26 U.S.C. § 72
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.
If any amount is received as an annuity for a period of 10 years or more or during one or more lives under any portion of an annuity, endowment, or life insurance contract-
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).
The portion of any amount received as an annuity which is excluded from gross income under paragraph (1) shall not exceed the unrecovered investment in the contract immediately before the receipt of such amount.
If-
the amount of such unrecovered investment (in excess of any amount specified in subsection (e)(5) which was not included in gross income) shall be allowed as a deduction to the annuitant for his last taxable year.
In the case of any contract which provides for payments meeting the requirements of subparagraphs (B) and (C) of subsection (c)(2), the deduction under subparagraph (A) shall be allowed to the person entitled to such payments for the taxable year in which such payments are received.
For purposes of section 172, a deduction allowed under this paragraph shall be treated as if it were attributable to a trade or business of the taxpayer.
For purposes of this subsection, the unrecovered investment in the contract as of any date is-
For purposes of subsection (b), the investment in the contract as of the annuity starting date is-
If-
then the value (computed without discount for interest) of such payments on the annuity starting date shall be subtracted from the amount determined under paragraph (1). Such value shall be computed in accordance with actuarial tables prescribed by the Secretary. For purposes of this paragraph and of subsection (e)(2)(A), the term "refund of the consideration paid" includes amounts payable after the death of an annuitant by reason of a provision in the contract for a life annuity with minimum period of payments certain, but (if part of the consideration was contributed by an employer) does not include that part of any payment to a beneficiary (or to the estate of the annuitant) which is not attributable to the consideration paid by the employee for the contract as determined under paragraph (1)(A).
For purposes of subsection (b), the expected return under the contract shall be determined as follows:
If the expected return under the contract, for the period on and after the annuity starting date, depends in whole or in part on the life expectancy of one or more individuals, the expected return shall be computed with reference to actuarial tables prescribed by the Secretary.
If subparagraph (A) does not apply, the expected return is the aggregate of the amounts receivable under the contract as an annuity.
For purposes of this section, the annuity starting date in the case of any contract is the first day of the first period for which an amount is received as an annuity under the contract.
In the case of any amount received as an annuity under a qualified employer retirement plan-
Gross income shall not include so much of any monthly annuity payment under a qualified employer retirement plan as does not exceed the amount obtained by dividing-
Rules similar to the rules of paragraphs (2) and (3) of subsection (b) shall apply for purposes of this paragraph.
If the annuity is payable over the life of a single individual, the number of anticipated payments shall be determined as follows:
| If the age of the annuitant on the annuity starting date is: | The number of anticipated payments is: |
| Not more than 55 | 360 |
| More than 55 but not more than 60 | 310 |
| More than 60 but not more than 65 | 260 |
| More than 65 but not more than 70 | 210 |
| More than 70 | 160. |
If the annuity is payable over the lives of more than 1 individual, the number of anticipated payments shall be determined as follows:
| If the combined ages of annuitants are: | The number is: |
| Not more than 110 | 410 |
| More than 110 but not more than 120 | 360 |
| More than 120 but not more than 130 | 310 |
| More than 130 but not more than 140 | 260 |
| More than 140 | 210. |
For purposes of this paragraph, investment in the contract shall be determined under subsection (c)(1) without regard to subsection (c)(2).
If, in connection with the commencement of annuity payments under any qualified employer retirement plan, the taxpayer receives a lump-sum payment-
This paragraph shall not apply in any case where the primary annuitant has attained age 75 on the annuity starting date unless there are fewer than 5 years of guaranteed payments under the annuity.
In any case where the annuity payments are not made on a monthly basis, appropriate adjustments in the application of this paragraph shall be made to take into account the period on the basis of which such payments are made.
For purposes of this paragraph, the term "qualified employer retirement plan" means any plan or contract described in paragraph (1), (2), or (3) of section 4974(c).
For purposes of this section, employee contributions (and any income allocable thereto) under a defined contribution plan may be treated as a separate contract.
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.
This subsection shall apply to any amount which-
if no provision of this subtitle (other than this subsection) applies with respect to such amount.
For purposes of this section, any amount received which is in the nature of a dividend or similar distribution shall be treated as an amount not received as an annuity.
Any amount to which this subsection applies-
For purposes of paragraph (2)(B)-
Any amount to which this subsection applies shall be treated as allocable to income on the contract to the extent that such amount does not exceed the excess (if any) of-
Any amount to which this subsection applies shall be treated as allocable to investment in the contract to the extent that such amount is not allocated to income under subparagraph (A).
For purposes of paragraph (2)(B)-
If, during any taxable year, an individual-
such amount or portion shall be treated as received under the contract as an amount not received as an annuity. 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.
Any amount described in paragraph (1)(B) shall not be included in gross income under paragraph (2)(B)(i) to the extent such amount is retained by the insurer as a premium or other consideration paid for the contract.
If an individual who holds an annuity contract transfers it without full and adequate consideration, such individual shall be treated as receiving an amount equal to the excess of-
under the contract as an amount not received as an annuity.
Clause (i) shall not apply to any transfer to which section 1041(a) (relating to transfers of property between spouses or incident to divorce) applies.
If under clause (i) an amount is included in the gross income of the transferor of an annuity contract, the investment in the contract of the transferee in such contract shall be increased by the amount so included.
In any case to which this paragraph applies-
the amount shall be included in gross income, but only to the extent it exceeds the investment in the contract.
This paragraph shall apply to contracts entered into before August 14, 1982. Any amount allocable to investment in the contract after August 13, 1982, shall be treated as from a contract entered into after such date.
Except as provided in paragraph (10) and except to the extent prescribed by the Secretary by regulations, this paragraph shall apply to any amount not received as an annuity which is received under a life insurance or endowment contract.
Except as provided in paragraph (8), this paragraph shall apply to any amount received-
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.
This paragraph shall apply to-
In the case of any amount to which the preceding sentence applies, the rule of paragraph (2)(A) shall not apply.
For purposes of this subsection, the investment in the contract as of any date is-
Notwithstanding any other provision of this subsection, in the case of any amount received before the annuity starting date from a trust or contract described in paragraph (5)(D), paragraph (2)(B) shall apply to such amounts.
For purposes of paragraph (2)(B), the amount allocated to the investment in the contract shall be the portion of the amount described in subparagraph (A) which bears the same ratio to such amount as the investment in the contract bears to the account balance. The determination under the preceding sentence shall be made as of the time of the distribution or at such other time as the Secretary may prescribe.
If an employee does not have a nonforfeitable right to any amount under any trust or contract to which subparagraph (A) applies, such amount shall not be treated as part of the account balance.
In the case of a plan which on May 5, 1986, permitted withdrawal of any employee contributions before separation from service, subparagraph (A) shall apply only to the extent that amounts received before the annuity starting date (when increased by amounts previously received under the contract after December 31, 1986) exceed the investment in the contract as of December 31, 1986.
Notwithstanding any other provision of this subsection, paragraph (2)(B) shall apply to amounts received under a qualified tuition program (as defined in section 529(b)) or under a Coverdell education savings account (as defined in section 530(b)). The rule of paragraph (8)(B) shall apply for purposes of this paragraph.
Notwithstanding paragraph (5)(C), in the case of any modified endowment contract (as defined in section 7702A)-
Notwithstanding subparagraph (A), paragraph (4)(A) shall not apply to any assignment (or pledge) of a modified endowment contract if such assignment (or pledge) is solely to cover the payment of expenses referred to in section 7702(e)(2)(C)(iii) and if the maximum death benefit under such contract does not exceed $25,000.
Notwithstanding paragraphs (2), (5)(C), and (10), in the case of any charge against the cash value of an annuity contract or the cash surrender value of a life insurance contract made as payment for coverage under a qualified long-term care insurance contract which is part of or a rider on such annuity or life insurance contract-
For purposes of determining the amount includible in gross income under this subsection-
The preceding sentence shall not apply to any contract described in paragraph (5)(D).
The Secretary may by regulations prescribe such additional rules as may be necessary or appropriate to prevent avoidance of the purposes of this subsection through serial purchases of contracts or otherwise.
In computing, for purposes of subsection (c)(1)(A), the aggregate amount of premiums or other consideration paid for the contract, and for purposes of subsection (e)(6), the aggregate premiums or other consideration paid, amounts contributed by the employer shall be included, but only to the extent that-
Paragraph (2) shall not apply to amounts which were contributed by the employer after December 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. The preceding sentence shall not apply to amounts which were contributed by the employer, as determined under regulations prescribed by the Secretary, to provide pension or annuity credits, to the extent such credits are attributable to services performed before January 1, 1963, and are provided pursuant to pension or annuity plan provisions in existence on March 12, 1962, and on that date applicable to such services, 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), as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001).
Where any contract (or any interest therein) is transferred (by assignment or otherwise) for a valuable consideration, to the extent that the contract (or interest therein) does not, in the hands of the transferee, have a basis which is determined by reference to the basis in the hands of the transferor, then-
For purposes of this subsection, the term "transferee" includes a beneficiary of, or the estate of, the transferee.
If-
then, for purposes of this subtitle, no part of such lump sum shall be considered as includible in gross income at the time such lump sum first became payable.
Notwithstanding any other provision of this section, if any amount is held under an agreement to pay interest thereon, the interest payments shall be included in gross income.
For purposes of this section, the term "endowment contract" includes a face-amount certificate, as defined in section 2(a)(15) of the Investment Company Act of 1940 (15 U.S.C., sec. 80a-2), issued after December 31, 1954.
In computing-
any amount allowed as a deduction with respect to the contract under section 404 which was paid while the employee was an employee within the meaning of section 401(c)(1) shall be treated as consideration contributed by the employer, and there shall not be taken into account any portion of the premiums or other consideration for the contract paid while the employee was an owner-employee which is properly allocable (as determined under regulations prescribed by the Secretary) to the cost of life, accident, health, or other insurance.
For purposes of this subsection, the term "owner-employee" has the meaning assigned to it by section 401(c)(3) and includes an individual for whose benefit an individual retirement account or annuity described in section 408(a) or (b) is maintained. For purposes of the preceding sentence, the term "owner-employee" shall include an employee within the meaning of section 401(c)(1).
For purposes of this section, an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. An individual shall not be considered to be disabled unless he furnishes proof of the existence thereof in such form and manner as the Secretary may require.
Under regulations prescribed by the Secretary, in the case of a distribution or payment made to an alternate payee who is the spouse or former spouse of the participant pursuant to a qualified domestic relations order (as defined in section 414(p)), the investment in the contract as of the date prescribed in such regulations shall be allocated on a pro rata basis between the present value of such distribution or payment and the present value of all other benefits payable with respect to the participant to which such order relates.
Subsection (b) shall not apply in the case of amounts received after December 31, 1965, as an annuity under chapter 73 of title 10 of the United States Code, but all such amounts shall be excluded from gross income until there has been so excluded (under section 122(b)(1) or this section, including amounts excluded before January 1, 1966) an amount equal to the consideration for the contract (as defined by section 122(b)(2)), plus any amount treated pursuant to section 101(b)(2)(D) (as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996) as additional consideration paid by the employee. Thereafter all amounts so received shall be included in gross income.
For purposes of this section and sections 402 and 403, notwithstanding section 414(h), any deductible employee contribution made to a qualified employer plan or government plan shall be treated as an amount contributed by the employer which is not includible in the gross income of the employee.
For purposes of this subsection, rules similar to the rules provided by subsection (p) (other than the exception contained in paragraph (2) thereof) shall apply.
To the extent any amount of accumulated deductible employee contributions of an employee are applied to the purchase of life insurance contracts, such amount shall be treated as distributed to the employee in the year so applied.
For purposes of sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16), the Secretary shall prescribe regulations providing for such allocations of amounts attributable to accumulated deductible employee contributions, and for such other rules, as may be necessary to insure that such accumulated deductible employee contributions do not become eligible for additional tax benefits (or freed from limitations) through the use of rollovers.
For purposes of this subsection-
The term "deductible employee contributions" means any qualified voluntary employee contribution (as defined in section 219(e)(2)) made after December 31, 1981, in a taxable year beginning after such date and made for a taxable year beginning before January 1, 1987, and allowable as a deduction under section 219(a) for such taxable year.
The term "accumulated deductible employee contributions" means the deductible employee contributions-
The term "qualified employer plan" has the meaning given to such term by subsection (p)(3)(A)(i).
The term "government plan" has the meaning given such term by subsection (p)(3)(B).
Unless the plan specifies otherwise, any distribution from such plan shall not be treated as being made from the accumulated deductible employee contributions, until all other amounts to the credit of the employee have been distributed.
For purposes of this section-
If during any taxable year a participant or beneficiary receives (directly or indirectly) any amount as a loan from a qualified employer plan, such amount shall be treated as having been received by such individual as a distribution under such plan.
If during any taxable year a participant or beneficiary assigns (or agrees to assign) or pledges (or agrees to pledge) any portion of his interest in a qualified employer plan, such portion shall be treated as having been received by such individual as a loan from such plan.
Paragraph (1) shall not apply to any loan to the extent that such loan (when added to the outstanding balance of all other loans from such plan whether made on, before, or after August 13, 1982), does not exceed the lesser of-
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)).
Subparagraph (A) shall not apply to any loan unless such loan, by its terms, is required to be repaid within 5 years.
Clause (i) shall not apply to any loan used to acquire any dwelling unit which within a reasonable time is to be used (determined at the time the loan is made) as the principal residence of the participant.
Except as provided in regulations, this paragraph shall not apply to any loan unless substantially level amortization of such loan (with payments not less frequently than quarterly) is required over the term of the loan.
Subparagraph (A) shall not apply to any loan which is made through the use of any credit card or any other similar arrangement.
For purposes of this paragraph-
No deduction otherwise allowable under this chapter shall be allowed under this chapter for any interest paid or accrued on any loan to which paragraph (1) does not apply by reason of paragraph (2) during the period described in subparagraph (B).
For purposes of subparagraph (A), the period described in this subparagraph is the period-
For purposes of this subsection-
The term "qualified employer plan" means-
The term "qualified employer plan" shall include any plan which was (or was determined to be) a qualified employer plan or a government plan.
The term "government plan" means any plan, whether or not qualified, established and maintained for its employees by the United States, by a State or political subdivision thereof, or by an agency or instrumentality of any of the foregoing.
For purposes of this subsection, any amount received as a loan under a contract purchased under a qualified employer plan (and any assignment or pledge with respect to such a contract) shall be treated as a loan under such employer plan.
In the case of any loan from a qualified employer plan to a qualified individual made during the applicable period-
In the case of a qualified individual with respect to any qualified disaster with an outstanding loan from a qualified employer plan on or after the applicable date with respect to the qualified disaster-
For purposes of this paragraph-
The term "qualified individual" means any individual-
The applicable period with respect to any disaster is the period-
For purposes of this paragraph-
If any taxpayer receives any amount under an annuity contract, the taxpayer's 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 such amount which is includible in gross income.
Paragraph (1) shall not apply to any distribution-
For purposes of subparagraph (D), periodic payments shall not fail to be treated as substantially equal merely because they are amounts received as an annuity, and such periodic payments shall be deemed to be substantially equal if they are payable over a period described in subparagraph (D) and would satisfy the requirements applicable to annuity payments under section 401(a)(9) if such requirements applied.
If-
the taxpayer's tax for the 1st taxable year in which such modification occurs shall be increased by an amount, determined under regulations, equal to the tax which (but for paragraph (2)(D)) would have been imposed, plus interest for the deferral period (within the meaning of subsection (t)(4)(B)).
If-
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).
Notwithstanding any other provision of law, any benefit provided under the Railroad Retirement Act of 1974 (other than a tier 1 railroad retirement benefit) shall be treated for purposes of this title as a benefit provided under an employer plan which meets the requirements of section 401(a).
For purposes of paragraph (1)-
For purposes of subparagraph (A)-
With respect to compensation paid after 1984, the tier 2 portion shall be the taxes imposed by sections 3201(b), 3211(b), and 3221(b).
With respect to compensation paid before 1985 for services rendered after September 30, 1981, the tier 2 portion shall be-
With respect to compensation paid for services rendered after December 31, 1983, and before 1985, subclause (I) shall be applied by substituting "2.75 percent" for "2 percent", and subclause (II) shall be applied by substituting "12.75 percent" for "11.75 percent".
With respect to compensation paid for services rendered during any period before October 1, 1981, the tier 2 portion shall be the excess (if any) of-
For purposes of paragraph (1), no amount treated as an employee contribution under this paragraph shall be allocated to-
For purposes of paragraph (1), the term "tier 1 railroad retirement benefit" has the meaning given such term by section 86(d)(4).
A contract shall not be treated as an annuity contract for purposes of this title unless it provides that-
If-
then for purposes of paragraph (1), the portion referred to in subparagraph (A) shall be treated as distributed on the day on which such distributions begin.
If the designated beneficiary referred to in paragraph (2)(A) is the surviving spouse of the holder of the contract, paragraphs (1) and (2) shall be applied by treating such spouse as the holder of such contract.
For purposes of this subsection, the term "designated beneficiary" means any individual designated a beneficiary by the holder of the contract.
This subsection shall not apply to any annuity contract-
For purposes of this subsection, if the holder of the contract is not an individual, the primary annuitant shall be treated as the holder of the contract.
For purposes of subparagraph (A), the term "primary annuitant" means the individual, the events in the life of whom are of primary importance in affecting the timing or amount of the payout under the contract.
For purposes of this subsection, in the case of a holder of an annuity contract which is not an individual, if there is a change in a primary annuitant (as defined in paragraph (6)(B)), such change shall be treated as the death of the holder.
If any taxpayer receives any amount from a qualified retirement plan (as defined in section 4974(c)), the taxpayer's 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 such amount which is includible in gross income.
Except as provided in paragraphs (3) and (4), paragraph (1) shall not apply to any of the following distributions:
Distributions which are-
For purposes of clause (iv), periodic payments shall not fail to be treated as substantially equal merely because they are amounts received as an annuity, and such periodic payments shall be deemed to be substantially equal if they are payable over a period described in clause (iv) and satisfy the requirements applicable to annuity payments under section 401(a)(9).
Distributions made to the employee (other than distributions described in subparagraph (A), (C), or (D)) to the extent such distributions do not exceed the amount allowable as a deduction under section 213 to the employee for amounts paid during the taxable year for medical care (determined without regard to whether the employee itemizes deductions for such taxable year).
Any distribution to an alternate payee pursuant to a qualified domestic relations order (within the meaning of section 414(p)(1)).
Distributions from an individual retirement plan to an individual after separation from employment-
Clause (i) shall not apply to any distribution made after the individual has been employed for at least 60 days after the separation from employment to which clause (i) applies.
To the extent provided in regulations, a self-employed individual shall be treated as meeting the requirements of clause (i)(I) if, under Federal or State law, the individual would have received unemployment compensation but for the fact the individual was self-employed.
Distributions to an individual from an individual retirement plan to the extent such distributions do not exceed the qualified higher education expenses (as defined in paragraph (7)) of the taxpayer for the taxable year. Distributions shall not be taken into account under the preceding sentence if such distributions are described in subparagraph (A), (C), or (D) or to the extent paragraph (1) does not apply to such distributions by reason of subparagraph (B).
Distributions to an individual from an individual retirement plan which are qualified first-time homebuyer distributions (as defined in paragraph (8)). Distributions shall not be taken into account under the preceding sentence if such distributions are described in subparagraph (A), (C), (D), or (E) or to the extent paragraph (1) does not apply to such distributions by reason of subparagraph (B).
Any qualified reservist distribution.
Any individual who receives a qualified reservist distribution may, at any time during the 2-year period beginning on the day after the end of the active duty period, make one or more contributions to an individual retirement plan of such individual in an aggregate amount not to exceed the amount of such distribution. The dollar limitations otherwise applicable to contributions to individual retirement plans shall not apply to any contribution made pursuant to the preceding sentence. No deduction shall be allowed for any contribution pursuant to this clause.
For purposes of this subparagraph, the term "qualified reservist distribution" means any distribution to an individual if-
This subparagraph applies to individuals ordered or called to active duty after September 11, 2001. In no event shall the 2-year period referred to in clause (ii) end before the date which is 2 years after the date of the enactment of this subparagraph.
Any qualified birth or adoption distribution.
The aggregate amount which may be treated as qualified birth or adoption distributions by any individual with respect to any birth or adoption shall not exceed $5,000.
For purposes of this subparagraph-
The term "qualified birth or adoption distribution" means any distribution from an applicable eligible retirement plan to an individual if made during the 1-year period beginning on the date on which a child of the individual is born or on which the legal adoption by the individual of an eligible adoptee is finalized.
The term "eligible adoptee" means any individual (other than a child of the taxpayer's spouse) who has not attained age 18 or is physically or mentally incapable of self-support.
If a distribution to an individual would (without regard to clause (ii)) be a qualified birth or adoption distribution, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as a qualified birth or adoption 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 $5,000.
For purposes of subclause (I), the term "controlled group" means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.
Any individual who receives a qualified birth or adoption distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable 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), as the case may be.
The aggregate amount of contributions made by an individual under subclause (I) to any applicable eligible retirement plan which is not an individual retirement plan shall not exceed the aggregate amount of qualified birth or adoption distributions which are made from such plan to such individual. Subclause (I) shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in subclause (I)) to such applicable eligible retirement plan.
If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an applicable 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 such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
For purposes of this subparagraph-
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.
For purposes of sections 401(a)(31), 402(f), and 3405, a qualified birth or adoption distribution shall not be treated as an eligible rollover distribution.
A distribution shall not be treated as a qualified birth or adoption distribution with respect to any child or eligible adoptee unless the taxpayer includes the name, age, and TIN of such child or eligible adoptee on the taxpayer's return of tax for the taxable year.
Any qualified birth or adoption 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).
Any emergency personal expense distribution.
Not more than 1 distribution per calendar year may be treated as an emergency personal expense distribution by any individual.
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-
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.
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).
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.
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-
Rules similar to the rules of subclauses (II) and (IV) of subparagraph (H)(vi) shall apply to any emergency personal expense distribution.
Distributions from a pension-linked emergency savings account pursuant to section 402A(e).
Any eligible distribution to a domestic abuse victim.
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-
For purposes of this subparagraph-
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.
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.
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).
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.
For purposes of this subparagraph:
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.
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.
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).
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-
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.
Distributions which are made to the employee who is a terminally ill individual on or after the date on which such employee has been certified by a physician as having a terminal illness.
For purposes of this subparagraph, the term "terminally ill individual" has the same meaning given such term under section 101(g)(4)(A), except that "84 months" shall be substituted for "24 months".
For purposes of this subparagraph, an employee shall not be considered to be a terminally ill individual unless such employee furnishes sufficient evidence to the plan administrator in such form and manner as the Secretary may require.
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.
Any qualified disaster recovery distribution.
Subparagraphs (A)(v) and (C) of paragraph (2) shall not apply to distributions from an individual retirement plan.
Paragraph (2)(A)(iv) shall not apply to any amount paid from a trust described in section 401(a) which is exempt from tax under section 501(a) or from a contract described in section 72(e)(5)(D)(ii) unless the series of payments begins after the employee separates from service.
If-
the taxpayer's tax for the 1st taxable year in which such modification occurs shall be increased by an amount, determined under regulations, equal to the tax which (but for paragraph (2)(A)(iv)) would have been imposed, plus interest for the deferral period.
For purposes of this paragraph, the term "deferral period" means the period beginning with the taxable year in which (without regard to paragraph (2)(A)(iv)) the distribution would have been includible in gross income and ending with the taxable year in which the modification described in subparagraph (A) occurs.
If-
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).
For purposes of this subsection, the term "employee" includes any participant, and in the case of an individual retirement plan, the individual for whose benefit such plan was established.
In the case of any amount received from a simple retirement account (within the meaning of section 408(p)) during the 2-year period beginning on the date such individual first participated in any qualified salary reduction arrangement maintained by the individual's employer under section 408(p)(2), paragraph (1) shall be applied by substituting "25 percent" for "10 percent".
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.
For purposes of paragraph (2)(E)-
The term "qualified higher education expenses" means qualified higher education expenses (as defined in section 529(e)(3)) for education furnished to-
at an eligible educational institution (as defined in section 529(e)(5)).
The amount of qualified higher education expenses for any taxable year shall be reduced as provided in section 25A(g)(2).
For purposes of paragraph (2)(F)-
The term "qualified first-time homebuyer distribution" means any payment or distribution received by an individual to the extent such payment or distribution is used by the individual before the close of the 120th day after the day on which such payment or distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer who is such individual, the spouse of such individual, or any child, grandchild, or ancestor of such individual or the individual's spouse.
The aggregate amount of payments or distributions received by an individual which may be treated as qualified first-time homebuyer distributions for any taxable year shall not exceed the excess (if any) of-
For purposes of this paragraph, the term "qualified acquisition costs" means the costs of acquiring, constructing, or reconstructing a residence. Such term includes any usual or reasonable settlement, financing, or other closing costs.
For purposes of this paragraph-
The term "first-time homebuyer" means any individual if-
The term "principal residence" has the same meaning as when used in section 121.
The term "date of acquisition" means the date-
If any distribution from any individual retirement plan fails to meet the requirements of subparagraph (A) solely by reason of a delay or cancellation of the purchase or construction of the residence, the amount of the distribution may be contributed to an individual retirement plan as provided in section 408(d)(3)(A)(i) (determined by substituting "120th day" for "60th day" in such section), except that-
Any individual who received a qualified distribution may, during the applicable period, make one or more contributions in an aggregate amount not to exceed the amount of such qualified distribution to an eligible retirement plan (as defined in section 402(c)(8)(B)) 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), or 408(d)(3), as the case may be.
Rules similar to the rules of clauses (ii) and (iii) of paragraph (11)(C) shall apply for purposes of this subsection.
For purposes of this subparagraph, the term "qualified distribution" means any distribution-
For purposes of this subparagraph, the term "applicable period" means, in the case of a principal residence in a qualified disaster area with respect to any qualified disaster, the period beginning on the first day of the incident period of such qualified disaster and ending on the date which is 180 days after the applicable date with respect to such disaster.
For purposes of this subsection, a distribution from an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A) shall be treated as a distribution from a qualified retirement plan described in 4974(c)(1) to the extent that such distribution is attributable to an amount transferred to an eligible deferred compensation plan from a qualified retirement plan (as defined in section 4974(c)).
In the case of a distribution to a qualified public safety employee from a governmental plan (within the meaning of section 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, paragraph (2)(A)(v) shall be applied by substituting "age 50 or 25 years of service under the plan, whichever is earlier" for "age 55".
For purposes of this paragraph, the term "qualified public safety employee" means-
For purposes of paragraph (2)(M)-
Except as provided in subparagraph (B), the term "qualified disaster recovery distribution" means any distribution made-
For purposes of this subsection, the aggregate amount of distributions received by an individual which may be treated as qualified disaster recovery distributions with respect to any qualified disaster in all taxable years shall not exceed $22,000.
If a distribution to an individual would (without regard to clause (i)) be a qualified disaster recovery distribution, a plan shall not be treated as violating any requirement of this title merely because the plan treats such distribution as a qualified disaster recovery 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 $22,000 with respect to the same qualified disaster.
For purposes of clause (ii), the term "controlled group" means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.
Any individual who receives a qualified disaster recovery distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one 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), as the case may be.
For purposes of this title, if a contribution is made pursuant to clause (i) with respect to a qualified disaster recovery distribution from a 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 qualified disaster recovery distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
For purposes of this title, if a contribution is made pursuant to clause (i) with respect to a qualified disaster recovery distribution from an individual retirement plan, then, to the extent of the amount of the contribution, the qualified disaster recovery distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
In the case of any qualified disaster recovery distribution, unless the taxpayer elects not to have this subparagraph 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.
For purposes of clause (i), rules similar to the rules of subparagraph (E) of section 408A(d)(3) shall apply.
For purposes of this paragraph and paragraph (8), the term "qualified disaster" means any disaster with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act after December 27, 2020.
For purposes of this paragraph and paragraph (8)-
The term "qualified disaster area" means, with respect to any qualified disaster, the area with respect to which the major disaster was declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
Such term shall not include any area which is a qualified disaster area solely by reason of section 301 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.
The term "incident period" means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred.
The term "applicable date" means the latest of-
The term "eligible retirement plan" shall have the meaning given such term by section 402(c)(8)(B).
For purposes of sections 401(a)(31), 402(f), and 3405, qualified disaster recovery distributions shall not be treated as eligible rollover distributions.
For purposes of this title-
If any annuity contract is held by a person who is not a natural person-
For purposes of this paragraph, holding by a trust or other entity as an agent for a natural person shall not be taken into account.
For purposes of paragraph (1), the term "income on the contract" means, with respect to any taxable year of the policyholder, the excess of-
Where necessary to prevent the avoidance of this subsection, the Secretary may substitute "fair market value of the contract" for "net surrender value of the contract" each place it appears in the preceding sentence.
For purposes of this paragraph, the term "net premiums" means the amount of premiums paid under the contract reduced by any policyholder dividends.
This subsection shall not apply to any annuity contract which-
For purposes of this subsection, the term "immediate annuity" means an annuity-
If any taxpayer receives any amount under a modified endowment contract (as defined in section 7702A), the taxpayer's 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 such amount which is includible in gross income.
Paragraph (1) shall not apply to any distribution-
Notwithstanding any other provision of this section, for purposes of determining the portion of any distribution which is includible in gross income of a distributee who is a citizen or resident of the United States, the investment in the contract shall not include any applicable nontaxable contributions or applicable nontaxable earnings.
For purposes of this subsection, the term "applicable nontaxable contribution" means any employer or employee contribution-
For purposes of this subsection, the term "applicable nontaxable earnings" means earnings-
The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this subsection, including regulations treating contributions and earnings as not subject to tax under the laws of any foreign country where appropriate to carry out the purposes of this subsection.
For limitation on adjustments to basis of annuity contracts sold, see section 1021.
1 So in original. Probably should be paragraph "(2)(B)".
2 So in original. The word "or" probably should not appear.
3 So in original. Probably should refer to section 8336a.
5 See References in Text note below.
26 U.S.C. § 72
Amendment of Subsection (t)(2) 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"Any qualified long-term care distribution to which section 401(a)(39) applies."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. "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 note below.
EDITORIAL NOTES
REFERENCES IN TEXTThe 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, §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.
AMENDMENTS2022-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 591/2.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 591/2 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 591/2 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 "1/2 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 [div. T of Pub. L. 117-328]) 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 2014 AMENDMENT Amendment by Pub. L. 113-295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113-295, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111-240, §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, §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, §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, §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, §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, §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."(3) INFORMATION REPORTING.-The amendments made by subsection (d) [enacting section 6050U of this title and amending section 6724 of this title] shall apply to charges made 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."(5) TECHNICAL AMENDMENT.-The amendment made by subsection (f) [amending section 7702B of this title] shall take effect as if included in section 321(a) of the Health Insurance Portability and Accountability Act of 1996 [Pub. L. 104-191]."
EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108-357, §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, §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, §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, §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, §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, §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, §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, §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, §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, §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, §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, §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 1992 AMENDMENT Amendment by Pub. L. 102-318 applicable to distributions after Dec. 31, 1992, see section 521(e) of Pub. L. 102-318, set out as a note under section 402 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such amendment relates, see section 7817 of Pub. L. 101-239, set out as a note under section 1 of this title.
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."(4) TRANSITION RULE.-The amendments made by this section shall not apply with respect to any benefits with respect to which a designation is in effect under section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act of 1982 [section 242(b)(2) of Pub. L. 97-248, formerly set out as an Effective Date of 1982 Amendment note under section 401 of this title]."(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:"(1) IN GENERAL.-Except as provided in paragraph (2), the amendments made by section 224 [enacting section 6050G of this title, amending this section and section 86 of this title, and enacting provisions set out as a note under section 231n of Title 45, Railroads] shall apply to benefits received after December 31, 1983, in taxable years ending after such date."(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-"(A) the taxpayer after August 13, 1982, and before September 4, 1982, borrows money from a government plan (as defined in section 219(e)(4) of the Internal Revenue Code of 1986), "(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.
EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-172 applicable to taxable years ending after Dec. 31, 1969, see section 515(d) of Pub. L. 91-172, set out as a note under section 402 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89-365 applicable with respect to taxable years ending after Dec. 31, 1965, see section 1(d) of Pub. L. 89-365, set out as an Effective Date note under section 122 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89-97 applicable to taxable years beginning after Dec. 31, 1966, see section 106(e) of Pub. L. 89-97, set out as a note under section 213 of this title.Amendment by Pub. L. 89-44 applicable to taxable years beginning on or after July 1, 1965, see section 809(f) of Pub. L. 89-44, set out as a note under section 6420 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable to taxable years beginning after Dec. 31, 1963, see section 232(g) of Pub. L. 88-272, set out as a note under section 5 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT Pub. L. 87-834, §11(c)(2), Oct. 16, 1962, 76 Stat. 1006, provided that: "The amendment made by subsection (b) [amending this section] shall apply to taxable years ending after December 31, 1962."Amendment by Pub. L. 87-792 applicable to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a note under section 22 of this title.
SAVINGS PROVISIONFor 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.-"(1) IN GENERAL.-Section 72(t) of the Internal Revenue Code of 1986 shall not apply to any coronavirus-related distribution."(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. "(C) CONTROLLED GROUP.-For purposes of subparagraph (B), the term 'controlled group' means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986."(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."(C) ELIGIBLE RETIREMENT PLAN.-The term 'eligible retirement plan' has the meaning given such term by section 402(c)(8)(B) of the Internal Revenue Code of 1986. "(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 "(B) except as provided by the Secretary of the Treasury (or the Secretary's delegate), such plan or contract shall not fail to meet the requirements of section 411(d)(6) of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1054(g)] by reason of such amendment."(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, 1998For 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, 1994For 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, 1989For 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.
DEFINITION OF TERMS USED IN TITLE I OF PUB. L. 110-458 Pub. L. 110-458, §100, Dec. 23, 2008, 122 Stat. 5093, provided that: "For purposes of this title [see Tables for classification]:"(1) AMENDMENT OF 1986 CODE.-The term '1986 Code' means the Internal Revenue Code of 1986."(2) AMENDMENT OF ERISA.-The term 'ERISA' means the Employee Retirement Income Security Act of 1974 [Pub. L. 93-406; see Short Title note under section 1001 of Title 29, Labor]."(3) 2006 ACT.-The term '2006 Act' means the Pension Protection Act of 2006 [Pub. L. 109-280; see Short Title of 2006 Amendment note under section 1001 of Title 29, Labor]."
- Internal Revenue Code of 1986
- The term "Internal Revenue Code of 1986" means this title, and the term "Internal Revenue Code of 1939" means the Internal Revenue Code enacted February 10, 1939, as amended.
- Secretary of the Treasury
- The term "Secretary of the Treasury" means the Secretary of the Treasury, personally, and shall not include any delegate of his.
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- State
- The term "State" shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.
- TIN
- The term "TIN" means the identifying number assigned to a person under section 6109.
- corporation
- The term "corporation" includes associations, joint-stock companies, and insurance companies.
- individual retirement plan
- The term "individual retirement plan" means-(A) an individual retirement account described in section 408(a), and(B) an individual retirement annuity described in section 408(b).
- joint return
- The term "joint return" means a single return made jointly under section 6013 by a husband and wife.
- levy
- The term "levy" includes the power of distraint and seizure by any means.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- stock
- The term "stock" includes shares in an association, joint-stock company, or insurance company.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- taxpayer
- The term "taxpayer" means any person subject to any internal revenue tax.
- trade or business
- The term "trade or business" includes the performance of the functions of a public office.