Source: https://irc.bloombergtax.com/public/uscode/doc/irc/409
Timestamp: 2019-03-26 18:09:01
Document Index: 765065721

Matched Legal Cases: ['§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409', '§ 409']

Internal Revenue Code, § 409. Qualifications For Tax Credit Employee Stock Ownership Plans
I.R.C. § 409(a) Tax Credit Employee Stock Ownership Plan Defined —
Except as otherwise provided in this title, for purposes of this title, the term “tax credit employee stock ownership plan" means a defined contribution plan which—
I.R.C. § 409(a)(1) —
I.R.C. § 409(a)(2) —
I.R.C. § 409(a)(3) —
I.R.C. § 409(b) Required Allocation Of Employer Securities
I.R.C. § 409(b)(1) In General —
I.R.C. § 409(b)(1)(A) —
the plan provides for the allocation for the plan year of all employer securities transferred to it or purchased by it (because of the requirements of section 41(c)(1)(B)) to the accounts of all participants who are entitled to share in such allocation, and
I.R.C. § 409(b)(1)(B) —
I.R.C. § 409(b)(2) Compensation In Excess Of $100,000 Disregarded —
I.R.C. § 409(b)(3) Determination Of Compensation —
I.R.C. § 409(b)(4) Suspension Of Allocation In Certain Cases —
Notwithstanding paragraph (1), the allocation to the account of any participant which is attributable to the basic employee plan credit or the credit allowed under section 41 (relating to the employee stock ownership credit) may be extended over whatever period may be necessary to comply with the requirements of section 415.
I.R.C. § 409(c) Participants Must Have Nonforfeitable Rights —
I.R.C. § 409(d) Employer Securities Must Stay In The Plan —
I.R.C. § 409(d)(1) —
I.R.C. § 409(d)(2) —
I.R.C. § 409(d)(3) —
I.R.C. § 409(e) Voting Rights
I.R.C. § 409(e)(1) In General —
I.R.C. § 409(e)(2) Requirements Where Employer Has A Registration-Type Class Of Securities —
I.R.C. § 409(e)(3) Requirement For Other Employers —
I.R.C. § 409(e)(4) Registration-Type Class Of Securities Defined —
I.R.C. § 409(e)(4)(A) —
I.R.C. § 409(e)(4)(B) —
I.R.C. § 409(e)(5) 1 Vote Per Participant —
I.R.C. § 409(e)(5)(A) —
I.R.C. § 409(e)(5)(B) —
I.R.C. § 409(f) Plan Must Be Established Before Employer's Due Date
I.R.C. § 409(f)(1) In General —
I.R.C. § 409(f)(2) Special Rule For First Year —
I.R.C. § 409(g) Transferred Amounts Must Stay In Plan Even Though Investment Credit Is Redetermined Or Recaptured —
A plan meets the requirement of this subsection only if it provides that amounts which are transferred to the plan (because of the requirements of section 48(n)(1) or 41(c)(1)(B)) shall remain in the plan (and, if allocated under the plan, shall remain so allocated) even though part or all of the employee plan credit or the credit allowed under section 41 (relating to employee stock ownership credit) is recaptured or redetermined. For purposes of the preceding sentence, the references to section 48(n)(1) and the employee plan credit shall refer to such section and credit as in effect before the enactment of the Tax Reform Act of 1984.
I.R.C. § 409(h) Right To Demand Employer Securities; Put Option
I.R.C. § 409(h)(1) In General —
I.R.C. § 409(h)(1)(A) —
I.R.C. § 409(h)(1)(B) —
I.R.C. § 409(h)(2) Plan May Distribute Cash In Certain Cases
I.R.C. § 409(h)(2)(A) In General —
I.R.C. § 409(h)(2)(B) Exception For Certain Plans Restricted From Distributing Securities
I.R.C. § 409(h)(2)(B)(i) In General —
I.R.C. § 409(h)(2)(B)(ii) Applicable Plans —
I.R.C. § 409(h)(2)(B)(ii)(I) —
I.R.C. § 409(h)(2)(B)(ii)(II) —
I.R.C. § 409(h)(3) Special Rule For Banks —
I.R.C. § 409(h)(4) Put Option Period —
I.R.C. § 409(h)(5) Payment Requirement For Total Distribution —
I.R.C. § 409(h)(5)(A) —
I.R.C. § 409(h)(5)(B) —
For purposes of this paragraph, the term “total distribution" means the distribution within 1 taxable year to the recipient of the balance to the credit of the recipient's account.
I.R.C. § 409(h)(6) Payment Requirement For Installment Distributions —
I.R.C. § 409(h)(7) Exception Where Employee Elected Diversification —
I.R.C. § 409(i) Reimbursement For Expenses Of Establishing And Administering Plan —
I.R.C. § 409(i)(1) Expenses Of Establishing Plan —
I.R.C. § 409(i)(1)(A) —
10 percent of the first $100,000 which the employer is required to transfer to the plan for that taxable year under section 41(c)(1)(B), and
I.R.C. § 409(i)(1)(B) —
I.R.C. § 409(i)(2) Administrative Expenses —
I.R.C. § 409(i)(2)(A) —
I.R.C. § 409(i)(2)(A)(i) —
I.R.C. § 409(i)(2)(A)(ii) —
I.R.C. § 409(i)(2)(B) —
I.R.C. § 409(j) Conditional Contributions To The Plan —
I.R.C. § 409(j)(1) —
I.R.C. § 409(j)(2) —
I.R.C. § 409(j)(3) —
I.R.C. § 409(k) Requirements Relating To Certain Withdrawals —
I.R.C. § 409(k)(1) —
I.R.C. § 409(k)(2) —
I.R.C. § 409(l) Employer Securities Defined —
I.R.C. § 409(l)(1) In General —
I.R.C. § 409(l)(2) Special Rule Where There Is No Readily Tradable Common Stock —
If there is no common stock which meets the requirements of paragraph (1), the term “employer securities” means common stock issued by the employer (or by a corporation which is a member of the same controlled group) having a combination of voting power and dividend rights equal to or in excess of--
I.R.C. § 409(l)(2)(A) —
I.R.C. § 409(l)(2)(B) —
I.R.C. § 409(l)(3) Preferred Stock May Be Issued In Certain Cases —
I.R.C. § 409(l)(4) Application To Controlled Group Of Corporations
I.R.C. § 409(l)(4)(A) In General —
I.R.C. § 409(l)(4)(B) Where Common Parent Owns At Least 50 Percent Of First Tier Subsidiary —
I.R.C. § 409(l)(4)(C) Where Common Parent Owns 100 Percent Of First Tier Subsidiary —
I.R.C. § 409(l)(5) Nonvoting Common Stock May Be Acquired In Certain Cases —
I.R.C. § 409(m) Nonrecognition Of Gain Or Loss On Contribution Of Employer Securities To Tax Credit Employee Stock Ownership Plan —
No gain or loss shall be recognized to the taxpayer with respect to the transfer of employer securities to a tax credit employee stock ownership plan maintained by the taxpayer to the extent that such transfer is required under section 41(c)(1)(B), or subparagraph (A) or (B) of section 48(n)(1).
I.R.C. § 409(n) Securities Received In Certain Transactions
I.R.C. § 409(n)(1) In General —
I.R.C. § 409(n)(1)(A) —
during the nonallocation period, for the benefit of—
I.R.C. § 409(n)(1)(A)(i) —
any taxpayer who makes an election under section 1042(a) with respect to employer securities,
I.R.C. § 409(n)(1)(A)(ii) —
I.R.C. § 409(n)(1)(B) —
for the benefit of any other person who owns (after application of section 318(a)) more than 25 percent of—
I.R.C. § 409(n)(1)(B)(i) —
I.R.C. § 409(n)(1)(B)(ii) —
I.R.C. § 409(n)(2) Failure To Meet Requirements —
I.R.C. § 409(n)(2)(A) —
I.R.C. § 409(n)(2)(B) —
I.R.C. § 409(n)(2)(C) —
the statutory period for the assessment of any tax imposed by section 4979A shall not expire before the date which is 3 years from the later of—
I.R.C. § 409(n)(2)(C)(i) —
I.R.C. § 409(n)(2)(C)(ii) —
I.R.C. § 409(n)(3) Definitions And Special Rules —
I.R.C. § 409(n)(3)(A) Lineal Descendants —
I.R.C. § 409(n)(3)(A)(i) —
I.R.C. § 409(n)(3)(A)(ii) —
I.R.C. § 409(n)(3)(B) 25-Percent Shareholders —
I.R.C. § 409(n)(3)(B)(i) —
I.R.C. § 409(n)(3)(B)(ii) —
I.R.C. § 409(n)(3)(C) Nonallocation Period —
I.R.C. § 409(n)(3)(C)(i) —
I.R.C. § 409(n)(3)(C)(ii) —
I.R.C. § 409(o) Distribution And Payment Requirements —
I.R.C. § 409(o)(1) Distribution Requirement
I.R.C. § 409(o)(1)(A) In General —
I.R.C. § 409(o)(1)(A)(i) —
I.R.C. § 409(o)(1)(A)(ii) —
I.R.C. § 409(o)(1)(B) Exception For Certain Financed Securities —
I.R.C. § 409(o)(1)(C) Limited Distribution Period —
I.R.C. § 409(o)(1)(C)(i) —
I.R.C. § 409(o)(1)(C)(ii) —
in the case of a participant with an account balance in excess of $800,000 , 5 years plus 1 additional year (but not more than 5 additional years) for each $160,000 or fraction thereof by which such balance exceeds $800,000.
I.R.C. § 409(o)(2) Cost-Of-Living Adjustment —
I.R.C. § 409(p) Prohibited Allocations Of Securities In An S Corporation
I.R.C. § 409(p)(1) In General —
I.R.C. § 409(p)(2) Failure To Meet Requirements
I.R.C. § 409(p)(2)(A) In General —
I.R.C. § 409(p)(2)(B) Cross Reference —
I.R.C. § 409(p)(3) Nonallocation Year —
I.R.C. § 409(p)(3)(A) In General —
I.R.C. § 409(p)(3)(A)(i) —
I.R.C. § 409(p)(3)(A)(ii) —
I.R.C. § 409(p)(3)(B) Attribution Rules —
I.R.C. § 409(p)(3)(B)(i) In General —
I.R.C. § 409(p)(3)(B)(i)(I) —
I.R.C. § 409(p)(3)(B)(i)(II) —
I.R.C. § 409(p)(3)(B)(ii) Deemed-Owned Shares —
I.R.C. § 409(p)(4) Disqualified Person —
I.R.C. § 409(p)(4)(A) In General —
I.R.C. § 409(p)(4)(A)(i) —
I.R.C. § 409(p)(4)(A)(ii) —
I.R.C. § 409(p)(4)(B) Treatment Of Family Members —
I.R.C. § 409(p)(4)(C) Deemed-Owned Shares
I.R.C. § 409(p)(4)(C)(i) In General —
I.R.C. § 409(p)(4)(C)(i)(I) —
I.R.C. § 409(p)(4)(C)(i)(II) —
I.R.C. § 409(p)(4)(C)(ii) Person's Share Of Unallocated Stock —
I.R.C. § 409(p)(4)(D) Member Of Family —
I.R.C. § 409(p)(4)(D)(i) —
I.R.C. § 409(p)(4)(D)(ii) —
I.R.C. § 409(p)(4)(D)(iii) —
I.R.C. § 409(p)(4)(D)(iv) —
I.R.C. § 409(p)(5) Treatment Of Synthetic Equity —
I.R.C. § 409(p)(5)(A) —
I.R.C. § 409(p)(5)(B) —
I.R.C. § 409(p)(6) Definitions —
I.R.C. § 409(p)(6)(A) Employee Stock Ownership Plan —
I.R.C. § 409(p)(6)(B) Employer Securities —
I.R.C. § 409(p)(6)(C) Synthetic Equity —
I.R.C. § 409(p)(7) Regulations And Guidance
I.R.C. § 409(p)(7)(A) In General —
I.R.C. § 409(p)(7)(B) Avoidance Or Evasion —
(Added by Pub. L. 95-600, title I, Sec. 141(a), Nov. 6, 1978, 92 Stat. 2787, Sec. 409A, and amended by Pub. L. 96-222, title I, Sec. 101(a)(7)(D)-(F), (I), (J), (L)(i)(VI), (ii)(I), (II), (iii)(V), (v)(VI), (VII), Apr. 1, 1980, 94 Stat. 198-200; Pub. L. 96-605, title II, Sec. 224(a), Dec. 28, 1980, 94 Stat. 3528; Pub. L. 97-34, title III, Sec. 331(c)(1), 334, 336, 337(a), Aug. 13, 1981, 95 Stat. 293, 297, 298; Pub. L. 97-448, title I, Sec. 103(h), (i), Jan. 12, 1983, 96 Stat. 2379; renumbered Sec. 409 and amended Pub. L. 98-369, div. A, title IV, Sec. 474(r)(15), 491(e)(1), July 18, 1984, 98 Stat. 843, 852; Pub. L. 99-514, title XI, Sec. 1172(b)(1), 1174(a)(1), (b)(1), (2), (c)(1)(A), 1176(b), title XVIII, Sec. 1852(a)(4)(B), 1854(a)(3)(A), (f)(1), (3)(C), 1899A(11), Oct. 22, 1986, 100 Stat. 2514, 2516, 2517, 2520, 2865, 2873, 2881, 2882, 2958; Pub. L. 100-647, title I, Sec. 1011B(g)(1), (2), (i)(1), (3), (j)(3), (5), (k)(3), 1018(t)(4)(B), (C), (H), Nov. 10, 1988, 102 Stat. 3490, 3492, 3493, 3588, 3589; Pub. L. 101-239, title VII, Sec. 7304(a)(2)(A), (B), 7811(h)(1), Dec. 19, 1989, 103 Stat. 2352, 2353, 2409; Pub. L. 105-34, title XV, Sec. 1506(a), Aug. 5, 1997, 111 Stat 788; Pub. L. 107-16, title VI, Sec. 656(a), June 7, 2001, 115 Stat. 38; Pub. L. 107-147, title IV, Sec. 411, Mar. 9, 2002, 116 Stat. 21; Pub. L. 109-280, title IX, Sec. 901(a)(2)(B), Aug. 17, 2006, 120 Stat. 780; Pub. L. 113-295, Div. A, title II, Sec. 221(a)(54), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(79), Mar. 23, 2018, 132 Stat. 348.)
2018--Subsec. (n)(1)(A)(i). Pub. L. 115-141, Div. U, Sec. 401(a)(79), amended clause (i) by substituting “securities,” for “securities,,,”.
2014--Subsec. (q). Pub. L. 113-295, Div. A, Sec. 221(a)(54), struck subsec. (q). Before being struck, it read as follows:
“(q) Cross References.—
“(1) For requirements for allowance of employee plan credit, see section 48(n).
“(2) For assessable penalties for failure to meet requirements of this section, or for failure to make contributions required with respect to the allowance of an employee plan credit or employee stock ownership credit, see section 6699.
“(3) For requirements for allowance of an employee stock ownership credit, see section 41.”
2006--Subsec. (h)(7). Pub. L. 109-280, Sec. 901(a)(2)(B), amended par. (7) by inserting “or subparagraph (B) or (C) of section 401(a)(35)” before the period at the end.
2002--Subsec. (o)(1)(C)(ii). Pub. L. 107-147, Sec. 411(j)(2) , amended clause (ii) by substituting “$800,000” for “$500,000” each place it appeared and by substituting “$160,000” for “$100,000”.
2001--Subsec. (p)-(q). Pub. L. 107-16, Sec. 656(a), redesignated subsec. (p) as subsec. (q) and added a new subsec. (p).
1997--Subsec. (h)(2). Pub. L. 105-34, Sec. 1506(a)(2), amended par. (2) by striking “A plan which” and inserting “(A) In general--A plan which” at the beginning; by striking the last sentence. Prior to amendment the last sentence read as follows:
“In the case of an employer whose charter or bylaws restrict the ownership of substantially all outstanding employer securities to employees or to a trust described in section 401(a), a plan which otherwise meets the requirements of this subsection or section 4975(e)(7) shall not be considered to have failed to meet the requirements of this subsection or of section 401(a) merely because it does not permit a participant to exercise the right described in paragraph (1)(A) if such plan provides that participants entitled to a distribution from the plan shall have a right to receive such distribution in cash, except that such plan may distribute employer securities subject to a requirement that such securities may be resold to the employer under terms which meet the requirements of paragraph (1)(B).”
Subsec. (h)(2)(B). Pub. L. 105-34, Sec. 1506(a)(1), amended par. (2) by adding subpar. (B).
1989--Subsec. (l)(5). Pub. L. 101-239, Sec. 7811(h)(1), substituted ‘the second sentence’ for ‘the last sentence’.
Subsec. (n)(1). Pub. L. 101-239, Sec. 7304(a)(2)(A)(i), struck out ‘or section 2057’ after ‘section 1042’ in two places in introductory provisions.
Subsec. (n)(1)(A)(i). Pub. L. 101-239, Sec. 7304(a)(2)(A)(ii), struck out ‘or any decedent if the executor of the estate of such decedent makes a qualified sale to which section 2057 applies’ after ‘employer securities,’.
Subsec. (n)(1)(A)(ii). Pub. L. 101-239, Sec. 7304(a)(2)(A)(iii), struck out ‘or the decedent’ after ‘the taxpayer’.
Subsec. (n)(2)(C)(i), (3)(A)(ii). Pub. L. 101-239, Sec. 7304(a)(2)(B), struck out ‘or section 2057’ after ‘section 1042’.
1988--Subsec. (d). Pub. L. 100-647, Sec. 1011B(j)(3) , inserted ‘or to any distribution or reinvestment required under section 401(a)(28)’ after ‘under section 401(a)(9)’.
Subsec. (e)(5). Pub. L. 100-647, Sec. 1018(t)(4)(H), substituted ‘paragraph (3)’ for ‘paragraph (2) or (3)’.
Subsec. (h)(2). Pub. L. 100-647, Sec. 1018(t)(4)(B), substituted ‘paragraph (1)(B)’ for ‘section 409(o)’.
Subsec. (h)(7). Pub. L. 100-647, Sec. 1011B(j)(5) , added par. (7).
Subsec. (l)(4), (5). Pub. L. 100-647, Sec. 1011B(k)(3), redesignated par. (4), relating to nonvoting common stock may be acquired in certain cases, as (5).
Subsec. (n)(1). Pub. L. 100-647, Sec. 1011B(g)(1), made technical amendment to directory language of Pub. L. 99-514, Sec. 1172(b)(1). See 1986 Amendment note below.
Subsec. (n)(2)(C)(i), (3)(A)(ii). Pub. L. 100-647, Sec. 1011B(g)(2), inserted ‘or section 2057’ after ‘which section 1042’.
Subsec. (n)(3)(C). Pub. L. 100-647, Sec. 1018(t)(4)(C), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: ‘The term ‘nonallocation period’ means the 10-year period beginning on the later of -
‘(i) the date of the sale of the qualified securities, or
‘(ii) the date of the plan allocation attributable to the final payment of acquisition indebtedness incurred in connection with such sale.’
Subsec. (o)(1)(A). Pub. L. 100-647, Sec. 1011B(i)(3), substituted ‘if the participant and, if applicable pursuant to sections 401(a)(11) and 417, with the consent of the participant's spouse elects' for ‘unless the participant otherwise elects’.
Subsec. (o)(1)(A)(ii). Pub. L. 100-647, Sec. 1011B(i)(1), substituted ‘distribution is required to begin under this clause’ for ‘such year’.
1986 - Subsec. (a)(3). Pub. L. 99-514, Sec. 1174(b)(2), inserted reference to subsec. (o).
Subsec. (d). Pub. L. 99-514, Sec. 1899A(11), substituted ‘participant's' for ‘participants'’.
Pub. L. 99-514, Sec. 1852(a)(4)(B), inserted at end ‘This subsection shall not apply to any distribution required under section 401(a)(9).’
Subsec. (d)(1). Pub. L. 99-514, Sec. 1174(a)(1), substituted ‘separation from service, or termination of the plan’ for ‘or separation from service’.
Subsec. (e)(2). Pub. L. 99-514, Sec. 1854(f)(1)(C), (D), inserted ‘or beneficiary’ after ‘participant’ in two places and substituted ‘securities of the employer’ for ‘employer securities’.
Subsec. (e)(3). Pub. L. 99-514, Sec. 1854(f)(1)(B)-(D), inserted ‘or beneficiary’ after ‘participant’ in two places and substituted ‘securities of the employer’ for ‘employer securities’ and ‘any corporate matter which involves the voting of such shares with respect to the approval or disapproval of any corporate merger or consolidation, recapitalization, reclassification, liquidation, dissolution, sale of substantially all assets of a trade or business, or such similar transaction as the Secretary may prescribe in regulations’ for ‘a corporate matter which (by law or charter) must be decided by more than a majority vote of outstanding common shares voted’.
Subsec. (e)(5). Pub. L. 99-514, Sec. 1854(f)(1)(A), added par. (5).
Subsec. (h)(2). Pub. L. 99-514, Sec. 1854(f)(3)(C), inserted ‘, except that such plan may distribute employer securities subject to a requirement that such securities may be resold to the employer under terms which meet the requirements of section 409(o)’.
Subsec. (h)(5), (6). Pub. L. 99-514, Sec. 1174(c)(1)(A), added pars. (5) and (6).
Subsec. (l)(4). Pub. L. 99-514, Sec. 1176(b), added par. (4) relating to acquisition of nonvoting common stock.
Subsec. (n). Pub. L. 99-514, Sec. 1854(a)(3)(A), added subsec. (n). Former subsec. (n) redesignated (o).
Subsec. (n)(1). Pub. L. 99-514, Sec. 1172(b)(1), as amended by Pub. L. 100-647, Sec. 1011B(g)(1), inserted ‘or section 2057’ in two places in introductory provisions, ‘or any decedent if the executor of the estate of such decedent makes a qualified sale to which section 2057 applies,’ in subpar. (A)(i), and ‘or the decedent’ in subpar. (A)(ii).
Subsec. (o). Pub. L. 99-514, Sec. 1174(b)(1), added subsec. (o). Former subsec. (o) redesignated (p).
Pub. L. 99-514, Sec. 1854(a)(3)(A), redesignated former subsec. (n) as (o).
Subsec. (p). Pub. L. 99-514, Sec. 1174(b)(1), redesignated former subsec. (o) as (p).
1984 - Subsec. (b)(1)(A). Pub. L. 98-369, Sec. 474(r)(15)(A), (B), substituted ‘41’ for ‘44G’ and struck out ‘48(n)(1)(A) or’ after ‘requirements of section’.
Subsec. (b)(4). Pub. L. 98-369, Sec. 474(r)(15)(A), substituted ‘41’ for ‘44G’.
Subsec. (g). Pub. L. 98-369, Sec. 474(r)(15)(A), (C), substituted ‘41’ for ‘44G’ in two places, and inserted provision directing that, for purposes of the preceding sentence, the references to section 48(n)(1) and the employee plan credit shall refer to such section and credit as in effect before the enactment of the Tax Reform Act of 1984.
Subsec. (i)(1)(A). Pub. L. 98-369, Sec. 474(r)(15)(A), (D), substituted ‘41’ for ‘44G’, and struck out ‘48(n)(1) or’ after ‘taxable year under section’.
Subsec. (k). Pub. L. 98-369, Sec. 474(r)(15)(E), inserted provision requiring that, for purposes of this subsection, the reference to the matching employee plan credit refer to such credit as in effect before the enactment of the Tax Reform Act of 1984.
Subsec. (m). Pub. L. 98-369, Sec. 474(r)(15)(A), substituted ‘41’ for ‘44G’.
Subsec. (n)(3). Pub. L. 98-369, Sec. 474(r)(15)(A), substituted ‘41’ for ‘44G’.
1983 - Subsec. (d)(2). Pub. L. 97-448, Sec. 103(i), struck out provisions covering the sale of substantially all of the stock of a subsidiary of the employer.
Subsec. (h)(2). Pub. L. 97-448, Sec. 103(h), substituted ‘the requirements of this subsection or of section 401(a)’ for ‘the requirements of section 401(a)’.
1981 - Subsec. (b). Pub. L. 97-34, Sec. 331(c)(1)(A), (B), inserted in par. (1)(A) reference to section 44G(c)(1)(B), and inserted in par. (4) ‘or the credit allowed under section 44G (relating to the employee stock ownership credit)’ after ‘basic employee plan credit’.
Subsec. (d). Pub. L. 97-34, Sec. 337, designated provision relating to death, disability, or separation from service as par. (1) and added pars. (2) and (3).
Subsec. (g). Pub. L. 97-34, Sec. 331(c)(1)(C), (D), inserted reference to section 44G(c)(1)(B) and inserted ‘or the credit allowed under section 44G (relating to employee stock ownership credit)’ after ‘employee plan credit’.
Subsec. (h)(2). Pub. L. 97-34, Sec. 334, substituted ‘this subsection’ for ‘this section’ and inserted provision respecting receipt of distributions in cash where employer's charter or bylaws restrict ownership of substantially all outstanding employer securities to employees or to a section 401(a) trust where a participant is not permitted to exercise the right described in par. (1)(A).
Subsec. (h)(3), (4). Pub. L. 97-34, Sec. 336, added pars. (3) and (4).
Subsec. (i)(1)(A). Pub. L. 97-34, Sec. 331(c)(1)(E), inserted reference to section 44G(c)(1)(B).
Subsec. (m). Pub. L. 97-34, Sec. 331(c)(1)(F), inserted reference to section 44G(c)(1)(B).
Subsec. (n)(2), (3). Pub. L. 97-34, Sec. 331(c)(1)(G), (H), inserted ‘or employee stock ownership credit’ after ‘employee plan credit’ in par. (2) and added par. (3).
1980 - Pub. L. 96-222, Sec. 101(a)(7)(L)(v)(VII), substituted ‘tax credit employee stock ownership plans’ for ‘ESOPS’ in section catchline.
Subsec. (a). Pub. L. 96-222, Sec. 101(a)(7)(L)(ii)(I), (v)(VI), substituted in heading and in text ‘tax credit employee stock ownership plan’ for ‘ESOP’.
Subsec. (b)(4). Pub. L. 96-222, Sec. 101(a)(7)(L)(iii)(V), substituted ‘employee plan credit’ for ‘ESOP credit’.
Subsec. (d). Pub. L. 96-222, Sec. 101(a)(7)(F), inserted ‘(or allocated to a participant's account in connection with matched employer and employee contributions)' after ‘under subsection (b)’.
Subsec. (f)(1). Pub. L. 96-222, Sec. 101(a)(7)(I)(i), substituted ‘only if it is established on or before the due date (including any extension of such date) for the filing of the employer's tax return for the first taxable year of the employer for which an employee plan credit is claimed by the employer with respect to the plan' for ‘for a plan year only if it is established on or before the due date for the filing of the employer's tax return for the taxable year (including any extension of such date) in which or with which the plan year ends'.
Subsec. (f)(2). Pub. L. 96-222, Sec. 101(a)(7)(I)(ii), (L)(v)(VII), substituted ‘employee plan’ for ‘ESOP’ and inserted ‘with respect to the plan’ after ‘by the employer’.
Subsec. (g). Pub. L. 96-222, Sec. 101(a)(7)(L)(iii)(V), substituted ‘employee plan credit’ for ‘ESOP credit’.
Subsec. (h)(2). Pub. L. 96-222, Sec. 101(a)(7)(E), inserted ‘or of section 4975(e)(7)’ after ‘the requirements of this section’.
Subsecs. (j)(2), (k)(1). Pub. L. 96-222, Sec. 101(a)(7)(L)(iii)(V), substituted ‘employee plan credit’ for ‘ESOP credit’.
Subsec. (l)(2)(B). Pub. L. 96-222, Sec. 101(a)(7)(J)(i) , substituted ‘class of common stock’ for ‘class of stock’.
Subsec. (l)(3). Pub. L. 96-222, Sec. 101(a)(7)(J)(ii) , (L)(ii)(II), substituted ‘as employer securities’ for ‘as meeting the requirements of paragraph (1)’, ‘paragraph (1) or (2)’ for ‘paragraph (2)’, and ‘tax credit employee stock ownership plan’ for ‘ESOP’ and inserted provisions requiring preferred stock to be treated as noncallable if after the call there will be a reasonable opportunity for a conversion which meets the requirements of the preceding sentence.
Subsec. (l)(4). Pub. L. 96-605 substituted in heading ‘Application to controlled group of corporations’ for ‘Controlled group of corporations defined’ and in subpar. (B) heading ‘Where common parent owns at least’ for ‘Common parent may own only’ and added subpar. (C).
Subsec. (m). Pub. L. 96-222, Sec. 101(a)(7)(D), (L)(i), substituted provisions relating to nonrecognition of gain or loss on contribution of employer securities to a tax credit employee stock ownership plan for provisions relating to contributions of stock of a controlling corporation.
Subsec. (n). Pub. L. 96-222, Sec. 101(a)(7)(L)(iii)(V), substituted ‘employee plan credit’ for ‘ESOP credit’ in pars. (1) and (2).
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(79), effective March 23, 2018.
Amendment by Pub. L. 113-295, Div. A, Sec. 221(a)(54), effective on the date of the enactment of this Act [Enacted: Dec. 19, 2014[.
Amendment by Sec. 901 of Pub. L. 109-280 applicable to plan years beginning after December 31, 2006. Sec. 901(c)(2)-(3) of Pub. L. 109-280 provided the following special rules:
“(2) SPECIAL RULE FOR COLLECTIVELY BARGAINED 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 on or before the date of the enactment of this Act, paragraph (1) shall be applied to benefits pursuant to, and individuals covered by, any such agreement by substituting for ‘December 31, 2006’ the earlier of--
“ (B) December 31, 2008.
“(3) SPECIAL RULE FOR CERTAIN EMPLOYER SECURITIES HELD IN AN ESOP-
“(A) IN GENERAL- In the case of employer securities to which this paragraph applies, the amendments made by this section shall apply to plan years beginning after the earlier of--
“(ii) the first date on which the fair market value of such securities exceeds the guaranteed minimum value described in subparagraph (B)(ii).
“(B) APPLICABLE SECURITIES- This paragraph shall apply to employer securities which are attributable to employer contributions other than elective deferrals, and which, on September 17, 2003--
“(i) consist of preferred stock, and
“(ii) are within an employee stock ownership plan (as defined in section 4975(e)(7) of the Internal Revenue Code of 1986), the terms of which provide that the value of the securities cannot be less than the guaranteed minimum value specified by the plan on such date.
“(C) COORDINATION WITH TRANSITION RULE- In applying section 401(a)(35)(H) of the Internal Revenue Code of 1986 and section 204(j)(7) of the Employee Retirement Income Security Act of 1974 (as added by this section) to employer securities to which this paragraph applies, the applicable percentage shall be determined without regard to this paragraph.”
Amendments by Sec. 411(j) 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. 611] to which they relate.
Amendments by Sec. 656(a) of Pub. L. 107-16 applicable to plan years beginning after December 31, 2004. Sec. 656(d)(2) provided the following exception:
Amendments by Sec. 1506(a) of Pub. L. 105-34 applicable to taxable years beginning after December 31, 1997.
Section 7304(a)(3) of Pub. L. 101-239 provided that: ‘The amendments made by this subsection (amending this section and sections 4978 and 4979A of this title and repealing sections 2057 and 4978A of this title) shall apply to the estates of decedents dying after the date of the enactment of this Act (Dec. 19, 1989).’
Amendment by section 7811(h)(1) of Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such amendment relates, see section 7817 of Pub. L. 101-239, set out as a note under section 1 of this title.
Section 1172(c) of Pub. L. 99-514 provided that: ‘The amendments made by this section (enacting section 2057 of this title and amending this section and section 4979A of this title) shall apply to sales after the date of the enactment of this Act (Oct. 22, 1986) with respect to which an election is made by the executor of an estate who is required to file the return of the tax imposed by the Internal Revenue Code of 1986 on a date (including extensions) after the date of the enactment of this Act.’
Section 1174(a)(2) of Pub. L. 99-514, as amended by Pub. L. 100-647, title I, Sec. 1011B(i)(2), Nov. 10, 1988, 102 Stat. 3492, provided that: ‘The amendment made by this subsection (amending this section) shall apply to distributions after December 31, 1984.’
Section 1174(b)(3) of Pub. L. 99-514 provided that: ‘The amendments made by this subsection (amending this section) shall apply to distributions attributable to stock acquired after December 31, 1986.’
Section 1174(c)(1)(B) of Pub. L. 99-514 provided that: ‘The amendment made by this paragraph (amending this section) shall apply to distributions attributable to stock acquired after December 31, 1986, except that a plan may elect to have such amendment apply to all distributions after the date of the enactment of this Act (Oct. 22, 1986).’
Amendment by section 1176(b) of Pub. L. 99-514 applicable to acquisitions of securities after Dec. 31, 1986, see section 1176(c) of Pub. L. 99-514, set out as a note under section 401 of this title.
Amendment by section 1852(a)(4)(B) 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.
Section 1854(a)(3)(C) of Pub. L. 99-514, as amended by Pub. L. 100-647, title I, Sec. 1018(t)(4)(G), Nov. 10, 1988, 102 Stat. 3588, provided that:
‘(i) Except as provided in clause (ii), the amendments made by this paragraph (amending this section and section 1042 of this title) shall apply to sales of securities after the date of the enactment of this Act (Oct. 22, 1986).
‘(ii) A taxpayer or executor may elect to have section 1042(b)(3) of the Internal Revenue Code of 1954 (as in effect before the amendment made by subparagraph (B)) apply to sales before the date of the enactment of this Act as if such section included the last sentence of section 409(n)(1) of the Internal Revenue Code of 1986 (as added by subparagraph (A)).’
Section 1854(f)(4)(A), (B) of Pub. L. 99-514 provided that:
‘(A) The amendments made by paragraph (1)(A) and (3) (amending this section and sections 1042 and 4975 of this title) shall take effect on the date of the enactment of this Act (Oct. 22, 1986).’
‘(B) The amendments made by subparagraphs (B), (C), and (D) of paragraph (1) (amending this section) shall apply after December 31, 1986, to stock acquired after December 31, 1979.’
Amendment by section 474(r)(15) of Pub. L. 98-369 applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years, see section 475(a) of Pub. L. 98-369, set out as a note under section 21 of this title.
Redesignation of section 409A as 409 by section 491(e)(1) of Pub. L. 98-369 effective Jan. 1, 1984, see section 491(f)(3) of Pub. L. 98-369, set out as a note under section 401 of this title.
Amendment by section 331(c)(1) of Pub. L. 97-34 applicable to taxable years ending after Dec. 31, 1982, see section 331(f)(2) of Pub. L. 97-34, set out as a note under section 404 of this title.
Section 337(b) of Pub. L. 97-34, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘The amendments made by this section (amending this section) shall apply to distributions described in section 409A(d) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954 ) (or any corresponding provision of prior law) made after March 29, 1975.'
Amendment by sections 334 and 336 of Pub. L. 97-34 applicable to taxable years beginning after Dec. 31, 1981, see section 339 of Pub. L. 97-34, set out as a note under section 401 of this title.
Section 224(b) of Pub. L. 96-605 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply with respect to qualified investment for taxable years beginning after December 31, 1978.’
Section 141(g) of Pub. L. 95-600, as added Pub. L. 96-222, title I, Sec. 101(a)(7)(B), Apr. 1, 1980, 94 Stat. 197, and amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(1) In general. - Except as otherwise provided in this subsection and subsection (h) (set out as an Effective Date of 1978 Amendment note under section 4975 of this title), the amendments made by this section (enacting sections 409A (now 409) and 6699 of this title and amending sections 46, 48, 56, 401, 404, 415, 805, 1504, and 4975 of this title) shall apply with respect to qualified investment for taxable years beginning after December 31, 1978.
‘(2) Election to have amendments apply during 1978. - At the election of the taxpayer, paragraph (1) shall be applied by substituting ‘December 31, 1977’ for ‘December 31, 1978’; except that in the case of a plan in existence before December 31, 1978, any such election shall not affect the required allocation of employer securities attributable to qualified investment for taxable years beginning before January 1, 1979. An election under the preceding sentence shall be made at such time and in such manner as the Secretary of the Treasury or his delegate shall prescribe. Such an election, once made, shall be irrevocable.
‘(3) Voting right provisions. - Section 409A(e) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954 ) (as added by subsection (a)) (now section 409) shall apply to plans to which section 409A of such Code applies, beginning with the first day of such application.
‘(4) Right to demand employer securities, etc. - Paragraphs (1)(A) and (2) of section 409A(h) of the Internal Revenue Code of 1986 (as added by subsection (a)) (now section 409) shall apply to distributions after December 31, 1978, made by a plan to which section 409A of such Code applies.
‘(5) Subsection (f)(7). - The amendment made by subsection (f)(7) (amending section 415 of this title) shall apply to years beginning after December 31, 1978.
‘(6) Retroactive application of amendment made by subsection (d). - In determining the regular tax deduction under section 56(c) of the Internal Revenue Code of 1986 for any taxable year beginning before January 1, 1979, the amount of the credit allowable under section 38 of such Code shall be determined without regard to section 46(a)(2)(B) of such Code (as in effect before the enactment of the Energy Tax Act of 1978 (Nov. 9, 1978)).’
A prior section 409, added Pub. L. 93-406, title II, Sec. 2002(c), Sept. 2, 1974, 88 Stat. 964, and amended Pub. L. 94-455, title XV, Sec. 1501(b)(6), title XIX, Sec. 1901(a)(60), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1736, 1774, 1834; Pub. L. 95-600, title I, Sec. 156(c)(2), (3), 157(e)(1)(B), Nov. 6, 1978, 92 Stat. 2803, 2806; Pub. L. 96-222, title I, Sec. 101(a)(14)(B), Apr. 1, 1980, 94 Stat. 204; Pub. L. 97-34, title III, Sec. 311(g)(1)(D), (3), Aug. 13, 1981, 95 Stat. 281; Pub. L. 97-248, title II, Sec. 243(b)(1)(B), title III, Sec. 335(a)(2), Sept. 3, 1982, 96 Stat. 523, 628; Pub. L. 97-452, Sec. 2(c)(1), Jan. 12, 1983, 96 Stat. 2478; Pub. L. 98-369, div. A, title I, Sec. 42(a)(7), title V, Sec. 522(d)(13), July 18, 1984, 98 Stat. 557, 871, which related to retirement bonds, was repealed by Pub. L. 98-369, div. A, title IV, Sec. 491(b), (f)(1), July 18, 1984, 98 Stat. 848, 853, applicable to obligations issued after Dec. 31, 1983.