Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_457
Timestamp: 2020-07-06 17:58:06
Document Index: 320066008

Matched Legal Cases: ['§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457', '§ 457']

Internal Revenue Code, § 457. Deferred Compensation Plans Of State And Local Governments And Tax-Exempt Organizations
I.R.C. § 457(a) Year Of Inclusion In Gross Income
I.R.C. § 457(a)(1) In General —
I.R.C. § 457(a)(1)(A) —
I.R.C. § 457(a)(1)(B) —
I.R.C. § 457(a)(2) Special Rule For Rollover Amounts —
I.R.C. § 457(a)(3) Special Rule For Health And Long-Term Care Insurance —
I.R.C. § 457(b) Eligible Deferred Compensation Plan Defined —
I.R.C. § 457(b)(1) —
I.R.C. § 457(b)(2) —
I.R.C. § 457(b)(2)(A) —
I.R.C. § 457(b)(2)(B) —
100 percent of the participant's includible compensation,
I.R.C. § 457(b)(3) —
which may provide that, for 1 or more of the participant's last 3 taxable years ending before he attains normal retirement age under the plan, the ceiling set forth in paragraph (2) shall be the lesser of—
I.R.C. § 457(b)(3)(A) —
I.R.C. § 457(b)(3)(B) —
I.R.C. § 457(b)(3)(B)(i) —
I.R.C. § 457(b)(3)(B)(ii) —
I.R.C. § 457(b)(4) —
I.R.C. § 457(b)(5) —
I.R.C. § 457(b)(6) —
I.R.C. § 457(b)(6)(A) —
I.R.C. § 457(b)(6)(B) —
I.R.C. § 457(b)(6)(C) —
all income attributable to such amounts, property, or rights, shall remain (until made available to the participant or other beneficiary) solely the property and rights of the employer (without being restricted to the provision of benefits under the plan), subject only to the claims of the employer's general creditors.
I.R.C. § 457(c) Limitation —
I.R.C. § 457(d) Distribution Requirements
I.R.C. § 457(d)(1) In General —
I.R.C. § 457(d)(1)(A) —
I.R.C. § 457(d)(1)(A)(i) —
the calendar year in which the participant attains age 701⁄2 (in the case of a plan maintained by an employer described in subsection (e)(1)(A), age 591⁄2),
I.R.C. § 457(d)(1)(A)(ii) —
when the participant has a severance from employment with the employer,
I.R.C. § 457(d)(1)(A)(iii) —
when the participant is faced with an unforeseeable emergency (determined in the manner prescribed by the Secretary in regulations), or
I.R.C. § 457(d)(1)(A)(iv) —
I.R.C. § 457(d)(1)(B) —
the plan meets the minimum distribution requirements of paragraph (2),
I.R.C. § 457(d)(1)(C) —
in the case of a plan maintained by an employer described in subsection (e)(1)(A), the plan meets requirements similar to the requirements of section 401(a)(31), and
I.R.C. § 457(d)(1)(D) —
I.R.C. § 457(d)(2) Minimum Distribution Requirements —
I.R.C. § 457(d)(3) Special Rule For Government Plan —
I.R.C. § 457(e) Other Definitions And Special Rules —
I.R.C. § 457(e)(1) Eligible Employer —
I.R.C. § 457(e)(1)(A) —
I.R.C. § 457(e)(1)(B) —
I.R.C. § 457(e)(2) Performance Of Service —
I.R.C. § 457(e)(3) Participant —
I.R.C. § 457(e)(4) Beneficiary —
I.R.C. § 457(e)(5) Includible Compensation —
The term “includible compensation” has the meaning given to the term “participant's compensation” by section 415(c)(3).
I.R.C. § 457(e)(6) Compensation Taken Into Account At Present Value —
I.R.C. § 457(e)(7) Community Property Laws —
I.R.C. § 457(e)(8) Income Attributable —
I.R.C. § 457(e)(9) Benefits Of Tax Exempt Organization Plans Not Treated As Made Available By Reason Of Certain Elections, Etc. —
I.R.C. § 457(e)(9)(A) Total Amount Payable Is Dollar Limit Or Less —
The total amount payable to a participant under the plan shall not be treated as made available merely because the participant may elect to receive such amount (or the plan may distribute such amount without the participant's consent) if—
I.R.C. § 457(e)(9)(A)(i) —
I.R.C. § 457(e)(9)(A)(ii) —
I.R.C. § 457(e)(9)(A)(ii)(I) —
I.R.C. § 457(e)(9)(A)(ii)(II) —
I.R.C. § 457(e)(9)(B) Election To Defer Commencement Of Distributions —
I.R.C. § 457(e)(9)(B)(i) —
I.R.C. § 457(e)(9)(B)(ii) —
I.R.C. § 457(e)(10) Transfers Between Plans —
I.R.C. § 457(e)(11) Certain Plans Excluded
I.R.C. § 457(e)(11)(A) In General —
I.R.C. § 457(e)(11)(A)(i) —
I.R.C. § 457(e)(11)(A)(ii) —
I.R.C. § 457(e)(11)(B) Special Rules Applicable To Length Of Service Award Plans
I.R.C. § 457(e)(11)(B)(i) Bona Fide Volunteer —
I.R.C. § 457(e)(11)(B)(i)(I) —
I.R.C. § 457(e)(11)(B)(i)(II) —
I.R.C. § 457(e)(11)(B)(ii) Limitation On Accruals —
I.R.C. § 457(e)(11)(B)(iii) Cost Of Living Adjustment —
I.R.C. § 457(e)(11)(B)(iv) Special Rule For Application Of Limitation on Accruals For Certain Plans —
I.R.C. § 457(e)(11)(C) Qualified Services —
I.R.C. § 457(e)(11)(D) Certain Voluntary Early Retirement Incentive Plans
I.R.C. § 457(e)(11)(D)(i) In General —
I.R.C. § 457(e)(11)(D)(i)(I) —
I.R.C. § 457(e)(11)(D)(i)(II) —
I.R.C. § 457(e)(11)(D)(ii) Applicable Voluntary Early Retirement Incentive Plan —
I.R.C. § 457(e)(11)(D)(ii)(I) —
I.R.C. § 457(e)(11)(D)(ii)(II) —
I.R.C. § 457(e)(12) Exception For Nonelective Deferred Compensation Of Nonemployees
I.R.C. § 457(e)(12)(A) In General —
I.R.C. § 457(e)(12)(B) Nonelective Deferred Compensation —
I.R.C. § 457(e)(13) Special Rule For Churches —
I.R.C. § 457(e)(14) Treatment Of Qualified Governmental Excess Benefit Arrangements —
I.R.C. § 457(e)(15) Applicable Dollar Amount
I.R.C. § 457(e)(15)(A) In General —
I.R.C. § 457(e)(15)(B) Cost-Of-Living Adjustments —
I.R.C. § 457(e)(16) Rollover Amounts
I.R.C. § 457(e)(16)(A) General Rule —
I.R.C. § 457(e)(16)(A)(i) —
I.R.C. § 457(e)(16)(A)(ii) —
I.R.C. § 457(e)(16)(A)(iii) —
I.R.C. § 457(e)(16)(B) Certain Rules Made Applicable —
I.R.C. § 457(e)(16)(C) Reporting —
I.R.C. § 457(e)(17) Trustee-To-Trustee Transfers To Purchase Permissive Service Credit —
I.R.C. § 457(e)(17)(A) —
I.R.C. § 457(e)(17)(B) —
I.R.C. § 457(e)(18) Coordination With Catch-Up Contributions For Individuals Age 50 Or Older —
I.R.C. § 457(e)(18)(A) —
I.R.C. § 457(e)(18)(A)(i) —
I.R.C. § 457(e)(18)(A)(ii) —
I.R.C. § 457(e)(18)(B) —
I.R.C. § 457(f) Tax Treatment Of Participants Where Plan Or Arrangement Of Employer Is Not Eligible
I.R.C. § 457(f)(1) In General —
I.R.C. § 457(f)(1)(A) —
I.R.C. § 457(f)(1)(B) —
I.R.C. § 457(f)(2) Exceptions —
I.R.C. § 457(f)(2)(A) —
I.R.C. § 457(f)(2)(B) —
I.R.C. § 457(f)(2)(C) —
I.R.C. § 457(f)(2)(D) —
I.R.C. § 457(f)(2)(E) —
I.R.C. § 457(f)(2)(F) —
I.R.C. § 457(f)(3) Definitions —
I.R.C. § 457(f)(3)(A) Plan Includes Arrangements, Etc. —
I.R.C. § 457(f)(3)(B) Substantial Risk Of Forfeiture —
I.R.C. § 457(f)(4) Employment Retention Plans —
I.R.C. § 457(f)(4)(A) In General —
I.R.C. § 457(f)(4)(B) Other Rules
I.R.C. § 457(f)(4)(B)(i) Limitation —
I.R.C. § 457(f)(4)(B)(ii) Treatment —
I.R.C. § 457(f)(4)(C) Applicable Employment Retention Plan —
The term “applicable employment retention plan" means an employment retention plan maintained by—
I.R.C. § 457(f)(4)(C)(i) —
a local educational agency (as defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)), or
I.R.C. § 457(f)(4)(C)(ii) —
I.R.C. § 457(f)(4)(D) Employment Retention Plan —
I.R.C. § 457(f)(4)(D)(i) —
I.R.C. § 457(f)(4)(D)(ii) —
rewarding such employee for the employee's service with 1 or more such agencies or associations.
I.R.C. § 457(g) Governmental Plans Must Maintain Set-Asides For Exclusive Benefit Of Participants
I.R.C. § 457(g)(1) In General —
I.R.C. § 457(g)(2) Taxability Of Trusts And Participants —
I.R.C. § 457(g)(2)(A) —
I.R.C. § 457(g)(2)(B) —
I.R.C. § 457(g)(3) Custodial Accounts And Contracts —
I.R.C. § 457(g)(4) Death Benefits Under USERRA-Qualified Active Military Service —
(Added by Pub. L. 95-600, title I, Sec. 131(a), Nov. 6, 1978, 92 Stat. 2779, and amended by Pub. L. 96-222, title I, Sec. 101(a)(4), Apr. 1, 1980, 94 Stat. 196; Pub. L. 98-369, div. A, title IV, Sec. 491(d)(33), July 18, 1984, 98 Stat. 851; Pub. L. 99-514, title XI, Sec. 1107(a), Oct. 22, 1986, 100 Stat. 2426; Pub. L. 100-647, title I, Sec. 1011(e)(1), (2), (9), (10), title VI, Sec. 6064(a)-(c), 6071(c), Nov. 10, 1988, 102 Stat. 3460, 3461, 3700, 3701, 3705; Pub. L. 101-239, title VII, Sec. 7811(g)(4), (5), 7816(j), Dec. 19, 1989, 103 Stat. 2409, 2421; Pub. L. 102-318, title V, Sec. 521(b)(26), July 3, 1992; Pub. L. 104-188, title I, Sec. 1421(b)(3)(C), 1444(b)(3), 1447(a), (b), 1448(a), (b), 1458(a), Aug. 20, 1996, 110 Stat. 1755; Pub. L. 105-34, title X, Sec. 1071(a)(2), Aug. 5, 1997, 111 Stat 788; Pub. L. 107-16, title VI, Sec. 611, 615, 632, 641, 646, 647, 648, 649, June 7, 2001, 115 Stat. 38; Pub. L. 107-147, title IV, Sec. 411(o)(9), 411(p)(5), Mar. 9, 2002, 116 Stat. 21; Pub. L. 109-280, title VIII, XI, Sec. 829(a)(4), 845(b)(3), 1104, Aug. 17, 2006, 120 Stat. 780; Pub. L. 110-245, Sec. 104(c)(3), June 17, 2008, 122 Stat. 1624; Pub. L. 113-295, Div. A, title II, Sec. 221(a)(57)(H), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-95, title IX, Sec. 9215(uu), Dec. 10, 2015, 129 Stat. 1801; Pub. L. 115-97, title I, 13612(a), (b), (c), Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(112), Mar. 23, 2018, 132 Stat. 348; Pub. L. 116-94, Div. M, Sec. 104(b), Div. O, title I, Sec. 109(d), Dec. 20, 2019.)
2019—Subsec. (d)(1)(A)(i). Pub. L. 116-94, Div. A, Sec. 104(b), amended clause (i) by inserting ‘‘(in the case of a plan maintained by an employer described in subsection (e)(1)(A), age 591⁄2)’’ before the comma at the end.
Subsec. (d)(1)(A)(ii)-(iv). Pub. L. 116-94, Div. O, Sec. 109(d)(1), amended subpar. (A) by striking “or” at the end of clause (ii), by inserting “or” at then end of clause (iii), and by adding clause (iv).
Subsec. (d)(1)(B)-(D). Pub. L. 116-94, Div. O, Sec. 109(d)(2), amended par. (1) by striking “and” at the end of subpar. (B), by substituting “, and” for the period at the end of subpar. (C), and by adding subpar. (D).
2018—Subsec. (f)(4)(C)(i). Pub. L. 115-141, Div. U, Sec. 401(a)(112), amended clause (i) by substituting “section 8101” for “section 9101”; substituting “7801))” for “7801)”.
2017 — Subsec. (e)(11)(B). Pub. L. 115-97, Sec. 13612(a), amended clause (ii) by striking ‘‘$3,000’’ and inserting ‘‘$6,000’’.
Subsec. (e)(11)(B). Pub. L. 115-97, Sec. 13612(b), (c), amended subpar. (B) by adding new clauses (iii) and (iv).
2015 — Subsec. (e)(11)(D)(ii)(I). Pub. L. 114-95, Sec. 9215(uu)(2), amended subclause (I) by substituting “section 8101 of the Elementary and Secondary Education Act of 1965” for “section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)”.
2014 — Subsec. (e)(15)(A). Pub. L. 113-295, Div. A, Sec. 221(a)(57)(H), amended subpar. (A) by substituting “is $15,000” for “shall be the amount determined in accordance with the following table:
For taxable years beginning    The applicable dollar amount:
2002                               $11,000
2003                               $12,000
2004                               $13,000
2005                               $14,000
2006 or thereafter                 $15,000.”
2008 - Subsec. (g)(4). Pub. L. 110-245, Sec. 104(c)(3), added. par. (4).
2006 - Subsec. (a)(3). Pub. L. 109-280, Sec. 845(b)(3), added par. (3).
Subsec. (e)(11)(D). Pub. L. 109-280, Sec. 1104(a)(1), added subpar. (D).
Subsec.(e)(16)(B). Pub. L. 109-280, Sec. 829(a)(4), amended subpar. (B) by substituting “, (9), and (11)” for “and (9)”.
Subsec. (f)(2)(D)-(F). Pub. L. 109-280, Sec. 1104(b)(1), amended par. (2) by striking “and” at the end of subpar. (E), by substituting “, and” for the period at the end of subpar. (E), and by adding subpar. (F).
Subsec. (f)(4). Pub. L. 109-280, Sec. 1104(b)(2), added par. (4).
2002 - Subsec. (e)(5). Pub. L. 107-147, Sec. 411(p)(5), amended par. (5). Before amendment it read as follows:
“(5) Includible compensation
“The term “includible compensation” means compensation for service performed for the employer which (taking into account the provisions of this section and other provisions of this chapter) is currently includible in gross income.”
Subsec. (e)(18). Pub. L. 107-147, Sec. 411(o)(9), added par. (18).
2001 - Subsec. (a). Pub. L. 107-16, Sec. 649(b)(1), amended subsec. (a). Before amendment it read as follows:
“(a) Year of inclusion in gross income
In the case of a participant in an eligible deferred compensation plan, any amount of compensation deferred under the plan, and any income attributable to the amounts so deferred, shall be includible in gross income only for the taxable year in which such compensation or other income is paid or otherwise made available to the participant or other beneficiary.”
Subsec. (b)(2). Pub. L. 107-16, Sec. 641(a)(1)(B), amended par. (2) by inserting “(other than rollover amounts)” after “taxable year”.
Subsec. (b)(2)(A). Pub. L. 107-16, Sec. 611(e)(1)(A), amended subpar. (A) by substituting “the applicable dollar amount" for “$7,500” each place it appeared.
Subsec. (b)(2)(B). Pub. L. 107-16, Sec. 632(c)(1), amended subpar. (B) by substituting “100 percent” for “33 1/3 percent”.
Subsec. (b)(3)(A). Pub. L. 107-16, Sec. 611(e)(1)(B), amended subpar. (A) by substituting “twice the dollar amount in effect under subsection (b)(2)(A)” for “$15,000”.
Subsec. (c)(1). Pub. L. 107-16, Sec. 611(e)(1)(A), amended par. (1) by substituting “the applicable dollar amount” for “$7,500”.
Subsec. (c)(2). Pub. L. 107-16, Sec. 611(d)(3)(B), amended par. (2) by substituting “402(g)(7)(A)(iii)” for “402(g)(8)(A)(iii)”.
Subsec. (c). Pub. L. 107-16, Sec. 615(a), amended subsec. (c), as amended by Sec. 611 of the Act. Before amendment by Sec. 615(a), it read as follows:
“(c) Individuals who are participants in more than 1 plan
“The maximum amount of the compensation of any one individual which may be deferred under subsection (a) during any taxable year shall not exceed the applicable dollar amount (as modified by any adjustment provided under subsection (b)(3)).
“(2) Coordination with certain other deferrals
“In applying paragraph (1) of this subsection--
“(A) any amount excluded from gross income under section 403(b) for the taxable year, and
“(B) any amount--
“(ii) with respect to which a deduction is allowable by reason of a contribution to an organization described in section 501(c)(18) for the taxable year, shall be treated as an amount deferred under subsection (a). In applying section 402(g)(7)(A)(iii) or 403(b)(2)(A)(ii), an amount deferred under subsection (a) for any year of service shall be taken into account as if described in section 402(g)(3)(C) or 403(b)(2)(A)(ii), respectively. Subparagraph (B) shall not apply in the case of a participant in a rural cooperative plan (as defined in section 401(k)(7)).”
Subsec. (d)(1)(A). Pub. L. 107-16, Sec. 641(a)(1)(C), amended subpar. (A) by striking “and” at the end, amended subpar. (B) by substituting “, and” for the period at the end, and added subpar. (C).
Subsec. (d)(1)(A)(ii). Pub. L. 107-16, Sec. 646(a)(3), amended clause (ii) by substituting “has a severance from employment" for “is separated from servicce”.
Subsec. (d)(2). Pub. L. 107-16, Sec. 649(a), amended par. (2). Before amendment it read as follows:
“(2) Minimum distribution requirements
“A plan meets the minimum distribution requirements of this paragraph if such plan meets the requirements of subparagraphs (A), (B), and (C):
“(A) Application of section 401(a)(9)
“A plan meets the requirements of this subparagraph if the plan meets the requirements of section 401(a)(9).
“(B) Additional distribution requirements
“A plan meets the requirements of this subparagraph if--
“(i) in the case of a distribution beginning before the death of the participant, such distribution will be made in a form under which--
“(I)the amounts payable with respect to the participant will be paid at times specified by the Secretary which are not later than the time determined under section 401(a)(9)(G) (relating to incidental death benefits), and
“(II) any amount not distributed to the participant during his life will be distributed after the death of the participant at least as rapidly as under the method of distributions being used under subclause (I) as of the date of his death, or
“(ii) in the case of a distribution which does not begin before the death of the participant, the entire amount payable with respect to the participant will be paid during a period not to exceed 15 years (or the life expectancy of the surviving spouse if such spouse is the beneficiary).
“(C) Nonincreasing benefits
“A plan meets the requirements of this subparagraph if any distribution payable over a period of more than 1 year can only be made in substantially nonincreasing amounts (paid not less frequently than annually).”
Subsec. (d)(3). Pub. L. 107-16, Sec. 649(b)(2)(B), added par. (3).
Subsec. (e)(9). Pub. L. 107-16, Sec. 649(b)(2)(A), amended par. (9) by amending the language that preceded subpar. (A). Before amendment it read as follows: “(9) Benefits not treated as made available by reason of certain elections, etc.”.
Subsec. (e)(9)(A)(i). Pub. L. 107-16, Sec. 648(b), amended clause (i) by substituting “the portion of such amount which is not attributable to rollover contriubtions (as defined in section 411(a)(11)(D))” for “such amount”.
Subsec. (e)(15). Pub. L. 107-16, Sec. 611(e)(2), amended par. (15). Before amendment it read as follows:
“(15) Cost-of-living adjustment of maximum deferral amount
The Secretary shall adjust the $7,500 amount specified in subsections (b)(2) and (c)(1) at the same time and in the same manner as under section 415(d), except that the base period shall be the calendar quarter ending September 30, 1994, and any increase under this paragraph which is not a multiple of $500 shall be rounded to the next lowest multiple of $500.”
Subsec. (e)(16). Pub. L. 107-16, Sec. 641(a)(1)(A), added par. (16).
Subsec. (e)(17). Pub. L. 107-16, Sec. 647(b), added par. (17).
1997 - Subsec. (e)(9). Pub. L. 105-34, Sec. 1071(a)(2)(A), amended par. (9) by substituting “the dollar limit under section 411(a)(11)(A)" for “$3,500” except in the heading.
Subsec. (e)(9)(A). Pub. L. 105-34, Sec. 1071(a)(2)(B), amended the heading of subpar. (A) by substituting “dollar limit" for “$3,500”.
1996 - Subsec. (b)(6). Pub. L. 104-188, Sec. 1448(b), inserted “except as provided in subsection (g),” before “which provides that”.
Subsec. (c)(2)(B). Pub. L. 104-188, Sec. 1421(b)(3), substituted “section 402(h)(1)(B) or (k)” for “section 402(h)(1)(B)" in clause (i).
Subsec. (e)(9). Pub. L. 104-188, Sec. 1447(a), amended par. (9). Before amendment, par. (9) read as follows:
“(9) Benefits not treated as made available by reason of certain elections
(A) the total amount payable to a participant under the plan does not exceed $3,500, and
(B) no additional amounts may be deferred under the plan with respect to the participant, the amount payable to the participant under the plan shall not be treated as made available merely because such participant may elect to receive a lump sum payable after separation from service and within 60 days of the election.”
Subsec. (e)(11). Pub. L. 104-188, Sec. 1458(a), amended par. (11). Before amendment, par. (11) read as follows:
“(11) Certain plans excepted--Any bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plan shall be treated as a plan not providing for the deferral of compensation.”
Subsec. (e)(14). Pub. L. 104-188, Sec. 1444(b)(2), added par. (14).
Subsec. (e)(15). Pub. L. 104-188, Sec. 1447(b), added par. (15).
Subsec. (f)(2). Pub. L. 104-188, Sec. 1444(b)(3), struck “and” from subpar. (C), substituted “, and” for “.” at the end of subpar. (D), and added subpar. (E).
Subsec. (g). Pub. L. 104-188, Sec. 1448(a), added subsec. (g).
1992 - Subsec. (c)(2)(B)(i). Pub. L. 102-318, Sec. 521(b)(26), amended clause (i) by substituting “section 402(e)(3)” for “402(a)(8)”.
1989 - Subsec. (d)(1)(A)(iii). Pub. L. 101-239, Sec. 7811(g)(4), substituted ‘, and’ for period at end.
Subsec. (d)(2)(B)(i)(I). Pub. L. 101-239, Sec. 7811(g)(5), inserted ‘and’ at end.
Subsec. (e)(13). Pub. L. 101-239, Sec. 7816(j) , substituted ‘Special rule for churches’ for ‘Exception for church plans’ in heading and amended text generally. Prior to amendment, text read as follows: ‘The term ‘eligible deferred compensation plan’ shall not include a plan maintained by a church for church employees. For purposes of this paragraph, the term ‘church’ has the meaning given such term by section 3121(w)(3)(A), including a qualified church-controlled organization (as defined in section 3121(w)(3)(B)).'
1988 - Subsec. (c)(2). Pub. L. 100-647, Sec. 1011(e)(1), struck out ‘and paragraphs (2) and (3) of subsection (b)’ after ‘of this subsection’.
Pub. L. 100-647, Sec. 6071(c), substituted ‘rural cooperative plan’ for ‘rural electric cooperative plan’ in last sentence.
Subsec. (d)(1)(A). Pub. L. 100-647, Sec. 1011(e)(2), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘the plan provides that amounts payable under the plan will be made available to participants or other beneficiaries not earlier than when the participant is separated from service with the employer or is faced with an unforeseeable emergency (determined in the manner prescribed by the Secretary by regulation), and’.
Subsec. (d)(2)(B)(i)(I). Pub. L. 100-647, Sec. 1011(e)(10), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: ‘at least 2/3 of the total amount payable with respect to the participant will be paid during the life expectancy of such participant (determined as of the commencement of the distribution), and’.
Subsec. (d)(10). Pub. L. 100-647, Sec. 6064(a)(2), amended subsec. (d), as in effect on the day before the date of enactment of Pub. L. 99-514 (Oct. 22, 1986), by adding par. (10) reading as follows: ‘Certain plans excepted. - Any bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plan shall be treated as a plan not providing for the deferral of compensation.’
Subsec. (d)(11). Pub. L. 100-647, Sec. 6064(b)(2), amended subsec. (d), as in effect on the day before the date of enactment of Pub. L. 99-514 (Oct. 22, 1986), by adding par. (11) reading as follows: ‘Exception for nonelective deferred compensation of nonemployees. -
‘(A) In general. - This section shall not apply to nonelective deferred compensation attributable to services not performed as an employee.
‘(B) Nonelective deferred compensation. - For purposes of subparagraph (a), deferred compensation shall be treated as nonelective only if all individuals (other than those who have not satisfied any applicable initial service requirement) with the same relationship to the payor are covered under the same plan with no individual variations or options under the plan.’
Subsec. (e)(9). Pub. L. 100-647, Sec. 1011(e)(9), inserted ‘after separation from service and’ after ‘lump sum payable’ in concluding provisions.
Subsec. (e)(11). Pub. L. 100-647, Sec. 6064(a)(1), added par. (11).
Subsec. (e)(12). Pub. L. 100-647, Sec. 6064(b)(1), added par. (12).
Subsec. (e)(13). Pub. L. 100-647, Sec. 6064(c), added par. (13).
1986 - Pub. L. 99-514 amended section generally, substituting ‘Deferred compensation plans of State and local governments and tax-exempt organizations’ for ‘Deferred compensation plans with respect to service for State and local governments’ as section catchline and revising and restating as subsecs. (a) to (c), (e), and (f) provisions formerly contained in subsecs. (a) to (e) and adding provisions comprising subsec. (d).
1984 - Subsec. (e)(2). Pub. L. 98-369, Sec. 491(d)(33), struck out subpar. (C) which provided that par. (1) of this subsection not apply to a qualified bond purchase plan described in section 405(a), and redesignated subpars. (D) and (E) as (C) and (D), respectively.
1980 - Subsec. (d)(9)(B). Pub. L. 96-222 in cl. (i) struck out ‘described in section 501(c)(12)’ after ‘any organization’ and substituted ‘electric service on a mutual or cooperative basis’ for ‘electric service’ and in cl. (ii) substituted ‘paragraph (4) or (6) of section 501(a)’ for ‘section 501(c)(6)’ and ‘at least 80 percent of the members’ for ‘all the members’.
Amendment by Pub. L. 116-94, Div. M, Sec. 104(b), effective for plan years beginning after December 31, 2019.
Amendments by Pub. L. 116-94, Div. O, Sec. 109(d), is effective for plan years beginning after December 31, 2019.
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(112), effective March 23, 2018.
Amendments by Pub. L. 115-97, Sec. 13612, effective for taxable years beginning after December 31, 2017.
Amendment by Pub. L. 114-95, Sec. 9215(uu), effective on the date of the enactment of this Act [Enacted: Dec. 10, 2015].
Amendment by Pub. L. 113-295, Div. A, Sec. 221(a)(57)(H), effective on the date of the enactment of this Act [Enacted: Dec. 19, 2014].
Amendment by Sec. 104(c)(3) 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:
Amendment by Sec. 829 of Pub. L. 109-280 effective for distributions after December 31, 2006.
Amendment by Sec. 845 of Pub. L. 109-280 effective for distributions in taxable years beginning after December 31, 2006.
Amendments by Sec. 1104 of Pub. L. 109-280 effective for taxable years ending after the date of the enactment of this Act [Enacted: Aug. 17, 2006].
Amendment by Sec. 411(o)(9) of Pub. L. 107-147 appicable as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16, Sec. 631] to which it relates.
Amendment by Sec. 411(p)(5) 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 it relates.
Amendments by Sec. 615(a) of Pub. L. 107-16 applicable to years beginning after December 31, 2001.
Amendments by Sec. 632(c) of Pub. L. 107-16 applicable to years beginning after December 31, 2001.
Amendments by Sec. 641 of Pub. L. 107-16 applicable to distributions after December 31, 2001. Sec. 641(f) of Pub. L. 107-16 provided the following special rules:
“(2) REASONABLE NOTICE.--No penalty shall be imposed on a plan for the failure to provide the information required by the amendment made by subsection (c) with respect to any distribution made before the date that is 90 days after the date on which the Secretary of the Treasury issues a safe harbor rollover notice after the date of the enactment of this Act, if the administrator of such plan makes a reasonable attempt to comply with such requirement.
“(3) SPECIAL RULE.--Notwithstanding any other provision of law, subsections (h)(3) and (h)(5) of section 1122 of the Tax Reform Act of 1986 shall not apply to any distribution from an eligible retirement plan (as defined in clause (iii) or (iv) of section 402(c)(8)(B) of the Internal Revenue Code of 1986) on behalf of an individual if there was a rollover to such plan on behalf of such individual which is permitted solely by reason of any amendment made by this section.”
Amendments by Sec. 646 of Pub. L. 107-16 applicable to distributions after December 31, 2001.
Amendments by Sec. 647 of Pub. L. 107-16 applicable to trustee-to-trustee transfers after December 31, 2001.
Amendments by Sec. 648 of Pub. L. 107-16 applicable to distributions after December 31, 2001.
Amendments by Sec. 649 of Pub. L. 107-16 applicable to distributions after December 31, 2001.
Amendments by Sec. 1071(a) of Pub. L. 105-34 applicable to plan years beginning after the date of the enactment of this Act [Aug. 5, 1997].
Amendment by Pub. L. 104-188, Sec. 1421(b)(3), effective for taxable years beginning after December 31, 1996
Amendments by Pub. L. 104-188, Sec. 1444(b), effective for years beginning after December 31, 1994. Sec. 1444(e)(2) provided that: “Nothing in the amendments made by this section shall be construed to imply that a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986) fails to satisfy the requirements of section 415 of such Code for any taxable year beginning before January 1, 1995.”
Amendments by Pub. L. 104-188, Sec. 1447, effective for taxable years beginning after December 31, 1996.
Amendments by Pub. L. 104-188, Sec. 1448, effective for assets and income described in section 457(b)(6) of the Internal Revenue Code of 1986 held by a plan on or after the date of the enactment of this Act [Aug. 20, 1996]. Sec. 1448(c)(2) provided the following transition rule:
(2) Transition rule.--In the case of a plan in existence on the date of the enactment of this Act [Aug. 20, 1996], a trust need not be established by reason of the amendments made by this section before January 1, 1999.
Amendment by Pub. L. 104-188, Sec. 1458(b), effective for remuneration paid after December 31, 1996.
Amendment by Pub. L. 102-318, Sec. 521(b)(26), effective for distributions after December 31, 1992.
Section 1011(e)(9) of Pub. L. 100-647 provided that the amendment made by that section is effective for years beginning after Dec. 31, 1988.
Amendment by section 1011(e)(1), (2), (10) 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 6064(d) of Pub. L. 100-647 provided that:
‘(1) In general. - The amendments made by this section (amending this section) shall apply to taxable years beginning after December 31, 1987.
‘(2) Exception for certain collectively bargained plans. -
‘(A) In general. - Section 457 of the 1986 Code (as in effect before and after the amendments made by section 1107 of the Reform Act (Pub. L. 99-514)) shall not apply to nonelective deferred compensation provided under a plan in existence on December 31, 1987, and maintained pursuant to a collective bargaining agreement.
‘(B) Nonelective plan. - For purposes of this paragraph, a nonelective plan is a plan which covers a broad group of employees and under which the covered employees earn nonelective deferred compensation under a definite, fixed and uniform benefit formula.
‘(C) Termination. - This paragraph shall cease to apply to a plan as of the effective date of the first material modification of the plan agreed to after December 31, 1987.
‘(3) Treatment of certain nonelective deferred compensation. - Section 457 of the 1986 Code shall not apply to amounts deferred under a nonelective deferred compensation plan maintained by an eligible employer described in section 457(e)(1)(A) of the 1986 Code (as in effect after the Reform Act (Pub. L. 99-514)) -
‘(A) if such amounts were deferred from periods before July 14, 1988, or
‘(B) if -
‘(i) such amounts are deferred from periods on or after such date pursuant to an agreement which -
‘(I) was in writing on such date, and
‘(II) on such date provides for a deferral for each taxable year covered by the agreement of a fixed amount or of an amount determined pursuant to a fixed formula, and
‘(ii) the individual with respect to whom the deferral is made was covered under such agreement on such date.
Subparagraph (B) shall not apply to any taxable year ending after the date on which any modification of the amount or formula described in subparagraph (B)(i)(II) agreed to in writing before January 1, 1989, is effective. The preceding sentence shall not apply to a modification agreed to in writing before January 1, 1989, which does not increase any benefit of a participant.
Amounts described in the first sentence of this paragraph shall be taken into account for purposes of applying section 457 of the 1986 Code to other amounts deferred under any eligible deferred compensation plan.
‘(4) Study. - The Secretary of the Treasury or his delegate shall conduct a study on the tax treatment of deferred compensation paid by State and local governments and tax-exempt organizations (including deferred compensation paid to independent contractors). Not later than January 1, 1990, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on the study conducted under this paragraph together with such recommendations as he may deem advisable.’
(The due date for the report on the study referred to in section 6064(d)(4) of Pub. L. 100-647, set out above, extended to Jan. 1, 1992, by Pub. L. 101-508, title XI, Sec. 11831(b), Nov. 5, 1990, 104 Stat. 1388-559.)
Amendment by section 6071(c) of Pub. L. 100-647 applicable to taxable years beginning after Nov. 10, 1988, see section 6071(d) of Pub. L. 100-647, set out as a note under section 401 of this title.
Section 1107(c) of Pub. L. 99-514, as amended by Pub. L. 100-647, title I, Sec. 1011(e)(6), (7), Nov. 10, 1988, 102 Stat. 3461, provided that:
‘(1) In general. - Except as provided in this subsection, the amendments made by this section (amending this section) shall apply to taxable years beginning after December 31, 1988.
‘(2) Transfers and cash-outs. - Paragraphs (9) and (10) of section 457(e) of the Internal Revenue Code of 1986 (as amended by this section) shall apply to taxable years beginning after December 31, 1986.
‘(3) Application to tax-exempt organizations. -
‘(A) In general. - Except as provided in subparagraph (B), the application of section 457 of the Internal Revenue Code of 1986 by reason of the amendments made by this section to deferred compensation plans established and maintained by organizations exempt from tax shall apply to taxable years beginning after December 31, 1986.
‘(B) Existing deferrals and arrangements. - Section 457 of such Code shall not apply to amounts deferred under a plan described in subparagraph (A) which -
‘(i) were deferred from taxable years beginning before January 1, 1987, or
‘(ii) are deferred from taxable years beginning after December 31, 1986, pursuant to an agreement which -
‘(I) was in writing on August 16, 1986,
‘(II) on such date provides for a deferral for each taxable year covered by the agreement of a fixed amount or of an amount determined pursuant to a fixed formula.
Clause (ii) shall not apply to any taxable year ending after the date on which any modification to the amount or formula described in subclause (II) is effective. Amounts described in the first sentence shall be taken into account for applying section 457 to other amounts deferred under any deferred compensation plan.
This subparagraph shall only apply to individuals who were covered under the plan and agreement on August 16, 1986.
‘(4) Deferred compensation plans for state judges. - The amendments made by this section shall not apply to any qualified State judicial plan (as defined in section 131(c)(3)(B) of the Revenue Act of 1978 (set out as a note below) as amended by section 252 of the Tax Equity and Fiscal Responsibility Act of 1982).
‘(5) Special rule for certain deferred compensation plans. - The amendments made by this section shall not apply -
‘(A) to employees on August 16, 1986, of a nonprofit corporation organized under the laws of the State of Alabama maintaining a deferred compensation plan with respect to which the Internal Revenue Service issued a ruling dated March 17, 1976, that the plan would not affect the tax-exempt status of the corporation, or
‘(B) to to (sic) individuals eligible to participate on August 16, 1986, in a deferred compensation plan with respect to which a letter dated November 6, 1975, submitted the original plan to the Internal Revenue Service, an amendment was submitted on November 19, 1975, and the Internal Revenue Service responded with a letter dated December 24, 1975, but only with respect to deferrals under such plan.’
Section 131(c)(1) of Pub. L. 95-600 provided that: ‘The amendments made by this section (enacting this section) shall apply to taxable years beginning after December 31, 1978.’
Section 825 of Pub. L. 109-280 provided that:
“An individual shall not be precluded from participating in an eligible deferred compensation plan by reason of having received a distribution under section 457(e)(9) of the Internal Revenue Code of 1986, as in effect prior to the enactment of the Small Business Job Protection Act of 1996.”
Section 826 of Pub. L. 109-280 provided that:
Section 101(c)(1) of Pub. L. 109-73, before repeal by Pub. L. 109-135, Sec. 201(b)(4) (effective Dec. 21, 2005), provided that:
“(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.”
EXCEPTION FOR NONELECTIVE DEFERRED COMPENSATION
Section 885(d)(3) of Pub. L. 108-357 provided that:
“The amendments made by this section [Sec. 885] shall not apply to any nonelective deferred compensation to which section 457 of the Internal Revenue Code of 1986 does not apply by reason of section 457(e)(12) of such Code, but only if such compensation is provided under a nonqualified deferred compensation plan--
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI (Sec. 1100-1147 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.
Section 131(c)(2) of Pub. L. 95-600, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(A) In general. - In the case of any taxable year beginning after December 31, 1978, and before January 1, 1982 -
‘(i) any amount of compensation deferred under a plan of a State providing for a deferral of compensation (other than a plan described in section 457(e)(2) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954 )), and any income attributable to the amounts so deferred, shall be includible in gross income only for the taxable year in which such compensation or other income is paid or otherwise made available to the participant or other beneficiary, but
‘(ii) the maximum amount of the compensation of any one individual which may be excluded from gross income by reason of clause (i) and by reason of section 457(a) of such Code during any such taxable year shall not exceed the lesser of -
‘(I) $7,500, or
‘(II) 33 1/3 percent of the participant's includible compensation.
‘(B) Application of catch-up provisions in certain cases. - If, in the case of any participant for any taxable year, all of the plans are eligible State deferred compensation plans, then clause (ii) of subparagraph (A) of this paragraph shall be applied with the modification provided by paragraph (3) of section 457(b) of such Code.
‘(C) Applications of certain coordination provisions. - In applying clause (ii) of subparagraph (A) of this paragraph and section 403(b)(2)(A)(ii) of such Code, rules similar to the rules of section 457(c)(2) of such Code shall apply.
‘(D) Meaning of terms. - Except as otherwise provided in this paragraph, terms used in this paragraph shall have the same meaning as when used in section 457 of such Code.’
Section 131(c)(3) of Pub. L. 95-600, as added by Pub. L. 97-248, title II, Sec. 252, Sept. 3, 1982, 96 Stat. 532, and amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(A) In general. - The amendments made by this section (enacting this section and provisions set out as notes under this section) shall not apply to any qualified State judicial plan.
‘(B) Qualified state judicial plan. - For purposes of subparagraph (A), the term ‘qualified State judicial plan’ means any retirement plan of a State for the exclusive benefit of judges or their beneficiaries if -
‘(i) such plan has been continuously in existence since December 31, 1978,
‘(ii) under such plan, all judges eligible to benefit under the plan -
‘(I) are required to participate, and
‘(II) are required to contribute the same fixed percentage of their basic or regular rate of compensation as judge,
‘(iii) under such plan, no judge has an option as to contributions or benefits the exercise of which would affect the amount of includible compensation,
‘(iv) the retirement payments of a judge under the plan are a percentage of the compensation of judges of that State holding similar positions, and
‘(v) the plan during any year does not pay benefits with respect to any participant which exceed the limitations of section 415(b) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954 ).’