)(i).
“(2) AMENDMENTS TO
WHICH SUBSECTION APPLIES.—
“(A) IN GENERAL.—This
subsection shall apply to any amendment to any plan or annuity contract
which is made—
“(i) pursuant to any
provision of this section, or pursuant to any regulation issued by
the Secretary or the Secretary of Labor under any provision of this
section, and
“(ii) on or before
the last day of the first plan year beginning on or after January
1, 2020, or such later date as the Secretary may prescribe.
“In the case of a
governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986), clause (ii)
shall be applied by substituting the date which is 2 years after the
date otherwise applied under clause (ii).
“(B) CONDITIONS.—This
subsection shall 24 not apply to any amendment unless—
“(i) during the period—
“(I) beginning on
the date that this section or the regulation described in subparagraph
(A)(i) takes effect (or in the case of a plan or contract amendment
not required by this section or such regulation, the effective date
specified by the plan), and
“(II) 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.”
RELIEF FOR 2016 DISASTER
AREAS
Section 11028 of Pub. L. 115-97 provided that:
“(a) IN GENERAL.—For
purposes of this section, the term ‘2016 disaster area’
means any area with respect to which a major disaster has been declared
by the President under section 401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act during calendar year 2016.
“(b) SPECIAL RULES
FOR USE OF RETIREMENT FUNDS WITH RESPECT TO AREAS DAMAGED BY 2016
DISASTERS.—
“(1) TAX-FAVORED WITHDRAWALS
FROM RETIREMENT PLANS.—
“(A) IN GENERAL.—Section 72(t) of the Internal Revenue Code of
1986 shall not apply to any qualified 2016 disaster distribution.
“(B) AGGREGATE DOLLAR
LIMITATION.—
“(i) IN GENERAL.—For
purposes of this subsection, the aggregate amount of distributions
received by an individual which may be treated as qualified 2016 disaster
distributions for any taxable year shall not exceed the excess (if
any) of—
“(I) $100,000, over
(II) the aggregate amounts treated as qualified 2016 disaster distributions
received by such individual for all prior taxable years.
“(ii) TREATMENT OF
PLAN DISTRIBUTIONS.—If a distribution to an individual would
(without regard to clause (i)) be a qualified 2016 disaster distribution,
a plan shall not be treated as violating any requirement of this title
merely because the plan treats such disttribution as a qualified 2016
disaster distribution, unless the aggregate amount of such distributions
from all plans maintained by the employer (and any member of any controlled
group which includes the employer) to such individual exceeds $100,000.
“(iii) CONTROLLED
GROUP.—For purposes of clause (ii), the term ‘controlled
group’ means any group treated as a single employer under subsection
(b), (c), (m), or (o) of section 414 of
the Internal Revenue Codeof 1986.
“(C) AMOUNT DISTRIBUTED
MAY BE REPAID.—
“(i) IN GENERAL.—Any
individual who receives a qualified 2016 disaster distribution may,
at any time during the 3-year period beginning on the day after the
date on which such distribution was received, make one or more contributions
in an aggregate amount not to exceed the amount of such distribution
to an eligible retirement plan of which such individual is a beneficiary
and to which a rollover contribution of such distribution could be
made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of the Internal Revenue Code of
1986, as the case may be.
“(ii) TREATMENT OF
REPAYMENTS OF DISTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
IRAS.— For purposes of the Internal Revenue Code of 1986, if
a contribution is made pursuant to clause (i) with respect to a qualified
2016 disaster distribution from an eligible retirement plan other
than an individual retirement plan, then the taxpayer shall, to the
extent of the amount of the contribution, be treated as having received
the qualified 2016 disaster distribution in an eligible rollover distribution
(as defined in section 402(c)(4)
of the Internal Revenue Code of 1986) and as having transferred
the amount to the eligible retirement plan in a direct trustee to
trustee transfer within 60 days of the distribution.
“(iii) TREATMENT OF
REPAYMENTS FOR DISTRIBUTIONS FROM IRAS.—For purposes of the
Internal Revenue Code of 1986, if a contribution is made pursuant
to clause (i) with respect to a qualified 2016 disaster distribution
from an individual retirement plan (as defined by section 7701(a)(37) of the Internal Revenue
Code of 1986), then, to the extent of the amount of the
contribution, the qualified 2016 disaster distribution shall be treated
as a distribution described in section 408(d)(3) of such Code and
as having been transferred to the eligible retirement plan in a direct
trustee to trustee transfer within 60 days of the distribution.
“(D) DEFINITIONS.—For
purposes of this paragraph—
“(i) QUALIFIED 2016
DISASTER DISTRIBUTION.—Except as provided in subparagraph (B),
the term ‘‘qualified 2016 disaster distribution’’
means any distribution from an eligible retirement plan made on or
after January 1, 2016, and before January 1, 2018, to an individual
whose principal place of abode at any time during calendar year 2016
was located in a disaster area described in subsection (a) and who
has sustained an economic loss by reason of the events giving rise
to the Presidential declaration described in subsection (a) which
was applicable to such area.
“(ii) ELIGIBLE RETIREMENT
PLAN.—The term ‘eligible retirement plan’ shall
have the meaning given such term by section
402(c)(8)(B) of the Internal Revenue Code of 1986.
“(E) INCOME INCLUSION
SPREAD OVER 3-YEAR PERIOD.—
“(i) IN GENERAL.—In
the case of any qualified 2016 disaster distribution, unless the taxpayer
elects not to have this subparagraph apply for any taxable year, any
amount required to be included in gross income for such taxable year
shall be so included ratably over the 3-taxable-year period beginning
with such taxable year.
“(ii) SPECIAL RULE.—For
purposes of clause (i), rules similar to the rules of subparagraph
(E) of section 408A(d)(3) of the
Internal Revenue Code of 1986 shall apply.
“(F) SPECIAL RULES.—
“(i) EXEMPTION OF
DISTRIBUTIONS FROM TRUSTEE TO TRUSTEE TRANSFER AND WITHHOLDING RULES.—For
purposes of sections 401(a)(31), 402(f), and 3405
of the Internal Revenue Code of 1986, qualified 2016 disaster
distribution shall not be treated as eligible rollover distributions.
“(ii) QUALIFIED 2016
DISASTER DISTRIBUTIONS TREATED AS MEETING PLAN DISTRIBUTION REQUIREMENTS.—For
purposes of the Internal Revenue Code of 1986, a qualified 2016 disaster
distribution shall be treated as meeting the requirements of sections
401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of the Internal Revenue Code of
1986. (2) PROVISIONS RELATING TO PLAN AMENDMENTS.—
“(A) IN GENERAL.—If
this paragraph applies to any amendment to any plan or annuity contract,
such plan or contract shall be treated as being operated in accordance
with the terms of the plan during the period described in subparagraph
(B)(ii)(I).
“(B) AMENDMENTS TO
WHICH SUBSECTION APPLIES.—
“(i) IN GENERAL.—This
paragraph shall apply to any amendment to any plan or annuity contract
which is made—
“(I) pursuant to any
provision of this section, or pursuant to any regulation under any
provision of this section, and
“(II) on or before
the last day of the first plan year beginning on or after January
1, 2018, or such later date as the Secretary prescribes. In the case
of a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986), subclause
(II) shall be applied by substituting the date which is 2 years after
the date otherwise applied under subclause (II).
“(ii) CONDITIONS.—This
paragraph shall not apply to any amendment to a plan or contract unless
such amendment applies retroactively for such period, and shall not
apply to any such amendment unless the plan or contract is operated
as if such amendment were in effect during the period—
“(I) beginning on
the date that this section or the regulation described in clause (i)(I)
takes effect (or in the case of a plan or contract amendment not required
by this section or such regulation, the effective date specified by
the plan), and
“(II) ending on the
date described in clause (i)(II) (or, if earlier, the date the plan
or contract amendment is adopted).
“(c) SPECIAL RULES
FOR PERSONAL CASUALTY LOSSES RELATED TO 2016 MAJOR DISASTER.—
“(1) IN GENERAL.—If
an individual has a net disaster loss for any taxable year beginning
after December 31, 2015, and before January 1, 2018—
“(A) the amount determined
under section 165(h)(2)(A)(ii)
of the Internal Revenue Code of 1986 shall be equal to
the sum of—
“(i) such net disaster
loss, and
“(ii) so much of the
excess referred to in the matter preceding clause (i) of section 165(h)(2)(A)
of such Code (reduced by the amount in clause (i) of this subparagraph)
as exceeds 10 percent of the adjusted gross income of the individual,
“(B) section 165(h)(1)
of such Code shall be applied by substituting ‘$500’ for ‘$500
($100 for taxable years beginning after December 31, 2009)’,
“(C) the standard
deduction determined under section 63(c) of such Code shall be increased
by the net disaster loss,
“(D) section 56(b)(1)(E)
of such Code shall not apply to so much of the standard deduction
as is attributable to the increase under subparagraph (C) of this
paragraph.
“(2) NET DISASTER
LOSS.—For purposes of this subsection, the term ‘net disaster
loss’ means the excess of qualified disaster-related personal
casualty losses over personal casualty gains (as defined in section 165(h)(3)(A) of the Internal Revenue
Code of 1986).
“(3) QUALIFIED DISASTER-RELATED
PERSONAL CASUALTY LOSSES.—For purposes of this paragraph, the
term ‘qualified disaster-related personal casualty losses’
means losses described in section
165(c)(3) of the Internal Revenue Code of 1986 which arise
in a disaster area described in subsection (a) on or after January
1, 2016, and which are attributable to the events giving rise to the
Presidential declaration described in subsection (a) which was applicable
to such area.”
TAX-FAVORED WITHDRAWALS
FROM RETIREMENT PLANS
Section 502(a) of Pub. L. 115-63 provided:
“ (1) IN GENERAL .--Section 72(t) of the Internal Revenue Code of
1986 shall not apply to any qualified hurricane distribution.
“ (2) AGGREGATE DOLLAR LIMITATION.--
“(A) IN GENERAL. --For purposes of this subsection,
the aggregate amount of distributions received by an individual
which may be treated as qualified hurricane distributions for any
taxable year shall not exceed the excess (if any) of--
“(i) $100,000, over
“(ii) the aggregate amounts treated as
qualified hurricane distributions received
by such individual for all prior taxable
years.
“(B) TREATMENT OF PLAN DISTRIBUTIONS.--If
a distribution to an individual would (without regard to
subparagraph (A)) be a qualified hurricane
distribution, a plan shall not be treated as violating
any requirement of the Internal Revenue Code of 1986
merely because the plan treats such distribution as a
qualified hurricane distribution, unless the aggregate
amount of such distributions from all plans maintained
by the employer (and any member of any controlled
group which includes the employer) to such individual
exceeds $100,000.
“(C) CONTROLLED GROUP.--For purposes of subparagraph
(B), the term “controlled group” means any group
treated as a single employer under subsection (b),
(c), (m), or (o) of section
414 of the Internal Revenue Code of 1986.
“(3) AMOUNT DISTRIBUTED MAY BE REPAID.--
“(A) IN GENERAL.--Any individual who receives
a qualified hurricane distribution may, at any time
during the 3-year period beginning on the day after
the date on which such distribution was received,
make one or more contributions in an aggregate amount
not to exceed the amount of such distribution to
an eligible retirement plan of which such individual
is a beneficiary and to which a rollover contribution
of such distribution could be made under section
402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16),
of the Internal Revenue Code of 1986, as the case
may be.
“ (B) TREATMENT OF REPAYMENTS OF DISTRIBUTIONS
FROM ELIGIBLE RETIREMENT PLANS OTHER THAN IRAS.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to subparagraph (A) with
respect to a qualified hurricane distribution from an
eligible retirement plan other than an individual
retirement plan, then the taxpayer shall, to the
extent of the amount of the contribution, be treated
as having received the qualified hurricane distribution
in an eligible rollover distribution (as defined
in section 402(c)(4) of such Code) and as having
transferred the amount to the eligible retirement
plan in a direct trustee to trustee transfer within
60 days of the distribution.
(C) Treatment of repayments for distributions from
iras.--For purposes of the Internal Revenue Code of
1986, if a contribution is made pursuant to
subparagraph (A) with respect to a qualified hurricane
distribution from an individual retirement plan (as
defined by section 7701(a)(37) of such Code), then, to
the extent of the amount of the contribution, the
qualified hurricane distribution shall be treated
as a distribution described in section 408(d)(3)
of such Code and as having been transferred to the
eligible retirement plan in a direct trustee to trustee
transfer within 60 days of the distribution.
“(4) DEFINITIONS.--For purposes of this subsection--
“(A) QUALIFIED HURRICANE DISTRIBUTION.--Except
as provided in paragraph (2), the term “qualified
hurricane distribution” means--
“(i) any distribution from an eligible
retirement plan made on or after August 23,
2017, and before January 1, 2019, to an
individual whose principal place of abode
on August 23, 2017, is located in the Hurricane
Harvey disaster area and who has sustained
an economic loss by reason of Hurricane Harvey,
“(ii) any distribution (which is not
described in clause (i)) from an eligible
retirement plan made on or after September 4,
2017, and before January 1, 2019, to an
individual whose principal place of abode
on September 4, 2017, is located in the Hurricane
Irma disaster area and who has sustained
an economic loss by reason of Hurricane Irma,
and
“(iii) any distribution (which is not
described in clause (i) or (ii)) from an
eligible retirement plan made on or after
September 16, 2017, and before January 1, 2019,
to an individual whose principal place of
abode on September 16, 2017, is located in
the Hurricane Maria disaster area and who
has sustained an economic loss by reason
of Hurricane Maria.
“(B) ELIGIBLE RETIREMENT PLAN.--The term
“eligible retirement plan” shall have the meaning
given such term by section
402(c)(8)(B) of the Internal Revenue Code of
1986.
“(5) INCOME INCLUSION SPREAD OVER 3-YEAR
PERIOD.--
“(A) IN GENERAL.--In the case of any qualified
hurricane distribution, unless the taxpayer elects
not to have this paragraph apply for any taxable
year, any amount required to be included in gross
income for such taxable year shall be so included
ratably over the 3- taxable-year period beginning
with such taxable year.
“(B) SPECIAL RULE.--For purposes of subparagraph
(A), rules similar to the rules of subparagraph (E)
of section 408A(d)(3)
of the Internal Revenue Codeof 1986 shall
apply. (6) Special rules.--
“(A) EXEMPTION OF DISTRIBUTIONS FROM TRUSTEE
TO TRUSTEE TRANSFER AND WITHHOLDING RULES.--For purposes
of sections 401(a)(31), 402(f), and 3405
of the Internal Revenue Code of 1986,
qualified hurricane distributions shall not be treated
as eligible rollover distributions.
“(B) QUALIFIED HURRICANE DISTRIBUTIONS TREATED
AS MEETING PLAN DISTRIBUTION REQUIREMENTS.--For purposes
the Internal Revenue Code of 1986, a qualified
hurricane distribution shall be treated as meeting the
requirements of sections 401(k)(2)(B)(i),
403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of such
Code.
“(b) RECONTRIBUTIONS OF WITHDRAWALS FOR HOME
PURCHASES.--
“(1) RECONTRIBUTIONS.--
“(A) IN GENERAL.--Any individual who received
a qualified distribution may, during the period beginning
on August 23, 2017, and ending on February 28, 2018,
make one or more contributions in an aggregate amount
not to exceed the amount of such qualified distribution
to an eligible retirement plan (as defined in section 402(c)(8)(B) of
the Internal Revenue Code of 1986) of
which such individual is a beneficiary and to which a
rollover contribution of such distribution could be
made under section 402(c), 403(a)(4), 403(b)(8), or
408(d)(3), of such Code, as the case may be.
“(B) TREATMENT OF REPAYMENTS.--Rules similar
to the rules of subparagraphs (B) and (C) of subsection
(a)(3) shall apply for purposes of this subsection.
“(2) QUALIFIED DISTRIBUTION.--For purposes
of this subsection, the term “qualified distribution” means
any distribution--
“(A) described in section 401(k)(2)(B)(i)(IV),
403(b)(7)(A)(ii) (but only to the extent such
distribution relates to financial hardship),
403(b)(11)(B), or 72(t)(2)(F), of the Internal Revenue
Code of 1986,
“(B) received after February 28, 2017, and
before September 21, 2017, and
“(C) which was to be used to purchase or
construct a principal residence in the Hurricane
Harvey disaster area, the Hurricane Irma disaster
area, or the Hurricane Maria disaster area, but which
was not so purchased or constructed on account of
Hurricane Harvey, Hurricane Irma, or Hurricane Maria.”
MODIFICATIONS OF RULES
GOVERNING HARDSHIPS AND UNFORSEEN FINANCIAL EMERGENCIES
Section 826 of Pub. L. 109-280 provided that:
“Within 180 days after the date of the enactment
of this Act, the Secretary of the Treasury shall modify the rules
for determining whether a participant has had a hardship for purposes
of section 401(k)(2)(B)(i)(IV)
of the Internal Revenue Code of 1986 to provide that
if an event (including the occurrence of a medical expense) would
constitute a hardship under the plan if it occurred with respect
to the participant's spouse or dependent (as defined in section
152 of such Code), such event shall, to the extent permitted under
a plan, constitute a hardship if it occurs with respect to a person
who is a beneficiary under the plan with respect to the participant.
The Secretary of the Treasury shall issue similar rules for purposes
of determining whether a participant has had--
“(1) a hardship for purposes of section 403(b)(11)(B)
of such Code; or
“(2) an unforeseen financial emergency for purposes
of sections 409A(a)(2)(A)(vi), 409A(a)(2)(B)(ii), and 457(d)(1)(A)(iii)
of such Code.”
TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS
FOR RELIEF RELATING TO HURRICANE KATRINA
Section 101 of Pub. L.
109-73, before repeal by Pub.
L. 109-135, Sec. 201(b)(4) (effective Dec. 21, 2005), provided
that:
“(a) IN GENERAL.--Section
72(t) of the Internal Revenue Code of 1986 shall not apply
to any qualified Hurricane Katrina distribution.
“(b) AGGREGATE DOLLAR LIMITATION.--
“(1) IN GENERAL.--For purposes of this section,
the aggregate amount of distributions received by an individual which
may be treated as qualified Hurricane Katrina distributions for any
taxable year shall not exceed the excess (if any) of--
“(A) $100,000, over
“(B) the aggregate amounts treated as qualified
Hurricane Katrina distributions received by such individual for all
prior taxable years.
“(2) TREATMENT OF PLAN DISTRIBUTIONS.--If a distribution
to an individual would (without regard to paragraph (1)) be a qualified
Hurricane Katrina distribution, a plan shall not be treated as violating
any requirement of the Internal Revenue Code of 1986 merely because
the plan treats such distribution as a qualified Hurricane Katrina
distribution, unless the aggregate amount of such distributions from
all plans maintained by the employer (and any member of any controlled
group which includes the employer) to such individual exceeds $100,000.
“(3) CONTROLLED GROUP.--For purposes of paragraph
(2), the term “controlled group” means any group treated as a single
employer under subsection (b), (c), (m), or (o) of section 414 of
such Code.
“(c) AMOUNT DISTRIBUTED MAY BE REPAID.--
“(1) IN GENERAL.--Any individual who receives a
qualified Hurricane Katrina distribution may, at any time during the
3-year period beginning on the day after the date on which such distribution
was received, make one or more contributions in an aggregate amount
not to exceed the amount of such distribution to an eligible retirement
plan of which such individual is a beneficiary and to which a rollover
contribution of such distribution could be made under section 402(c),
403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of such Code, as the
case may be.
“(2) TREATMENT OF REPAYMENTS OF DISTRIBUTIONS FROM
ELIGIBLE RETIREMENT PLANS OTHER THAN IRAS.--For purposes of such Code,
if a contribution is made pursuant to paragraph (1) with respect to
a qualified Hurricane Katrina distribution from an eligible retirement
plan other than an individual retirement plan, then the taxpayer shall,
to the extent of the amount of the contribution, be treated as having
received the qualified Hurricane Katrina distribution in an eligible
rollover distribution (as defined in section 402(c)(4) of such Code)
and as having transferred the amount to the eligible retirement plan
in a direct trustee to trustee transfer within 60 days of the distribution.
“(3) TREATMENT OF REPAYMENTS FOR DISTRIBUTIONS
FROM IRAS.--For purposes of such Code, if a contribution is made pursuant
to paragraph (1) with respect to a qualified Hurricane Katrina distribution
from an individual retirement plan (as defined by section 7701(a)(37)
of such Code), then, to the extent of the amount of the contribution,
the qualified Hurricane Katrina distribution shall be treated as a
distribution described in section 408(d)(3) of such Code and as having
been transferred to the eligible retirement plan in a direct trustee
to trustee transfer within 60 days of the distribution.
“(d) DEFINITIONS.--For purposes of this section--
“(1) QUALIFIED HURRICANE KATRINA DISTRIBUTION.--Except
as provided in subsection (b), the term “qualified Hurricane Katrina
distribution” means any distribution from an eligible retirement plan
made on or after August 25, 2005, and before January 1, 2007, to an
individual whose principal place of abode on August 28, 2005, is located
in the Hurricane Katrina disaster area and who has sustained an economic
loss by reason of Hurricane Katrina.
“(2) ELIGIBLE RETIREMENT PLAN.--The term “eligible
retirement plan” shall have the meaning given such term by section
402(c)(8)(B) of such Code.
“(e) INCOME INCLUSION SPREAD OVER 3 YEAR PERIOD
FOR QUALIFIED HURRICANE KATRINA DISTRIBUTIONS.--
“(1) IN GENERAL.--In the case of any qualified
Hurricane Katrina distribution, unless the taxpayer elects not to
have this subsection apply for any taxable year, any amount required
to be included in gross income for such taxable year shall be so included
ratably over the 3-taxable year period beginning with such taxable
year.
“(2) SPECIAL RULE.--For purposes of paragraph (1),
rules similar to the rules of subparagraph (E) of section 408A(d)(3)
of such Code shall apply.
“(f) SPECIAL RULES.--
“(1) EXEMPTION OF DISTRIBUTIONS FROM TRUSTEE TO
TRUSTEE TRANSFER AND WITHHOLDING RULES.--For purposes of sections
401(a)(31), 402(f), and 3405 of such Code, qualified Hurricane Katrina
distributions shall not be treated as eligible rollover distributions.
“(2) QUALIFIED HURRICANE KATRINA DISTRIBUTIONS
TREATED AS MEETING PLAN DISTRIBUTION REQUIREMENTS.--For purposes of
such Code, a qualified Hurricane Katrina distribution shall be treated
as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii),
403(b)(11), and 457(d)(1)(A) of such Code.”
RECONTRIBUTIONS OF WITHDRAWALS FOR HOME PURCHASES
CANCELLED DUE TO HURRICANE KATRINA
Section 102 of Pub. L.
109-73, before repeal by Pub.
L. 109-135, Sec. 201(b)(4) (effective Dec. 21, 2005), provided
that:
“(a) RECONTRIBUTIONS.--
“(1) IN GENERAL.--Any individual who received a
qualified distribution may, during the period beginning on August
25, 2005, and ending on February 28, 2006, make one or more contributions
in an aggregate amount not to exceed the amount of such qualified
distribution to an eligible retirement plan (as defined in section 402(c)(8)(B) of the Internal Revenue
Code of 1986) of which such individual is a beneficiary
and to which a rollover contribution of such distribution could be
made under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3) of such
Code, as the case may be.
“(2) TREATMENT OF REPAYMENTS.--Rules similar to
the rules of paragraphs (2) and (3) of section 101(c) of this Act
shall apply for purposes of this section.
“(b) QUALIFIED DISTRIBUTION DEFINED.--For purposes
of this section, the term “qualified distribution” means any distribution--
“(1) described in section 401(k)(2)(B)(i)(IV),
403(b)(7)(A)(ii) (but only to the extent such distribution relates
to financial hardship), 403(b)(11)(B), or 72(t)(2)(F) of such Code,
“(2) received after February 28, 2005, and before
August 29, 2005, and
“(3) which was to be used to purchase or construct
a principal residence in the Hurricane Katrina disaster area, but
which was not so purchased or constructed on account of Hurricane
Katrina.”
CERTAIN ARRANGEMENTS MAINTAINED BY THE YMCA
RETIREMENT FUND TREATED AS CHURCH PLANS
Section 1 of Pub. L.
108-476 provided that:
“(1) CERTAIN ARRANGEMENTS MAINTAINED BY THE YMCA
RETIREMENT FUND TREATED AS CHURCH PLANS.-
“(a) RETIREMENT PLANS.-
“(1) IN GENERAL.-For purposes
of sections 401(a) and 403(b) of the
Internal Revenue Code of 1986, any retirement plan maintained
by the YMCA Retirement Fund as of January 1, 2003, shall be treated
as a church plan (within the meaning of section 414(e) of such Code)
which is maintained by an organization described in section 414(e)(3)(A)
of such Code.
“(2) TAX-DEFERRED RETIREMENT
PLAN.-In the case of a retirement plan described in paragraph (1)
which allows contributions to be made under a salary reduction agreement-
(A) such treatment shall not
apply for purposes of section 415(c)(7) of such Code, and
(B) any account maintained for
a participant or beneficiary of such plan shall be treated for purposes
of such Code as a retirement income account described in section 403(b)(9)
of such Code, except that such account shall not, for purposes of
section 403(b)(12) of such Code, be treated as a contract purchased
by a church for purposes of section 403(b)(1)(D) of such Code.
(3) MONEY PURCHASE PENSION PLAN.-In
the case of a retirement plan described in paragraph (1) which is
subject to the requirements of section 401(a) of such Code-
(A) such plan (but not any reserves
held by the YMCA Retirement Fund)-
(i) shall be treated for purposes
of such Code as a defined contribution plan which is a money purchase
pension plan, and
(ii) shall be treated as having
made an election under section 410(d) of such Code for plan years
beginning after December 31, 2005, except that notwithstanding the
election-
(I) nothing in the Employee
Retirement Income Security Act of 1974 or such Code shall prohibit
the YMCA Retirement Fund from commingling for investment purposes
the assets of the electing plan with the assets of such Fund and with
the assets of any employee benefit plan maintained by such Fund, and
(II) nothing in this section
shall be construed as subjecting any assets described in subclause
(I), other than the assets of the electing plan, to any provision
of such Act.
(B) notwithstanding section
401(a)(11) or 417 of such Code or section 205 of such Act, such plan
may offer a lump-sum distribution option to participants who have
not attained age 55 without offering such participants an annuity
option, and
(C) any account maintained for
a participant or beneficiary of such plan shall, for purposes of section
401(a)(9) of such Code, be treated as a retirement income account
described in section 403(b)(9) of such Code.
(4) SELF-FUNDED DEATH BENEFIT
PLAN.-For purposes of section 7702(j) of such Code, a retirement plan
described in paragraph (1) shall be treated as an arrangement described
in section 7702(j)(2).
“(b) YMCA RETIREMENT FUND.-For purposes of this
section the term “YMCA Retirement Fund” means the Young Men's Christian
Association Retirement Fund, a corporation created by an Act of the
State of New York which became law on April 30, 1921.
“(c) EFFECTIVE DATE.-This section shall apply to
plan years beginning after December 31, 2003.”
CLARIFICATION OF SECTION 1450 OF PUB. L. 104-188
Section 1601(d)(4) of Pub.
L. 105-34, as amended by Pub.
L. 105-206, Sec. 6016(a)(2), provided that:
“(4) Clarification of section
1450.--
(A) Paragraphs (7)(A)(ii) and
(11) of section 403(b) of the Internal
Revenue Code of 1986 shall not apply with respect to a
distribution from a contract described in section 1450(b)(1) of such
Act to the extent that such distribution is not includible in income
by reason of--
(i) in the case of distributions
before January 1, 1998, section 403 (b)(8) or (b)(10) of such Code
(determined after the application of section 1450(b)(2) of such Act),
and
(ii) in the case of distributions
on and after such date, such section 403(b)(10).
(B) This paragraph shall apply
as if included in section 1450 of the Small Business Job Protection
Act of 1996.”
REPEAL OF RULES IN SECTION 415(e)
Section 1504(b) of Pub.
L. 105-34 provided that: “The Secretary of the Treasury
shall modify the regulations regarding the exclusion allowance under
section 403(b)(2) of the Internal
Revenue Code of 1986 to reflect the amendment made by
section 1452(a) of the Small Business Job Protection Act of 1996.
Such modification shall take effect for years beginning after December
31, 1999.”
MULTIPLE SALARY REDUCTION AGREEMENTS PERMITTED
Section 1450(a)(1) of Pub.
L. 104-188 provided that:
“(1) General rule.--For purposes
of section 403(b) of the Internal Revenue
Code of 1986, the frequency that an employee is permitted
to enter into a salary reduction agreement, the salary to which such
an agreement may apply, and the ability to revoke such an agreement
shall be determined under the rules applicable to cash or deferred
elections under section 401(k) of such Code.”
TREATMENT OF INDIAN TRIBAL GOVERNMENTS
Section 1450(b)(1) of Pub.
L. 104-188 provided that:
“(1) In general.--In the case
of any contract purchased in a plan year beginning before January
1, 1995, section 403(b) of the Internal
Revenue Code of 1986 shall be applied as if any reference
to an employer described in section
501(c)(3) of the Internal Revenue Code of 1986 which is
exempt from tax under section 501 of such Code included a reference
to an employer which is an Indian tribal government (as defined by
section 7701(a)(40) of such Code), a subdivision of an Indian tribal
government (determined in accordance with section 7871(d) of such
Code), an agency or instrumentality of an Indian tribal government
or subdivision thereof, or a corporation chartered under Federal,
State, or tribal law which is owned in whole or in part by any of
the foregoing.”
SPECIAL NOTE REGARDING DATE FOR ADOPTION OF
PLAN AMENDMENTS
Section 523 of Pub. L.
102-318 provided that:
“If any amendment made by [sections
521 and 522] requires an amendment to any plan, such plan amendment
shall not be required to be made before the first plan year beginning
on or after January 1, 1994, if --
(1) during the period after
such amendment takes effect and before such first plan year, the plan
is operated in accordance with the requirements of such amendment,
and
(2) such plan amendment applies
retroactively to such period.”
SAMPLING TO DETERMINE WHETHER PLAN MEETS SUBSECTION
(b)(12) REQUIREMENTS
Section 6052(b) of Pub.
L. 100-647 provided that: ‘In the case of plan years beginning
in 1989, 1990, or 1991, determinations as to whether a plan meets
the requirements of section 403(b)(12) of the 1986 Code may be made
on the basis of a statistically valid random sample. The preceding
sentence shall apply only if -
‘(1) the sampling is conducted
by an independent person in a manner not inconsistent with regulations
prescribed by the Secretary, and
‘(2) the statistical method
and sample size result in a 95 percent probability that the results
will have a margin of error not greater than 3 percent.’
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1,
1989
For provisions directing that if any amendments
made by subtitle A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177)
or title XVIII (Sec. 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.
ISSUANCE OF FINAL REGULATIONS
Secretary of the Treasury or his delegate to issue
before Feb. 1, 1988, final regulations to carry out amendments made
by section 1120 of Pub. L. 99-514,
see section 1141 of Pub. L. 99-514,
set out as a note under section 401 of this title.
CORRECTION PERIOD FOR CHURCH PLANS
Section 251(d) of Pub.
L. 97-248, as amended by Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided
that: ‘A church plan (within the meaning of section 414(e) of the Internal Revenue Code of
1986 (formerly I.R.C. 1954))
shall not be treated as not meeting the requirements of section 401
or 403 of such Code if -
‘(1) by reason of any change
in any law, regulation, ruling, or otherwise such plan is required
to be amended to meet such requirements, and
‘(2) such plan is so amended
at the next earliest church convention or such other time as the Secretary
of the Treasury or his delegate may prescribe.’
TRANSITIONAL RULE FOR MAKING SECTION 403(b)(8)
ROLLOVER IN THE CASE OF PAYMENTS DURING 1978
Section 101(a)(13)(B) of Pub.
L. 96-222, as amended by Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided
that: ‘In the case of any payment made during 1978 in a qualifying
distribution described in section
403(b)(8) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954), the applicable
period specified in section 402(a)(5)(C) of such Code shall not expire
before the close of December 31, 1980.'
TRANSITIONAL RULE IN CASE OF ROLLOVER CONTRIBUTIONS
TO EMPLOYEE TRUSTS OR ANNUITIES
Applicable period specified in section 402(a)(5)(C)
of this title shall not expire before close of Dec. 31, 1980 in case
of any payment described in subsec. (a)(4)(A) of this section or section
402(a)(5)(A) of this title, see section 157(h)(3)(B) of Pub. L. 95-600, set out as a note under
section 402 of this title.