Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_4975
Timestamp: 2020-07-06 17:47:33
Document Index: 137309574

Matched Legal Cases: ['§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975', '§ 4975']

Internal Revenue Code, § 4975. Tax On Prohibited Transactions
I.R.C. § 4975(a) Initial Taxes On Disqualified Person —
I.R.C. § 4975(b) Additional Taxes On Disqualified Person —
I.R.C. § 4975(c) Prohibited Transaction
I.R.C. § 4975(c)(1) General Rule —
I.R.C. § 4975(c)(1)(A) —
I.R.C. § 4975(c)(1)(B) —
I.R.C. § 4975(c)(1)(C) —
I.R.C. § 4975(c)(1)(D) —
I.R.C. § 4975(c)(1)(E) —
I.R.C. § 4975(c)(1)(F) —
I.R.C. § 4975(c)(2) Special Exemption —
I.R.C. § 4975(c)(2)(A) —
I.R.C. § 4975(c)(2)(B) —
I.R.C. § 4975(c)(2)(C) —
I.R.C. § 4975(c)(3) Special Rule For Individual Retirement Accounts —
I.R.C. § 4975(c)(4) Special Rule For Archer MSAs —
I.R.C. § 4975(c)(5) Special Rule For Coverdell Education Savings Accounts —
I.R.C. § 4975(c)(6) Special Rule For Health Savings Accounts —
I.R.C. § 4975(c)(7) Special Rule For Provision Of Pharmacy Benefit Services —
Any party to an arrangement which satisfies the requirements of section 408(h) of the Employee Retirement Income Security Act of 1974 shall be exempt from the tax imposed by this section with respect to such arrangement.
I.R.C. § 4975(d) Exemptions —
I.R.C. § 4975(d)(1) —
I.R.C. § 4975(d)(1)(A) —
I.R.C. § 4975(d)(1)(B) —
I.R.C. § 4975(d)(1)(C) —
I.R.C. § 4975(d)(1)(D) —
I.R.C. § 4975(d)(1)(E) —
I.R.C. § 4975(d)(2) —
I.R.C. § 4975(d)(3) —
any loan to a leveraged employee stock ownership plan (as defined in subsection (e)(7)), if—
I.R.C. § 4975(d)(3)(A) —
I.R.C. § 4975(d)(3)(B) —
I.R.C. § 4975(d)(4) —
the investment of all or part of a plan's assets in deposits which bear a reasonable interest rate in a bank or similar financial institution supervised by the United States or a State, if such bank or other institution is a fiduciary of such plan and if—
I.R.C. § 4975(d)(4)(A) —
I.R.C. § 4975(d)(4)(B) —
I.R.C. § 4975(d)(5) —
I.R.C. § 4975(d)(5)(A) —
I.R.C. § 4975(d)(5)(B) —
I.R.C. § 4975(d)(6) —
I.R.C. § 4975(d)(6)(A) —
I.R.C. § 4975(d)(6)(B) —
I.R.C. § 4975(d)(6)(B)(i) —
I.R.C. § 4975(d)(6)(B)(ii) —
I.R.C. § 4975(d)(7) —
the exercise of a privilege to convert securities, to the extent provided in regulations of the Secretary, but only if the plan receives no less than adequate consideration pursuant to such conversion;
I.R.C. § 4975(d)(8) —
I.R.C. § 4975(d)(8)(A) —
I.R.C. § 4975(d)(8)(B) —
I.R.C. § 4975(d)(8)(C) —
I.R.C. § 4975(d)(9) —
I.R.C. § 4975(d)(10) —
I.R.C. § 4975(d)(11) —
I.R.C. § 4975(d)(12) —
I.R.C. § 4975(d)(13) —
I.R.C. § 4975(d)(14) —
I.R.C. § 4975(d)(15) —
a merger of multiemployer plans, or the transfer of assets or liabilities between multiemployer plans, determined by the Pension Benefit Guaranty Corporation to meet the requirements of section 4231 of such Act, but this paragraph shall not apply with respect to the application of subsection (c)(1) (E) or (F);
I.R.C. § 4975(d)(16) —
a sale of stock held by a trust which constitutes an individual retirement account under section 408(a) to the individual for whose benefit such account is established if—
I.R.C. § 4975(d)(16)(A) —
such stock is in a bank (as defined in section 581) or a depository institution holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1))),
I.R.C. § 4975(d)(16)(B) —
I.R.C. § 4975(d)(16)(C) —
I.R.C. § 4975(d)(16)(D) —
I.R.C. § 4975(d)(16)(E) —
I.R.C. § 4975(d)(16)(F) —
I.R.C. § 4975(d)(17) —
any transaction in connection with the provision of investment advice described in subsection (e)(3)(B) to a participant or beneficiary in a plan that permits such participant or beneficiary to direct the investment of plan assets in an individual account, if—
I.R.C. § 4975(d)(17)(A) —
I.R.C. § 4975(d)(17)(A)(i) —
I.R.C. § 4975(d)(17)(A)(ii) —
I.R.C. § 4975(d)(17)(A)(iii) —
I.R.C. § 4975(d)(17)(B) —
I.R.C. § 4975(d)(18) —
I.R.C. § 4975(d)(18)(A) —
I.R.C. § 4975(d)(18)(B) —
I.R.C. § 4975(d)(18)(C) —
the terms of the transaction, including the price, are at least as favorable to the plan as an arm's length transaction, and
I.R.C. § 4975(d)(18)(D) —
the compensation associated with the purchase and sale is not greater than the compensation associated with an arm's length transaction with an unrelated party,
I.R.C. § 4975(d)(19) —
I.R.C. § 4975(d)(19)(A) —
I.R.C. § 4975(d)(19)(A)(i) —
I.R.C. § 4975(d)(19)(A)(ii) —
I.R.C. § 4975(d)(19)(B) —
I.R.C. § 4975(d)(19)(B)(i) —
I.R.C. § 4975(d)(19)(B)(ii) —
I.R.C. § 4975(d)(19)(C) —
the price and compensation associated with the purchase and sale are not greater than the price and compensation associated with an arm's length transaction with an unrelated party,
I.R.C. § 4975(d)(19)(D) —
if the disqualified person has an ownership interest in the system or venue described in subparagraph (A), the system or venue has been authorized by the plan sponsor or other independent fiduciary for transactions described in this paragraph, and
I.R.C. § 4975(d)(19)(E) —
I.R.C. § 4975(d)(20) —
I.R.C. § 4975(d)(21) —
any foreign exchange transactions, between a bank or broker-dealer (or any affiliate of either) and a plan (as defined in this section) with respect to which such bank or broker-dealer (or affiliate) is a trustee, custodian, fiduciary, or other disqualified person, if—
I.R.C. § 4975(d)(21)(A) —
I.R.C. § 4975(d)(21)(B) —
at the time the foreign exchange transaction is entered into, the terms of the transaction are not less favorable to the plan than the terms generally available in comparable arm's length foreign exchange transactions between unrelated parties, or the terms afforded by the bank or broker-dealer (or any affiliate of either) in comparable arm's-length foreign exchange transactions involving unrelated parties,
I.R.C. § 4975(d)(21)(C) —
I.R.C. § 4975(d)(21)(D) —
I.R.C. § 4975(d)(22) —
I.R.C. § 4975(d)(22)(A) —
I.R.C. § 4975(d)(22)(B) —
I.R.C. § 4975(d)(22)(C) —
I.R.C. § 4975(d)(22)(D) —
I.R.C. § 4975(d)(22)(E) —
I.R.C. § 4975(d)(22)(F) —
I.R.C. § 4975(d)(22)(G) —
I.R.C. § 4975(d)(22)(H) —
I.R.C. § 4975(d)(22)(I) —
The written report shall also notify the plan fiduciary of the plan's right to terminate participation in the investment manager's cross-trading program at any time, or
I.R.C. § 4975(d)(23) —
I.R.C. § 4975(e) Definitions
I.R.C. § 4975(e)(1) Plan —
I.R.C. § 4975(e)(1)(A) —
I.R.C. § 4975(e)(1)(B) —
I.R.C. § 4975(e)(1)(C) —
I.R.C. § 4975(e)(1)(D) —
I.R.C. § 4975(e)(1)(E) —
I.R.C. § 4975(e)(1)(F) —
I.R.C. § 4975(e)(1)(G) —
I.R.C. § 4975(e)(2) Disqualified Person —
I.R.C. § 4975(e)(2)(A) —
I.R.C. § 4975(e)(2)(B) —
I.R.C. § 4975(e)(2)(C) —
I.R.C. § 4975(e)(2)(D) —
I.R.C. § 4975(e)(2)(E) —
I.R.C. § 4975(e)(2)(E)(i) —
I.R.C. § 4975(e)(2)(E)(ii) —
I.R.C. § 4975(e)(2)(E)(iii) —
I.R.C. § 4975(e)(2)(F) —
I.R.C. § 4975(e)(2)(G) —
I.R.C. § 4975(e)(2)(G)(i) —
I.R.C. § 4975(e)(2)(G)(ii) —
I.R.C. § 4975(e)(2)(G)(iii) —
I.R.C. § 4975(e)(2)(H) —
I.R.C. § 4975(e)(2)(I) —
I.R.C. § 4975(e)(3) Fiduciary —
For purposes of this section, the term “fiduciary" means any person who—
I.R.C. § 4975(e)(3)(A) —
I.R.C. § 4975(e)(3)(B) —
I.R.C. § 4975(e)(3)(C) —
I.R.C. § 4975(e)(4) Stockholdings —
I.R.C. § 4975(e)(5) Partnerships; Trusts —
I.R.C. § 4975(e)(6) Member Of Family —
I.R.C. § 4975(e)(7) Employee Stock Ownership Plan —
I.R.C. § 4975(e)(7)(A) —
I.R.C. § 4975(e)(7)(B) —
I.R.C. § 4975(e)(8) Qualifying Employer Security —
I.R.C. § 4975(e)(9) Section Made Applicable To Withdrawal Liability Payment Funds —
I.R.C. § 4975(e)(9)(A) In General —
I.R.C. § 4975(e)(9)(B) Disqualified Person —
I.R.C. § 4975(f) Other Definitions And Special Rules —
I.R.C. § 4975(f)(1) Joint And Several Liability —
I.R.C. § 4975(f)(2) Taxable Period —
I.R.C. § 4975(f)(2)(A) —
I.R.C. § 4975(f)(2)(B) —
I.R.C. § 4975(f)(2)(C) —
I.R.C. § 4975(f)(3) Sale Or Exchange; Encumbered Property —
I.R.C. § 4975(f)(4) Amount Involved —
I.R.C. § 4975(f)(4)(A) —
I.R.C. § 4975(f)(4)(B) —
I.R.C. § 4975(f)(5) Correction —
I.R.C. § 4975(f)(6) Exemptions Not To Apply To Certain Transactions
I.R.C. § 4975(f)(6)(A) In General —
I.R.C. § 4975(f)(6)(A)(i) —
I.R.C. § 4975(f)(6)(A)(ii) —
I.R.C. § 4975(f)(6)(A)(iii) —
I.R.C. § 4975(f)(6)(B) Special Rules For Shareholder-Employees, Etc.
I.R.C. § 4975(f)(6)(B)(i) In General —
I.R.C. § 4975(f)(6)(B)(i)(I) —
I.R.C. § 4975(f)(6)(B)(i)(II) —
I.R.C. § 4975(f)(6)(B)(i)(III) —
I.R.C. § 4975(f)(6)(B)(ii) Exception For Certain Transactions Involving Shareholder-Employees —
I.R.C. § 4975(f)(6)(B)(iii) Loan Exception —
I.R.C. § 4975(f)(6)(C) Shareholder-Employee —
I.R.C. § 4975(f)(7) S Corporation Repayment Of Loans For Qualifying Employer Securities —
I.R.C. § 4975(f)(8) Provision Of Investment Advice To Participant And Beneficiaries
I.R.C. § 4975(f)(8)(A) In General —
I.R.C. § 4975(f)(8)(B) Eligible Investment Advice Arrangement —
I.R.C. § 4975(f)(8)(B)(i) —
I.R.C. § 4975(f)(8)(B)(i)(I) —
I.R.C. § 4975(f)(8)(B)(i)(II) —
I.R.C. § 4975(f)(8)(B)(ii) —
I.R.C. § 4975(f)(8)(C) Investment Advice Program Using Computer Model
I.R.C. § 4975(f)(8)(C)(i) In General —
I.R.C. § 4975(f)(8)(C)(ii) Computer Model —
I.R.C. § 4975(f)(8)(C)(ii)(I) —
I.R.C. § 4975(f)(8)(C)(ii)(II) —
I.R.C. § 4975(f)(8)(C)(ii)(III) —
I.R.C. § 4975(f)(8)(C)(ii)(IV) —
I.R.C. § 4975(f)(8)(C)(ii)(V) —
I.R.C. § 4975(f)(8)(C)(iii) Certification
I.R.C. § 4975(f)(8)(C)(iii)(I) In General —
I.R.C. § 4975(f)(8)(C)(iii)(II) Renewal Of Certifications —
I.R.C. § 4975(f)(8)(C)(iii)(III) Eligible Investment Expert —
I.R.C. § 4975(f)(8)(C)(iv) Exclusivity Of Recommendation —
I.R.C. § 4975(f)(8)(C)(iv)(I) —
I.R.C. § 4975(f)(8)(C)(iv)(II) —
any transaction described in subsection (d)(17)(A)(ii) occurs solely at the direction of the participant or beneficiary. Nothing in the preceding sentence shall preclude the participant or beneficiary from requesting investment advice other than that described in clause (i), but only if such request has not been solicited by any person connected with carrying out the arrangement.
I.R.C. § 4975(f)(8)(D) Express Authorization By Separate Fiduciary —
I.R.C. § 4975(f)(8)(E) Audits
I.R.C. § 4975(f)(8)(E)(i) In General —
I.R.C. § 4975(f)(8)(E)(i)(I) —
I.R.C. § 4975(f)(8)(E)(i)(II) —
I.R.C. § 4975(f)(8)(E)(ii) Special Rule For Individual Retirement And Similar Plans —
I.R.C. § 4975(f)(8)(E)(iii) Independent Auditor —
I.R.C. § 4975(f)(8)(F) Disclosure —
I.R.C. § 4975(f)(8)(F)(i) —
I.R.C. § 4975(f)(8)(F)(i)(I) —
I.R.C. § 4975(f)(8)(F)(i)(II) —
I.R.C. § 4975(f)(8)(F)(i)(III) —
I.R.C. § 4975(f)(8)(F)(i)(IV) —
I.R.C. § 4975(f)(8)(F)(i)(V) —
of the manner, and under what circumstances, any participant or beneficiary information provided under the arrangement will be used or disclosed,
I.R.C. § 4975(f)(8)(F)(i)(VI) —
I.R.C. § 4975(f)(8)(F)(i)(VII) —
I.R.C. § 4975(f)(8)(F)(i)(VIII) —
I.R.C. § 4975(f)(8)(F)(ii) —
I.R.C. § 4975(f)(8)(F)(ii)(I) —
I.R.C. § 4975(f)(8)(F)(ii)(II) —
I.R.C. § 4975(f)(8)(F)(ii)(III) —
I.R.C. § 4975(f)(8)(F)(ii)(IV) —
I.R.C. § 4975(f)(8)(G) Other Conditions —
I.R.C. § 4975(f)(8)(G)(i) —
I.R.C. § 4975(f)(8)(G)(ii) —
I.R.C. § 4975(f)(8)(G)(iii) —
I.R.C. § 4975(f)(8)(G)(iv) —
the terms of the sale, acquisition, or holding of the security or other property are at least as favorable to the plan as an arm's length transaction would be.
I.R.C. § 4975(f)(8)(H) Standards For Presentation Of Information
I.R.C. § 4975(f)(8)(H)(i) In General —
I.R.C. § 4975(f)(8)(H)(ii) Model Form For Disclosure Of Fees And Other Compensation —
I.R.C. § 4975(f)(8)(I) Maintenance For 6 Years Of Evidence Of Compliance —
I.R.C. § 4975(f)(8)(J) Definitions —
For purposes of this paragraph and subsection (d)(17)—-
I.R.C. § 4975(f)(8)(J)(i) Fiduciary Adviser —
I.R.C. § 4975(f)(8)(J)(i)(I) —
I.R.C. § 4975(f)(8)(J)(i)(II) —
I.R.C. § 4975(f)(8)(J)(i)(III) —
I.R.C. § 4975(f)(8)(J)(i)(IV) —
I.R.C. § 4975(f)(8)(J)(i)(V) —
I.R.C. § 4975(f)(8)(J)(i)(VI) —
I.R.C. § 4975(f)(8)(J)(ii) Affiliate —
The term “affiliate” of another entity means an affiliated person of the entity (as defined in section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3))).
I.R.C. § 4975(f)(8)(J)(iii) Registered Representative —
The term “registered representative” of another entity means a person described in section 3(a)(18) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(18)) (substituting the entity for the broker or dealer referred to in such section) or a person described in section 202(a)(17) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)(17)) (substituting the entity for the investment adviser referred to in such section).
I.R.C. § 4975(f)(9) Block Trade —
I.R.C. § 4975(f)(10) Adequate Consideration —
I.R.C. § 4975(f)(10)(A) —
I.R.C. § 4975(f)(10)(A)(i) —
I.R.C. § 4975(f)(10)(A)(ii) —
I.R.C. § 4975(f)(10)(B) —
I.R.C. § 4975(f)(11) Correction Period
I.R.C. § 4975(f)(11)(A) In General —
I.R.C. § 4975(f)(11)(B) Exceptions
I.R.C. § 4975(f)(11)(B)(i) Employer Securities —
I.R.C. § 4975(f)(11)(B)(ii) Knowing Prohibited Transaction —
I.R.C. § 4975(f)(11)(C) Abatement Of Tax Where There Is A Correction —
I.R.C. § 4975(f)(11)(D) Definitions —
I.R.C. § 4975(f)(11)(D)(i) Security —
I.R.C. § 4975(f)(11)(D)(ii) Commodity —
I.R.C. § 4975(f)(11)(D)(iii) Correct —
I.R.C. § 4975(f)(11)(D)(iii)(I) —
I.R.C. § 4975(f)(11)(D)(iii)(II) —
I.R.C. § 4975(g) Application Of Section —
I.R.C. § 4975(g)(1) —
I.R.C. § 4975(g)(2) —
I.R.C. § 4975(g)(3) —
I.R.C. § 4975(h) Notification Of Secretary Of Labor —
I.R.C. § 4975(i) Cross Reference —
(Added Pub. L. 93-406, title II, Sec. 2003(a), Sept. 2, 1974, 88 Stat. 971, and amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-600, title I, Sec. 141(f)(5), (6), Nov. 6, 1978, 92 Stat. 2795; Pub. L. 96-222, title I, Sec. 101(a)(7)(C), (K), (L)(iv)(III), (v)(XI), Apr. 1, 1980, 94 Stat. 198-201; Pub. L. 96-364, title II, Sec. 208(b), 209(b), Sept. 26, 1980, 94 Stat. 1289, 1290; Pub. L. 96-596, Sec. 2(a)(1)(K),(L), (2)(I), (3)(F), Dec. 24, 1980, 94 Stat. 3469, 3471; Pub. L. 97-448, title III, Sec. 305(d)(5), Jan. 12, 1983, 96 Stat. 2400; Pub. L. 98-369, div. A, title IV, Sec. 491(d)(45), (46), (e)(7), (8), July 18, 1984, 98 Stat. 851-853; Pub. L. 99-514, title XI, Sec. 1114(b)(15)(A), title XVIII, Sec. 1854(f)(3)(A), 1899A(51), Oct. 22, 1986, 100 Stat. 2452, 2882, 2961; Pub. L. 101-508, title XI, Sec. 11701(m), Nov. 5, 1990, 104 Stat. 1388-513; Pub. L. 104-188, title I, Sec. 1453(a), 1702(g)(3), Aug. 20, 1996, 110 Stat. 1755; Pub. L. 104-191, title III, Sec. 301(f), Aug. 21, 1996, 110 Stat. 1936 ;Pub. L. 105-34, title II, X, XV, XVI, Sec. 213(b)(1), 213(b)(2), 1074(a), 1506(b)(1)(A), 1506(b)(1)(B), 1602(a)(5), Aug. 5, 1997, 111 Stat 788; Pub. L. 105-206, title VI, Sec. 6023(19), July 22, 1998, 112 Stat 685; Pub. L. 106-554, Sec. 202, Dec. 21, 2000, 114 Stat. 2763; Pub. L. 107-16, Sec. 612, 656, June 7, 2001, 115 Stat. 38; Pub. L. 107-22, Sec. 1, July 26, 2001, 115 Stat. 196; Pub. L. 108-173, title XII, Sec. 1201(f), Dec. 8, 2003, 117 Stat. 2066; Pub. L. 108-357, title II, Sec. 233(c), 240(a), Oct. 22, 2004, 118 Stat. 1418; Pub. L. 109-135, title IV, Sec. 413(a)(2), Dec. 21, 2005, 119 Stat. 2577; Pub. L. 109-280, title VI, Sec. 601, 611, 612, Aug. 17, 2006, 120 Stat. 780; Pub. L. 110-458, title I, Sec. 106, Dec. 23, 2008, 122 Stat. 5092; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(190), (229)-(234) Mar. 23, 2018, 132 Stat. 348; Pub. L. 116-94, Div. P, title, XIII, Sec. 1302(b), Dec. 20, 2019.)
2019 - Subsec. (c)(7). Pub. L. 116-94, Div. P, Sec. 1302(b), amended subsec. (c) by adding par. (7).
2018 - Subsec. (d)(16)(A). Pub. L. 115-141, Div. U, Sec. 401(a)(190), amended subpar. (16)(A) by substituting “1813(w)(1))),” for “1813(w)(1)),”.
Subsec. (d)(3). Pub. L. 115-141, Div. U, Sec. 401(a)(229), amended par. (3) by substituting “a leveraged” for “an leveraged”.
Subsec. (d)(17). Pub. L. 115-141, Div. U, Sec. 401(a)(230), amended par. (17) by substituting “any” for “Any”.
Subsec. (d)(21). Pub. L. 115-141, Div. U, Sec. 401(a)(231), amended par. (21) by substituting “person” for “person person”.
Subsec. (f)(8)(C)(iv)(II). Pub. L. 115-141, Div. U, Sec. 401(a)(232), amended subpar. (iv)(II) by inserting “subsection” before “(d)(17)(A)(ii)”.
Subsec. (f)(8)(F)(i)(I). Pub. L. 115-141, Div. U, Sec. 401(a)(233), amended subpar. (i)(I) by substituting “adviser” for “adviser,”.
Subsec. (f)(8)(F)(i)(V). Pub. L. 115-141, Div. U, Sec. 401(a)(234), amended subpar. (i)(V) by inserting “of” before “the manner”.
2008 - Subsec. (d)(17). Pub. L. 110-458, Sec. 106(a)(2)(A), amended par. (17) by substituting “that permits” for “and that permits”.
Subsec. (d)(18). Pub. L. 110-458, Sec. 106(b)(2)(A), amended par. (18) by substituting “disqualified person” for “party in interest” and by substituting “subsection (e)(3)” for “subsection (e)(3)(B)” in the matter preceding subpar. (A).
Subsec. (d)(19). Pub. L. 110-458, Sec. 106(b)(2)(B), amended par. (19) by substituting “disqualified person” for “party in interest” each place it appeared.
Subsec. (d)(20). Pub. L. 110-458, Sec. 106(b)(2)(B), amended par. (20) by substituting “disqualified person” for “party in interest” each place it appeared.
Subsec. (d)(21). Pub. L. 110-458, Sec. 106(b)(2)(B), amended par. (21) by substituting “disqualified person” for “party in interest” each place it appeared.
Subsec. (d)(21)(C). Pub. L. 110-458, Sec. 106(b)(2)(C), amended subpar. (C) by striking “or less”.
Subsec. (f)(8)(A). Pub. L. 110-458, Sec. 106(a)(2)(B)(i), amended subpar. (A) by substituting “subsection (d)(17)” for “subsection (b)(14)”.
Subsec. (f)(8)(C)(iv)(II). Pub. L. 110-458, Sec. 106(a)(2)(B)(ii), amended subclause (II) by substituting “(d)(17)(A)(ii)” for “subsection (b)(14)(B)(ii)”.
Subsec. (f)(8)(F)(i)(I). Pub. L. 110-458, Sec. 106(a)(2)(B)(iii), amended subclause (I) by substituting “fiduciary adviser,” for “financial adviser”.
Subsec. (f)(8)(I). Pub. L. 110-458, Sec. 106(a)(2)(B)(iv), amended subpar. (I) by substituting “subsection (c)” for “section 406”.
Subsec. (f)(8)(J)(i). Pub. L. 110-458, Sec. 106(a)(2)(B)(v), amended clause (i) by substituting “a participant” for “the participant” each place it appeared and by inserting “referred to in subsection (e)(3)(B)” after “investment advice” in the matter preceding subclause (I).
Subsec. (f)(8)(J)(II). Pub. L. 110-458, Sec. 106(a)(2)(B)(v)(III), amended subclause (II) by substituting “subsection (d)(4)” for “section 408(b)(4)”.
Subsec. (f)(11)(B)(i). Pub. L. 110-458, Sec. 106(c), amended clause (i) by inserting “of the Employee Retirement Income Security Act of 1974” after “section 407(d)(1)” and by inserting “of such Act” after “section 407(d)(2)”.
2006 - Subsec. (d)(15)-(17). Pub. L. 109-280, Sec. 601(b)(1), amended subsec. (d) by striking “or” at the end of par. (15), by substituting “; or” for the period at the end of par. (16); and by adding par. (17).
Subsec. (d)(16)-(18). Pub. L. 109-280, Sec. 611(a)(2), amended subsec. (d) by striking “or” at the end of par. (16), by substituting “, or” for the period at the end of par. (17); and by adding par. (18).
Subsec. (d)(17)-(19). Pub. L. 109-280, Sec. 611(c)(2), amended subsec. (d) by striking “or” at the end of par. (17), by substituting “, or” for the period at the end of par. (18); and by adding par. (19).
Subsec. (d)(18)-(20). Pub. L. 109-280, Sec. 611(d)(2), amended subsec. (d) by striking “or” at the end of par. (18), by substituting “, or” for the period at the end of par. (19); and by adding par. (20).
Subsec. (d)(19)-(21). Pub. L. 109-280, Sec. 611(e)(2), amended subsec. (d) by striking “or” at the end of par. (19), by substituting “, or” for the period at the end of par. (20); and by adding par. (21).
Subsec. (d)(20)-(22). Pub. L. 109-280, Sec. 611(g)(2), amended subsec. (d) by striking “or” at the end of par. (20), by substituting “, or” for the period at the end of par. (21); and by adding par. (22).
Subsec. (d)(21)-(23). Pub. L. 109-280, Sec. 612(b)(1), amended subsec. (d) by striking “or” at the end of par. (21), by substituting “, or” for the period at the end of par. (22); and by adding par. (23).
Subsec. (f)(8). Pub. L. 109-280, Sec. 601(b)(2), added par. (8).
Subsec. (f)(9). Pub. L. 109-280, Sec. 611(a)(2), added par. (9).
Subsec. (f)(10). Pub. L. 109-280, Sec. 611(d)(2), added par. (10).
Subsec. (f)(11). Pub. L. 109-280, Sec. 612(b)(2), added par. (11).
2005 - Subsec. (d)(16)(A). Pub. L. 109-135, Sec. 413(a)(2)(A), amended subpar. (A) by inserting “or a depository institution holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)“ after “a bank (as defined in section 581)”.
Subsec. (d)(16)(C). Pub. L. 109-135, Sec. 413(a)(2)(B), amended subpar. (C) by inserting “or company” after “such bank”.
2004 - Subsec. (d)(14)-(16). Pub. L. 108-357, Sec. 233(c), amended subsec. (c) by striking “or” at the end of par. (14); by substituting “; or” for the period at the end of par. (15); and by adding par. (16).
Subsec. (f)(7). Pub. 108-357, Sec. 240(a), added par. (7).
2003 - Subsec. (c)(6). Pub. L. 108-173, sec. 1201(f), amended subsec. (c) by adding par. (6).
Subsec. (e)(1)(E)-(G). Pub. L. 108-173, sec. 1201(f), amended par. (1) by redesignating subpar. (E) and (F) and subpar. (F) and (G), respectively, and adding a new subpar. (E).
2001 - Subsec. (c). Pub. L. 107-22, sec. 1(b)(1)(D), amended subsec. (c) by substituting “a Coverdell education savings" for “an education individual retirement”.
Subsec. (c)(5). Pub. L. 107-22, sec. 1(b)(3)(D), amended the heading for par. (5) by substituting “Coverdell education savings” for “education individual retirement”.
Subsec. (e). Pub. L. 107-22, sec. 1(b)(1)(D), amended subsec. (e) by substituting “a Coverdell education savings” for “an education individual retirement”.
Subsec. (e)(7). Pub. L. 107-16, Sec. 656(b), inserted “, and 409(p)," after “409(n)”.
Subsec. (f)(6)(B)(iii). Pub. L. 107-16, Sec. 612(a), added clause (iii).
2000 - Subsec. (c)(4). Pub. L. 106-554, Sec. 202, substituted “an Archer MSA” for “a medical savings account” and “Archer MSAs" for “medical savings accounts”.
Subsec. (e)(1)(D). Pub. L. 106-554, Sec. 202, substituted “an Archer MSA" for “a medical savings account”.
1998 - Subsec. (c)(3). Pub. L. 105-206, Sec. 6023(19)(A), amended par. (3) by substituting “exempt from the tax” for “exempt for the tax”.
Subsec. (i). Pub. L. 105-206, Sec. 6023(19)(B), amended subsec. (i) by substituting “Secretary of the Treasury” for “Secretary of Treasury”.
1997 - Subsec. (a). Pub. L. 105-34, Sec. 1074(a), substituted “15 percent” for “10 percent”.
Subsec. (c)(4). Pub. L. 105-34, Sec. 1602(a)(5), amended par. (4) by substituting “if section 220(e)(2) applies to such transaction” for “if, with respect to such transaction, the account ceases to be a medical savings account by reason of the application of section 220(e)(2) to such account.”.
Subsec. (c)(5). Pub. L. 105-34, Sec. 213(b)(2), added par. (5).
Subsec. (d). Pub. L. 105-34, Sec. 1506(b)(1)(B), amended subsec. (d) by substituting “Except as provided in subsection (f)(6), the prohibitions" for “The prohibitions”, and by striking the last two sentences. Prior to being struck they read as follows:
“The exemptions provided by this subsection (other than paragraphs (9) and (12)) shall not apply to any transaction with respect to a trust described in section 401(a) which is part of a plan providing contributions or benefits for employees some or all of whom are owner-employees (as defined in section 401(c)(3)) in which a plan directly or indirectly lends any part of the corpus or income of the plan to, pays any compensation for personal services rendered to the plan to, or acquires for the plan any property from or sells any property to, any such owner-employee, a member of the family (as defined in section 267(c)(4)) of any such owner-employee, or a corporation controlled by any such owner-employee through the ownership, directly or indirectly, of 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation. For purposes of the preceding sentence, a shareholder-employee (as defined in section 1379, as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982), a participant or beneficiary of an individual retirement account or an individual retirement annuity (as defined in section 408), and an employer or association of employees which establishes such an account or annuity under section 408(c) shall be deemed to be an owner-employee.”
Subsec. (e)(1)(D). Pub. L. 105-34, Sec. 213(b)(1) struck “or” at the end of subpar. (D).
Subsec. (e)(1)(E). Pub. L. 105-34, Sec. 213(b)(1) redesignated subpar. (E) as subpar. (F) and added a new subpar. (E).
Subsec. (e)(7). Pub. L. 105-34, Sec. 1530(c)(10), inserted “section 664(g)" after “section 409(n)”.
Subsec. (f)(6). Pub. L. 105-34, Sec. 1506(b)(1)(A), added par. (6).
1996 - Subsec. (a). Pub. L. 104-188, Sec. 1453(a), substituted “10 percent” for “5 percent”.
Subsec. (d)(13). Pub. L. 104-188, Sec. 1702(g)(3), substituted “section 408(b)(12)” for “section 408(b)”.
1996 - Subsec. (c)(4). Pub. L. 104-191, Sec. 301(f)(1), added par. (4).
Subsec. (e)(1). Pub. L. 104-191, Sec. 301(f)(2), amended par. (1). Before amendment, par. (1) read as follows:
“(1) Plan
“For purposes of this section, the term “plan” means a trust described in section 401(a) which forms a part of a plan, or a plan described in section 403(a), which trust or plan is exempt from tax under section 501(a), an individual retirement account described in section 408(a) or an individual retirement annuity described in section 408(b) (or a trust, plan, account, or annuity which, at any time, has been determined by the Secretary to be such a trust, plan, or account).”
1990 - Subsec. (d)(13). Pub. L. 101-508 inserted before semicolon at end ‘or which is exempt from section 406 of such Act by reason of section 408(b) of such Act’.
1986 - Subsec. (d). Pub. L. 99-514, Sec. 1899A(51), inserted a closing parenthesis after ‘and (12)’ in second sentence.
Subsec. (d)(1)(B). Pub. L. 99-514, Sec. 1114(b)(15)(A), substituted ‘highly compensated employees (within the meaning of section 414(q))’ for ‘highly compensated employees, officers, or shareholders’.
Subsec. (e)(7). Pub. L. 99-514, Sec. 1854(f)(3)(A), inserted ‘, section 409(o), and, if applicable, section 409(n)’ in last sentence.
1984 - Subsec. (d). Pub. L. 98-369, Sec. 491(d)(45), substituted in provision following par. (15) ‘or an individual retirement annuity (as defined in section 408)’ for ‘, individual retirement annuity, or an individual retirement bond (as defined in section 408 or 409)’.
Subsec. (e)(1). Pub. L. 98-369, Sec. 491(d)(46), struck out ‘or 405(a)’ after ‘section 403(a)’ and ‘or a retirement bond described in section 409’ after ‘section 408(b)’, and substituted ‘or annuity’ for ‘annuity, or bond’ and ‘or account’ for ‘account, or bond’.
Subsec. (e)(7). Pub. L. 98-369, Sec. 491(e)(7), substituted ‘section 409(h)’ for ‘section 409A(h)’, ‘section 409(e)(4)’ for ‘section 409A(e)(4)’, and ‘section 409(e)’ for ‘section 409A(e)’.
Subsec. (e)(8). Pub. L. 98-369, Sec. 491(e)(8), substituted ‘section 409(l)’ for ‘section 409A(l)’.
1983 - Subsec. (d). Pub. L. 97-448 inserted ‘, as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982’ after ‘section 1379’ in last sentence.
1980 - Subsec. (b). Pub. L. 96-596, Sec. 2(a)(1)(K), substituted ‘taxable period’ for ‘correction period’.
Subsec. (d)(14), (15). Pub. L. 96-364, Sec. 208(b), added pars. (14) and (15).
Subsec. (e)(7). Pub. L. 96-222, Sec. 101(a)(7)(K), (L)(iv)(III), (v)(XI), substituted references to an employee stock ownership plan, for references to a leveraged employee stock ownership plan wherever appearing therein, and substituted provisions relating to treatment of a plan as an employee stock ownership plan, for provisions relating to treatment of a plan as a leveraged employee stock ownership plan.
Subsec. (e)(8). Pub. L. 96-222, Sec. 101(a)(7)(C), substituted provisions defining ‘qualifying employer security’ within the meaning of section 409A(l), for provisions defining such term as stock, or otherwise an equity security, or within the meaning of section 503(e)(1) to (3).
Subsec. (e)(9). Pub. L. 96-364, Sec. 209(b), added par. (9).
Subsec. (f)(2)(B), (C). Pub. L. 96-596, Sec. 2(a)(2)(I), added subpar. (B) and redesignated former subpar. (B) as (C).
Subsec. (f)(4)(B). Pub. L. 96-596, Sec. 2(a)(1)(L), substituted ‘taxable period’ for ‘correction period’.
Subsec. (f)(6). Pub. L. 96-596, Sec. 2(a)(3)(F), struck out par. (6), which defined correction period, with respect to a prohibited transaction, as the period beginning on the date on which the prohibited transaction occurs and ending 90 days after the date of mailing of a notice of deficiency with respect to the tax imposed by subsec. (b) of this section under section 6212 of this title, extended by any period in which a deficiency cannot be assessed under section 6213(a) of this title and any other period which the Secretary determines is reasonable and necessary to bring about the correction of the prohibited transaction.
1978 - Subsec. (d)(3). Pub. L. 95-600, Sec. 141(f)(6), substituted ‘leveraged employee’ for ‘employee’.
Subsec. (e)(7). Pub. L. 95-600, Sec. 141(f)(5), substituted in heading ‘Leveraged employee’ for ‘Employee’, and in text, ‘leveraged employee’ for ‘employee’ and inserted provision that a plan not be treated as a leveraged employee stock ownership plan unless it meet the requirements of section 409A(e) and (h).
1976 - Subsecs. (c) to (f). Pub. L. 94-455 struck out ‘or his delegate’ after ‘Secretary’ wherever appearing.
Amendment by Pub. L. 116-94, Div. P, Sec. 1302(b), effective December 20, 2019. Sec. 1302(c) of Pub. L. 116-94, Div. P, provided the following:
“(c) APPLICABILITY.—With respect to a group health plan subject to subsection (h) of section 408 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108) (as amended by subsection (a)) and subsection (c) of section 4975 of the Internal Revenue Code of 1986 (as amended by subsection (b)), beginning at the end of the fifth plan year of such group health plan that begins after the date of enactment of this Act, such subsection (h) of such section 408 and such subsection (c) of such shall have no force or effect.”
Amendments by Pub. L. 115-141, Div. U, Sec. 401(190), (229)-(234), effective March 23, 2018.
Amendments by Sec. 106) of Pub. L. 110-458 effective as if included in the provisions of the Pension Protection Act of 2006 [Pub. L. 109-280, Sec. 601, 611, 612] to which they relate.
Amendments by Sec. 601(b) of Pub. L. 109-280, as amended by Pub. L. 110-458, Sec. 106(a)(3), applicable to advice referred to in Sec. 4975(e)(3)(B) provided after December 21, 2006.
Amendments by Sec. 611 of Pub. L. 109-280 applicable to transactions occurring after the date of the enactment of this Act [Enacted: Aug. 17, 2006].
Amendments by Sec. 612 of Pub. L. 109-280 applicable to any transaction which the fiduciary or disqualified person discovers, or reasonably should have discovered, after the date of the enactment of this Act [Enacted: Aug. 17, 2006] constitutes a prohibited transaction.
Amendments by Sec. 413(a)(2) of Pub. L. 109-135 applicable as if included in the provisions of the American Jobs Creation Act of 2004 [Pub. L. 108-357, Sec. 233] to which they relate.
Amendments by Sec. 233(c) of Pub. L. 108-357 applicable on the date of the enactment of this Act [Enacted: Oct. 22, 2004].
Amendment by Sec. 240(a) of Pub. L. 108-357 applicable to distributions with respect to S corporation stock made after December 31, 1997.
Amendments by Sec. 1201(f) of Pub. L. 108-173 applicable to taxable years beginning after Dec. 31, 2003.
Amendment by Sec. 612(a) of Pub. L. 107-16 applicable to plan years beginning after December 31, 2001.
Amendment by Sec. 656(b) of Pub. L. 107-16 applicable to taxable years beginning after December 31, 2004.
Amendments by Sec. 6023(19) of Pub. L. 105-206 applicable on the date of the enactment of this Act [enacted: July 22, 1998].
Amendments by Sec. 213(b) of Pub. L. 105-34 applicable to taxable years beginning after December 31, 1997.
Amendment by Sec. 1074(a) of Pub. L. 105-34 applicable to prohibited transactions occurring after the date of the enactment of this Act [enacted: Aug. 5, 1997].
Amendment by Sec. 1506(b)(1) of Pub. L. 105-34 applicable to taxable years beginning after December 31, 1997.
Amendments by Sec. 1530(c)(10) of Pub. L. 105-34 applicable to transfers made by trusts to, or for the use of, an employee stock ownership plan after the date of the enactment of this Act [enacted: Aug. 5, 1997].
Amendment by Sec. 1602(a)(5) of Pub. L. 105-34 effective as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996 to which such amendment relates.
Amendment by Pub. L. 104-188, Sec. 1453(b), effective for prohibited transactions occurring after the date of the enactment of this Act [August 20, 1996].
Amendment by Pub. L. 104-188, Sec. 1702(g)(3), effective as if included in the related provision of the Revenue Reconciliation Act of 1990.
Amendments by Pub. L. 104-191, Sec. 301(f), effective for taxable years beginning before Dec. 31, 1996.
Amendment by section 1114(b)(15)(A) of Pub. L. 99-514 applicable to years beginning after Dec. 31, 1988, see section 1114(c)(3) of Pub. L. 99-514, set out as a note under section 414 of this title.
Amendment by section 1854(f)(3)(A) of Pub. L. 99-514 effective Oct. 22, 1986, see section 1854(f)(4)(A) of Pub. L. 99-514, set out as a note under section 409 of this title.
Amendment by section 491(d)(45), (46) of Pub. L. 98-369 applicable to obligations issued after Dec. 31, 1983, see section 491(f)(1) of Pub. L. 98-369, set out as a note under section 62 of this title.
Amendment by section 491(e)(7), (8) 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 208(b) of Pub. L. 96-364 effective Sept. 26, 1980, see section 210(a) of Pub. L. 96-364, set out as an Effective Date note under section 418 of this title.
Amendment by section 209(b) of Pub. L. 96-364 applicable to taxable years ending after Sept. 26, 1980, see section 210(c) of Pub. L. 96-364, set out as an Effective Date note under section 418 of this title.
Section 101(b)(1)(C) of Pub. L. 96-222 provided that: ‘The amendment made by subparagraph (C) of subsection (a)(6) (probably should be ‘(a)(7)’, which amended this section) shall apply to stock acquired after December 31, 1979.'
Amendment by section 101(a)(7)(K), (L)(iv)(III), (v)(XI) of Pub. L. 96-222 effective, except as otherwise provided, as if it had been included in the provision of the Revenue Act of 1978, Pub. L. 95-600, to which such amendment relates, see section 201 of Pub. L. 96-222, set out as a note under section 32 of this title.
Section 141(h) of Pub. L. 95-600, as added by Pub. L. 96-222, title I, Sec. 101(a)(7)(B), Apr. 1, 1980, 94 Stat. 197; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘Paragraphs (5) and (6) of subsection (f) (section 141(f)(5), (6) of Pub. L. 95-600) shall apply -
‘(1) insofar as they make the requirements of subsections (e) and (h)(1)(B) of section 409A (now section 409) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954 ) applicable to section 4975 of such Code, to stock acquired after December 31, 1979, and
‘(2) insofar as they make paragraphs (1)(A) and (2) of section 409A(h) (now section 409(h)) of such Code applicable to such section 4975, to distributions after December 31, 1978.’
Section 601(b)(3) of Pub. L. 109-280 provided that:
“(A) SOLICITATION OF INFORMATION- As soon as practicable after the date of the enactment of this Act, the Secretary of Labor, in consultation with the Secretary of the Treasury, shall--
“(i) solicit information as to the feasibility of the application of computer model investment advice programs for plans described in subparagraphs (B) through (F) (and so much of subparagraph (G) as relates to such subparagraphs) of section 4975(e)(1) of the Internal Revenue Code of 1986, including soliciting information from--
“The information solicited by the Secretary of Labor under clause (i) from persons described in subclauses (I) and (II) of clause (i) shall include information on computer modeling capabilities of such persons with respect to the current year and preceding year, including such capabilities for investment accounts maintained by such persons.
“(B) DETERMINATION OF FEASIBILITY- The Secretary of Labor, in consultation with the Secretary of the Treasury, shall, on the basis of information received under subparagraph (A), determine whether there is any computer model investment advice program which may be utilized by a plan described in subparagraph (A)(i) to provide investment advice to the account beneficiary of the plan which--
“The Secretary of Labor shall report the results of such determination to the committees of Congress referred to in subparagraph (D)(ii) not later than December 31, 2007.
“(C) APPLICATION OF COMPUTER MODEL INVESTMENT ADVICE PROGRAM-
“(i) CERTIFICATION REQUIRED FOR USE OF COMPUTER MODEL-
“(I) RESTRICTION ON USE- Subclause (II) of section 4975(f)(8)(B)(i) of the Internal Revenue Code of 1986 shall not apply to a plan described in subparagraph (A)(i).
“(II) RESTRICTION LIFTED IF MODEL CERTIFIED- If the Secretary of Labor determines under subparagraph (B) or (D) that there is a computer model investment advice program described in subparagraph (B), subclause (I) shall cease to apply as of the date of such determination.
“(ii) CLASS EXEMPTION IF NO INITIAL CERTIFICATION BY SECRETARY- If the Secretary of Labor determines under subparagraph (B) that there is no computer model investment advice program described in subparagraph (B), the Secretary of Labor shall grant a class exemption from treatment as a prohibited transaction under section 4975(c) of the Internal Revenue Code of 1986 to any transaction described in section 4975(d)(17)(A) of such Code with respect to plans described in subparagraph (A)(i), subject to such conditions as set forth in such exemption as are in the interests of the plan and its account beneficiary and protective of the rights of the account beneficiary and as are necessary to--
“If the Secretary of Labor solicits any information under subparagraph (A) from a person and such person does not provide such information within 60 days after the solicitation, then, unless such failure was due to reasonable cause and not wilful neglect, such person shall not be entitled to utilize the class exemption under this clause.
“(D) SUBSEQUENT DETERMINATION-
“(i) IN GENERAL- If the Secretary of Labor initially makes a determination described in subparagraph (C)(ii), the Secretary may subsequently determine that there is a computer model investment advice program described in subparagraph (B). If the Secretary makes such subsequent determination, then the class exemption described in subparagraph (C)(ii) shall cease to apply after the later of--
“(ii) REQUESTS FOR DETERMINATION- Any person may request the Secretary of Labor to make a determination under this subparagraph with respect to any computer model investment advice program, and the Secretary of Labor shall make a determination with respect to such request within 90 days. If the Secretary of Labor makes a determination that such program is not described in subparagraph (B), the Secretary shall, within 10 days of such determination, notify the Committee on Ways and Means and the Committee on Education and the Workforce of the House of Representatives and the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate of such determination and the reasons for such determination.
“(E) EFFECTIVE DATE- The provisions of this paragraph shall take effect on the date of the enactment of this Act.”
COORDINATION WITH EXISTING EXEMPTIONS
Section 601(c) of Pub. L. 109-280 provided that:
“Any exemption under section 408(b) of the Employee Retirement Income Security Act of 1974 and section 4975(d) of the Internal Revenue Code of 1986 provided by the amendments made by this section shall not in any manner alter existing individual or class exemptions, provided by statute or administrative action.”
Section 2003(c) of Pub. L. 93-406, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(1)(A) The amendments made by this section (enacting this section and amending section 503 of this title) shall take effect on January 1, 1975.
‘(B) If, before the amendments made by this section (enacting this section and amending section 503 of this title) take effect, an organization described in section 401(a) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954 ) is denied exemption under section 501(a) of such Code by reason of section 503 of such Code, the denial of such exemption shall not apply if the disqualified person elects (in such manner and at such time as the Secretary or his delegate shall by regulations prescribe) to pay, with respect to the prohibited transaction (within the meaning of section 503(b) or (g)) which resulted in such denial of exemption, a tax in the amount and in the manner provided with respect to the tax imposed under section 4975 of such Code. An election made under this subparagraph, once made, shall be irrevocable. The Secretary of the Treasury or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this subparagraph.
‘(2) Section 4975 of the Internal Revenue Codeof 1986 (relating to tax on prohibited transactions) shall not apply to -
‘(A) a loan of money or other extension of credit between a plan and a disqualified person under a binding contract in effect on July 1, 1974 (or pursuant to renewals of such a contract), until June 30, 1984, if such loan or other extension of credit remains at least as favorable to the plan as an arm's-length transaction with an unrelated party would be, and if the execution of the contract, the making of the loan, or the extension of credit was not, at the time of such execution, making, or extension, a prohibited transaction (within the meaning of section 503(b) of such Code) or the corresponding provisions of prior law);
‘(B) a lease of joint use of property involving the plan and a disqualified person pursuant to a binding contract in effect on July 1, 1974 (or pursuant to renewals of such a contract), until June 30, 1984, if such lease or joint use remains at least as favorable to the plan as an arm's-length transaction with an unrelated party would be and if the execution of the contract was not, at the time of such execution, a prohibited transaction (within the meaning of section 503(b) of such Code) or the corresponding provisions of prior law;
‘(C) the sale, exchange, or other disposition of property described in subparagraph (B) between a plan and a disqualified person before June 30, 1984, if -
‘(i) in the case of a sale, exchange, or other disposition of the property by the plan to the disqualified person, the plan receives an amount which is not less than the fair market value of the property at the time of such disposition; and
‘(ii) in the case of the acquisition of the property by the plan, the plan pays an amount which is not in excess of the fair market value of the property at the time of such acquisition:
‘(D) Until June 30, 1977, the provision of services to which subparagraphs (A), (B), and (C) do not apply between a plan and a disqualified person (i) under a binding contract in effect on July 1, 1974 (or pursuant to renewals of such contract), or (ii) if the disqualified person ordinarily and customarily furnished such services on June 30, 1974, if such provision of services remains at least as favorable to the plan as an arm's-length transaction with an unrelated party would be and if the provision of services was not, at the time of such provision, a prohibited transaction (within the meaning of section 503(b) of such Code) or the corresponding provisions of prior law; or
‘(E) the sale, exchange, or other disposition of property which is owned by a plan on June 30, 1974, and all times thereafter, to a disqualified person, if such plan is required to dispose of such property in order to comply with the provisions of section 407(a)(2)(A) (relating to the prohibition against holding excess employer securities and employer real property) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1107(a)(2)) and if the plan receives not less than adequate consideration.
For the purposes of this paragraph, the term ‘disqualified person’ has the meaning provided by section 4975(e)(2) of the Internal Revenue Code of 1986.'
Section 803(h) of Pub. L. 94-455 provided that: ‘The Congress, in a series of laws (the Regional Rail Reorganization Act of 1973, the Employee Retirement Income Security Act of 1974, the Trade Act of 1974, and the Tax Reduction Act of 1975) and this Act has made clear its interest in encouraging employee stock ownership plans as a bold and innovative method of strengthening the free private enterprise system which will solve the dual problems of securing capital funds for necessary capital growth and of bringing about stock ownership by all corporate employees. The Congress is deeply concerned that the objectives sought by this series of laws will be made unattainable by regulations and rulings which treat employee stock ownership plans as conventional retirement plans, which reduce the freedom of the employee trusts and employers to take the necessary steps to implement the plans, and which otherwise block the establishment and success of these plans. Because of the special purposes for which employee stock ownership plans are established, it is consistent with the intent of Congress to permit these plans (whether structured as pension, stock bonus, or profit-sharing plans) to distribute income on employer securities currently.’