Source: http://www.law.cornell.edu/uscode/text/26/409
Timestamp: 2015-01-29 18:32:54
Document Index: 213879646

Matched Legal Cases: ['§ 141', '§ 409', '§ 101', '§ 224', '§ 331', '§ 103', '§ 409', '§ 474', '§ 1172', '§ 1852', '§ 1011', '§ 7304', '§ 1506', '§ 656', '§ 411', '§ 901', '§ 1171', '§ 1171', '§ 2002', '§ 1501', '§ 1901', '§ 156', '§ 101', '§ 311', '§ 243', '§ 335', '§ 2', '§ 42', '§ 522', '§ 491', '§ 7811', '§ 7304', '§ 7304', '§ 7304', '§ 7304', '§ 1011', '§ 1018', '§ 1018', '§ 1011', '§ 1011', '§ 1011', '§ 1172', '§ 1011', '§ 1018', '§ 1011', '§ 1011', '§ 1174', '§ 1899', '§ 1852', '§ 1174', '§ 1854', '§ 1854', '§ 1854', '§ 1854', '§ 1174', '§ 1176', '§ 1854', '§ 1172', '§ 1011', '§ 1174', '§ 1854', '§ 1174', '§ 474', '§ 474', '§ 474', '§ 474', '§ 474', '§ 474', '§ 474', '§ 103', '§ 103', '§ 331', '§ 337', '§ 331', '§ 334', '§ 336', '§ 331', '§ 331', '§ 331', '§ 101', '§ 101', '§ 101', '§ 101', '§ 101', '§ 101', '§ 101', '§ 101', '§ 101', '§ 101', '§ 101', '§ 101', '§ 101', '§ 656', '§ 1506', '§ 7304', '§ 1172', '§ 1174', '§ 1011', '§ 1174', '§ 1174', '§ 1854', '§ 1018', '§ 1854', '§ 337', '§ 2', '§ 224', '§ 141', '§ 101', '§ 2']

(a) merely because under the plan the benefits may be distributed in cash or in the form of employer securities.
Exception for certain plans restricted from distributing securities (i)
A plan to which this subparagraph applies shall not be treated as failing to meet the requirements of this subsection or section 401
(a) merely because it does not permit a participant to exercise the right described in paragraph (1)(A) if such plan provides that the participant entitled to a distribution has a right to receive the distribution in cash, except that such plan may distribute employer securities subject to a requirement that such securities may be resold to the employer under terms which meet the requirements of paragraph (1)(B).
This subparagraph shall apply to a plan which otherwise meets the requirements of this subsection or section 4975
(e)(7) and which is established and maintained by—
an employer whose charter or bylaws restrict the ownership of substantially all outstanding employer securities to employees or to a trust described in section 401
Special rule for banks In the case of a plan established and maintained by a bank (as defined in section 581) which is prohibited by law from redeeming or purchasing its own securities, the requirements of paragraph (1)(B) shall not apply if the plan provides that participants entitled to a distribution from the plan shall have a right to receive a distribution in cash.
Put option period An employer shall be deemed to satisfy the requirements of paragraph (1)(B) if it provides a put option for a period of at least 60 days following the date of distribution of stock of the employer and, if the put option is not exercised within such 60-day period, for an additional period of at least 60 days in the following plan year (as provided in regulations promulgated by the Secretary).
Payment requirement for total distribution If an employer is required to repurchase employer securities which are distributed to the employee as part of a total distribution, the requirements of paragraph (1)(B) shall be treated as met if—
Payment requirement for installment distributions If an employer is required to repurchase employer securities as part of an installment distribution, the requirements of paragraph (1)(B) shall be treated as met if the amount to be paid for the employer securities is paid not later than 30 days after the exercise of the put option described in paragraph (4).
Exception where employee elected diversification Paragraph (1)(A) shall not apply with respect to the portion of the participant’s account which the employee elected to have reinvested under section 401
(a)(28)(B) or subparagraph (B) or (C) of section 401
Reimbursement for expenses of establishing and administering plan A plan which otherwise meets the requirements of this section shall not be treated as failing to meet such requirements merely because it provides that—
Expenses of establishing plan As reimbursement for the expenses of establishing the plan, the employer may withhold from amounts due the plan for the taxable year for which the plan is established (or the plan may pay) so much of the amounts paid or incurred in connection with the establishment of the plan as does not exceed the sum of—
10 percent of the first $100,000 which the employer is required to transfer to the plan for that taxable year under section 41
(c)(1)(B),
Administrative expenses As reimbursement for the expenses of administering the plan, the employer may withhold from amounts due the plan (or the plan may pay) so much of the amounts paid or incurred during the taxable year as expenses of administering the plan as does not exceed the lesser of—
10 percent of the first $100,000 of the dividends paid to the plan with respect to stock of the employer during the plan year ending with or within the employer’s taxable year, and
Conditional contributions to the plan A plan which otherwise meets the requirements of this section shall not be treated as failing to satisfy such requirements (or as failing to satisfy the requirements of section 401
(a) of this title or of section 403(c)(1) of the Employee Retirement Income Security Act of 1974) merely because of the return of a contribution (or a provision permitting such a return) if—
Requirements relating to certain withdrawals Notwithstanding any other law or rule of law—
Employer securities defined For purposes of this section—
In general The term “employer securities” means common stock issued by the employer (or by a corporation which is a member of the same controlled group) which is readily tradable on an established securities market.
Special rule where there is no readily tradable common stock If there is no common stock which meets the requirements of paragraph (1), the term “employer securities” means common stock issued by the employer (or by a corporation which is a member of the same controlled group) having a combination of voting power and dividend rights equal to or in excess of—
Preferred stock may be issued in certain cases Noncallable preferred stock shall be treated as employer securities if such stock is convertible at any time into stock which meets the requirements of paragraph (1) or (2) (whichever is applicable) and if such conversion is at a conversion price which (as of the date of the acquisition by the tax credit employee stock ownership plan) is reasonable. For purposes of the preceding sentence, under regulations prescribed by the Secretary, preferred stock shall be treated as noncallable if after the call there will be a reasonable opportunity for a conversion which meets the requirements of the preceding sentence.
Application to controlled group of corporations (A)
In general For purposes of this subsection, the term “controlled group of corporations” has the meaning given to such term by section 1563
(a) (determined without regard to subsections (a)(4) and (e)(3)(C) ofsection 1563).
Where common parent owns at least 50 percent of first tier subsidiary For purposes of subparagraph (A), if the common parent owns directly stock possessing at least 50 percent of the voting power of all classes of stock and at least 50 percent of each class of nonvoting stock in a first tier subsidiary, such subsidiary (and all other corporations below it in the chain which would meet the 80 percent test of section 1563
(a) if the first tier subsidiary were the common parent) shall be treated as includible corporations.
Where common parent owns 100 percent of first tier subsidiary For purposes of subparagraph (A), if the common parent owns directly stock possessing all of the voting power of all classes of stock and all of the nonvoting stock, in a first tier subsidiary, and if the first tier subsidiary owns directly stock possessing at least 50 percent of the voting power of all classes of stock, and at least 50 percent of each class of nonvoting stock, in a second tier subsidiary of the common parent, such second tier subsidiary (and all other corporations below it in the chain which would meet the 80 percent test of section 1563
(a) if the second tier subsidiary were the common parent) shall be treated as includible corporations.
Nonvoting common stock may be acquired in certain cases Nonvoting common stock of an employer described in the second sentence of section 401
(a)(22) shall be treated as employer securities if an employer has a class of nonvoting common stock outstanding and the specific shares that the plan acquires have been issued and outstanding for at least 24 months.
Nonrecognition of gain or loss on contribution of employer securities to tax credit employee stock ownership plan No gain or loss shall be recognized to the taxpayer with respect to the transfer of employer securities to a tax credit employee stock ownership plan maintained by the taxpayer to the extent that such transfer is required under section 41
or subparagraph (A) or (B) of section 48
Securities received in certain transactions (1)
In general A plan to which section 1042 applies and an eligible worker-owned cooperative (within the meaning of section 1042
(c)) shall provide that no portion of the assets of the plan or cooperative attributable to (or allocable in lieu of) employer securities acquired by the plan or cooperative in a sale to which section 1042 applies may accrue (or be allocated directly or indirectly under any plan of the employer meeting the requirements of section 401
any taxpayer who makes an election under section 1042
(a) with respect to employer securities,,,
any individual who is related to the taxpayer (within the meaning of section 267
for the benefit of any other person who owns (after application of section 318
(a)) more than 25 percent of—
For purposes of subparagraph (B), section 318
(a) shall be applied without regard to the employee trust exception in paragraph (2)(B)(i).
Failure to meet requirements If a plan fails to meet the requirements of paragraph (1)—
Lineal descendants Paragraph (1)(A)(ii) shall not apply to any individual if—
the aggregate amount allocated to the benefit of all such lineal descendants during the nonallocation period does not exceed more than 5 percent of the employer securities (or amounts allocated in lieu thereof) held by the plan which are attributable to a sale to the plan by any person related to such descendants (within the meaning of section 267
(c)(4)) in a transaction to which section 1042 applied.
25-percent shareholders A person shall be treated as failing to meet the stock ownership limitation under paragraph (1)(B) if such person fails such limitation—
Nonallocation period The term “nonallocation period” means the period beginning on the date of the sale of the qualified securities and ending on the later of—
Distribution and payment requirements A plan meets the requirements of this subsection if—
Distribution requirement (A)
In general The plan provides that, if the participant and, if applicable pursuant to sections 401
(a)(11) and 417, with the consent of the participant’s spouse elects, the distribution of the participant’s account balance in the plan will commence not later than 1 year after the close of the plan year—
Exception for certain financed securities For purposes of this subsection, the account balance of a participant shall not include any employer securities acquired with the proceeds of the loan described in section 404
(a)(9) until the close of the plan year in which such loan is repaid in full.
Limited distribution period The plan provides that, unless the participant elects otherwise, the distribution of the participant’s account balance will be in substantially equal periodic payments (not less frequently than annually) over a period not longer than the greater of—
Cost-of-living adjustment The Secretary shall adjust the dollar amounts under paragraph (1)(C) at the same time and in the same manner as under section 415
Prohibited allocations of securities in an S corporation (1)
In general An employee stock ownership plan holding employer securities consisting of stock in an S corporation shall provide that no portion of the assets of the plan attributable to (or allocable in lieu of) such employer securities may, during a nonallocation year, accrue (or be allocated directly or indirectly under any plan of the employer meeting the requirements of section 401
(a)) for the benefit of any disqualified person.
Failure to meet requirements (A)
In general If a plan fails to meet the requirements of paragraph (1), the plan shall be treated as having distributed to any disqualified person the amount allocated to the account of such person in violation of paragraph (1) at the time of such allocation.
Cross reference For excise tax relating to violations of paragraph (1) and ownership of synthetic equity, see section 4979A.
Nonallocation year For purposes of this subsection—
In general The term “nonallocation year” means any plan year of an employee stock ownership plan if, at any time during such plan year—
Attribution rules For purposes of subparagraph (A)—
The rules of section 318
(a) shall apply for purposes of determining ownership, except that—
in applying paragraph (1) thereof, the members of an individual’s family shall include members of the family described in paragraph (4)(D), and
Notwithstanding the employee trust exception in section 318
(a)(2)(B)(i), an individual shall be treated as owning deemed-owned shares of the individual.
Disqualified person For purposes of this subsection—
In general The term “disqualified person” means any person if—
the aggregate number of deemed-owned shares of such person and the members of such person’s family is at least 20 percent of the number of deemed-owned shares of stock in the S corporation, or
Treatment of family members In the case of a disqualified person described in subparagraph (A)(i), any member of such person’s family with deemed-owned shares shall be treated as a disqualified person if not otherwise treated as a disqualified person under subparagraph (A).
Deemed-owned shares (i)
such person’s share of the stock in such corporation which is held by such plan but which is not allocated under the plan to participants.
Person’s share of unallocated stock
Member of family For purposes of this paragraph, the term “member of the family” means, with respect to any individual—
an ancestor or lineal descendant of the individual or the individual’s spouse,
a brother or sister of the individual or the individual’s spouse and any lineal descendant of the brother or sister, and
Treatment of synthetic equity For purposes of paragraphs (3) and (4), in the case of a person who owns synthetic equity in the S corporation, except to the extent provided in regulations, the shares of stock in such corporation on which such synthetic equity is based shall be treated as outstanding stock in such corporation and deemed-owned shares of such person if such treatment of synthetic equity of 1 or more such persons results in—
For purposes of this paragraph, synthetic equity shall be treated as owned by a person in the same manner as stock is treated as owned by a person under the rules of paragraphs (2) and (3) of section 318
(a). If, without regard to this paragraph, a person is treated as a disqualified person or a year is treated as a nonallocation year, this paragraph shall not be construed to result in the person or year not being so treated.
Employer securities The term “employer security” has the meaning given such term by section 409
Synthetic equity The term “synthetic equity” means any stock option, warrant, restricted stock, deferred issuance stock right, or similar interest or right that gives the holder the right to acquire or receive stock of the S corporation in the future. Except to the extent provided in regulations, synthetic equity also includes a stock appreciation right, phantom stock unit, or similar right to a future cash payment based on the value of such stock or appreciation in such value.
In general The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection.
Avoidance or evasion The Secretary may, by regulation or other guidance of general applicability, provide that a nonallocation year occurs in any case in which the principal purpose of the ownership structure of an S corporation constitutes an avoidance or evasion of this subsection.
For requirements for allowance of employee plan credit, see section 48
For assessable penalties for failure to meet requirements of this section, or for failure to make contributions required with respect to the allowance of an employee plan credit or employee stock ownership credit, see section 6699.
For requirements for allowance of an employee stock ownership credit, see section 41.
(Added Pub. L. 95–600, title I, § 141(a),Nov. 6, 1978, 92 Stat. 2787, § 409A; amended Pub. L. 96–222, title I, § 101(a)(7)(D)–(F), (I), (J), (L)(i)(VI), (ii)(I), (II), (iii)(V), (v)(VI), (VII), Apr. 1, 1980, 94 Stat. 198–200; Pub. L. 96–605, title II, § 224(a),Dec. 28, 1980, 94 Stat. 3528; Pub. L. 97–34, title III, §§ 331(c)(1), 334, 336, 337
(a),Aug. 13, 1981, 95 Stat. 293, 297, 298; Pub. L. 97–448, title I, § 103(h), (i),Jan. 12, 1983, 96 Stat. 2379; renumbered § 409 and amended Pub. L. 98–369, div. A, title IV, §§ 474(r)(15), 491(e)(1),July 18, 1984, 98 Stat. 843, 852; Pub. L. 99–514, title XI, §§ 1172(b)(1), 1174(a)(1), (b)(1), (2), (c)(1)(A), 1176(b), title XVIII, §§ 1852(a)(4)(B), 1854(a)(3)(A), (f)(1), (3)(C), 1899A(11),Oct. 22, 1986, 100 Stat. 2514, 2516, 2517, 2520, 2865, 2873, 2881, 2882, 2958; Pub. L. 100–647, title I, §§ 1011B(g)(1), (2), (i)(1), (3), (j)(3), (5), (k)(3), 1018
(t)(4)(B), (C), (H),Nov. 10, 1988, 102 Stat. 3490, 3492, 3493, 3588, 3589; Pub. L. 101–239, title VII, §§ 7304(a)(2)(A), (B), 7811
(h)(1),Dec. 19, 1989, 103 Stat. 2352, 2353, 2409; Pub. L. 105–34, title XV, § 1506(a),Aug. 5, 1997, 111 Stat. 1064; Pub. L. 107–16, title VI, § 656(a),June 7, 2001, 115 Stat. 131; Pub. L. 107–147, title IV, § 411(j)(2),Mar. 9, 2002, 116 Stat. 47; Pub. L. 109–280, title IX, § 901(a)(2)(B),Aug. 17, 2006, 120 Stat. 1029.)
Section 41, referred to in subsecs. (b)(1)(A), (4), (g), (i)(1)(A), (m), and (p), which related to employee stock ownership credit, was repealed by Pub. L. 99–514, title XI, § 1171(a),Oct. 22, 1986, 100 Stat. 2513. Section 30 of this title, relating to credit for increasing research activities, was renumbered section 41.
Section 403(c)(1) of the Employee Retirement Income Security Act of 1974, referred to in subsecs. (j) and (k), is classified to section 1103
(c)(1) of Title 29, Labor.
Subsec. (n) ofsection 48, referred to in subsecs. (g), (m), and (p)(1), was repealed by section 474(o)(15) ofPub. L. 98–369.
Section 6699, referred to in subsec. (p)(2), was repealed by Pub. L. 99–514, title XI, § 1171(b)(7)(A),Oct. 22, 1986, 100 Stat. 2513.
A prior section 409, added Pub. L. 93–406, title II, § 2002(c),Sept. 2, 1974, 88 Stat. 964; amended Pub. L. 94–455, title XV, § 1501(b)(6), title XIX, §§ 1901(a)(60), 1906(b)(13)(A),Oct. 4, 1976, 90 Stat. 1736, 1774, 1834; Pub. L. 95–600, title I, §§ 156(c)(2), (3), 157(e)(1)(B),Nov. 6, 1978, 92 Stat. 2803, 2806; Pub. L. 96–222, title I, § 101(a)(14)(B),Apr. 1, 1980, 94 Stat. 204; Pub. L. 97–34, title III, § 311(g)(1)(D), (3),Aug. 13, 1981, 95 Stat. 281; Pub. L. 97–248, title II, § 243(b)(1)(B), title III, § 335(a)(2),Sept. 3, 1982, 96 Stat. 523, 628; Pub. L. 97–452, § 2(c)(1),Jan. 12, 1983, 96 Stat. 2478; Pub. L. 98–369, div. A, title I, § 42(a)(7), title V, § 522(d)(13),July 18, 1984, 98 Stat. 557, 871, related to retirement bonds, prior to repeal by Pub. L. 98–369, div. A, title IV, § 491(b), (f)(1),July 18, 1984, 98 Stat. 848, 853, applicable to obligations issued after Dec. 31, 1983.
2006—Subsec. (h)(7). Pub. L. 109–280inserted “or subparagraph (B) or (C) of section 401
(a)(35)” before period at end.
2002—Subsec. (o)(1)(C)(ii). Pub. L. 107–147substituted “$800,000” for “$500,000” in two places and “$160,000” for “$100,000”.
2001—Subsecs. (p), (q). Pub. L. 107–16added subsec. (p) and redesignated former subsec. (p) as (q).
1997—Subsec. (h)(2). Pub. L. 105–34designated existing provisions as subpar. (A), inserted subpar. heading, struck out “In the case of an employer whose charter or bylaws restrict the ownership of substantially all outstanding employer securities to employees or to a trust described in section 401
(a), a plan which otherwise meets the requirements of this subsection or section 4975
(e)(7) shall not be considered to have failed to meet the requirements of this subsection or of section 401
(a) merely because it does not permit a participant to exercise the right described in paragraph (1)(A) if such plan provides that participants entitled to a distribution from the plan shall have a right to receive such distribution in cash, except that such plan may distribute employer securities subject to a requirement that such securities may be resold to the employer under terms which meet the requirements of paragraph (1)(B).” after “employer securities.”, and added subpar. (B).
1989—Subsec. (l)(5). Pub. L. 101–239, § 7811(h)(1), substituted “the second sentence” for “the last sentence”.
Subsec. (n)(1). Pub. L. 101–239, § 7304(a)(2)(A)(i), struck out “or section 2057” after “section 1042” in two places in introductory provisions.
Subsec. (n)(1)(A)(i). Pub. L. 101–239, § 7304(a)(2)(A)(ii), struck out “or any decedent if the executor of the estate of such decedent makes a qualified sale to which section 2057 applies” after “employer securities,”.
Subsec. (n)(1)(A)(ii). Pub. L. 101–239, § 7304(a)(2)(A)(iii), struck out “or the decedent” after “the taxpayer”.
Subsec. (n)(2)(C)(i), (3)(A)(ii). Pub. L. 101–239, § 7304(a)(2)(B), struck out “or section 2057” after “section 1042”.
1988—Subsec. (d). Pub. L. 100–647, § 1011B(j)(3), inserted “or to any distribution or reinvestment required under section 401
(a)(28)” after “under section 401
Subsec. (e)(5). Pub. L. 100–647, § 1018(t)(4)(H), substituted “paragraph (3)” for “paragraph (2) or (3)”.
Subsec. (h)(2). Pub. L. 100–647, § 1018(t)(4)(B), substituted “paragraph (1)(B)” for “section 409
Subsec. (h)(7). Pub. L. 100–647, § 1011B(j)(5), added par. (7).
Subsec. (l)(4), (5). Pub. L. 100–647, § 1011B(k)(3), redesignated par. (4), relating to nonvoting common stock may be acquired in certain cases, as (5).
Subsec. (n)(1). Pub. L. 100–647, § 1011B(g)(1), made technical amendment to directory language of Pub. L. 99–514, § 1172(b)(1). See 1986 Amendment note below.
Subsec. (n)(2)(C)(i), (3)(A)(ii). Pub. L. 100–647, § 1011B(g)(2), inserted “or section 2057” after “which section 1042”.
Subsec. (n)(3)(C). Pub. L. 100–647, § 1018(t)(4)(C), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “The term ‘nonallocation period’ means the 10-year period beginning on the later of—
Subsec. (o)(1)(A). Pub. L. 100–647, § 1011B(i)(3), substituted “if the participant and, if applicable pursuant to sections 401
(a)(11) and 417, with the consent of the participant’s spouse elects” for “unless the participant otherwise elects”.
Subsec. (o)(1)(A)(ii). Pub. L. 100–647, § 1011B(i)(1), substituted “distribution is required to begin under this clause” for “such year”.
1986—Subsec. (a)(3). Pub. L. 99–514, § 1174(b)(2), inserted reference to subsec. (o).
Subsec. (d). Pub. L. 99–514, § 1899A(11), substituted “participant’s” for “participants’s”.
Pub. L. 99–514, § 1852(a)(4)(B), inserted at end “This subsection shall not apply to any distribution required under section 401
(a)(9).”
Subsec. (d)(1). Pub. L. 99–514, § 1174(a)(1), substituted “separation from service, or termination of the plan” for “or separation from service”.
Subsec. (e)(2). Pub. L. 99–514, § 1854(f)(1)(C), (D), inserted “or beneficiary” after “participant” in two places and substituted “securities of the employer” for “employer securities”.
Subsec. (e)(3). Pub. L. 99–514, § 1854(f)(1)(B)–(D), inserted “or beneficiary” after “participant” in two places and substituted “securities of the employer” for “employer securities” and “any corporate matter which involves the voting of such shares with respect to the approval or disapproval of any corporate merger or consolidation, recapitalization, reclassification, liquidation, dissolution, sale of substantially all assets of a trade or business, or such similar transaction as the Secretary may prescribe in regulations” for “a corporate matter which (by law or charter) must be decided by more than a majority vote of outstanding common shares voted”.
Subsec. (e)(5). Pub. L. 99–514, § 1854(f)(1)(A), added par. (5).
Subsec. (h)(2). Pub. L. 99–514, § 1854(f)(3)(C), inserted “, except that such plan may distribute employer securities subject to a requirement that such securities may be resold to the employer under terms which meet the requirements of section 409
Subsec. (h)(5), (6). Pub. L. 99–514, § 1174(c)(1)(A), added pars. (5) and (6).
Subsec. (l)(4). Pub. L. 99–514, § 1176(b), added par. (4) relating to acquisition of nonvoting common stock.
Subsec. (n). Pub. L. 99–514, § 1854(a)(3)(A), added subsec. (n). Former subsec. (n) redesignated (o).
Subsec. (n)(1). Pub. L. 99–514, § 1172(b)(1), as amended by Pub. L. 100–647, § 1011B(g)(1), inserted “or section 2057” in two places in introductory provisions, “or any decedent if the executor of the estate of such decedent makes a qualified sale to which section 2057 applies,” in subpar. (A)(i), and “or the decedent” in subpar. (A)(ii).
Subsec. (o). Pub. L. 99–514, § 1174(b)(1), added subsec. (o). Former subsec. (o) redesignated (p).
Pub. L. 99–514, § 1854(a)(3)(A), redesignated former subsec. (n) as (o).
Subsec. (p). Pub. L. 99–514, § 1174(b)(1), redesignated former subsec. (o) as (p).
1984—Subsec. (b)(1)(A). Pub. L. 98–369, § 474(r)(15)(A), (B), substituted “41” for “44G” and struck out “48(n)(1)(A) or” after “requirements of section”.
Subsec. (b)(4). Pub. L. 98–369, § 474(r)(15)(A), substituted “41” for “44G”.
Subsec. (g). Pub. L. 98–369, § 474(r)(15)(A), (C), substituted “41” for “44G” in two places, and inserted provision directing that, for purposes of the preceding sentence, the references to section 48
(n)(1) and the employee plan credit shall refer to such section and credit as in effect before the enactment of the Tax Reform Act of 1984.
Subsec. (i)(1)(A). Pub. L. 98–369, § 474(r)(15)(A), (D), substituted “41” for “44G”, and struck out “48(n)(1) or” after “taxable year under section”.
Subsec. (k). Pub. L. 98–369, § 474(r)(15)(E), inserted provision requiring that, for purposes of this subsection, the reference to the matching employee plan credit refer to such credit as in effect before the enactment of the Tax Reform Act of 1984.
Subsec. (m). Pub. L. 98–369, § 474(r)(15)(A), substituted “41” for “44G”.
Subsec. (n)(3). Pub. L. 98–369, § 474(r)(15)(A), substituted “41” for “44G”.
1983—Subsec. (d)(2). Pub. L. 97–448, § 103(i), struck out provisions covering the sale of substantially all of the stock of a subsidiary of the employer.
Subsec. (h)(2). Pub. L. 97–448, § 103(h), substituted “the requirements of this subsection or of section 401
(a)” for “the requirements of section 401
1981—Subsec. (b). Pub. L. 97–34, § 331(c)(1)(A), (B), inserted in par. (1)(A) reference to section 44G
(c)(1)(B), and inserted in par. (4) “or the credit allowed under section 44G (relating to the employee stock ownership credit)” after “basic employee plan credit”.
Subsec. (d). Pub. L. 97–34, § 337, designated provision relating to death, disability, or separation from service as par. (1) and added pars. (2) and (3).
Subsec. (g). Pub. L. 97–34, § 331(c)(1)(C), (D), inserted reference to section 44G
(c)(1)(B) and inserted “or the credit allowed under section 44G (relating to employee stock ownership credit)” after “employee plan credit”.
Subsec. (h)(2). Pub. L. 97–34, § 334, substituted “this subsection” for “this section” and inserted provision respecting receipt of distributions in cash where employer’s charter or bylaws restrict ownership of substantially all outstanding employer securities to employees or to a section 401
(a) trust where a participant is not permitted to exercise the right described in par. (1)(A).
Subsec. (h)(3), (4). Pub. L. 97–34, § 336, added pars. (3) and (4).
Subsec. (i)(1)(A). Pub. L. 97–34, § 331(c)(1)(E), inserted reference to section 44G
Subsec. (m). Pub. L. 97–34, § 331(c)(1)(F), inserted reference to section 44G
Subsec. (n)(2), (3). Pub. L. 97–34, § 331(c)(1)(G), (H), inserted “or employee stock ownership credit” after “employee plan credit” in par. (2) and added par. (3).
1980—Pub. L. 96–222, § 101(a)(7)(L)(v)(VII), substituted “tax credit employee stock ownership plans” for “ESOPS” in section catchline.
Subsec. (a). Pub. L. 96–222, § 101(a)(7)(L)(ii)(I), (v)(VI), substituted in heading and in text “tax credit employee stock ownership plan” for “ESOP”.
Subsec. (b)(4). Pub. L. 96–222, § 101(a)(7)(L)(iii)(V), substituted “employee plan credit” for “ESOP credit”.
Subsec. (d). Pub. L. 96–222, § 101(a)(7)(F), inserted “(or allocated to a participant’s account in connection with matched employer and employee contributions)” after “under subsection (b)”.
Subsec. (f)(1). Pub. L. 96–222, § 101(a)(7)(I)(i), substituted “only if it is established on or before the due date (including any extension of such date) for the filing of the employer’s tax return for the first taxable year of the employer for which an employee plan credit is claimed by the employer with respect to the plan” for “for a plan year only if it is established on or before the due date for the filing of the employer’s tax return for the taxable year (including any extension of such date) in which or with which the plan year ends”.
Subsec. (f)(2). Pub. L. 96–222, § 101(a)(7)(I)(ii), (L)(v)(VII), substituted “employee plan” for “ESOP” and inserted “with respect to the plan” after “by the employer”.
Subsec. (g). Pub. L. 96–222, § 101(a)(7)(L)(iii)(V), substituted “employee plan credit” for “ESOP credit”.
Subsec. (h)(2). Pub. L. 96–222, § 101(a)(7)(E), inserted “or of section 4975
(e)(7)” after “the requirements of this section”.
Subsecs. (j)(2), (k)(1). Pub. L. 96–222, § 101(a)(7)(L)(iii)(V), substituted “employee plan credit” for “ESOP credit”.
Subsec. (l)(2)(B). Pub. L. 96–222, § 101(a)(7)(J)(i), substituted “class of common stock” for “class of stock”.
Subsec. (l)(3). Pub. L. 96–222, § 101(a)(7)(J)(ii), (L)(ii)(II), substituted “as employer securities” for “as meeting the requirements of paragraph (1)”, “paragraph (1) or (2)” for “paragraph (2)”, and “tax credit employee stock ownership plan” for “ESOP” and inserted provisions requiring preferred stock to be treated as noncallable if after the call there will be a reasonable opportunity for a conversion which meets the requirements of the preceding sentence.
Subsec. (l)(4). Pub. L. 96–605substituted in heading “Application to controlled group of corporations” for “Controlled group of corporations defined” and in subpar. (B) heading “Where common parent owns at least” for “Common parent may own only” and added subpar. (C).
Subsec. (m). Pub. L. 96–222, § 101(a)(7)(D), (L)(i), substituted provisions relating to nonrecognition of gain or loss on contribution of employer securities to a tax credit employee stock ownership plan for provisions relating to contributions of stock of a controlling corporation.
Subsec. (n). Pub. L. 96–222, § 101(a)(7)(L)(iii)(V), substituted “employee plan credit” for “ESOP credit” in pars. (1) and (2).
Pub. L. 107–16, title VI, § 656(d),June 7, 2001, 115 Stat. 135, provided that:
Pub. L. 105–34, title I, § 1506(c),Aug. 5, 1997, 111 Stat. 1066, provided that: “The amendments made by this section [amending this section, section 4975 of this title, and section 1108 of Title 29, Labor] shall apply to taxable years beginning after December 31, 1997.”
Pub. L. 101–239, title VII, § 7304(a)(3),Dec. 19, 1989, 103 Stat. 2353, provided that: “The amendments made by this subsection [amending this section and sections 4978 and 4979A of this title and repealing sections 2057 and 4978A of this title] shall apply to the estates of decedents dying after the date of the enactment of this Act [Dec. 19, 1989].”
Amendment by section 7811(h)(1) 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.
Pub. L. 99–514, title XI, § 1172(c),Oct. 22, 1986, 100 Stat. 2515, provided that: “The amendments made by this section [enacting section 2057 of this title and amending this section and section 4979A of this title] shall apply to sales after the date of the enactment of this Act [Oct. 22, 1986] with respect to which an election is made by the executor of an estate who is required to file the return of the tax imposed by the Internal Revenue Code of 1986 on a date (including extensions) after the date of the enactment of this Act.”
Pub. L. 99–514, title XI, § 1174(a)(2),Oct. 22, 1986, 100 Stat. 2516, as amended by Pub. L. 100–647, title I, § 1011B(i)(2),Nov. 10, 1988, 102 Stat. 3492, provided that: “The amendment made by this subsection [amending this section] shall apply to distributions after December 31, 1984.”
Pub. L. 99–514, title XI, § 1174(b)(3),Oct. 22, 1986, 100 Stat. 2517, provided that: “The amendments made by this subsection [amending this section] shall apply to distributions attributable to stock acquired after December 31, 1986.”
Pub. L. 99–514, title XI, § 1174(c)(1)(B),Oct. 22, 1986, 100 Stat. 2518, provided that: “The amendment made by this paragraph [amending this section] shall apply to distributions attributable to stock acquired after December 31, 1986, except that a plan may elect to have such amendment apply to all distributions after the date of the enactment of this Act [Oct. 22, 1986].”
Amendment by section 1176(b) ofPub. L. 99–514applicable to acquisitions of securities after Dec. 31, 1986, see section 1176(c) ofPub. L. 99–514, set out as a note under section 401 of this title.
Amendment by section 1852(a)(4)(B) ofPub. 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.
Pub. L. 99–514, title XVIII, § 1854(a)(3)(C),Oct. 22, 1986, 100 Stat. 2874, as amended by Pub. L. 100–647, title I, § 1018(t)(4)(G),Nov. 10, 1988, 102 Stat. 3588, provided that:
Pub. L. 99–514, title XVIII, § 1854(f)(4)(A), (B),Oct. 22, 1986, 100 Stat. 2882, provided that:
Amendment by section 474(r)(15) ofPub. L. 98–369applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years, see section 475(a) ofPub. L. 98–369, set out as a note under section 21 of this title.
Redesignation of section 409A as 409 by section 491(e)(1) ofPub. L. 98–369effective Jan. 1, 1984, see section 491(f)(3) ofPub. L. 98–369, set out as a note under section 401 of this title.
Amendment by section 331(c)(1) ofPub. L. 97–34applicable to taxable years ending after Dec. 31, 1982, see section 331(f)(2) ofPub. L. 97–34, set out as a note under section 404 of this title.
Pub. L. 97–34, title III, § 337(b),Aug. 13, 1981, 95 Stat. 298, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by this section [amending this section] shall apply to distributions described in section 409A(d) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (or any corresponding provision of prior law) made after March 29, 1975.”
Amendment by sections 334 and 336 ofPub. L. 97–34applicable to taxable years beginning after Dec. 31, 1981, see section 339 ofPub. L. 97–34, set out as a note under section 401 of this title.
Pub. L. 96–605, title II, § 224(b),Dec. 28, 1980, 94 Stat. 3529, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to qualified investment for taxable years beginning after December 31, 1978.”
Pub. L. 95–600, title I, § 141(g),Nov. 6, 1978, 92 Stat. 2795, as added by Pub. L. 96–222, title I, § 101(a)(7)(B),Apr. 1, 1980, 94 Stat. 197; amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that:
We truncate results at 20000 items. After that, you're on your own. Definition of Employer Securities : 2011-06-17
Qualifications for Tax Credit Employee Stock Ownership Plans : 2011-04-29
Put Option : 2008-10-10
Qualifications for Tax Credit Employee Stock Ownership Plans : 2008-01-25
Definition of Employer Securities : 2007-11-02
Distribution and Payment Requirements : 2005-09-16
Definition of Employer Securities : 2001-04-20
Definition of Employer Securities : 2001-03-16
Qualifications for Tax Credit Employee Stock Ownership Plans : 2000-02-25
Tax Credit Employee Stock Ownership Plan Defined : 1999-04-23