Source: https://www.law.cornell.edu/uscode/text/26/408
Timestamp: 2019-04-18 11:14:04+00:00

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(3) Rollover contributionAn amount is described in this paragraph as a rollover contribution if it meets the requirements of subparagraphs (A) and (B).
For purposes of clause (i), the term “eligible plan” means any account, annuity, contract, or plan referred to in subparagraph (A).
which is made on or after the date that the individual for whose benefit the plan is maintained has attained age 70½.
For purposes of this paragraph, there shall be excluded from consideration employees described in subparagraph (A) or (C) of section 410(b)(3). For purposes of any arrangement described in subsection (k)(6), any employee who is eligible to have employer contributions made on the employee’s behalf under such arrangement shall be treated as if such a contribution was made.
For purposes of clause (i), the term “excess contribution” means, with respect to a highly compensated employee, the excess of elective employer contributions under this paragraph over the maximum amount of such contributions allowable under subparagraph (A)(iii).
the employee’s compensation (not in excess of the first $200,000) for the year.
The terms “employee”, “employer”, and “owner-employee” shall have the respective meanings given such terms by section 401(c).
Except as provided in paragraph (2)(C), the term “compensation” has the meaning given such term by section 414(s).
if the employer elects, subject to such terms and conditions as the Secretary may prescribe, to maintain the simplified employee pension on the basis of the employer’s taxable year.
The employer shall notify each employee immediately before the period for which an election described in subsection (p)(5)(C) may be made of the employee’s opportunity to make such election. Such notice shall include a copy of the description described in subparagraph (B).
The requirements of this paragraph are met with respect to a simple retirement account if the employee’s rights to any contribution to the simple retirement account are nonforfeitable. For purposes of this paragraph, rules similar to the rules of subsection (k)(4) shall apply.
A plan shall not be treated as failing to satisfy the requirements of this subsection or any other provision of this title merely because the employer makes all contributions to the individual retirement accounts or annuities of a designated trustee or issuer. The preceding sentence shall not apply unless each plan participant is notified in writing (either separately or as part of the notice under subsection (l)(2)(C)) that the participant’s balance may be transferred without cost or penalty to another individual account or annuity in accordance with subsection (d)(3)(G).
In the case of any simple retirement account, subsections (a)(1) and (b)(2) shall be applied by substituting “the sum of the dollar amount in effect under paragraph (2)(A)(ii) of this subsection and the employer contribution required under subparagraph (A)(iii) or (B)(i) of paragraph (2) of this subsection, whichever is applicable” for “the dollar amount in effect under section 219(b)(1)(A)”.
The transfer of an individual’s interest in an individual retirement account or an individual retirement annuity to his spouse or former spouse under a divorce or separation instrument described in clause (i) of section 121(d)(3)(C) is not to be considered a taxable transfer made by such individual notwithstanding any other provision of this subtitle, and such interest at the time of the transfer is to be treated as an individual retirement account of such spouse, and not of such individual. Thereafter such account or annuity for purposes of this subtitle is to be treated as maintained for the benefit of such spouse.
2018—Subsec. (a)(1). Pub. L. 115–141, § 401(a)(75), inserted “or” after “subsection (d)(3)”.
Subsec. (m)(3)(B). Pub. L. 115–141, § 401(a)(76), substituted “section 5” for “section 7”.
2017—Subsec. (d)(6). Pub. L. 115–97 substituted “clause (i) of section 121(d)(3)(C)” for “subparagraph (A) of section 71(b)(2)”.
Subsec. (p)(1)(B). Pub. L. 114–113, § 306(a), inserted “except in the case of a rollover contribution described in subsection (d)(3)(G) or a rollover contribution otherwise described in subsection (d)(3) or in section 402(c), 403(a)(4), 403(b)(8), or 457(e)(16), which is made after the 2-year period described in section 72(t)(6),” before “with respect to which the only contributions allowed”.
2014—Subsec. (d)(8)(F). Pub. L. 113–295, § 108(a), substituted “December 31, 2014” for “December 31, 2013”.
Subsec. (p)(2)(E)(i). Pub. L. 113–295, § 221(a)(53), amended cl. (i) generally. Prior to amendment, cl. (i) listed applicable dollar amounts for subsec. (p)(2)(A)(ii) for calendar years 2002 to 2005 and thereafter.
2013—Subsec. (d)(8)(F). Pub. L. 112–240 substituted “December 31, 2013” for “December 31, 2011”.
2010—Subsec. (d)(8)(F). Pub. L. 111–312 substituted “December 31, 2011” for “December 31, 2009”.
2008—Subsec. (d)(8)(F). Pub. L. 110–343 substituted “December 31, 2009” for “December 31, 2007”.
2007—Subsec. (d)(8)(D). Pub. L. 110–172 substituted “all amounts in all individual retirement plans of the individual were distributed during such taxable year and all such plans were treated as 1 contract for purposes of determining under section 72 the aggregate amount which would have been so includible” for “all amounts distributed from all individual retirement plans were treated as 1 contract under paragraph (2)(A) for purposes of determining the inclusion of such distribution under section 72”.
2006—Subsec. (d)(8). Pub. L. 109–280, which directed the amendment of section 408(d) by adding par. (8), without specifying the act to be amended, was executed by making the addition to this section, which is section 408 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.
2004—Subsec. (a)(1). Pub. L. 108–311, § 408(a)(12), substituted “457(e)(16),” for “457(e)(16)”.
Subsec. (n)(2). Pub. L. 108–311, § 408(a)(13), substituted “paragraph (6) or (7) of section 101” for “section 101(6)”.
2002—Subsec. (k)(2)(C). Pub. L. 107–147, § 411(j)(1)(A), substituted “$450” for “$300”.
Subsec. (k)(8). Pub. L. 107–147, § 411(j)(1)(B), substituted “$450” for “$300” in two places.
2001—Subsec. (a)(1). Pub. L. 107–16, § 641(e)(8), substituted “403(b)(8), or 457(e)(16)” for “or 403(b)(8),”.
Pub. L. 107–16, § 601(b)(1), substituted “on behalf of any individual in excess of the amount in effect for such taxable year under section 219(b)(1)(A)” for “in excess of $2,000 on behalf of any individual”.
Subsec. (b). Pub. L. 107–16, § 601(b)(3), substituted “the dollar amount in effect under section 219(b)(1)(A)” for “$2,000” in concluding provisions.
Subsec. (b)(2)(B). Pub. L. 107–16, § 601(b)(2), substituted “the dollar amount in effect under section 219(b)(1)(A)” for “$2,000”.
Subsec. (d)(3)(D)(i). Pub. L. 107–16, § 642(b)(2), substituted “(i) or (ii)” for “(i), (ii), or (iii)”.
Subsec. (d)(3)(H). Pub. L. 107–16, § 643(c), added subpar. (H).
Subsec. (d)(3)(I). Pub. L. 107–16, § 644(b), added subpar. (I).
Subsec. (j). Pub. L. 107–16, § 601(b)(4), struck out “$2,000” before “amounts”.
Subsec. (k)(3)(C), (6)(D)(ii), (8). Pub. L. 107–16, § 611(c)(1), substituted “$200,000” for “$150,000”.
Subsec. (p)(2)(A)(ii). Pub. L. 107–16, § 611(f)(1), substituted “the applicable dollar amount” for “$6,000”.
Subsec. (p)(8). Pub. L. 107–16, § 601(b)(5), substituted “the dollar amount in effect under section 219(b)(1)(A)” for “$2,000”.
Subsecs. (q), (r). Pub. L. 107–16, § 602(a), added subsec. (q) and redesignated former subsec. (q) as (r).
2000—Subsec. (d)(5). Pub. L. 106–554 amended heading generally. Prior to amendment, heading read as follows: “Certain distributions of excess contributions after due date for taxable year”.
1998—Subsec. (d)(7). Pub. L. 105–206, § 6018(b)(2), inserted “or simple retirement accounts” after “pensions” in heading.
Subsec. (d)(7)(B). Pub. L. 105–206, § 6018(b)(1), inserted “or 402(k)” after “section 402(h)”.
Subsec. (p)(2)(C)(i)(II). Pub. L. 105–206, § 6016(a)(1)(C)(i), substituted “the preceding sentence shall not apply” for “the preceding sentence shall apply only in accordance with rules similar to the rules of section 410(b)(6)(C)(i)” in last sentence.
Subsec. (p)(2)(D)(i). Pub. L. 105–206, § 6016(a)(1)(A), struck out “or (B)” after “(A)” in last sentence.
Subsec. (p)(8), (9). Pub. L. 105–206, § 6015(a), redesignated par. (8), relating to matching contributions on behalf of self-employed individuals not treated as elective employer contributions, as (9).
Subsec. (p)(10). Pub. L. 105–206, § 6016(a)(1)(B), added par. (10).
1997—Subsec. (i). Pub. L. 105–34, § 1601(d)(1)(A), substituted “31 days” for “30 days” in concluding provisions.
Pub. L. 105–34, § 302(d), struck out “under regulations” after “may require” in introductory provisions and struck out “in such regulations” after “prescribes” in pars. (1) and (2)(B).
Subsec. (k)(6)(H). Pub. L. 105–34, § 1601(d)(1)(B), substituted “of an employer if the terms of simplified employee pensions of such employer” for “if the terms of such pension”.
Subsec. (l)(2)(B). Pub. L. 105–34, § 1601(d)(1)(C)(i), inserted “and the issuer of an annuity established under such an arrangement” after “under subsection (p)” in introductory provisions and “or issuer” after “trustee” in cl. (i).
Subsec. (p)(2)(D)(iii). Pub. L. 105–34, § 1601(d)(1)(F), added cl. (iii).
Subsec. (p)(5). Pub. L. 105–34, § 1601(d)(1)(G), substituted “simple” for “simplified” in introductory provisions.
Subsec. (p)(8). Pub. L. 105–34, § 1601(d)(1)(D), added par. (8) relating to coordination with maximum limitation under subsection (a).
Pub. L. 105–34, § 1501(b), added par. (8) relating to matching contributions on behalf of self-employed individuals not treated as elective employer contributions.
1996—Subsec. (d)(3)(G). Pub. L. 104–188, § 1421(b)(3)(B), added subpar. (G).
Subsec. (d)(5)(A). Pub. L. 104–188, § 1427(b)(3), substituted “the dollar amount in effect under section 219(b)(1)(A)” for “$2,250” in introductory provisions.
Subsec. (i). Pub. L. 104–188, § 1455(b)(1), inserted “aggregating $10 or more in any calendar year” after “distributions” in introductory provisions.
Subsec. (k)(2)(C). Pub. L. 104–188, § 1431(c)(1)(B), substituted “section 414(q)(4)” for “section 414(q)(7)”.
Subsec. (k)(6)(H). Pub. L. 104–188, § 1421(c), added subpar. (H).
Subsec. (l). Pub. L. 104–188, § 1421(b)(5), designated existing provisions as par. (1), inserted heading, and added par. (2).
Subsecs. (p), (q). Pub. L. 104–188, § 1421(a), added subsec. (p) and redesignated former subsec. (p) as (q).
1994—Subsec. (k)(8). Pub. L. 103–465 inserted before period at end “; except that any increase in the $300 amount which is not a multiple of $50 shall be rounded to the next lowest multiple of $50”.
1993—Subsec. (k)(3)(C), (6)(D)(ii). Pub. L. 103–66, § 13212(b)(1), substituted “$150,000” for “$200,000”.
1992—Subsec. (a)(1). Pub. L. 102–318, § 521(b)(16), substituted “402(c)” for “402(a)(5), 402(a)(7)”.
Subsec. (d)(3)(A)(ii). Pub. L. 102–318, § 521(b)(17), amended clause (ii) generally. Prior to amendment, clause (ii) read as follows: “the entire amount received (including money and any other property) represents the entire amount in the account or the entire value of the annuity and no amount in the account and no part of the value of the annuity is attributable to any source other than a rollover contribution of a qualified total distribution (as defined in section 402(a)(5)(E)(i)) from an employee’s trust described in section 401(a) which is exempt from tax under section 501(a), or an annuity plan described in section 403(a) and any earnings on such sums and the entire amount thereof is paid into another such trust (for the benefit of such individual) or annuity plan not later than the 60th day on which he receives the payment or distribution; or”.
Subsec. (d)(3)(F). Pub. L. 102–318, § 521(b)(19), substituted “402(c)(7)” for “402(a)(6)(H)”.
1989—Subsecs. (a)(6), (b)(3). Pub. L. 101–239, § 7811(m)(7), struck out “(without regard to subparagraph (C)(ii) thereof)” after “section 401(a)(9)”.
Subsec. (d)(6). Pub. L. 101–239, § 7841(a)(1), substituted “his spouse or former spouse under a divorce or separation instrument described in subparagraph (A) of section 71(b)(2)” for “his former spouse under a divorce decree or under a written instrument incident to such divorce”.
1988—Subsec. (d)(2)(C). Pub. L. 100–647, § 1011(b)(1), substituted “in which the taxable year begins” for “with or within which the taxable year ends”.
Subsec. (d)(3)(E). Pub. L. 100–647, § 1018(t)(3)(D), substituted “paragraph” for “subparagraph”.
Subsec. (d)(4). Pub. L. 100–647, § 1011(b)(2), substituted “Contributions” for “Excess contributions” in heading, struck out “to the extent that such contribution exceeds the amount allowable as a deduction under section 219” after “individual retirement annuity” in introductory provisions, and substituted “such contribution” for “such excess contribution” in subpars. (B) and (C) and in last sentence.
Subsec. (d)(5). Pub. L. 100–647, § 1011(b)(3), substituted “shall be computed without regard to section 219(g)” for “(after application of section 408(o)(2)(B)(ii)) shall be increased by the nondeductible limit under section 408(o)(2)(B)” in last sentence.
Subsec. (d)(7). Pub. L. 100–647, § 1011(f)(5), added par. (7).
Subsec. (k)(3)(C). Pub. L. 100–647, § 1011(f)(3)(C), struck out “total” before “compensation”.
Subsec. (k)(6)(A)(iv). Pub. L. 100–647, § 1011(c)(7)(C), added cl. (iv).
Subsec. (k)(6)(B). Pub. L. 100–647, § 1011(f)(2), inserted “who were eligible to participate (or would have been required to be eligible to participate if a pension was maintained)” after “than 25 employees”.
Subsec. (k)(6)(D)(ii). Pub. L. 100–647, § 1011(f)(3)(A), substituted “(not in excess of the first $200,000)” for “(within the meaning of section 414(s))”.
Subsec. (k)(6)(F), (G). Pub. L. 100–647, § 1011(f)(4), added subpar. (f) and redesignated former subpar. (F) as (G).
Subsec. (k)(8). Pub. L. 100–647, § 1011(f)(3)(D), (10), substituted “paragraphs (3)(C) and (6)(D)(ii)” for “paragraph (3)(C)” and inserted “, except that in the case of years beginning after 1988, the $200,000 amount (as so adjusted) shall not exceed the amount in effect under section 401(a)(17)” after “under section 415(d)”.
Subsec. (o)(4)(B)(iv). Pub. L. 100–647, § 1011(b)(1), substituted “in which the taxable year begins” for “with or within which the taxable year ends”.
1986—Subsecs. (a)(6), (b)(3). Pub. L. 99–514, § 1852(a)(1), substituted “(without regard to subparagraph (C)(ii) thereof) and the incidental death benefit requirements of section 401(a)” for “(relating to required distributions)”.
Subsec. (c)(1). Pub. L. 99–514, § 1852(a)(7)(A), substituted “paragraphs (1) through (6)” for “paragraphs (1) through (7)”.
Subsec. (d)(3)(A)(ii). Pub. L. 99–514, § 1875(c)(8)(A), (B), struck out “(other than a trust forming part of a plan under which the individual was an employee within the meaning of section 401(c)(1) at the time contributions were made on his behalf under the plan)” after “section 501(a)” and struck out “(other than a plan under which the individual was an employee within the meaning of section 401(c)(1) at the time contributions were made on his behalf under the plan)” after “section 403(a)”.
Pub. L. 99–514, § 1121(c)(2), made amendment identical to Pub. L. 99–514, § 1875(c)(8)(A), (B), see above.
Subsec. (d)(3)(E). Pub. L. 99–514, § 1852(a)(5)(C), added subpar. (E).
Subsec. (d)(3)(F). Pub. L. 99–514, § 1122(e)(2)(B), added subpar. (F).
Subsec. (d)(5)(A). Pub. L. 99–514, § 1875(c)(6)(A), substituted “the dollar limitation in effect under section 415(c)(1)(A) for such taxable year” for “$15,000”.
Subsec. (f). Pub. L. 99–514, § 1123(d)(2), struck out subsec. (f) which related to additional tax on certain amounts included in gross income before age 59½.
“(B) has performed service for the employer during at least 3 of the immediately preceding 5 calendar years.
Subsec. (k)(2)(A). Pub. L. 99–514, § 1898(a)(5), substituted “age 21” for “age 25”.
Subsec. (k)(3)(A). Pub. L. 99–514, § 1108(g)(4), substituted “year” for “calendar year”.
Subsec. (k)(6). Pub. L. 99–514, § 1108(a), added par. (6).
Subsec. (k)(7)(C). Pub. L. 99–514, § 1108(f), added subpar. (C).
Subsec. (k)(8). Pub. L. 99–514, § 1108(e), added par. (8).
Subsec. (k)(9). Pub. L. 99–514, § 1108(g)(6), added par. (9).
Subsec. (m)(3). Pub. L. 99–514, § 1144(a), added par. (3).
Subsecs. (o), (p). Pub. L. 99–514, § 1102(a), added subsec. (o) and redesignated former subsec. (o) as (p).
1984—Subsec. (a)(1). Pub. L. 98–369, § 491(d)(19), substituted “or 403(b)(8)” for “403(b)(8), 405(d)(3), or 409(b)(3)(C)”.
Subsec. (a)(6). Pub. L. 98–369, § 521(b)(1), added par. (6) and struck out former par. (6) which provided that the entire interest of an individual for whose benefit the trust is maintained will be distributed to him not later than the close of his taxable year in which he attains age 70½, or will be distributed, commencing before the close of such taxable year, in accordance with regulations prescribed by the Secretary, over (A) the life of such individual or the lives of such individual and his spouse, or (B) a period not extending beyond the life expectancy of such individual or the life expectancy of such individual and his spouse.
Subsec. (a)(7). Pub. L. 98–369, § 521(b)(1), struck out par. (7) which provided that if (A) an individual for whose benefit the trust is maintained dies before his entire interest has been distributed to him, or (B) distribution has been commenced as provided in paragraph (6) to his surviving spouse and such surviving spouse dies before the entire interest has been distributed to such spouse, the entire interest (or the remaining part of such interest if distribution thereof has commenced) will be distributed within 5 years after his death (or the death of the surviving spouse). The preceding sentence shall not apply if distributions over a term certain commenced before the death of the individual for whose benefit the trust was maintained and the term certain is for a period permitted under paragraph (6).
Subsec. (b)(3). Pub. L. 98–369, § 521(b)(2), added par. (3) and struck out former par. (3) which provided that the entire interest of the owner will be distributed to him not later than the close of his taxable year in which he attains age 70½, or will be distributed, in accordance with regulations prescribed by the Secretary, over (A) the life of such owner or the lives of such owner and his spouse, or (B) a period not extending beyond the life expectancy of such owner or the life expectancy of such owner and his spouse.
Subsec. (b)(4), (5). Pub. L. 98–369, § 521(b)(2), redesignated par. (5) as (4) and struck out former par. (4) which provided that if (A) the owner dies before his entire interest has been distributed to him, or (B) distribution has been commenced as provided in paragraph (3) to his surviving spouse and such surviving spouse dies before the entire interest has been distributed to such spouse, the entire interest (or the remaining part of such interest if distribution thereof has commenced) will be distributed within 5 years after his death (or the death of the surviving spouse). The preceding sentence shall not apply if distributions over a term certain commenced before the death of the owner and the term certain is for a period permitted under paragraph (3).
Subsec. (d)(3)(A)(i). Pub. L. 98–369, § 491(d)(20), struck out “or retirement bond” before “for the benefit”.
Subsec. (d)(3)(A)(ii). Pub. L. 98–369, § 522(d)(12), substituted “rollover contribution of a qualified total distribution (as defined in section 402(a)(5)(E)(i)) from an employee’s trust” for “rollover contribution from an employee’s trust”.
Subsec. (d)(3)(B). Pub. L. 98–369, § 491(d)(21), substituted “or an individual retirement annuity” for “, individual retirement annuity, or a retirement bond”.
Subsec. (d)(3)(C), (D). Pub. L. 98–369, § 713(g)(2), designated the subpar. (C), as added by section 335(a)(1) of Pub. L. 97–248, relating to permitting partial rollovers, as subpar. (D).
Subsec. (d)(3)(D)(ii). Pub. L. 98–369, § 491(d)(22), struck out “bond,” after “annuity,”.
Subsec. (d)(6). Pub. L. 98–369, § 491(d)(23), substituted “or an individual retirement annuity” for “, individual retirement annuity, or retirement bond”, and “or annuity” for “, annuity, or bond”.
Subsec. (h). Pub. L. 98–369, § 713(c)(2)(B), substituted “(as defined in subsection (n))” for “(as defined in section 401(d)(1))”.
Subsec. (i). Pub. L. 98–369, § 147(a), inserted “(and the years to which they relate)”.
Subsec. (k)(1). Pub. L. 98–369, § 713(f)(2), amended par. (1) generally, designating existing provisions as subpar. (A) and adding subpar. (B).
Subsec. (k)(3)(C). Pub. L. 98–369, § 713(f)(5)(B), inserted provision which required annual adjustment of the $200,000 amount concurrently with the dollar amount adjustment in section 415(c)(1)(A).
Subsec. (k)(3)(E). Pub. L. 98–369, § 491(d)(24), substituted “or 403(a)” for “, 403(a), or 405(a)”.
1983—Subsec. (j). Pub. L. 97–448, § 103(d)(1)(B), substituted “$17,000” for “$15,000” in provisions preceding par. (1).
Subsec. (k)(3)(C)(ii). Pub. L. 97–448, § 103(d)(1)(A), inserted “(other than an employee within the meaning of section 401(c)(1))” after “a simplified employee pension on behalf of each employee”.
Subsecs. (m), (n). Pub. L. 97–448, § 103(e)(1), amended directory language of Pub. L. 97–34, § 314(b)(1), thereby correcting subsec. designations. See 1981 Amendment note below for subsecs. (m) and (n).
1982—Subsec. (a)(2). Pub. L. 97–248, § 237(e)(3)(A), substituted reference to subsection (n) of this section, for reference to section 401(d)(1).
Subsec. (a)(7). Pub. L. 97–248, § 243(a)(1), amended par. (7) generally, designating existing provisions as subpars. (A) and (B), in subpar. (B), as so designated, striking out “if” before “distribution”, in provisions following subpar. (B) substituting “will be distributed within 5 years after his death (or the death of the surviving spouse)” for “will, within 5 years after his death (or the death of the surviving spouse), be distributed, or applied to the purchase of an immediate annuity for his beneficiary or beneficiaries (or the beneficiary or beneficiaries of his surviving spouse) which will be payable for the life of such beneficiary or beneficiaries (or for a term certain not extending beyond the life expectancy of such beneficiary or beneficiaries) and which annuity will be immediately distributed to such beneficiary or beneficiaries”, and substituting “shall not apply” for “does not apply”.
Subsec. (b)(4). Pub. L. 97–248, § 243(a)(2), amended par. (4) generally, designating existing provisions, as subpars. (A) and (B), in subpar. (B), as so redesignated, striking out “if” before “distribution”, in provisions following subpar. (B) substituting “will be distributed within 5 years after his death (or the death of the surviving spouse)” for “will, within 5 years after his death (or the death of the surviving spouse), be distributed, or applied to the purchase of an immediate annuity for his beneficiary or beneficiaries (or the beneficiary or beneficiaries of his surviving spouse) which will be payable for the life of such beneficiary or beneficiaries (or for a term certain not extending beyond the life expectancy of such beneficiary or beneficiaries) and which annuity will be immediately distributed to such beneficiary or beneficiaries”, and substituting “shall not apply” for “shall have no application”.
Subsec. (d)(3)(C). Pub. L. 97–248, § 243(b)(1)(A), added subpar. (C) relating to denial of rollover treatment for inherited accounts.
Pub. L. 97–248, § 335(a)(1), added subpar. (C) relating to permitting partial rollovers.
Subsec. (j). Pub. L. 97–248, § 238(d)(3), amended subsec. (j) generally, substituting provisions increasing amount by the amount of the limitation in effect under section 415(c)(1)(A), for provisions increasing amount by substituting “$15,000” for “$2,000”.
Subsec. (k)(1). Pub. L. 97–248, § 238(d)(4)(B), struck out reference to par. (6) of this subsection.
Subsec. (k)(3)(C). Pub. L. 97–248, § 238(d)(4)(C), amended subpar. (C) generally, striking out cl. “(i)” designation and cl. (ii) which related to taking into account compensation in excess of $100,000 with respect to a simplified employee pension.
Subsec. (k)(6). Pub. L. 97–248, § 238(d)(4)(A), struck out par. (6) which related to prohibition on employer maintaining plan to which section 401(j) applies.
Subsecs. (n), (o). Pub. L. 97–248, § 237(e)(3)(B), added subsec. (n) and redesignated former subsec. (n) as (o).
1981—Subsec. (a)(1). Pub. L. 97–34, § 313(b)(2), inserted reference to section 405(d)(3).
Pub. L. 97–34, § 311(g)(1)(A), substituted “$2,000” for “$1,500”.
Subsec. (b). Pub. L. 97–34, § 311(g)(1)(B), substituted in par. (2)(B) and provision following par. (5) “$2,000” for “$1,500”.
Subsec. (d)(4). Pub. L. 97–34, § 311(h)(2), substituted section “219” for “219 or 220” in provision preceding subpar. (A) and in subpar. (B).
Subsec. (d)(5)(A). Pub. L. 97–34, § 312(c)(5), substituted “$15,000” for “$7,500”.
Pub. L. 97–34, § 311(g)(2), (h)(2), substituted “$2,250” for “$1,750” and “219” for “219 or 220” in two places.
Subsec. (j). Pub. L. 97–34, § 312(c)(5), substituted “$15,000” for “$7,500”.
Pub. L. 97–34, § 311(g)(1)(C), substituted “$2,000” for “$1,500”.
Subsec. (k)(3)(C). Pub. L. 97–34, § 312(b)(2), designated provision relating to compensation bearing a uniform relationship to total compensation as cl. (i), and in cl. (i) as so designated, substituted “$200,000” for “$100,000”, and added cl. (ii).
Subsecs. (m), (n). Pub. L. 97–34, § 314(b)(1), as amended by Pub. L. 97–448, § 103(e)(1), added subsec. (m) and redesignated former subsec. (m) as (n).
1980—Subsec. (a)(1). Pub. L. 96–222, § 101(a)(14)(B), inserted reference to section 402(a)(7).
Subsec. (d)(5). Pub. L. 96–222, § 101(a)(10)(C), (14)(E)(ii), in subpar. (A) inserted provisions requiring that if employer contributions on behalf of the individual are paid for the taxable year to a simplified employee pension, the dollar amount of the preceding sentence be increased by the lessor of the amount of such contributions or $7,500 and restructured subpar. (B).
Subsec. (j)(3). Pub. L. 96–222, § 101(a)(10)(J)(i), struck out par. (3) which made reference to paragraph (5) of subsection (b).
Subsec. (k). Pub. L. 96–222, § 101(a)(10)(A), (F), (G), substituted in par. (1) “(5), and (6)” for “and (5)” and in par. (3)(D) “If the employer does not maintain an integrated plan at any time during the taxable year, taxes paid” for “Taxes paid”, inserted in par. (2) provisions requiring that for purposes of this paragraph there be excluded from consideration employees described in subparagraph (A) or (C) of section 410(b)(2) and pars. (3)(E) and (6), and redesignated former par. (6) as (7).
Subsec. (k)(2), (3)(B)(i). Pub. L. 96–605, § 225(b)(3), (4), substituted “section 410(b)(3)” for “section 410(b)(2)”.
1978—Subsec. (a)(1). Pub. L. 95–600, § 156(c)(3), inserted reference to section 403(b)(8).
Subsec. (b)(2). Pub. L. 95–600, § 157(d)(1), (e)(1)(A), designated existing provisions as subpars. (B) and (C) and added subpar. (A), and in subpar. (B) as so designated, inserted “on behalf of any individual” after “annual premium”, respectively.
Subsec. (d)(3)(A)(iii). Pub. L. 95–600, § 156(c)(1), added cl. (iii).
Subsec. (d)(3)(B). Pub. L. 95–600, § 157(g)(3), (h)(2), inserted provision relating to the applicability of clause (ii) of subparagraph (A) to any amount paid or distributed out of an individual retirement account or annuity to which an amount was contributed which was treated as a rollover contribution by section 402(a)(7) and substituted “1-year period” for “3-year period”.
Subsec. (d)(4). Pub. L. 95–600, § 703(c)(4), amended Pub. L. 94–455, § 1501(b)(5). See 1976 Amendment note below.
Subsec. (d)(5), (6). Pub. L. 95–600, § 157(c)(1), added par. (5) and redesignated former par. (5) as (6).
Subsecs. (j) to (m). Pub. L. 95–600, § 152(a), added subsecs. (j) to (l) and redesignated former subsec. (j) as (m).
1976—Subsecs. (a)(2), (6), (b). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (c)(2). Pub. L. 94–455, § 1501(b)(2), substituted “member (or spouse of an employee or member)” for “member”.
Subsec. (d)(1). Pub. L. 94–455, § 1501(b)(10), substituted “Notwithstanding any other provision of this title (including chapters 11 and 12), the basis” for “The basis”.
Subsec. (d)(4). Pub. L. 94–455, § 1501(b)(5), as amended by Pub. L. 95–600, § 703(c)(4), inserted reference to section 220 and substituted “In the case of such a distribution, for purposes of section 61, any net income described in subparagraph (C) shall be deemed to have been earned and receivable in the taxable year in which such excess contribution is made” for “Any net income described in subparagraph (C) shall be included in the gross income of the individual for the taxable year in which received”.
Subsecs. (h), (i). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
The amendment made by this section [amending this section] shall apply to distributions made in taxable years beginning after December 31, 2011.
The amendment made by this section [amending this section] shall apply to distributions made in taxable years beginning after December 31, 2009.
The amendments made by this section [amending this section and section 403 of this title] shall apply to distributions after December 31, 2001.
Pub. L. 99–514, title XVIII, § 1898(a)(5), Oct. 22, 1986, 100 Stat. 2944, provided that the amendment made by that section is effective with respect to plan years beginning after Oct. 22, 1986.
If a qualified airline employee receives any airline payment amount and transfers any portion of such amount to a traditional IRA within 180 days of receipt of such amount (or, if later, within 180 days of the date of the enactment of this Act [Feb. 14, 2012]), then such amount (to the extent so transferred) shall be treated as a rollover contribution described in section 402(c) of the Internal Revenue Code of 1986. A qualified airline employee making such a transfer may exclude from gross income the amount transferred, in the taxable year in which the airline payment amount was paid to the qualified airline employee by the commercial passenger airline carrier.
A qualified airline employee who has contributed an airline payment amount to a Roth IRA that is treated as a qualified rollover contribution pursuant to section 125 of the Worker, Retiree, and Employer Recovery Act of 2008 [Pub. L. 110–458, 26 U.S.C. 408A note], may transfer to a traditional IRA, in a trustee-to-trustee transfer, all or any part of the contribution (together with any net income allocable to such contribution), and the transfer to the traditional IRA will be deemed to have been made at the time of the rollover to the Roth IRA, if such transfer is made within 180 days of the date of the enactment of this Act. A qualified airline employee making such a transfer may exclude from gross income the airline payment amount previously rolled over to the Roth IRA, to the extent an amount attributable to the previous rollover was transferred to a traditional IRA, in the taxable year in which the airline payment amount was paid to the qualified airline employee by the commercial passenger airline carrier. No amount so transferred to a traditional IRA may be treated as a qualified rollover contribution with respect to a Roth IRA within the 5-taxable year period beginning with the taxable year in which such transfer was made.
A qualified airline employee who excludes an amount from gross income in a prior taxable year under paragraph (1) or (2) may reflect such exclusion in a claim for refund filed within the period of limitation under section 6511(a) of such Code (or, if later, April 15, 2015).
the aggregate amount of such transfers to which paragraphs (1) and (2) applied for all preceding taxable years.
any amount transferred to a traditional IRA which is attributable to net income described in paragraph (2) shall not be taken into account.
Paragraphs (1) and (2) shall not apply to any transfer by a qualified airline employee (or any transfer authorized under subsection (d) by a surviving spouse of the qualified airline employee) if at any time during the taxable year of the transfer or any preceding taxable year the qualified airline employee held a position described in subparagraph (A) or (B) of section 162(m)(3) [probably means section 162(m)(3) of the Internal Revenue Code of 1986] with the commercial passenger airline carrier from whom the airline payment amount was received.
In the case of any amount which became an airline payment amount by reason of the amendments made by section 1(b) of Public Law 113–243 (26 U.S.C. 408 note), paragraph (1) shall be applied by substituting ‘(or, if later, within the period beginning on December 18, 2014, and ending on the date which is 180 days after the date of enactment of the Protecting Americans from Tax Hikes Act of 2015 [Dec. 18, 2015])’ for ‘(or, if later, within 180 days of the date of the enactment of this Act [Feb. 14, 2012])’.
For purposes of chapter 21 of the Internal Revenue Code of 1986 and section 209 of the Social Security Act [42 U.S.C. 409], an airline payment amount shall not fail to be treated as a payment of wages by the commercial passenger airline carrier to the qualified airline employee in the taxable year of payment because such amount is excluded from the qualified airline employee’s gross income under subsection (a).
in respect of the qualified airline employee’s interest in a bankruptcy claim against the carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount.
An airline payment amount shall not include any amount payable on the basis of the carrier’s future earnings or profits.
was terminated, became subject to the restrictions contained in paragraphs (2) and (3) of section 402(b) of the Pension Protection Act of 2006 [Pub. L. 109–280, 26 U.S.C. 430 note], or was frozen effective November 1, 2012.
The term ‘traditional IRA’ means an individual retirement plan (as defined in section 7701(a)(37) of the Internal Revenue Code of 1986) which is not a Roth IRA.
The term ‘Roth IRA’ has the meaning given such term by section 408A(b) of such Code.
If a qualified airline employee died after receiving an airline payment amount, or if an airline payment amount was paid to the surviving spouse of a qualified airline employee in respect of the qualified airline employee, the surviving spouse of the qualified airline employee may take all actions permitted under section 125 of the Worker, Retiree and Employer Recovery Act of 2008 [Pub. L. 110–458, 26 U.S.C. 408A note], or under this section, to the same extent that the qualified airline employee could have done had the qualified airline employee survived.
The Secretary of the Treasury (or the Secretary’s delegate) shall make available a form (or modify existing forms) for use by individuals to direct that a portion of any refund of overpayment of tax imposed by chapter 1 of the Internal Revenue Code of 1986 be paid directly to an individual retirement plan (as defined in section 7701(a)(37) of such Code) of such individual.
 Amendment of Subsection (d)(6) note below.
  So in original. Concluding provisions probably should be part of subpar. (B).

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