Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_125
Timestamp: 2019-10-18 23:35:13
Document Index: 704173955

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Internal Revenue Code, § 125. Cafeteria Plans
I.R.C. § 125(a) General Rule —
I.R.C. § 125(b) Exception For Highly Compensated Participants
I.R.C. § 125(b)(1) Highly Compensated Participants —
In the case of a highly compensated participant, subsection (a) shall not apply to any benefit attributable to a plan year for which the plan discriminates in favor of
I.R.C. § 125(b)(1)(A) —
I.R.C. § 125(b)(1)(B) —
I.R.C. § 125(b)(2) Key Employees —
In the case of a key employee (within the meaning of section 416(i)(1)), subsection (a) shall not apply to any benefit attributable to a plan for which the qualified benefits provided to key employees under the plan exceed 25 percent of the aggregate of such benefits provided for all employees under the plan. For purposes of the preceding sentence, qualified benefits shall be determined without regard to the second sentence of subsection (f).
I.R.C. § 125(b)(3) Year Of Inclusion —
I.R.C. § 125(c) Discrimination As To Benefits Or Contributions —
I.R.C. § 125(d) Cafeteria Plan Defined —
I.R.C. § 125(d)(1) In General —
The term “cafeteria plan” means a written plan under which—
I.R.C. § 125(d)(1)(A) —
I.R.C. § 125(d)(1)(B) —
I.R.C. § 125(d)(2) Deferred Compensation Plans Excluded
I.R.C. § 125(d)(2)(A) In General —
The term “cafeteria plan” does not include any plan which provides for deferred compensation.
I.R.C. § 125(d)(2)(B) Exception For Cash And Deferred Arrangements —
I.R.C. § 125(d)(2)(C) Exception For Certain Plans Maintained By Educational Institutions —
Subparagraph (A) shall not apply to a plan maintained by an educational organization described in section 170(b)(1)(A)(ii) to the extent of amounts which a covered employee may elect to have the employer pay as contributions for post-retirement group life insurance if—
I.R.C. § 125(d)(2)(C)(i) —
I.R.C. § 125(d)(2)(C)(ii) —
I.R.C. § 125(d)(2)(D) Exception For Health Savings Accounts —
I.R.C. § 125(e) Highly Compensated Participant And Individual Defined —
I.R.C. § 125(e)(1) Highly Compensated Participant —
The term “highly compensated participant” means a participant who is—
I.R.C. § 125(e)(1)(A) —
I.R.C. § 125(e)(1)(B) —
I.R.C. § 125(e)(1)(C) —
I.R.C. § 125(e)(1)(D) —
I.R.C. § 125(e)(2) Highly Compensated Individual —
The term “highly compensated individual” means an individual who is described in subparagraph (A), (B), (C), or (D) of paragraph (1).
I.R.C. § 125(f) Qualified Benefits Defined —
I.R.C. § 125(f)(1) In General —
The term “qualified benefit” means any benefit which, with the application of subsection (a), is not includible in the gross income of the employee by reason of an express provision of this chapter (other than section 106(b), 117, 127, or 132). Such term includes any group term life insurance which is includible in gross income only because it exceeds the dollar limitation of section 79 and such term includes any other benefit permitted under regulations.
I.R.C. § 125(f)(2) Long-Term Care Insurance Not Qualified —
The term “qualified benefit” shall not include any product which is advertised, marketed, or offered as long-term care insurance.
I.R.C. § 125(f)(3) Certain Exchange-Participating Qualified Health Plans Not Qualified
I.R.C. § 125(f)(3)(A) In General —
The term “qualified benefit” shall not include any qualified health plan (as defined in section 1301(a) of the Patient Protection and Affordable Care Act) offered through an Exchange established under section 1311 of such Act.
I.R.C. § 125(f)(3)(B) Exception For Exchange-Eligible Employers —
I.R.C. § 125(g) Special Rules
I.R.C. § 125(g)(1) Collectively Bargained Plan Not Considered Discriminatory —
I.R.C. § 125(g)(2) Health Benefits —
For purposes of subparagraph (B) of subsection (b)(1), a cafeteria plan which provides health benefits shall not be treated as discriminatory if—
I.R.C. § 125(g)(2)(A) —
contributions under the plan on behalf of each participant include an amount which—
I.R.C. § 125(g)(2)(A)(i) —
I.R.C. § 125(g)(2)(A)(ii) —
I.R.C. § 125(g)(2)(B) —
I.R.C. § 125(g)(3) Certain Participation Eligibility Rules Not Treated As Discriminatory —
For purposes of subparagraph (A) of subsection (b)(1), a classification shall not be treated as discriminatory if the plan—
I.R.C. § 125(g)(3)(A) —
I.R.C. § 125(g)(3)(B) —
I.R.C. § 125(g)(3)(B)(i) —
I.R.C. § 125(g)(3)(B)(ii) —
I.R.C. § 125(g)(4) Certain Controlled Groups, Etc. —
I.R.C. § 125(h) Special Rule For Unused Benefits In Health Flexible Spending Arrangements Of Individuals Called To Active Duty
I.R.C. § 125(h)(1) In General —
I.R.C. § 125(h)(2) Qualified Reservist Distribution —
For purposes of this subsection, the term “qualified reservist distribution” means any distribution to an individual of all or a portion of the balance in the employee's account under such arrangement if—
I.R.C. § 125(h)(2)(A) —
I.R.C. § 125(h)(2)(B) —
I.R.C. § 125(i) Limitation On Health Flexible Spending Arrangements
I.R.C. § 125(i)(1) In General —
I.R.C. § 125(i)(2) Adjustment For Inflation —
In the case of any taxable year beginning after December 31, 2013, the dollar amount in paragraph (1) shall be increased by an amount equal to—
I.R.C. § 125(i)(2)(A) —
I.R.C. § 125(i)(2)(B) —
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins by substituting “calendar year 2012” for “calendar year 2016'’ in subparagraph (A)(ii) thereof.
I.R.C. § 125(j) Simple Cafeteria Plans For Small Businesses
I.R.C. § 125(j)(1) In General —
I.R.C. § 125(j)(2) Simple Cafeteria Plan —
For purposes of this subsection, the term “simple cafeteria plan” means a cafeteria plan—
I.R.C. § 125(j)(2)(A) —
which is established and maintained by an eligible employer, and
I.R.C. § 125(j)(2)(B) —
with respect to which the contribution requirements of paragraph (3), and the eligibility and participation requirements of paragraph (4), are met.
I.R.C. § 125(j)(3) Contribution Requirements
I.R.C. § 125(j)(3)(A) In General —
The requirements of this paragraph are met if, under the plan the employer is required, without regard to whether a qualified employee makes any salary reduction contribution, to make a contribution to provide qualified benefits under the plan on behalf of each qualified employee in an amount equal to—
I.R.C. § 125(j)(3)(A)(i) —
a uniform percentage (not less than 2 percent) of the employee's compensation for the plan year, or
I.R.C. § 125(j)(3)(A)(ii) —
an amount which is not less than the lesser of—
I.R.C. § 125(j)(3)(A)(ii)(I) —
6 percent of the employee's compensation for the plan year, or
I.R.C. § 125(j)(3)(A)(ii)(II) —
I.R.C. § 125(j)(3)(B) Matching Contributions On Behalf Of Highly Compensated And Key Employees —
I.R.C. § 125(j)(3)(C) Additional Contributions —
I.R.C. § 125(j)(3)(D) Definitions —
I.R.C. § 125(j)(3)(D)(i) Salary Reduction Contribution —
The term “salary reduction contribution” means, with respect to a cafeteria plan, any amount which is contributed to the plan at the election of the employee and which is not includible in gross income by reason of this section.
I.R.C. § 125(j)(3)(D)(ii) Qualified Employee —
The term “qualified employee” means, with respect to a cafeteria plan, any employee who is not a highly compensated or key employee and who is eligible to participate in the plan.
I.R.C. § 125(j)(3)(D)(iii) Highly Compensated Employee —
I.R.C. § 125(j)(3)(D)(iv) Key Employee —
The term “key employee” has the meaning given such term by section 416(i).
I.R.C. § 125(j)(4) Minimum Eligibility And Participation Requirement
I.R.C. § 125(j)(4)(A) In General —
The requirements of this paragraph shall be treated as met with respect to any year if, under the plan—
I.R.C. § 125(j)(4)(A)(i) —
all employees who had at least 1,000 hours of service for the preceding plan year are eligible to participate, and
I.R.C. § 125(j)(4)(A)(ii) —
each employee eligible to participate in the plan may, subject to terms and conditions applicable to all participants, elect any benefit available under the plan.
I.R.C. § 125(j)(4)(B) Certain Employees May Be Excluded —
For purposes of subparagraph (A)(i), an employer may elect to exclude under the plan employees—
I.R.C. § 125(j)(4)(B)(i) —
who have not attained the age of 21 before the close of a plan year,
I.R.C. § 125(j)(4)(B)(ii) —
who have less than 1 year of service with the employer as of any day during the plan year,
I.R.C. § 125(j)(4)(B)(iii) —
who are covered under an agreement which the Secretary of Labor finds to be a collective bargaining agreement if there is evidence that the benefits covered under the cafeteria plan were the subject of good faith bargaining between employee representatives and the employer, or
I.R.C. § 125(j)(4)(B)(iv) —
who are described in section 410(b)(3)(C) (relating to nonresident aliens working outside the United States).
I.R.C. § 125(j)(5) Eligible Employer —
I.R.C. § 125(j)(5)(A) In General —
The term “eligible employer” means, with respect to any year, any employer if such employer employed an average of 100 or fewer employees on business days during either of the 2 preceding years. For purposes of this subparagraph, a year may only be taken into account if the employer was in existence throughout the year.
I.R.C. § 125(j)(5)(B) Employers Not In Existence During Preceding Year —
I.R.C. § 125(j)(5)(C) Growing Employers Retain Treatment As Small Employer
I.R.C. § 125(j)(5)(C)(i) In General —
I.R.C. § 125(j)(5)(C)(i)(I) —
an employer was an eligible employer for any year (a “qualified year”), and
I.R.C. § 125(j)(5)(C)(i)(II) —
such employer establishes a simple cafeteria plan for its employees for such year,
I.R.C. § 125(j)(5)(C)(ii) Exception —
I.R.C. § 125(j)(5)(D) Special Rules
I.R.C. § 125(j)(5)(D)(i) Predecessors —
I.R.C. § 125(j)(5)(D)(ii) Aggregation Rules —
I.R.C. § 125(j)(6) Applicable Nondiscrimination Requirement —
For purposes of this subsection, the term “applicable nondiscrimination requirement” means any requirement under subsection (b) of this section, section 79(d), section 105(h), or paragraph (2), (3), (4), or (8) of section 129(d).
I.R.C. § 125(j)(7) Compensation —
The term “compensation” has the meaning given such term by section 414(s).
I.R.C. § 125(k) Cross References —
I.R.C. § 125(l) Regulations —
(Added by Pub. L. 95-600, title I, Sec. 134(a), Nov. 6, 1978, 92 Stat. 2783, and amended by Pub. L. 96-222, title I, Sec. 101(a)(6)(A), Apr. 1, 1980, 94 Stat. 196; Pub. L. 96-605, title II, Sec. 201(b)(2), 226(a), Dec. 28, 1980, 94 Stat. 3527, 3529; Pub. L. 96-613, Sec. 5(b)(2), Dec. 28, 1980, 94 Stat. 3581; Pub. L. 98-369, div. A, title V, Sec. 531(b)(1)-(4)(A), July 18, 1984, 98 Stat. 881, 882; Pub. L. 98-611, Sec. 1(d)(3)(A), Oct. 31, 1984, 98 Stat. 3177; Pub. L. 98-612, Sec. 1(b)(3)(B), Oct. 31, 1984, 98 Stat. 3181; Pub. L. 99-514, title XI, Sec. 1151(d)(1), title XVIII, Sec. 1853(b)(1), Oct. 22, 1986, 100 Stat. 2504, 2870; Pub. L. 100-647, title I, Sec. 1011B(a)(11)-(13), 1018(t)(6), title IV, Sec. 4002(b)(2), title VI, Sec. 6051(b), Nov. 10, 1988, 102 Stat. 3484, 3485, 3589, 3643, 3696; Pub. L. 101-140, title II, Sec. 203(a)(1), (3), (b)(2), Nov. 8, 1989, 103 Stat. 830, 831; Pub. L. 101-239, title VII, Sec. 7814(b), Dec. 19, 1989, 103 Stat. 2413; Pub. L. 101-508, title XI, Sec. 11801(c)(3), Nov. 5, 1990, 104 Stat. 1388-523; Pub. L. 104-191, title III, Sec. 301(d), 321(c)(1), 110 Stat. 1936; Pub. L. 108-173, title XII, Sec. 1201(i), Dec. 8, 2003, 117 Stat. 2066; Pub. L. 108-311, title II, Sec. 207(11), Oct. 4, 2004, 118 Stat. 1166; Pub. L. 110-172, Sec. 11(a)(12), Dec. 29, 2007, 121 Stat. 2473; Pub. L. 110-245, Sec. 114(a), June 17, 2008, 122 Stat. 1624; Pub. L. 111-148, Sec. 1515, 9005, 9022, 10902, Mar. 23, 2010, 124 Stat. 119; Pub. L. 111-152, Sec. 1403, Mar. 30, 2010, 124 Stat. 1029; Pub. L. 113-295, Div. A, title II, Sec. 213(b), 220(f), (g), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 115-97, title I, Sec. 11002(d)(1)(L), Dec. 22, 2017, Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(37), Mar. 23, 2018, 132 Stat. 348.)
2018 - Subsec. (e)(2). Pub. L. 115-141, Div. U, Sec. 401(a)(37), amended par. (2) by substituting “subparagraph’’ for “subparagraphs’’.
2017 - Subsec. (i)(2)(B). Pub. L. 115-97, Sec. 11002(d)(1)(L), amended par. (2)(B) by substituting ‘‘for ‘calendar year 2016’ in subparagraph (A)(ii)’’ for “for ‘calendar year 1992’ in subparagraph (B)’’.
2014 - Subsec. (b)(2). Pub . L. 113-295, Div. A, Sec. 220(f), amended par. (2) by substituting “qualified benefits” for “statutory nontaxable benefits” each place it appears.
Subsec. (h)(1). Pub. L. 113-295, Div. A, Sec. 213(b), amended par. (1) by inserting “(and shall not fail to be treated as an accident or health plan)” before “merely”.
Subsec. (h)(2). Pub. L. 113-295, Div. A, Sec. 220(g), amended par. (2) by substituting “means any” for “means, any”.
2010 - Subsec. (i)(2). Pub. L. 111-152, Sec. 1403(b)(1), amended par. (2) by substituting “December 31, 2013” for “December 31, 2011”.
Subsec. (i)(2)(B). Pub. L. 111-152, Sec. 1403(b)(2), amended subpar. (B) by substituting “2012” for “2010”.
Subsec. (f). Pub. L. 111-148, Sec. 1515, amended subsec. (f) by substituting “For purposes of this section—(1) In General.—The term” for “For purposes of this section, the term”, by substituting “(2) Long-Term Care Insurance Not Qualified.—The term ‘qualified benefit' shall not include” for “Such term shall not include”; and by adding par. (3).
Subsec. (i)-(k). Pub. L. 111-148, Sec. 9005(a), redesignated subsec. (i)-(j) as subsec. (j)-(k), respectively, and added subsec. (i).
Subsec. (i). Pub. L. 111-148, Sec. 10902(a), amended subsec. (i). Before amendment, it read as follows:
“(i) Limitation on Health Flexible Spending Arrangements.—For purposes of this section, if a benefit is provided under a cafeteria plan through employer contributions to a health flexible spending arrangement, such benefit shall not be treated as a qualified benefit unless the cafeteria plan provides that an employee may not elect for any taxable year to have salary reduction contributions in excess of $2,500 made to such arrangement.”
Subsec. (j)-(l). Pub. L. 111-148, Sec. 9022(a), redesignated subsec. (j)-(k) as subsec. (k)-(l), respectively, and added subsec, (j).
2008 - Subsec. (h)-(j). Pub. L. 110-245, redesignated subsec. (h)-(i) as subsec. (i)-(j), respectively, and added a new subsec. (h).
2007 - Subsec. (b)(2). Pub. L. 110-172, Sec. 11(a)(12), amended par. (2) by substituting “second sentence” for “last sentence”.
2004 - Subsec. (e)(1)(D). Pub. L. 108-311, Sec. 207(11), amended subpar. (D) by inserting “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof” after “section 152”.
2003 - Subsec. (d)(2)(D). Pub. L. 108-173, Sec. 1201(i), added subpar. (D).
1996 - Subsec. (f). Pub. L. 104-191, Sec. 301(d), inserted “106(b),” before “117”, effective for taxable years beginning after Dec. 31, 1996.
Subsec. (f), Pub. L. 104-191, Sec. 321(c)(1), added the sentence at the end.
1990 - Subsec. (f). Pub. L. 101-508 substituted ‘section 117,’ for ‘section 117, 124,’.
1989 - Pub. L. 101-140, Sec. 203(a)(1), amended section to read as if amendments by Pub. L. 99-514, Sec. 1151(d)(1), had not been enacted, see 1986 Amendment note below.
Subsec. (d)(2). Pub. L. 101-140, Sec. 203(b)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘The term ‘cafeteria plan’ does not include any plan which provides for deferred compensation. The preceding sentence shall not apply in the case of a profit-sharing or stock bonus plan which includes a qualified cash or deferred arrangement (as defined in section 401(k)(2)) to the extent of amounts which a covered employee may elect to have the employer pay as contributions to a trust under such plan on behalf of the employee.'
Subsec. (e)(2)(A). Pub. L. 101-239 substituted ‘includible only because’ for ‘includable only because’, see Codification note above.
Subsec. (g)(3)(A). Pub. L. 101-140, Sec. 203(a)(3), substituted ‘section 410(b)(2)(A)(i)’ for ‘subparagraph (B) of section 410(b)(1)’.
1988 - Subsec. (a). Pub. L. 100-647, Sec. 1011B(a)(11)(A), amended subsec. (a) generally, see Codification note above. Prior to amendment, subsec. (a) read as follows: ‘In the case of a cafeteria plan -
‘(1) amounts shall not be included in gross income of a participant in such plan solely because, under the plan, the participant may choose among the benefits of the plan, and
‘(2) if the plan fails to meet the requirements of subsection (b) for any plan year -
‘(A) paragraph (1) shall not apply, and
‘(B) notwithstanding any other provision of part III of this subchapter, any qualified benefits received under such cafeteria plan by a highly compensated employee for such plan year shall be included in the gross income of such employee for the taxable year with or within which such plan year ends.’
Subsec. (b)(1). Pub. L. 100-647, Sec. 1011B(a)(11)(B), substituted ‘In the case of a highly compensated employee, subsection (a) shall not apply to any benefit attributable to a plan year’ for ‘A plan shall be treated as failing to meet the requirements of this subsection’, see Codification note above.
Subsec. (b)(2). Pub. L. 100-647, Sec. 1011B(a)(11)(C), substituted ‘subsection (a) shall not apply to any plan year’ for ‘a plan shall be treated as failing to meet the requirements of this subsection’ in first sentence, see Codification note above.
Pub. L. 100-647, Sec. 1011B(a)(13)(B), substituted ‘shall not include benefits which (without regard to this paragraph) are includible in gross income’ for ‘shall be determined without regard to the last sentence of subsection (e)’, see Codification note above.
Subsec. (c)(1)(B). Pub. L. 100-647, Sec. 1011B(a)(12), amended subpar. (B) generally, see Codification note above. Prior to amendment, subpar. (B) read as follows: ‘the participants may choose -
‘(i) among 2 or more benefits consisting of cash and qualified benefits, or
‘(ii) among 2 or more qualified benefits.’
Subsec. (c)(2)(B). Pub. L. 100-647, Sec. 1018(t)(6), inserted ‘or rural electric cooperative plan (within the meaning of section 401(k)(7))’ after ‘stock bonus plan’, see Codification note above.
Subsec. (c)(2)(C). Pub. L. 100-647, Sec. 6051(b), inserted at end ‘In applying section 89 to a plan described in this subparagraph, contributions under the plan shall be tested as of the time the contributions were made.’, see Codification note above.
Subsec. (e)(1). Pub. L. 100-647, Sec. 1011B(a)(13)(A), inserted ‘and without regard to section 89(a)’ after ‘subsection (a)’, see Codification note above.
Subsec. (e)(2)(A). Pub. L. 100-647, Sec. 4002(b)(2), inserted ‘or any insurance under a qualified group legal services plan the value of which is so includable only because it exceeds the limitation of section 120(a)’ after ‘section 79’, see Codification note above.
1986 - Pub. L. 99-514, Sec. 1151(d)(1), amended section generally, revising and restating as subsecs. (a) to (g) provisions of former subsecs. (a) to (i) so as to coincide with the coming into effect of section 89 of this title.
Subsecs. (c), (d)(1)(B). Pub. L. 99-514, Sec. 1853(b)(1)(A), substituted ‘qualified benefits’ for ‘statutory nontaxable benefits’ wherever appearing.
Subsec. (f). Pub. L. 99-514, Sec. 1853(b)(1)(B), substituted ‘Qualified benefits defined’ for ‘Statutory nontaxable benefits defined’ in heading and amended text generally. Prior to amendment, text read as follows: ‘For purposes of this section, the term ‘statutory nontaxable benefit’ means any benefit which, with the application of subsection (a) is not includible in the gross income of the employee by reason of an express provision of this chapter (other than section 117, 124, 127, or 132). Such term includes any group term life insurance which is includible in gross income only because it exceeds the dollar limitation of section 79.'
1984 - Subsec. (b). Pub. L. 98-369, Sec. 531(b)(3), amended subsec. (b) generally, substituting ‘and key employees’ for ‘where plan is discriminatory’ in heading and ‘Highly compensated participants’ for ‘In general’ in par. (1) heading, adding par. (2), redesignating former par. (2) as (3), and inserting therein references to par. (2) and to taxable year of key employee.
Subsec. (c). Pub. L. 98-369, Sec. 531(b)(2)(B), inserted ‘statutory’ before ‘nontaxable benefits’ in two places.
Subsec. (d)(1). Pub. L. 98-369, Sec. 531(b)(1), substituted ‘among 2 or more benefits consisting of cash and statutory nontaxable benefits’ for ‘among two or more benefits’ in cl. (B) and struck out ‘The benefits which may be chosen may be nontaxable benefits, or cash, property, or other taxable benefits.’
Subsec. (f). Pub. L. 98-369, Sec. 531(b)(2)(A), amended subsec. (f) generally, inserting ‘Statutory’ in heading and ‘statutory’ before ‘nontaxable benefit’ in text, providing that the benefit be excluded by reason of an express provision of this chapter (other than section 117, 124, 127, or 132), and extending the benefit to include group term life insurance.
Subsec. (h). Pub. L. 98-611 and Pub. L. 98-612, made identical amendments, substituting cross reference provision for reporting requirements provisions.
Pub. L. 98-369, Sec. 531(b)(4)(A), added subsec. (h) relating to reporting requirements provisions. Former subsec. (h) redesignated (i).
Subsec. (i). Pub. L. 98-369, Sec. 531(b)(4)(A), redesignated subsec. (h) as (i).
1980 - Subsec. (d)(2). Pub. L. 96-605, Sec. 226(a), inserted provision that the sentence excluding deferred compensation plans not apply in the case of a profit-sharing or stock bonus plan which includes a qualified cash or deferred arrangement, as defined in section 401(k)(2) to the extent of amounts which a covered employee may elect to have the employer pay as contributions to a trust under such plan on behalf of the employee.
Subsec. (g)(3)(B). Pub. L. 96-222 substituted ‘employment requirement’ for ‘service requirement’ in cls. (i) and (ii).
Subsec. (g)(4). Pub. L. 96-613, Sec. 5(b)(2), and Pub. L. 96-605, Sec. 201(b)(2), made identical amendments by substituting ‘controlled groups, etc.’ for ‘controlled groups’ in heading, and by substituting ‘subsection (b), (c), or (m) of section 414’ for ‘subsection (b) or (c) of section 414’ in text.
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(37), effective March 23, 2018.
Amendment by Pub. L. 115-97, Sec. 11002(d)(1)(L), effective for taxable years beginning after December 31, 2017.
Amendments by Pub. L. 113-295, Div. A, Sec. 220, effective on the date of the enactment of this Act [Enacted: Dec. 19, 2014].
Amendment by Pub. L. 113-295, Div. A, Sec. 213(b), effective as if included in the provision of the Heroes Earnings Assistance and Relief Tax Act of 2008 [Pub. L. 110-245, Sec. 114] to which it relates [Effective June 17, 2008].
Amendments by Pub. L. 111-152, Sec. 1403, effective on the date of the enactment of this Act [Enacted: Mar. 30, 2010].
Amendments by Pub. L. 111-148, Sec. 1515, effective for taxable years beginning after December 31, 2013.
Amendments by Pub. L. 111-148, Sec. 9005(a), effective for taxable years beginning after December 31, 2010.
Amendments by Pub. L. 111-148, Sec. 9022(a), effective for years beginning after December 31, 2010.
Amendments by Pub. L. 111-148, Sec. 10902(a), as amended by Pub. L. 111-152, Sec. 1403(a), effective for taxable years beginning after December 31, 2012.
Amendments by Pub. L. 110-245, Sec. 114(a), effective for distributions made after the date of the enactment of this Act [Enacted: June 17, 2008].
Amendment by Pub. L. 110-172, Sec. 11(a)(12), effective on the date of the enactment of this Act [Enacted: Dec. 29, 2007].
Amendment by Pub. L. 108-311, Sec. 207(11), effective for taxable years beginning after December 31, 2004.
Amendment by Pub. L. 108-173, Sec. 1201(i), effective for taxable years beginning after December 31, 2003.
Amendment by Pub. L. 104-191, Sec. 301(d), effective for taxable years beginning after December 31, 1996.
Amendment by Pub. L. 104-191, Sec. 321(c), effective, except as otherwise provided, for contracts issued after December 31, 1996. See section 321(f) of Pub. L. 104-191, which sets out special rules.
Amendment by sections 1011B(a)(11)-(13) and 1018(t)(6) of Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
Amendment by section 4002(b)(2) of Pub. L. 100-647 applicable to taxable years ending after Dec. 31, 1987, see section 4002(c) of Pub. L. 100-647, set out as a note under section 120 of this title.
Section 6051(c) of Pub. L. 100-647 provided that: ‘The amendments made by this section (amending this section and section 89 of this title) shall take effect as if included in the amendments made by section 1151 of the Reform Act (Pub. L. 99-514, see Effective Date of 1986 Amendment note set out under section 79 of this title).'
Amendment by section 1151(d)(1) of Pub. L. 99-514 applicable, with certain qualifications and exceptions, to years beginning after Dec. 31, 1988, see section 1151(k) of Pub. L. 99-514, as amended, set out as a note under section 79 of this title.
Amendment by section 1853(b)(1) of Pub. L. 99-514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99-514, set out as a note under section 48 of this title.
Amendments by section 201(b)(2) of Pub. L. 96-605 and section 5(b)(2) of Pub. L. 96-613 applicable to years ending after Nov. 30, 1980, except in the case of a plan in existence on Nov. 30, 1980 where amendments by section 201(b)(2) of Pub. L. 96-605 and section 5(b)(2) of Pub. L. 96-613 applicable to plan years beginning after Nov. 30, 1980, see section 201(c) of Pub. L. 96-605 and section 5(c) of Pub. L. 96-613, set out as a note under section 414 of this title.
Section 226(b) of Pub. L. 96-605 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply with respect to taxable years beginning after December 31, 1980.’
Section 134(c) of Pub. L. 95-600, as amended by Pub. L. 96-222, title I, Sec. 101(a)(6)(B), Apr. 1, 1980, 94 Stat. 197, provided that: ‘The amendments made by this section (enacting this section) shall apply to plan years beginning after December 31, 1978.’
Section 6063 of Pub. L. 100-647 provided that: ‘For purposes of section 125 of the 1986 Code, a plan shall not be treated as failing to be a cafeteria plan solely because under the plan a participant elected before January 1, 1989, to receive reimbursement under the plan for dependent care assistance for periods after December 31, 1988, and such assistance is includible in gross income under the provisions of the Family Support Act of 1988 (Pub. L. 100-485, see Tables for classification).'
For provision that for purposes of section 125 of the Internal Revenue Code of 1986, a plan shall not be treated as failing to be a cafeteria plan solely because under the plan a participant elected before January 1, 1988, to receive reimbursement under the plan for dependent care assistance for periods after December 31, 1987, and such assistance included reimbursement for expenses at a camp where the dependent stays overnight, see section 10101(b)(2) of Pub. L. 100-203, as added by Pub. L. 100-647, set out as an Effective Date of 1987 Amendment note under section 21 of this title.
Section 531(b)(5) of Pub. L. 98-369, as amended by Pub. L. 99-514, title XVIII, Sec. 1853(b)(2), (3), Oct. 22, 1986, 100 Stat. 2870, 2871, provided that:
‘(A) General transitional rule. - Any cafeteria plan in existence on February 10, 1984, which failed as of such date and continued to fail thereafter to satisfy the rules relating to section 125 under proposed Treasury regulations, and any benefit offered under such a cafeteria plan which failed as of such date and continued to fail thereafter to satisfy the rules of section 105, 106, 120, or 129 under proposed Treasury regulations, will not fail to be a cafeteria plan under section 125 or a nontaxable benefit under section 105, 106, 120, or 129 solely because of such failures. The preceding sentence shall apply only with respect to cafeteria plans and benefits provided under cafeteria plans before the earlier of -
‘(i) January 1, 1985, or
‘(ii) the effective date of any modification to provide additional benefits after February 10, 1984.
‘(B) Special transition rule for advance election benefit banks. - Any benefit offered under a cafeteria plan in existence on February 10, 1984, which failed as of such date and continued to fail thereafter to satisfy the rules of section 105, 106, 120, or 129 under proposed Treasury regulations because an employee was assured of receiving (in cash or any other benefit) amounts available but unused for covered reimbursement during the year without regard to whether he incurred covered expenses, will not fail to be a nontaxable benefit under such applicable section solely because of such failure. The preceding sentence shall apply only with respect to benefits provided under cafeteria plans before the earlier of -
‘(i) July 1, 1985, or
‘(C) Plans for which substantial implementation costs were incurred. - For purposes of this paragraph, any plan with respect to which substantial implementation costs had been incurred before February 10, 1984, shall be treated as in existence on February 10, 1984.
‘(D) Collective bargaining agreements. - In the case of any cafeteria plan in existence on February 10, 1984, and maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers, the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof agreed to after July 18, 1984) shall be substituted for ‘January 1, 1985’ in subparagraph (A) and for ‘July 1, 1985’ in subparagraph (B). For purposes of the preceding sentence, any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement added by this section (or any requirement in the regulations under section 125 of the Internal Revenue Code of 1954 (now 1986) proposed on May 6, 1984) shall not be treated as a termination of such collective bargaining agreement.
‘(E) Special rule where contributions or reimbursements suspended. - For purposes of subparagraphs (A) and (B), a plan shall not be treated as not continuing to fail to satisfy the rules referred to in such subparagraphs with respect to any benefit provided in the form of a flexible spending arrangement merely because contributions or reimbursements (or both) with respect to such plan were suspended before January 1, 1985.’
Pub. L. 101-140, Sec. 203(a)(1), amended this section to read as if the amendments made by section 1151(d)(1) of Pub. L. 99-514 (amending this section generally) had not been enacted. Subsequent to amendment by Pub. L. 99-514, this section was amended by Pub. L. 100-647 and Pub. L. 101-239. See 1989 and 1988 Amendment notes above.
A prior section 125 was renumbered 136.