r/title-26-INTERNAL-REVENUE-CODE wiki — defined terms

“qualified property” applies in that section

the term “qualified property” means— (i) any stock in (or right to acquire stock in) the distributing corporation or obligation of the distributing corporation, or (ii) any stock in (or right to acquire stock in) another corporation which is a party to the reorganization or obligation of another corporation which is such a party if such stock (or right) or obligation is received by the distributing corporation in the exchange.

“intangible property” applies in that section

the term “intangible property” means any— (A) patent, invention, formula, process, design, pattern, or know-how, (B) copyright, literary, musical, or artistic composition, (C) trademark, trade name, or brand name, (D) franchise, license, or contract, (E) method, program, system, procedure, campaign, survey, study, forecast, estimate, customer list, or technical data, (F) goodwill, going concern value, or workforce in place (including its composition and terms and conditions (contractual or otherwise) of its employment), or (G) other item the value or potential value of which is not attributable to tangible property or the services of any individual.

“a party to a reorganization” applies throughout its part

the term “a party to a reorganization” includes— (1) a corporation resulting from a reorganization, and (2) both corporations, in the case of a reorganization resulting from the acquisition by one corporation of stock or properties of another. In the case of a reorganization qualifying under paragraph (1)(B) or (1)(C) of subsection (a), if the stock exchanged for the stock or properties is stock of a corporation which is in control of the acquiring corporation,

“control” applies throughout its subchapter

the term “control” has the meaning given such term by section 304(c), and (ii) in the case of a transaction with respect to which the requirements of section 355 (or so much of section 356 as relates to section 355) are met, the fact that the shareholders of the distributing corporation dispose of part or all of the distributed stock, or the fact that the corporation whose stock was distributed issues additional stock, shall not be taken into account. (3) Additional rules relating to title 11 and similar cases (A) Title 11 or similar case defined For purposes of this part,

“investment company” applies throughout its subchapter

the term “investment company” means a regulated investment company, a real estate investment trust, or a corporation 50 percent or more of the value of whose total assets are stock and securities and 80 percent or more of the value of whose total assets are assets held for investment.

“party to a reorganization” applies throughout its part

the term “party to a reorganization” includes the controlling corporation referred to in subsection (a)(2)(E). (c) Control defined For purposes of part I (other than section 304), part II, this part, and part V,

“reorganization” applies in that section

the term “reorganization” means— (A) a statutory merger or consolidation; (B) the acquisition by one corporation, in exchange solely for all or a part of its voting stock (or in exchange solely for all or a part of the voting stock of a corporation which is in control of the acquiring corporation), of stock of another corporation if, immediately after the acquisition, the acquiring corporation has control of such other corporation (whether or not such acquiring corporation had control immediately before the acquisition); (C) the acquisition by one corporation, in exchange solely for all or a part of its voting stock (or in exchange solely for all or a part of the voting stock of a …

“securities” applies throughout its subchapter

the term “securities” includes obligations of State and local governments, commodity futures contracts, shares of regulated investment companies and real estate investment trusts, and other investments constituting a security within the meaning of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2(a)(36) ). [(viii) Repealed. Pub. L. 98–369, div. A, title I, § 174(b)(5)(D) , July 18, 1984 , 98 Stat.

“title 11 or similar case” applies throughout its part

the term “title 11 or similar case” means— (i) a case under title 11 of the United States Code, or (ii) a receivership, foreclosure, or similar proceeding in a Federal or State court. (B) Transfer of assets in a title 11 or similar case In applying paragraph (1)(G), a transfer of the assets of a corporation shall be treated as made in a title 11 or similar case if and only if— (i) any party to the reorganization is under the jurisdiction of the court in such case, and (ii) the transfer is pursuant to a plan of reorganization approved by the court.

“5-percent shareholder” applies in that section

The term “5-percent shareholder” means any person holding 5 percent or more of the stock of the corporation at any time during the testing period. (l) Certain additional operating rules For purposes of this section— (1) Certain capital contributions not taken into account (A) In general Any capital contribution received by an old loss corporation as part of a plan a principal purpose of which is to avoid or increase any limitation under this section shall not be taken into account for purposes of this section.

“50-percent shareholder” applies in that section

the term “50-percent shareholder” means any person owning 50 percent or more of the stock of the corporation at any time during the 3-year period ending on the last day of the taxable year with respect to which the stock was so treated. (h) Special rules for built-in gains and losses and section 338 gains For purposes of this section— (1) In general (A) Net unrealized built-in gain (i) In general If the old loss corporation has a net unrealized built-in gain, the section 382 limitation for any recognition period taxable year shall be increased by the recognized built-in gains for such taxable year.

“adjusted Federal long-term rate” applies in that section

the term “adjusted Federal long-term rate” means the Federal long-term rate determined under section 1274(d), except that— (A) paragraphs (2) and (3) thereof shall not apply, and (B) such rate shall be properly adjusted for differences between rates on long-term taxable and tax-exempt obligations.

“equity structure shift” applies in that section

The term “equity structure shift” means any reorganization (within the meaning of section 368). Such term shall not include— (i) any reorganization described in subparagraph (D) or (G) of section 368(a)(1) unless the requirements of section 354(b)(1) are met, and (ii) any reorganization described in subparagraph (F) of section 368(a)(1). (B) Taxable reorganization-type transactions, etc. To the extent provided in regulations,

“loss corporation” applies in that section

The term “loss corporation” means a corporation entitled to use a net operating loss carryover or having a net operating loss for the taxable year in which the ownership change occurs. Such term shall include any corporation entitled to use a carryforward of disallowed interest described in section 381(c)(20). Except to the extent provided in regulations, such term includes any corporation with a net unrealized built-in loss. (2) Old loss corporation

“net unrealized built-in gain” applies in that section

The terms “net unrealized built-in gain” and “net unrealized built-in loss” mean, with respect to any old loss corporation, the amount by which— (I) the fair market value of the assets of such corporation immediately before an ownership change is more or less, respectively, than (II) the aggregate adjusted basis of such assets at such time. (ii) Special rule for redemptions or other corporate contractions If a redemption or other corporate contraction occurs in connection with an ownership change, to the extent provided in regulations, determinations under clause (i) shall be made after taking such redemption or other corporate contraction into account.

“net unrealized built-in loss” applies in that section

The terms “net unrealized built-in gain” and “net unrealized built-in loss” mean, with respect to any old loss corporation, the amount by which— (I) the fair market value of the assets of such corporation immediately before an ownership change is more or less, respectively, than (II) the aggregate adjusted basis of such assets at such time. (ii) Special rule for redemptions or other corporate contractions If a redemption or other corporate contraction occurs in connection with an ownership change, to the extent provided in regulations, determinations under clause (i) shall be made after taking such redemption or other corporate contraction into account.

“new loss corporation” applies in that section

The term “new loss corporation” means a corporation which (after an ownership change) is a loss corporation. Nothing in this section shall be treated as implying that the same corporation may not be both the old loss corporation and the new loss corporation. (4) Taxable income Taxable income shall be computed with the modifications set forth in section 172(d). (5) Value

“nonbusiness assets” applies in that section

the term “nonbusiness assets” means assets held for investment. (D) Nonbusiness asset share For purposes of this paragraph, the nonbusiness asset share of the indebtedness of the corporation is an amount which bears the same ratio to such indebtedness as— (i) the fair market value of the nonbusiness assets of the corporation, bears to (ii) the fair market value of all assets of such corporation. (E) Treatment of subsidiaries For purposes of this paragraph, stock and securities in any subsidiary corporation shall be disregarded and the parent corporation shall be deemed to own its ratable share of the subsidiary’s assets.

“old loss corporation” applies in that section

The term “old loss corporation” means any corporation— (A) with respect to which there is an ownership change, and (B) which (before the ownership change) was a loss corporation. (3) New loss corporation

“post-change year” applies in that section

The term “post-change year” means any taxable year ending after the change date. (3) Application to carryforward of disallowed interest

“pre-change loss” applies in that section

The term “pre-change loss” means— (A) any net operating loss carryforward of the old loss corporation to the taxable year ending with the ownership change or in which the change date occurs, and (B) the net operating loss of the old loss corporation for the taxable year in which the ownership change occurs to the extent such loss is allocable to the period in such year on or before the change date. Except as provided in subsection (h)(5) and in regulations, the net operating loss shall, for purposes of subparagraph (B), be allocated ratably to each day in the year. (2) Post-change year

“recognition period” applies in that section

The term “recognition period” means, with respect to any ownership change, the 5-year period beginning on the change date. (B) Recognition period taxable year

“recognition period taxable year” applies in that section

The term “recognition period taxable year” means any taxable year any portion of which is in the recognition period. (8) Determination of fair market value in certain cases If 80 percent or more in value of the stock of a corporation is acquired in 1 transaction (or in a series of related transactions during any 12-month period), for purposes of determining the net unrealized built-in loss, the fair market value of the assets of such corporation shall not exceed the grossed up amount paid for such stock properly adjusted for indebtedness of the corporation and other relevant items.

“recognized built-in gain” applies in that section

The term “recognized built-in gain” means any gain recognized during the recognition period on the disposition of any asset to the extent the new loss corporation establishes that— (i) such asset was held by the old loss corporation immediately before the change date, and (ii) such gain does not exceed the excess of— (I) the fair market value of such asset on the change date, over (II) the adjusted basis of such asset on such date. (B) Recognized built-in loss

“recognized built-in loss” applies in that section

The term “recognized built-in loss” means any loss recognized during the recognition period on the disposition of any asset except to the extent the new loss corporation establishes that— (i) such asset was not held by the old loss corporation immediately before the change date, or (ii) such loss exceeds the excess of— (I) the adjusted basis of such asset on the change date, over (II) the fair market value of such asset on such date.

“stock” applies in that section

the term “stock” means stock other than stock described in section 1504(a)(4). (B) Treatment of certain rights, etc. The Secretary shall prescribe such regulations as may be necessary— (i) to treat warrants, options, contracts to acquire stock, convertible debt interests, and other similar interests as stock, and (ii) to treat stock as not stock. (C) Determinations on basis of value Determinations of the percentage of stock of any corporation held by any person shall be made on the basis of value. (7) 5-percent shareholder

“title 11 or similar case” applies in that section

the term “title 11 or similar case” has the meaning given such term by section 368(a)(3)(A). (G) Election not to have paragraph apply A new loss corporation may elect, subject to such terms and conditions as the Secretary may prescribe, not to have the provisions of this paragraph apply.

“value” applies in that section

The term “value” means fair market value. (6) Rules relating to stock (A) Preferred stock Except as provided in regulations and subsection (e),

“excess credit” applies in that section

the term “excess credit” means— (A) any unused general business credit of the corporation under section 39, and (B) any unused minimum tax credit of the corporation under section 53. (b) Limitation on net capital loss If an ownership change occurs with respect to a corporation, the amount of any net capital loss under section 1212 for any taxable year before the 1st post-change year which may be used in any post-change year shall be limited under regulations which shall be based on the principles applicable under section 382.

“acquisition date” applies in that section

The term “acquisition date” means— (A) in any case described in subsection (a)(1)(A), the date on which the acquisition of control occurs, or (B) in any case described in subsection (a)(1)(B), the date of the transfer in the reorganization. (3) Preacquisition loss (A) In general

“control” applies in that section

The term “control” means ownership of stock in a corporation which meets the requirements of section 1504(a)(2). (6) Treatment of members of same group Except as provided in regulations and except for purposes of subsection (b), all corporations which are members of the same affiliated group immediately before the acquisition date shall be treated as 1 corporation. To the extent provided in regulations, section 1504 shall be applied without regard to subsection (b) thereof for purposes of the preceding sentence. (7) Treatment of predecessors and successors Any reference in this section to a corporation shall include a reference to any predecessor or successor thereof.

“controlled group” applies in that section

the term “controlled group” means a controlled group of corporations (as defined in section 1563(a)); except that— (A) “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears, (B) the ownership requirements of section 1563(a) must be met both with respect to voting power and value, and (C) the determination shall be made without regard to subsection (a)(4) of section 1563.

“gain corporation” applies in that section

The term “gain corporation” means any corporation with a net unrealized built-in gain. (5) Control

“preacquisition loss” applies in that section

The term “preacquisition loss” means— (i) any net operating loss carryforward to the taxable year in which the acquisition date occurs, and (ii) any net operating loss for the taxable year in which the acquisition date occurs to the extent such loss is allocable to the period in such year on or before the acquisition date. Except as provided in regulations, the net operating loss shall, for purposes of clause (ii), be allocated ratably to each day in the year. (B) Treatment of recognized built-in loss In the case of a corporation with a net unrealized built-in loss,

“recognized built-in gain” applies in that section

The term “recognized built-in gain” means any gain recognized during the recognition period on the disposition of any asset except to the extent the gain corporation (or, in any case described in subsection (a)(1)(B), the acquiring corporation) establishes that— (i) such asset was not held by the gain corporation on the acquisition date, or (ii) such gain exceeds the excess (if any) of— (I) the fair market value of such asset on the acquisition date, over (II) the adjusted basis of such asset on such date.

“annuity” applies in that section

the term “annuity” 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); but does not include any contract or certificate issued after December 31, 1962 , which is transferable, if any person other than the trustee of a trust described in section 401(a) which is exempt from tax under section 501(a) is the owner of such contract or certificate.

“applicable defined contribution plan” applies in that section

The term “applicable defined contribution plan” means any defined contribution plan which holds any publicly traded employer securities. (ii) Exception for certain esops .— Such term does not include an employee stock ownership plan if— (I) there are no contributions to such plan (or earnings thereunder) which are held within such plan and are subject to subsection (k) or (m), and (II) such plan is a separate plan for purposes of section 414( l ) with respect to any other defined benefit plan or defined contribution plan maintained by the same employer or employers. (iii) Exception for one participant plans .— Such term does not include a one-participant retirement plan.

“applicable individual” applies in that section

The term “applicable individual” means— (I) any participant in the plan, and (II) any beneficiary who has an account under the plan with respect to which the beneficiary is entitled to exercise the rights of a participant. (ii) Elective deferral .—

“applicable multi-beneficiary trust” applies throughout this title

the term “applicable multi-beneficiary trust” means a trust— (I) which has more than one beneficiary, (II) all of the beneficiaries of which are treated as designated beneficiaries for purposes of determining the distribution period pursuant to this paragraph, and (III) at least one of the beneficiaries of which is an eligible designated beneficiary described in subclause (III) or (IV) of subparagraph (E)(ii). For purposes of the preceding sentence, in the case of a trust the terms of which are described in clause (iv)(II), any beneficiary which is an organization described in section 408(d)(8)(B)(i) shall be treated as a designated beneficiary described in subclause (II).

“average annual compensation” applies in that section

The term “average annual compensation” means the participant’s highest average annual compensation for— (i) any period of at least 3 consecutive years, or (ii) if shorter, the participant’s full period of service. (D) Final average compensation (i) In general

“base contribution percentage” applies in that section

The term “base contribution percentage” means the percentage of compensation contributed by the employer under the plan with respect to that portion of each participant’s compensation not in excess of the integration level.

“certified long-term care insurance” applies in that section

The term “certified long-term care insurance” means— (i) a qualified long-term care insurance contract (as defined in section 7702B(b)) covering qualified long-term care services (as defined in section 7702B(c)), (ii) coverage of the risk that an insured individual would become a chronically ill individual (within the meaning of section 101(g)(4)(B)) under a rider or other provision of a life insurance contract which satisfies the requirements of section 101(g)(3) (determined without regard to subparagraph (D) thereof), or (iii) coverage of qualified long-term care services (as so defined) under a rider or other provision of an insurance or annuity contract which is treated as a separate …

“church” applies in that section

the term “church” means any church (as defined in section 3121(w)(3)(A)) or qualified church-controlled organization (as defined in section 3121(w)(3)(B)). (v) Applicable age .— (I) In the case of an individual who attains age 72 after December 31, 2022 , and age 73 before January 1, 2033 , the applicable age is 73. (II) In the case of an individual who attains age 74 after December 31, 2032 , the applicable age is 75. (D) Life expectancy .— For purposes of this paragraph, the life expectancy of an employee and the employee’s spouse (other than in the case of a life annuity) may be redetermined but not more frequently than annually.

“church plan” applies in that section

the term “church plan” means a plan maintained by a church for church employees, and

“compensation” applies in that section

the term “compensation” has the meaning given such term by section 414(s). (10) Distributions upon termination of plan (A) In general An event described in this subparagraph is the termination of the plan without establishment or maintenance of another defined contribution plan (other than an employee stock ownership plan as defined in section 4975(e)(7)). (B) Distributions must be lump sum distributions (i) In general A termination shall not be treated as described in subparagraph (A) with respect to any employee unless the employee receives a lump sum distribution by reason of the termination. (ii) Lump-sum distribution For purposes of this subparagraph,

“contribution on behalf of an owner-employee” applies in that section

The term “contribution on behalf of an owner-employee” includes, except as the context otherwise requires, a contribution under a plan— (A) by the employer for an owner-employee, and (B) by an owner-employee as an employee. (6) Special rule for certain fishermen For purposes of this subsection,

“covered compensation” applies in that section

The term “covered compensation” means, with respect to an employee, the average of the contribution and benefit bases in effect under section 230 of the Social Security Act for each year in the 35-year period ending with the year in which the employee attains the social security retirement age. (ii) Computation for any year For purposes of clause (i), the determination for any year preceding the year in which the employee attains the social security retirement age shall be made by assuming that there is no increase in the bases described in clause (i) after the determination year and before the employee attains the social security retirement age.

“dependent” applies in that section

the term “dependent” shall include any individual who is a child (as defined in section 152(f)(1)) of a retired employee who as of the end of the calendar year has not attained age 27. (i) Certain union-negotiated pension plans In the case of a trust forming part of a pension plan which has been determined by the Secretary to constitute a qualified trust under subsection (a) and to be exempt from taxation under section 501(a) for a period beginning after contributions were first made to or for such trust, if it is shown to the satisfaction of the Secretary that— (1) such trust was created pursuant to a collective bargaining agreement between employee representatives and one or more …

“designated beneficiary” applies in that section

The term “designated beneficiary” means any individual designated as a beneficiary by the employee. (ii) Eligible designated beneficiary .—

“earned income” applies in that section

The term “earned income” means the net earnings from self-employment (as defined in section 1402(a)), but such net earnings shall be determined— (i) only with respect to a trade or business in which personal services of the taxpayer are a material income-producing factor, (ii) without regard to paragraphs (4) and (5) of section 1402(c), (iii) in the case of any individual who is treated as an employee under subparagraph (A), (C), or (D) of section 3121(d)(3), without regard to section 1402(c)(2), (iv) without regard to items which are not included in gross income for purposes of this chapter, and the deductions properly allocable to or chargeable against such items, (v) with regard to the …

“elective deferral” applies in that section

The term “elective deferral” means an employer contribution described in section 402(g)(3)(A). (iii) Employer security .—

“eligible designated beneficiary” applies in that section

The term “eligible designated beneficiary” means, with respect to any employee, any designated beneficiary who is— (I) the surviving spouse of the employee, (II) subject to clause (iii), a child of the employee who has not reached majority (within the meaning of subparagraph (F)), (III) disabled (within the meaning of section 72(m)(7)), (IV) a chronically ill individual (within the meaning of section 7702B(c)(2), except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be …

“eligible employee” applies in that section

The term “eligible employee” means any employee of the employer who meets the minimum age and service conditions described in section 410(a)(1). (ii) Exclusions The employer may elect to exclude from such definition any employee described in paragraph (3) or (4) of section 410(b). (l) Permitted disparity in plan contributions or benefits (1) In general The requirements of this subsection are met with respect to a plan if— (A) in the case of a defined contribution plan, the requirements of paragraph (2) are met, and (B) in the case of a defined benefit plan, the requirements of paragraph (3) are met.

“eligible employer” applies in that section

The term “eligible employer” means any employer if the employer does not maintain a qualified plan with respect to which contributions are made, or benefits are accrued, for service in the year for which the determination is being made. If only individuals other than employees described in subparagraph (A) of section 410(b)(3) are eligible to participate in such arrangement, then the preceding sentence shall be applied without regard to any qualified plan in which only employees described in such subparagraph are eligible to participate. (ii) Relief for acquisitions, etc. Rules similar to the rules of section 408(p)(10) shall apply for purposes of clause (i). (iii) Qualified plan

“eligible plan” applies in that section

the term “eligible plan” means a plan which provides that any nonforfeitable accrued benefit for which the present value (as determined under section 411(a)(11)) does not exceed $7,000 shall be immediately distributed to the participant. (C) Limitation .— Subparagraphs (A) and (B) shall apply only to the extent that the eligible rollover distribution would be includible in gross income if not transferred as provided in subparagraph (A) (determined without regard to sections 402(c), 403(a)(4), 403(b)(8), and 457(e)(16)).

“eligible retirement plan” applies in that section

the term “eligible retirement plan” has the meaning given such term by section 402(c)(8)(B), except that a qualified trust shall be considered an eligible retirement plan only if it is a defined contribution plan, the terms of which permit the acceptance of rollover distributions.

“eligible rollover distribution” applies in that section

the term “eligible rollover distribution” has the meaning given such term by section 402(f)(2)(A). (E) Eligible retirement plan .— For purposes of this paragraph,

“employee” applies in that section

The term “employee” includes, for any taxable year, an individual who is a self-employed individual for such taxable year. (B) Self-employed individual

“employee stock ownership plan” applies in that section

The term “employee stock ownership plan” has the meaning given such term by section 4975(e)(7). (v) Publicly traded employer securities .—

“employer” applies in that section

the term “employer” means the employer referred to in section 412(b)(1), without regard to section 412(b)(2). (34) Benefits of missing participants on plan termination .— In the case of a plan covered by title IV of the Employee Retirement Income Security Act of 1974, a trust forming part of such plan shall not be treated as failing to constitute a qualified trust under this section merely because the pension plan of which such trust is a part, upon its termination, transfers benefits of missing participants to the Pension Benefit Guaranty Corporation in accordance with section 4050 of such Act.

“employer securities” applies in that section

the term “employer securities” shall include any securities of the employer held by the plan. (24) Any group trust which otherwise meets the requirements of this section shall not be treated as not meeting such requirements on account of the participation or inclusion in such trust of the moneys of any plan or governmental unit described in section 818(a)(6).

“employer security” applies in that section

The term “employer security” has the meaning given such term by section 407(d)(1) of the Employee Retirement Income Security Act of 1974. (iv) Employee stock ownership plan .—

“excess aggregate contributions” applies in that section

the term “excess aggregate contributions” means, with respect to any plan year, the excess of— (i) the aggregate amount of the matching contributions and employee contributions (and any qualified nonelective contribution or elective contribution taken into account in computing the contribution percentage) actually made on behalf of highly compensated employees for such plan year, over (ii) the maximum amount of such contributions permitted under the limitations of paragraph (2)(A) (determined by reducing contributions made on behalf of highly compensated employees in order of their contribution percentages beginning with the highest of such percentages).

“excess contribution percentage” applies in that section

The term “excess contribution percentage” means the percentage of compensation which is contributed by the employer under the plan with respect to that portion of each participant’s compensation in excess of the integration level. (ii) Base contribution percentage

“excess contributions” applies in that section

the term “excess contributions” means, with respect to any plan year, the excess of— (i) the aggregate amount of employer contributions actually paid over to the trust on behalf of highly compensated employees for such plan year, over (ii) the maximum amount of such contributions permitted under the limitations of clause (ii) of paragraph (3)(A) (determined by reducing contributions made on behalf of highly compensated employees in order of the actual deferral percentages beginning with the highest of such percentages).

“final average compensation” applies in that section

The term “final average compensation” means the participant’s average annual compensation for— (I) the 3-consecutive year period ending with the current year, or (II) if shorter, the participant’s full period of service. (ii) Limitation A participant’s final average compensation shall be determined by not taking into account in any year compensation in excess of the contribution and benefit base in effect under section 230 of the Social Security Act for such year. (E) Covered compensation (i) In general

“hardship distribution” applies in that section

the term “hardship distribution” means a distribution described in paragraph (2)(B)(i)(IV) (without regard to the limitation of its application to profit-sharing or stock bonus plans). (8) Arrangement not disqualified if excess contributions distributed (A) In general A cash or deferred arrangement shall not be treated as failing to meet the requirements of clause (ii) of paragraph (3)(A) for any plan year if, before the close of the following plan year— (i) the amount of the excess contributions for such plan year (and any income allocable to such contributions through the end of such year) is distributed, or (ii) to the extent provided in regulations, the employee elects to treat the …

“highly compensated employee” applies in that section

the term “highly compensated employee” has the meaning given such term by section 414(q). (6) Pre-ERISA money purchase plan For purposes of this subsection,

“independent appraiser” applies in that section

the term “independent appraiser” means any appraiser meeting requirements similar to the requirements of the regulations prescribed under section 170(a)(1). (29) Benefit limitations .— In the case of a defined benefit plan (other than a multiemployer plan or a CSEC plan) to which the requirements of section 412 apply, the trust of which the plan is a part shall not constitute a qualified trust under this subsection unless the plan meets the requirements of section 436.

“integration level” applies in that section

The term “integration level” means the amount of compensation specified under the plan (by dollar amount or formula) at or below which the rate at which contributions or benefits are provided (expressed as a percentage) is less than such rate above such amount. (ii) Limitation The integration level for any year may not exceed the contribution and benefit base in effect under section 230 of the Social Security Act for such year. (iii) Level to apply to all participants A plan’s integration level shall apply with respect to all participants in the plan. (iv) Multiple integration levels Under rules prescribed by the Secretary, a defined benefit plan may specify multiple integration levels.

“key employee” applies in that section

the term “key employee” means any employee, who at any time during the plan year or any preceding plan year during which contributions were made on behalf of such employee, is or was a key employee as defined in section 416(i). In no event shall the requirements of paragraph (1) be treated as met if the aggregate actual contributions for medical benefits, when added to actual contributions for life insurance protection under the plan, exceed 25 percent of the total actual contributions to the plan (other than contributions to fund past service credits) after the date on which the account is established. For purposes of this subsection,

“lifetime income feature” applies in that section

the term “lifetime income feature” means— (I) a feature which guarantees a minimum level of income annually (or more frequently) for at least the remainder of the life of the employee or the joint lives of the employee and the employee’s designated beneficiary, or (II) an annuity payable on behalf of the employee under which payments are made in substantially equal periodic payments (not less frequently than annually) over the life of the employee or the joint lives of the employee and the employee’s designated beneficiary, and;

“lifetime income investment” applies in that section

the term “lifetime income investment” means an investment option which is designed to provide an employee with election rights— (I) which are not uniformly available with respect to other investment options under the plan, and (II) which are to a lifetime income feature available through a contract or other arrangement offered under the plan (or under another eligible retirement plan (as so defined), if paid by means of a direct trustee-to-trustee transfer described in paragraph (31)(A) to such other eligible retirement plan);

“lump-sum distribution” applies in that section

the term “lump-sum distribution” has the meaning given such term by section 402(e)(4)(D) (without regard to subclauses (I), (II), (III), and (IV) of clause (i) thereof). Such term includes a distribution of an annuity contract from— (I) a trust which forms a part of a plan described in section 401(a) and which is exempt from tax under section 501(a), or (II) an annuity plan described in section 403(a).

“make-whole contributions” applies in that section

the term “make-whole contributions” means nonelective allocations for each employee in the class which are reasonably calculated, in a consistent manner, to replace some or all of the retirement benefits which the employee would have received under the defined benefit plan and any other plan or qualified cash or deferred arrangement under subsection (k)(2) if no change had been made to such defined benefit plan and such other plan or arrangement. For purposes of the preceding sentence, consistency shall not be required with respect to employees who were subject to different benefit formulas under the defined benefit plan.

“matching contribution” applies in that section

The term “matching contribution” means— (i) any employer contribution made to a defined contribution plan on behalf of an employee on account of an employee contribution made by such employee, (ii) any employer contribution made to a defined contribution plan on behalf of an employee on account of an employee’s elective deferral, and (iii) subject to the requirements of paragraph (14), any employer contribution made to a defined contribution plan on behalf of an employee on account of a qualified student loan payment. (B) Elective deferral

“minimum-required qualified joint and survivor annuity” applies in that section

the term “minimum-required qualified joint and survivor annuity” means the qualified joint and survivor annuity which is the actuarial equivalent of the participant’s accrued benefit (within the meaning of section 411(a)(7)) and under which the survivor annuity is 50 percent of the amount of the annuity which is payable during the joint lives of the participant and the spouse.

“offset plan” applies in that section

The term “offset plan” means any plan with respect to which the benefit attributable to employer contributions for each participant is reduced by an amount specified in the plan. (5) Other definitions and special rules For purposes of this subsection— (A) Integration level (i) In general

“one-participant retirement plan” applies in that section

the term “one-participant retirement plan” means a retirement plan that on the first day of the plan year— (I) covered only one individual (or the individual and the individual’s spouse) and the individual (or the individual and the individual’s spouse) owned 100 percent of the plan sponsor (whether or not incorporated), or (II) covered only one or more partners (or partners and their spouses) in the plan sponsor.

“owner-employee” applies in that section

The term “owner-employee” means an employee who— (A) owns the entire interest in an unincorporated trade or business, or (B) in the case of a partnership, is a partner who owns more than 10 percent of either the capital interest or the profits interest in such partnership. To the extent provided in regulations prescribed by the Secretary, such term also means an individual who has been an owner-employee within the meaning of the preceding sentence. (4) Employer An individual who owns the entire interest in an unincorporated trade or business shall be treated as his own employer.

“pre-ERISA money purchase plan” applies in that section

the term “pre-ERISA money purchase plan” means a pension plan— (A) which is a defined contribution plan (as defined in section 414(i)), (B) which was in existence on June 27, 1974 , and which, on such date, included a salary reduction arrangement, and (C) under which neither the employee contributions nor the employer contributions may exceed the levels provided for by the contribution formula in effect under the plan on such date. (7) Rural cooperative plan For purposes of this subsection— (A) In general

“publicly traded employer securities” applies in that section

The term “publicly traded employer securities” means employer securities which are readily tradable on an established securities market. (vi) Year of service .—

“qualified automatic contribution arrangement” applies in that section

the term “qualified automatic contribution arrangement” means a cash or deferred arrangement— (i) which is described in subparagraph (D)(i)(I) and meets the applicable requirements of subparagraphs (C) through (E), or (ii) which is described in subparagraph (D)(i)(II) and meets the applicable requirements of subparagraphs (C) and (D). (C) Automatic deferral (i) In general The requirements of this subparagraph are met if, under the arrangement, each employee eligible to participate in the arrangement is treated as having elected to have the employer make elective contributions in an amount equal to a qualified percentage of compensation.

“qualified distribution” applies in that section

the term “qualified distribution” means a direct trustee-to-trustee transfer described in paragraph (31)(A) to an eligible retirement plan (as defined in section 402(c)(8)(B));

“qualified election period” applies in that section

the term “qualified election period” means the 6-plan-year period beginning with the later of— (I) the 1st plan year in which the individual first became a qualified participant, or (II) the 1st plan year beginning after December 31, 1986 . For purposes of the preceding sentence, an employer may elect to treat an individual first becoming a qualified participant in the 1st plan year beginning in 1987 as having become a participant in the 1st plan year beginning in 1988. (v) Exception .— This subparagraph shall not apply to an applicable defined contribution plan (as defined in paragraph (35)(E)).

“qualified higher education expenses” applies in that section

the term “qualified higher education expenses” means the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997) at an eligible educational institution (as defined in section 221(d)(2)). (5) Employees taken into consideration (A) In general Any employee who is eligible to make an employee contribution (or, if the employer takes elective contributions into account, elective contributions) or to receive a matching contribution under the plan being tested under paragraph (1) shall be considered an eligible employee for purposes of this subsection.

“qualified long-term care distribution” applies in that section

The term “qualified long-term care distribution” means so much of the distributions made during the taxable year as does not exceed, in the aggregate, the least of the following: (I) The amount paid by or assessed to the employee during the taxable year for or with respect to certified long-term care insurance for the employee or the employee’s spouse (or other family member of the employee as provided by the Secretary by regulation). (II) An amount equal to 10 percent of the present value of the nonforfeitable accrued benefit of the employee under the plan. (III) $2,500.

“qualified nonelective contribution” applies in that section

The term “qualified nonelective contribution” means any employer contribution (other than a matching contribution) with respect to which— (i) the employee may not elect to have the contribution paid to the employee in cash instead of being contributed to the plan, and (ii) the requirements of subparagraphs (B) and (C) of subsection (k)(2) are met. (D) Qualified student loan payment

“qualified participant” applies in that section

the term “qualified participant” means any employee who has completed at least 10 years of participation under the plan and has attained age 55. (iv) Qualified election period .— For purposes of this subparagraph,

“qualified percentage” applies in that section

the term “qualified percentage” means, with respect to any employee, any percentage determined under the arrangement if such percentage is applied uniformly, does not exceed 15 percent (10 percent during the period described in subclause (I)), and is at least— (I) 3 percent during the period ending on the last day of the first plan year which begins after the date on which the first elective contribution described in clause (i) is made with respect to such employee, (II) 4 percent during the first plan year following the plan year described in subclause (I), (III) 5 percent during the second plan year following the plan year described in subclause (I), and (IV) 6 percent during any …

“qualified plan” applies in that section

The term “qualified plan” means a plan, contract, pension, account, or trust described in subparagraph (A) or (B) of paragraph (5) of section 219(g) (determined without regard to the last sentence of such paragraph (5)). (F) Eligible employee For purposes of this paragraph— (i) In general

“qualified plan distribution annuity contract” applies in that section

the term “qualified plan distribution annuity contract” means an annuity contract purchased for a participant and distributed to the participant by a plan or contract described in subparagraph (B) of section 402(c)(8) (without regard to clauses (i) and (ii) thereof). (39) Qualified long-term care distributions (A) In general .— A trust forming part of a defined contribution plan shall not be treated as failing to constitute a qualified trust under this section solely by reason of allowing qualified long-term care distributions. (B) Qualified long-term care distribution .— For purposes of this paragraph— (i) In general .—

“qualified student loan payment” applies in that section

The term “qualified student loan payment” means a payment made by an employee in repayment of a qualified education loan (as defined in section 221(d)(1)) incurred by the employee to pay qualified higher education expenses, but only— (i) to the extent such payments in the aggregate for the year do not exceed an amount equal to— (I) the limitation applicable under section 402(g) for the year (or, if lesser, the employee’s compensation (as defined in section 415(c)(3)) for the year), reduced by (II) the elective deferrals made by the employee for such year, and (ii) if the employee certifies annually to the employer making the matching contribution under this paragraph that such payment has …

“required beginning date” applies in that section

The term “required beginning date” means April 1 of the calendar year following the later of— (I) the calendar year in which the employee attains the applicable age, or (II) the calendar year in which the employee retires. (ii) Exception .— Subclause (II) of clause (i) shall not apply— (I) except as provided in section 409(d), in the case of an employee who is a 5-percent owner (as defined in section 416) with respect to the plan year ending in the calendar year in which the employee attains the applicable age, or (II) for purposes of section 408(a)(6) or (b)(3).

“rural cooperative” applies in that section

the term “rural cooperative” means— (i) any organization which— (I) is engaged primarily in providing electric service on a mutual or cooperative basis, or (II) is engaged primarily in providing electric service to the public in its area of service and which is exempt from tax under this subtitle or which is a State or local government (or an agency or instrumentality thereof), other than a municipality (or an agency or instrumentality thereof), (ii) any organization described in paragraph (4) or (6) of section 501(c) and at least 80 percent of the members of which are organizations described in clause (i), (iii) a cooperative telephone company described in section 501(c)(12), (iv) any …

“rural cooperative plan” applies in that section

The term “rural cooperative plan” means any pension plan— (i) which is a defined contribution plan (as defined in section 414(i)), and (ii) which is established and maintained by a rural cooperative. (B) Rural cooperative defined For purposes of subparagraph (A),

“self-employed individual” applies in that section

The term “self-employed individual” means, with respect to any taxable year, an individual who has earned income (as defined in paragraph (2)) for such taxable year. To the extent provided in regulations prescribed by the Secretary, such term also includes, for any taxable year— (i) an individual who would be a self-employed individual within the meaning of the preceding sentence but for the fact that the trade or business carried on by such individual did not have net profits for the taxable year, and (ii) an individual who has been a self-employed individual within the meaning of the preceding sentence for any prior taxable year. (2) Earned income (A) In general

“separate line of business” applies in that section

the term “separate line of business” has the meaning given such term by section 414(r) (without regard to paragraph (2)(A) or (7) thereof). (G) Exception for governmental plans .— This paragraph shall not apply to a governmental plan (within the meaning of section 414(d)). (H) Regulations .— The Secretary may by regulation provide that any separate benefit structure, any separate trust, or any other separate arrangement is to be treated as a separate plan for purposes of applying this paragraph.

“social security retirement age” applies in that section

the term “social security retirement age” has the meaning given such term by section 415(b)(8). (F) Regulations The Secretary shall prescribe such regulations as are necessary or appropriate to carry out the purposes of this subsection, including— (i) in the case of a defined benefit plan which provides for unreduced benefits commencing before the social security retirement age (as defined in section 415(b)(8)), rules providing for the reduction of the maximum excess allowance and the maximum offset allowance, and (ii) in the case of an employee covered by 2 or more plans of the employer which fail to meet the requirements of subsection (a)(4) (without regard to this subsection), rules …

“starter 401(k) deferral-only arrangement” applies in that section

the term “starter 401(k) deferral-only arrangement” means any cash or deferred arrangement which meets— (i) the automatic deferral requirements of subparagraph (C), (ii) the contribution limitations of subparagraph (D), and (iii) the requirements of subparagraph (E) of paragraph (13). (C) Automatic deferral (i) In general The requirements of this subparagraph are met if, under the arrangement, each eligible employee is treated as having elected to have the employer make elective contributions in an amount equal to a qualified percentage of compensation.

“year of service” applies in that section

The term “year of service” has the meaning given such term by section 411(a)(5). (H) Transition rule for securities attributable to employer contributions.— (i) Rules phased in over 3 years.— (I) In general .— In the case of the portion of an account to which subparagraph (C) applies and which consists of employer securities acquired in a plan year beginning before January 1, 2007 , subparagraph (C) shall only apply to the applicable percentage of such securities. This subparagraph shall be applied separately with respect to each class of securities.

“applicable period” applies in that section

the term “applicable period” has the meaning given such term under section 72(t)(8)(F). (d) Taxability of beneficiary of certain foreign situs trusts For purposes of subsections (a), (b), and (c), a stock bonus, pension, or profit-sharing trust which would qualify for exemption from tax under section 501(a) except for the fact that it is a trust created or organized outside the United States shall be treated as if it were a trust exempt from tax under section 501(a).

“elective deferrals” applies in that section

the term “elective deferrals” means, with respect to any taxable year, the sum of— (A) any employer contribution under a qualified cash or deferred arrangement (as defined in section 401(k)) to the extent not includible in gross income for the taxable year under subsection (e)(3) (determined without regard to this subsection), (B) any employer contribution to the extent not includible in gross income for the taxable year under subsection (h)(1)(B) (determined without regard to this subsection), (C) any employer contribution to purchase an annuity contract under section 403(b) under a salary reduction agreement (within the meaning of section 3121(a)(5)(D)), and (D) any elective employer …

“eligible retired public safety officer” applies in that section

The term “eligible retired public safety officer” means an individual who, by reason of disability or attainment of normal retirement age, is separated from service as a public safety officer with the employer who maintains the eligible retirement plan from which distributions subject to paragraph (1) are made. (C) Public safety officer The term “public safety officer” shall have the same meaning given such term by section 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3796b(9)(A) ), 1 as in effect immediately before the enactment of the National Defense Authorization Act for Fiscal Year 2013. (D) Qualified health insurance premiums

“eligible retirement plan” applies in that section

The term “eligible retirement plan” means— (i) an individual retirement account described in section 408(a), (ii) an individual retirement annuity described in section 408(b) (other than an endowment contract), (iii) a qualified trust, (iv) an annuity plan described in section 403(a), (v) an eligible deferred compensation plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A), and (vi) an annuity contract described in section 403(b).

“eligible rollover distribution” applies in that section

the term “eligible rollover distribution” means any distribution to an employee of all or any portion of the balance to the credit of the employee in a qualified trust; except that such term shall not include— (A) any distribution which is one of a series of substantially equal periodic payments (not less frequently than annually) made— (i) for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and the employee’s designated beneficiary, or (ii) for a specified period of 10 years or more, (B) any distribution to the extent such distribution is required under section 401(a)(9), and (C) any distribution which is made upon hardship of …

“employee” applies in that section

the term “employee” includes a self-employed individual (as defined in section 401(c)(1)(B)) and the employer of such individual shall be the person treated as his employer under section 401(c)(4). (j) Effect of disposition of stock by plan on net unrealized appreciation (1) In general For purposes of subsection (e)(4), in the case of any transaction to which this subsection applies, the determination of net unrealized appreciation shall be made without regard to such transaction.

“frozen deposit” applies in that section

the term “frozen deposit” means any deposit which may not be withdrawn because of— (i) the bankruptcy or insolvency of any financial institution, or (ii) any requirement imposed by the State in which such institution is located by reason of the bankruptcy or insolvency (or threat thereof) of 1 or more financial institutions in such State. A deposit shall not be treated as a frozen deposit unless on at least 1 day during the 60-day period described in paragraph (3) (without regard to this paragraph) such deposit is described in the preceding sentence. (8) Definitions For purposes of this subsection— (A) Qualified trust

“highly compensated employee” applies in that section

the term “highly compensated employee” has the meaning given such term by section 414(q). (c) Rules applicable to rollovers from exempt trusts (1) Exclusion from income If— (A) any portion of the balance to the credit of an employee in a qualified trust is paid to the employee in an eligible rollover distribution, (B) the distributee transfers any portion of the property received in such distribution to an eligible retirement plan, and (C) in the case of a distribution of property other than money, the amount so transferred consists of the property distributed, then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid.

“incident period” applies in that section

the terms “qualified disaster”, “qualified disaster area”, and “incident period” have the meaning given such terms under section 72(t)(11), and;

“lump-sum distribution” applies in that section

The term “lump-sum distribution” means the distribution or payment within one taxable year of the recipient of the balance to the credit of an employee which becomes payable to the recipient— (I) on account of the employee’s death, (II) after the employee attains age 59½, (III) on account of the employee’s separation from service, or (IV) after the employee has become disabled (within the meaning of section 72(m)(7)), from a trust which forms a part of a plan described in section 401(a) and which is exempt from tax under section 501 or from a plan described in section 403(a).

“plan loan offset amount” applies in that section

the term “plan loan offset amount” means the amount by which the participant’s accrued benefit under the plan is reduced in order to repay a loan from the plan. (iv) Limitation This subparagraph shall not apply to any plan loan offset amount unless such plan loan offset amount relates to a loan to which section 72(p)(1) does not apply by reason of section 72(p)(2). (v) Qualified employer plan For purposes of this subsection,

“qualified disaster” applies in that section

the terms “qualified disaster”, “qualified disaster area”, and “incident period” have the meaning given such terms under section 72(t)(11), and;

“qualified disaster area” applies in that section

the terms “qualified disaster”, “qualified disaster area”, and “incident period” have the meaning given such terms under section 72(t)(11), and;

“qualified distribution” applies in that section

the term “qualified distribution” means any distribution— (i) described in section 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(i)(V), or 403(b)(11)(B), (ii) which was to be used to purchase or construct a principal residence in a qualified disaster area, but which was not so used on account of the qualified disaster with respect to such area, and (iii) which was received during the period beginning on the date which is 180 days before the first day of the incident period of such qualified disaster and ending on the date which is 30 days after the last day of such incident period. (C) Definitions For purposes of this paragraph—;

“qualified employee” applies in that section

the term “qualified employee” means any employee who has completed 15 years of service with the qualified organization. (D) Years of service For purposes of this paragraph,

“qualified employer plan” applies in that section

the term “qualified employer plan” has the meaning given such term by section 72(p)(4). (4) Eligible rollover distribution For purposes of this subsection,

“qualified health insurance premiums” applies in that section

The term “qualified health insurance premiums” means premiums for coverage for the eligible retired public safety officer, his spouse, and dependents (as defined in section 152), by an accident or health plan or qualified long-term care insurance contract (as defined in section 7702B(b)). (5) Special rules For purposes of this subsection— (A) Direct payment to insurer permitted (i) In general Paragraph (1) shall apply to a distribution without regard to whether payment of the premiums is made directly to the provider of the accident or health plan or qualified long-term care insurance contract by deduction from a distribution from the eligible retirement plan, or is made to the employee.

“qualified organization” applies in that section

the term “qualified organization” means any educational organization, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches. Such term includes any organization described in section 414(e)(3)(B)(ii). Terms used in this subparagraph shall have the same meaning as when used in section 415(c)(4) (as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001). (C) Qualified employee For purposes of this paragraph,

“qualified plan loan offset amount” applies in that section

the term “qualified plan loan offset amount” means a plan loan offset amount which is treated as distributed from a qualified employer plan to a participant or beneficiary solely by reason of— (I) the termination of the qualified employer plan, or (II) the failure to meet the repayment terms of the loan from such plan because of the severance from employment of the participant. (iii) Plan loan offset amount For purposes of clause (ii),

“qualified trust” applies in that section

The term “qualified trust” means an employees’ trust described in section 401(a) which is exempt from tax under section 501(a). (B) Eligible retirement plan

“securities” applies in that section

The term “securities” means only shares of stock and bonds or debentures issued by a corporation with interest coupons or in registered form. (ii) Securities of the employer

“securities of the employer corporation” applies in that section

The term “securities of the employer corporation” includes securities of a parent or subsidiary corporation (as defined in subsections (e) and (f) of section 424) of the employer corporation. [(5) Repealed. Pub. L. 104–188, title I, § 1401(b)(13) , Aug. 20, 1996 , 110 Stat. 1789 ] (6) Direct trustee-to-trustee transfers Any amount transferred in a direct trustee-to-trustee transfer in accordance with section 401(a)(31) shall not be includible in gross income for the taxable year of such transfer.

“years of service” applies in that section

the term “years of service” has the meaning given such term by section 403(b). (8) Matching contributions on behalf of self-employed individuals not treated as elective employer contributions Except as provided in section 401(k)(3)(D)(ii), any matching contribution described in section 401(m)(4)(A) which is made on behalf of a self-employed individual (as defined in section 401(c)) shall not be treated as an elective employer contribution under a qualified cash or deferred arrangement (as defined in section 401(k)) for purposes of this title.

“applicable retirement plan” applies in that section

The term “applicable retirement plan” means— (A) an employees’ trust described in section 401(a) which is exempt from tax under section 501(a), (B) a plan under which amounts are contributed by an individual’s employer for an annuity contract described in section 403(b), and (C) an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A). (2) Elective deferral

“designated Roth contribution” applies in that section

The term “designated Roth contribution” means any elective deferral, matching contribution, or nonelective contribution which— (A) is excludable from gross income of an employee without regard to this section, and (B) the employee designates (at such time and in such manner as the Secretary may prescribe) as not being so excludable.

“elective deferral” applies in that section

The term “elective deferral” means— (A) any elective deferral described in subparagraph (A) or (C) of section 402(g)(3), and (B) any elective deferral of compensation by an individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A). (3) Matching contribution

“matching contribution” applies in that section

the term “matching contribution” has the meaning given such term in section 401(m)(4). (7) Distributions (A) In general A pension-linked emergency savings account shall allow for withdrawal by the participant on whose behalf the account is established of the account balance, in whole or in part at the discretion of the participant, at least once per calendar month and for distribution of such withdrawal to the participant as soon as practicable after the date on which the participant elects to make such withdrawal.

“qualified distribution” applies in that section

The term “qualified distribution” has the meaning given such term by section 408A(d)(2)(A) (without regard to clause (iv) thereof). (B) Distributions within nonexclusion period A payment or distribution from a designated Roth account shall not be treated as a qualified distribution if such payment or distribution is made within the 5-taxable-year period beginning with the earlier of— (i) the first taxable year for which the individual made a designated Roth contribution to any designated Roth account established for such individual under the same applicable retirement plan, or (ii) if a rollover contribution was made to such designated Roth account from a designated Roth account previously …

“qualified Roth contribution program” applies in that section

The term “qualified Roth contribution program” means a program under which an employee may elect to make, or to have made on the employee’s behalf, designated Roth contributions in lieu of all or a portion of elective deferrals the employee is otherwise eligible to make, or of matching contributions or nonelective contributions which may otherwise be made on the employee’s behalf, under the applicable retirement plan.

“church” applies in that section

the term “church” has the meaning given to such term by section 3121(w)(3)(A). Such term shall include any qualified church-controlled organization (as defined in section 3121(w)(3)(B)). (C) State and local governmental plans For purposes of paragraph (1)(D), the requirements of subparagraph (A)(i) (other than those relating to section 401(a)(17)) shall not apply to a governmental plan (within the meaning of section 414(d)) maintained by a State or local government or political subdivision thereof (or agency or instrumentality thereof).

“eligible employee” applies in that section

the term “eligible employee” means any employee of the employer other than an employee who is permitted to be excluded under paragraph (12)(A). (17) Special rules relating to hardship withdrawals For purposes of paragraphs (7) and (11)— (A) Amounts which may be withdrawn The following amounts may be distributed upon hardship of the employee: (i) Contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)). (ii) Qualified nonelective contributions (as defined in section 401(m)(4)(C)). (iii) Qualified matching contributions described in section 401(k)(3)(D)(ii)(I). (iv) Earnings on any contributions described in clause (i), (ii), or (iii).

“eligible employer” applies in that section

The term “eligible employer” means any employer if the employer does not maintain a qualified plan with respect to which contributions are made, or benefits are accrued, for service in the year for which the determination is being made. If only individuals other than employees described in subparagraph (A) of section 410(b)(3) are eligible to participate in such arrangement, then the preceding sentence shall be applied without regard to any qualified plan in which only employees described in such subparagraph are eligible to participate. (ii) Relief for acquisitions, etc. Rules similar to the rules of section 408(p)(10) shall apply for purposes of clause (i). (iii) Qualified plan

“employee” applies in that section

the term “employee” includes an individual who is an employee within the meaning of section 401(c)(1), and the employer of such individual is the person treated as his employer under section 401(c)(4). (4) Rollover amounts (A) General rule If— (i) any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in an eligible rollover distribution (within the meaning of section 402(c)(4)), (ii) the employee transfers any portion of the property he receives in such distribution to an eligible retirement plan, and (iii) in the case of a distribution of property other than money, the amount so transferred consists of the property …

“includible compensation” applies in that section

the term “includible compensation” means, in the case of any employee, the amount of compensation which is received from the employer described in paragraph (1)(A), and which is includible in gross income (computed without regard to section 911) for the most recent period (ending not later than the close of the taxable year) which under paragraph (4) may be counted as one year of service, and which precedes the taxable year by no more than five years. Such term does not include any amount contributed by the employer for any annuity contract to which this subsection applies.

“qualified percentage” applies in that section

the term “qualified percentage” means, with respect to any employee, any percentage determined under the plan if such percentage is applied uniformly and is not less than 3 or more than 15 percent. (D) Contribution limitations (i) In general The requirements of this subparagraph are met if, under the plan— (I) the only contributions which may be made are elective contributions of eligible employees, and (II) the aggregate amount of such elective contributions which may be made with respect to any employee for any calendar year shall not exceed $6,000.

“qualified plan” applies in that section

The term “qualified plan” means a plan, contract, pension, account, or trust described in subparagraph (A) or (B) of paragraph (5) of section 219(g) (determined without regard to the last sentence of such paragraph (5)). (F) Eligible employee For purposes of this paragraph,

“regulated investment company” applies in that section

the term “regulated investment company” means a domestic corporation which is a regulated investment company within the meaning of section 851(a). (D) Employee certification In determining whether a distribution is upon the financial hardship of an employee, the administrator of the plan may rely on a written certification by the employee that the distribution is— (i) on account of a financial need of a type which is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need, and (ii) not in excess of the amount required to satisfy such financial need, and that the employee has no alternative means reasonably available to satisfy such financial need.

“retirement income account” applies in that section

the term “retirement income account” means a defined contribution program established or maintained by a church, or a convention or association of churches, including an organization described in section 414(e)(3)(A), to provide benefits under section 403(b) for an employee described in paragraph (1) (including an employee described in section 414(e)(3)(B)) or his beneficiaries.

“safe harbor deferral-only plan” applies in that section

the term “safe harbor deferral-only plan” means any plan which meets— (i) the automatic deferral requirements of subparagraph (C), (ii) the contribution limitations of subparagraph (D), and (iii) the requirements of subparagraph (E) of section 401(k)(13). (C) Automatic deferral (i) In general The requirements of this subparagraph are met if, under the plan, each eligible employee is treated as having elected to have the employer make elective contributions in an amount equal to a qualified percentage of compensation.

“applicable dividend” applies in that section

The term “applicable dividend” means any dividend which, in accordance with the plan provisions— (i) is paid in cash to the participants in the plan or their beneficiaries, (ii) is paid to the plan and is distributed in cash to participants in the plan or their beneficiaries not later than 90 days after the close of the plan year in which paid, (iii) is, at the election of such participants or their beneficiaries— (I) payable as provided in clause (i) or (ii), or (II) paid to the plan and reinvested in qualifying employer securities, or (iv) is used to make payments on a loan described in subsection (a)(9) the proceeds of which were used to acquire the employer securities (whether or not …

“applicable employer securities” applies in that section

the term “applicable employer securities” means, with respect to any dividend, employer securities which are held on the record date for such dividend by an employee stock ownership plan which is maintained by— (A) the corporation paying such dividend, or (B) any other corporation which is a member of a controlled group of corporations (within the meaning of section 409( l )(4)) which includes such corporation. (4) Time for deduction (A) In general The deduction under paragraph (1) shall be allowable in the taxable year of the corporation in which the dividend is paid or distributed to a participant or his beneficiary.

“compensation” applies in that section

the term “compensation” shall include amounts treated as “participant’s compensation” under subparagraph (C) or (D) of section 415(c)(3). (b) Method of contributions, etc., having the effect of a plan; certain deferred benefits (1) Method of contributions, etc., having the effect of a plan If— (A) there is no plan, but (B) there is a method or arrangement of employer contributions or compensation which has the effect of a stock bonus, pension, profit-sharing, or annuity plan, or other plan deferring the receipt of compensation (including a plan described in paragraph (2)), subsection (a) shall apply as if there were such a plan.

“controlled group” applies in that section

the term “controlled group” has the meaning provided by section 1563(a), determined without regard to section 1563(a)(4) and (e)(3)(C). (D) Amount determined on basis of unfunded current liability In the case of a defined benefit plan which is a multiemployer plan, except as provided in regulations, the maximum amount deductible under the limitations of this paragraph shall not be less than the excess (if any) of— (i) 140 percent of the current liability of the plan determined under section 431(c)(6)(D), over (ii) the value of the plan’s assets determined under section 431(c)(2).

“earned income” applies in that section

the term “earned income” has the meaning assigned to it by section 401(c)(2); (C) the contributions to such plan on behalf of an individual who is an employee within the meaning of section 401(c)(1) shall be considered to satisfy the conditions of section 162 or 212 to the extent that such contributions do not exceed the earned income of such individual (determined without regard to the deductions allowed by this section) derived from the trade or business with respect to which such plan is established, and to the extent that such contributions are not allocable (determined in accordance with regulations prescribed by the Secretary) to the purchase of life, accident, health, or other …

“employee” applies in that section

the term “employee” includes an individual who is an employee within the meaning of section 401(c)(1), and the employer of such individual is the person treated as his employer under section 401(c)(4);

“employee stock ownership plan” applies in that section

The term “employee stock ownership plan” has the meaning given such term by section 4975(e)(7). Such term includes a tax credit employee stock ownership plan (as defined in section 409). (7) Full vesting In accordance with section 411, an applicable dividend described in clause (iii)(II) of paragraph (2)(A) shall be subject to the requirements of section 411(a)(1). (l) Limitation on amount of annual compensation taken into account For purposes of applying the limitations of this section, the amount of annual compensation of each employee taken into account under the plan for any year shall not exceed $200,000.

“employer securities” applies in that section

The term “employer securities” has the meaning given such term by section 409( l ). (B) Employee stock ownership plan

“cumulative foreign amount” applies in that section

The term “cumulative foreign amount” means the aggregate amount allowed as a deduction under the appropriate foreign tax laws for the taxable year and all prior taxable years to which this section applies. (3) Effect on earnings and profits, etc. In determining the earnings and profits and accumulated profits of any foreign corporation with respect to a qualified foreign plan, except as provided in regulations, the amount determined under paragraph (1) with respect to any plan for any taxable year shall in no event exceed the amount allowed as a deduction under the appropriate foreign tax laws for such taxable year. (e) Qualified foreign plan For purposes of this section,

“cumulative United States amount” applies in that section

The term “cumulative United States amount” means the aggregate amount determined with respect to the plan under this section for the taxable year and for all prior taxable years to which this section applies. Such determination shall be made for each taxable year without regard to the application of paragraph (1). (B) Cumulative foreign amount