Notes on 26 U.S.C. § 404 : US Code - Notes

Search Notes on 26 U.S.C. § 404 : US Code - Notes

(Aug. 16, 1954, ch. 736, 68A Stat. 138; Pub. L. 85-866, title I,
Sec. 24, Sept. 2, 1958, 72 Stat. 1623; Pub. L. 87-792, Sec. 3, Oct.
10, 1962, 76 Stat. 819; Pub. L. 87-863, Sec. 2(b), Oct. 23, 1962,
76 Stat. 1141; Pub. L. 89-809, title II, Sec. 204(a), (b)(2), (3),
Nov. 13, 1966, 80 Stat. 1577; Pub. L. 91-172, title III, Sec.
321(b)(3), Dec. 30, 1969, 83 Stat. 591; Pub. L. 93-406, title II,
Secs. 1013(c), 1016(a)(3), 2001(a), (g)(2)(E), (F), 2004(b),
(c)(1), 2007(a), (b), title IV, Sec. 4401(a), formerly Sec.
4081(a), Sept. 2, 1974, 88 Stat. 921, 929, 952, 957, 986, 993, 994,
1033, renumbered Sec. 4401(a), Pub. L. 96-364, title I, Sec.
108(a), Sept. 26, 1980, 94 Stat. 1267; Pub. L. 94-267, Sec.
1(c)(3), Apr. 15, 1976, 90 Stat. 367; Pub. L. 94-455, title XV,
Sec. 1502(a)(2), title XIX, Secs. 1901(a)(59), 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1737, 1774, 1834; Pub. L. 95-600, title I, Secs.
133(a), (b), 141(f)(9), 152(f), Nov. 6, 1978, 92 Stat. 2783, 2795,
2799; Pub. L. 96-222, title I, Sec. 101(a)(10)(E), (J)(ii), Apr. 1,
1980, 94 Stat. 202, 204; Pub. L. 96-364, title II, Sec. 205, Sept.
26, 1980, 94 Stat. 1287; Pub. L. 97-34, title III, Secs. 312(a),
331(b), 333(a), Aug. 13, 1981, 95 Stat. 283, 293, 296; Pub. L. 97-
248, title II, Secs. 235(f), 237(e)(2), 238(a), 253(b), Sept. 3,
1982, 96 Stat. 507, 512, 533; Pub. L. 98-369, div. A, title IV,
Sec. 474(r)(14), title V, Secs. 512(a), 542(a), title VII, Sec.
713(b)(3), (d)(4)(A), (5), (6), (9), July 18, 1984, 98 Stat. 842,
862, 890, 957, 958; Pub. L. 99-272, title XI, Sec. 11011(c)(1),
(2), Apr. 7, 1986, 100 Stat. 257, 258; Pub. L. 99-514, title XI,
Secs. 1106(d)(2), 1108(c), 1112(d)(2), 1131(a), (b), 1136(b),
1171(b)(6), 1173(a), title XVIII, Secs. 1848(c), 1851(b)(2)(A)-
(C)(ii), 1854(b)(2)-(5), 1875(c)(7), Oct. 22, 1986, 100 Stat.
2424, 2433, 2445, 2476, 2477, 2486, 2513, 2515, 2857, 2863, 2878,
2895; Pub. L. 100-203, title IX, Sec. 9307(c), (d), title X, Sec.
10201(b)(2), (3), Dec. 22, 1987, 101 Stat. 1330-357, 1330-387; Pub.
L. 100-647, title I, Secs. 1011(d)(1), (4), (f)(6), 1011A(e)(4),
1011B(h)(3), (6), 1018(t)(4)(A), (5), title II, Sec. 2005(b), Nov.
10, 1988, 102 Stat. 3459, 3463, 3478, 3491, 3492, 3588, 3589, 3610;
Pub. L. 101-239, title VII, Secs. 7302(a), 7841(b)(1), Dec. 19,
1989, 103 Stat. 2351, 2428; Pub. L. 101-508, title XI, Sec.
11812(b)(7), Nov. 5, 1990, 104 Stat. 1388-535; Pub. L. 102-318,
title V, Sec. 522(a)(2), July 3, 1992, 106 Stat. 314; Pub. L. 103-
66, title XIII, Sec. 13212(c)(1), Aug. 10, 1993, 107 Stat. 472;
Pub. L. 103-465, title VII, Sec. 751(a)(11), Dec. 8, 1994, 108
Stat. 5022; Pub. L. 104-188, title I, Secs. 1316(d)(1), (2),
1421(b)(2), 1431(b)(3), 1461(b), 1704(q)(1), (t)(76), Aug. 20,
1996, 110 Stat. 1786, 1795, 1803, 1823, 1887, 1891; Pub. L. 105-34,
title XV, Sec. 1530(c)(2), title XVI, Sec. 1601(d)(2)(C), Aug. 5,
1997, 111 Stat. 1078, 1088; Pub. L. 105-206, title VI, Sec.
6015(d), title VII, Sec. 7001(a), July 22, 1998, 112 Stat. 821,
827; Pub. L. 107-16, title VI, Secs. 611(c)(1), 614(a), 616(a)-
(b)(2)(A), 632(a)(3)(B), 652(a), 662(a), (b), June 7, 2001, 115
Stat. 97, 102, 103, 114, 129, 142; Pub. L. 107-147, title IV, Sec.
411(l)(1), (2), (4), (s), (w), Mar. 9, 2002, 116 Stat. 47, 51, 52;
Pub. L. 108-218, title I, Sec. 101(b)(5), Apr. 10, 2004, 118 Stat.
598.)
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.
REFERENCES IN TEXT
The Social Security Act, referred to in subsec. (a)(1)(C), is act
Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the
Social Security Act is classified generally to subchapter II (Sec.
401 et seq.) of Title 42, The Public Health and Welfare. For
complete classification of this Act to the Code, see section 1305
of Title 42 and Tables.
Section 401(a)(17), referred to in subsec. (a)(2), was repealed
by Pub. L. 97-248, title II, Sec. 237(b), Sept. 3, 1982, 96 Stat.
511. A new section 401(a)(17) was added by Pub. L. 99-514, title
XI, Sec. 1106(d)(1), Oct. 22, 1986, 100 Stat. 2423.
The date of the enactment of the Tax Reform Act of 1986, referred
to in subsec. (a)(3)(A)(v)(II), is the date of enactment of Pub. L.
99-514, which was approved Oct. 22, 1986.
The Employee Retirement Income Security Act of 1974, referred to
in subsecs. (a)(1)(D)(iv), (g)(1), (3)(B), (C), (4), is Pub. L. 93-
406, Sept. 2, 1974, 88 Stat. 829, as amended, which is classified
principally to chapter 18 (Sec. 1001 et seq.) of Title 29, Labor.
Part 1 of subtitle E of title IV of the Employee Retirement Income
Security Act of 1974 is classified generally to part 1 (Sec. 1381
et seq.) of subtitle E of subchapter III of chapter 18 of Title 29.
Sections 4022, 4041, 4062, 4063, and 4064 of the Employee
Retirement Income Security Act of 1974 are classified to sections
1322, 1341, 1362, 1363, and 1364, respectively, of Title 29. For
complete classification of this Act to the Code, see Short Title
note set out under section 1001 of Title 29 and Tables.
The date of the enactment of the Retirement Protection Act of
1994, referred to in subsec. (g)(4), is the date of enactment of
subtitle F (Secs. 750-781) of title VII of Pub. L. 103-465, which
was approved Dec. 8, 1994.
AMENDMENTS
2004 - Subsec. (a)(1)(F). Pub. L. 108-218 added subpar. (F).
2002 - Subsec. (a)(1)(D)(iv). Pub. L. 107-147, Sec. 411(s),
substituted "Special rule for terminating plans" for "Plans
maintained by professional service employers" in heading.
Subsec. (a)(7)(C). Pub. L. 107-147, Sec. 411(l)(4), reenacted
heading without change and amended text generally. Prior to
amendment, text read as follows: "This paragraph shall not have the
effect of reducing the amount otherwise deductible under paragraphs
(1), (2), and (3), if no employee is a beneficiary under more than
1 trust or under a trust and an annuity plan."
Subsec. (a)(12). Pub. L. 107-147, Sec. 411(l)(1), substituted
"(9) and subsection (h)(1)(C)," for "(9),".
Subsec. (k)(1). Pub. L. 107-147, Sec. 411(w)(1)(A), struck out
"during the taxable year" after "such corporation".
Subsec. (k)(2)(B). Pub. L. 107-147, Sec. 411(w)(1)(B),
substituted "(A)(iv)" for "(A)(iii)".
Subsec. (k)(4)(B), (C). Pub. L. 107-147, Sec. 411(w)(1)(C), (D),
substituted "clause (iv)" for "clause (iii)" in subpar. (B), added
a new subpar. (B), and redesignated former subpar. (B) as (C).
Subsec. (k)(7). Pub. L. 107-147, Sec. 411(w)(2), added par. (7).
Subsec. (n). Pub. L. 107-147, Sec. 411(l)(2), substituted
"subsection (a) or paragraph (1)(C) of subsection (h)" for
"subsection (a),".
2001 - Subsec. (a)(1)(A). Pub. L. 107-16, Secs. 616(a)(2)(B)(i),
901, temporarily inserted "(other than a trust to which paragraph
(3) applies)" after "pension trust" in introductory provisions. See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (a)(1)(D). Pub. L. 107-16, Secs. 652(a), 901, temporarily
reenacted heading without change and amended text generally. Prior
to amendment, text read as follows: "In the case of any defined
benefit plan (other than a multiemployer plan) which has more than
100 participants for the plan year, except as provided in
regulations, the maximum amount deductible under the limitations of
this paragraph shall not be less than the unfunded current
liability determined under section 412(l). For purposes of
determining whether a plan has more than 100 participants, all
defined benefit plans maintained by the same employer (or any
member of such employer's controlled group (within the meaning of
section 412(l)(8)(C))) shall be treated as 1 plan, but only
employees of such member or employer shall be taken into account."
See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (a)(3)(A)(i)(I). Pub. L. 107-16, Secs. 616(a)(1)(A), 901,
temporarily substituted "25 percent" for "15 percent". See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (a)(3)(A)(v). Pub. L. 107-16, Secs. 616(a)(2)(A), 901,
temporarily amended cl. (v) generally, substituting present
provisions for provisions which directed that the limitation of cl.
(i) for any taxable year would be increased by the unused pre-87
limitation carryforwards and defined "unused pre-87 limitation
carryforwards". See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (a)(3)(B). Pub. L. 107-16, Secs. 616(b)(2)(A), 901,
temporarily struck out at end "The term 'compensation otherwise
paid or accrued during the taxable year to all employees' shall
include any amount with respect to which an election under section
415(c)(3)(C) is in effect, but only to the extent that any
contribution with respect to such amount is nonforfeitable." See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (a)(10)(B). Pub. L. 107-16, Secs. 632(a)(3)(B), 901,
temporarily struck out ", the exclusion allowance under section
403(b)(2)," after "deferrals under section 402(g)". See Effective
and Termination Dates of 2001 Amendment note below.
Subsec. (a)(12). Pub. L. 107-16, Secs. 616(b)(1), 901,
temporarily added par. (12). See Effective and Termination Dates of
2001 Amendment note below.
Subsec. (h)(1)(C). Pub. L. 107-16, Secs. 616(a)(1)(B), 901,
temporarily substituted "25 percent" for "15 percent" in two
places. See Effective and Termination Dates of 2001 Amendment note
below.
Subsec. (h)(2). Pub. L. 107-16, Secs. 616(a)(2)(B)(ii), (iii),
901, temporarily substituted "certain trusts" for "stock bonus and
profit-sharing trust" in heading and "trust subject to subsection
(a)(3)(A)" for "stock bonus or profit-sharing trust" in text. See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (k)(2)(A)(iii), (iv). Pub. L. 107-16, Secs. 662(a), 901,
temporarily added cl. (iii) and redesignated former cl. (iii) as
(iv). See Effective and Termination Dates of 2001 Amendment note
below.
Subsec. (k)(5)(A). Pub. L. 107-16, Secs. 662(b), 901, temporarily
inserted "avoidance or" before "evasion". See Effective and
Termination Dates of 2001 Amendment note below.
Subsec. (l). Pub. L. 107-16, Secs. 611(c)(1), 901, temporarily
substituted "$200,000" for "$150,000" in two places. See Effective
and Termination Dates of 2001 Amendment note below.
Subsec. (n). Pub. L. 107-16, Secs. 614(a), 901, temporarily added
subsec. (n). See Effective and Termination Dates of 2001 Amendment
note below.
1998 - Subsec. (a)(9)(C), (D). Pub. L. 105-206, Sec. 6015(d),
redesignated subpar. (C), relating to qualified gratuitous
transfers, as (D) and inserted heading.
Subsec. (a)(11). Pub. L. 105-206, Sec. 7001(a), added par. (11).
1997 - Subsec. (a)(3)(A)(i). Pub. L. 105-34, Sec.
1601(d)(2)(C)(i), substituted "not in excess of the greater of - "
and subcls. (I) and (II) for "not in excess of 15 percent of the
compensation otherwise paid or accrued during the taxable year to
the beneficiaries under the stock bonus or profit-sharing plan."
Subsec. (a)(3)(A)(ii). Pub. L. 105-34, Sec. 1601(d)(2)(C)(ii),
substituted "the amount described in subclause (I) or (II) of
clause (i), whichever is greater, with respect to such taxable
year." for "15 percent of the compensation otherwise paid or
accrued during such taxable year to the beneficiaries under the
plan."
Subsec. (a)(9)(C). Pub. L. 105-34, Sec. 1530(c)(2), added subpar.
(C) relating to qualified gratuitous transfers.
1996 - Subsec. (a)(2). Pub. L. 104-188, Sec. 1704(t)(76), struck
out "(18)," after "(17),".
Subsec. (a)(9)(C). Pub. L. 104-188, Sec. 1316(d)(1), added
subpar. (C) relating to S corporations.
Subsec. (a)(10). Pub. L. 104-188, Sec. 1461(b), added par. (10).
Subsec. (j)(1). Pub. L. 104-188, Sec. 1704(q)(1), substituted
"(9)" for "(10)" in introductory provisions.
Subsec. (k)(1). Pub. L. 104-188, Sec. 1316(d)(2), substituted "a
C corporation" for "a corporation".
Subsec. (l). Pub. L. 104-188, Sec. 1431(b)(3), struck out at end
"In determining the compensation of an employee, the rules of
section 414(q)(6) shall apply, except that in applying such rules,
the term 'family' shall include only the spouse of the employee and
any lineal descendants of the employee who have not attained age 19
before the close of the year."
Subsec. (m). Pub. L. 104-188, Sec. 1421(b)(2), added subsec. (m).
1994 - Subsec. (g)(4). Pub. L. 103-465 substituted "the
Retirement Protection Act of 1994" for "the Single-Employer Pension
Plan Amendments Act of 1986".
1993 - Subsec. (l). Pub. L. 103-66 substituted "$150,000" for
"$200,000" in first sentence and "The Secretary shall adjust the
$150,000 amount at the same time, and by the same amount, as any
adjustment under section 401(a)(17)(B)." for "The Secretary shall
adjust the $200,000 amount at the same time and in the same manner
as under section 415(d)."
1992 - Subsec. (a)(2). Pub. L. 102-318 substituted "(27), and
(31)" for "and (27)".
1990 - Subsec. (a)(1)(C). Pub. L. 101-508 substituted "section
168(i)(10)(C)" for "section 167(l)(3)(A)(iii)".
1989 - Subsec. (g)(1). Pub. L. 101-239, Sec. 7841(b)(1), inserted
"4041(b)," after "under section".
Subsec. (k). Pub. L. 101-239, Sec. 7302(a), amended subsec. (k)
generally, substituting "Deduction for dividends paid on certain
employer securities" for "Dividends paid deductions" in heading and
pars. (1) to (6) for former pars. (1) and (2) and concluding
provisions.
1988 - Subsec. (a)(1)(D). Pub. L. 100-647, Sec. 2005(b)(3),
struck out "(without regard to any reduction by the credit balance
in the funding standard account)" after "under section 412(l)".
Pub. L. 100-647, Sec. 2005(b)(1), substituted "For purposes of
determining whether a plan has more than 100 participants" for "For
purposes of this subparagraph".
Subsec. (a)(7)(A). Pub. L. 100-647, Sec. 2005(b)(2), inserted at
end "For purposes of clause (ii), if paragraph (1)(D) applies to a
defined benefit plan for any plan year, the amount necessary to
satisfy the minimum funding standard provided by section 412 with
respect to such plan for such plan year shall not be less than the
unfunded current liability of such plan under section 412(l)."
Pub. L. 100-647, Sec. 1011A(e)(4)(A), in introductory provisions,
substituted "foregoing paragraphs" for "foregoing provisions" and
inserted "or in connection with trusts or plans described in 2 or
more of such paragraphs" after "defined benefit plans".
Subsec. (a)(8)(D). Pub. L. 100-647, Sec. 1018(t)(5), made
technical correction to Pub. L. 99-514, Sec. 1875(c)(7)(B), see
1986 Amendment note below.
Subsec. (h)(1)(C). Pub. L. 100-647, Sec. 1011(f)(6), inserted
"(or during the taxable year in the case of a taxable year
described in subparagraph (A)(ii))" after "within the taxable
year".
Subsec. (h)(3). Pub. L. 100-647, Sec. 1011A(e)(4)(B), substituted
"Coordination with subsection (a)(7)" for "Effect on limit on
deductions" in heading and amended text generally. Prior to
amendment, text read as follows: "For any taxable year for which
the employer has a deduction under paragraph (1), the otherwise
applicable 25 percent limitations in subsection (a)(7) shall be
reduced by the amount of the allowable deductions under paragraph
(1) with respect to participants in the stock bonus or profit-
sharing trust."
Subsec. (k). Pub. L. 100-647, Sec. 1011B(h)(3)(A), inserted
"(whether or not allocated to participants)" after "to employer
securities" in par. (2)(C).
Pub. L. 100-647, Sec. 1011B(h)(6), substituted "or as engaging in
a prohibited transaction for purposes of section 4975(d)(3) merely
by reason of any distribution or payment" for "merely by reason of
any distribution" in third sentence.
Pub. L. 100-647, Sec. 1018(t)(4)(A), substituted "evasion of
taxation" for "avoidance of taxation" in fourth sentence.
Pub. L. 100-647, Sec. 1011B(h)(3)(B), inserted at end "Paragraph
(2)(C) shall not apply to dividends from employer securities which
are allocated to any participant unless the plan provides that
employer securities with a fair market value not less than the
amount of such dividends are allocated to such participant for the
year which (but for paragraph (2)(C)) such dividends would have
been allocated to such participant."
Subsec. (l). Pub. L. 100-647, Sec. 1011(d)(4), inserted at end
"In determining the compensation of an employee, the rules of
section 414(q)(6) shall apply, except that in applying such rules,
the term 'family' shall include only the spouse of the employee and
any lineal descendants of the employee who have not attained age 19
before the close of the year."
Pub. L. 100-647, Sec. 1011(d)(1), inserted at end "For purposes
of clause (i), (ii), or (iii) of subsection (a)(1)(A), and in
computing the full funding limitation, any adjustment under the
preceding sentence shall not be taken into account for any year
before the year for which such adjustment first takes effect."
1987 - Subsec. (a)(1)(A)(iii). Pub. L. 100-203, Sec. 9307(d),
inserted "the unfunded costs attributable to" after "to amortize".
Subsec. (a)(1)(D), (E). Pub. L. 100-203, Sec. 9307(c), added
subpar. (D) and redesignated former subpar. (D) as (E).
Subsec. (a)(5). Pub. L. 100-203, Sec. 10201(b)(3), inserted at
end "For purposes of this section, any vacation pay which is
treated as deferred compensation shall be deductible for the
taxable year of the employer in which paid to the employee."
Subsec. (b)(2)(B). Pub. L. 100-203, Sec. 10201(b)(2), substituted
"Exception" for "Exception for certain benefits" in heading and
amended text generally. Prior to amendment, text read as follows:
"Subparagraph (A) shall not apply to -
"(i) any benefit provided through a welfare benefit fund (as
defined in section 419(e)), or
"(ii) any benefit with respect to which an election under
section 463 applies."
1986 - Subsec. (a). Pub. L. 99-514, Sec. 1851(b)(2)(C)(i),
substituted "this chapter; but, if they would otherwise be
deductible" for "section 162 (relating to trade or business
expenses) or section 212 (relating to expenses for the production
of income); but, if they satisfy the conditions of either of such
sections".
Subsec. (a)(2). Pub. L. 99-514, Sec. 1136(b), substituted "(26),
and (27)" for "and (26)".
Pub. L. 99-514, Sec. 1112(d)(2), substituted "(22), and (26)" for
"and (22)".
Subsec. (a)(3)(A). Pub. L. 99-514, Sec. 1131(a), amended subpar.
(A) generally, revising and restating as cls. (i) to (v) provisions
formerly contained in single paragraph.
Subsec. (a)(7). Pub. L. 99-514, Sec. 1131(b), amended par. (7)
generally, revising and restating as subpars. (A) to (C) provisions
formerly contained in single paragraph, and adding subpar. (D).
Subsec. (a)(8)(C). Pub. L. 99-514, Sec. 1875(c)(7)(A), inserted
"(determined without regard to the deductions allowed by this
section)".
Subsec. (a)(8)(D). Pub. L. 99-514, Sec. 1875(c)(7)(B), as amended
by Pub. L. 100-647, Sec. 1018(t)(5), struck out "(determined
without regard to the deductions allowed by this section)" after
"earned income of such individual".
Pub. L. 99-514, Sec. 1848(c), substituted "the deduction allowed
by this section" for "the deductions allowed by this section and
section 405(c)".
Subsec. (b). Pub. L. 99-514, Sec. 1851(b)(2)(B)(i), substituted
"certain" for "unfunded" in heading.
Subsec. (b)(2). Pub. L. 99-514, Sec. 1851(b)(2)(A), (B)(ii),
substituted "certain" for "unfunded" in heading, and in subpar.
(B)(ii), substituted "any benefit" for "to any benefit".
Subsec. (d). Pub. L. 99-514, Sec. 1851(b)(2)(C)(ii), substituted
"under this chapter" for "under section 162 or 212" in pars. (1)
and (2).
Subsec. (g)(3). Pub. L. 99-272, Sec. 11011(c)(1), amended par.
(3) generally. Prior to the amendment, par. (3), coordination with
subsection (a), read as follows: "Any payment described in
paragraph (1) shall (subject to the last sentence of subsection
(a)(1)(A)) be deductible under this section when paid."
Subsec. (g)(4). Pub. L. 99-272, Sec. 11011(c)(2), added par. (4).
Subsec. (h)(1)(A), (B). Pub. L. 99-514, Sec. 1108(c), amended
subpars. (A) and (B) generally. Prior to amendment, subpars. (A)
and (B) read as follows:
"(A) Contributions made for a calendar year are deductible for
the taxable year with which or within which the calendar year ends.
"(B) Contributions made within 3 1/2 months after the close of a
calendar year are treated as if they were made on the last day of
such calendar year if they are made on account of such calendar
year."
Subsec. (i). Pub. L. 99-514, Sec. 1171(b)(6), struck out subsec.
(i) relating to the deductibility of unused portions of employee
stock ownership credit.
Subsec. (k). Pub. L. 99-514, Sec. 1854(b)(2)(B), struck out
"during the taxable year" after "cash by such corporation" in
introductory provisions.
Pub. L. 99-514, Sec. 1854(b)(4), inserted "The Secretary may
disallow the deduction under this subsection for any dividend if
the Secretary determines that such dividend constitutes, in
substance, an avoidance of taxation."
Pub. L. 99-514, Sec. 1854(b)(3), inserted "A plan to which this
subsection applies shall not be treated as violating the
requirements of section 401, 409, or 4975(e)(7) merely by reason of
any distribution described in paragraph (2)."
Pub. L. 99-514, Sec. 1854(b)(2)(A), inserted "Any deduction under
subparagraph (A) or (B) of paragraph (2) shall be allowed in the
taxable year of the corporation in which the dividend is paid or
distributed to the participant under paragraph (2)."
Pub. L. 99-514, Sec. 1173(a)(2), inserted "Any deduction under
paragraph (2)(C) shall be allowable in the taxable year of the
corporation in which the dividend is used to repay the loan
described in such paragraph."
Subsec. (k)(2)(A), (B). Pub. L. 99-514, Sec. 1854(b)(5), inserted
"or their beneficiaries".
Subsec. (k)(2)(C). Pub. L. 99-514, Sec. 1173(a)(1), added subpar.
(C).
Subsec. (l). Pub. L. 99-514, Sec. 1106(d)(2), added subsec. (l).
1984 - Subsec. (a)(8)(D). Pub. L. 98-369, Sec. 713(d)(6),
inserted "(determined without regard to the deductions allowed by
this section and section 405(c))".
Subsec. (a)(9), (10). Pub. L. 98-369, Sec. 713(d)(4)(A), struck
out par. (9) relating to plans benefiting self-employed individuals
and redesignated par. (10) as (9).
Subsec. (b). Pub. L. 98-369, Sec. 512(a), amended subsec. (b)
generally, inserting heading, redesignating former heading as par.
(1) heading, designating existing provisions as par. (1), and in
par. (1) as so designated, inserted "(including a plan described in
paragraph (2))" after "compensation" and adding par. (2).
Subsec. (e). Pub. L. 98-369, Sec. 713(d)(9), substituted "under
paragraph (1), (2), or (3) of subsection (a)" for "under this
section".
Subsec. (f). Pub. L. 98-369, Sec. 713(b)(3), repealed subsec. (f)
which related to certain loan repayments considered as
contributions.
Subsec. (h)(4). Pub. L. 98-369, Sec. 713(d)(5), repealed par. (4)
which related to effect on self-employed individuals or shareholder-
employees.
Subsec. (i). Pub. L. 98-369, Sec. 474(r)(14), in par. (1),
substituted "If any portion of the employee stock ownership credit
determined under section 41 for any taxable year has not, after the
application of section 38(c), been allowed under section 38 for any
taxable year, such portion shall be allowed as a deduction (without
regard to any limitations provided under this section) for the last
taxable year to which such portion could have been allowed as a
credit under section 39" for "There shall be allowed as a deduction
(without regard to any limitations provided under this section) for
the last taxable year to which an unused employee stock ownership
credit carryover (within the meaning of section 44G(b)(2)(A)) may
be carried, an amount equal to the portion of such unused credit
carryover which expires at the close of such taxable year", and in
par. (2), substituted references to section 41 and 41(c)(3) for
references to section 44G and 44G(c)(3), respectively.
Subsec. (k). Pub. L. 98-369, Sec. 542(a), added subsec. (k).
1982 - Subsec. (a)(2). Pub. L. 97-248, Sec. 237(e)(2),
substituted "(8), (9)" for "(8)", and "401(a)(10) and of section
401(d)" for "401(a)(9), (10), (17), and (18) and of section 401(d)
(other than paragraph (1))".
Subsec. (a)(3)(B). Pub. L. 97-248, Sec. 253(b), inserted
provision that "compensation otherwise paid or accrued during the
taxable year to all employees" shall include any amount with
respect to which an election under section 415(c)(3)(C) is in
effect, but only to the extent that any contribution with respect
to such amount is nonforfeitable.
Subsec. (e). Pub. L. 97-248, Sec. 238(a), amended subsec. (e)
generally, substituting provisions relating to contributions
allocable to life insurance protection for self-employed
individuals, for provisions relating to general requirements,
contributions made under more than one plan, contributions
allocable to insurance protection, and limitations of not lower
than $750 or 100 percent of earned income with respect to special
limitations for self-employed individuals.
Subsec. (j). Pub. L. 97-248, Sec. 235(f), added subsec. (j).
1981 - Subsec. (a)(10). Pub. L. 97-34, Sec. 333(a), added par.
(10).
Subsec. (e). Pub. L. 97-34, Sec. 312(a), substituted in pars. (1)
and (2)(A) "$15,000" for "$7,500".
Subsec. (i). Pub. L. 97-34, Sec. 331(b), added subsec. (i).
1980 - Subsec. (g). Pub. L. 96-364 redesignated existing
provisions as par. (1), inserted applicability to part 1 of
subtitle E of title IV of Employee Retirement Income Security Act
of 1974, and added pars. (2) and (3).
Subsec. (h). Pub. L. 96-222 inserted "or shareholder employees"
after "individuals" in heading, and in par. (4) "or described in
section 1379(b)(1)" after "of subsection (e)" and "or a shareholder-
employee (as defined in section 1379(d))" after "section
401(c)(1)" and substituted in pars. (2) to (4) "paragraph (1)" for
"subparagraph (1)".
1978 - Subsec. (a)(2). Pub. L. 95-600, Sec. 141(f)(9),
substituted "(20), and (22)" for "and (20)".
Subsec. (b). Pub. L. 95-600, Sec. 133(b), substituted "other
plan" for "similar plan".
Subsec. (d). Pub. L. 95-600, Sec. 133(a), added subsec. (d).
Subsec. (h). Pub. L. 95-600, Sec. 152(f), added subsec. (h).
1976 - Subsecs. (a)(1)(B), (8)(C). Pub. L. 94-455, Sec.
1906(b)(13)(A), struck out "or his delegate" after "Secretary".
Subsec. (a)(2). Pub. L. 94-267 substituted "(19), and (20)" for
"and (19)".
Subsec. (d). Pub. L. 94-455, Sec. 1901(a)(59), struck out subsec.
(d) which related to the taxability of the beneficiary under
certain forfeitable contracts purchased by exempt organizations.
Subsecs. (e)(2)(B), (3). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary".
Subsec. (e)(4). Pub. L. 94-455, Sec. 1502(a)(2), inserted
provisions following subpar. (B).
1974 - Subsec. (a)(1). Pub. L. 93-406, Sec. 1013(c)(1), expanded
subpars. (A), (B), and (C) to accommodate the increased minimum
funding standards required by section 412.
Subsec. (a)(2). Pub. L. 93-406, Secs. 1016(a)(3), 2001(g)(2)(E),
2004(c)(1), inserted references to the requirements of section
401(a)(11), (12), (13), (14), (15), (16), (17), (18), and (19),
and, if applicable, the requirements of section 401(a)(17) and
(18).
Subsec. (a)(3)(A). Pub. L. 93-406, Sec. 2004(b), inserted ", but
the amount so deductible under this sentence in any one succeeding
taxable year together with the amount so deductible under the first
sentence of this subparagraph shall not exceed 25 percent of the
compensation otherwise paid or accrued during such taxable year to
the beneficiaries under the plan" after "If in any taxable year
there is paid into the trust, or a similar trust then in effect,
amounts less than the amounts deductible under the preceding
sentence, the excess, or if no amount is paid, the amounts
deductible, shall be carried forward and be deductible when paid in
the succeeding taxable years in order of time, but the amount so
deductible under this sentence in any such succeeding taxable year
shall not exceed 15 percent of the compensation otherwise paid or
accrued during such succeeding taxable year to the beneficiaries
under the plan".
Subsec. (a)(6). Pub. L. 93-406, Sec. 1013(c)(2), substituted
provisions covering only taxpayers operating on the accrual basis
for provisions covering the time when contributions shall be deemed
made.
Subsec. (a)(7). Pub. L. 93-406, Sec. 1013(c)(3), inserted
reference to the amount of contributions made to or under the
trusts or plans to the extent such contributions do not exceed the
amount of employer contributions necessary to satisfy the minimum
funding standards provided by section 412 for the plan year which
ends with or within such taxable year (or for any prior plan year)
and substituted "25 percent" for "30 percent" in provision covering
amounts paid into trusts or under an annuity plan in any taxable
year in excess of the amount allowable with respect to such year.
Subsec. (a)(9)(B)(ii). Pub. L. 93-406, Sec. 2001(g)(2)(F),
substituted "the second sentence of paragraph (3)" for "paragraph
(1)(D), the second and third sentences of paragraph (3), and the
second sentence of paragraph (7)".
Subsec. (c). Pub. L. 93-406, Sec. 2008(a), (b), substituted "or
pensions" for "and pensions" in par. (1), substituted "The first
and third sentences of this subsection" for "This subsection" in
provisions covering amounts contributed to a trust on or after any
date on which such trust is qualified for exemption from tax under
section 501(a), inserted provisions setting out specified treatment
to be accorded individuals who before July 1, 1974, were
participants in plans described in the subsections, and inserted
provision that section 277 (relating to deductions incurred by
certain membership organizations in transactions with members) does
not apply to any trust described in the subsection.
Subsec. (e)(1). Pub. L. 93-406, Sec. 2001(a)(1), substituted
"subject to paragraphs (2) and (4), not exceed $7,500, or 15
percent" for "subject to the provisions of paragraph (2), not
exceed $2,500, or 10 percent".
Subsec. (e)(2)(A). Pub. L. 93-406, Sec. 2001(a)(2), substituted
"shall (subject to paragraph (4)) not exceed $7,500, or 15 percent"
for "shall not exceed $2,500 or 10 percent".
Subsec. (e)(4). Pub. L. 93-406, Sec. 2001(a)(3), added par. (4).
Subsec. (g). Pub. L. 93-406, Sec. 4081(a), added subsec. (g).
1969 - Subsec. (a)(5). Pub. L. 91-172 substituted "If the plan is
not one included in paragraph (1), (2), or (3), in the taxable year
in which an amount attributable to the contribution is includible
in the gross income of employees participating in the plan, but, in
the case of a plan in which more than one employee participates
only if separate accounts are maintained for each employee" for "In
the taxable year when paid, if the plan is not one included in
paragraph (1), (2), or (3), if the employees' rights to or derived
from such employer's contribution or such compensation are
nonforfeitable at the time the contribution or compensation is
paid".
1966 - Subsec. (a). Pub. L. 89-809, Sec. 204(a), repealed par.
(10) which provided for a special limitation on the amount allowed
as a deduction for self-employed individuals.
Subsec. (e). Pub. L. 89-809, Sec. 204(b)(2), (3), struck out
references to par. (10) of subsec. (a) wherever appearing.
1962 - Subsec. (a)(2). Pub. L. 87-863 inserted ", or retirement
annuities and medical benefits as described in section 401(h),"
after "purchase of retirement annuities", and ", or such retirement
annuities and medical benefits" after "such retirement annuities."
Pub. L. 87-792, Sec. 3(a)(1), substituted "(5), (6), (7), and
(8), and, if applicable, the requirements of section 401(a)(9) and
(10) and of section 401(d) (other than paragraph (1))," for "(5),
and (6),".
Subsecs. (a)(8) to (10). Pub. L. 87-792, Sec. 3(a)(2), added
pars. (8) to (10).
Subsecs. (e), (f). Pub. L. 87-792, Sec. 3(b), added subsecs. (e)
and (f).
1958 - Subsec. (a). Pub. L. 85-866 substituted "income); but, if"
for "income) but if" preceding par. (1).
EFFECTIVE DATE OF 2004 AMENDMENT
Pub. L. 108-218, title I, Sec. 101(d), Apr. 10, 2004, 118 Stat.
599, provided that:
"(1) In general. - Except as provided in paragraphs (2) and (3),
the amendments made by this section [amending this section,
sections 412 and 415 of this title, and sections 1082 and 1306 of
Title 29, Labor] shall apply to plan years beginning after December
31, 2003.
"(2) Lookback rules. - For purposes of applying subsections
(d)(9)(B)(ii) and (e)(1) of section 302 of the Employee Retirement
Income Security Act of 1974 [29 U.S.C. 1082(d)(9)(B)(ii), (e)(1)]
and subsections (l)(9)(B)(ii) and (m)(1) of section 412 of the
Internal Revenue Code of 1986 to plan years beginning after
December 31, 2003, the amendments made by this section may be
applied as if such amendments had been in effect for all prior plan
years. The Secretary of the Treasury may prescribe simplified
assumptions which may be used in applying the amendments made by
this section to such prior plan years.
"(3) Transition rule for section 415 limitation. - In the case of
any participant or beneficiary receiving a distribution after
December 31, 2003[,] and before January 1, 2005, the amount payable
under any form of benefit subject to section 417(e)(3) of the
Internal Revenue Code of 1986 and subject to adjustment under
section 415(b)(2)(B) of such Code shall not, solely by reason of
the amendment made by subsection (b)(4) [amending section 415 of
this title], be less than the amount that would have been so
payable had the amount payable been determined using the applicable
interest rate in effect as of the last day of the last plan year
beginning before January 1, 2004."
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 611(c)(1) of Pub. L. 107-16 applicable to
years beginning after Dec. 31, 2001, see section 611(i)(1) of Pub.
L. 107-16, set out as a note under section 415 of this title.
Pub. L. 107-16, title VI, Sec. 614(b), June 7, 2001, 115 Stat.
102, provided that: "The amendment made by this section [amending
this section] shall apply to years beginning after December 31,
2001."
Pub. L. 107-16, title VI, Sec. 616(c), June 7, 2001, 115 Stat.
103, provided that: "The amendments made by this section [amending
this section and section 4972 of this title] shall apply to years
beginning after December 31, 2001."
Amendment by section 632(a)(3)(B) 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.
Pub. L. 107-16, title VI, Sec. 652(c), June 7, 2001, 115 Stat.
130, provided that: "The amendments made by this section [amending
this section and section 4972 of this title] shall apply to plan
years beginning after December 31, 2001."
Pub. L. 107-16, title VI, Sec. 662(c), June 7, 2001, 115 Stat.
142, provided that: "The amendments made by this section [amending
this section] shall apply to taxable years beginning 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 1998 AMENDMENT
Amendment by section 6015(d) of Pub. L. 105-206 effective, except
as otherwise provided, as if included in the provisions of the
Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such
amendment relates, see section 6024 of Pub. L. 105-206, set out as
a note under section 1 of this title.
Pub. L. 105-206, title VII, Sec. 7001(b), July 22, 1998, 112
Stat. 827, provided that:
"(1) In general. - The amendment made by subsection (a) [amending
this section] shall apply to taxable years ending after the date of
the enactment of this Act [July 22, 1998].
"(2) Change in method of accounting. - In the case of any
taxpayer required by the amendment made by subsection (a) [amending
this section] to change its method of accounting for its first
taxable year ending after the date of the enactment of this Act
[July 22, 1998] -
"(A) such change shall be treated as initiated by the taxpayer,
"(B) such change shall be treated as made with the consent of
the Secretary of the Treasury; and
"(C) the net amount of the adjustments required to be taken
into account by the taxpayer under section 481 of the Internal
Revenue Code of 1986 shall be taken into account ratably over the
3-taxable year period beginning with such first taxable year."
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 1530(c)(2) of Pub. L. 105-34 applicable to
transfers made by trusts to, or for the use of, an employee stock
ownership plan after Aug. 5, 1997, see section 1530(d) of Pub. L.
105-34, set out as a note under section 401 of this title.
Amendment by section 1601(d)(2)(C) 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
Amendment by section 1316(d)(1), (2) of Pub. L. 104-188
applicable to taxable years beginning after Dec. 31, 1997, see
section 1316(f) of Pub. L. 104-188, set out as a note under section
170 of this title.
Amendment by section 1421(b)(2) of Pub. L. 104-188 applicable to
taxable years beginning after Dec. 31, 1996, see section 1421(e) of
Pub. L. 104-188, set out as a note under section 72 of this title.
Amendment by section 1431(b)(3) of Pub. L. 104-188 applicable to
years beginning after Dec. 31, 1996, see section 1431(d)(2) of Pub.
L. 104-188, set out as a note under section 414 of this title.
Section 1461(c) of Pub. L. 104-188 provided that: "The amendments
made by this section [amending this section and section 1414 of
this title] shall apply to years beginning after December 31,
1996."
Section 1704(q)(2) of Pub. L. 104-188 provided that: "The
amendment made by paragraph (1) [amending this section] shall take
effect as if included in the amendments made by section
713(d)(4)(A) of the Deficit Reduction Act of 1984 [Pub. L. 98-
369]."
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66 applicable, except as otherwise
provided, to benefits accruing in plan years beginning after Dec.
31, 1993, see section 13212(d) of Pub. L. 103-66, set out as a note
under section 401 of this title.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by 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 applicable to property placed in
service after Nov. 5, 1990, but not applicable to any property to
which section 168 of this title does not apply by reason of subsec.
(f)(5) of section 168, and not applicable to rehabilitation
expenditures described in section 252(f)(5) of Pub. L. 99-514, see
section 11812(c) of Pub. L. 101-508, set out as a note under
section 42 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7302(b) of Pub. L. 101-239 provided that:
"(1) In general. - The amendment made by this section [amending
this section] shall apply to employer securities acquired after
August 4, 1989.
"(2) Securities acquired with certain loans. - The amendment made
by this section shall not apply to employer securities acquired
after August 4, 1989, which are acquired -
"(A) with the proceeds of any loan which was made pursuant to a
binding written commitment in effect on August 4, 1989, and at
all times thereafter before such loan is made, and
"(B) pursuant to a written binding contract (or tender offer
registered with the Securities and Exchange Commission) in effect
on August 4, 1989, and at all times thereafter before such
securities are acquired."
Section 7841(b)(2) of Pub. L. 101-239 provided that: "The
amendment made by paragraph (1) [amending this section] shall apply
to payments made after January 1, 1986, in taxable years ending
after such date."
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by sections 1011(d)(1), (4), (f)(6), 1011A(e)(4),
1011B(h)(3), (6), and 1018(t)(4)(A), (5) 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 2005(e) of Pub. L. 100-647, as amended by Pub. L. 101-
239, title VII, Sec. 7812(d), Dec. 19, 1989, 103 Stat. 2412,
provided that: "The amendments made by this section [amending this
section and sections 412, 414, and 4972 of this title and section
1082 of Title 29, Labor] shall take effect as if included in the
amendments made by the provisions of the Omnibus Budget
Reconciliation Act of 1987 [Pub. L. 100-203] to which it relates,
except that the amendment made by subsection (a)(1) [amending
section 4972 of this title] shall take effect as if included in the
amendment made by section 1131(c) of the Tax Reform Act of 1986
[Pub. L. 99-514]."
EFFECTIVE DATE OF 1987 AMENDMENT
Section 9307(f) of Pub. L. 100-203, as amended by Pub. L. 101-
239, title VII, Sec. 7881(d)(3), Dec. 19, 1989, 103 Stat. 2439,
provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section and section
412 of this title and section 1082 of Title 29, Labor] shall apply
to years beginning after December 31, 1987.
"(2) Amortization of gains and losses. - Sections
412(b)(2)(B)(iv) and 412(b)(3)(B)(ii) of the Internal Revenue Code
of 1986 and sections 302(b)(2)(B)(iv) and 302(b)(3)(B)(ii) of the
Employee Retirement Income Security Act of 1974 [29 U.S.C.
1082(b)(2)(B)(iv), (3)(B)(ii)] (as amended by paragraphs (1)(A) and
(2)(A) of subsection (a)) shall apply to gains and losses
established in years beginning after December 31, 1987. For
purposes of the preceding sentence, any gain or loss determined by
a valuation occurring as of January 1, 1988, shall be treated as
established in years beginning before 1988, or at the election of
the employer, shall be amortized in accordance with Internal
Revenue Service Notice 89-52."
Section 10201(c)(1) of Pub. L. 100-203 provided that: "The
amendments made by this section [amending this section and sections
419 and 461 of this title, and repealing sections 81 and 463 of
this title] shall apply to taxable years beginning after December
31, 1987."
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by section 1106(d)(2) of Pub. L. 99-514 applicable to
benefits accruing in years beginning after Dec. 31, 1988, except as
otherwise provided, see section 1106(i)(5) of Pub. L. 99-514, set
out as a note under section 415 of this title.
Amendment by section 1108(c) of Pub. L. 99-514 applicable to
years beginning after Dec. 31, 1986, see section 1108(h) of Pub. L.
99-514, set out as a note under section 219 of this title.
Amendment by section 1112(d)(2) of Pub. L. 99-514 applicable to
plan years beginning after Dec. 31, 1988, with special rule
regarding collective bargaining agreements ratified before Mar. 1,
1986, and with provision for waiver of excise tax on reversions,
see section 1112(e) of Pub. L. 99-514, set out as a note under
section 401 of this title.
Section 1131(d) of Pub. L. 99-514, as amended by Pub. L. 100-647,
title I, Sec. 1011A(e)(3), Nov. 10, 1988, 102 Stat. 3478, provided
that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [enacting section 4972 of this
title and amending this section] shall apply to taxable years
beginning after December 31, 1986.
"(2) Special rules for 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 contributions pursuant to any
such agreement for taxable years beginning before the earlier of -
"(A) January 1, 1989, or
"(B) 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 1171(b)(6) of Pub. L. 99-514 applicable to
compensation paid or accrued after Dec. 31, 1986, in taxable years
ending after such date, but this section 404(i) of this title to
continue to apply with respect to credits under section 41 of this
title attributable to compensation paid or accrued before Jan. 1,
1987 (or under section 38 of this title with respect to qualified
investment before Jan. 1, 1983), see section 1171(c) of Pub. L. 99-
514, set out as a note under section 38 of this title.
Section 1173(c)(1) of Pub. L. 99-514 provided that: "The
amendments made by subsection (a) [amending this section] shall
apply to dividends paid in taxable years beginning after the date
of the enactment of this Act [Oct. 22, 1986]."
Amendment by sections 1848(c), 1851(b)(2)(A)-(C)(ii), and
1854(b)(3)-(5) 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.
Amendment by section 1854(b)(2) of Pub. L. 99-514 not applicable
to dividends paid before Jan. 1, 1986, if the taxpayer treated such
dividends in a manner inconsistent with such amendment on a return
filed with the Secretary before Oct. 22, 1986, see section
1854(b)(6) of Pub. L. 99-514, set out as a note under section 72 of
this title.
Section 1875(c)(7)(B) of Pub. L. 99-514 provided that the
amendment made by that section is effective with respect to taxable
years beginning after Dec. 31, 1984.
Section 11011(c)(3) of Pub. L. 99-272 provided that: "The
amendments made by this subsection [amending this section] shall
apply to payments made after January 1, 1986, in taxable years
ending after such date."
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 474(r)(14) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, and to carrybacks from
such years, see section 475(a) of Pub. L. 98-369, set out as a note
under section 21 of this title.
Section 512(c) of Pub. L. 98-369 provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section and section
162 of this title] shall apply to amounts paid or incurred after
the date of the enactment of this Act [July 18, 1984] in taxable
years ending after such date.
"(2) Exception for certain extended vacation pay plans. - In the
case of any extended vacation pay plan maintained pursuant to a
collective bargaining agreement -
"(A) between employee representatives and 1 or more employers,
and
"(B) in effect on June 22, 1984,
the amendments made by this section shall not apply before the date
on which such collective bargaining agreement terminates
(determined without regard to any extension thereof agreed to after
June 22, 1984). 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 shall not be treated as a
termination of such collective bargaining agreement."
Section 542(d) of Pub. L. 98-369 provided that: "The amendments
made by this section [amending this section and sections 116 and
3405 of this title] shall apply to taxable years beginning after
the date of enactment of this Act [July 18, 1984]."
Amendment by section 713 of Pub. L. 98-369 effective as if
included in the provision of the Tax Equity and Fiscal
Responsibility Act of 1982, Pub. L. 97-248, to which such amendment
relates, see section 715 of Pub. L. 98-369, set out as a note under
section 31 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Section 253(c) of Pub. L. 97-248 provided that: "The amendments
made by this section [amending this section and section 415 of this
title] shall apply to taxable years beginning after December 31,
1981."
Amendment by section 235(f) of Pub. L. 97-248, in the case of any
plan which is not in existence on July 1, 1982, applicable to years
ending after July 1, 1982, and in the case of any plan which is in
existence on July 1, 1982, applicable to years beginning after Dec.
31, 1982, see section 235(g)(1) of Pub. L. 97-248, set out as a
note under section 415 of this title.
Amendment by sections 237 and 238 of Pub. L. 97-248 applicable to
years beginning after Dec. 31, 1983, see section 241 of Pub. L. 97-
248, set out as an Effective Date note under section 416 of this
title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 312(a) of Pub. L. 97-34 applicable to plans
which include employees within the meaning of section 401(c)(1) of
this title with respect to taxable years beginning after Dec. 31,
1981, see section 312(f)(1) of Pub. L. 97-34, set out as a note
under section 72 of this title.
Section 331(f)(2) of Pub. L. 97-34 provided that: "The amendments
made by subsections (b) and (c) [amending this section and sections
56, 409A, and 6699 of this title] shall apply to taxable years
ending after December 31, 1982."
EFFECTIVE DATE OF 1980 AMENDMENTS
Amendment by Pub. L. 96-364 effective Sept. 26, 1980, see section
210(a) of Pub. L. 96-364, set out as an Effective Date note under
section 418 of this title.
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 AMENDMENT
Section 133(c) of Pub. L. 95-600, as amended by Pub. L. 96-222,
title I, Sec. 101(a)(5), Apr. 1, 1980, 94 Stat. 196; Pub. L. 99-
514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section] shall apply
to deductions for taxable years beginning after December 31, 1978.
"(2) Special rule for certain title insurance companies. -
"(A) In general. - In the case of a qualified title insurance
company plan, the amendment made by subsection (a) [amending this
section] shall apply to deductions for taxable years beginning
after December 31, 1979.
"(B) Qualified title insurance company plan. - For purposes of
subparagraph (A), the term 'qualified title insurance company
plan' means a plan of a qualified title insurance company -
"(i) which defers the payment of amounts credited by such
company to separate accounts for members of such company in
consideration of their issuance of policies of title insurance,
and
"(ii) under which no part of such amounts is payable to or
withdrawable by the members until after the period for the
adverse possession of real property under applicable State law.
"(C) Qualified title insurance company. - For purposes of
subparagraph (B), the term 'qualified title insurance company'
means an unincorporated title insurance company organized as a
business trust -
"(i) which is engaged in the business of providing title
insurance coverage on interests in and liens upon real property
obtained by clients of the members of such company, and
"(ii) which is subject to tax under section 831 of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954]."
Amendment by section 141(f)(9) of Pub. L. 95-600 effective with
respect to qualified investment for taxable years beginning after
Dec. 31, 1978, see section 141(g)(1) of Pub. L. 95-600, set out as
an Effective Date note under section 409 of this title.
Amendment by section 152(f) of Pub. L. 95-600 applicable to
taxable years beginning after Dec. 31, 1978, see section 152(h) of
Pub. L. 95-600, set out as a note under section 408 of this title.
EFFECTIVE DATE OF 1976 AMENDMENTS
Amendment by section 1502(a)(2) of Pub. L. 94-455 effective for
taxable years beginning after Dec. 31, 1975, see section 1502(b) of
Pub. L. 94-455, set out as a note under section 415 of this title.
Amendment by section 1901(a)(59) 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
Amendment by sections 1013(c) and 1016(a)(3) of Pub. L. 93-406
applicable, except as otherwise provided in section 1017(c) through
(i) of Pub. L. 93-406, for plan years beginning after Sept. 2,
1974, but, in the case of plans in existence on Jan. 1, 1974,
amendment by sections 1013(c) and 1016(a)(3) of Pub. L. 93-406
applicable for plan years beginning after Dec. 31, 1975, see
section 1017 of Pub. L. 93-406, set out as an Effective Date;
Transitional Rules note under section 410 of this title.
Section 2001(i)(1) of Pub. L. 93-406 provided that: "The
amendments made by subsections (a) [amending this section] and (b)
[amending section 1379 of this title] apply to taxable years
beginning after December 31, 1973."
Amendment by section 2001(g)(2)(E), (F) of Pub. L. 93-406
applicable to distributions made in taxable years beginning after
Dec. 31, 1975, see section 2001(i)(5) of Pub. L. 93-406, set out as
a note under section 72 of this title.
Section 2008(c) of Pub. L. 93-406 provided that: "The amendments
made by this section [amending this section] shall apply to taxable
years ending on or after June 30, 1972."
Amendment by section 2004(b), (c)(1) 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 4081(a) of Pub. L. 93-406 effective on Sept.
2, 1974, with exceptions specified in section 1461(b), (c) of Title
29, Labor, see section 1461(a) of Title 29.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by 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.
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-809 applicable with respect to taxable
years beginning after Dec. 31, 1967, see section 204(d) of Pub. L.
89-809, set out as a note under section 401 of this title.
EFFECTIVE DATE OF 1962 AMENDMENTS
Amendment by Pub. L. 87-863 applicable to taxable years beginning
after Oct. 23, 1962, see section 2(c) of Pub. L. 87-863, set out as
a note under section 401 of this title.
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 1958 AMENDMENT
Amendment by Pub. L. 85-866 applicable to taxable years beginning
after Dec. 31, 1953, and ending after Aug. 16, 1954, see section
1(c)(1) of Pub. L. 85-866, set out as a note under section 165 of
this title.
REGULATIONS
Secretary of the Treasury or his delegate to issue before Feb. 1,
1988, final regulations to carry out amendments made by section
1112 of Pub. L. 99-514, see section 1141 of Pub. L. 99-514, set out
as a note under section 401 of this title.
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L. 101-508 be
construed to affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 45K of this title.
CLARIFICATION OF TREATMENT OF CONTRIBUTIONS TO MULTIEMPLOYER PLAN
Pub. L. 107-16, title VI, Sec. 658, June 7, 2001, 115 Stat. 137,
provided that:
"(a) Not Considered Method of Accounting. - For purposes of
section 446 of the Internal Revenue Code of 1986, a determination
under section 404(a)(6) of such Code regarding the taxable year
with respect to which a contribution to a multiemployer pension
plan is deemed made shall not be treated as a method of accounting
of the taxpayer. No deduction shall be allowed for any taxable year
for any contribution to a multiemployer pension plan with respect
to which a deduction was previously allowed.
"(b) Regulations. - The Secretary of the Treasury shall
promulgate such regulations as necessary to clarify that a taxpayer
shall not be allowed an aggregate amount of deductions for
contributions to a multiemployer pension plan which exceeds the
amount of such contributions made or deemed made under section
404(a)(6) of the Internal Revenue Code of 1986 to such plan.
"(c) Effective Date. - Subsection (a), and any regulations
promulgated under subsection (b), shall be effective for years
ending after the date of the enactment of this Act [June 7, 2001]."
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.
COORDINATION OF REPEALS OF CERTAIN SECTIONS
Section 713(d)(8) of Pub. L. 98-369, as amended by Pub. L. 99-
514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"Sections 404(e) and 1379(b) of the Internal Revenue Code of 1986
[formerly I.R.C. 1954] (as in effect on the day before the date of
the enactment of the Tax Equity and Fiscal Responsibility Act of
1982 [Sept. 3, 1982]) shall not apply to any plan to which section
401(j) of such Code applies (or would apply but for its repeal)."
DEDUCTIBILITY OF PAYMENTS TO PLAN BY CORPORATION OPERATING PUBLIC
TRANSPORTATION SYSTEM ACQUIRED BY STATE
Section 408 of Pub. L. 96-364, as amended by Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) For purposes of subsection (g) of section 404 of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to
certain employer liability payments considered as contributions),
as amended by section 205 of this Act, any payment made to a plan
covering employees of a corporation operating a public
transportation system shall be treated as a payment described in
paragraph (1) of such subsection if -
"(1) such payment is made to fund accrued benefits under the
plan in conjunction with an acquisition by a State (or agency or
instrumentality thereof) of the stock or assets of such
corporation, and
"(2) such acquisition is pursuant to a State public
transportation law enacted after June 30, 1979, and before
January 1, 1980.
"(b) The provisions of this section shall apply to payments made
after June 29, 1980."
YEAR OF DEDUCTION FOR CERTAIN EMPLOYER CONTRIBUTIONS FOR SEVERANCE
PAYMENTS REQUIRED BY FOREIGN LAW
Section 1022(j) of Pub. L. 93-406, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "Effective
for taxable years beginning after December 31, 1973, if -
"(1) an employer is engaged in a trade or business in a foreign
country,
"(2) such employer is required by the laws of that country to
make payments, based on periods of service, to its employees or
their beneficiaries after the employees' retirement, death, or
other separation from the service, and
"(3) such employer establishes a trust (whether organized
within or outside the United States) for the purpose of funding
the payments required by such law,
then, in determining for purposes of paragraph (5) of section
404(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]
the taxable year in which any contribution to or under the plan is
includible in the gross income of the nonresident alien employees
of such employer, such paragraph (5) shall be treated as not
requiring that separate accounts be maintained for such nonresident
alien employees."
(!1) See References in Text note below.