Source: http://www.law.cornell.edu/uscode/search/display.html?terms=402&url=/uscode/html/uscode26/usc_sec_26_00000402----000-.html
Timestamp: 2013-05-21 17:25:47
Document Index: 648599854

Matched Legal Cases: ['§ 402', '§ 402', '§ 402', '§\u20091401', '§ 1', '§ 4', '§ 221', '§ 321', '§ 515', '§ 2002', '§ 1', '§ 1402', '§ 1512', '§ 1901', '§ 102', '§ 4', '§ 101', '§ 101', '§ 2', '§ 311', '§ 101', '§ 491', '§ 522', '§ 713', '§ 1001', '§ 204', '§ 11012', '§ 104', '§ 1105', '§ 1852', '§ 1011', '§ 6068', '§ 7811', '§ 11801', '§ 521', '§ 732', '§ 1401', '§ 1501', '§ 6005', '§ 611', '§ 411', '§ 407', '§ 822', '§ 8', '§ 108', '§ 201', '§ 632', '§ 1401', '§ 201', '§ 108', '§ 108', '§ 108', '§ 108', '§ 109', '§ 108', '§ 108', '§ 108', '§ 108', '§ 407', '§ 8', '§ 822', '§ 829', '§ 845', '§ 407', '§ 407', '§ 411', '§ 411', '§ 411', '§ 411', '§ 643', '§ 644', '§ 636', '§ 617', '§ 641', '§ 641', '§ 641', '§ 641', '§ 641', '§ 657', '§ 641', '§ 641', '§ 641', '§ 641', '§ 611', '§ 617', '§ 617', '§ 611', '§ 611', '§ 611', '§ 611', '§ 611', '§ 632', '§ 611', '§ 1401', '§ 1401', '§ 1450', '§ 1401', '§ 1401', '§ 1704', '§ 1421', '§ 1421', '§ 521', '§ 521', '§ 522', '§ 521', '§ 521', '§ 521', '§ 521', '§ 11801', '§ 11801', '§ 7811', '§ 7811', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1122', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1018', '§ 1011', '§ 1018', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1018', '§ 104', '§ 1018', '§ 1122', '§ 1018', '§ 1122', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 6068', '§ 1011', '§ 1011', '§ 1018', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1011', '§ 1122', '§ 1122', '§ 1011', '§ 1852', '§ 1852', '§ 1122', '§ 1852', '§ 1121', '§ 1852', '§ 1875', '§ 1852', '§ 1852', '§ 1898', '§ 1898', '§ 1122', '§ 1852', '§ 1898', '§ 1112', '§ 1852', '§ 1122', '§ 1018', '§ 104', '§ 1018', '§ 1122', '§ 1122', '§ 1122', '§ 1018', '§ 1122', '§ 1122', '§ 1852', '§ 1122', '§ 1122', '§ 1106', '§ 1898', '§ 1898', '§ 1898', '§ 1854', '§ 1852', '§ 1105', '§ 1108', '§ 1001', '§ 522', '§ 522', '§ 522', '§ 491', '§ 522', '§ 522', '§ 522', '§ 522', '§ 522', '§ 522', '§ 491', '§ 522', '§ 491', '§ 713', '§ 522', '§ 522', '§ 522', '§ 204', '§ 522', '§ 204', '§ 1001', '§ 204', '§ 491', '§ 207', '§ 103', '§ 101', '§ 103', '§ 103', '§ 311', '§ 311', '§ 314', '§ 311', '§ 311', '§ 101', '§ 101', '§ 4', '§ 157', '§ 4', '§ 157', '§ 157', '§ 135', '§ 101', '§ 1402', '§ 1402', '§ 1901', '§ 1', '§ 1', '§ 1', '§ 1906', '§ 1901', '§ 1901', '§ 1906', '§ 1402', '§ 1402', '§ 2005', '§ 2005', '§ 2002', '§ 2005', '§ 515', '§ 321', '§ 232', '§ 221', '§ 232', '§ 2', '§ 1', '§ 108', '§ 8', '§ 822', '§ 829', '§ 845', '§ 407', '§ 617', '§ 636', '§ 641', '§ 644', '§ 6005', '§ 1011', '§ 1011', '§ 1011', '§ 1852', '§ 1875', '§ 2', '§ 101', '§ 2', '§ 2', '§ 2', '§ 1011', '§ 2', '§ 101', '§ 2', '§ 2', '§ 4022012112']

26 USC § 402 - Taxability of beneficiary of employees’ trust | Title 26 - Internal Revenue Code | U.S. Code | LII / Legal Information Institute
USC › Title 26 › Subtitle A › Chapter 1 › Subchapter D › Part I › Subpart A › § 402	prevnext
26 USC § 402 - Taxability of beneficiary of employees’ trust
Amounts attributable to employer contributions For purposes of subsection (a) andsection 72, in the case of any lump sum distribution which includes securities of the employer corporation, there shall be excluded from gross income the net unrealized appreciation attributable to that part of the distribution which consists of securities of the employer corporation. In accordance with rules prescribed by the Secretary, a taxpayer may elect, on the return of tax on which a lump sum distribution is required to be included, not to have this subparagraph apply to such distribution.
Determination of amounts and adjustments For purposes of subparagraphs (A) and (B), net unrealized appreciation and the resulting adjustments to basis shall be determined in accordance with regulations prescribed by the Secretary.
Lump-sum distribution For purposes of this paragraph—
The term “lump-sum distribution” means the distribution or payment within one taxable year of the recipient of the balance to the credit of an employee which becomes payable to the recipient—
on account of the employee’s death,
after the employee attains age 591/2,
on account of the employee’s separation from service, or
after the employee has become disabled (within the meaning of section 72
from a trust which forms a part of a plan described in section 401
(a) and which is exempt from tax under section 501 or from a plan described in section 403
(a). Subclause (III) of this clause shall be applied only with respect to an individual who is an employee without regard to section 401
(c)(1), and subclause (IV) shall be applied only with respect to an employee within the meaning of section 401
(c)(1). For purposes of this clause, a distribution to two or more trusts shall be treated as a distribution to one recipient. For purposes of this paragraph, the balance to the credit of the employee does not include the accumulated deductible employee contributions under the plan (within the meaning of section 72
(o)(5)).
Aggregation of certain trusts and plans
all trusts which are part of a plan shall be treated as a single trust, all pension plans maintained by the employer shall be treated as a single plan, all profit-sharing plans maintained by the employer shall be treated as a single plan, and all stock bonus plans maintained by the employer shall be treated as a single plan, and
trusts which are not qualified trusts under section 401
(a) and annuity contracts which do not satisfy the requirements of section 404
(a)(2) shall not be taken into account.
Amounts subject to penalty
This paragraph shall not apply to amounts described in subparagraph (A) of section 72
(m)(5) to the extent that section 72
(m)(5) applies to such amounts.
Balance to credit of employee not to include amounts payable under qualified domestic relations order
For purposes of this paragraph, the balance to the credit of an employee shall not include any amount payable to an alternate payee under a qualified domestic relations order (within the meaning of section 414
Transfers to cost-of-living arrangement not treated as distribution
For purposes of this paragraph, the balance to the credit of an employee under a defined contribution plan shall not include any amount transferred from such defined contribution plan to a qualified cost-of-living arrangement (within the meaning of section 415
(k)(2)) under a defined benefit plan.
Lump-sum distributions of alternate payees
Definitions relating to securities For purposes of this paragraph—
The term “securities” means only shares of stock and bonds or debentures issued by a corporation with interest coupons or in registered form.
Securities of the employer
The term “securities of the employer corporation” includes securities of a parent or subsidiary corporation (as defined in subsections (e) and (f) ofsection 424) of the employer corporation.
Repealed. Pub. L. 104–188, title I, § 1401(b)(13),Aug. 20, 1996, 110 Stat. 1789] (6)
Direct trustee-to-trustee transfers Any amount transferred in a direct trustee-to-trustee transfer in accordance with section 401
Written explanation to recipients of distributions eligible for rollover treatment (1)
In general The plan administrator of any plan shall, within a reasonable period of time before making an eligible rollover distribution, provide a written explanation to the recipient—
of the provisions under which the recipient may have the distribution directly transferred to an eligible retirement plan and that the automatic distribution by direct transfer applies to certain distributions in accordance with section 401
(a)(31)(B),
of the provision which requires the withholding of tax on the distribution if it is not directly transferred to an eligible retirement plan,
of the provisions under which the distribution will not be subject to tax if transferred to an eligible retirement plan within 60 days after the date on which the recipient received the distribution,
if applicable, of the provisions of subsections (d) and (e) of this section, and
of the provisions under which distributions from the eligible retirement plan receiving the distribution may be subject to restrictions and tax consequences which are different from those applicable to distributions from the plan making such distribution.
Eligible rollover distribution The term “eligible rollover distribution” has the same meaning as when used in subsection (c) of this section, paragraph (4) of section 403
(a), subparagraph (A) of section 403
(b)(8), or subparagraph (A) of section 457
(e)(16). Such term shall include any distribution to a designated beneficiary which would be treated as an eligible rollover distribution by reason of subsection (c)(11), orsection 403
(a)(4)(B), 403
(b)(8)(B), or 457
(e)(16)(B), if the requirements of subsection (c)(11) were satisfied.
Eligible retirement plan The term “eligible retirement plan” has the meaning given such term by subsection (c)(8)(B).
Limitation on exclusion for elective deferrals (1)
Limitation Notwithstanding subsections (e)(3) and (h)(1)(B), the elective deferrals of any individual for any taxable year shall be included in such individual’s gross income to the extent the amount of such deferrals for the taxable year exceeds the applicable dollar amount. The preceding sentence shall not apply to the portion of such excess as does not exceed the designated Roth contributions of the individual for the taxable year.
Applicable dollar amount For purposes of subparagraph (A), the applicable dollar amount shall be the amount determined in accordance with the following table:
Catch-up contributions In addition to subparagraph (A), in the case of an eligible participant (as defined in section 414
(v)), gross income shall not include elective deferrals in excess of the applicable dollar amount under subparagraph (B) to the extent that the amount of such elective deferrals does not exceed the applicable dollar amount under section 414
(v)(2)(B)(i) for the taxable year (without regard to the treatment of the elective deferrals by an applicable employer plan under section 414
Distribution of excess deferrals (A)
In general If any amount (hereinafter in this paragraph referred to as “excess deferrals”) is included in the gross income of an individual under paragraph (1) (or would be included but for the last sentence thereof) for any taxable year—
not later than the 1st March 1 following the close of the taxable year, the individual may allocate the amount of such excess deferrals among the plans under which the deferrals were made and may notify each such plan of the portion allocated to it, and
not later than the 1st April 15 following the close of the taxable year, each such plan may distribute to the individual the amount allocated to it under clause (i) (and any income allocable to such amount through the end of such taxable year).
Treatment of distribution under section 401(k) Except to the extent provided under rules prescribed by the Secretary, notwithstanding the distribution of any portion of an excess deferral from a plan under subparagraph (A)(ii), such portion shall, for purposes of applying section 401
(k)(3)(A)(ii), be treated as an employer contribution.
Taxation of distribution In the case of a distribution to which subparagraph (A) applies—
except as provided in clause (ii), such distribution shall not be included in gross income, and
any income on the excess deferral shall, for purposes of this chapter, be treated as earned and received in the taxable year in which such income is distributed.
(t) on any distribution described in the preceding sentence.
Partial distributions If a plan distributes only a portion of any excess deferral and income allocable thereto, such portion shall be treated as having been distributed ratably from the excess deferral and the income.
Elective deferrals For purposes of this subsection, the term “elective deferrals” means, with respect to any taxable year, the sum of—
(k)) to the extent not includible in gross income for the taxable year under subsection (e)(3) (determined without regard to this subsection),
any employer contribution to the extent not includible in gross income for the taxable year under subsection (h)(1)(B) (determined without regard to this subsection),
any employer contribution to purchase an annuity contract under section 403
(b) under a salary reduction agreement (within the meaning of section 3121
(a)(5)(D)), and
any elective employer contribution under section 408
(p)(2)(A)(i).
Cost-of-living adjustment In the case of taxable years beginning after December 31, 2006, the Secretary shall adjust the $15,000 amount under paragraph (1)(B) at the same time and in the same manner as under section 415
Disregard of community property laws This subsection shall be applied without regard to community property laws.
Coordination with section 72 For purposes of applying section 72, any amount includible in gross income for any taxable year under this subsection but which is not distributed from the plan during such taxable year shall not be treated as investment in the contract.
Special rule for certain organizations (A)
In general In the case of a qualified employee of a qualified organization, with respect to employer contributions described in paragraph (3)(C) made by such organization, the limitation of paragraph (1) for any taxable year shall be increased by whichever of the following is the least:
$15,000 reduced by the sum of—
the amounts not included in gross income for prior taxable years by reason of this paragraph, plus
the aggregate amount of designated Roth contributions (as defined in section 402A
(c)) permitted for prior taxable years by reason of this paragraph, or
the excess of $5,000 multiplied by the number of years of service of the employee with the qualified organization over the employer contributions described in paragraph (3) made by the organization on behalf of such employee for prior taxable years (determined in the manner prescribed by the Secretary).
Qualified organization For purposes of this paragraph, the term “qualified organization” means any educational organization, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches. Such term includes any organization described in section 414
(e)(3)(B)(ii). Terms used in this subparagraph shall have the same meaning as when used in section 415
(c)(4) (as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001).
Qualified employee For purposes of this paragraph, the term “qualified employee” means any employee who has completed 15 years of service with the qualified organization.
Years of service For purposes of this paragraph, the term “years of service” has the meaning given such term by section 403
Matching contributions on behalf of self-employed individuals not treated as elective employer contributions Except as provided in section 401
(k)(3)(D)(ii), any matching contribution described in section 401
(m)(4)(A) which is made on behalf of a self-employed individual (as defined in section 401
(c)) shall not be treated as an elective employer contribution under a qualified cash or deferred arrangement (as defined in section 401
(k)) for purposes of this title.
Special rules for simplified employee pensions For purposes of this chapter—
In general Except as provided in paragraph (2), contributions made by an employer on behalf of an employee to an individual retirement plan pursuant to a simplified employee pension (as defined in section 408
(k))—
shall not be treated as distributed or made available to the employee or as contributions made by the employee, and
if such contributions are made pursuant to an arrangement under section 408
(k)(6) under which an employee may elect to have the employer make contributions to the simplified employee pension on behalf of the employee, shall not be treated as distributed or made available or as contributions made by the employee merely because the simplified employee pension includes provisions for such election.
Limitations on employer contributions Contributions made by an employer to a simplified employee pension with respect to an employee for any year shall be treated as distributed or made available to such employee and as contributions made by the employee to the extent such contributions exceed the lesser of—
25 percent of the compensation (within the meaning of section 414
(s)) from such employer includible in the employee’s gross income for the year (determined without regard to the employer contributions to the simplified employee pension), or
(c)(1)(A), reduced in the case of any highly compensated employee (within the meaning of section 414
(q)) by the amount taken into account with respect to such employee under section 408
(k)(3)(D).
Distributions Any amount paid or distributed out of an individual retirement plan pursuant to a simplified employee pension shall be included in gross income by the payee or distributee, as the case may be, in accordance with the provisions of section 408
Treatment of self-employed individuals For purposes of this section, except as otherwise provided in subparagraph (A) of subsection (d)(4),
the term “employee” includes a self-employed individual (as defined in section 401
(c)(1)(B)) and the employer of such individual shall be the person treated as his employer under section 401
Effect of disposition of stock by plan on net unrealized appreciation (1)
In general For purposes of subsection (e)(4), in the case of any transaction to which this subsection applies, the determination of net unrealized appreciation shall be made without regard to such transaction.
Transaction to which subsection applies This subsection shall apply to any transaction in which—
the plan trustee exchanges the plan’s securities of the employer corporation for other such securities, or
the plan trustee disposes of securities of the employer corporation and uses the proceeds of such disposition to acquire securities of the employer corporation within 90 days (or such longer period as the Secretary may prescribe), except that this subparagraph shall not apply to any employee with respect to whom a distribution of money was made during the period after such disposition and before such acquisition.
Treatment of simple retirement accounts Rules similar to the rules of paragraphs (1) and (3) of subsection (h) shall apply to contributions and distributions with respect to a simple retirement account under section 408
Distributions from governmental plans for health and long-term care insurance (1)
In general In the case of an employee who is an eligible retired public safety officer who makes the election described in paragraph (6) with respect to any taxable year of such employee, gross income of such employee for such taxable year does not include any distribution from an eligible retirement plan maintained by the employer described in paragraph (4)(B) to the extent that the aggregate amount of such distributions does not exceed the amount paid by such employee for qualified health insurance premiums for such taxable year.
Limitation The amount which may be excluded from gross income for the taxable year by reason of paragraph (1) shall not exceed $3,000.
Distributions must otherwise be includible (A)
In general An amount shall be treated as a distribution for purposes of paragraph (1) only to the extent that such amount would be includible in gross income without regard to paragraph (1).
Application of section 72 Notwithstanding section 72, in determining the extent to which an amount is treated as a distribution for purposes of subparagraph (A), the aggregate amounts distributed from an eligible retirement plan in a taxable year (up to the amount excluded under paragraph (1)) shall be treated as includible in gross income (without regard to subparagraph (A)) to the extent that such amount does not exceed the aggregate amount which would have been so includible if all amounts to the credit of the eligible public safety officer in all eligible retirement plans maintained by the employer described in paragraph (4)(B) were distributed during such taxable year and all such plans were treated as 1 contract for purposes of determining under section 72 the aggregate amount which would have been so includible. Proper adjustments shall be made in applying section 72 to other distributions in such taxable year and subsequent taxable years.
Eligible retirement plan For purposes of paragraph (1), the term “eligible retirement plan” means a governmental plan (within the meaning of section 414
(d)) which is described in clause (iii), (iv), (v), or (vi) of subsection (c)(8)(B).
Eligible retired public safety officer The term “eligible retired public safety officer” means an individual who, by reason of disability or attainment of normal retirement age, is separated from service as a public safety officer with the employer who maintains the eligible retirement plan from which distributions subject to paragraph (1) are made.
Public safety officer The term “public safety officer” shall have the same meaning given such term by section 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796b
(9)(A)), as in effect immediately before the enactment of the National Defense Authorization Act for Fiscal Year 2013.
Qualified health insurance premiums The term “qualified health insurance premiums” means premiums for coverage for the eligible retired public safety officer, his spouse, and dependents (as defined in section 152), by an accident or health plan or qualified long-term care insurance contract (as defined in section 7702B
Direct payment to insurer required Paragraph (1) shall only apply to a distribution if payment of the premiums is made directly to the provider of the accident or health plan or qualified long-term care insurance contract by deduction from a distribution from the eligible retirement plan.
Related plans treated as 1 All eligible retirement plans of an employer shall be treated as a single plan.
Election described (A)
In general For purposes of paragraph (1), an election is described in this paragraph if the election is made by an employee after separation from service with respect to amounts not distributed from an eligible retirement plan to have amounts from such plan distributed in order to pay for qualified health insurance premiums.
Special rule A plan shall not be treated as violating the requirements of section 401, or as engaging in a prohibited transaction for purposes of section 503
(b), merely because it provides for an election with respect to amounts that are otherwise distributable under the plan or merely because of a distribution made pursuant to an election described in subparagraph (A).
Coordination with medical expense deduction The amounts excluded from gross income under paragraph (1) shall not be taken into account under section 213.
Coordination with deduction for health insurance costs of self-employed individuals The amounts excluded from gross income under paragraph (1) shall not be taken into account under section 162
(9)(A)).
(Aug. 16, 1954, ch. 736, 68A Stat. 135; Pub. L. 86–437, §§ 1, 2
(a),Apr. 22, 1960, 74 Stat. 79; Pub. L. 87–792, § 4(c),Oct. 10, 1962, 76 Stat. 825; Pub. L. 88–272, title II, §§ 221(c)(1), 232(e)(1)–(3), Feb. 26, 1964, 78 Stat. 75, 111; Pub. L. 91–172, title III, § 321(b)(1), title V, § 515(a)(1),Dec. 30, 1969, 83 Stat. 590, 643; Pub. L. 93–406, title II, §§ 2002(g)(5), 2005(a), (b)(1), (c)(1), (2),Sept. 2, 1974, 88 Stat. 968, 987, 990, 991: Pub. L. 94–267, § 1(a),Apr. 15, 1976, 90 Stat. 365; Pub. L. 94–455, title XIV, § 1402(b)(1)(C), (2), title XV, § 1512(a), title XIX, §§ 1901(a)(57)(A)–(C)(i), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1731, 1732, 1742, 1773, 1774, 1834; Pub. L. 95–30, title I, § 102(b)(4),May 23, 1977, 91 Stat. 137; Pub. L. 95–458, § 4(a), (c),Oct. 14, 1978, 92 Stat. 1257, 1259; Pub. L. 95–600, title I, §§ 101(d)(1), 135
(b), 157(f)(1), (g)(1), (h)(1),Nov. 6, 1978, 92 Stat. 2770, 2787, 2806–2808; Pub. L. 96–222, title I, § 101(a)(14)(C), (E)(i),Apr. 1, 1980, 94 Stat. 204, 205; Pub. L. 96–608, § 2(a),Dec. 28, 1980, 94 Stat. 3551; Pub. L. 97–34, title III, §§ 311(b)(2), (3)(A), (c), 314(c)(1),Aug. 13, 1981, 95 Stat. 280, 286; Pub. L. 97–448, title I, §§ 101(b), 103
(c)(7), (8)(A), (12)(D),Jan. 12, 1983, 96 Stat. 2366, 2376, 2377; Pub. L. 98–369, div. A, title IV, § 491(c)(2), (d)(9)–(11), title V, § 522(a)(1), (b)–(d)(8), title VII, § 713(c)(3), title X, § 1001(b)(3), (e),July 18, 1984, 98 Stat. 848, 849, 868–870, 957, 1011, 1012; Pub. L. 98–397, title II, §§ 204(c)(1), (3), (4), 207(a),Aug. 23, 1984, 98 Stat. 1448, 1449; Pub. L. 99–272, title XI, § 11012(c),Apr. 7, 1986, 100 Stat. 260; Pub. L. 99–514, title I, § 104(b)(5), title XI, §§ 1105(a), 1106(c)(2), 1108(b), 1112(c), 1121(c)(1), 1122(a), (b)(1)(A), (2), (e)(1), (2)(A), (g), title XVIII, §§ 1852(a)(5)(A), (b)(1)–(7), (c)(5), 1854(f)(2), 1875(c)(1)(A), 1898(a)(2), (3), (c)(1)(A), (7)(A)(i), (e), Oct. 22, 1986, 100 Stat. 2105, 2417, 2423, 2432, 2444, 2465, 2466, 2469, 2470, 2865–2867, 2881, 2894, 2942, 2943, 2951, 2954, 2955; Pub. L. 100–647, title I, §§ 1011(c)(1)–(6)(B), (11), (h)(4), 1011A(a)(1), (b)(4)(A)–(D), (5)–(8), (10), (c)(9), 1018(t)(8)(A), (C), (u)(1), (6), (7), title VI, § 6068(a),Nov. 10, 1988, 102 Stat. 3457–3459, 3464, 3472–3474, 3476, 3589, 3590, 3703; Pub. L. 101–239, title VII, § 7811(g)(2), (i)(13),Dec. 19, 1989, 103 Stat. 2409, 2411; Pub. L. 101–508, title XI, § 11801(c)(9)(I),Nov. 5, 1990, 104 Stat. 1388–526; Pub. L. 102–318, title V, §§ 521(a), (b)(9)–(11), 522(c)(1), July 3, 1992, 106 Stat. 300, 310, 311, 315; Pub. L. 103–465, title VII, § 732(c),Dec. 8, 1994, 108 Stat. 5005; Pub. L. 104–188, title I, §§ 1401(a)–(b)(2), (13), 1421(b)(3)(A), (9)(B), 1450(a)(2), 1704(t)(68), Aug. 20, 1996, 110 Stat. 1787–1789, 1796, 1798, 1814, 1891; Pub. L. 105–34, title XV, § 1501(a),Aug. 5, 1997, 111 Stat. 1058; Pub. L. 105–206, title VI, § 6005(c)(2)(A),July 22, 1998, 112 Stat. 800; Pub. L. 107–16, title VI, §§ 611(d)(1)–(3)(A), 617(b), (c), 632(a)(3)(G), 636(b)(1), 641(a)(2)(A), (B), (b)(2)–(d), (e)(4)–(6), 643(a), 644(a), 657(b), June 7, 2001, 115 Stat. 97, 98, 105, 114, 117, 119–123, 136; Pub. L. 107–147, title IV, § 411(l)(3), (o)(1), (p)(6), (q)(2),Mar. 9, 2002, 116 Stat. 47, 48, 51; Pub. L. 109–135, title IV, § 407(a),Dec. 21, 2005, 119 Stat. 2635; Pub. L. 109–280, title VIII, §§ 822(a), 829(a)(1), 845
(a),Aug. 17, 2006, 120 Stat. 998, 1001, 1013; Pub. L. 110–172, § 8(a)(1),Dec. 29, 2007, 121 Stat. 2483; Pub. L. 110–458, title I, §§ 108(f)(1)–(2)(B), (j), 109(b)(3), title II, § 201(b),Dec. 23, 2008, 122 Stat. 5109–5111, 5117.)
(c)(4) (as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001), referred to in subsec. (g)(7)(B), means section 415
(c)(4) of this title prior to its repeal by Pub. L. 107–16, title VI, § 632(a)(3)(E),June 7, 2001, 115 Stat. 114.
Subsection (d), referred to in subsec. (i), was amended generally by Pub. L. 104–188, title I, § 1401(a),Aug. 20, 1996, 110 Stat. 1787, and as so amended, no longer contains a par. (4).
2008—Subsec. (c)(4). Pub. L. 110–458, § 201(b), inserted concluding provisions.
Subsec. (c)(11)(A). Pub. L. 110–458, § 108(f)(1)(A), inserted “described in paragraph (8)(B)(iii)” after “eligible retirement plan” in introductory provisions.
Subsec. (c)(11)(A)(i). Pub. L. 110–458, § 108(f)(2)(B), struck out “for purposes of this subsection” after “eligible rollover distribution”.
Subsec. (c)(11)(B). Pub. L. 110–458, § 108(f)(1)(B), struck out “trust” before “designated beneficiary”.
Subsec. (f)(2)(A). Pub. L. 110–458, § 108(f)(2)(A), inserted at end “Such term shall include any distribution to a designated beneficiary which would be treated as an eligible rollover distribution by reason of subsection (c)(11), orsection 403
(e)(16)(B), if the requirements of subsection (c)(11) were satisfied.”
Subsec. (g)(2)(A)(ii). Pub. L. 110–458, § 109(b)(3), inserted “through the end of such taxable year” after “such amount”.
Subsec. (l)(1). Pub. L. 110–458, § 108(j)(1)(A), inserted “maintained by the employer described in paragraph (4)(B)” after “an eligible retirement plan” and struck out “of the employee, his spouse, or dependents (as defined in section 152)” after “qualified health insurance premiums”.
Subsec. (l)(3)(B). Pub. L. 110–458, § 108(j)(2), substituted “all amounts to the credit of the eligible public safety officer in all eligible retirement plans maintained by the employer described in paragraph (4)(B) were distributed during such taxable year and all such plans were treated as 1 contract for purposes of determining under section 72 the aggregate amount which would have been so includible” for “all amounts distributed from all eligible retirement plans were treated as 1 contract for purposes of determining the inclusion of such distribution under section 72”.
Subsec. (l)(4)(D). Pub. L. 110–458, § 108(j)(1)(B), inserted “(as defined in section 152)” after “dependents” and substituted “health plan” for “health insurance plan”.
Subsec. (l)(5)(A). Pub. L. 110–458, § 108(j)(1)(C), substituted “health plan” for “health insurance plan”.
2007—Subsec. (g)(7)(A)(ii)(II). Pub. L. 110–172substituted “permitted for prior taxable years by reason of this paragraph” for “for prior taxable years”. Amendment was executed to subsec. (g)(7)(A)(ii) as amended by Pub. L. 109–135, § 407(a)(1), as the probable intent of Congress, notwithstanding Pub. L. 110–172, § 8(b), which provided that the amendment take effect as if included in the provisions of Pub. L. 107–16to which it relates. See 2006 Amendment note and Effective Date of 2007 Amendment note below.
2006—Subsec. (c)(2)(A). Pub. L. 109–280, § 822(a), which directed the amendment of section 402
(c)(2)(A) by substituting “or to an annuity contract described in section 403
(b) and such trust or contract provides for separate accounting” for “which is part of a plan which is a defined contribution plan and which agrees to separately account” and inserting “(and earnings thereon)” after “so transferred”, without specifying the act to be amended, was executed to this section, which is section 402(c)(2)(A) of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.
Subsec. (c)(11). Pub. L. 109–280, § 829(a)(1), added par. (11).
Subsec. (l). Pub. L. 109–280, § 845(a), added subsec. (l).
2005—Subsec. (g)(1)(A). Pub. L. 109–135, § 407(a)(2), inserted “to” after “shall not apply”.
Subsec. (g)(7)(A)(ii). Pub. L. 109–135, § 407(a)(1), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “$15,000 reduced by amounts not included in gross income for prior taxable years by reason of this paragraph, or”.
2002—Subsec. (c)(2). Pub. L. 107–147, § 411(q)(2), inserted at end: “In the case of a transfer described in subparagraph (A) or (B), the amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).”
Subsec. (g)(1)(C). Pub. L. 107–147, § 411(o)(1), added subpar. (C).
Subsec. (g)(7)(B). Pub. L. 107–147, § 411(p)(6), substituted “2001).” for “2001.”
Subsec. (h)(2)(A). Pub. L. 107–147, § 411(l)(3), substituted “25 percent” for “15 percent”.
2001—Subsec. (c)(2). Pub. L. 107–16, § 643(a), inserted at end “The preceding sentence shall not apply to such distribution to the extent—
“(A) such portion is transferred in a direct trustee-to-trustee transfer to a qualified trust which is part of a plan which is a defined contribution plan and which agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible, or
“(B) such portion is transferred to an eligible retirement plan described in clause (i) or (ii) of paragraph (8)(B).”
Subsec. (c)(3). Pub. L. 107–16, § 644(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Paragraph (1) shall not apply to any transfer of a distribution made after the 60th day following the day on which the distributee received the property distributed.”
Subsec. (c)(4)(C). Pub. L. 107–16, § 636(b)(1), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “any hardship distribution described in section 401
(k)(2)(B)(i)(IV).”
Subsec. (c)(8)(B). Pub. L. 107–16, § 617(c), inserted concluding provisions.
Subsec. (c)(8)(B)(v). Pub. L. 107–16, § 641(a)(2)(A), added cl. (v).
Subsec. (c)(8)(B)(vi). Pub. L. 107–16, § 641(b)(2), added cl. (vi).
Subsec. (c)(9). Pub. L. 107–16, § 641(d), struck out before period at end “; except that a trust or plan described in clause (iii) or (iv) of paragraph (8)(B) shall not be treated as an eligible retirement plan with respect to such distribution”.
Subsec. (c)(10). Pub. L. 107–16, § 641(a)(2)(B), added par. (10).
Subsec. (f)(1). Pub. L. 107–16, § 641(e)(5), struck out “from an eligible retirement plan” after “rollover distribution” in introductory provisions.
Subsec. (f)(1)(A). Pub. L. 107–16, § 657(b), inserted before comma at end “and that the automatic distribution by direct transfer applies to certain distributions in accordance with section 401
(a)(31)(B)”.
Pub. L. 107–16, § 641(e)(6), substituted “an eligible retirement plan” for “another eligible retirement plan”.
Subsec. (f)(1)(B). Pub. L. 107–16, § 641(e)(6), substituted “an eligible retirement plan” for “another eligible retirement plan”.
Subsec. (f)(1)(E). Pub. L. 107–16, § 641(c), added subpar. (E).
Subsec. (f)(2)(A). Pub. L. 107–16, § 641(e)(4), substituted “, paragraph (4) of section 403
(e)(16)” for “or paragraph (4) of section 403
Subsec. (g)(1). Pub. L. 107–16, § 611(d)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Notwithstanding subsections (e)(3) and (h)(1)(B), the elective deferrals of any individual for any taxable year shall be included in such individual’s gross income to the extent the amount of such deferrals for the taxable year exceeds $7,000.”
Subsec. (g)(1)(A). Pub. L. 107–16, title VI, § 617(b)(1), inserted at end “The preceding sentence shall not apply the portion of such excess as does not exceed the designated Roth contributions of the individual for the taxable year.”
Subsec. (g)(2)(A). Pub. L. 107–16, title VI, § 617(b)(2), inserted “(or would be included but for the last sentence thereof)” after “paragraph (1)”.
Subsec. (g)(4). Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (5) as (4) and struck out heading and text of former par. (4). Text read as follows: “The limitation under paragraph (1) shall be increased (but not to an amount in excess of $9,500) by the amount of any employer contributions for the taxable year described in paragraph (3)(C).”
Subsec. (g)(5). Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (6) as (5). Former par. (5) redesignated (4).
Pub. L. 107–16, § 611(d)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The Secretary shall adjust the $7,000 amount under paragraph (1) at the same time and in the same manner as under section 415
(d); except that any increase under this paragraph which is not a multiple of $500 shall be rounded to the next lowest multiple of $500.”
Subsec. (g)(6). Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (7) as (6). Former par. (6) redesignated (5).
Subsec. (g)(7). Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (8) as (7).
Subsec. (g)(7)(B). Pub. L. 107–16, § 632(a)(3)(G), inserted “(as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001” before period at end.
Subsec. (g)(8), (9). Pub. L. 107–16, § 611(d)(3)(A), redesignated par. (9) as (8). Former par. (8) redesignated (7).
1998—Subsec. (c)(4)(C). Pub. L. 105–206added subpar. (C).
1997—Subsec. (g)(9). Pub. L. 105–34added par. (9).
1996—Subsec. (c)(10). Pub. L. 104–188, § 1401(b)(2), struck out par. (10) which read as follows:
“(10) Denial of averaging for subsequent distributions.—If paragraph (1) applies to any distribution paid to any employee, paragraphs (1) and (3) of subsection (d) shall not apply to any distribution (paid after such distribution) of the balance to the credit of the employee under the plan under which the preceding distribution was made (or under any other plan which, under subsection (d)(4)(C), would be aggregated with such plan).”
Subsec. (d). Pub. L. 104–188, § 1401(a), amended subsec. (d) generally, substituting provisions relating to taxability of beneficiary of certain foreign situs trusts for former provisions relating to tax on lump sum distributions.
Subsec. (e)(3). Pub. L. 104–188, § 1450(a)(2), inserted “or which is part of a salary reduction agreement under section 403
(b)” after “section 401
(k)(2))”.
Subsec. (e)(4)(D). Pub. L. 104–188, § 1401(b)(1), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows:
“(D) Lump sum distribution.—For purposes of this paragraph, the term ‘lump sum distribution’ has the meaning given such term by subsection (d)(4)(A) (without regard to subsection (d)(4)(F)).”
Subsec. (e)(5). Pub. L. 104–188, § 1401(b)(13), struck out par. (5) which read as follows:
“(5) Taxability of beneficiary of certain foreign situs trusts.—For purposes of subsections (a), (b), and (c), a stock bonus, pension, or profit-sharing trust which would qualify for exemption from tax under section 501
Subsec. (g)(3)(A). Pub. L. 104–188, § 1704(t)(68), substituted “subsection (e)(3)” for “subsection (a)(8)”.
Subsec. (g)(3)(D). Pub. L. 104–188, § 1421(b)(9)(B), added subpar. (D).
Subsec. (k). Pub. L. 104–188, § 1421(b)(3)(A), added subsec. (k).
1994—Subsec. (g)(5). Pub. L. 103–465inserted before period at end “; except that any increase under this paragraph which is not a multiple of $500 shall be rounded to the next lowest multiple of $500”.
1992—Subsecs. (a) to (d). Pub. L. 102–318, § 521(a), amended subsecs. (a) to (d) generally, substituting present provisions for former provisions which in subsec. (a) related to taxability of beneficiaries of exempt trusts, in subsec. (b) related to taxability of beneficiaries of nonexempt trusts, in subsec. (c) related to taxability of beneficiaries of certain foreign situs trusts, and subsec. (d) which had been previously repealed.
Subsec. (e). Pub. L. 102–318, § 521, amended subsec. (e) generally, substituting provisions relating to other rules applicable to exempt trusts for provisions relating to tax on lump sum distributions.
Subsec. (e)(6). Pub. L. 102–318, § 522(c)(1), added par. (6).
Subsec. (f). Pub. L. 102–318, § 521(a), amended subsec. (f) generally, substituting present provisions for provisions requiring a different time when explanation was to be provided and a different content of explanation to be given and using different definitions for “eligible rollover distribution” and “eligible retirement plan”.
Subsec. (g)(1). Pub. L. 102–318, § 521(b)(9), substituted “subsections (e)(3)” for “subsections (a)(8)”.
Subsec. (i). Pub. L. 102–318, § 521(b)(10), substituted “subsection (d)(4)” for “subsection (e)(4)”.
Subsec. (j)(1). Pub. L. 102–318, § 521(b)(11), substituted “(e)(4)” for “(a)(1) or (e)(4)(J)”.
1990—Subsec. (a)(3)(B). Pub. L. 101–508, § 11801(c)(9)(I)(i), substituted “section 424” for “section 425”.
Subsec. (a)(6)(B)(i). Pub. L. 101–508, § 11801(c)(9)(I)(ii), substituted “section 424
(f)” for “section 425
1989—Subsec. (e)(7). Pub. L. 101–239, § 7811(i)(13), added par. (7).
Subsec. (g)(3). Pub. L. 101–239, § 7811(g)(2), inserted “involving a one-time irrevocable election” after “similar arrangement” in last sentence.
1988—Subsec. (a)(1). Pub. L. 100–647, § 1011A(b)(8)(A), substituted “paragraph (4)” for “paragraphs (2) and (4)”.
Subsec. (a)(4). Pub. L. 100–647, § 1011A(b)(8)(B), struck out “or (2)” after “under paragraph (1)”.
Subsec. (a)(5)(D)(i). Pub. L. 100–647, § 1011A(b)(4)(C), inserted at end “Any distribution described in section 401
(a)(28)(B)(ii) shall be treated as meeting the requirements of subclauses (I) and (II).”
Pub. L. 100–647, § 1011A(b)(4)(A), repealed amendment by Pub. L. 99–514, § 1122(e)(1), which had amended cl. (i) generally, and provided that the Internal Revenue Code of 1986 shall be applied and administered as if such amendment had not been enacted. See 1986 Amendment note and Effective Date of 1988 Amendment note below.
Subsec. (a)(5)(D)(i)(I). Pub. L. 100–647, § 1011A(b)(4)(B), inserted “is payable as provided in clause (i), (iii), or (iv) of subsection (e)(4)(A) (without regard to the second sentence thereof) and” after “(I) such distribution”.
Subsec. (a)(5)(D)(iii). Pub. L. 100–647, § 1011A(b)(4)(D), struck out “10-year” after “Denial of” in heading.
Subsec. (a)(5)(F). Pub. L. 100–647, § 1011A(a)(1), substituted “resulting in any portion of a distribution being excluded from gross income under subparagraph (A)” for “described in subparagraph (A)”.
Subsec. (a)(6)(C). Pub. L. 100–647, § 1011A(b)(8)(C), struck out “paragraph (2) of subsection (a), and” after “paragraph (5)(A) applies,”.
Subsec. (a)(6)(E)(ii). Pub. L. 100–647, § 1011A(b)(8)(D), substituted “then paragraphs (1) and (3) of subsection (e) shall” for “then paragraph (2) of subsection (a), and paragraphs (1) and (3) of subsection (e), shall”.
Subsec. (a)(6)(G). Pub. L. 100–647, § 1018(t)(8)(A), redesignated subpar. (G), relating to treatment of potential future vesting, as (I).
Subsec. (a)(6)(H)(ii). Pub. L. 100–647, § 1011A(b)(5), inserted at end “A deposit shall not be treated as a frozen deposit unless on at least 1 day during the 60-day period described in paragraph (5)(C) (without regard to this subparagraph) such deposit is described in the preceding sentence.”
Subsec. (a)(6)(I). Pub. L. 100–647, § 1018(t)(8)(A), redesignated subpar. (G), relating to treatment of potential future vesting, as (I).
Subsec. (b)(2)(A). Pub. L. 100–647, § 1011(h)(4), added subpar. (A) and struck out former subpar. (A) which related to trust which is not exempt from tax under section 501
(a) because plan fails to meet requirements of section 410
Subsec. (b)(2)(B). Pub. L. 100–647, § 1011(h)(4), added subpar. (B) and struck out former subpar. (B) which related to failure of plan to meet requirements of section 410
(b) for more than 1 taxable year.
Subsec. (e)(1)(A). Pub. L. 100–647, § 1011A(b)(8)(E), struck out “ordinary income portion of a” after “subparagraph (B)) on the”.
Subsec. (e)(1)(B). Pub. L. 100–647, § 1011A(b)(10), inserted at end “For purposes of the preceding sentence, in determining the amount of tax under section 1
(c), section 1(g) shall be applied without regard to paragraph (2)(B) thereof.”
Pub. L. 100–647, § 1018(u)(1), made technical correction to directory language of Pub. L. 99–514, § 104(b)(5). See 1986 Amendment note below.
Pub. L. 100–647, § 1018(u)(6), related to execution of amendment by Pub. L. 99–514, § 1122(b)(2)(B), see 1986 Amendment note below.
Subsec. (e)(3). Pub. L. 100–647, § 1018(u)(7), related to execution of amendment by Pub. L. 99–514, § 1122(b)(2)(C), see 1986 Amendment note below.
Subsec. (e)(4)(A). Pub. L. 100–647, § 1011A(b)(8)(F), in concluding provisions, substituted “A” for “Except for purposes of subsection (a)(2) andsection 403
(a)(2), a”, and struck out “subsection (a)(2) of this section, and subsection (a)(2) ofsection 403,” before “the balance to”.
Subsec. (e)(4)(B)(i). Pub. L. 100–647, § 1011A(b)(6), substituted “employee” for “taxpayer”.
Subsec. (e)(4)(I). Pub. L. 100–647, § 1011A(c)(9), struck out “clause (ii) of” after “amounts described in”.
Subsec. (e)(4)(J). Pub. L. 100–647, § 1011A(b)(7), amended last sentence generally. Prior to amendment, last sentence read as follows: “To the extent provided by the Secretary, a taxpayer may elect before any distribution not to have this paragraph apply with respect to such distribution.”
Subsec. (e)(4)(L). Pub. L. 100–647, § 1011A(b)(8)(G), struck out subpar. (L) which related to election to treat pre-1974 participation as post-1973 participation.
Subsec. (e)(4)(M). Pub. L. 100–647, § 1011A(b)(8)(H), struck out “, subsection (a)(2) of this section, and section 403
(a)(2)” after “of this subsection”.
Subsec. (e)(4)(O). Pub. L. 100–647, § 6068(a), added subpar. (O).
Subsec. (e)(5). Pub. L. 100–647, § 1011A(b)(8)(I), struck out “and paragraph (2) of subsection (a)” after “of this subsection”.
Subsec. (e)(6)(C). Pub. L. 100–647, § 1011A(b)(8)(J), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “For purposes of this paragraph, special lump sum treatment applies to any distribution if any portion of such distribution—
“(i) is taxed under this subsection by reason of an election under paragraph (4)(B), or
“(ii) is treated as long-term capital gain under subsection (a)(2) of this section or section 403
Subsec. (f)(1). Pub. L. 100–647, § 1018(t)(8)(C), substituted “an eligible” for “a eligible”.
Subsec. (g). Pub. L. 100–647, § 1011(c)(6)(B), redesignatedsubsec. (g), relating to effect of disposition of stock by plan on net unrealized appreciation, as (j).
Pub. L. 100–647, § 1011(c)(6)(A), redesignatedsubsec. (g), relating to treatment of self-employed individuals, as (i).
Subsec. (g)(2). Pub. L. 100–647, § 1011(c)(2), substituted “Distribution” for “Required distribution” in heading.
Subsec. (g)(2)(C). Pub. L. 100–647, § 1011(c)(1), struck out “(and no tax shall be imposed under section 72
(t))” after “in gross income”, in cl. (i), substituted “such income is distributed” for “such excess deferral is made” in cl. (ii), and inserted at end “No tax shall be imposed under section 72
(t) on any distribution described in the preceding sentence.”
Subsec. (g)(2)(D). Pub. L. 100–647, § 1011(c)(3), added subpar. (D).
Subsec. (g)(3). Pub. L. 100–647, § 1011(c)(4), substituted “this subsection” for “this paragraph”.
Pub. L. 100–647, § 1011(c)(11), inserted at end “An employer contribution shall not be treated as an elective deferral described in subparagraph (C) if under the salary reduction agreement such contribution is made pursuant to a one-time irrevocable election made by the employee at the time of initial eligibility to participate in the agreement or is made pursuant to a similar arrangement specified in regulations.”
Subsec. (g)(8)(A)(iii). Pub. L. 100–647, § 1011(c)(5)(A), inserted “(determined in the manner prescribed by the Secretary)” after “prior taxable years”.
Subsec. (g)(8)(D). Pub. L. 100–647, § 1011(c)(5)(B), added subpar. (D).
Subsec. (i). Pub. L. 100–647, § 1011(c)(6)(A), redesignatedsubsec. (g), relating to treatment of self-employed individuals, as (i).
Subsec. (j). Pub. L. 100–647, § 1011(c)(6)(B), redesignatedsubsec. (g), relating to effect of disposition of stock by plan on net unrealized appreciation, as (j).
1986—Subsec. (a)(2). Pub. L. 99–514, § 1122(b)(1)(A), struck out par. (2) relating to capital gains treatment for portion of lump sum distribution.
Subsec. (a)(5)(D)(i). Pub. L. 99–514, § 1122(e)(1), amended cl. (i) generally, to read as follows: “Subparagraph (A) shall apply to a partial distribution only if the employee elects to have subparagraph (A) apply to such distribution and such distribution would be a lump sum distribution if subsection (e)(4)(A) were applied—
“(I) by substituting ‘50 percent of the balance to the credit of an employee’ for ‘the balance to the credit of an employee’,
“(II) without regard to clause (ii) thereof, the second sentence thereof, and subparagraph (B) of subsection (e)(4).
Any distribution described in section 401
(a)(28)(B)(ii) shall be treated as meeting the requirements of this clause.” This amendment was repealed by Pub. L. 100–647, § 1011A(b)(4)(A). See 1988 Amendment note above.
Pub. L. 99–514, § 1852(b)(2), inserted at end “For purposes of subclause (I), the balance to the credit of the employee shall not include any accumulated deductible employee contributions (within the meaning of section 72
(o)(5)).”
Subsec. (a)(5)(D)(ii). Pub. L. 99–514, § 1852(b)(5), substituted “a trust or plan described in subclause (III) or (IV)” for “a plan described in subclause (IV) or (V)”.
Subsec. (a)(5)(D)(iii). Pub. L. 99–514, § 1122(b)(2)(A), struck out “and capital gains treatment” in heading and amended text generally. Prior to amendment, cl. (iii) read as follows: “If an election under clause (i) is made with respect to any partial distribution paid to any employee—
“(I) paragraph (2) of this subsection,
“(II) paragraphs (1) and (3) of subsection (e), and
“(III) paragraph (2) of section 403
shall not apply to any distribution (paid after such partial distribution) of the balance to the credit of such employee under the plan under which such partial distribution was made (or under any other plan which, under subsection (e)(4)(C), would be aggregated with such plan).”
Subsec. (a)(5)(E)(v). Pub. L. 99–514, § 1852(b)(1), substituted “of all or any portion of” for “of any portion of”.
Subsec. (a)(5)(F). Pub. L. 99–514, § 1121(c)(1), amended subpar. (F) generally. Prior to amendment, subpar. (F) heading read “Special rules” and text read as follows:
“(i) Transfer treated as rollover contribution under section 408
“For purposes of this title, a transfer resulting in any portion of a distribution being excluded from gross income under subparagraph (A) to an eligible retirement plan described in subclause (I) or (II) of subparagraph (E)(iv) shall be treated as a rollover contribution described in section 408
“(ii) 5-percent owners
“An eligible retirement plan described in subclause (III) or (IV) of subparagraph (E)(iv) shall not be treated as an eligible retirement plan for the transfer of a distribution if the employee is a 5-percent owner at the time such distribution is made. For purposes of the preceding sentence, the term ‘5-percent owner’ means any individual who is a 5-percent owner (as defined in section 416
(i)(1)(B)) at any time during the 5 plan years preceding the plan year in which the distribution is made.”
Pub. L. 99–514, § 1852(b)(6), in cl. (i) substituted “a transfer resulting in any portion of a distribution being excluded from gross income under subparagraph (A)” for “a transfer described in subparagraph (A)”.
Pub. L. 99–514, § 1875(c)(1)(A), amended cl. (ii) generally. Prior to amendment, cl. (ii), key employees, read as follows: “An eligible retirement plan described in subclause (III) or (IV) of subparagraph (E)(iv) shall not be treated as an eligible retirement plan for the transfer of a distribution if any part of the distribution is attributable to contributions made on behalf of the employee while he was a key employee in a top-heavy plan. For purposes of the preceding sentence, the terms ‘key employee’ and ‘top-heavy plan’ have the same respective meanings as when used in section 416.”
Subsec. (a)(5)(G). Pub. L. 99–514, § 1852(a)(5)(A), added subpar. (G).
Subsec. (a)(6)(D)(v). Pub. L. 99–514, § 1852(b)(7), substituted “(7)” for “(7)(B)”.
Subsec. (a)(6)(F). Pub. L. 99–514, § 1898(c)(7)(A)(i), substituted “paragraph (5)” for “paragraph (5)(A)”.
Subsec. (a)(6)(G). Pub. L. 99–514, § 1898(a)(3), added subpar. (G) relating to treatment of potential future vesting.
Pub. L. 99–272added subpar. (G) relating to payments from certain pension plan termination trusts.
Subsec. (a)(6)(H). Pub. L. 99–514, § 1122(e)(2)(A), added subpar. (H).
Subsec. (a)(7). Pub. L. 99–514, § 1852(b)(4), inserted “; except that a trust or plan described in subclause (III) or (IV) of paragraph (5)(E)(iv) shall not be treated as an eligible retirement plan with respect to such distribution” after “the spouse were the employee”.
Subsec. (a)(9). Pub. L. 99–514, § 1898(c)(1)(A), substituted “any alternate payee who is the spouse or former spouse of the participant shall be treated” for “the alternate payee shall be treated”.
Subsec. (b). Pub. L. 99–514, § 1112(c), designated existing provisions as par. (1), inserted par. (1) heading, and added par. (2).
Pub. L. 99–514, § 1852(c)(5), substituted “section 72
(e)(5)” for “section 72
Subsec. (e)(1)(B). Pub. L. 99–514, § 1122(b)(2)(B), andPub. L. 100–647, § 1018(u)(6), redesignated subpar. (C) as (B), substituted “Amount of tax” for “Initial separate tax” in heading and “The amount of tax imposed by subparagraph (A)” for “The initial separate tax”, and struck out former subpar. (B) which related to computation of tax on lump sum distributions.
Pub. L. 99–514, § 104(b)(5), as amended by Pub. L. 100–647, § 1018(u)(1), struck out “the zero bracket amount applicable to such individual for the taxable year plus” after “amount equal to”.
Pub. L. 99–514, § 1122(a)(2)(A), (B), substituted “5” for “10” and “1/5” for “one-tenth”.
Subsec. (e)(1)(C) to (E). Pub. L. 99–514, § 1122(b)(2)(B)(i), redesignated subpars. (C) to (E) as (B) to (D), respectively.
Subsec. (e)(3). Pub. L. 99–514, § 1122(b)(2)(C), andPub. L. 100-647, § 1018(u)(7), substituted “total taxable amount” for “ordinary income portion”.
Subsec. (e)(4)(B). Pub. L. 99–514, § 1122(a)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “For purposes of this section and section 403, no amount which is not an annuity contract may be treated as a lump sum distribution under subparagraph (A) unless the taxpayer elects for the taxable year to have all such amounts received during such year so treated at the time and in the manner provided under regulations prescribed by the Secretary. Not more than one election may be made under this subparagraph with respect to any individual after such individual has attained age 591/2. No election may be made under this subparagraph by any taxpayer other than an individual, an estate, or a trust. In the case of a lump sum distribution made with respect to an employee to two or more trusts, the election under this subparagraph shall be made by the personal representative of the employee.”
Subsec. (e)(4)(E). Pub. L. 99–514, § 1122(b)(2)(D), struck out subpar. (E) defining “ordinary income portion” with respect to a lump sum distribution.
Subsec. (e)(4)(F). Pub. L. 99–514, § 1852(b)(3)(B), struck out subpar. (F) defining “employee”. See subsec. (g) of this section relating to treatment of self-employed individuals.
Subsec. (e)(4)(H). Pub. L. 99–514, § 1122(b)(2)(E), struck out “(but not for purposes of subsection (a)(2) orsection 403
(a)(2)(A))” after “For purposes of this subsection”.
Subsec. (e)(4)(J). Pub. L. 99–514, § 1122(g), inserted at end “To the extent provided by the Secretary, a taxpayer may elect before any distribution not to have this paragraph apply with respect to such distribution.”
Subsec. (e)(4)(N). Pub. L. 99–514, § 1106(c)(2), added subpar. (N).
Subsec. (e)(6). Pub. L. 99–514, § 1898(a)(2), added par. (6).
Subsec. (f)(1). Pub. L. 99–514, § 1898(e)(1), substituted “eligible rollover distribution” for “qualifying rollover distribution”.
Subsec. (f)(2). Pub. L. 99–514, § 1898(e)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “For purposes of this subsection, the terms ‘qualifying rollover distribution’ and ‘eligible retirement plan’ have the respective meanings given such terms by subsection (a)(5)(E).”
Subsec. (g). Pub. L. 99–514, § 1854(f)(2), added subsec. (g) relating to effect of disposition of stock by plan on net unrealized appreciation.
Pub. L. 99–514, § 1852(b)(3)(A), added subsec. (g) relating to treatment of self-employed individuals.
Pub. L. 99–514, § 1105(a), added subsec. (g) relating to limitation on exclusion for elective deferrals.
Subsec. (h). Pub. L. 99–514, § 1108(b), added subsec. (h).
1984—Subsec. (a)(2). Pub. L. 98–369, § 1001(b)(3), substituted “6 months” for “1 year”.
Subsec. (a)(5)(A)(i). Pub. L. 98–369, § 522(a)(1), substituted “any portion of the balance to the credit of an employee in a qualified trust is paid to him” for “the balance to the credit of an employee in a qualified trust is paid to him in a qualifying rollover distribution”.
Subsec. (a)(5)(B). Pub. L. 98–369, § 522(d)(1)(A), (2), substituted “qualified total distribution” for “qualifying rollover distribution”, and inserted “In the case of any partial distribution, the maximum amount transferred to which subparagraph (A) applies shall not exceed the portion of such distribution which is includible in gross income (determined without regard to subparagraph (A)).”
Subsec. (a)(5)(D). Pub. L. 98–369, § 522(b), added subpar. (D). Former subpar. (D) redesignated (E).
Subsec. (a)(5)(D)(iv)(III)–(V). Pub. L. 98–369, § 491(d)(9), struck out subcl. (III), which included a retirement bond described in section 409 within term “eligible retirement plan” and redesignated former subcls. (IV) and (V) and (III) and (IV), respectively.
Subsec. (a)(5)(E). Pub. L. 98–369, § 522(b), redesignated subpar. (D) as (E). Former subpar. (E) redesignated (F).
Subsec. (a)(5)(E)(i). Pub. L. 98–369, § 522(d)(1)(B), substituted “qualified total distribution” for “qualifying rollover distribution” in heading and text.
Subsec. (a)(5)(E)(ii)(II). Pub. L. 98–369, § 522(d)(3), substituted “gross income (determined without regard to this paragraph)” for “gross income”.
Subsec. (a)(5)(E)(v). Pub. L. 98–369, § 522(d)(4), substituted provision dealing with partial distribution for provision dealing with rollover of partial distributions of deductible employee contributions permitted.
Subsec. (a)(5)(F). Pub. L. 98–369, § 522(b), redesignated subpar. (E) as (F).
Subsec. (a)(5)(F)(i). Pub. L. 98–369, § 522(d)(5), substituted “subparagraph (E)(iv)” for “subparagraph (D)(iv)”.
Pub. L. 98–369, § 491(d)(10), substituted “or (II)” for “, (II), or (III)”.
Subsec. (a)(5)(F)(ii). Pub. L. 98–369, § 522(d)(5), substituted “subparagraph (E)(iv)” for “subparagraph (D)(iv)”.
Pub. L. 98–369, § 491(d)(11), substituted “(III) or (IV)” for “(IV) and (V)”.
Pub. L. 98–369, § 713(c)(3), substituted “Key employees” for “Self-employed individuals and owner-employees” in heading and “attributable to contributions made on behalf of the employee while he was a key employee in a top-heavy plan” for “attributable to a trust forming part of a plan under which the employee was an employee within the meaning of section 401
(c)(1) at the time contributions were made on his behalf under the plan” in text, and inserted sentence adopting the meaning of “key employee” and “top-heavy plan” used in section 416.
Subsec. (a)(6)(A), (B). Pub. L. 98–369, § 522(d)(6), substituted “paragraph (5)(E)(i)” for “paragraph (5)(D)(i)”.
Subsec. (a)(6)(D)(iii), (iv). Pub. L. 98–369, § 522(d)(7), substituted “employee contributions (or, in the case of a partial distribution, the amount not includible in gross income)” for “employee contributions”.
Subsec. (a)(6)(E)(i). Pub. L. 98–369, § 522(d)(1)(C), (8), substituted “qualified total distribution” for “qualifying rollover distribution”, and “paragraph (5)(D) or (5)(E)(i)(II)” for “paragraph (5)(D)(i)(II)”.
Subsec. (a)(6)(F). Pub. L. 98–397, § 204(c)(3), added subpar. (F).
Subsec. (a)(7). Pub. L. 98–369, § 522(c), substituted provisions relating to rollover where spouse receives distributions after death of employee for provisions dealing with rollover where spouse receives lump-sum distribution at death of employee.
Subsec. (a)(9). Pub. L. 98–397, § 204(c)(1), added par. (9).
Subsec. (e)(4)(L). Pub. L. 98–369, § 1001(b)(3), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below.
Subsec. (e)(4)(M). Pub. L. 98–397, § 204(c)(4), added subpar. (M).
Subsec. (e)(5). Pub. L. 98–369, § 491(c)(2), added par. (5).
Subsec. (f). Pub. L. 98–397, § 207(a), added subsec. (f).
1983—Subsec. (a)(5)(D)(v). Pub. L. 97–448, § 103(c)(8)(A), added cl. (v).
Subsec. (e)(1)(C). Pub. L. 97–448, § 101(b), substituted “the zero bracket amount applicable to such an individual for the taxable year” for “$2,300”.
Subsec. (e)(4)(A). Pub. L. 97–448, § 103(c)(7), substituted “this subsection, subsection (a)(2) of this section, and subsection (a)(2) ofsection 403” for “this section and section 403” in last sentence.
Subsec. (e)(4)(J). Pub. L. 97–448, § 103(c)(12)(D), amended Pub. L. 97–34, § 311(c)(2) [see 1981 Amendment note below], by substituting “section 72
(o)(5)” for “section 77
(o)(5)” in last sentence of subpar. (j).
1981—Subsec. (a)(1). Pub. L. 97–34, § 311(c)(1), inserted “(other than deductible employee contributions within the meaning of section 72
(o)(5))”.
Pub. L. 97–34, § 314(c)(1), struck out “or made available” after “distributed” in three places.
Subsec. (a)(5). Pub. L. 97–34, § 311(b)(3)(A), inserted “(other than accumulated deductible employee contributions within the meaning of section 72
(o)(5))” after “contributions” in subpar. (B) and added subcl. (III) in subpar. (D).
Subsec. (e)(4). Pub. L. 97–34, § 311(b)(2), (c)(2), added to subpar. (A) provision that for purposes of sections 402 and 403, the balance to the credit of the employee does not include the accumulated deductible employee contributions under the plan (within the meaning of section 72
(o)(5)), and added subpar. (J) provision making subpar. (J) inapplicable to distributions of accumulated deductible employee contributions (within the meaning of section 77
(o)(5)). See 1983 Amendment note above.
1980—Subsec. (a)(6)(D)(iii). Pub. L. 96–222, § 101(a)(14)(E)(i), substituted “may designate” for “many designate”.
Subsec. (a)(6)(E). Pub. L. 96–608added subpar. (E).
Subsec. (a)(7)(A)(i). Pub. L. 96–222, § 101(a)(14)(C), substituted “qualifying rollover distribution attributable to an employee is paid to the spouse of the employee after” for “lump-sum distribution from a qualified trust is paid to the spouse of the employee on account of”.
1978—Subsec. (a)(5). Pub. L. 95–458, § 4(a), among other changes, substituted provision permitting tax-free treatment for any portion of a lump sum distribution from a qualified retirement plan which is deposited in an individual retirement account or another qualifying plan for provision which required transfer of all such property received.
Subsec. (a)(5)(D)(i)(II). Pub. L. 95–600, § 157(h)(1), substituted “subparagraphs (B) and (H) of subsection (e)(4)” for “subsection (e)(4)(B)”.
Subsec. (a)(6). Pub. L. 95–458, § 4(c), in provision preceding subpar. (A) struck out “For purposes of paragraph (5)(A)(i)”, in subpar. (A) substituted “For purposes of paragraph (5)(D)(i), a complete” for “A complete”, in subpar. (B) inserted “For purposes of paragraph (5)(D)(i)—” after “assets.—” in provision preceding cl. (i), and added subpar. (C).
Subsec. (a)(6)(D). Pub. L. 95–600, § 157(f)(1), added subpar. (D).
Subsec. (a)(7). Pub. L. 95–600, § 157(g)(1), added par. (7).
Subsec. (a)(8). Pub. L. 95–600, § 135(b), added par. (8).
Subsec. (e)(1)(C). Pub. L. 95–600, § 101(d)(1), substituted “$2,300” for “$2,200”.
1977—Subsec. (e)(1)(C). Pub. L. 95–30substituted “amount equal to $2,200 plus one-tenth of the excess of” for “amount equal to one-tenth of the excess of” in provisions preceding cl. (i).
Subsec. (a)(2). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”.
Pub. L. 94–455, §§ 1402(b)(1)(C), 1906(b)(13)(A), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977 and struck out “or his delegate” after “Secretary”.
Subsec. (a)(4). Pub. L. 94–455, § 1901(a)(57)(A), substituted “basic pay” for “basic salary”, “civil service retirement laws” for “Civil Service Retirement Act (5 U.S.C. 2251)”, and “section 8331
(3) of title 5, United States Code” for “section 1(d) of such Act”.
Subsec. (a)(5). Pub. L. 94–267, § 1(a)(2), substituted “a payment” for “the lump-sum distribution”.
Subsec. (a)(5)(A). Pub. L. 94–267, § 1(a)(1), restructured provision by adding cl. (i) and designating existing provision as cl. (ii).
Subsec. (a)(6). Pub. L. 94–267, § 1(a)(3), added par. (6).
Subsec. (a)(6)(A). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (d). Pub. L. 94–455, § 1901(a)(57)(B), struck out subsec. (d) which related to certain trust agreements made before Oct. 21, 1942.
Subsec. (e)(4)(A). Pub. L. 94–455, § 1901(a)(57)(C)(i), substituted “Except for purposes of subsection (a)(2) andsection 403
(a)(2)” for “For purposes of this subparagraph”.
Subsec. (e)(4)(B), (J). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (e)(4)(L). Pub. L. 94–455, § 1402(b)(2), substituted “1 year” for “9 months”.
Pub. L. 94–455, §§ 1402(b)(1)(C), 1512(a), added subsec. (e)(4)(L) to be applicable to distributions and payments after Dec. 31, 1975, in taxable years beginning after Dec. 31, 1975, and provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.
1974—Subsec. (a)(2). Pub. L. 93–406, § 2005(b)(1), substituted provisions covering capital gains treatment of portions of lump sum distributions determined through the application of a fraction formula susceptible of producing a phaseout of capital gains treatment for provisions covering capital gains treatment of portions of lump sum distributions determined on a fixed formula.
Subsec. (a)(3)(C). Pub. L. 93–406, § 2005(c)(1), struck out subsec. (a)(3)(C) which defined “total distribution payable”.
Subsec. (a)(5). Pub. L. 93–406, §§ 2002(g)(5), 2005(c)(2), substituted provisions covering rollover amounts for provisions covering limitation on capital gains treatment.
Subsec. (e). Pub. L. 93–406, § 2005(a), substituted provisions covering tax on lump sum distributions for provisions covering plan termination distributions made after Dec. 31, 1953, and before Jan. 1, 1955.
1969—Subsec. (a)(5). Pub. L. 91–172, § 515(a)(1), added par. (5).
Subsec. (b). Pub. L. 91–172, § 321(b)(1), substituted provision for inclusion of contributions made by an employer to a nonexempt trust in the “gross income of the employee in accordance with section 83 (relating to property transferred in connection with performance of services), except that the value of the employee’s interest in the trust shall be substituted for the fair market value of the property for purposes of applying such section” for prior provision for inclusion in the “gross income of an employee for the taxable year in which the contribution is made to the trust in the case of an employee whose beneficial interest in such contribution is nonforfeitable at the time the contribution is made”, and provided that distributions of income of such trust before the annuity starting date (as defined in section 72
(e)(1) (relating to amount not received as annuities) and that a beneficiary of any such trust shall not be considered the owner of any portion of such trust under subpart E of part I of subch. J (relating to grantors and others treated as substantial owners).
1964—Subsec. (a)(1). Pub. L. 88–272, § 232(e)(1), struck out “except that section 72
Subsec. (a)(3)(B). Pub. L. 88–272, § 221(c)(1), substituted “subsections (e) and (f) ofsection 425” for “section 421
(d)(2) and (3)”.
Subsecs. (b), (d). Pub. L. 88–272, § 232(e)(2), (3), struck out “except that section 72
1962—Subsec. (a)(2). Pub. L. 87–792inserted sentence providing that this paragraph shall not apply to distributions paid to any distributee to the extent such distributions are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section 401
1960—Subsec. (a)(1). Pub. L. 86–437, § 2(a), substituted “paragraphs (2) and (4)” for “paragraph (2)”.
Subsec. (a)(4). Pub. L. 86–437, § 1, added par. (4).
Pub. L. 110–458, title I, § 108(f)(2)(C),Dec. 23, 2008, 122 Stat. 5109, provided that: “The amendments made by this paragraph [amending this section] shall apply with respect to plan years beginning after December 31, 2009.”
Amendment by sections 108
(f)(1)–(2)(B), (j) and 109(b)(3) of Pub. L. 110–458effective as if included in the provisions of Pub. L. 109–280to which the amendment relates, except as otherwise provided, see section 112 ofPub. L. 110–458, set out as a note under section 72 of this title.
Amendment by section 201(b) ofPub. L. 110–458applicable to calendar years beginning after December 31, 2008, with provisions relating to pension plan or contract amendments, see section 201(c) ofPub. L. 110–458, set out as a note under section 401 of this title.
Pub. L. 110–172, § 8(b),Dec. 29, 2007, 121 Stat. 2484, provided that: “The amendments made by this section [amending this section and section 3121 of this title] shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107–16] to which they relate.”
Pub. L. 109–280, title VIII, § 822(b),Aug. 17, 2006, 120 Stat. 998, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 2006.”
Pub. L. 109–280, title VIII, § 829(b),Aug. 17, 2006, 120 Stat. 1002, provided that: “The amendments made by this section [amending this section and sections 403 and 457 of this title] shall apply to distributions after December 31, 2006.”
Pub. L. 109–280, title VIII, § 845(c),Aug. 17, 2006, 120 Stat. 1015, provided that: “The amendments made by this section [amending this section and sections 403 and 457 of this title] shall apply to distributions in taxable years beginning after December 31, 2006.”
Pub. L. 109–135, title IV, § 407(c),Dec. 21, 2005, 119 Stat. 2635, provided that: “The amendments made by this section [amending this section and section 415 of this title] shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107–16] to which they relate.”
Amendment by section 611
(d)(1)–(3)(A) of Pub. L. 107–16applicable to years beginning after Dec. 31, 2001, see section 611(i)(1) ofPub. L. 107–16, set out as a note under section 415 of this title.
Pub. L. 107–16, title VI, § 617(f),June 7, 2001, 115 Stat. 106, provided that: “The amendments made by this section [enacting section 402A of this title and amending this section and sections 408A, 6047, and 6051 of this title] shall apply to taxable years beginning after December 31, 2005.”
Amendment by section 632(a)(3)(G) ofPub. L. 107–16applicable to years beginning after Dec. 31, 2001, see section 632(a)(4) ofPub. L. 107–16, set out as a note under section 72 of this title.
Pub. L. 107–16, title VI, § 636(b)(2),June 7, 2001, 115 Stat. 117, provided that: “The amendment made by this subsection [amending this section] shall apply to distributions made after December 31, 2001.”
Pub. L. 107–16, title VI, § 641(f),June 7, 2001, 115 Stat. 121, provided that:
“(1) Effective date.—The amendments made by this section [amending this section and sections 72, 219, 401, 403, 408, 415, 457, 3401, 3405, and 4973 of this title] shall apply to distributions after December 31, 2001.
“(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) [amending this section] 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 [June 7, 2001], 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) ofsection 1122 of the Tax Reform Act of 1986 [Pub. L. 99–514, set out as a note below] 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.”
Amendment by section 643(a) ofPub. L. 107–16applicable to distributions made after Dec. 31, 2001, see section 643(d) ofPub. L. 107–16, set out as a note under section 401 of this title.
Pub. L. 107–16, title VI, § 644(c),June 7, 2001, 115 Stat. 123, provided that: “The amendments made by this section [amending this section and section 408 of this title] shall apply to distributions after December 31, 2001.”
Amendment by section 657(b) ofPub. L. 107–16applicable to distributions made after Mar. 28, 2005, see section 657(d) ofPub. L. 107–16, set out as a note under section 401 of this title.
Pub. L. 105–206, title VI, § 6005(c)(2)(C),July 22, 1998, 112 Stat. 800, provided that: “The amendments made by this paragraph [amending this section and section 403 of this title] shall apply to distributions after December 31, 1998.”
Section 1501(c)(1) ofPub. L. 105–34provided that: “The amendment made by subsection (a) [amending this section] shall apply to years beginning after December 31, 1997.”
Section 1401(c) ofPub. L. 104–188provided that:
“(1) In general.—The amendments made by this section [amending this section and sections 55, 62, 401, 406, 407, 691, 871, 877, and 4980A of this title] shall apply to taxable years beginning after December 31, 1999.
“(2) Retention of certain transition rules.—The amendments made by this section shall not apply to any distribution for which the taxpayer is eligible to elect the benefits of section 1122(h)(3) or (5) of the Tax Reform Act of 1986 [Pub. L. 99–514, set out below]. Notwithstanding the preceding sentence, individuals who elect such benefits after December 31, 1999, shall not be eligible for 5-year averaging under section 402(d) of the Internal Revenue Code of 1986 (as in effect immediately before such amendments).”
Amendment by section 1421(b)(3)(A), (9)(B) ofPub. L. 104–188applicable to taxable years beginning after Dec. 31, 1996, see section 1421(e) ofPub. L. 104–188, set out as a note under section 72 of this title.
Amendment by section 1450(a)(2) ofPub. L. 104–188applicable to taxable years beginning after Dec. 31, 1995, see section 1450(a)(3) ofPub. L. 104–188, set out in a Modifications of Subsection (b) of This Section note under section 403 of this title.
Section 521(e) ofPub. L. 102–318provided that:
“(1) In general.—The amendments made by this section [amending this section and sections 55, 62, 72, 219, 401, 403, 406 to 408, 411, 414, 415, 457, 691, 871, 877, 1441, 3121, 3306, 3405, 4973, 4980A, and 7701 of this title] shall apply to distributions after December 31, 1992.
“(2) Special rule for partial distributions.—For purposes of section 402(a)(5)(D)(i)(II) of the Internal Revenue Code of 1986 (as in effect before the amendments made by this section), a distribution before January 1, 1993, which is made before or at the same time as a series of periodic payments shall not be treated as one of such series if it is not substantially equal in amount to other payments in such series.”
Amendment by section 522(c)(1) ofPub. L. 102–318applicable, except as otherwise provided, to distributions after Dec. 31, 1992, see section 522(d) ofPub. L. 102–318, set out as a note under section 401 of this title.
Section 7811(i)(13) ofPub. L. 101–239provided that the amendment made by that section is effective with respect to taxable years ending after Dec. 19, 1989 (or, at the election of the taxpayer, beginning after Dec. 31, 1986).
Amendment by section 7811(g)(2) ofPub. L. 101–239effective, 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 ofPub. L. 101–239, set out as a note under section 1 of this title.
(c)(1)–(6)(B), (11), (h)(4), 1011A(a)(1), (b)(4)(A)–(D), (5)–(8), (10), (c)(9), and 1018(t)(8)(A), (C), (u)(1), (6), (7) of Pub. L. 100–647effective, 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) ofPub. L. 100–647, set out as a note under section 1 of this title.
Section 6068(b) ofPub. L. 100–647provided that: “The amendment made by this section [amending this section] shall apply to taxable years ending after December 31, 1984.”
Amendment by section 104(b)(5) ofPub. L. 99–514applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) ofPub. L. 99–514, set out as a note under section 1 of this title.
Section 1105(c) ofPub. L. 99–514, as amended by Pub. L. 100–647, title I, § 1011(c)(8), (9),Nov. 10, 1988, 102 Stat. 3458, provided that:
“(1) In general.—Except as provided in this subsection, the amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1986.
“(2) Deferrals under collective bargaining agreements.—In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before March 1, 1986, the amendment made by subsection (a) shall not apply to contributions made pursuant to such an agreement for taxable years beginning before the earlier of—
“(A) the date on which such agreement terminates (determined without regard to any extension thereof after February 28, 1986), or
“(B) January 1, 1989.
“(3) Distributions made before plan amendment.—
“(A) In general.—If a plan amendment is required to allow the plan to make any distribution described in section 402(g)(2)(A)(ii) of the Internal Revenue Code of 1986, any such distribution which is made before the close of the 1st plan year for which such amendment is required to be in effect under section 1140 [set out as a note under section 401 of this title] shall be treated as made in accordance with the provisions of such plan.
“(B) Distributions pursuant to model amendment.—
“(i) Secretary to prescribe amendment.—The Secretary of the Treasury or his delegate shall prescribe an amendment which allows a plan to make any distribution described in section 402(g)(2)(A)(ii) of such Code.
“(ii) Adoption by plan.—If a plan adopts the amendment prescribed under clause (i) and makes a distribution in accordance with such amendment, such distribution shall be treated as made in accordance with the provisions of the plan.
“(4) Special rule for taxable years of partnerships which include january 1, 1987.—In the case of the taxable year of any partnership which begins before January 1, 1987, and ends after January 1, 1987, elective deferrals (within the meaning of section 402(g)(3) of the Internal Revenue Code of 1986) made on behalf of a partner for such taxable year shall, for purposes of section 402(g)(3) of such Code, be treated as having been made ratably during such taxable year.
“(5) Cash or deferred arrangements.—The amendments made by this section [amending this section and section 6051 of this title] shall not apply to employer contributions made during 1987 and attributable to services performed during 1986 under a qualified cash or deferred arrangement (as defined in section 401(k) of the Internal Revenue Code of 1986) if, under the terms of such arrangement as in effect on August 16, 1986—
“(A) the employee makes an election with respect to such contribution before January 1, 1987, and
“(B) the employer identifies the amount of such contribution before January 1, 1987.
“(6) Reporting requirements.—The amendments made by subsection (b) [amending section 6051 of this title] shall apply to calendar years beginning after December 31, 1986.”
Amendment by section 1106(c)(2) ofPub. L. 99–514applicable to years beginning after Dec. 31, 1986, see section 1106(i) ofPub. L. 99–514, set out as a note under section 415 of this title.
Amendment by section 1108(b) ofPub. L. 99–514applicable to years beginning after Dec. 31, 1986, see section 1108(h) ofPub. L. 99–514, set out as a note under section 219 of this title.
Amendment by section 1112(c) ofPub. L. 99–514applicable to plan years beginning after Dec. 31, 1988, with special rule regarding collective bargaining agreements ratified before Mar. 1, 1986, and with provision for waiver of excise tax on reversions, see section 1112(e) ofPub. L. 99–514, set out as a note under section 401 of this title.
Amendment by section 1121(c)(1) ofPub. L. 99–514applicable to years beginning after Dec. 31, 1986, with special provisions for plans maintained pursuant to collective bargaining agreements ratified before Mar. 1, 1986, and transition rules, see section 1121(d) ofPub. L. 99–514, set out as a note under section 401 of this title.
Section 1122(h) ofPub. L. 99–514, as amended by Pub. L. 100–647, title I, § 1011A(b)(11)–(15), Nov. 10, 1988, 102 Stat. 3474, 3475, provided that:
“(1) In general.—Except as otherwise provided in this subsection, the amendments made by this section [amending this section and sections 72, 403, and 408 of this title] shall apply to amounts distributed after December 31, 1986, in taxable years ending after such date.
“(A) Subsection (c)(1).—The amendment made by subsection (c)(1) [amending section 72 of this title] shall apply to individuals whose annuity starting date is after July 1, 1986.
“(B) Subsection (c)(2).—The amendment made by subsection (c)(2) [amending section 72 of this title] shall apply to individuals whose annuity starting date is after December 31, 1986, except that section 72(b)(3) of the Internal Revenue Code of 1986 (as added by such subsection) shall apply to individuals whose annuity starting date is after July 1, 1986.
“(C) Special rule for amounts not received as annuities.—In the case of any plan not described in section 72(e)(8)(D) of the Internal Revenue Code of 1986 (as added by subsection (c)(3)), the amendments made by subsection (c)(3) [amending section 72 of this title] shall apply to amounts received after July 1, 1986.
“(3) Special rule for individuals who attained age 50 before january 1, 1986.—
“(A) In general.—In the case of a lump sum distribution to which this paragraph applies—
“(i) the existing capital gains provisions shall continue to apply, and
“(ii) the requirement of subparagraph (B) of section 402(e)(4) of the Internal Revenue Code of 1986 (as amended by subsection (a)) that the distribution be received after attaining age 591/2 shall not apply.
“(B) Computation of tax.—If subparagraph (A) applies to any lump sum distribution of any taxpayer for any taxable year, the tax imposed by section 1 of the Internal Revenue Code of 1986 on such taxpayer for such taxable year shall be equal to the sum of—
“(i) the tax imposed by such section 1 on the taxable income of the taxpayer (reduced by the portion of such lump sum distribution to which clause (ii) applies), plus
“(ii) 20 percent of the portion of such lump sum distribution to which the existing capital gains provisions continue to apply by reason of this paragraph.
“(C) Lump sum distributions to which paragraph applies.—This paragraph shall apply to any lump sum distribution if—
“(i) such lump sum distribution is received by an employee who has attained age 50 before January 1, 1986 or by an individual, estate, or trust with respect to such an employee, and
“(ii) the taxpayer makes an election under this paragraph.
“(4) 5-year phase-out of capital gains treatment.—
“(A) Notwithstanding the amendment made by subsection (b) [amending this section and section 403 of this title], if the taxpayer elects the application of this paragraph with respect to any distribution after December 31, 1986, and before January 1, 1992, the phase-out percentage of the amount which would have been treated, without regard to this subparagraph, as long-term capital gain under the existing capital gains provisions shall be treated as long-term capital gain.
“In the case of distributions during calendar year: The phase-out percentage is: 1987 100 1988 95 1989 75 1990 50 1991 25.
“(C) No more than 1 election may be made under this paragraph with respect to an employee. An election under this paragraph shall be treated as an election under section 402(e)(4)(B) of the Internal Revenue Code of 1986 for purposes of such Code.
“(5) Election of 10-year averaging.—An employee who has attained age 50 before January 1, 1986, and elects the application of paragraph (3) or section 402(e)(1) of the Internal Revenue Code of 1986 (as amended by this Act) may elect to have such section applied by substituting ‘10 times’ for ‘5 times’ and ‘1/10’ for ‘1/5’ in subparagraph (B) thereof. For purposes of the preceding sentence, section 402(e)(1) of such Code shall be applied by using the rate of tax in effect under section 1 of the Internal Revenue Code of 1954 for taxable years beginning during 1986 and by including in gross income the zero bracket amount in effect under section 63(d) of such Code for such years. This paragraph shall also apply to an individual, estate, or trust which receives a distribution with respect to an employee described in this paragraph.
“(6) Existing capital gain provisions.—For purposes of paragraphs (3) and (4), the term ‘existing capital gains provisions’ means the provisions of paragraph (2) of section 402(a) of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of this Act [Oct. 22, 1986]) and paragraph (2) of section 403(a) of such Code (as so in effect).
“(7) Subsection (d).—The amendments made by subsection (d) [amending section 403 of this title] shall apply to taxable years beginning after December 31, 1985.
“(8) Frozen deposits.—The amendments made by subsection (e)(2) [amending this section and section 408 of this title] shall apply to amounts transferred to an employee before, on, or after the date of the enactment of this Act [Oct. 22, 1986], except that in the case of an amount transferred on or before such date, the 60-day period referred to in section 402(a)(5)(C) of the Internal Revenue Code of 1986 shall not expire before the 60th day after the date of the enactment of this Act.
“(9) Special rule for state plans.—In the case of a plan maintained by a State which on May 5, 1986, permitted withdrawal by the employee of employee contributions (other than as an annuity), section 72(e) of the Internal Revenue Code of 1986 shall be applied—
“(A) without regard to the phrase ‘before separation from service’ in paragraph (8)(D), and
“(B) by treating any amount received (other than as an annuity) before or with the 1st annuity payment as having been received before the annuity starting date.”
Amendment by section 1852(a)(5)(A), (b)(1)–(7), (c)(5) of Pub. L. 99–514effective, 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 ofPub. L. 99–514, set out as a note under section 48 of this title.
Section 1854(f)(4)(C) ofPub. L. 99–514, as amended by Pub. L. 100–647, title I, § 1011(c)(6)(C),Nov. 10, 1988, 102 Stat. 3458, provided that: “The amendments made by paragraph (2) [amending this section] shall apply to any transaction occurring after December 31, 1984, except that in the case of any transaction occurring before the date of the enactment of this Act [Oct. 22, 1986], the period under which proceeds are required to be invested under section 402(j) of the Internal Revenue Code of 1954 [now 1986] (as added by paragraph (2)) shall not end before the earlier of 1 year after the date of such transaction or 180 days after the date of the enactment of this Act.”
Section 1875(c)(1)(B) ofPub. L. 99–514provided that: “The amendments made by subparagraph (A) [amending this section] shall apply to distributions after the date of the enactment of this Act [Oct. 22, 1986]. Such amendments shall apply also to distributions after 1983 and on or before the date of the enactment of this Act to individuals who are not 5-percent owners (as defined in section 402(a)(5)(F)(ii) of the Internal Revenue Code of 1954 [now 1986] (as amended by this paragraph)).”
Amendment by section 1898(a)(2), (3), (c)(7)(A)(i), (e) ofPub. L. 99–514effective as if included in the provision of the Retirement Equity Act of 1984, Pub. L. 98–397, to which such amendment relates, except as otherwise provided, see section 1898(j) ofPub. L. 99–514, set out as a note under section 401 of this title.
Amendment by section 1898(c)(1)(A) ofPub. L. 99–514applicable to payments made after Oct. 22, 1986, see section 1898(c)(1)(C) ofPub. L. 99–514, set out as a note under section 72 of this title.
Amendment by section 204 ofPub. L. 98–397effective Jan. 1, 1985, and amendment by section 207 ofPub. L. 98–397applicable to plan years beginning after Dec. 31, 1984, except as otherwise provided, see sections 302 and 303 ofPub. L. 98–397, set out as a note under section 1001 of Title 29, Labor.
Amendment by section 491(d)(9)–(11) of Pub. L. 98–369applicable to obligations issued after Dec. 31, 1983, see section 491(f)(1) ofPub. L. 98–369, set out as a note under section 62 of this title.
Section 491(f)(2) ofPub. L. 98–369provided that: “The amendment made by subsection (c) [amending this section and section 405 of this title] shall apply to redemptions after the date of the enactment of this Act [July 18, 1984] in taxable years ending after such date.”
Section 522(e) ofPub. L. 98–369, as amended by Pub. L. 99–514, title XVIII, § 1852(b)(9),Oct. 22, 1986, 100 Stat. 2867, provided that: “The amendments made by this section [amending this section and sections 403, 408, and 409 of this title] shall apply to distributions made after the date of the enactment of this Act [July 18, 1984], in taxable years ending after such date.
Section 713(c)(4) ofPub. L. 98–369, as added by Pub. L. 99–514, title XVIII, § 1875(c)(2),Oct. 22, 1986, 100 Stat. 2894, provided that: “The amendment made by paragraph (3) [amending this section] shall apply to distributions after July 18, 1984.”
Amendment by section 1001(b)(3) ofPub. L. 98–369applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) ofPub. L. 98–369, set out as a note under section 166 of this title.
Amendment by section 311(b)(2), (3)(A), (c) ofPub. L. 97–34, applicable to taxable years beginning after Dec. 31, 1981, see section 311(i)(1) ofPub. L. 97–34, set out as a note under section 219 of this title.
Section 314(c)(2) ofPub. L. 97–34provided that: “The amendment made by paragraph (1) [amending this section] shall apply to taxable years beginning after December 31, 1981.”
Section 2(b) ofPub. L. 96–608, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) In general.—The amendment made by subsection (a) [amending this section] shall apply to payments made in taxable years beginning after December 31, 1978.
“(2) Transitional rule.—In the case of any payment made before January 1, 1982, in a taxable year beginning after December 31, 1978, which is treated as a qualifying rollover distribution (as defined in section 402(a)(5)(D)(i) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) by reason of the amendment made by subsection (a), the applicable period specified in section 402(a)(5)(C) of such Code shall not expire before the close of December 31, 1981.”
Amendment by section 101(d) ofPub. L. 95–600effective with respect to taxable years beginning after Dec. 31, 1978, see section 101(f)(1) ofPub. L. 95–600, set out as a note under section 1 of this title.
Amendment by section 135(b) ofPub. L. 95–600applicable to plan years beginning after December 31, 1979, see section 135(c)(1) ofPub. L. 95–600, set out as a note under section 401 of this title.
Section 157(h)(3)(A) ofPub. L. 95–600, as amended by Pub. L. 96–222, title I, § 101(a)(14)(A),Apr. 1, 1980, 94 Stat. 204, provided that: “The amendments made by this subsection [amending this section and section 408 of this title] shall apply to payments made in taxable years beginning after December 31, 1977.”
Section 157(f)(2) ofPub. L. 95–600, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to qualifying rollover distributions (as defined in section 402(a)(5)(D)(i) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) completed after December 31, 1978, in taxable years ending after such date.”
Section 157(g)(4) ofPub. L. 95–600provided that: “The amendments made by this subsection [amending this section and sections 403 and 408 of this title] shall apply to lump-sum distributions completed after December 31, 1978, in taxable years ending after such date.”
Section 4(d) ofPub. L. 95–458, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) In general.—The amendments made by subsections (a), (b), and (c) [amending this section and section 403 of this title] shall apply with respect to taxable years beginning after December 31, 1974.
“(2) Validation of certain attempted rollovers.—If the taxpayer—
“(A) attempted to comply with the requirements of section 402(a)(5) or 403(a)(4) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] for a taxable year beginning before the date of the enactment of this Act, [Oct. 14, 1978], and
“(B) failed to meet the requirements of such section that all property received in the distribution be transferred,
such section (as amended by this section) shall be applied by treating any transfer of property made on or before December 31, 1978, as if it were made on or before the 60th day after the day on which the taxpayer received such property. For purposes of the preceding sentence, a transfer of money shall be treated as a transfer of property received in a distribution to the extent that the amount of the money transferred does not exceed the highest fair market value of the property distributed during the 60-day period beginning on the date on which the taxpayer received such property.”
Section 1512(b) ofPub. L. 94–455provided that: “The amendment made by this section [amending this section] shall apply to distributions and payments made after December 31, 1975, in taxable years beginning after such date.”
Section 1901(a)(57)(C)(ii) ofPub. L. 94–455provided that: “The amendment made by clause (i) [amending this section] shall apply with respect to distributions or payments made after December 31, 1973, in taxable years beginning after such date.”
Section 2002(i)(3) ofPub. L. 93–406, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by subsection (g)(5) and (6) [amending this section and section 403 of this title] shall apply on and after the date of enactment of this Act [Sept. 2, 1974] with respect to contributions to an employees’ trust described in section 401(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] which is exempt from tax under section 501(a) of such Code or an annuity plan described in section 403(a) of such Code.”
Section 2005(d) ofPub. L. 93–406provided that: “The amendments made by this section [amending this section and sections 46, 50A, 56, 62, 72, 101, 122, 403, 405, 406, 407, 871, 877, 901, 1304, and 1348 of this title] shall apply only with respect to distributions or payments made after December 31, 1973, in taxable years beginning after such date.”
Amendment by section 321(b)(1) ofPub. L. 91–172applicable with respect to contributions made and premiums paid after Aug. 1, 1969, see section 321(d) ofPub. L. 91–172, set out as an Effective Date note under section 83 of this title.
Section 515(d) ofPub. L. 91–172provided that: “The amendments made by this section [amending this section and sections 72, 403, 405, 406, 407 and 1304 of this title] shall apply to taxable years ending after December 31, 1969.”
Amendment by section 221(c)(1) ofPub. L. 88–272applicable to taxable years ending after Dec. 31, 1963, see section 221(e) ofPub. L. 88–272, set out as a note under section 421 of this title.
Amendment by section 232(e)(1)–(3) of Pub. L. 88–272applicable to taxable years beginning after Dec. 31, 1963, see section 232(g) ofPub. L. 88–272, set out as a note under section 5 of this title.
Section 3 ofPub. L. 86–437provided that: “The amendments made by this Act [amending this section and section 871 of this title] shall apply only with respect to taxable years beginning after December 31, 1959.”
Section 1509 ofPub. L. 105–34provided that: “The Secretary of the Treasury or his delegate shall clarify that, under the Internal Revenue Service regulations protecting pension plans from disqualification by reason of the receipt of invalid rollover contributions under section 402(c) of the Internal Revenue Code of 1986, in order for the administrator of the plan receiving any such contribution to reasonably conclude that the contribution is a valid rollover contribution it is not necessary for the distributing plan to have a determination letter with respect to its status as a qualified plan under section 401 of such Code.”
Section 521(d) ofPub. L. 102–318provided that: “The Secretary of the Treasury or his delegate shall develop a model explanation which a plan administrator may provide to a recipient in order to meet the requirements of section 402(f) of the Internal Revenue Code of 1986.”
Section 1011(c)(10) ofPub. L. 100–647provided that: “Notwithstanding any other provision of law, a plan may incorporate by reference the dollar limitations under section 402(g) of the Internal Revenue Code of 1986.”
Section 1011A(a)(5) ofPub. L. 100–647provided that: “Section 402(a)(5)(F)(ii) of the Internal Revenue Code of 1954 shall not apply to distributions after October 22, 1986, and before the 1st taxable year beginning after 1986 which are attributable to benefits which accrued before January 1, 1985.”
Section 1011A(b)(4)(E) ofPub. L. 100–647provided that: “Section 402(a)(5)(D)(i)(II) of the 1986 Code (as in effect after the amendment made by subparagraph (A)) shall not apply to distributions after December 31, 1986, and before March 31, 1988.”
Section 1124 ofPub. L. 99–514, as amended by Pub. L. 100–647, title I, § 1011A(d),Nov. 10, 1988, 102 Stat. 3476, provided that:
“(a) In General.—If an employee dies, separates from service, or becomes disabled before 1987 and an individual, trust, or estate receives a lump-sum distribution with respect to such employee after December 31, 1986, and before March 16, 1987, on account of such death, separation from service, or disability, then, for purposes of the Internal Revenue Code of 1986, such individual, estate, or trust may treat such distribution as if it were received in 1986.
“(b) Special Rule for Terminated Plan.—In the case of an individual, estate, or trust who receives with respect to an employee a distribution from a terminated plan which was maintained by a corporation organized under the laws of the State of Nevada, the principal place of business of which is Denver, Colorado, and which filed for relief from creditors under the United States Bankruptcy Code on August 28, 1986, the individual, estate, or trust may treat a lump sum distribution received from such plan before June 30, 1987, as if it were received in 1986.
“(c) Lump Sum Distribution.—For purposes of this section, the term ‘lump sum distribution’ has the meaning given such term by section 402(e)(4)(A) of the Internal Revenue Code of 1986, without regard to subparagraph (B) or (H) of section 402(e)(4) of such Code.”
Section 551 ofPub. L. 98–369, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that:
“(a) In General.—For purposes of the Internal Revenue Code [of] 1986 [formerly I.R.C. 1954], if—
“(1) a distribution was made from a qualified terminated plan to an employee on December 16, 1976, and on January 6, 1977, such employee transferred all of the property received in such distribution to an individual retirement account (within the meaning of section 408(a) of such Code) established for the benefit of such employee, and
“(2) the remaining balance to the credit of such employee in such qualified terminated plan was distributed to such employee on January 21, 1977, and all the property received by such employee in such distribution was transferred by such employee to such individual retirement account on January 21, 1977,
“(b) Qualified Terminated Plan.—For purposes of this section, the term ‘qualified terminated plan’ means a pension plan—
“(1) with respect to which a notice of sufficiency was issued by the Pension Benefit Guaranty Corporation on December 2, 1976, and
“(2) which was terminated by corporate action on February 20, 1976.
“(c) Refund or Credit of Overpayment Barred by Statute of Limitations.—Notwithstanding section 6511(a) of the Internal Revenue Code of 1986 or any other period of limitation or lapse of time, a claim for credit or refund of overpayment of the tax imposed by such Code which arises by reason of this section may be filed by any person at any time within the 1-year period beginning on the date of enactment of this Act [July 18, 1984]. Sections 6511(b) and 6514 of such Code shall not apply to any claim for credit or refund filed under this subsection within such 1-year period.”
Section 157(h)(3)(B) ofPub. L. 95–600, as amended by Pub. L. 96–222, title I, § 101(a)(14)(A), (D),Apr. 1, 1980, 94 Stat. 204, 205; Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that: “In the case of any payment made during 1978 which is described in section 402(a)(5)(A) or 403(a)(4)(A) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] by reason of the amendments made by this subsection [amending sections 402 and 408 of this title], the applicable period specified in section 402(a)(5)(C) of such Code (or in the case of an individual retirement annuity, such section as made applicable by section 403(a)(4)(B) of such code) shall not expire before the close of December 31, 1980.”
Section 1(d) ofPub. L. 94–267, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that:
“(A) Period for rollover contribution.—In the case of a payment described in section 402
(a)(5)(A) (other than a payment described in section 402
(a)(5)(A) as in effect on the day before the date of the enactment of this Act) [Apr. 15, 1976] or section 403
(a)(4)(A) (other than a payment described in section 403
(a)(4)(A) as in effect on the day before the date of the enactment of this Act [Apr. 15, 1976] of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to distributions of the balance to the credit of the employee) which is contributed by an employee after the date of the enactment of this Act [Apr. 15, 1976] to a trust, plan, account, annuity, or bond described in section 402(a)(5)(B) or 403(a)(4)(B) of such Code, the applicable period specified in section 402(a)(5)(B) or 403(a)(4)(B) of such Code (relating to rollover distributions to another plan or retirement account) shall not expire before December 31, 1976.
“(B) Time of contribution.—
“(ii) Regulations.—For purposes of this subparagraph, the tax imposed on a payment by chapter 1 of the Internal Revenue Code of 1986, and the date a credit or refund is allowed by the Secretary of the Treasury or his delegate under section 6402 with respect to a contribution, shall be determined under regulations prescribed by the Secretary of the Treasury or his delegate.
“(C) Period of limitations.—If an individual has made the election provided by subparagraph (B), then—
“(i) the period provided by the Internal Revenue Code of 1986 for the assessment of any deficiency for the taxable year in which the payment described in subparagraph (A) was made and each subsequent taxable year for which tax is determined by reference to the treatment of such payment under such Code or the status under such Code of any trust, plan, account, annuity, or bond described in subparagraph (A) shall, to the extent attributable to such treatment, not expire before the expiration of 3 years from the date the Secretary of the Treasury or his delegate is notified by the individual (in such manner as the Secretary of the Treasury or his delegate may prescribe) that such individual has made (or failed to make) the contribution of the remaining portion of the payment within the period specified in subparagraph (B)(i), and
“(ii) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of section 6212(c) of such Code or the provisions of any other law or rule of law which would otherwise prevent such assessment.
“(2) Rollover contribution for certain property sold.—Sections 402(a)(5)(C) and 403(a)(4)(C) of the Internal Revenue Code of 1986 (relating to the requirement that rollover amount must consist of property received in a distribution) shall not apply with respect to that portion of the property received in a payment described in section 402
(a)(5)(A) as in effect on the day before the date of the enactment of this Act [Apr. 15, 1976] or 403(a)(4)(A) (other than a payment described in section 403
(a)(4)(A) as in effect on the day before the date of the enactment of this Act) [Apr. 15, 1976] of such Code which is sold or exchanged by the employee on or before the date of the enactment of this Act, [Apr. 15, 1976], if the employee transfers an amount of cash equal to the proceeds received from the sale or exchange of such property in excess of the amount considered contributed by the employee (within the meaning of section 402(a)(4)(D)(i) of such Code).
“(3) Nonrecognition of gain or loss.—For purposes of the Internal Revenue Code of 1986 [this title] no gain or loss shall be recognized with respect to the sale or exchange of property described in paragraph (2) if the proceeds of such sale or exchange are transferred by an employee in accordance with this subsection and the applicable provisions of section 402(a)(5) or 403(a)(4) of such Code.”
26 USCDescription of ChangeSession YearPublic LawStatutes at Large § 4022012112-239 [Sec.] 1086(b)(3)(A)126 Stat. 1968 LII has no control over and does not endorse any external Internet site that contains links to or references LII.