Notes on 26 U.S.C. § 403 : US Code - Notes

Search Notes on 26 U.S.C. § 403 : US Code - Notes

(Aug. 16, 1954, ch. 736, 68A Stat. 137; Pub. L. 85-866, title I,
Sec. 23(a)-(c), Sept. 2, 1958, 72 Stat. 1620-1622; Pub. L. 87-370,
Sec. 3(a), Oct. 4, 1961, 75 Stat. 801; Pub. L. 87-792, Sec. 4(d),
Oct. 10, 1962, 76 Stat. 825; Pub. L. 88-272, title II, Sec.
232(e)(4)-(6), Feb. 26, 1964, 78 Stat. 111; Pub. L. 91-172, title
III, Sec. 321(b)(2), title V, Sec. 515(a)(2), Dec. 30, 1969, 83
Stat. 591, 644; Pub. L. 93-406, title II, Secs. 1022(e),
2002(g)(6), 2004(c)(4), 2005(b)(2), Sept. 2, 1974, 88 Stat. 940,
969, 986, 991; Pub. L. 94-267, Sec. 1(b), Apr. 15, 1976, 90 Stat.
366; Pub. L. 94-455, title XIV, Sec. 1402(b)(1)(D), (2), title XV,
Sec. 1504(a), title XIX, Secs. 1901(a)(58), (b)(8)(A),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1731, 1732, 1738, 1774,
1794, 1834; Pub. L. 95-458, Sec. 4(b), Oct. 14, 1978, 92 Stat.
1259; Pub. L. 95-600, title I, Secs. 154(a), 156(a), (b),
157(g)(2), Nov. 6, 1978, 92 Stat. 2801, 2802, 2808; Pub. L. 96-222,
title I, Sec. 101(a)(12), (13)(C), Apr. 1, 1980, 94 Stat. 204; Pub.
L. 97-34, title III, Sec. 311(b)(3)(B), Aug. 13, 1981, 95 Stat.
280; Pub. L. 97-248, title II, Sec. 251(a), (b), (c)(3), Sept. 3,
1982, 96 Stat. 529-531; Pub. L. 97-448, title I, Sec. 103(c)(8)(B),
Jan. 12, 1983, 96 Stat. 2377; Pub. L. 98-21, title I, Sec.
122(c)(4), Apr. 20, 1983, 97 Stat. 87; Pub. L. 98-369, div. A,
title IV, Sec. 491(d)(12), title V, Secs. 521(c), 522(a)(2), (3),
(d)(9)-(11), title X, Sec. 1001(b)(4), (e), July 18, 1984, 98 Stat.
849, 867, 869-871, 1011, 1012; Pub. L. 99-514, title XI, Secs.
1120(a), (b), 1122(b)(1)(B), (d), 1123(c), title XVIII, Sec.
1852(a)(3)(A), (B), (5)(B), (b)(10), Oct. 22, 1986, 100 Stat. 2463,
2466, 2469, 2474, 2865, 2867; Pub. L. 100-647, title I, Sec.
1011(c)(7)(B), (12), (m)(1), (2), title VI, Sec. 6052(a)(1), Nov.
10, 1988, 102 Stat. 3458, 3459, 3471, 3696; Pub. L. 101-508, title
XI, Sec. 11701(k), Nov. 5, 1990, 104 Stat. 1388-513; Pub. L. 102-
318, title V, Secs. 521(b)(12), (13), 522(a)(3), (c)(2), (3), July
3, 1992, 106 Stat. 311, 314, 315; Pub. L. 104-188, title I, Secs.
1450(c)(1), 1704(t)(69), Aug. 20, 1996, 110 Stat. 1815, 1891; Pub.
L. 105-34, title XV, Secs. 1504(a)(1), 1505(c), title XVI, Sec.
1601(d)(6)(B), Aug. 5, 1997, 111 Stat. 1063, 1064, 1090; Pub. L.
105-206, title VI, Sec. 6005(c)(2)(B), July 22, 1998, 112 Stat.
800; Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 314(e)(1)],
Dec. 21, 2000, 114 Stat. 2763, 2763A-643; Pub. L. 107-16, title VI,
Secs. 632(a)(2), 641(b)(1), (e)(7), 642(b)(1), 646(a)(2), 647(a),
June 7, 2001, 115 Stat. 113, 120, 121, 126, 127; Pub. L. 107-147,
title IV, Sec. 411(p)(1)-(3), Mar. 9, 2002, 116 Stat. 49, 50; Pub.
L. 108-311, title IV, Secs. 404(e), 408(a)(11), Oct. 4, 2004, 118
Stat. 1188, 1191; Pub. L. 109-135, title IV, Sec. 412(w), Dec. 21,
2005, 119 Stat. 2638.)
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
AMENDMENTS
2005 - Subsec. (b)(9)(B). Pub. L. 109-135 inserted "or" before "a
convention".
2004 - Subsec. (a)(4)(B). Pub. L. 108-311, Sec. 404(e), reenacted
heading without change and amended text generally. Prior to
amendment, text read as follows: "Rules similar to the rules of
paragraphs (2) through (7) of section 402(c) shall apply for
purposes of subparagraph (A)."
Subsec. (b)(7)(A)(ii). Pub. L. 108-311, Sec. 408(a)(11),
substituted "3121(a)(5)(D)" for "3121(a)(1)(D)".
2002 - Subsec. (b)(1). Pub. L. 107-147, Sec. 411(p)(1), inserted
concluding provisions and struck out former concluding provisions
which read as follows: "then amounts contributed by such employer
for such annuity contract on or after such rights become
nonforfeitable shall be excluded from the gross income of the
employee for the taxable year to the extent that the aggregate of
such amounts does not exceed the applicable limit under section
415. The amount actually distributed to any distributee under such
contract shall be taxable to the distributee (in the year in which
so distributed) under section 72 (relating to annuities). For
purposes of applying the rules of this subsection to amounts
contributed by an employer for a taxable year, amounts transferred
to a contract described in this paragraph by reason of a rollover
contribution described in paragraph (8) of this subsection or
section 408(d)(3)(A)(ii) shall not be considered contributed by
such employer."
Subsec. (b)(3). Pub. L. 107-147, Sec. 411(p)(3), in first
sentence, inserted ", and which precedes the taxable year by no
more than five years" before period at end and, in second sentence,
struck out "or any amount received by a former employee after the
fifth taxable year following the taxable year in which such
employee was terminated" after "this subsection applies".
Subsec. (b)(6). Pub. L. 107-147, Sec. 411(p)(2), struck out
heading and text of par. (6). Text read as follows: "For purposes
of this subsection and section 72(f) (relating to special rules for
computing employees' contributions to annuity contracts), if rights
of the employee under an annuity contract described in
subparagraphs (A) and (B) of paragraph (1) change from forfeitable
to nonforfeitable rights, then the amount (determined without
regard to this subsection) includible in gross income by reason of
such change shall be treated as an amount contributed by the
employer for such annuity contract as of the time such rights
become nonforfeitable."
2001 - Subsec. (b)(1). Pub. L. 107-16, Secs. 642(b)(1), 901,
temporarily substituted "section 408(d)(3)(A)(ii)" for "section
408(d)(3)(A)(iii)" in concluding provisions. See Effective and
Termination Dates of 2001 Amendment note below.
Pub. L. 107-16, Secs. 632(a)(2)(A), 901, temporarily substituted
"the applicable limit under section 415" for "the exclusion
allowance for such taxable year" in concluding provisions. See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (b)(2). Pub. L. 107-16, Secs. 632(a)(2)(B), 901,
temporarily struck out par. (2), which described exclusion
allowance for purposes of subsec. (b) providing general criteria,
determination under section 415 rules, number of years of service
for duly ordained, commissioned, or licensed ministers or lay
employees, and alternative exclusion allowance for such ministers
or lay employees. See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (b)(3). Pub. L. 107-16, Secs. 632(a)(2)(C), 901,
temporarily inserted "or any amount received by a former employee
after the fifth taxable year following the taxable year in which
such employee was terminated" before period at end of second
sentence. See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (b)(7)(A)(ii). Pub. L. 107-16, Secs. 646(a)(2)(A), 901,
temporarily substituted "has a severance from employment" for
"separates from service". See Effective and Termination Dates of
2001 Amendment note below.
Subsec. (b)(8)(A)(ii). Pub. L. 107-16, Secs. 641(b)(1), 901,
temporarily substituted "such distribution to an eligible
retirement plan described in section 402(c)(8)(B), and" for "such
distribution to an individual retirement plan or to an annuity
contract described in paragraph (1), and". See Effective and
Termination Dates of 2001 Amendment note below.
Subsec. (b)(8)(B). Pub. L. 107-16, Secs. 641(e)(7), 901,
temporarily reenacted heading without change and amended text
generally. Prior to amendment, text read as follows: "Rules similar
to the rules of paragraphs (2) through (7) of section 402(c)
(including paragraph (4)(C) thereof) shall apply for purposes of
subparagraph (A)." See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (b)(11). Pub. L. 107-16, Secs. 646(a)(2)(B), 901,
temporarily substituted "severance from employment" for "separation
from service" in heading. See Effective and Termination Dates of
2001 Amendment note below.
Subsec. (b)(11)(A). Pub. L. 107-16, Secs. 646(a)(2)(A), 901,
temporarily substituted "has a severance from employment" for
"separates from service". See Effective and Termination Dates of
2001 Amendment note below.
Subsec. (b)(13). Pub. L. 107-16, Secs. 647(a), 901, temporarily
added par. (13). See Effective and Termination Dates of 2001
Amendment note below.
2000 - Subsec. (b)(3)(B). Pub. L. 106-554 substituted "section
125, 132(f)(4), or" for "section 125 or".
1998 - Subsec. (b)(8)(B). Pub. L. 105-206 inserted "(including
paragraph (4)(C) thereof)" after "section 402(c)".
1997 - Subsec. (b)(1)(A)(iii). Pub. L. 105-34, Sec.
1601(d)(6)(B), added cl. (iii).
Subsec. (b)(3). Pub. L. 105-34, Sec. 1504(a)(1), inserted at end
"Such term includes - " and subpars. (A) and (B).
Subsec. (b)(12)(C). Pub. L. 105-34, Sec. 1505(c), added subpar.
(C).
1996 - Subsec. (b)(1)(E). Pub. L. 104-188, Sec. 1450(c)(1),
amended subpar. (E) generally. Prior to amendment, subpar. (E) read
as follows: "in the case of a contract purchased under a plan which
provides a salary reduction agreement, the plan meets the
requirements of section 401(a)(30),".
Subsec. (b)(10). Pub. L. 104-188, Sec. 1704(t)(69), substituted
"a direct" for "an direct" in last sentence.
1992 - Subsec. (a)(4)(A)(i). Pub. L. 102-318, Sec. 521(b)(12)(A),
inserted before comma at end "in an eligible rollover distribution
(within the meaning of section 402(c)(4))".
Subsec. (a)(4)(B). Pub. L. 102-318, Sec. 521(b)(12)(B), amended
subpar. (B) generally. Prior to amendment, subpar. (B) read as
follows: "Rules similar to the rules of subparagraphs (B) through
(G) of section 402(a)(5) and of paragraphs (6) and (7) of section
402(a) shall apply for purposes of subparagraph (A)."
Subsec. (a)(5). Pub. L. 102-318, Sec. 522(c)(2), added par. (5).
Subsec. (b)(8)(A)(i). Pub. L. 102-318, Sec. 521(b)(13)(A),
inserted before comma at end "in an eligible rollover distribution
(within the meaning of section 402(c)(4))".
Subsec. (b)(8)(B) to (D). Pub. L. 102-318, Sec. 521(b)(13)(B),
added subpar. (B) and struck out former subpars. (B) to (D), which
related to special rules for partial distributions, applicability
of certain similar rules, and eligibility for rollover treatment of
required distributions.
Subsec. (b)(10). Pub. L. 102-318, Sec. 522(a)(3), (c)(3),
substituted "sections 401(a)(9) and 401(a)(31)" for "section
401(a)(9)" and inserted at end "Any amount transferred in an direct
trustee-to-trustee transfer in accordance with section 401(a)(31)
shall not be includible in gross income for the taxable year of the
transfer."
1990 - Subsec. (b)(12)(A). Pub. L. 101-508 inserted "involving a
one-time irrevocable election" after "similar arrangement" in
second sentence.
1988 - Subsec. (b)(1)(D). Pub. L. 100-647, Sec. 1011(m)(1)(B),
substituted "paragraph (12)" for "paragraph (10)".
Subsec. (b)(1)(E). Pub. L. 100-647, Sec. 1011(c)(7)(B), added
subpar. (E).
Subsec. (b)(10). Pub. L. 100-647, Sec. 1011(m)(1)(A),
redesignated par. (10), relating to nondiscrimination requirements,
as (12).
Subsec. (b)(12). Pub. L. 100-647, Sec. 1011(m)(1)(A),
redesignated par. (10), relating to nondiscrimination requirements,
as (12).
Subsec. (b)(12)(A). Pub. L. 100-647, Sec. 1011(m)(2), inserted
"(17)," after "paragraphs (4), (5)," and ", section 401(m)," after
"of section 401(a)" in cl. (i).
Pub. L. 100-647, Sec. 1011(c)(12), inserted after cl. (ii) "For
purposes of clause (i), a contribution shall be treated as not made
pursuant to a salary reduction agreement if under the agreement it
is made pursuant to a 1-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."
Pub. L. 100-647, Sec. 6052(a)(1), amended last sentence
generally. Prior to amendment, last sentence read as follows: "For
purposes of this subparagraph, students who normally work less than
20 hours per week may (subject to the conditions applicable under
section 410(b)(4)) be excluded."
1986 - Subsec. (a)(1). Pub. L. 99-514, Sec. 1122(d)(1),
substituted "Distributee taxable under section 72" for "General
rule" in heading and amended par. (1) generally. Prior to
amendment, par. (1) read as follows: "Except as provided in
paragraph (2), if an annuity contract is purchased by an employer
for an employee under a plan which meets the requirements of
section 404(a)(2) (whether or not the employer deducts the amounts
paid for the contract under such section), the employee shall
include in his gross income the amounts received under such
contract for the year received as provided in section 72 (relating
to annuities)."
Subsec. (a)(2). Pub. L. 99-514, Sec. 1122(b)(1)(B), struck out
par. (2) which read as follows:
"(A) General rule
"If -
"(i) an annuity contract is purchased by an employer for an
employee under a plan described in paragraph (1);
"(ii) such plan requires that refunds of contributions with
respect to annuity contracts purchased under such plan be used to
reduce subsequent premiums on the contracts under the plan; and
"(iii) a lump sum distribution (as defined in section
402(e)(4)(A)) is paid to the recipient,
so much of the total taxable amount (as defined in section
402(e)(4)(D)) of such distribution as is equal to the product of
such total taxable amount multiplied by the fraction described in
section 402(a)(2) shall be treated as a gain from the sale or
exchange of a capital asset held for more than 6 months. For
purposes of this paragraph, in the case of an individual who is an
employee without regard to section 401(c)(1), determination of
whether or not any distribution is a lump sum distribution shall be
made without regard to the requirement that an election be made
under subsection (e)(4)(B) of section 402, but no distribution to
any taxpayer other than an individual, estate, or trust may be
treated as a lump sum distribution under this paragraph.
"(B) Cross reference
"For imposition of separate tax on ordinary income portion of
lump sum distribution, see section 402(e)."
Subsec. (a)(4)(B). Pub. L. 99-514, Sec. 1852(a)(5)(B)(i),
substituted "through (G)" for "through (F)".
Subsec. (b)(1). Pub. L. 99-514, Sec. 1122(d)(2), amended second
sentence generally. Prior to amendment, second sentence read as
follows: "The employee shall include in his gross income the
amounts received under such contract for the year received as
provided in section 72 (relating to annuities)".
Subsec. (b)(1)(D). Pub. L. 99-514, Sec. 1120(a), added subpar.
(D).
Subsec. (b)(7)(A)(ii). Pub. L. 99-514, Sec. 1123(c)(2), inserted
"in the case of contributions made pursuant to a salary reduction
agreement (within the meaning of section 3121(a)(1)(D))," after
"section 72(m)(7)), or".
Subsec. (b)(7)(D). Pub. L. 99-514, Sec. 1852(a)(3)(B), struck out
subpar. (D) "Distribution requirements" which read as follows: "For
purposes of determining when the interest of an employee in a
custodial account must be distributed, such account shall be
treated in the same manner as an annuity contract."
Subsec. (b)(8)(C). Pub. L. 99-514, Sec. 1852(b)(10), inserted
"and" before "(F)(i)".
Subsec. (b)(8)(D). Pub. L. 99-514, Sec. 1852(a)(5)(B)(ii), added
subpar. (D).
Subsec. (b)(10). Pub. L. 99-514, Sec. 1120(b), added par. (10)
relating to nondiscrimination requirements.
Pub. L. 99-514, Sec. 1852(a)(3)(A), added par. (10) relating to
distribution requirements.
Subsec. (b)(11). Pub. L. 99-514, Sec. 1123(c)(1), added par.
(11).
Subsec. (c). Pub. L. 99-514, Sec. 1122(d)(3), amended last
sentence generally. Prior to amendment, last sentence read as
follows: "The amount actually paid or made available to any
beneficiary under such contract shall be taxable to him in the year
in which so paid or made available under section 72 (relating to
annuities)."
1984 - Subsec. (a)(2)(A). Pub. L. 98-369, Sec. 1001(b)(4),
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. (a)(4)(A)(i). Pub. L. 98-369, Sec. 522(a)(2), substituted
"any portion of the balance to the credit of an employee in an
employee annuity described in paragraph (1) is paid to him," for
"the balance to the credit of an employee in an employee annuity
described in paragraph (1) is paid to him in a qualifying rollover
distribution."
Subsec. (a)(4)(B). Pub. L. 98-369, Sec. 522(d)(9), substituted
"(B) through (F)" for "(B) through (E)".
Subsec. (b)(1). Pub. L. 98-369, Sec. 491(d)(12), struck out "or
409(b)(3)(C)" after "408(d)(3)(A)(iii)".
Subsec. (b)(7)(D). Pub. L. 98-369, Sec. 521(c), added subpar.
(D).
Subsec. (b)(8)(A)(i). Pub. L. 98-369, Sec. 522(a)(3), substituted
"any portion of the balance to the credit of an employee in an
annuity contract described in paragraph (1) is paid to him" for
"the balance to the credit of an employee is paid to him in a
qualifying distribution".
Subsec. (b)(8)(B). Pub. L. 98-369, Sec. 522(d)(10), substituted
provisions relating to special rules for partial distributions for
provisions relating to definition of qualifying distributions.
Subsec. (b)(8)(C). Pub. L. 98-369, Sec. 522(d)(11), substituted
"(F)(i)" for "(D)(v), and (E)(i)".
1983 - Subsec. (b)(3). Pub. L. 98-21 substituted "section 911"
for "sections 105(d) and 911".
Subsec. (b)(8)(C). Pub. L. 97-448 substituted "subparagraphs (B),
(C), (D)(v), and (E)(i) of section 402(a)(5)" for "subparagraphs
(B), (C), and (E)(i) of section 402(a)(5)".
1982 - Subsec. (b)(2)(B). Pub. L. 97-248, Sec. 251(a)(1), (c)(3),
substituted "home health service agencies, and certain churches,
etc." for "and home health service agencies", and "(under section
415 without regard to section 415(c)(8))" for "(under section
415)".
Subsec. (b)(2)(C), (D). Pub. L. 97-248, Sec. 251(a)(2), added
subpars. (C) and (D).
Subsec. (b)(9). Pub. L. 97-248, Sec. 251(b), added par. (9).
1981 - Subsec. (b)(8)(B)(i). Pub. L. 97-34 inserted ", or 1 or
more distributions of accumulated deductible employee contributions
(within the meaning of section 72(o)(5))" after "subsection (a)".
1980 - Subsec. (b). Pub. L. 96-222 substituted in par. (1)
"409(b)(3)(C)" for "409(d)(3)(C)", and in par. (7)(A) "which
satisfies" for "which satisfied".
1978 - Subsec. (a)(4). Pub. L. 95-600, Sec. 157(g)(2), in subpar.
(B) substituted "paragraphs (6) and (7)" for "paragraph (6)".
Pub. L. 95-458, 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). Pub. L. 95-458 struck out par. (5) which related
to special rules concerning time of termination of a profit-sharing
plan and the treatment of the sale of a corporate subsidiary or
assets as payment or distribution on account of termination of a
plan of which an annuity trust was a part.
Subsec. (b)(1). Pub. L. 95-600, Sec. 156(b), inserted provision
relating to application of rules of this subsection to amounts
contributed by an employer for a taxable year.
Subsec. (b)(7)(A). Pub. L. 95-600, Sec. 154(a), struck out "the
amounts are paid to provide a retirement benefit for that employee
and are to be invested in regulated investment company stock to be
held in that custodial account" after "contract for his employee
if", and added cls. (i) and (ii).
Subsec. (b)(8). Pub. L. 95-600, Sec. 156(a), added par. (8).
1976 - Subsec. (a)(2)(A). Pub. L. 94-455, Sec. 1402(b)(2),
provided that "9 months" would be changed to "1 year".
Pub. L. 94-455, Sec. 1402(b) (1)(D), provided that "6 months"
would be changed to "9 months" for taxable years beginning in 1977.
Subsec. (a)(4). Pub. L. 94-455, Sec. 1901(a)(58), reenacted
provisions following subpar. (C) without substantive change.
Pub. L. 94-267, Sec. 1(b)(2), substituted "a payment" for "the
lump-sum distribution".
Subsec. (a)(4)(A). Pub. L. 94-267, Sec. 1(b)(1), restructured
provisions by adding cl. (i) and designating existing provision as
cl. (ii).
Subsec. (a)(5). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
"or his delegate" after "Secretary" wherever appearing.
Pub. L. 94-267, Sec. 1(b)(3), added par. (5).
Subsec. (b)(1)(A)(ii). Pub. L. 94-455, Sec. 1901(b)(8)(A),
substituted "educational organization described in section
170(b)(1)(A)(ii)" for "educational institution (as defined in
section 151(e)(4))".
Subsec. (b)(4)(B). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsec. (b)(7)(C). Pub. L. 94-455, Sec. 1504(a), struck out ",
and which issues only redeemable stock" after "regulated investment
company within the meaning of section 851(a)".
1974 - Subsec. (a)(2). Pub. L. 93-406, Sec. 2005(b)(2),
substituted "a lump sum distribution (as defined in section
4002(e)(4)(A)) is paid to the recipient" for "the total amounts
payable by reason of an employee's death or other separation from
the service, or by reason of the death of an employee after the
employee's separation from the service, are paid to the payee
within one taxable year of the payee" as cl. (iii) of subpar. (A),
substituted "so much of the total taxable amount (as defined in
section 402(e)(4)(D)) of such distribution as is equal to the
product of such total taxable amount multiplied by the fraction
described in section 402(a)(2) shall be treated as a gain from the
sale or exchange of a capital asset held for more than 6 months.
For purposes of this paragraph, in the case of an individual who is
an employee without regard to section 401(c)(1), determination of
whether or not any distribution is a lump sum distribution shall be
made without regard to the requirement that an election be made
under subsection (e)(4)(B) of section 402, but no distribution to
any taxpayer other than an individual, estate, or trust may be
treated as a lump sum distribution under this paragraph" for "then
the amount of such payments, to the extent exceeding the amount
contributed by the employee (determined by applying section 72(f)),
which employee contributions shall be reduced by any amounts
theretofore paid to him which were not includible in gross income,
shall be considered a gain from the sale or exchange of a capital
asset held for more than 6 months. This subparagraph shall not
apply to amounts paid to any payee to the extent such amounts are
attributable to contributions made on behalf of the employee while
he was an employee within the meaning of section 401(c)(1)"
following cl. (iii) of subpar. (A), substituted provisions setting
out a cross reference to section 402(e) for provisions defining
"total amounts" as subpar. (B), and struck out subpar. (C) setting
out limitations on capital gains treatment.
Subsec. (a)(4). Pub. L. 93-406, Sec. 2002(g)(6), added par. (4).
Subsec. (b)(2). Pub. L. 93-406, Sec. 2004(c)(4), designated
existing provisions as subpar. (A) and added subpar. (B).
Subsec. (b)(7). Pub. L. 93-406, Sec. 1022(e), added par. (7).
1969 - Subsec. (a)(2)(C). Pub. L. 91-172, Sec. 515(a)(2), added
subpar. (C).
Subsec. (c). Pub. L. 91-172, Sec. 321(b)(2), consolidated
provisions of subsec. (c) providing for taxability of beneficiary
under a nonqualified annuity, the employees gross income to include
amount contributed by employer for annuity contract in the year in
which amount is contributed, the amount to be included as provided
in section 72 of this title and of subsec. (d) providing for
taxability of beneficiary under certain forfeitable contracts
purchased by exempt organizations, including farmers' cooperatives,
the gross income to include amount contributed by employer after
Dec. 31, 1957, in the year of change from forfeitable to
nonforfeitable rights, the new provisions including premiums paid
by an employer in accordance with section 83, except that value of
the contract shall be substituted for fair market value of the
property for purposes of applying such section 83, such provision
not to be applicable to that portion of premiums paid which is
excluded from gross income under subsec. (b) of this section.
Subsec. (d). Pub. L. 91-172, Sec. 321(b)(2), struck out subsec.
(d) providing for taxability of beneficiary under certain
forfeitable contracts purchased by exempt organizations, including
farmers' cooperatives, gross income of the employee to include
(amount contributed by employer after Dec. 31, 1957), in year of
change from forfeitable to nonforfeitable rights. See subsec. (c)
of this section.
1964 - Subsecs. (a)(1), (b)(1), (c). Pub. L. 88-272, Sec.
232(e)(4)-(6), struck out "except that section 72(e)(3) shall not
apply" after "(relating to annuities)".
1962 - Subsec. (a)(2)(A). Pub. L. 87-792, Sec. 4(d)(1), (2),
substituted "described in paragraph (1)" for "which meets the
requirements of section 401(a)(3), (4), (5), and (6)" in cl. (i),
and inserted sentence at end thereof providing that this
subparagraph shall not apply to amounts paid to any payee to the
extent such amounts are attributable to contributions made on
behalf of the employee while he was an employee within the meaning
of section 401(c)(1).
Subsec. (a)(3). Pub. L. 87-792, Sec. 4(d)(3), added par. (3).
1961 - Subsec. (b). Pub. L. 87-370, Sec. 3(a)(3), inserted "or
public school" in heading.
Subsec. (b)(1)(A). Pub. L. 87-370, Sec. 3(a)(1), included annuity
contracts purchased for an employee, other than one described in
clause (i) of this subpar., who performs services for an
educational institution, as defined in section 151(e)(4) of this
title, by an employer which is a State, a political subdivision of
a State, or an agency or instrumentality of either.
Subsec. (b)(3). Pub. L. 87-370, Sec. (3)(a)(2), substituted "the
employer described in paragraph (1)(A)" for "the employer described
in section 501(c)(3) and exempt from tax under section 501(a)".
1958 - Subsec. (a)(1). Pub. L. 85-866, Sec. 23(b), substituted
"which meets the requirements of section 404(a)(2) (whether or not
the employer deducts the amounts paid for the contract under such
section)," for "with respect to which the employer's contribution
is deductible under section 404(a)(2), or if an annuity contract is
purchased for an employee by an employer described in section
501(c)(3) which is exempt from tax under section 501(a),".
Subsecs. (b) to (d). Pub. L. 85-866, Sec. 23(a), added subsec.
(b), redesignated former subsec. (b) as (c), and added subsec. (d).
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by section 404(e) of Pub. L. 108-311 effective as if
included in the provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001, Pub. L. 107-16, to which such amendment
relates, see section 404(f) of Pub. L. 108-311, set out as a note
under section 45A of this title.
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107-147 effective as if included in the
provisions of the Economic Growth and Tax Relief Reconciliation Act
of 2001, Pub. L. 107-16, to which such amendment relates, see
section 411(x) of Pub. L. 107-147, set out as a note under section
25B of this title.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by section 632(a)(2) of Pub. L. 107-16 applicable to
years beginning after Dec. 31, 2001, see section 632(a)(4) of Pub.
L. 107-16, set out as a note under section 72 of this title.
Amendment by section 641(b)(1), (e)(7) of Pub. L. 107-16
applicable to distributions after Dec. 31, 2001, see section
641(f)(1) of Pub. L. 107-16, set out as a note under section 402 of
this title.
Amendment by section 642(b)(1) of Pub. L. 107-16 applicable to
distributions after Dec. 31, 2001, see section 642(c) of Pub. L.
107-16, set out as a note under section 408 of this title.
Amendment by section 646(a)(2) of Pub. L. 107-16 applicable to
distributions after Dec. 31, 2001, see section 646(b) of Pub. L.
107-16, set out as a note under section 401 of this title.
Pub. L. 107-16, title VI, Sec. 647(c), June 7, 2001, 115 Stat.
127, provided that: "The amendments made by this section [amending
this section and section 457 of this title] shall apply to trustee-
to-trustee transfers after December 31, 2001."
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 2000 AMENDMENT
Amendment by Pub. L. 106-554 effective as if included in the
provisions of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to
which such amendment relates, see section 1(a)(7) [title III, Sec.
314(g)] of Pub. L. 106-554, set out as a note under section 56 of
this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by section 6005 of Pub. L. 105-206 applicable to
distributions after Dec. 31, 1998, see section 6005(c)(2)(C) of
Pub. L. 105-206, set out as a note under section 402 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1504(a)(2) of Pub. L. 105-34 provided that: "The
amendment made by this subsection [amending this section] shall
apply to years beginning after December 31, 1997."
Amendment by section 1505(c) of Pub. L. 105-34 applicable to
taxable years beginning on or after Aug. 5, 1997, with certain
governmental plans treated as satisfying requirements for all
taxable years beginning before Aug. 5, 1997, see section 1505(d) of
Pub. L. 105-34, set out as a note under section 401 of this title.
Amendment by section 1601(d)(6)(B) of Pub. L. 105-34 effective as
if included in the provisions of the Small Business Job Protection
Act of 1996, Pub. L. 104-188, to which it relates, see section
1601(j) of Pub. L. 105-34, set out as a note under section 23 of
this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1450(c)(2) of Pub. L. 104-188 provided that: "The
amendment made by this subsection [amending this section] shall
apply to years beginning after December 31, 1995, except a contract
shall not be required to meet any change in any requirement by
reason of such amendment before the 90th day after the date of the
enactment of this Act [Aug. 20, 1996]."
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by section 521(b)(12), (13) of Pub. L. 102-318
applicable to distributions after Dec. 31, 1992, see section 521(e)
of Pub. L. 102-318, set out as a note under section 402 of this
title.
Amendment by section 522(a)(3), (c)(2), (3) of Pub. L. 102-318
applicable, except as otherwise provided, to distributions after
Dec. 31, 1992, see section 522(d) of Pub. L. 102-318, set out as a
note under section 401 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 effective, except as otherwise
provided, as if included in the provision of the Revenue
Reconciliation Act of 1989, Pub. L. 101-239, title VII, to which
such amendment relates, see section 11701(n) of Pub. L. 101-508,
set out as a note under section 42 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1011(c)(7)(B) of Pub. L. 100-647 applicable
to plan years beginning after Dec. 31, 1987, with exception in case
of a plan described in section 1105(c)(2) of Pub. L. 99-514, see
section 1011(c)(7)(E) of Pub. L. 100-647, set out as a note under
section 401 of this title.
Amendment by section 1011(c)(12), (m)(1), (2) 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.
Section 6052(a)(2) of Pub. L. 100-647 provided that: "The
amendment made by paragraph (1) [amending this section] shall take
effect as if included in the amendment made by section 1120(b) of
the Reform Act [Pub. L. 99-514]."
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1120(c) of Pub. L. 99-514, as amended by Pub. L. 100-647,
title I, Sec. 1011(m)(3), Nov. 10, 1988, 102 Stat. 3471, provided
that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section] shall apply
to years beginning after December 31, 1988.
"(2) 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 amendments made by this section shall not
apply to plan years beginning before the earlier of -
"(A) January 1, 1991, or
"(B) the later of -
"(i) January 1, 1989, or
"(ii) the date on which the last of such collective
bargaining agreements terminates (determined without regard to
any extension thereof after February 28, 1986)."
Amendment by section 1122(b)(1)(B), (d) of Pub. L. 99-514
applicable, except as otherwise provided, to amounts distributed
after Dec. 31, 1986, in taxable years ending after such date, see
section 1122(h) of Pub. L. 99-514, set out as a note under section
402 of this title.
Amendment by section 1123(c) of Pub. L. 99-514 applicable to
years beginning after Dec. 31, 1988, but only with respect to
distributions from contracts described in subsec. (b) of this
section which are attributable to assets other than assets held as
of the close of the last year beginning before Jan. 1, 1989, with
certain exceptions and transition rule, see section 1123(e) of Pub.
L. 99-514, as amended, set out as a note under section 72 of this
title.
Section 1852(a)(3)(C) of Pub. L. 99-514 provided that: "The
amendments made by this paragraph [amending this section] shall
apply to benefits accruing after December 31, 1986, in taxable
years ending after such date."
Amendment by section 1852(a)(5)(B), (b)(10) 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.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 491(d)(12) of Pub. L. 98-369 applicable to
obligations issued after Dec. 31, 1983, see section 491(f)(1) of
Pub. L. 98-369, set out as a note under section 62 of this title.
Amendment by section 521(c) of Pub. L. 98-369 applicable to years
beginning after Dec. 31, 1984, see section 521(e) of Pub. L. 98-
369, set out as a note under section 401 of this title.
Amendment by section 522 of Pub. L. 98-369 applicable to
distributions made after July 18, 1984, in taxable years ending
after that date, see section 522(e) of Pub. L. 98-369, set out as a
note under section 402 of this title.
Amendment by section 1001(b)(4) of Pub. L. 98-369 applicable to
property acquired after June 22, 1984, and before Jan. 1, 1988, see
section 1001(e) of Pub. L. 98-369, set out as a note under section
166 of this title.
EFFECTIVE DATE OF 1983 AMENDMENTS
Amendment by Pub. L. 98-21 applicable to taxable years beginning
after Dec. 31, 1983, except that if an individual's annuity
starting date was deferred under section 105(d)(6) of this title as
in effect on the day before Apr. 20, 1983, such deferral shall end
on the first day of such individual's first taxable year beginning
after Dec. 31, 1983, see section 122(d) of Pub. L. 98-21, set out
as a note under section 22 of this title.
Amendment by Pub. L. 97-448 effective, except as otherwise
provided, as if it had been included in the provision of the
Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such
amendment relates, see section 109 of Pub. L. 97-448, set out as a
note under section 1 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Section 251(e) of Pub. L. 97-248, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) In general. - Except as provided in this subsection, the
amendments made by this section [amending this section and section
415 of this title, and enacting a provision set out as a note
below] shall apply to taxable years beginning after December 31,
1981.
"(2) Retirement income accounts. - The amendments made by
subsection (b) [amending this section] shall apply to taxable years
beginning after December 31, 1974.
"(3) Section 415 amendments. - The amendments made by subsection
(c) [amending section 415 of this title] shall apply to years
beginning after December 31, 1981.
"(4) Correction period. - The amendment made by subsection (d)
[enacting provisions set out below] shall take effect on July 1,
1982.
"(5) Special rule for existing defined benefit arrangements. -
Any defined benefit arrangement which is established by a church or
a convention or association of churches (including an organization
described in section 414(e)(3)(B)(ii) of the Internal Revenue Code
of 1986 [formerly I.R.C. 1954]) and which is in effect on the date
of the enactment of this Act [Sept. 3, 1982] shall not be treated
as failing to meet the requirements of section 403(b)(2) of such
Code merely because it is a defined benefit arrangement."
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to taxable years beginning
after Dec. 31, 1981, see section 311(i)(1) of Pub. L. 97-34, set
out as a note under section 219 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-222 effective, except as otherwise
provided, as if it had been included in the provisions of the
Revenue Act of 1978, Pub. L. 95-600, to which such amendment
relates, see section 201 of Pub. L. 96-222, set out as a note under
section 32 of this title.
EFFECTIVE DATE OF 1978 AMENDMENTS
Section 154(b) of Pub. L. 95-600 provided that: "The amendment
made by this section [amending this section] shall apply to taxable
years beginning after December 31, 1978."
Section 156(d) of Pub. L. 95-600, as amended by Pub. L. 96-222,
title I, Sec. 101(a)(13)(A), Apr. 1, 1980, 94 Stat. 204, provided
that: "The amendments made by this section [amending this section
and sections 219, 220, 408, 409, 2039, and 4973] shall apply to
distributions or transfers made after December 31, 1977, in taxable
years beginning after such date."
Amendment by section 157(g)(2) of Pub. L. 95-600 applicable to
lump-sum distributions completed after Dec. 31, 1978, in taxable
years ending after such date, see section 157(g)(4) of Pub. L. 95-
600, set out as a note under section 402 of this title.
Amendment by Pub. L. 95-458 applicable with respect to taxable
years beginning after Dec. 31, 1974, see section 4(d) of Pub. L. 95-
458, set out as a note under section 402 of this title.
EFFECTIVE DATE OF 1976 AMENDMENTS
Section 1402(b)(1) of Pub. L. 94-455 provided that the amendment
made by that section is effective with respect to taxable years
beginning in 1977.
Section 1402(b)(2) of Pub. L. 94-455 provided that the amendment
made by that section is effective with respect to taxable years
beginning after Dec. 31, 1977.
Section 1504(b) of Pub. L. 94-455 provided that: "The amendment
made by this section [amending this section] shall apply to taxable
years beginning after December 31, 1975."
Amendment by section 1901(a)(58), (b)(8)(A) of Pub. L. 94-455
effective for taxable years beginning after Dec. 31, 1976, see
section 1901(d) of Pub. L. 94-455, set out as a note under section
2 of this title.
Amendment by Pub. L. 94-267 applicable with respect to payments
made to an employee on or after July 4, 1974, see section 1(e) of
Pub. L. 94-267, set out as a note under section 401 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Section 1022(e) of Pub. L. 93-406 provided that the amendment
made by that section is effective Jan. 1, 1974.
Amendment by section 2002(g)(6) of Pub. L. 93-406 applicable on
and after Sept. 2, 1974, with respect to contributions to an
employees' trust described in section 401(a) which is exempt from
tax under section 501(a) or an annuity plan described in section
403(a), see section 2002(i)(3) of Pub. L. 93-406, set out as a note
under section 402 of this title.
Amendment by section 2004(c)(4) of Pub. L. 93-406 applicable to
years beginning after Dec. 31, 1975, see section 2004(d) of Pub. L.
93-406, set out as an Effective Date; Transition Provisions note
under section 415 of this title.
Amendment by section 2005(b)(2) of Pub. L. 93-406 applicable only
with respect to distributions or payments made after Dec. 31, 1973,
in taxable years beginning after Dec. 31, 1973, see section 2005(d)
of Pub. L. 93-406, set out as a note under section 402 of this
title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 321(b)(2) of Pub. L. 91-172 applicable with
respect to contributions made and premiums paid after Aug. 1, 1969,
see section 321(d) of Pub. L. 91-172, set out as an Effective Date
note under section 83 of this title.
Amendment by section 515(a)(2) of Pub. L. 91-172 applicable to
taxable years ending after Dec. 31, 1969, see section 515(d) of
Pub. L. 91-172, set out as a note under section 402 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272 applicable to taxable years beginning
after Dec. 31, 1963, see section 232(g) of Pub. L. 88-272, set out
as a note under section 5 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by Pub. L. 87-792 applicable to taxable years beginning
after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a
note under section 22 of this title.
EFFECTIVE DATE OF 1961 AMENDMENT
Section 3(b) of Pub. L. 87-370 provided that: "The amendments
made by subsection (a) [amending this section] shall apply with
respect to taxable years beginning after December 31, 1957."
EFFECTIVE DATES OF 1958 AMENDMENT
Section 23(g) of Pub. L. 85-866 provided that: "The amendments
made by subsections (a), (b), (c), and (d) [amending this section
and section 101 of this title] shall apply with respect to taxable
years beginning after December 31, 1957. The amendments made by
subsection (e) [amending section 2039 of this title] shall apply
with respect to estates of decedents dying after December 31, 1957.
The amendments made by subsection (f) [amending section 2517 of
this title] shall apply with respect to calendar years after 1957."
REGULATIONS
Secretary of the Treasury or his delegate to issue before Feb. 1,
1988, final regulations to carry out amendments made by section
1120 of Pub. L. 99-514, see section 1141 of Pub. L. 99-514, set out
as a note under section 401 of this title.
ELECTION TO MODIFY SECTION 403(B) EXCLUSION ALLOWANCE TO CONFORM TO
SECTION 415 MODIFICATION
Pub. L. 107-16, title VI, Sec. 632(b)(3), June 7, 2001, 115 Stat.
115, provided that: "In the case of taxable years beginning after
December 31, 1999, and before January 1, 2002, a plan may disregard
the requirement in the regulations regarding the exclusion
allowance under section 403(b)(2) of the Internal Revenue Code of
1986 that contributions to a defined benefit pension plan be
treated as previously excluded amounts for purposes of the
exclusion allowance."
MODIFICATIONS OF SUBSECTION (B) OF THIS SECTION
Section 1601(d)(4) of Pub. L. 105-34, as amended by Pub. L. 105-
206, title VI, Sec. 6016(a)(2), July 22, 1998, 112 Stat. 822,
provided that:
"(A) Paragraphs (7)(A)(ii) and (11) of section 403(b) of the
Internal Revenue Code of 1986 shall not apply with respect to a
distribution from a contract described in section 1450(b)(1) of
such Act [Pub. L. 104-188, set out below] to the extent that such
distribution is not includible in income by reason of -
"(i) in the case of distributions before January 1, 1998,
section 403(b)(8) or (b)(10) of such Code (determined after the
application of section 1450(b)(2) of such Act [Pub. L. 104-188,
set out below]), and
"(ii) in the case of distributions on and after such date, such
section 403(b)(10).
"(B) This paragraph shall apply as if included in section 1450 of
the Small Business Job Protection Act of 1996 [Pub. L. 104-188, set
out below]."
Section 1450(a), (b) of Pub. L. 104-188 provided that:
"(a) Multiple Salary Reduction Agreements Permitted. -
"(1) General rule. - For purposes of section 403(b) of the
Internal Revenue Code of 1986, the frequency that an employee is
permitted to enter into a salary reduction agreement, the salary
to which such an agreement may apply, and the ability to revoke
such an agreement shall be determined under the rules applicable
to cash or deferred elections under section 401(k) of such Code.
"(2) Constructive receipt. - [Amended section 402 of this
title.]
"(3) Effective date. - This subsection shall apply to taxable
years beginning after December 31, 1995.
"(b) Treatment of Indian Tribal Governments. -
"(1) In general. - In the case of any contract purchased in a
plan year beginning before January 1, 1995, section 403(b) of the
Internal Revenue Code of 1986 shall be applied as if any
reference to an employer described in section 501(c)(3) of the
Internal Revenue Code of 1986 which is exempt from tax under
section 501 of such Code included a reference to an employer
which is an Indian tribal government (as defined by section
7701(a)(40) of such Code), a subdivision of an Indian tribal
government (determined in accordance with section 7871(d) of such
Code), an agency or instrumentality of an Indian tribal
government or subdivision thereof, or a corporation chartered
under Federal, State, or tribal law which is owned in whole or in
part by any of the foregoing.
"(2) Rollovers. - Solely for purposes of applying section
403(b)(8) of such Code to a contract to which paragraph (1)
applies, a qualified cash or deferred arrangement under section
401(k) of such Code shall be treated as if it were a plan or
contract described in clause (ii) of section 403(b)(8)(A) of such
Code."
SAMPLING TO DETERMINE WHETHER PLAN MEETS SUBSECTION (B)(12)
REQUIREMENTS
Section 6052(b) of Pub. L. 100-647 provided that: "In the case of
plan years beginning in 1989, 1990, or 1991, determinations as to
whether a plan meets the requirements of section 403(b)(12) of the
1986 Code may be made on the basis of a statistically valid random
sample. The preceding sentence shall apply only if -
"(1) the sampling is conducted by an independent person in a
manner not inconsistent with regulations prescribed by the
Secretary, and
"(2) the statistical method and sample size result in a 95
percent probability that the results will have a margin of error
not greater than 3 percent."
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998
For provisions directing that if any amendments made by subtitle
D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an
amendment to any plan or annuity contract, such amendment shall not
be required to be made before the first day of the first plan year
beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-
188, set out as a note under section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994
For provisions directing that if any amendments made by subtitle
B [Secs. 521-523] of title V of Pub. L. 102-318 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1994, see section 523 of Pub. L. 102-318, set out as a note under
section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
CORRECTION PERIOD FOR CHURCH PLANS
Section 251(d) of Pub. L. 97-248, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "A church
plan (within the meaning of section 414(e) of the Internal Revenue
Code of 1986 [formerly I.R.C. 1954]) shall not be treated as not
meeting the requirements of section 401 or 403 of such Code if -
"(1) by reason of any change in any law, regulation, ruling, or
otherwise such plan is required to be amended to meet such
requirements, and
"(2) such plan is so amended at the next earliest church
convention or such other time as the Secretary of the Treasury or
his delegate may prescribe."
TRANSITIONAL RULE FOR MAKING SECTION 403(B)(8) ROLLOVER IN THE CASE
OF PAYMENTS DURING 1978
Section 101(a)(13)(B) of Pub. L. 96-222, as amended by Pub. L. 99-
514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "In the
case of any payment made during 1978 in a qualifying distribution
described in section 403(b)(8) of the Internal Revenue Code of 1986
[formerly I.R.C. 1954], the applicable period specified in section
402(a)(5)(C) of such Code shall not expire before the close of
December 31, 1980."
TRANSITIONAL RULE IN CASE OF ROLLOVER CONTRIBUTIONS TO EMPLOYEE
TRUSTS OR ANNUITIES
Applicable period specified in section 402(a)(5)(C) of this title
shall not expire before close of Dec. 31, 1980 in case of any
payment described in subsec. (a)(4)(A) of this section or section
402(a)(5)(A) of this title, see section 157(h)(3)(B) of Pub. L. 95-
600, set out as a note under section 402 of this title.