transition period

(ii)For purposes of clause (i), the term “transition period” means the period— (I)beginning on the date of the change in members of a group, and (II)ending on the last day of the 1st plan year beginning after the date of such change. (D)A trust which is part of a tax credit employee stock ownership plan which is the only plan of an employer intended to qualify undershall not be treated as not a qualified trust under section 401(a) solely because it fails to meet the requirements of this subsection if— (i)such plan benefits 50 percent or more of all the employees who are eligible under a nondiscriminatory classification under the plan, and (ii)the sum of the amounts allocated to each participant’s account for the year does not exceed 2 percent of the compensation of that participant for the year. (E)In the case of contributions which are subject toor 401(m), employees who are eligible to contribute (or elect to have contributions made on their behalf) shall be treated as benefiting under the plan (other than for purposes of paragraph (2)(A)(ii)). (F)A plan maintained by an employer which has no employees other than highly compensated employees for any year shall be treated as meeting the requirements of this subsection for such year. (G)The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection. (c)

Source

26 USC § 410(b)(6)(C)(ii)


Scoping language

None: Default is title Scope
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