Amendment of Subsection (d)
Pub. L. 117–328, div. T, title I, § 127(e)(3), (g), Dec. 29, 2022, 136 Stat. 5329, 5330, provided that, applicable to plan years beginning after Dec. 31, 2023, subsection (d) of this section is amended by adding at the end the following new paragraph:
“(3) Treatment of contributions to a pension-linked emergency savings account
“For purposes of this section, contributions to a pension-linked emergency savings account to which section 402A(e) applies (and any income allocable thereto) may be treated as a separate contract.”.
See 2022 Amendment note below.
Amendment of Subsection (q)(3)
Pub. L. 117–328, div. T, title III, § 323(b), (e), Dec. 29, 2022, 136 Stat. 5357, 5358, provided that, applicable to transfers, rollovers, and exchanges occurring after Dec. 31, 2023, subsection (q)(3) of this section is amended—
(1) by redesignating clauses (i) and (ii) of subparagraph (B) as subclauses (I) and (II), and by moving such subclauses 2 ems to the right;
(2) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), by moving such clauses 2 ems to the right, and by adjusting the flush language at the end accordingly;
(3) by striking “payments.—If” and inserting “payments
“(A) In general
“If—”; and
(4) by adding at the end the following new subparagraph:
“(B) Exchanges to subsequent contracts
“If—
“(i) payments described in paragraph (2)(D) are being made from an annuity contract,
“(ii) an exchange of all or a portion of such contract for another contract is made under section 1035, and
“(iii) the aggregate distributions from the contracts involved in the exchange continue to satisfy the requirements of paragraph (2)(D) as if the exchange had not taken place,
such exchange shall not be treated as a modification under subparagraph (A)(ii), and compliance with paragraph (2)(D) shall be determined on the basis of the combined distributions described in clause (iii).”.
See 2022 Amendment note below.
Amendment of Subsection (t)(2)
ub. L. 117–328, div. T, title I, § 115(a), (c), Dec. 29, 2022, 136 Stat. 5296, 5297, provided that, applicable to distributions made after Dec. 31, 2023, subsection (t)(2) of this section is amended by adding at the end the following new subparagraph:
“(I) Distributions for certain emergency expenses
“(i) In general
“Any emergency personal expense distribution.
“(ii) Annual limitation
“Not more than 1 distribution per calendar year may be treated as an emergency personal expense distribution by any individual.
“(iii) Dollar limitation
“The amount which may be treated as an emergency personal expense distribution by any individual in any calendar year shall not exceed the lesser of $1,000 or an amount equal to the excess of—
“(I) the individual’s total nonforfeitable accrued benefit under the plan (the individual’s total interest in the plan in the case of an individual retirement plan), determined as of the date of each such distribution, over
“(II) $1,000.
“(iv) Emergency personal expense distribution
For purposes of this subparagraph, the term ‘emergency personal expense distribution’ means any distribution from an applicable eligible retirement plan (as defined in subparagraph (H)(vi)(I)) to an individual for purposes of meeting unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses. The administrator of an applicable eligible retirement plan may rely on an employee’s written certification that the employee satisfies the conditions of the preceding sentence in determining whether any distribution is an emergency personal expense distribution. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee’s certification, and for procedures for addressing cases of employee misrepresentation.
“(v) Treatment of plan distributions
“If a distribution to an individual would (without regard to clause (ii) or (iii)) be an emergency personal expense distribution, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as an emergency personal expense distribution, unless the number or the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer, determined as provided in subparagraph (H)(iv)(II)) to such individual exceeds the limitation determined under clause (ii) or (iii).
“(vi) Amount distributed may be repaid
“Rules similar to the rules of subparagraph (H)(v) shall apply with respect to an individual who receives a distribution to which clause (i) applies.
“(vii) Limitation on subsequent distributions
“If a distribution is treated as an emergency personal expense distribution in any calendar year with respect to a plan of the employee, no amount may be treated as such a distribution during the immediately following 3 calendar years with respect to such plan unless—
“(I) such previous distribution is fully repaid to such plan pursuant to clause (vi), or
“(II) the aggregate of the elective deferrals and employee contributions to the plan (the total amounts contributed to the plan in the case of an individual retirement plan) subsequent to such previous distribution is at least equal to the amount of such previous distribution which has not been so repaid.
“(viii) Special rules
“Rules similar to the rules of subclauses (II) and (IV) of subparagraph (H)(vi) shall apply to any emergency personal expense distribution.”.
See 2022 Amendment note below.
Pub. L. 117–328, div. T, title I, § 127(e)(2), (g), Dec. 29, 2022, 136 Stat. 5329, 5330, provided that, applicable to plan years beginning after Dec. 31, 2023, subsection (t)(2) of this section is amended by adding at the end the following new subparagraph:
“(J) Distributions from pension-linked emergency savings account
“Distributions from a pension-linked emergency savings account pursuant to section 402A(e).”.
See 2022 Amendment note below.
Pub. L. 117–328, div. T, title III, § 314, Dec. 29, 2022, 136 Stat. 5349, provided that, applicable to distributions made after Dec. 31, 2023, subsection (t)(2) of this section is amended by adding at the end the following new subparagraph:
“(K) Distribution from retirement plan in case of domestic abuse
“(i) In general
“Any eligible distribution to a domestic abuse victim.
“(ii) Limitation
“The aggregate amount which may be treated as an eligible distribution to a domestic abuse victim by any individual shall not exceed an amount equal to the lesser of—
“(I) $10,000, or
“(II) 50 percent of the present value of the nonforfeitable accrued benefit of the employee under the plan.
“(iii) Eligible distribution to a domestic abuse victim
“For purposes of this subparagraph—
“(I) In general
“A distribution shall be treated as an eligible distribution to a domestic abuse victim if such distribution is from an applicable eligible retirement plan and is made to an individual during the 1-year period beginning on any date on which the individual is a victim of domestic abuse by a spouse or domestic partner.
“(II) Domestic abuse
“The term ‘domestic abuse’ means physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, or intimidate the victim, or to undermine the victim’s ability to reason independently, including by means of abuse of the victim’s child or another family member living in the household.
“(iv) Treatment of plan distributions
“If a distribution to an individual would (without regard to clause (ii)) be an eligible distribution to a domestic abuse victim, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as an eligible distribution to a domestic abuse victim, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer, determined as provided in subparagraph (H)(iv)(II)) to such individual exceeds the limitation under clause (ii).
“(v) Amount distributed may be repaid
“Rules similar to the rules of subparagraph (H)(v) shall apply with respect to an individual who receives a distribution to which clause (i) applies.
“(vi) Definition and special rules
“For purposes of this subparagraph:
“(I) Applicable eligible retirement plan
“The term ‘applicable eligible retirement plan’ means an eligible retirement plan (as defined in section 402(c)(8)(B)) other than a defined benefit plan or a plan to which sections 401(a)(11) and 417 apply.
“(II) Exemption of distributions from trustee to trustee transfer and withholding rules
“For purposes of sections 401(a)(31), 402(f), and 3405, an eligible distribution to a domestic abuse victim shall not be treated as an eligible rollover distribution.
“(III) Distributions treated as meeting plan distribution requirements; self-certification
“Any distribution which the employee or participant certifies as being an eligible distribution to a domestic abuse victim shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A).
“(vii) Inflation adjustment
“In the case of a taxable year beginning in a calendar year after 2024, the $10,000 amount in clause (ii)(I) shall be increased by an amount equal to—
“(I) such dollar amount, multiplied by
“(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2023’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.
“If any amount after adjustment under the preceding sentence is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.”.
See 2022 Amendment note below.
Pub. L. 117–328, div. T, title III, § 334(c), (e), Dec. 29, 2022, 136 Stat. 5370, 5372, provided that, applicable to distributions made after the date which is 3 years after Dec. 29, 2022, subsection (t)(2) of this section is amended by adding at the end the following new subparagraph:
“(N) Qualified long-term care distributions
“(i) In general
“Any qualified long-term care distribution to which section 401(a)(39) applies.
“(ii) Exception
“If, with respect to the plan, the individual covered by the long-term care coverage to which such distribution relates is the spouse of the employee, clause (i) shall apply only if the employee and the employee’s spouse file a joint return.
“(iii) Exemption of distributions from trustee to trustee transfer and withholding rules
“For purposes of sections 401(a)(31), 402(f), and 3405, any qualified long-term care distribution described in clause (i) shall not be treated as an eligible rollover distribution.”.
See 2022 Amendment notes below.
Amendment of Subsection (t)(4)
Pub. L. 117–328, div. T, title III, § 323(a), (e), Dec. 29, 2022, 136 Stat. 5356, 5358, provided that, applicable to transfers, rollovers, and exchanges occurring after Dec. 31, 2023, subsection (t)(4) of this section is amended by inserting at the end the following new subparagraph:
“(C) Rollovers to subsequent plan
“If—
“(i) payments described in paragraph (2)(A)(iv) are being made from a qualified retirement plan,
“(ii) a transfer or a rollover from such qualified retirement plan of all or a portion of the taxpayer’s benefit under the plan is made to another qualified retirement plan, and
“(iii) distributions from the transferor and transferee plans would in combination continue to satisfy the requirements of paragraph (2)(A)(iv) if they had been made only from the transferor plan,
such transfer or rollover shall not be treated as a modification under subparagraph (A)(ii), and compliance with paragraph (2)(A)(iv) shall be determined on the basis of the combined distributions described in clause (iii).”.
See 2022 Amendment note below.
Amendment of Subsection (t)(6)
Pub. L. 117–328, div. T, title III, § 332(b)(1), (c), Dec. 29, 2022, 136 Stat. 5367, 5368, provided that, applicable to plan years beginning after Dec. 31, 2023, subsection (t)(6) of this section is amended—
(1) by striking “accounts.—In the case of” and inserting “accounts
“(A) In general
In the case of”, and
(2) by adding at the end the following new subparagraph:
“(B) Waiver in case of plan conversion to 401(k) or 403(b)
“In the case of an employee of an employer which terminates the qualified salary reduction arrangement of the employer under section 408(p) and establishes a qualified cash or deferred arrangement described in section 401(k) or purchases annuity contracts described in section 403(b), subparagraph (A) shall not apply to any amount which is paid in a rollover contribution described in section 408(d)(3) into a qualified trust under section 401(k) (but only if such contribution is subsequently subject to the rules of section 401(k)(2)(B)) or an annuity contract described in section 403(b) (but only if such contribution is subsequently subject to the rules of section 403(b)(12)) for the benefit of the employee.”.
See 2022 Amendment note below.
Editorial Notes
References in Text
The enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001, referred to in subsec. (f), means the enactment of Pub. L. 107–16, which was approved June 7, 2001.
The date of the enactment of the Small Business Job Protection Act of 1996, referred to in subsec. (n), is the date of enactment of Pub. L. 104–188, which was approved Aug. 20, 1996.
The Railroad Retirement Act of 1974, referred to in subsec. (r)(1), (2)(C)(i), (ii), is act Aug. 29, 1935, ch. 812, as amended generally by Pub. L. 93–445, title I, § 101, Oct. 16, 1974, 88 Stat. 1305, which is classified generally to subchapter IV (§ 231 et seq.) of chapter 9 of Title 45, Railroads. Sections 2(b), 3(h), and 4(e) and (h) of the Act are classified to sections 231a(b), 231b(h), and 231c(e) and (h), respectively, of Title 45. For further details and complete classification of this Act to the Code, see Codification note set out preceding section 231 of Title 45, section 231t of Title 45, and Tables.
The date of the enactment of this subparagraph, referred to in subsec. (t)(2)(G)(iv), is the date of enactment of Pub. L. 109–280, which was approved Aug. 17, 2006.
Section 1034 (as in effect on the day before the date of the enactment of this paragraph), referred to in subsec. (t)(8)(D)(i)(II), means section 1034 of this title as in effect on the day before Aug. 5, 1997. Section 1034 was repealed by Pub. L. 105–34, title III, § 312(b), Aug. 5, 1997, 111 Stat. 839.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (t)(11)(E), (F)(i)(I), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. Section 401 of the Act is classified to section 5170 of Title 42. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables.
Section 301 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, referred to in subsec. (t)(11)(F)(i)(II), is section 301 of Pub. L. 116–260, div. EE, title III, Dec. 27, 2020, 134 Stat. 3070, which is not classified to the Code.
The date of the enactment of this paragraph, referred to in subsec. (t)(11)(F)(iii)(I), is the date of enactment of Pub. L. 117–328, which was approved Dec. 29, 2022.
Amendments
2022—Subsec. (d)(3). Pub. L. 117–328, § 127(e)(3), added par. (3).
Subsec. (p)(6). Pub. L. 117–328, § 331(c)(1), added par. (6).
Subsec. (q)(2). Pub. L. 117–328, § 323(d)(2), added concluding provisions.
Subsec. (q)(3). Pub. L. 117–328, § 323(b), designated existing provisions as subpar. (A) and inserted heading, redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), and cls. (i) and (ii) of former subpar. (B) as subcls. (I) and (II), respectively, of cl. (ii), and added subpar. (B).
Subsec. (t)(2)(A). Pub. L. 117–328, § 323(d)(1), added concluding provisions.
Subsec. (t)(2)(A)(ix). Pub. L. 117–328, § 333(a), added cl. (ix).
Subsec. (t)(2)(H)(v)(I). Pub. L. 117–328, § 311(a), substituted “may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make” for “may make”.
Subsec. (t)(2)(H)(vi)(IV). Pub. L. 117–328, § 401(b)(1), substituted “403(b)(7)(A)(i)” for “403(b)(7)(A)(ii)”.
Subsec. (t)(2)(I). Pub. L. 117–328, § 115(a), added subpar. (I).
Subsec. (t)(2)(J). Pub. L. 117–328, § 127(e)(2), added subpar. (J).
Subsec. (t)(2)(K). Pub. L. 117–328, § 314(a), added subpar. (K).
Subsec. (t)(2)(L). Pub. L. 117–328, § 326(a), added subpar. (L).
Subsec. (t)(2)(M). Pub. L. 117–328, § 331(a)(1), added subpar. (M).
Subsec. (t)(2)(N). Pub. L. 117–328, § 334(c), added subpar. (N).
Subsec. (t)(4)(C). Pub. L. 117–328, § 323(a), added subpar. (C).
Subsec. (t)(6). Pub. L. 117–328, § 332(b)(1), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).
Subsec. (t)(8)(F). Pub. L. 117–328, § 331(b)(1), added subpar. (F).
Subsec. (t)(10). Pub. L. 117–328, § 308(b), substituted “and private sector firefighters” for “in governmental plans” in heading.
Subsec. (t)(10)(A). Pub. L. 117–328, § 329(a), substituted “age 50 or 25 years of service under the plan, whichever is earlier” for “age 50”.
Pub. L. 117–328, § 308(a), substituted “414(d)) or a distribution from a plan described in clause (iii), (iv), or (vi) of section 402(c)(8)(B) to an employee who provides firefighting services” for “414(d))”.
Subsec. (t)(10)(B)(i). Pub. L. 117–328, § 330(a), substituted “emergency medical services, or services as a corrections officer or as a forensic security employee providing for the care, custody, and control of forensic patients” for “or emergency medical services”.
Subsec. (t)(11). Pub. L. 117–328, § 331(a)(2), added par. (11).
2019—Subsec. (p)(2)(D), (E). Pub. L. 116–94, § 108(a), added subpar. (D) and redesignated former subpar. (D) as (E).
Subsec. (t)(2)(H). Pub. L. 116–94, § 113(a), added subpar. (H).
2015—Subsec. (t)(4)(A)(ii). Pub. L. 114–26, § 2(c), inserted “or a distribution to which paragraph (10) applies” after “other than by reason of death or disability” in introductory provisions.
Subsec. (t)(10)(A). Pub. L. 114–26, § 2(b), struck out “which is a defined benefit plan” after “section 414(d))”.
Subsec. (t)(10)(B). Pub. L. 114–26, § 2(a), substituted “means—” for “means”, designated remainder of existing provisions as cl. (i), and added cl. (ii).
Subsec. (t)(10)(B)(ii). Pub. L. 114–113 substituted “any air traffic controller” for “or any air traffic controller” and inserted before period at end “, any nuclear materials courier described in section 8331(27) or 8401(33) of such title, any member of the United States Capitol Police, any member of the Supreme Court Police, or any diplomatic security special agent of the Department of State”.
2014—Subsec. (c)(4). Pub. L. 113–295, § 221(a)(14)(A), struck out “; except that if such date was before January 1, 1954, then the annuity starting date is January 1, 1954” before period at end.
Subsec. (g)(3). Pub. L. 113–295, § 221(a)(14)(B), struck out “January 1, 1954, or” before “the first day”.
Pub. L. 113–295, § 221(a)(14)(B), which directed striking out “, whichever is later”, was executed by striking out “, whichever is the later” after “as an annuity” to reflect the probable intent of Congress.
2012—Subsec. (t)(2)(A)(viii). Pub. L. 112–141 added cl. (viii).
2010—Subsec. (a). Pub. L. 111–240 amended subsec. (a) generally. Prior to amendment, text read as follows: “Except as otherwise provided in this chapter, gross income includes any amount received as an annuity (whether for a period certain or during one or more lives) under an annuity, endowment, or life insurance contract.”
2008—Subsec. (t)(2)(G)(iv). Pub. L. 110–245, which directed amendment by striking out “, and before December 31, 2007” after “September 11, 2001”, was executed by striking out “, and on or before December 31, 2007” after “September 11, 2001”, to reflect the probable intent of Congress and the intervening amendment by Pub. L. 110–458. See Amendment note and Effective Date of 2008 Amendment note below.
Pub. L. 110–458 inserted “on or” before “before” in first sentence.
2006—Subsec. (e)(11), (12). Pub. L. 109–280, § 844(a), added par. (11) and redesignated former par. (11) as (12).
Subsec. (t)(2)(G). Pub. L. 109–280, § 827(a), added subpar. (G).
Subsec. (t)(10). Pub. L. 109–280, § 828(a), added par. (10).
2004—Subsec. (e)(9). Pub. L. 108–311, § 408(b)(3), amended Pub. L. 107–22, § 1(b)(3)(A). See 2001 Amendment note below.
Subsec. (f). Pub. L. 108–311, § 408(a)(4), substituted “Economic Growth and Tax Relief Reconciliation Act of 2001)” for “Economic Growth and Tax Relief Reconciliation Act of 2001” in concluding provisions.
Subsec. (t)(2)(D)(i)(III). Pub. L. 108–311, § 207(6), inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof” after “section 152”.
Subsec. (t)(7)(A)(iii). Pub. L. 108–311, § 207(7), substituted “152(f)(1)” for “151(c)(3)”.
Subsecs. (w), (x). Pub. L. 108–357 added subsec. (w) and redesignated former subsec. (w) as (x).
2001—Subsec. (e)(9). Pub. L. 107–22, § 1(b)(3)(A), as amended by Pub. L. 108–311, § 408(b)(3), substituted “Coverdell education savings” for “educational individual retirement” in heading.
Pub. L. 107–22, § 1(b)(1)(A), substituted “a Coverdell education savings” for “an education individual retirement”.
Pub. L. 107–16, § 402(a)(4)(A), (B), substituted “qualified tuition” for “qualified State tuition” in heading and text.
Subsec. (f). Pub. L. 107–16, § 632(a)(3)(A), substituted “section 403(b)(2)(D)(iii), as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001” for “section 403(b)(2)(D)(iii))” in concluding provisions.
Subsec. (o)(4). Pub. L. 107–16, § 641(e)(1), substituted “403(b)(8), 408(d)(3), and 457(e)(16)” for “and 408(d)(3)”.
Subsec. (r)(2)(B)(i). Pub. L. 107–90 substituted “3211(b)” for “3211(a)(2)”.
Subsec. (t)(9). Pub. L. 107–16, § 641(a)(2)(C), added par. (9).
1998—Subsec. (e)(9). Pub. L. 105–206, § 6004(d)(3)(B), added par. (9).
Subsec. (n). Pub. L. 105–206, § 6023(3), inserted “(as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996)” after “section 101(b)(2)(D)”.
Subsec. (t)(2)(A)(iv). Pub. L. 105–206, § 3436(a), which directed amendment of cl. (iv) by striking out “or” at end, could not be executed because the word “or” did not appear at end.
Subsec. (t)(2)(A)(vii). Pub. L. 105–206, § 3436(a), added cl. (vii).
Subsec. (t)(3)(A). Pub. L. 105–206, § 6023(4), substituted “(A)(v)” for “(A)(v),”.
Subsec. (t)(8)(E). Pub. L. 105–206, § 6005(c)(1), in introductory provisions, substituted “120th day” for “120 days” and “60th day” for “60 days”.
1997—Subsec. (d)(1)(B)(iii). Pub. L. 105–34, § 1075(b), inserted “If the annuity is payable over the life of a single individual, the number of anticipated payments shall be determined as follows:” before table and struck out “primary” after “If the age of the” in table.
Subsec. (d)(1)(B)(iv). Pub. L. 105–34, § 1075(a), added cl. (iv).
Subsec. (t)(2)(E). Pub. L. 105–34, § 203(a), added subpar. (E).
Subsec. (t)(2)(F). Pub. L. 105–34, § 303(a), added subpar. (F).
Subsec. (t)(7). Pub. L. 105–34, § 203(b), added par. (7).
Subsec. (t)(8). Pub. L. 105–34, § 303(b), added par. (8).
1996—Subsec. (b)(4)(A). Pub. L. 104–188, § 1704(l)(1), inserted “(determined without regard to subsection (c)(2))” after “contract”.
Subsec. (d). Pub. L. 104–188, § 1403(a), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “Treatment of Employee Contributions Under Defined Contribution Plans as Separate Contracts.—For purposes of this section, employee contributions (and any income allocable thereto) under a defined contribution plan may be treated as a separate contract.”
Subsec. (f). Pub. L. 104–188, § 1463(a), in closing provisions, inserted before period at end “, or to the extent such credits are attributable to services performed as a foreign missionary (within the meaning of section 403(b)(2)(D)(iii))”.
Subsec. (m)(2)(A) to (C). Pub. L. 104–188, § 1704(t)(2), inserted “and” at end of subpar. (A), redesignated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: “the consideration for the contract contributed by the employee for purposes of subsection (d)(1) (relating to employee’s contributions recoverable in 3 years) and subsection (e)(7) (relating to plans where substantially all contributions are employee contributions), and”.
Subsec. (p)(4)(A)(ii). Pub. L. 104–188, § 1704(t)(77), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “Special rules.—The term ‘qualified employer plan’—
“(I) shall include any plan which was (or was determined to be) a qualified employer plan or a government plan, but
“(II) shall not include a plan described in subsection (e)(7).”
Subsec. (t)(2)(B). Pub. L. 104–191, § 361(c), substituted “, (C), or (D)” for “or (C)”.
Subsec. (t)(2)(D). Pub. L. 104–191, § 361(b), added subpar. (D).
Subsec. (t)(3)(A). Pub. L. 104–191, § 361(a), struck out “(B),” after “Subparagraphs (A)(v),”.
Subsec. (t)(6). Pub. L. 104–188, § 1421(b)(4)(A), added par. (6).
1992—Subsec. (o)(4). Pub. L. 102–318 substituted “402(c)” for “402(a)(5), 402(a)(7)”.
1990—Subsec. (t)(2)(C), (D). Pub. L. 101–508, § 11802(a)(1), (2), redesignated subpar. (D) as (C) and struck out former subpar. (C) “Exceptions for distributions from employee stock ownership plans” which read as follows: “Any distribution made before January 1, 1990, to an employee from an employee stock ownership plan (as defined in section 4975(e)(7)) or a tax credit employee stock ownership plan (as defined in section 409) if—
“(i) such distribution is attributable to assets which have been invested in employer securities (within the meaning of section 409(l)) at all times during the 5-plan-year period preceding the plan year in which the distribution is made, and
“(ii) at all times during such period the requirements of sections 401(a)(28) and 409 (as in effect at such times) are met with respect to such employer securities.”
Subsec. (t)(3)(A). Pub. L. 101–508, § 11802(a)(3), substituted “and (C)” for “(C), and (D)”.
1989—Subsec. (e)(11)(A). Pub. L. 101–239, § 7815(a)(3), (5), substituted “calendar year” for “12-month period” in cls. (i) and (ii), and inserted at end “The preceding sentence shall not apply to any contract described in paragraph (5)(D).”
Subsec. (q)(2)(B). Pub. L. 101–239, § 7811(m)(4), inserted an additional closing parenthesis after “subsection (s)(6)(B))”.
1988—Subsec. (d). Pub. L. 100–647, § 1011A(b)(2)(A), added subsec. (d).
Subsec. (e)(4)(A). Pub. L. 100–647, § 5012(d)(1), inserted at end “The preceding sentence shall not apply for purposes of determining investment in the contract, except that the investment in the contract shall be increased by any amount included in gross income by reason of the amount treated as received under the preceding sentence.”
Subsec. (e)(5)(C). Pub. L. 100–647, § 5012(a)(2), substituted “Except as provided in paragraph (10) and except to the extent” for “Except to the extent”.
Subsec. (e)(5)(D). Pub. L. 100–647, § 1011A(b)(9)(B), substituted “paragraph (8)” for “paragraphs (7) and (8)”.
Subsec. (e)(7). Pub. L. 100–647, § 1011A(b)(9)(A), struck out par. (7) which related to special rules for plans where substantially all contributions are employee contributions.
Subsec. (e)(8)(A). Pub. L. 100–647, § 1011A(b)(9)(C), struck out “(other than paragraph (7))” after “this subsection”.
Subsec. (e)(9). Pub. L. 100–647, § 1011A(b)(2)(B), struck out par. (9) which related to treatment of employee contributions as separate contract.
Subsec. (e)(10). Pub. L. 100–647, § 5012(a)(1), added par. (10).
Subsec. (e)(11). Pub. L. 100–647, § 5012(d)(2), added par. (11).
Subsec. (f). Pub. L. 100–647, § 1011A(b)(1)(A), struck out “for purposes of subsections (d)(1) and (e)(7), the consideration for the contract contributed by the employee,” after “contract,” in introductory provisions.
Subsec. (n). Pub. L. 100–647, § 1011A(b)(1)(B), substituted “Subsection (b)” for “Subsections (b) and (d)”.
Subsec. (o)(2). Pub. L. 100–647, § 1011A(c)(8), struck out par. (2) which related to additional tax if amount received before age 59½.
Subsec. (p)(3)(A). Pub. L. 100–647, § 1011A(h)(1), inserted “to which paragraph (1) does not apply by reason of paragraph (2) during the period” after “loan”.
Subsec. (p)(3)(B). Pub. L. 100–647, § 1011A(h)(2), substituted “Period” for “Loans” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of subparagraph (A), a loan is described in this subparagraph—
“(i) if paragraph (1) does not apply to such loan by reason of paragraph (2), and
“(ii) if—
“(I) such loan is made to a key employee (as defined in section 416(i)), or
“(II) such loan is secured by amounts attributable to elective 401(k) or 403(b) deferrals (as defined in section 402(g)(3)).”
Subsec. (q)(2)(B). Pub. L. 100–647, § 1018(t)(1)(B), substituted “subsection (s)(6)(B))” for “subsection (s)(6)(B)))”.
Subsec. (q)(2)(D). Pub. L. 100–647, § 1011A(c)(7), inserted “designated” before “beneficiary”.
Pub. L. 100–647, §§ 1011A(c)(4), 1018(u)(8), amended subpar. (D) identically, substituting a comma for period at end.
Subsec. (q)(2)(E). Pub. L. 100–647, § 1011A(b)(9)(D), struck out “(determined without regard to subsection (e)(7))” after “subsection (e)(5)(D)”.
Subsec. (q)(2)(G). Pub. L. 100–647, § 1011A(c)(4), substituted a comma for period at end.
Subsec. (q)(2)(H). Pub. L. 100–647, § 1011A(c)(6), added subpar. (H).
Subsec. (q)(3)(B). Pub. L. 100–647, § 1011A(c)(5), substituted “taxpayer” for “employee” in cls. (i) and (ii).
Subsec. (s)(5). Pub. L. 100–647, § 1018(k)(2), substituted “certain annuity contracts” for “annuity contracts which are part of qualified plans” in heading.
Subsec. (s)(5)(D). Pub. L. 100–647, § 1018(k)(1), added subpar. (D).
Subsec. (s)(7). Pub. L. 100–647, § 1018(t)(1)(A), substituted “primary annuitant” for “primary annuity”.
Subsec. (t)(2)(A)(iv). Pub. L. 100–647, § 1011A(c)(7), inserted “designated” before “beneficiary”.
Subsec. (t)(2)(A)(v). Pub. L. 100–647, § 1011A(c)(1), struck out “on account of early retirement under the plan” after “separation from service”.
Subsec. (t)(2)(C). Pub. L. 100–647, § 1011A(c)(2), substituted “Exceptions for distributions from employee stock ownership plans” for “Certain plans” in heading and amended text generally. Prior to amendment, text read as follows:
“(i) In general.—Except as provided in clause (ii), any distribution made before January 1, 1990, to an employee from an employee stock ownership plan defined in section 4975(e)(7) to the extent that, on average, a majority of assets in the plan have been invested in employer securities (as defined in section 409(l)) for the 5-plan-year period preceding the plan year in which the distribution is made.
“(ii) Benefits distributed must be invested in employer securities for 5 years.—Clause (i) shall not apply to any distribution which is attributable to assets which have not been invested in employer securities at all times during the period referred to in clause (i).”
Subsec. (t)(3)(A). Pub. L. 100–647, § 1011A(c)(3), substituted “(C), and (D)” for “and (C)”.
Subsec. (u)(1)(A). Pub. L. 100–647, § 1011A(i)(1), inserted “(other than subchapter L)” after “subtitle”.
Subsec. (u)(3)(D). Pub. L. 100–647, § 1011A(i)(3), substituted “is purchased” for “which is purchased” and “is held” for “which is held”.
Pub. L. 100–647, § 1011A(i)(2), substituted “until all amounts under such contract are distributed to the employee for whom such contract was purchased or the employee’s beneficiary” for “until such time as the employee separates from service”.
Subsec. (u)(3)(E). Pub. L. 100–647, § 1011A(i)(3), substituted “is” for “which is”.
Subsec. (u)(4)(C). Pub. L. 100–647, § 1011A(i)(4), added subpar. (C).
Subsecs. (v), (w). Pub. L. 100–647, § 5012(b)(1), added subsec. (v) and redesignated former subsec. (v) as (w).
1986—Subsec. (b). Pub. L. 99–514, § 1122(c)(2), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “Gross income does not include that part of any amount received as an annuity under an annuity, endowment, or life insurance contract which bears the same ratio to such amount as the investment in the contract (as of the annuity starting date) bears to the expected return under the contract (as of such date). This subsection shall not apply to any amount to which subsection (d)(1) (relating to certain employee annuities) applies.”
Subsec. (d). Pub. L. 99–514, § 1122(c)(1), struck out subsec. (d) which related to employee’s annuities where the employee’s contributions were recoverable in 3 years.
Subsec. (e)(4)(C). Pub. L. 99–514, § 1826(b)(3), added subpar. (C).
Subsec. (e)(5)(D). Pub. L. 99–514, § 1122(c)(3)(B), substituted “paragraphs (7) and (8)” for “paragraph (7)” in introductory provisions.
Pub. L. 99–514, § 1854(b)(1), inserted closing provisions which read as follows: “Any dividend described in section 404(k) which is received by a participant or beneficiary shall, for purposes of this subparagraph, be treated as paid under a separate contract to which clause (ii)(I) applies.”
Subsec. (e)(7)(B). Pub. L. 99–514, § 1852(c)(1), in introductory provisions substituted “any plan or contract” for “any trust or contract”, in cl. (ii) substituted “85 percent or more of” for “85 percent of”, and inserted closing provision: “For purposes of clause (ii), deductible employee contributions (as defined in subsection (o)(5)(A)) shall not be taken into account.”
Subsec. (e)(8), (9). Pub. L. 99–514, § 1122(c)(3)(A), added pars. (8) and (9).
Subsec. (f). Pub. L. 99–514, § 1852(c)(3), in introductory provisions, substituted “subsections (d)(1) and (e)(7)” for “subsection (d)(1)” and “subsection (e)(6)” for “subsection (e)(1)(B)”.
Subsec. (m)(2)(B). Pub. L. 99–514, § 1852(c)(4)(A), inserted “and subsection (e)(7) (relating to plans where substantially all contributions are employee contributions)”.
Subsec. (m)(2)(C). Pub. L. 99–514, § 1852(c)(4)(B), substituted “subsection (e)(6)” for “subsection (e)(1)(B)”.
Subsec. (m)(5). Pub. L. 99–514, § 1852(a)(2)(C), which directed that par. (5) be amended by substituting “5-percent owners” for “owner-employees” in heading, was executed by substituting “5-percent owners” for “key employees”, to reflect the probable intent of Congress and intervening amendment by section 713(c)(1)(B) of Pub. L. 98–369.
Subsec. (m)(5)(A). Pub. L. 99–514, § 1123(d)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “This subparagraph shall apply—
“(i) to amounts which—
“(I) are received from a qualified trust described in section 401(a) or under a plan described in section 403(a), and
“(II) are received by a 5-percent owner before such owner attains the age of 59½ years, for any reason other than such owner becoming disabled (within the meaning of paragraph (7) of this section), and
“(ii) to amounts which are received from a qualified trust described in section 401(a) or under a plan described in section 403(a) at any time by a 5-percent owner, or by the successor of such owner, but only to the extent that such amounts are determined (under regulations prescribed by the Secretary) to exceed the benefits provided for such individual under the plan formula.
Clause (i) shall not apply to any amount received by an individual in his capacity as a policyholder of an annuity, endowment, or life insurance contract which is in the nature of a dividend or similar distribution and clause (i) shall not apply to amounts attributable to benefits accrued before January 1, 1985.”
Pub. L. 99–514, § 1852(a)(2)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “This paragraph shall apply—
“(i) to amounts (other than any amount received by an individual in his capacity as a policyholder of an annuity, endowment, or life insurance contract which is in the nature of a dividend or similar distribution) which are received from a qualified trust described in section 401(a) or under a plan described in section 403(a) and which are received by an individual, who is, or has been, a 5-percent owner, before such individual attains the age of 59½ years, for any reason other than the individual’s becoming disabled (within the meaning of paragraph (7) of this subsection), but only to the extent that such amounts are attributable to contributions paid on behalf of such individual (other than contributions made by him as a 5-percent owner) while he was a 5-percent owner, and
“(ii) to amounts which are received from a qualified trust described in section 401(a) or under a plan described in section 403(a) at any time by an individual who is, or has been, a 5-percent owner or by the successor of such individual, but only to the extent that such amounts are determined, under regulations prescribed by the Secretary, to exceed the benefits provided for such individual under the plan formula.”
Subsec. (m)(5)(C). Pub. L. 99–514, § 1852(a)(2)(B), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “For purposes of this paragraph, the term ‘5 percent owner’ have the same meanings as when used in section 416.”
Subsec. (m)(10). Pub. L. 99–514, § 1898(c)(1)(B), inserted “who is the spouse or former spouse of the participant”.
Subsec. (o)(5). Pub. L. 99–514, § 1101(b)(2)(C), inserted “and made for a taxable year beginning before January 1, 1987,” in subpar. (A), substituted “subsection (p)(3)(A)(i)” for “section 219(e)(3)” in subpar. (C), and substituted “subsection (p)(3)(B)” for “section 219(e)(4)” in subpar. (D).
Subsec. (p)(2)(A)(i). Pub. L. 99–514, § 1134(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “$50,000, or”.
Subsec. (p)(2)(B)(ii). Pub. L. 99–514, § 1134(d), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “Clause (i) shall not apply to any loan used to acquire, construct, reconstruct, or substantially rehabilitate any dwelling unit which within a reasonable time is to be used (determined at the time the loan is made) as a principal residence of the participant or a member of the family (within the meaning of section 267(c)(4)) of the participant.”
Subsec. (p)(2)(C), (D). Pub. L. 99–514, § 1134(b), added subpar. (C) and redesignated former subpar. (C) as (D).
Subsec. (p)(3). Pub. L. 99–514, § 1134(c), added par. (3) and redesignated former par. (3) as (4).
Pub. L. 99–514, § 1101(b)(2)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For purposes of this subsection, the term ‘qualified employer plan’ means any plan which was (or was determined to be) a qualified employer plan (as defined in section 219(e)(3) other than a plan described in subsection (e)(7)). For purposes of this subsection, such term includes any government plan (as defined in section 219(e)(4)).”
Subsec. (p)(4), (5). Pub. L. 99–514, § 1134(c), redesignated former pars. (3) and (4) as (4) and 5, respectively.
Subsec. (q). Pub. L. 99–514, § 1123(b)(1)(B), substituted “10-percent” for “5-percent” in heading.
Subsec. (q)(1). Pub. L. 99–514, § 1123(b)(1)(A), substituted “10 percent” for “5 percent”.
Subsec. (q)(2). Pub. L. 99–514, § 1123(b)(3), substituted “Paragraph (1)” for “This subsection” in introductory provisions.
Subsec. (q)(2)(B). Pub. L. 99–514, § 1826(c), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “made to a beneficiary (or to the estate of an annuitant) on or after the death of an annuitant,”.
Subsec. (q)(2)(D). Pub. L. 99–514, § 1123(b)(2), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “which is one of a series of substantially equal periodic payments made for the life of a taxpayer or over a period extending for at least 60 months after the annuity starting date,”.
Subsec. (q)(2)(E). Pub. L. 99–514, § 1852(c)(2), inserted “(determined without regard to subsection (e)(7))”.
Subsec. (q)(2)(G). Pub. L. 99–514, § 1826(d), added subpar. (G).
Subsec. (q)(2)(I), (J). Pub. L. 99–514, § 1123(b)(4), which added subpars. (I) and (J) directed the amendment of subpar. (G) by striking out “or” at the end thereof, and of subpar. (H) by striking out the period at the end thereof, could not be executed to subpars. (G) and (H) because subpar. (G) does not contain “or”, and no subpar. (H) was enacted.
Subsec. (q)(3). Pub. L. 99–514, § 1123(b)(3), added par. (3).
Subsec. (s)(1). Pub. L. 99–514, § 1826(b)(2), substituted “any holder of such contract” for “the holder of such contract” in subpars. (A) and (B).
Subsec. (s)(5). Pub. L. 99–514, § 1826(a), added par. (5).
Subsec. (s)(6), (7). Pub. L. 99–514, § 1826(b)(1), added pars. (6) and (7).
Subsec. (t). Pub. L. 99–514, § 1123(a), added subsec. (t) and redesignated former subsec. (t) as (u).
Subsecs. (u), (v). Pub. L. 99–514, § 1135(a), added subsec. (u) and redesignated former subsec. (u) as (v).
1984—Subsec. (e)(5)(D). Pub. L. 98–369, § 523(b)(1), substituted “Except as provided in paragraph (7), this” for “This”.
Subsec. (e)(5)(D)(ii)(IV). Pub. L. 98–369, § 211(b)(1), which directed substitution of “section 818(a)(3)” for “805(d)(3)” in subpar. (D)(i)(IV), was executed to subpar. (D)(ii)(IV) to reflect the probable intent of Congress.
Subsec. (e)(7). Pub. L. 98–369, § 523(a), added par. (7).
Subsec. (k). Pub. L. 98–369, § 421(b)(1), repealed subsec. (k) relating to payments in discharge of alimony.
Subsec. (m)(5). Pub. L. 98–369, § 713(c)(1)(B), substituted “key employees” for “owner-employees” in heading.
Subsec. (m)(5)(A). Pub. L. 98–369, § 521(d)(1), (2), substituted “5-percent owner” for “key employee” wherever appearing and struck out “in a top-heavy plan” at end of cl. (i).
Pub. L. 98–369, § 713(c)(1)(A), substituted “as a key employee” for “as an owner-employee” in cl. (i).
Subsec. (m)(5)(C). Pub. L. 98–369, § 521(d)(3), substituted “the term ‘5 percent owner’ ” for “the terms ‘key employee’ and ‘top-heavy plan’ ”.
Subsec. (m)(9). Pub. L. 98–369, § 713(d)(1), repealed par. (9) relating to return of excess contributions before due date of return.
Subsec. (m)(10). Pub. L. 98–397 added par. (10).
Subsec. (o)(1). Pub. L. 98–369, § 491(d)(3), substituted “402 and 403” for “402, 403, and 405”.
Subsec. (o)(3)(A). Pub. L. 98–369, § 713(b)(1)(A), inserted “(other than the exception contained in paragraph (2) thereof)”.
Subsec. (o)(4). Pub. L. 98–369, § 491(d)(4), substituted “and 408(d)(3)” for “408(d)(3), and 409(b)(3)(C)”.
Subsec. (p)(2)(A). Pub. L. 98–369, § 713(b)(1)(B), inserted at end “For purposes of clause (ii), the present value of the nonforfeitable accrued benefit shall be determined without regard to any accumulated deductible employee contributions (as defined in subsection (o)(5)(B)).”
Subsec. (p)(2)(A)(ii). Pub. L. 98–369, § 713(b)(4), substituted as cl. (ii) “the greater of (I) one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan, or (II) $10,000” for “½ of the present value of the nonforfeitable accrued benefit of the employee under the plan (but not less than $10,000)”.
Subsec. (p)(3). Pub. L. 98–369, § 523(b)(2), inserted “other than a plan described in subsection (e)(7)”.
Subsec. (q)(1). Pub. L. 98–369, § 222(a), amended par. (1) generally, striking out designation “(A) In general.—” preceding text, substituting “which is includible in gross income” for “includible in gross income which is properly allocable to any investment in the annuity contract made during the 10-year period ending on the date such amount was received by the taxpayer”, and striking out former subpar. (B), which had provided that for purposes of subpar. (A), the amount includible in gross income would be allocated to the earliest investment in the contract with respect to which amounts had not been previously fully allocated under this par.
Subsecs. (s), (t). Pub. L. 98–369, § 222(b), added subsec. (s) and redesignated former subsec. (s) as (t).
1983—Subsec. (o)(2)(A). Pub. L. 97–448, § 103(c)(6), struck out “to which the employee made one or more deductible employee contributions” after “from a qualified employer plan or government plan”.
Subsec. (p)(3). Pub. L. 97–448, § 103(c)(3)(B)(i), struck out “without regard to subparagraph (D) thereof” after “as defined in section 219(e)(3)”.
Subsecs. (r), (s). Pub. L. 98–76 added subsec. (r) and redesignated former subsec. (r) as (s).
1982—Subsec. (e). Pub. L. 97–248, § 265(a), in par. (1) substituted provisions relating to the application of this subsection to amounts received under annuity, endowment, or life insurance contracts which are not received as annuities and to amounts received as dividends for provisions which stated a general rule relating to the includability as gross income of amounts that were received under annuity, endowment, or life insurance contracts which were not received as annuities and also stated that for the purposes of this section amounts which were received as dividends would be treated as amounts not received as an annuity, in par. (2) substituted provisions stating a general rule as to the includability as gross income of amounts received before or after the annuity starting date for provisions which set out those amounts which would be treated as amounts not received as an annuity, and added pars. (3) to (6).
Subsec. (m)(4). Pub. L. 97–248, § 236(b)(1), struck out par. (4) which related to amounts constructively received with respect to assignments or pledges, and loans on contracts.
Subsec. (m)(5). Pub. L. 97–248, § 237(d)(1), (2), in subpar. (A) substituted applicability to key employees for applicability to owner-employees and added subpar. (C).
Subsec. (m)(6). Pub. L. 97–248, § 237(d)(3), struck out “except in applying paragraph (5),” after “shall”.
Subsec. (m)(8). Pub. L. 97–248, § 236(b)(1), struck out par. (8) which related to loans to owner-employees.
Subsec. (o)(3)(A). Pub. L. 97–248, § 236(b)(2), substituted reference to subsec. (p) of this section for references to subsec. (m)(4) and (8) of this section.
Subsec. (p). Pub. L. 97–248, § 236(a), added subsec. (p). Former subsec. (p) redesignated (q).
Subsec. (q). Pub. L. 97–248, § 265(b)(1), added subsec. (q). Former subsec. (q) redesignated (r).
Pub. L. 97–248, § 236(a), redesignated former subsec. (p) as (q).
Subsec. (r). Pub. L. 97–248, §§ 236(a), 265(b)(1), redesignated former subsec. (p) as (r).
1981—Subsec. (m)(6). Pub. L. 97–34, § 312(d)(1), expanded definition of “owner-employee” to include an employee within the meaning of section 401(c)(1) except in applying paragraph (5).
Subsec. (m)(8). Pub. L. 97–34, § 312(d)(2), added par. (8).
Subsec. (m)(9). Pub. L. 97–34, § 312(e)(1), added par. (9).
Subsecs. (o), (p). Pub. L. 97–34, § 311(b)(1), added subsec. (o) and redesignated former subsec. (o) as (p).
1976—Subsec. (c)(2), (3)(A). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (d)(1). Pub. L. 94–455, § 1901(a)(12), struck out in subpar. (B) “(whether or not before January 1, 1954)” after “beginning on the date”, and in provisions following subpar. (B) struck out “(under this paragraph and prior income tax laws)” after “until there has been so excluded”.
Subsec. (f). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (i). Pub. L. 94–455, § 1951(b)(1)(A), struck out subsec. (i) which related to joint annuities where first annuitant died in 1951, 1952, or 1953.
Subsec. (m)(2), (3). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (m)(4)(A). Pub. L. 94–455, § 1901(a)(13), substituted “an individual retirement account” for “an individual retirement amount”.
Subsec. (m)(5)(A)(ii), (7). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
1974—Subsec. (m)(1). Pub. L. 93–406, § 2001(h)(2), struck out par. (1) which related to certain amounts received before annuity starting date.
Subsec. (m)(4)(A). Pub. L. 93–406, § 2002(g)(10)(A), inserted references to an individual retirement amount described in section 408(a) and an individual retirement annuity described in section 408(b).
Subsec. (m)(5)(A). Pub. L. 93–406, § 2001(e)(5), (h)(3), substituted “(other than contributions made by him as an owner-employee)” for “(whether or not paid by him)” in cl. (i), and struck out cl. (iii) which had made reference to amounts which were received, by an individual who was or had been, an owner-employee, by reason of the distribution under the provisions of section 401(e)(2)(E) of his entire interest in all qualified trusts described in section 401(a) and in all plans described in section 403(a).
Subsec. (m)(5)(B). Pub. L. 93–406, § 2001(g)(1), substituted provisions that if a person receives an amount to which subsec. (m)(5) applies, his tax under this chapter for the taxable year in which such amount is received shall be increased by an amount equal to 10 percent of the portion of the amount so received which is includible in his gross income for such taxable year for provisions that if the aggregate amounts to which subsec. (m)(5) applied received by any person in his taxable year equalled or exceeded $2,500, the increase in his tax for the taxable year in which such amounts were received and attributable to such amounts could not be less than 110 percent of the aggregate increase in taxes, for the taxable year and the 4 immediately preceding taxable years, which would have resulted if such amounts had been included in such person’s gross income ratably over such taxable years, with provision for alternate computation if deductions had been allowed under section 404 for contributions paid for a number of prior taxable years less than 4.
Subsec. (m)(5)(C) to (E). Pub. L. 93–406, § 2001(g)(2)(A), struck out subpars. (C) to (E) which contained special rules for the application of subsec. (m)(5).
Subsec. (m)(6). Pub. L. 93–406, § 2002(g)(10)(B), inserted reference to an individual for whose benefit an individual retirement account or annuity described in section 408(a) or (b) is maintained.
Subsec. (n). Pub. L. 93–406, §§ 2005(c)(3), 2007(b)(2), redesignated former subsec. (o) as (n) and in heading of subsec. (n) as so redesignated inserted reference to survivor benefit plan. Former subsec. (n), which set out provisions covering the treatment to be accorded total distributions, was struck out.
Subsec. (o). Pub. L. 93–406, § 2005(c)(3), redesignated former subsec. (p) as (o). Former subsec. (o) redesignated (n) and amended.
Subsec. (p). Pub. L. 93–406, § 2005(c)(3), redesignated subsec. (p) as (o).
1969—Subsec. (n)(1). Pub. L. 91–172, § 515(b)(1), altered section to accommodate the insertion into sections 402 and 403 of provisions under which employer contributions to qualified pension, profit sharing, stock bonus, and annuity plans for plan years beginning after 1969 are to be treated as ordinary income when received in a lump sum distribution, but with such amounts to be eligible for a special averaging procedure.
Subsec. (n)(4). Pub. L. 91–172, § 515(b)(2), added par. (4).
1966—Subsecs. (o), (p). Pub. L. 89–365 added subsec. (o) and redesignated former subsec. (o) as (p).
1965—Subsec. (m)(5)(A)(i). Pub. L. 89–97, § 106(d)(2)(A), substituted “paragraph (7) of this subsection” for “section 213(g)(3)”.
Subsec. (m)(7). Pub. L. 89–97, § 106(d)(2)(B), added par. (7).
Subsec. (n)(1). Pub. L. 89–97, § 106(d)(2)(C), substituted in subpars. (A)(iii) and (B)(iii) “subsection (m)(7)” for “section 213(g)(3)”.
Subsec. (n)(3). Pub. L. 89–44 substituted “sections 31 and 39” for “section 31” in sentence following subpar. (B).
1964—Subsec. (e)(3). Pub. L. 88–272 struck out par. (3) which provided for a limit on the tax attributable to the receipt of a lump sum.
1962—Subsec. (d)(2). Pub. L. 87–792, § 4(a), designated existing provisions as cl. (A) and added cl. (B).
Subsec. (f). Pub. L. 87–834 inserted sentence providing that par. (2) shall not apply to amounts which were contributed by the employer after Dec. 31, 1962, and which would not have been includible in the gross income of the employee by reason of the application of Section 911 if such amounts had been paid directly to the employee at the time of contribution, and making such sentence inapplicable to amounts which were contributed by the employer, as determined under regulations, to provide pension or annuity credits, to the extent such credits are attributable to services performed before Jan. 1, 1963, and are provided pursuant to pension or annuity plan provisions in existence on Mar. 12, 1962, and on that date applicable to such services.
Subsecs. (m) to (o). Pub. L. 87–792, § 4(b), added subsecs. (m) and (n) and redesignated former subsec. (m) as (o).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Pub. L. 117–328, div. T, title I, § 115(c), Dec. 29, 2022, 136 Stat. 5297, provided that:
“The amendments made by this section [amending this section] shall apply to distributions made after December 31, 2023.”
Pub. L. 117–328, div. T, title I, § 127(g), Dec. 29, 2022, 136 Stat. 5330, provided that:
“The amendments made by this section [enacting sections 1193 to 1193c of Title 29, Labor, and amending this section,
section 402A of this title, and sections 1002, 1021, 1030, and 1104 of Title 29] shall apply to plan years beginning after
December 31, 2023.”
Pub. L. 117–328, div. T, title III, § 308(c), Dec. 29, 2022, 136 Stat. 5345, provided that:
“The amendments made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [Dec. 29, 2022].”
Pub. L. 117–328, div. T, title III, § 311(b), Dec. 29, 2022, 136 Stat. 5347, provided that:
“(1) In general.—
Except as provided in paragraph (2), the amendment made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [Dec. 29, 2022].
“(2) Temporary rule with respect to distributions already made.—
In the case of a
qualified birth or adoption distribution (as defined in section 72(t)(2)(H)(iii)(I) of the
Internal Revenue Code of 1986) made on or before the date of the enactment of this Act, section 72(t)(2)(H)(v)(I) of such Code (as amended by this Act) shall apply to such distribution by substituting ‘after such distribution and before
January 1, 2026’ for ‘during the 3-year period beginning on the day after the date on which such distribution was received’.”
Pub. L. 117–328, div. T, title III, § 314(b), Dec. 29, 2022, 136 Stat. 5350, provided that:
“The amendments made by this section [amending this section] shall apply to distributions made after December 31, 2023.”
Pub. L. 117–328, div. T, title III, § 323(e), Dec. 29, 2022, 136 Stat. 5358, provided that:
“(1) In general.—
The amendments made by subsections (a), (b), and (c) [amending this section and
section 6724 of this title] shall apply to transfers, rollovers, and exchanges occurring after
December 31, 2023.
“(2) Annuity payments.—
The amendment made by subsection (d) [amending this section] shall apply to distributions commencing on or after the date of the enactment of this Act [Dec. 29, 2022].
“(3) No inference.—
Nothing in the amendments made by this section shall be construed to create an inference with respect to the law in effect prior to the effective date of such amendments.”
Pub. L. 117–328, div. T, title III, § 326(b), Dec. 29, 2022, 136 Stat. 5359, provided that:
“The amendment made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [Dec. 29, 2022].”
Pub. L. 117–328, div. T, title III, § 329(b), Dec. 29, 2022, 136 Stat. 5361, provided that:
“The amendment made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [Dec. 29, 2022].”
Pub. L. 117–328, div. T, title III, § 330(b), Dec. 29, 2022, 136 Stat. 5361, provided that:
“The amendment made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [Dec. 29, 2022].”
Pub. L. 117–328, div. T, title III, § 331(a)(3), Dec. 29, 2022, 136 Stat. 5363, provided that:
“The amendments made by this subsection [amending this section] shall apply to distributions with respect to disasters the
incident period (as defined in section 72(t)(11)(F)(ii) of the
Internal Revenue Code of 1986, as added by this subsection) for which begins on or after the date which is 30 days after the date of the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 [
Dec. 27, 2020].”
Pub. L. 117–328, div. T, title III, § 331(b)(3), Dec. 29, 2022, 136 Stat. 5365, provided that:
“The amendments made by this subsection [amending this section and
section 402 of this title] shall apply to recontributions of withdrawals for home purchases with respect to disasters the
incident period (as defined in section 72(t)(11)(F)(ii) of the
Internal Revenue Code of 1986, as added by this subsection) for which begins on or after the date which is 30 days after the date of the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 [
Dec. 27, 2020].”
Pub. L. 117–328, div. T, title III, § 331(c)(2), Dec. 29, 2022, 136 Stat. 5366, provided that:
“The amendment made by paragraph (1) [amending this section] shall apply to plan loans made with respect to disasters the
incident period (as defined in section 72(t)(11)(F)(ii) of the
Internal Revenue Code of 1986, as added by this subsection) for which begins on or after the date which is 30 days after the date of the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 [
Dec. 27, 2020].”
Pub. L. 117–328, div. T, title III, § 332(c), Dec. 29, 2022, 136 Stat. 5368, provided that:
“The amendments made by this section [amending this section and
section 408 of this title] shall apply to plan years beginning after
December 31, 2023.”
Pub. L. 117–328, div. T, title III, § 333(b), Dec. 29, 2022, 136 Stat. 5368, provided that:
“The amendments made by this section [amending this section] shall apply to any determination of, or affecting, liability for taxes, interest, or penalties which is made on or after the date of the enactment of this Act [Dec. 29, 2022], without regard to whether the act (or failure to act) upon which the determination is based occurred before such date of enactment. Notwithstanding the preceding sentence, nothing in the amendments made by this section shall be construed to create an inference with respect to the law in effect prior to the effective date of such amendments.”
Pub. L. 117–328, div. T, title III, § 334(e), Dec. 29, 2022, 136 Stat. 5372, provided that:
“The amendments made by this section [enacting
section 6050Z of this title and amending this section and sections 401, 403, 457, and 6724 of this title] shall apply to distributions made after the date which is 3 years after the date of the enactment of this Act [
Dec. 29, 2022].”
Pub. L. 117–328, div. T, title IV, § 401(c), Dec. 29, 2022, 136 Stat. 5388, provided that:
“The amendments made by this section [amending this section and sections
401,
408,
408A, and
4973 of this title] shall take effect as if included in the section of the Setting Every Community Up for Retirement Enhancement Act of 2019 [div. O of
Pub. L. 116–94] to which the amendment relates.”
Effective Date of 2019 Amendment
Pub. L. 116–94, div. O, title I, § 108(b), Dec. 20, 2019, 133 Stat. 3149, provided that:
“The amendments made by subsection (a) [amending this section] shall apply to loans made after the date of the enactment of this Act [Dec. 20, 2019].”
Pub. L. 116–94, div. O, title I, § 113(b), Dec. 20, 2019, 133 Stat. 3156, provided that:
“The amendments made by this section [amending this section] shall apply to distributions made after December 31, 2019.”
Effective Date of 2015 Amendment
Pub. L. 114–113, div. Q, title III, § 308(b), Dec. 18, 2015, 129 Stat. 3089, provided that:
“The amendments made by this section [amending this section] shall apply to distributions after December 31, 2015.”
Pub. L. 114–26, § 2(d), June 29, 2015, 129 Stat. 319, provided that:
“The amendments made by this section [amending this section] shall apply to distributions after December 31, 2015.”
Effective Date of 2010 Amendment
Pub. L. 111–240, title II, § 2113(b), Sept. 27, 2010, 124 Stat. 2567, provided that:
“The amendment made by this section [amending this section] shall apply to amounts received in taxable years beginning after December 31, 2010.”
Effective Date of 2008 Amendment
Pub. L. 110–458, title I, § 112, Dec. 23, 2008, 122 Stat. 5113, provided that:
“Except as otherwise provided in this subtitle [subtitle A (§§ 101–112) of title I of
Pub. L. 110–458, see Tables for classification], the amendments made by this subtitle shall take effect as if included in the provisions of the 2006 Act [
Pub. L. 109–280] to which the amendments relate.”
Pub. L. 110–245, title I, § 107(b), June 17, 2008, 122 Stat. 1631, provided that:
“The amendment made by this section [amending this section] shall apply to individuals ordered or called to active duty on or after December 31, 2007.”
Effective Date of 2006 Amendment
Pub. L. 109–280, title VIII, § 827(c), Aug. 17, 2006, 120 Stat. 1001, provided that:
“(1) Effective date.—
The amendment made by this section [amending this section and sections
401 and
403 of this title] shall apply to distributions after
September 11, 2001.
“(2) Waiver of limitations.—
If refund or credit of any overpayment of tax resulting from the amendments made by this section is prevented at any time before the close of the 1-year period beginning on the date of the enactment of this Act [Aug. 17, 2006] by the operation of any law or rule of law (including res judicata), such refund or credit may nevertheless be made or allowed if claim therefor is filed before the close of such period.”
Pub. L. 109–280, title VIII, § 828(b), Aug. 17, 2006, 120 Stat. 1001, provided that:
“The amendment made by this section [amending this section] shall apply to distributions after the date of the enactment of this Act [Aug. 17, 2006].”
Pub. L. 109–280, title VIII, § 844(g), Aug. 17, 2006, 120 Stat. 1013, provided that:
“(1) In general.—
Except as otherwise provided in this subsection, the amendments made by this section [enacting
section 6050U of this title and amending this section and sections 848, 1035, 6724, and 7702B of this title] shall apply to contracts issued after
December 31, 1996, but only with respect to taxable years beginning after
December 31, 2009.
“(2) Tax-free exchanges.—
The amendments made by subsection (b) [amending
section 1035 of this title] shall apply with respect to exchanges occurring after
December 31, 2009.
“(4) Policy acquisition expenses.—
The amendment made by subsection (e) [amending
section 848 of this title] shall apply to specified policy acquisition expenses determined for taxable years beginning after
December 31, 2009.
Effective Date of 2004 Amendment
Pub. L. 108–357, title VIII, § 906(c), Oct. 22, 2004, 118 Stat. 1654, provided that:
“The amendments made by this section [amending this section and
section 83 of this title] shall apply to distributions on or after the date of the enactment of this Act [
Oct. 22, 2004].”
Amendment by section 207(6), (7) of Pub. L. 108–311 applicable to taxable years beginning after Dec. 31, 2004, see section 208 of Pub. L. 108–311, set out as a note under section 2 of this title.
Effective Date of 2001 Amendment
Amendment by Pub. L. 107–90 applicable to calendar years beginning after Dec. 31, 2001, see section 204(f) of Pub. L. 107–90, set out as a note under section 24 of this title.
Amendment by Pub. L. 107–22 effective July 26, 2001, see section 1(c) of Pub. L. 107–22, set out as a note under section 26 of this title.
Pub. L. 107–16, title IV, § 402(h), June 7, 2001, 115 Stat. 63, provided that:
“The amendments made by this section [amending this section and sections
135,
221,
529,
530,
4973, and
6693 of this title] shall apply to taxable years beginning after
December 31, 2001.”
Pub. L. 107–16, title VI, § 632(a)(4), June 7, 2001, 115 Stat. 115, provided that:
“The amendments made by this subsection [amending this section and sections
402,
403,
404,
415, and
664 of this title] shall apply to years beginning after
December 31, 2001.”
Amendment by section 641(a)(2)(C), (e)(1) 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.
Effective Date of 1998 Amendment
Pub. L. 105–206, title III, § 3436(b), July 22, 1998, 112 Stat. 761, provided that:
“The amendments made by this section [amending this section] shall apply to distributions after December 31, 1999.”
Amendment by section 6023(3), (4) of Pub. L. 105–206 effective July 22, 1998, see section 6023(32) of Pub. L. 105–206, set out as a note under section 34 of this title.
Amendment by sections 6004(d)(3)(B) and 6005(c)(1) 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.
Effective Date of 1997 Amendment
Pub. L. 105–34, title II, § 203(c), Aug. 5, 1997, 111 Stat. 809, provided that:
“The amendments made by this section [amending this section] shall apply to distributions after December 31, 1997, with respect to expenses paid after such date (in taxable years ending after such date), for education furnished in academic periods beginning after such date.”
Pub. L. 105–34, title III, § 303(c), Aug. 5, 1997, 111 Stat. 831, provided that:
“The amendments made by this section [amending this section] shall apply to payments and distributions in taxable years beginning after December 31, 1997.”
Pub. L. 105–34, title X, § 1075(c), Aug. 5, 1997, 111 Stat. 949, provided that:
“The amendments made by this section [amending this section] shall apply with respect to annuity starting dates beginning after December 31, 1997.”
Effective Date of 1996 Amendment
Pub. L. 104–191, title III, § 361(d), Aug. 21, 1996, 110 Stat. 2072, provided that:
“The amendments made by this section [amending this section] shall apply to distributions after December 31, 1996.”
Pub. L. 104–188, title I, § 1403(b), Aug. 20, 1996, 110 Stat. 1791, provided that:
“The amendment made by this section [amending this section] shall apply in cases where the annuity starting date is after the 90th day after the date of the enactment of this Act [Aug. 20, 1996].”
Pub. L. 104–188, title I, § 1421(e), Aug. 20, 1996, 110 Stat. 1800, provided that:
“The amendments made by this section [amending this section, sections
219,
280G,
402,
404,
408,
414,
416,
457,
3121,
3306,
3401,
4972, and
6693 of this title, sections 1021 and 1104 of Title 29, Labor, and
section 409 of Title 42, The Public Health and Welfare] shall apply to taxable years beginning after
December 31, 1996.”
Pub. L. 104–188, title I, § 1463(b), Aug. 20, 1996, 110 Stat. 1824, provided that:
“The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1996.”
Pub. L. 104–188, title I, § 1704(l)(2), Aug. 20, 1996, 110 Stat. 1882, provided that:
“The amendment made by paragraph (1) [amending this section] shall take effect as if included in the amendments made by section 1122(c) of the
Tax Reform Act of 1986 [
Pub. L. 99–514].”
Effective Date of 1988 Amendment
Amendment by sections 1011A(b)(1)(A), (B), (2), (9), (c)(1)–(8), (h), (i), and 1018(k), (t)(1)(A), (B), and (u)(8) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Amendment by section 5012(a), (b)(1), (d) of Pub. L. 100–647 applicable to contracts entered into on or after June 21, 1988, with special rule where death benefit increases by more than $150,000, certain other material changes taken into account, certain exchanges permitted, and special rule in the case of annuity contracts, see section 5012(e) of Pub. L. 100–647, set out as an Effective Date note under section 7702A of this title.
Effective Date of 1986 Amendment
Pub. L. 99–514, title XI, § 1101(c), Oct. 22, 1986, 100 Stat. 2414, provided that:
“The amendments made by this section [amending this section and
section 219 of this title] shall apply to contributions for taxable years beginning after
December 31, 1986.”
Amendment by section 1122(c)(1) of Pub. L. 99–514 applicable to individuals whose annuity starting date is after July 1, 1986, amendment by section 1122(c)(2) of Pub. L. 99–514 applicable to individuals whose annuity starting date is after Dec. 31, 1986, and amendment by section 1122(c)(3) of Pub. L. 99–514 applicable to amounts received after July 1, 1986, in the case of any plan not described in section 72(e)(8)(D) of this title, see section 1122(h)(2) of Pub. L. 99–514, set out as a note under section 402 of this title.
Pub. L. 99–514, title XI, § 1123(e), Oct. 22, 1986, 100 Stat. 2475, as amended by Pub. L. 100–647, title I, § 1011A(c)(11), (12), Nov. 10, 1988, 102 Stat. 3476, provided that:
“(1) In general.—
Except as otherwise provided in this subsection, the amendments made by this section [amending this section and sections
403 and
408 of this title] shall apply to taxable years beginning after
December 31, 1986.
“(2) Subsection (c).—
The amendments made by subsection (c) [amending
section 403 of this title] shall apply to years beginning after
December 31, 1988, but only with respect to distributions from contracts described in section 403(b) of the
Internal Revenue Code of 1986 which are attributable to assets other than assets held as of the close of the last year beginning before
January 1, 1989.
“(3) Exception where distribution commences.—The amendments made by this section shall not apply to distributions to any employee from a plan maintained by any employer if—
“(A)
as of
March 1, 1986, the
employee separated from service with the employer,
“(B)
as of
March 1, 1986, the accrued benefit of the
employee was in pay status pursuant to a written election providing a specific schedule for the distribution of the entire accrued benefit of the
employee, and
“(C)
such distribution is made pursuant to such written election.
“(5) Special rule for distributions under an annuity contract.—The amendments made by paragraphs (1), (2), and (3) of subsection (b) [amending this section] shall not apply to any distribution under an annuity contract if—
“(A)
as of March 1, 1986, payments were being made under such contract pursuant to a written election providing a specific schedule for the distribution of the taxpayer’s interest in such contract, and
“(B)
such distribution is made pursuant to such written election.”
Pub. L. 99–514, title XI, § 1134(e), Oct. 22, 1986, 100 Stat. 2484, provided that:
“The amendments made by this section [amending this section] shall apply to loans made, renewed, renegotiated, modified, or extended after December 31, 1986.”
Pub. L. 99–514, title XI, § 1135(b), Oct. 22, 1986, 100 Stat. 2485, provided that:
“The amendment made by subsection (a) [amending this section] shall apply to contributions to annuity contracts after February 28, 1986.”
Amendment by sections 1826(a), (d), 1852(a)(2), (c)(1)–(4), and 1854(b)(1) of Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.
Pub. L. 99–514, title XVIII, § 1826(b)(4), Oct. 22, 1986, 100 Stat. 2850, provided that:
“The amendments made by this subsection [amending this section] shall apply to contracts issued after the date which is 6 months after the date of the enactment of this Act [Oct. 22, 1986] in taxable years ending after such date.”
Pub. L. 99–514, title XVIII, § 1826(c), Oct. 22, 1986, 100 Stat. 2850, as amended by Pub. L. 100–647, title I, § 1018(t)(1)(D), Nov. 10, 1988, 102 Stat. 3587, provided that the amendment made by section 1826(c) of Pub. L. 99–514 is effective with respect to distributions commencing after the date 6 months after Oct. 22, 1986.
Pub. L. 99–514, title XVIII, § 1854(b)(6), Oct. 22, 1986, 100 Stat. 2878, provided that:
“The amendments made by paragraphs (1) and (2) [amending this section and
section 404 of this title] shall not apply to dividends paid before
January 1, 1986, if the taxpayer treated such dividends in a manner inconsistent with such amendments on a return filed with the Secretary before the date of the enactment of this Act [
Oct. 22, 1986].”
Pub. L. 99–514, title XVIII, § 1898(c)(1)(C), Oct. 22, 1986, 100 Stat. 2951, provided that:
“The amendments made by this paragraph [amending this section and
section 402 of this title] shall apply to payments made after the date of the enactment of this Act [
Oct. 22, 1986].”
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–397 effective Jan. 1, 1985, except as otherwise provided, see section 303(d) of Pub. L. 98–397, set out as a note under section 1001 of Title 29, Labor.
Amendment by section 211(b)(1) of Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as an Effective Date note under section 801 of this title.
Pub. L. 98–369, div. A, title II, § 222(c), July 18, 1984, 98 Stat. 774, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided:
“(1) In general.—
The amendments made by this section [amending this section] shall apply to contracts issued after the day which is 6 months after the date of the enactment of this Act [July 18, 1984] in taxable years ending after such date.
“(2) Transitional rules for contracts issued before effective date.—
In the case of any contract (other than a single premium contract) which is issued on or before the day which is 6 months after the date of the enactment of this Act, for purposes of section 72(q)(1)(A) 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 this Act), any investment in such contract which is made during any calendar year shall be treated as having been made on January 1 of such calendar year.”
Amendment by section 421(b)(1) of Pub. L. 98–369 applicable to transfers after July 18, 1984, in taxable years ending after such date, subject to election to have repeal apply to transfers after 1983 or to transfers pursuant to existing decrees, see section 421(d) of Pub. L. 98–369, set out as an Effective Date note under section 1041 of this title.
Amendment by section 491(d)(3), (4) 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(d) 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.
Pub. L. 98–369, div. A, title V, § 523(c), July 18, 1984, 98 Stat. 872, provided that:
“The amendments made by this section [amending this section] shall apply to any amount received or loan made after the 90th day after the date of enactment of this Act [July 18, 1984].”
Amendment by section 713(b)(1), (4), (c)(1)(A), (B) 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.
Pub. L. 98–369, div. A, title VII, § 713(d)(1), July 18, 1984, 98 Stat. 957, as amended by Pub. L. 99–514, title XVIII, § 1875(c)(5), Oct. 22, 1986, 100 Stat. 2895, provided that the amendment made by section 713(d)(1) of Pub. L. 98–369 is effective with respect to contributions made in taxable years beginning after Dec. 31, 1983.
Effective Date of 1983 Amendment
Pub. L. 98–76, title II, § 227(b), Aug. 12, 1983, 97 Stat. 426, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(2) Treatment of certain lump-sum payments received after december 31, 1983.—
The amendments made by
section 224 shall not apply to any portion of a lump-sum payment received after
December 31, 1983, if the generally applicable payment date for such portion was before
January 1, 1984.
“(3) No fresh start.—
For purposes of determining whether any benefit received after
December 31, 1983, is includible in gross income by reason of section 72(r) of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954], as added by this Act, the amendments made by section 224 be treated as having been in effect during all periods before 1984.”
Pub. L. 97–448, title I, § 103(c)(3)(B)(ii), Jan. 12, 1983, 96 Stat. 2376, provided that:
“The amendment made by clause (i) [amending this section] shall take effect as if the matter struck out had never been included in such paragraph.”
Amendment by title I of 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
Pub. L. 97–248, title II, § 236(c), Sept. 3, 1982, 96 Stat. 510, as amended by Pub. L. 97–448, title III, § 306(a)(11), Jan. 12, 1983, 96 Stat. 2404; Pub. L. 98–369, div. A, title V, § 554, title VII, § 713(b)(2), July 18, 1984, 98 Stat. 897, 957; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) In general.—
The amendments made by this section [amending this section] shall apply to loans, assignments, and pledges made after August 13, 1982. For purposes of the preceding sentence, the outstanding balance of any loan which is renegotiated, extended, renewed, or revised after such date shall be treated as an amount received as a loan on the date of such renegotiation, extension, renewal, or revision.
“(2) Exception for certain loans used to repay outstanding obligations.—
“(A) In general.—
Any qualified refunding loan shall not be treated as a distribution by reason of the amendments made by this section to the extent such loan is repaid before August 14, 1983.
“(B) Qualified refunding loan.—
For purposes of subparagraph (A), the term ‘qualified refunding loan’ means any loan made after August 13, 1982, and before August 14, 1983, to the extent such loan is used to make a required principal payment.
“(C) Required principal payment.—
For purposes of subparagraph (B), the term ‘required principal payment’ means any principal repayment on a loan made under the plan which was outstanding on August 13, 1982, if such repayment is required to be made after August 13, 1982, and before August 14, 1983 or if such loan was payable on demand.
“(D) Special rule for non-key employees.—
In the case of a non-key
employee (within the meaning of section 416(i)(2) of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954]), this paragraph shall be applied by substituting ‘
January 1, 1985’ for ‘
August 14, 1983’ each place it appears.
“(3) Treatment of certain renegotiations.—If—
“(B)
under the applicable State law, such loan requires the renegotiation of all outstanding prior loans made to the taxpayer under such plan, and
“(C)
the renegotiation described in subparagraph (B) does not change the interest rate on, or extend the duration of, any such outstanding prior loan,
then the renegotiation described in subparagraph (B) shall not be treated as a renegotiation, extension, renewal, or revision for purposes of paragraph (1). If the renegotiation described in subparagraph (B) does not meet the requirements of subparagraph (C) solely because it extends the duration of any such outstanding prior loan, the requirements of subparagraph (C) shall be treated as met with respect to such renegotiation if, before April 1, 1983, such extension is eliminated.”
Pub. L. 97–248, title II, § 265(c), Sept. 3, 1982, 96 Stat. 547, provided that:
“(1) Subsection (a).—
The amendments made by subsection (a) [amending this section] shall take effect on August 13, 1982.
“(2) Subsection (b).—
The amendments made by subsection (b) [amending this section and sections
46,
50A,
53,
901,
1302, and
1304 of this title] shall apply to distributions after
December 31, 1982.”
Amendment by section 237(d) 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
Pub. L. 97–34, title III, § 312(f), Aug. 13, 1981, 95 Stat. 285, as amended by Pub. L. 97–448, title I, § 103(d)(3), 96 Stat. 2378, provided that:
“(1) In general.—
Except as provided in paragraph (2), the amendments made by this section [amending this section and sections
219,
401,
404,
408,
1379, and
4972 of this title] shall apply to taxable years beginning after
December 31, 1981.
“(2) Transitional rule.—
The amendments made by subsection (d) [amending this section] shall not apply to any loan from a plan to a self-employed individual who is an
employee within the meaning of
section 401(c)(1) which is outstanding on
December 31, 1981. For purposes of the preceding sentence, any loan which is renegotiated, extended, renewed, or revised after such date shall be treated as a new loan.”
Effective Date of 1976 Amendment
Amendment by section 1901(a)(12), (13) of Pub. L. 94–455 applicable with respect to 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.
Pub. L. 94–455, title XIX, § 1951(d), Oct. 4, 1976, 90 Stat. 1841, provided that:
“Except as otherwise expressly provided, the amendments made by this section [see Tables for classification of
section 1951 of Pub. L. 94–455] shall apply with respect to taxable years beginning after
December 31, 1976.”
Effective Date of 1974 Amendment
Amendment by section 2001(e)(5) of Pub. L. 93–406 applicable to contributions made in taxable years beginning after Dec. 31, 1975, see section 2001(i)(4) of Pub. L. 93–406, set out as a note under section 401 of this title.
Pub. L. 93–406, title II, § 2001(i)(5), (6), Sept. 2, 1974, 88 Stat. 958, provided that:
“(5)
The amendments made by subsection (g) [amending this section and sections
46,
50A,
56,
404, and
901 of this title] apply to distributions made in taxable years beginning after
December 31, 1975.
“(6)
The amendments made by subsection (h) [amending this section and
section 401 of this title] apply to taxable years ending after the date of enactment of this Act [
Sept. 2, 1974].”
Amendment by section 2002(g)(10) of Pub. L. 93–406 effective on Jan. 1, 1975, see section 2002(i)(2) of Pub. L. 93–406, set out as an Effective Date note under section 4973 of this title.
Amendment by section 2005(c)(3) 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.
Amendment by section 2007(b)(2) of Pub. L. 93–406 applicable to taxable years ending on or after Sept. 21, 1972, see section 2007(c) of Pub. L. 93–406, set out as a note under section 122 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.
Pub. L. 94–455, title XIX, § 1951(b)(1)(B), Oct. 4, 1976, 90 Stat. 1836, provided that:
“Notwithstanding subparagraph (A) [repealing subsec. (i) of this section], if the provisions of
section 72(i) applied to amounts received in taxable years beginning before
January 1, 1977, under an annuity contract, then amounts received under such contract on or after such date shall be treated as if such provisions were not repealed.”
Special Rules for Use of Retirement Funds
Pub. L. 116–136, div. A, title II, § 2202, Mar. 27, 2020, 134 Stat. 340, as amended by Pub. L. 116–260, div. N, title II, § 280(a), Dec. 27, 2020, 134 Stat. 1982; Pub. L. 117–328, div. T, title V, § 501(c)(2)(A), Dec. 29, 2022, 136 Stat. 5389, provided that:
“(a) Tax-favored Withdrawals From Retirement Plans.—
“(2) Aggregate dollar limitation.—
“(A) In general.—
For purposes of this subsection, the aggregate amount of distributions received by an individual which may be treated as coronavirus-related distributions for any taxable year shall not exceed $100,000.
“(B) Treatment of plan distributions.—
If a distribution to an individual would (without regard to subparagraph (A)) be a coronavirus-related distribution, a plan shall not be treated as violating any requirement of the
Internal Revenue Code of 1986 merely because the plan treats such distribution as a coronavirus-related distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any
controlled group which includes the employer) to such individual exceeds $100,000.
“(3) Amount distributed may be repaid.—
“(A) In general.—
Any individual who receives a coronavirus-related distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make 1 or more contributions in an aggregate amount not to exceed the amount of such distribution to an
eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of the
Internal Revenue Code of 1986, as the case may be.
“(B) Treatment of repayments of distributions from eligible retirement plans other than iras.—
For purposes of the
Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a coronavirus-related distribution from an
eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received the coronavirus-related distribution in an eligible rollover distribution (as defined in section 402(c)(4) of such Code) and as having transferred the amount to the
eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
“(C) Treatment of repayments of distributions from iras.—
For purposes of the
Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a coronavirus-related distribution from an individual retirement plan (as defined by section 7701(a)(37) of such Code), then, to the extent of the amount of the contribution, the coronavirus-related distribution shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the
eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
“(4) Definitions.—For purposes of this subsection—
“(A) Coronavirus-related distribution.—Except as provided in paragraph (2), the term ‘coronavirus-related distribution’ means any distribution from an eligible retirement plan made—
“(i)
on or after January 1, 2020, and before December 31, 2020,
“(ii) to an individual—
“(I)
who is diagnosed with the virus SARS–CoV–2 or with coronavirus disease 2019 (COVID–19) by a test approved by the Centers for Disease Control and Prevention,
“(II)
whose spouse or dependent (as defined in section 152 of the
Internal Revenue Code of 1986) is diagnosed with such virus or disease by such a test, or
“(III)
who experiences adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to such virus or disease, being unable to work due to lack of child care due to such virus or disease, closing or reducing hours of a business owned or operated by the individual due to such virus or disease, or other factors as determined by the Secretary of the Treasury (or the Secretary’s delegate).
“(B) Employee certification.—
The administrator of an
eligible retirement plan may rely on an
employee’s certification that the
employee satisfies the conditions of subparagraph (A)(ii) in determining whether any distribution is a coronavirus-related distribution.
“(5) Income inclusion spread over 3-year period.—
“(A) In general.—
In the case of any coronavirus-related distribution, unless the taxpayer elects not to have this paragraph apply for any taxable year, any amount required to be included in gross income for such taxable year shall be so included ratably over the 3-taxable-year period beginning with such taxable year.
“(B) Special rule.—
For purposes of subparagraph (A), rules similar to the rules of subparagraph (E) of section 408A(d)(3) of the
Internal Revenue Code of 1986 shall apply.
“(6) Special rules.—
“(A) Exemption of distributions from trustee to trustee transfer and withholding rules.—
For purposes of sections 401(a)(31), 402(f), and 3405 of the
Internal Revenue Code of 1986, coronavirus-related distributions shall not be treated as eligible rollover distributions.
“(B) Coronavirus-related distributions treated as meeting plan distribution requirements.—
For purposes of the
Internal Revenue Code of 1986, a coronavirus-related distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A) of such Code and
section 8433(h)(1) of title 5, United States Code, and, in the case of a money purchase pension plan, a coronavirus-related distribution which is an in-service withdrawal shall be treated as meeting the distribution rules of section 401(a) of the
Internal Revenue Code of 1986.
“(b) Loans From Qualified Plans.—
“(1) Increase in limit on loans not treated as distributions.—In the case of any loan from a qualified employer plan (as defined under section 72(p)(4) of the Internal Revenue Code of 1986) to a qualified individual made during the 180-day period beginning on the date of the enactment of this Act [Mar. 27, 2020]—
“(A)
clause (i) of section 72(p)(2)(A) of such Code shall be applied by substituting ‘$100,000’ for ‘$50,000’, and
“(B)
clause (ii) of such section shall be applied by substituting ‘the present value of the nonforfeitable accrued benefit of the
employee under the plan’ for ‘one-half of the present value of the nonforfeitable accrued benefit of the
employee under the plan’.
“(2) Delay of repayment.—In the case of a qualified individual with an outstanding loan (on or after the date of the enactment of this Act) from a qualified employer plan (as defined in section 72(p)(4) of the Internal Revenue Code of 1986)—
“(A)
if the due date pursuant to subparagraph (B) or (C) of section 72(p)(2) of such Code for any repayment with respect to such loan occurs during the period beginning on the date of the enactment of this Act and ending on December 31, 2020, such due date shall be delayed for 1 year,
“(B)
any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under subparagraph (A) and any interest accruing during such delay, and
“(C)
in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of section 72(p)(2) of such Code, the period described in subparagraph (A) of this paragraph shall be disregarded.
“(3) Qualified individual.—
For purposes of this subsection, the term ‘
qualified individual’ means any individual who is described in subsection (a)(4)(A)(ii).
“(c) Provisions Relating to Plan Amendments.—
“(1) In general.—If this subsection applies to any amendment to any plan or annuity contract—
“(A)
such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph (2)(B)(i), and
“(2) Amendments to which subsection applies.—
“(A) In general.—This subsection shall apply to any amendment to any plan or annuity contract which is made—
“(i)
pursuant to any provision of this section, or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor (or the delegate of either such Secretary) under any provision of this section, and
“(ii)
on or before the last day of the first plan year beginning on or after January 1, 2025, or such later date as the Secretary of the Treasury (or the Secretary’s delegate) may prescribe.
In the case of a governmental plan (as defined in section 414(d) of the
Internal Revenue Code of 1986), clause (ii) shall be applied by substituting the date which is 2 years after the date otherwise applied under clause (ii).
“(B) Conditions.—This subsection shall not apply to any amendment unless—
“(i) during the period—
“(I)
beginning on the date that this section or the regulation described in subparagraph (A)(i) takes effect (or in the case of a plan or contract amendment not required by this section or such regulation, the effective date specified by the plan), and
“(II)
ending on the date described in subparagraph (A)(ii) (or, if earlier, the date the plan or contract amendment is adopted),
the plan or contract is operated as if such plan or contract amendment were in effect, and
“(ii)
such plan or contract amendment applies retroactively for such period.”
[Pub. L. 116–260, div. N, title II, § 280(b), Dec. 27, 2020, 134 Stat. 1982, provided that:
“The amendment made by this section [amending
section 2202 of Pub. L. 116–136, set out above] shall apply as if included in the enactment of section 2202 of the CARES Act [
Pub. L. 116–136, approved
Mar. 27, 2020].”
]
Applicability of Subsection (t)
Pub. L. 100–647, title I, § 1011A(c)(13), Nov. 10, 1988, 102 Stat. 3476, provided that:
“Section 72(t) of the 1986 Code shall apply to any distribution without regard to whether such distribution is made without the consent of the participant pursuant to section 411(a)(11) or section 417(e) of the 1986 Code.”
Plan Amendments Not Required Until January 1, 1998
For provisions directing that if any amendments made by subtitle D [§§ 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 [§§ 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 [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 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.
