Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section419A&num=0&edition=prelim
Timestamp: 2020-01-21 21:26:57
Document Index: 345920802

Matched Legal Cases: ['§ 419', '§419', '§511', '§1851', '§1018', '§1704', '§843', '§401', '§401', '§401', '§1018', '§1851', '§1018', '§1851', '§1018', '§1851', '§1018', '§1851', '§1851', '§1851', '§1851', '§1851', '§1851', '§1018', '§1851', '§1851', '§1851', '§843', '§1851', '§1018']

[USC02] 26 USC 419A: Qualified asset account; limitation on additions to account
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26 USC 419A: Qualified asset account; limitation on additions to account Text contains those laws in effect on January 20, 2020
§419A. Qualified asset account; limitation on additions to account
For purposes of this subpart and section 512, the term "qualified asset account" means any account consisting of assets set aside to provide for the payment of-
Except as otherwise provided in this subsection, the account limit for any qualified asset account for any taxable year is the amount reasonably and actuarially necessary to fund-
The account limit for any taxable year may include a reserve funded over the working lives of the covered employees and actuarially determined on a level basis (using assumptions that are reasonable in the aggregate) as necessary for-
For purposes of paragraph (1), disability benefits payable to any individual shall not be taken into account to the extent such benefits are payable at an annual rate in excess of the lower of-
(i) 75 percent of such individual's average compensation for his high 3 years (within the meaning of section 415(b)(3)), or
An applicable account limit for any taxable year may include a reserve in an amount not to exceed 35 percent of the sum of-
For purposes of this subsection, the term "applicable account limit" means an account limit for a qualified asset account with respect to medical benefits provided through a plan maintained by a bona fide association (as defined in section 2791(d)(3) of the Public Health Service Act (42 U.S.C. 300gg–91(d)(3))).
In the case of any employee who is a key employee-
The term "SUB or severance pay benefit" means-
No account limits shall apply in the case of any qualified asset account under a separate welfare benefit fund-
(B) an employee pay-all plan under section 501(c)(9) if-
For purposes of subparagraph (A), the term "10 or more employer plan" means a plan-
For purposes of computing the increase under subparagraph (A) for any taxable year, the term "existing excess reserve" means the excess (if any) of-
If any amount is included in the gross income of an employer for any taxable year under paragraph (1) with respect to any welfare benefit fund-
(Added Pub. L. 98–369, div. A, title V, §511(a), July 18, 1984, 98 Stat. 856 ; amended Pub. L. 99–514, title XVIII, §1851(a)(2), (3)(A), (4)–(7), (9), (13), Oct. 22, 1986, 100 Stat. 2858–2860 , 2862; Pub. L. 100–647, title I, §1018(t)(1)(C), (2)(A), (u)(12), Nov. 10, 1988, 102 Stat. 3587 , 3590; Pub. L. 104–188, title I, §1704(t)(60), Aug. 20, 1996, 110 Stat. 1890 ; Pub. L. 109–280, title VIII, §843(a), Aug. 17, 2006, 120 Stat. 1010 ; Pub. L. 115–141, div. U, title IV, §401(a)(96), (b)(21)(B), (C), Mar. 23, 2018, 132 Stat. 1188 , 1202, 1203.)
2018-Subsec. (c)(6)(B). Pub. L. 115–141, §401(a)(96), substituted "(42 U.S.C. 300gg–91(d)(3)))" for "(42 U.S.C. 300gg–91(d)(3))".
Subsec. (g)(1), (2). Pub. L. 115–141, §401(b)(21)(B), (C), substituted "or (17)" for "(17), or (20)".
2006-Subsec. (c)(6). Pub. L. 109–280 added par. (6).
1996-Subsec. (c)(3). Pub. L. 104–188 substituted "severance" for "severence" in heading.
1988-Subsec. (a). Pub. L. 100–647, §1018(u)(12), made technical amendment to directory language of Pub. L. 99–514, §1851(a)(6)(B). See 1986 Amendment note below.
Subsec. (f)(5). Pub. L. 100–647, §1018(t)(2)(A), repealed Pub. L. 99–514, §1851(a)(4). See 1986 Amendment note below.
Pub. L. 100–647, §1018(t)(1)(C), substituted "account" for "accounts".
1986-Subsec. (a). Pub. L. 99–514, §1851(a)(6)(B), as amended by Pub. L. 100–647, §1018(u)(12), inserted "and section 512" after "this subpart".
Subsec. (c)(5)(A). Pub. L. 99–514, §1851(a)(5), substituted "under this subsection" for "under paragraph (1)".
Subsec. (d)(1). Pub. L. 99–514, §1851(a)(2)(B), inserted "The requirements of this paragraph shall apply to the first taxable year for which a reserve is taken into account under subsection (c)(2) and to all subsequent taxable years."
Subsec. (d)(2). Pub. L. 99–514, §1851(a)(2)(A), inserted "Subparagraph (B) of section 415(c)(1) shall not apply to any amount treated as an annual addition under the preceding sentence."
Subsec. (e). Pub. L. 99–514, §1851(a)(3)(A), amended subsec. (e) generally. Prior to amendment, par. (1), benefits must be nondiscriminatory, read as follows: "No reserve may be taken into account under subsection (c)(2) for post-retirement medical benefits or life insurance benefits to be provided to covered employees unless the plan meets the requirements of section 505(b)(1) with respect to such benefits.", and par. (2), taxable life insurance benefits not taken into account, read as follows: "No life insurance benefit may be taken into account under subsection (c)(2) to the extent-
"(A) such benefit is includible in gross income under section 79, or
"(B) such benefit would be includible in gross income under section 101(b) (determined by substituting '$50,000' for '$5,000')."
Subsec. (f)(5). Pub. L. 99–514, §1851(a)(13), amended par. (5) generally. Prior to amendment, par. (5) read as follows: "Higher limit in case of collectively bargained plans.-Not later than July 1, 1985, the Secretary shall by regulations provide for special account limits in the case of any qualified asset account under a welfare benefit fund established under a collective bargaining agreement."
Pub. L. 99–514, §1851(a)(4), which directed amendment of par. (5) by substituting "welfare benefit fund maintained pursuant to" for "welfare benefit fund established under", was repealed by Pub. L. 100–647, §1018(t)(2)(A).
Subsec. (f)(7)(C), (D). Pub. L. 99–514, §1851(a)(7), added subpars. (C) and (D) and struck out former subpar. (C) which read as follows: "For purposes of this paragraph, the term 'existing excess reserve' means the excess (if any) of-
"(i) the amount of assets set aside for purposes described in subsection (a) as of the close of the first taxable year ending after the date of the enactment of the Tax Reform Act of 1984, over
"(ii) the account limit which would have applied under this section to such taxable year if this section had applied to such taxable year."
Subsec. (g)(3). Pub. L. 99–514, §1851(a)(9), added par. (3).
Subsec. (h)(1). Pub. L. 99–514, §1851(a)(6)(A), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "At the election of the employer, 2 or more welfare benefit funds of such employer may be treated as 1 fund."
Pub. L. 109–280, title VIII, §843(b), Aug. 17, 2006, 120 Stat. 1010 , provided that: "The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2006."
For provisions that nothing in amendment by section 401(b)(21)(B), (C) of Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title.
Pub. L. 99–514, title XVIII, §1851(a)(3)(B), Oct. 22, 1986, 100 Stat. 2859 , as amended by Pub. L. 100–647, title I, §1018(t)(2)(D), Nov. 10, 1988, 102 Stat. 3587 , provided that: "Subsection (e) of section 419A, section 505, and section 4976(b)(1)(B) of the Internal Revenue Code of 1954 [now 1986] (as amended by subparagraph (A)) shall not apply to any group-term life insurance to the extent that the amendments made by section 223(a) of the Tax Reform Act of 1984 [section 223(a) of Pub. L. 98–369, amending section 79 of this title] do not apply to such insurance by reason of paragraph (2) of section 223(d) of such Act [set out as a note under section 79 of this title]."