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

“permissible range” applies in that section

the term “permissible range” means a rate of interest which is not more than 20 percent above, and not more than 20 percent below, the average rate of interest for long-term corporate bonds in the appropriate country for the 15-year period ending on the last day before the beginning of the taxable year. (4) Accounting method Any change in the method (but not the actuarial assumptions) used to determine the amount allowed as a deduction under subsection (a) shall be treated as a change in accounting method under section 446(e). (5) Section 481 applies to election For purposes of section 481, any election under this section shall be treated as a change in the taxpayer’s method of accounting.

“qualified foreign plan” applies in that section

the term “qualified foreign plan” means any written plan of an employer for deferring the receipt of compensation but only if— (1) such plan is for the exclusive benefit of the employer’s employees or their beneficiaries, (2) 90 percent or more of the amounts taken into account for the taxable year under the plan are attributable to services— (A) performed by nonresident aliens, and (B) the compensation for which is not subject to tax under this chapter, and (3) the employer elects (at such time and in such manner as the Secretary shall by regulations prescribe) to have this section apply to such plan. (f) Funded and reserve plans For purposes of this section— (1) Qualified funded plan

“qualified funded plan” applies in that section

The term “qualified funded plan” means a qualified foreign plan which is not a qualified reserve plan. (2) Qualified reserve plan

“qualified reserve plan” applies in that section

The term “qualified reserve plan” means a qualified foreign plan with respect to which an election made by the taxpayer is in effect for the taxable year. An election under the preceding sentence shall be made in such manner and form as the Secretary may by regulations prescribe and, once made, may be revoked only with the consent of the Secretary.

“applicable percentage” applies in that section

the term “applicable percentage” means 3 percent. (II) Election of lower percentage An employer may elect to apply a lower percentage (not less than 1 percent) for any year for all employees eligible to participate in the plan for such year if the employer notifies the employees of such lower percentage within a reasonable period of time before the 60-day election period for such year under paragraph (5)(C). An employer may not elect a lower percentage under this subclause for any year if that election would result in the applicable percentage being lower than the applicable percentage in more than 2 of the years in the 5-year period ending with such year.

“applicable requirement” applies in that section

the term “applicable requirement” means— (i) the requirement under paragraph (2)(A)(i) that an employer be an eligible employer; (ii) the requirement under paragraph (2)(D) that an arrangement be the only plan of an employer; and (iii) the participation requirements under paragraph (4). (C) Transition period For purposes of this paragraph,

“bank” applies in that section

the term “bank” means— (1) any bank (as defined in section 581), (2) an insured credit union (within the meaning of paragraph (6) or (7) of section 101 of the Federal Credit Union Act), and (3) a corporation which, under the laws of the State of its incorporation, is subject to supervision and examination by the Commissioner of Banking or other officer of such State in charge of the administration of the banking laws of such State.

“collectible” applies in that section

the term “collectible” means— (A) any work of art, (B) any rug or antique, (C) any metal or gem, (D) any stamp or coin, (E) any alcoholic beverage, or (F) any other tangible personal property specified by the Secretary for purposes of this subsection.

“compensation” applies in that section

the term “compensation” has the meaning given such term by section 414(s). (C) Year

“designated nondeductible contribution” applies in that section

the term “designated nondeductible contribution” means any contribution to an individual retirement plan for the taxable year which is designated (in such manner as the Secretary may prescribe) as a contribution for which a deduction is not allowable under section 219. (ii) Designation Any designation under clause (i) shall be made on the return of tax imposed by chapter 1 for the taxable year. (3) Time when contributions made In determining for which taxable year a designated nondeductible contribution is made, the rule of section 219(f)(3) shall apply.

“eligible employer” applies in that section

The term “eligible employer” means, with respect to any year, an employer which had no more than 100 employees who received at least $5,000 of compensation from the employer for the preceding year. (II) 2-year grace period An eligible employer who establishes and maintains a plan under this subsection for 1 or more years and who fails to be an eligible employer for any subsequent year shall be treated as an eligible employer for the 2 years following the last year the employer was an eligible employer. If such failure is due to any acquisition, disposition, or similar transaction involving an eligible employer, the preceding sentence shall not apply.

“eligible plan” applies in that section

the term “eligible plan” means any account, annuity, contract, or plan referred to in subparagraph (A). (E) Denial of rollover treatment for required distributions This paragraph shall not apply to any amount to the extent such amount is required to be distributed under subsection (a)(6) or (b)(3). (F) Frozen deposits For purposes of this paragraph, rules similar to the rules of section 402(c)(7) (relating to frozen deposits) shall apply.

“eligible retirement plan” applies in that section

the term “eligible retirement plan” means an eligible retirement plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B). (B) Limitation This paragraph does not apply to any amount described in subparagraph (A)(i) received by an individual from an individual retirement account or individual retirement annuity if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in that subparagraph from an individual retirement account or an individual retirement annuity which was not includible in his gross income because of the application of this paragraph.

“employee” applies in that section

The term “employee” includes an employee as defined in section 401(c)(1). (C) Year

“excess contribution” applies in that section

the term “excess contribution” means, with respect to a highly compensated employee, the excess of elective employer contributions under this paragraph over the maximum amount of such contributions allowable under subparagraph (A)(iii). (D) Deferral percentage For purposes of this paragraph, the deferral percentage for an employee for a year shall be the ratio of— (i) the amount of elective employer contributions actually paid over to the simplified employee pension on behalf of the employee for the year, to (ii) the employee’s compensation (not in excess of the first $200,000) for the year.

“highly compensated employee” applies in that section

the term “highly compensated employee” has the meaning given such term by section 414(q). (H) Termination This paragraph shall not apply to years beginning after December 31, 1996 . The preceding sentence shall not apply to a simplified employee pension of an employer if the terms of simplified employee pensions of such employer, as in effect on December 31, 1996 , provide that an employee may make the election described in subparagraph (A).

“individual retirement account” applies in that section

the term “individual retirement account” means a trust created or organized in the United States for the exclusive benefit of an individual or his beneficiaries, but only if the written governing instrument creating the trust meets the following requirements: (1) Except in the case of a rollover contribution described in subsection (d)(3) or in section 402(c), 403(a)(4), 403(b)(8), or 457(e)(16), no contribution will be accepted unless it is in cash, and contributions will not be accepted for the taxable year on behalf of any individual in excess of the amount in effect for such taxable year under section 219(b)(1)(A).

“individual retirement annuity” applies in that section

the term “individual retirement annuity” means an annuity contract, or an endowment contract (as determined under regulations prescribed by the Secretary), issued by an insurance company which meets the following requirements: (1) The contract is not transferable by the owner. (2) Under the contract— (A) the premiums are not fixed, (B) the annual premium on behalf of any individual will not exceed the dollar amount in effect under section 219(b)(1)(A), and (C) any refund of premiums will be applied before the close of the calendar year following the year of the refund toward the payment of future premiums or the purchase of additional benefits.

“nondeductible limit” applies in that section

The term “nondeductible limit” means the excess of— (I) the amount allowable as a deduction under section 219 (determined without regard to section 219(g)), over (II) the amount allowable as a deduction under section 219 (determined with regard to section 219(g)). (ii) Taxpayer may elect to treat deductible contributions as nondeductible If a taxpayer elects not to deduct an amount which (without regard to this clause) is allowable as a deduction under section 219 for any taxable year, the nondeductible limit for such taxable year shall be increased by such amount. (C) Designated nondeductible contributions (i) In general For purposes of this paragraph,

“qualified charitable distribution” applies in that section

the term “qualified charitable distribution” means any distribution from an individual retirement plan (other than a plan described in subsection (k) or (p))— (i) which is made directly by the trustee to an organization described in section 170(b)(1)(A) (other than any organization described in section 509(a)(3) or any fund or account described in section 4966(d)(2)), and (ii) which is made on or after the date that the individual for whose benefit the plan is maintained has attained age 70½. A distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to subparagraph (A).

“qualified employer plan” applies in that section

The term “qualified employer plan” has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A). (B) Voluntary employee contribution

“qualified higher education expenses” applies in that section

The term “qualified higher education expenses” has the same meaning as when used in section 401(m)(4)(D). (iii) Applicable rules Clause (i) shall apply to an arrangement only if, under the arrangement— (I) matching contributions on account of qualified student loan payments are provided only on behalf of employees otherwise eligible to elect contributions under subparagraph (A)(i)(I), and (II) all employees otherwise eligible to participate in the arrangement are eligible to receive matching contributions on account of qualified student loan payments.

“qualified HSA funding distribution” applies in that section

the term “qualified HSA funding distribution” means a distribution from an individual retirement plan (other than a plan described in subsection (k) or (p)) of the employee to the extent that such distribution is contributed to the health savings account of the individual in a direct trustee-to-trustee transfer.

“qualified plan” applies in that section

the term “qualified plan” means a plan, contract, pension, or trust described in subparagraph (A) or (B) of section 219(g)(5). (E) Applicable dollar amount; cost-of-living adjustment (i) In general For purposes of subparagraph (A)(ii), the applicable dollar amount is— (I) the adjusted dollar amount in the case of an eligible employer described in clause (iii) which had not more than 25 employees who received at least $5,000 of compensation from the employer for the preceding year, (II) the adjusted dollar amount in the case of an eligible employer described in clause (iii) which is not described in subclause (I) and which elects, at such time and in such manner as prescribed by the …

“qualified salary reduction arrangement” applies in that section

the term “qualified salary reduction arrangement” means a written arrangement of an eligible employer under which— (i) an employee eligible to participate in the arrangement may elect to have the employer make payments— (I) as elective employer contributions to a simple retirement account on behalf of the employee, or (II) to the employee directly in cash, (ii) the amount which an employee may elect under clause (i) for any year is required to be expressed as a percentage of compensation and may not exceed a total of the applicable dollar amount for any year, (iii) the employer is required to make a matching contribution to the simple retirement account for any year in an amount equal to so …

“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 if the employee certifies to the employer making the matching contribution that such payment has been made on such a loan. (II) Qualified higher education expenses

“safe harbor plan” applies in that section

the term “safe harbor plan” means a qualified cash or deferred arrangement which meets the requirements of paragraph (11), (12), (13), or (16) of section 401(k). (12) Roth contribution election An individual retirement plan which is designated as a Roth IRA shall not be treated as a simple retirement account under this subsection unless the employee elects for such plan to be so treated (at such time and in such manner as the Secretary may provide).

“simple retirement account” applies throughout this title

the term “simple retirement account” means an individual retirement plan (as defined in section 7701(a)(37))— (A) with respect to which the requirements of paragraphs (3), (4), and (5) are met; and (B) except in the case of a rollover contribution described in subsection (d)(3)(G) or a rollover contribution otherwise described in subsection (d)(3) or in section 402(c), 403(a)(4), 403(b)(8), or 457(e)(16), which is made after the 2-year period described in section 72(t)(6), with respect to which the only contributions allowed are contributions under a qualified salary reduction arrangement. (2) Qualified salary reduction arrangement (A) In general For purposes of this subsection,

“simplified employee pension” applies throughout this title

the term “simplified employee pension” means an individual retirement account or individual retirement annuity— (A) with respect to which the requirements of paragraphs (2), (3), (4), and (5) of this subsection are met, and (B) if such account or annuity is part of a top-heavy plan (as defined in section 416), with respect to which the requirements of section 416(c)(2) are met.

“split-interest entity” applies in that section

the term “split-interest entity” means— (I) a charitable remainder annuity trust (as defined in section 664(d)(1)), but only if such trust is funded exclusively by qualified charitable distributions, (II) a charitable remainder unitrust (as defined in section 664(d)(2)), but only if such unitrust is funded exclusively by qualified charitable distributions, or (III) a charitable gift annuity (as defined in section 501(m)(5)), but only if such annuity is funded exclusively by qualified charitable distributions and commences fixed payments of 5 percent or greater not later than 1 year from the date of funding.

“testing period” applies in that section

The term “testing period” means the period beginning with the month in which the qualified HSA funding distribution is contributed to a health savings account and ending on the last day of the 12th month following such month.

“transition period” applies in that section

the term “transition period” means the period beginning on the date of any transaction described in subparagraph (A) and ending on the last day of the second calendar year following the calendar year in which such transaction occurs.

“voluntary employee contribution” applies in that section

The term “voluntary employee contribution” means any contribution (other than a mandatory contribution within the meaning of section 411(c)(2)(C))— (i) which is made by an individual as an employee under a qualified employer plan which allows employees to elect to make contributions described in paragraph (1), and (ii) with respect to which the individual has designated the contribution as a contribution to which this subsection applies. (r) Cross references (1) For tax on excess contributions in individual retirement accounts or annuities, see section 4973. (2) For tax on certain accumulations in individual retirement accounts or annuities, see section 4974.

“year” applies in that section

The term “year” means— (i) the calendar year, or (ii) if the employer elects, subject to such terms and conditions as the Secretary may prescribe, to maintain the simplified employee pension on the basis of the employer’s taxable year. (9) Cost-of-living adjustment The Secretary shall adjust the $450 amount in paragraph (2)(C) at the same time and in the same manner as under section 415(d) and shall adjust the $200,000 amount in paragraphs (3)(C) and (6)(D)(ii) at the same time, and by the same amount, as any adjustment under section 401(a)(17)(B); except that any increase in the $450 amount which is not a multiple of $50 shall be rounded to the next lowest multiple of $50.

“qualified distribution” applies in that section

The term “qualified distribution” means any payment or distribution— (i) made on or after the date on which the individual attains age 59½, (ii) made to a beneficiary (or to the estate of the individual) on or after the death of the individual, (iii) attributable to the individual’s being disabled (within the meaning of section 72(m)(7)), or (iv) which is a qualified special purpose distribution.

“qualified rollover contribution” applies in that section

The term “qualified rollover contribution” means a rollover contribution— (A) to a Roth IRA from another such account, (B) from an eligible retirement plan, but only if— (i) in the case of an individual retirement plan, such rollover contribution meets the requirements of section 408(d)(3), and (ii) in the case of any eligible retirement plan (as defined in section 402(c)(8)(B) other than clauses (i) and (ii) thereof), such rollover contribution meets the requirements of section 402(c), 403(b)(8), or 457(e)(16), as applicable, and “(C) from a qualified tuition program to the extent provided in section 529(c)(3)(E).

“qualified special purpose distribution” applies in that section

the term “qualified special purpose distribution” means any distribution to which subparagraph (F) of section 72(t)(2) applies. (6) Taxpayer may make adjustments before due date (A) In general Except as provided by the Secretary, if, on or before the due date for any taxable year, a taxpayer transfers in a trustee-to-trustee transfer any contribution to an individual retirement plan made during such taxable year from such plan to any other individual retirement plan, then, for purposes of this chapter, such contribution shall be treated as having been made to the transferee plan (and not the transferor plan).

“Roth IRA” applies throughout this title

the term “Roth IRA” means an individual retirement plan (as defined in section 7701(a)(37)) which is designated (in such manner as the Secretary may prescribe) at the time of establishment of the plan as a Roth IRA. Such designation shall be made in such manner as the Secretary may prescribe. (c) Treatment of contributions (1) No deduction allowed No deduction shall be allowed under section 219 for a contribution to a Roth IRA.

“controlled group of corporations” applies in that section

the term “controlled group of corporations” has the meaning given to such term by section 1563(a) (determined without regard to subsections (a)(4) and (e)(3)(C) of section 1563). (B) Where common parent owns at least 50 percent of first tier subsidiary For purposes of subparagraph (A), if the common parent owns directly stock possessing at least 50 percent of the voting power of all classes of stock and at least 50 percent of each class of nonvoting stock in a first tier subsidiary, such subsidiary (and all other corporations below it in the chain which would meet the 80 percent test of section 1563(a) if the first tier subsidiary were the common parent) shall be treated as includible …

“deemed-owned shares” applies in that section

The term “deemed-owned shares” means, with respect to any person— (I) the stock in the S corporation constituting employer securities of an employee stock ownership plan which is allocated to such person under the plan, and (II) such person’s share of the stock in such corporation which is held by such plan but which is not allocated under the plan to participants.

“disqualified person” applies in that section

The term “disqualified person” means any person if— (i) the aggregate number of deemed-owned shares of such person and the members of such person’s family is at least 20 percent of the number of deemed-owned shares of stock in the S corporation, or (ii) in the case of a person not described in clause (i), the number of deemed-owned shares of such person is at least 10 percent of the number of deemed-owned shares of stock in such corporation.

“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). (B) Employer securities

“employer securities” applies in that section

The term “employer securities” means common stock issued by the employer (or by a corporation which is a member of the same controlled group) which is readily tradable on an established securities market. (2) Special rule where there is no readily tradable common stock If there is no common stock which meets the requirements of paragraph (1),

“employer security” applies in that section

The term “employer security” has the meaning given such term by section 409( l ). (C) Synthetic equity

“member of the family” applies in that section

the term “member of the family” means, with respect to any individual— (i) the spouse of the individual, (ii) an ancestor or lineal descendant of the individual or the individual’s spouse, (iii) a brother or sister of the individual or the individual’s spouse and any lineal descendant of the brother or sister, and (iv) the spouse of any individual described in clause (ii) or (iii). A spouse of an individual who is legally separated from such individual under a decree of divorce or separate maintenance shall not be treated as such individual’s spouse for purposes of this subparagraph.

“nonallocation period” applies in that section

The term “nonallocation period” means the period beginning on the date of the sale of the qualified securities and ending on the later of— (i) the date which is 10 years after the date of sale, or (ii) the date of the plan allocation attributable to the final payment of acquisition indebtedness incurred in connection with such sale.

“nonallocation year” applies in that section

The term “nonallocation year” means any plan year of an employee stock ownership plan if, at any time during such plan year— (i) such plan holds employer securities consisting of stock in an S corporation, and (ii) disqualified persons own at least 50 percent of the number of shares of stock in the S corporation. (B) Attribution rules For purposes of subparagraph (A)— (i) In general The rules of section 318(a) shall apply for purposes of determining ownership, except that— (I) in applying paragraph (1) thereof, the members of an individual’s family shall include members of the family described in paragraph (4)(D), and (II) paragraph (4) thereof shall not apply.

“synthetic equity” applies in that section

The term “synthetic equity” means any stock option, warrant, restricted stock, deferred issuance stock right, or similar interest or right that gives the holder the right to acquire or receive stock of the S corporation in the future. Except to the extent provided in regulations, synthetic equity also includes a stock appreciation right, phantom stock unit, or similar right to a future cash payment based on the value of such stock or appreciation in such value. (7) Regulations and guidance (A) In general The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection.

“tax credit employee stock ownership plan” applies throughout this title

the term “tax credit employee stock ownership plan” means a defined contribution plan which— (1) meets the requirements of section 401(a), (2) is designed to invest primarily in employer securities, and (3) meets the requirements of subsections (b), (c), (d), (e), (f), (g), (h), and ( o ) of this section.

“total distribution” applies in that section

the term “total distribution” means the distribution within 1 taxable year to the recipient of the balance to the credit of the recipient’s account. (6) Payment requirement for installment distributions If an employer is required to repurchase employer securities as part of an installment distribution, the requirements of paragraph (1)(B) shall be treated as met if the amount to be paid for the employer securities is paid not later than 30 days after the exercise of the put option described in paragraph (4).

“applicable covered employee” applies in that section

The term “applicable covered employee” means any— (I) covered employee of a plan sponsor, (II) covered employee of a member of a controlled group which includes the plan sponsor, and (III) former employee who was a covered employee at the time of termination of employment with the plan sponsor or a member of a controlled group which includes the plan sponsor. (ii) Covered employee

“covered employee” applies in that section

The term “covered employee” means an individual described in section 162(m)(3) or an individual subject to the requirements of section 16(a) of the Securities Exchange Act of 1934. (4) Income inclusion for offshore trusts and employer’s financial health For each taxable year that assets treated as transferred under this subsection remain set aside in a trust or other arrangement subject to paragraph (1), (2), or (3), any increase in value in, or earnings with respect to, such assets shall be treated as an additional transfer of property under this subsection (to the extent not previously included in income).

“nonqualified deferred compensation plan” applies in that section

The term “nonqualified deferred compensation plan” means any plan that provides for the deferral of compensation, other than— (A) a qualified employer plan, and (B) any bona fide vacation leave, sick leave, compensatory time, disability pay, or death benefit plan. (2) Qualified employer plan

“plan” applies in that section

The term “plan” includes any agreement or arrangement, including an agreement or arrangement that includes one person. (4) Substantial risk of forfeiture The rights of a person to compensation are subject to a substantial risk of forfeiture if such person’s rights to such compensation are conditioned upon the future performance of substantial services by any individual. (5) Treatment of earnings References to deferred compensation shall be treated as including references to income (whether actual or notional) attributable to such compensation or such income.

“qualified employer plan” applies in that section

The term “qualified employer plan” means— (A) any plan, contract, pension, account, or trust described in subparagraph (A) or (B) of section 219(g)(5) (without regard to subparagraph (A)(iii)), (B) any eligible deferred compensation plan (within the meaning of section 457(b)), and (C) any plan described in section 415(m). (3) Plan includes arrangements, etc.

“restricted period” applies in that section

the term “restricted period” means, with respect to any plan described in subparagraph (A)— (i) any period during which the plan is in at-risk status (as defined in section 430(i)), (ii) any period the plan sponsor is a debtor in a case under title 11, United States Code, or similar Federal or State law, and (iii) the 12-month period beginning on the date which is 6 months before the termination date of the plan if, as of the termination date, the plan is not sufficient for benefit liabilities (within the meaning of section 4041 of the Employee Retirement Income Security Act of 1974).

“unforeseeable emergency” applies in that section

The term “unforeseeable emergency” means a severe financial hardship to the participant resulting from an illness or accident of the participant, the participant’s spouse, or a dependent (as defined in section 152(a)) of the participant, loss of the participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant.

“average benefit percentage” applies in that section

the term “average benefit percentage” means, with respect to any group, the average of the benefit percentages calculated separately with respect to each employee in such group (whether or not a participant in any plan). (C) Benefit percentage For purposes of this paragraph— (i) In general

“benefit percentage” applies in that section

The term “benefit percentage” means the employer-provided contribution or benefit of an employee under all qualified plans maintained by the employer, expressed as a percentage of such employee’s compensation (within the meaning of section 414(s)). (ii) Period for computing percentage At the election of an employer, the benefit percentage for any plan year shall be computed on the basis of contributions or benefits for— (I) such plan year, or (II) any consecutive plan year period (not greater than 3 years) which ends with such plan year and which is specified in such election. An election under this clause, once made, may be revoked or modified only with the consent of the Secretary.

“highly compensated employee” applies in that section

The term “highly compensated employee” has the meaning given such term by section 414(q). (B) Aggregation rules An employer may elect to designate— (i) 2 or more trusts, (ii) 1 or more trusts and 1 or more annuity plans, or (iii) 2 or more annuity plans, as part of 1 plan intended to qualify under section 401(a) to determine whether the requirements of this subsection are met with respect to such trusts or annuity plans. If an employer elects to treat any trusts or annuity plans as 1 plan under this subparagraph, such trusts or annuity plans shall be treated as 1 plan for purposes of section 401(a)(4).

“hour of service” applies in that section

the term “hour of service” means a time of service determined under regulations prescribed by the Secretary of Labor. (D) Maritime industries For purposes of this subsection, in the case of any maritime industry, 125 days of service shall be treated as 1,000 hours of service. The Secretary of Labor may prescribe regulations to carry out this subparagraph.

“nonvested participant” applies in that section

the term “nonvested participant” means a participant who does not have any nonforfeitable right under the plan to an accrued benefit derived from employer contributions. (E) Special rule for maternity or paternity absences (i) General rule In the case of each individual who is absent from work for any period— (I) by reason of the pregnancy of the individual, (II) by reason of the birth of a child of the individual, (III) by reason of the placement of a child with the individual in connection with the adoption of such child by such individual, or (IV) for purposes of caring for such child for a period beginning immediately following such birth or placement, the plan shall treat as hours of …

“qualified plan” applies in that section

the term “qualified plan” means any plan which (without regard to this subsection) meets the requirements of section 401(a). (3) Exclusion of certain employees For purposes of this subsection, there shall be excluded from consideration— (A) employees who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that retirement benefits were the subject of good faith bargaining between such employee representatives and such employer or employers, (B) in the case of a trust established or maintained pursuant to an agreement which the …

“transition period” applies in that section

the term “transition period” means the period— (I) beginning on the date of the change in members of a group, and (II) ending on the last day of the 1st plan year beginning after the date of such change.

“year” applies in that section

the term “year” means the period used in computations pursuant to paragraph (3). (v) Information required to be filed A plan shall not fail to satisfy the requirements of this subparagraph solely because it provides that no credit will be given pursuant to this subparagraph unless the individual furnishes to the plan administrator such timely information as the plan may reasonably require to establish— (I) that the absence from work is for reasons referred to in clause (i), and (II) the number of days for which there was such an absence.

“year of service” applies in that section

the term “year of service” means a 12-month period during which the employee has not less than 1,000 hours of service. For purposes of this paragraph, computation of any 12-month period shall be made with reference to the date on which the employee’s employment commenced, except that, under regulations prescribed by the Secretary of Labor, such computation may be made by reference to the first day of a plan year in the case of an employee who does not complete 1,000 hours of service during the 12-month period beginning on the date his employment commenced.

“1-year break in service” applies in that section

the term “1-year break in service” means a calendar year, plan year, or other 12-consecutive-month period designated by the plan (and not prohibited under regulations prescribed by the Secretary of Labor) during which the participant has not completed more than 500 hours of service. (B) 1 year of service after 1-year break in service For purposes of paragraph (4), in the case of any employee who has any 1-year break in service, years of service before such break shall not be required to be taken into account until he has completed a year of service after his return.

“accrued benefit” applies in that section

the term “accrued benefit” means— (i) in the case of a defined benefit plan, the employee’s accrued benefit determined under the plan and, except as provided in subsection (c)(3), expressed in the form of an annual benefit commencing at normal retirement age, or (ii) in the case of a plan which is not a defined benefit plan, the balance of the employee’s account.

“accumulated contribution” applies in that section

the term “accumulated contribution” means the total of— (i) all mandatory contributions made by the employee, (ii) interest (if any) under the plan to the end of the last plan year to which subsection (a)(2) does not apply (by reason of the applicable effective date), and (iii) interest on the sum of the amounts determined under clauses (i) and (ii) compounded annually— (I) at the rate of 120 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of a plan year) for the period beginning with the 1st plan year to which subsection (a)(2) applies (by reason of the applicable effective date) and ending with the date on which the determination is being made, and …

“applicable defined benefit plan” applies in that section

The term “applicable defined benefit plan” means a defined benefit plan under which the accrued benefit (or any portion thereof) is calculated as the balance of a hypothetical account maintained for the participant or as an accumulated percentage of the participant’s final average compensation. (ii) Regulations to include similar plans The Secretary shall issue regulations which include in the definition of an applicable defined benefit plan any defined benefit plan (or any portion of such a plan) which has an effect similar to an applicable defined benefit plan.

“applicable plan” applies in that section

The term “applicable plan” means a defined benefit plan the terms of which, on or before December 8, 2014 , provided for a normal retirement age which is the earlier of— (i) an age otherwise permitted under subsection (a)(8), or (ii) the age at which a participant completes the number of years (not less than 30 years) of benefit accrual service specified by the plan. A plan shall not fail to be treated as an applicable plan solely because the normal retirement age described in the preceding sentence only applied to certain participants or only applied to employees of certain employers in the case of a plan maintained by more than 1 employer.

“applicable plan amendment” applies in that section

The term “applicable plan amendment” means an amendment to a defined benefit plan which has the effect of converting the plan to an applicable defined benefit plan. (II) Special rule for coordinated benefits If the benefits of 2 or more defined benefit plans established or maintained by an employer are coordinated in such a manner as to have the effect of the adoption of an amendment described in subclause (I), the sponsor of the defined benefit plan or plans providing for such coordination shall be treated as having adopted such a plan amendment as of the date such coordination begins.

“early retirement benefit” applies in that section

the terms “early retirement benefit” and “retirement-type subsidy” have the meaning given such terms in subsection (d)(6)(B)(i). (G) Benefit accrued to date For purposes of this paragraph, any reference to the accrued benefit shall be a reference to such benefit accrued to date.

“hours of service” applies in that section

the term “hours of service” has the meaning provided by section 410(a)(3)(C). (C) Seasonal industries In the case of any seasonal industry where the customary period of employment is less than 1,000 hours during a calendar year, the term “year of service” shall be such period as may be determined under regulations prescribed by the Secretary of Labor. (D) Maritime industries For purposes of this subsection, in the case of any maritime industry, 125 days of service shall be treated as 1,000 hours of service. The Secretary of Labor may prescribe regulations to carry out the purposes of this subparagraph.

“indexing” applies in that section

the term “indexing” means, in connection with an accrued benefit, the periodic adjustment of the accrued benefit by means of the application of a recognized investment index or methodology. (F) Early retirement benefit or retirement-type subsidy For purposes of this paragraph,

“mandatory contributions” applies in that section

the term “mandatory contributions” means amounts contributed to the plan by the employee which are required as a condition of employment, as a condition of participation in such plan, or as a condition of obtaining benefits under the plan attributable to employer contributions. (D) Adjustments The Secretary is authorized to adjust by regulation the conversion factor described in subparagraph (B) from time to time as he may deem necessary. No such adjustment shall be effective for a plan year beginning before the expiration of 1 year after such adjustment is determined and published.

“nonvested participant” applies in that section

the term “nonvested participant” means a participant who does not have any nonforfeitable right under the plan to an accrued benefit derived from employer contributions. (E) Special rule for maternity or paternity absences (i) General rule In the case of each individual who is absent from work for any period— (I) by reason of the pregnancy of the individual, (II) by reason of the birth of a child of the individual, (III) by reason of the placement of a child with the individual in connection with the adoption of such child by such individual, or (IV) for purposes of caring for such child for a period beginning immediately following such birth or placement, the plan shall treat as hours of …

“normal retirement age” applies in that section

the term “normal retirement age” means the earlier of— (A) the time a plan participant attains normal retirement age under the plan, or (B) the later of— (i) the time a plan participant attains age 65, or (ii) the 5th anniversary of the time a plan participant commenced participation in the plan. (9) Normal retirement benefit For purposes of this section,

“normal retirement benefit” applies in that section

the term “normal retirement benefit” means the greater of the early retirement benefit under the plan, or the benefit under the plan commencing at normal retirement age. The normal retirement benefit shall be determined without regard to— (A) medical benefits, and (B) disability benefits not in excess of the qualified disability benefit. For purposes of this paragraph, a qualified disability benefit is a disability benefit provided by a plan which does not exceed the benefit which would be provided for the participant if he separated from the service at normal retirement age.

“retirement-type subsidy” applies in that section

the terms “early retirement benefit” and “retirement-type subsidy” have the meaning given such terms in subsection (d)(6)(B)(i). (G) Benefit accrued to date For purposes of this paragraph, any reference to the accrued benefit shall be a reference to such benefit accrued to date.

“rollover contributions” applies in that section

the term “rollover contributions” means any rollover contribution under sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16). [(12) Repealed. Pub. L. 109–280, title IX, § 904(a)(2) , Aug. 17, 2006 , 120 Stat.

“year” applies in that section

the term “year” means the period used in computations pursuant to paragraph (5). (v) Information required to be filed A plan shall not fail to satisfy the requirements of this subparagraph solely because it provides that no credit will be given pursuant to this subparagraph unless the individual furnishes to the plan administrator such timely information as the plan may reasonably require to establish— (I) that the absence from work is for reasons referred to in clause (i), and (II) the number of days for which there was such an absence. (7) Accrued benefit (A) In general For purposes of this section,

“year of participation” applies in that section

the term “year of participation” means a period of service (beginning at the earliest date on which the employee is a participant in the plan and which is included in a period of service required to be taken into account under section 410(a)(5), determined without regard to section 410(a)(5)(E)) as determined under regulations prescribed by the Secretary of Labor which provide for the calculation of such period on any reasonable and consistent basis.

“year of service” applies in that section

the term “year of service” means a calendar year, plan year, or other 12-consecutive month period designated by the plan (and not prohibited under regulations prescribed by the Secretary of Labor) during which the participant has completed 1,000 hours of service. (B) Hours of service For purposes of this subsection,

“years of service” applies in that section

the term “years of service” has the meaning provided by section 410(a)(3)(A). (F) Certain insured defined benefit plans Notwithstanding subparagraphs (A), (B), and (C), a defined benefit plan satisfies the requirements of this paragraph if such plan— (i) is funded exclusively by the purchase of insurance contracts, and (ii) satisfies the requirements of subparagraphs (B) and (C) of section 412(e)(3) (relating to certain insurance contract plans), but only if an employee’s accrued benefit as of any applicable date is not less than the cash surrender value his insurance contracts would have on such applicable date if the requirements of subparagraphs (D), (E), and (F) of section 412(e)(3) …

“controlled group” applies in that section

the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or ( o ) of section 414. (e) Plans to which section applies (1) In general Except as provided in paragraphs (2) and (4), this section applies to a plan if, for any plan year beginning on or after the effective date of this section for such plan under the Employee Retirement Income Security Act of 1974— (A) such plan included a trust which qualified (or was determined by the Secretary to have qualified) under section 401(a), or (B) such plan satisfied (or was determined by the Secretary to have satisfied) the requirements of section 403(a).

“waived funding deficiency” applies in that section

the term “waived funding deficiency” means the portion of the minimum funding standard under subsection (a) (determined without regard to the waiver) for a plan year waived by the Secretary and not satisfied by employer contributions.

“pooled plan provider” applies in that section

the term “pooled plan provider” means, with respect to any plan, a person who— (i) is designated by the terms of the plan as a named fiduciary (within the meaning of section 402(a)(2) of the Employee Retirement Income Security Act of 1974), as the plan administrator, and as the person responsible to perform all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that— (I) the plan meets any requirement applicable under the Employee Retirement Income Security Act of 1974 or this title to a plan described in section 401(a) or to a plan that consists of individual retirement …

“accrued benefit” applies in that section

The term “accrued benefit” means— (i) in the case of a defined benefit plan, the employee’s accrued benefit determined under the plan, and (ii) in the case of a plan other than a defined benefit plan, the balance of the employee’s account under the plan.

“affiliated service group” applies in that section

the term “affiliated service group” means a group consisting of a service organization (hereinafter in this paragraph referred to as the “first organization”) and one or more of the following: (A) any service organization which— (i) is a shareholder or partner in the first organization, and (ii) regularly performs services for the first organization or is regularly associated with the first organization in performing services for third persons, and (B) any other organization if— (i) a significant portion of the business of such organization is the performance of services (for the first organization, for organizations described in subparagraph (A), or for both) of a type historically …

“alternate payee” applies in that section

The term “alternate payee” means any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant. (9) Subsection not to apply to plans to which section 401(a)(13) does not apply This subsection shall not apply to any plan to which section 401(a)(13) does not apply.

“annual reminder notice” applies in that section

the term “annual reminder notice” means the notice described in section 111(c) of the Employee Retirement Income Security Act of 1974. (cc) Correcting automatic contribution errors (1) In general Any plan or arrangement shall not fail to be treated as a plan described in sections 401(a), 403(b), 408, or 457(b), as applicable, solely by reason of a corrected error. (2) Corrected error defined For purposes of this subsection,

“annuity contract” applies in that section

The term “annuity contract” includes a custodial account described in section 403(b)(7) and a retirement income account described in section 403(b)(9). (C) Accrued benefit

“applicable defined contribution plan” applies in that section

The term “applicable defined contribution plan” means a defined contribution plan which includes a qualified cash or deferred arrangement. (B) Qualified cash or deferred arrangement

“applicable employer plan” applies in that section

The term “applicable employer plan” means— (i) an employees’ trust described in section 401(a) which is exempt from tax under section 501(a), (ii) a plan under which amounts are contributed by an individual’s employer for an annuity contract described in section 403(b), (iii) an eligible deferred compensation plan under section 457 of an eligible employer described in section 457(e)(1)(A), and (iv) an arrangement meeting the requirements of section 408(k) or (p). (B) Elective deferral

“applicable percentage” applies throughout its part

the term “applicable percentage” means, with respect to each of the plans described in clauses (i) and (ii) of subparagraph (A), the percentage determined by dividing— (i) the excess (if any) of— (I) the sum of the funding target and target normal cost determined under section 430, over (II) the amount of the assets required to be allocated to the plan after the spin-off (without regard to this paragraph), by (ii) the sum of the excess amounts determined separately under clause (i) for all such plans. (C) Excess assets For purposes of subparagraph (A),

“applicable provision” applies in that section

the term “applicable provision” means any provision which specifically refers to this subsection. (t) Application of controlled group rules to certain employee benefits (1) In general All employees who are treated as employed by a single employer under subsection (b), (c), or (m) shall be treated as employed by a single employer for purposes of an applicable section. The provisions of subsection ( o ) shall apply with respect to the requirements of an applicable section. (2) Applicable section For purposes of this subsection,

“applicable section” applies in that section

the term “applicable section” means section 79, 106, 117(d), 125, 127, 129, 132, 137, 274(j), 505, or 4980B. (u) Special rules relating to veterans’ reemployment rights under USERRA and to differential wage payments to members on active duty (1) Treatment of certain contributions made pursuant to veterans’ reemployment rights If any contribution is made by an employer or an employee under an individual account plan with respect to an employee, or by an employee to a defined benefit plan that provides for employee contributions, and such contribution is required by reason of such employee’s rights under chapter 43 of title 38, United States Code, resulting from qualified military service, …

“church or convention or association of churches” applies in that section

The term “church or convention or association of churches” includes an organization described in subparagraph (A) or (B)(ii) of subsection (e)(3). (B) Annuity contract

“church plan” applies throughout its part

the term “church plan” means a plan established and maintained (to the extent required in paragraph (2)(B)) for its employees (or their benefici­aries) by a church or by a convention or association of churches which is exempt from tax under section 501.

“compensation” applies in that section

The term “compensation” has the same meaning as when used in section 415; except that such term shall include— (I) any employer contribution under a qualified cash or deferred arrangement to the extent not included in gross income under section 402(e)(3) or 402(h)(1)(B), (II) any amount which the employee would have received in cash but for an election under a cafeteria plan (within the meaning of section 125), and (III) any amount contributed to an annuity contract described in section 403(b) pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)). (6) Other rules For purposes of this subsection— (A) Related persons

“controlled group” applies in that section

the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or ( o ). (E) Paragraph not to apply to multiemployer plans This paragraph does not apply to any multiemployer plan with respect to any spin-off to the extent that participants either before or after the spin-off are covered under a multiemployer plan to which title IV of the Employee Retirement Income Security Act of 1974 applies. (F) Application to similar transaction Except as provided by the Secretary, rules similar to the rules of this paragraph shall apply to transactions similar to spin-offs.

“corrected error” applies in that section

the term “corrected error” means a reasonable administrative error— (A) (i) made in implementing an automatic enrollment or automatic escalation feature with respect to an eligible employee (or an affirmative election made by an eligible employee covered by such feature), or (ii) made by failing to afford an eligible employee the opportunity to make an affirmative election because such employee was improperly excluded from the plan], 3 and (B) that is corrected prospectively by implementing an automatic enrollment or automatic escalation feature with respect to an eligible employee (or an affirmative election made by an eligible employee) determined in accordance with the terms of an …

“correction period” applies in that section

The term “correction period” means— (i) the period, ending 270 days after the date of mailing by the Secretary of a notice of default with respect to the plan’s failure to meet one or more of the requirements of this subsection; (ii) any period set by a court of competent jurisdiction after a final determination that the plan fails to meet such requirements, or, if the court does not specify such period, any reasonable period determined by the Secretary on the basis of all the facts and circumstances, but in any event not less than 270 days after the determination has become final; or (iii) any additional period which the Secretary determines is reasonable or necessary for the correction of …

“defined benefit plan” applies throughout its part

the term “defined benefit plan” means any plan which is not a defined contribution plan. (k) Certain plans A defined benefit plan which provides a benefit derived from employer contributions which is based partly on the balance of the separate account of a participant shall— (1) for purposes of section 410 (relating to minimum participation standards), be treated as a defined contribution plan, (2) for purposes of sections 72(d) (relating to treatment of employee contributions as separate contract), 411(a)(7)(A) (relating to minimum vesting standards), 415 (relating to limitations on benefits and contributions under qualified plans), and 401(m) (relating to nondiscrimination tests for …

“defined contribution plan” applies throughout its part

the term “defined contribution plan” means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant’s account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant’s account. (j) Defined benefit plan For purposes of this part,

“differential wage payment” applies in that section

the term “differential wage payment” has the meaning given such term by section 3401(h)(2). (v) Catch-up contributions for individuals age 50 or over (1) In general An applicable employer plan shall not be treated as failing to meet any requirement of this title solely because the plan permits an eligible participant to make additional elective deferrals in any plan year.

“domestic relations order” applies in that section

The term “domestic relations order” means any judgment, decree, or order (including approval of a property settlement agreement) which— (i) relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child, or other dependent of a participant, and (ii) is made pursuant to a State or Tribal domestic relations law (including a community property law). For purposes of clause (ii), the term “Tribal” with respect to a domestic relations law means such a law which is issued by or under the laws of an Indian tribal government, a subdivision of such an Indian tribal government, or an agency or instrumentality of either.

“earliest retirement age” applies in that section

the term “earliest retirement age” means the earlier of— (i) the date on which the participant is entitled to a distribution under the plan, or (ii) the later of— (I) the date the participant attains age 50, or (II) the earliest date on which the participant could begin receiving benefits under the plan if the participant separated from service.

“elective deferral” applies in that section

the term “elective deferral” has the meaning given such term by section 402(g)(3); except that such term shall include any deferral of compensation under an eligible deferred compensation plan (as defined in section 457(b)). (D) After-tax employee contributions References in subparagraphs (A) and (B) to elective deferrals shall be treated as including references to employee contributions.

“eligible automatic contribution arrangement” applies in that section

the term “eligible automatic contribution arrangement” means an arrangement under an applicable employer plan— (A) under which a participant may elect to have the employer make payments as contributions under the plan on behalf of the participant, or to the participant directly in cash, (B) under which the participant is treated as having elected to have the employer make such contributions in an amount equal to a uniform percentage of compensation provided under the plan until the participant specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage), and (C) which meets the requirements of paragraph (4).

“eligible combined plan” applies in that section

The term “eligible combined plan” means a plan— (i) which is maintained by an employer which, at the time the plan is established, is a small employer, (ii) which consists of a defined benefit plan and an applicable defined contribution plan, (iii) the assets of which are held in a single trust forming part of the plan and are clearly identified and allocated to the defined benefit plan and the applicable defined contribution plan to the extent necessary for the separate application of this title under paragraph (1), and (iv) with respect to which the benefit, contribution, vesting, and nondiscrimination requirements of subparagraphs (B), (C), (D), (E), and (F) are met.

“eligible participant” applies in that section

the term “eligible participant” means a participant in a plan— (A) who would attain age 50 by the end of the taxable year, (B) with respect to whom no other elective deferrals may (without regard to this subsection) be made to the plan for the plan (or other applicable) year by reason of the application of any limitation or other restriction described in paragraph (3) or comparable limitation or restriction contained in the terms of the plan. (6) Other definitions and rules For purposes of this subsection— (A) Applicable employer plan

“excess assets” applies throughout its part

the term “excess assets” means an amount equal to the excess (if any) of— (i) the fair market value of the assets of the original plan immediately before the spin-off, over (ii) the amount of assets required to be allocated after the spin-off to all plans (determined without regard to this paragraph). (D) Certain spun-off plans not taken into account (i) In general A plan involved in a spin-off which is described in clause (ii), (iii), or (iv) shall not be taken into account for purposes of this paragraph, except that the amount determined under subparagraph (C)(ii) shall be increased by the amount of assets allocated to such plan.

“governmental plan” applies throughout its part

the term “governmental plan” means a plan established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. The term “governmental plan” also includes any plan to which the Railroad Retirement Act of 1935 or 1937 applies and which is financed by contributions required under that Act and any plan of an international organization which is exempt from taxation by reason of the International Organizations Immunities Act ( 59 Stat. 669 ).

“highly compensated employee” applies in that section

The term “highly compensated employee” has the meaning given such term by section 414(q). (ii) Nonhighly compensated work force

“highly compensated employee percentage” applies in that section

the term “highly compensated employee percentage” means the percentage which highly compensated employees performing services for the line of business are of all employees performing services for the line of business. (5) Allocation of benefits to line of business For purposes of this subsection, benefits which are attributable to services provided to a line of business shall be treated as provided by such line of business. (6) Headquarters personnel, etc.

“individual account plan” applies in that section

the term “individual account plan” means any defined contribution plan (including any tax-sheltered annuity plan under section 403(b), any simplified employee pension under section 408(k), any qualified salary reduction arrangement under section 408(p), and any eligible deferred compensation plan (as defined in section 457(b))).

“leased employee” applies in that section

the term “leased employee” means any person who is not an employee of the recipient and who provides services to the recipient if— (A) such services are provided pursuant to an agreement between the recipient and any other person (in this subsection referred to as the “leasing organization”), (B) such person has performed such services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, and (C) such services are performed under primary direction or control by the recipient.

“multiemployer plan” applies throughout its part

the term “multiemployer plan” means a plan— (A) to which more than one employer is required to contribute, (B) which is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and (C) which satisfies such other requirements as the Secretary of Labor may prescribe by regulation. (2) Cases of common control For purposes of this subsection, all trades or businesses (whether or not incorporated) which are under common control within the meaning of subsection (c) are considered a single employer.

“nonhighly compensated work force” applies in that section

The term “nonhighly compensated work force” means the aggregate number of individuals (other than highly compensated employees)— (I) who are employees of the recipient (without regard to this subsection) and have performed services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, or (II) who are leased employees with respect to the recipient (determined without regard to this paragraph). (iii) Compensation

“nonqualified church-controlled organization” applies in that section

the term “nonqualified church-controlled organization” means a church-controlled tax-exempt organization described in section 501(c)(3) that is not a qualified church-controlled organization (as defined in section 3121(w)(3)(B)). (C) Permissive aggregation among church-related organizations The church or convention or association of churches with which an organization described in subparagraph (A) is associated (within the meaning of subsection (e)(3)(D)), or an organization designated by such church or convention or association of churches, may elect to treat such organizations as a single employer for a plan year.

“organization” applies in that section

The term “organization” means a corporation, partnership, or other organization. (B) Ownership (i) In general In determining ownership, the principles of section 318(a) shall apply, except that community property laws shall be disregarded for purposes of determining ownership. (ii) Special rules for applying family attribution For purposes of applying the attribution rules under section 318 with respect to clause (i), the following rules apply: (I) Community property laws shall be disregarded for purposes of determining ownership.

“permissible withdrawal” applies in that section

The term “permissible withdrawal” means any withdrawal from an eligible automatic contribution arrangement meeting the requirements of this paragraph which— (i) is made pursuant to an election by an employee, and (ii) consists of elective contributions described in paragraph (3)(B) (and earnings attributable thereto). (B) Time for making election Subparagraph (A) shall not apply to an election by an employee unless the election is made no later than the date which is 90 days after the date of the first elective contribution with respect to the employee under the arrangement.

“plan administrator” applies throughout its part

the term “plan administrator” means— (1) the person specifically so designated by the terms of the instrument under which the plan is operated; (2) in the absence of a designation referred to in paragraph (1)— (A) in the case of a plan maintained by a single employer, such employer, (B) in the case of a plan maintained by two or more employers or jointly by one or more employers and one or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who maintained the plan, or (C) in any case to which subparagraph (A) or (B) does not apply, such other person as the Secretary may by regulation, prescribe.

“qualified cash or deferred arrangement” applies in that section

The term “qualified cash or deferred arrangement” has the meaning given such term by section 401(k)(2). (y) Cooperative and small employer charity pension plans (1) In general For purposes of this title, except as provided in this subsection, a CSEC plan is a defined benefit plan (other than a multiemployer plan)— (A) to which section 104 of the Pension Protection Act of 2006 applies, without regard to— (i) section 104(a)(2) of such Act; (ii) the amendments to such section 104 by section 202(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010; and (iii) paragraph (3)(B); (B) that, as of June 25, 2010 , was maintained by more than one employer …

“qualified domestic relations order” applies in that section

The term “qualified domestic relations order” means a domestic relations order— (i) which creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable with respect to a participant under a plan, and (ii) with respect to which the requirements of paragraphs (2) and (3) are met. (B) Domestic relations order

“qualified military service” applies in that section

the term “qualified military service” means any service in the uniformed services (as defined in chapter 43 of title 38, United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service. (6) Individual account plan For purposes of this subsection,

“related organizations” applies in that section

the term “related organizations” has the same meaning as the term “related persons” when used in section 144(a)(3). (6) Other definitions For purposes of this subsection— (A) Organization defined

“related persons” applies in that section

The term “related persons” has the same meaning as when used in section 144(a)(3). (B) Employees of entities under common control The rules of subsections (b), (c), (m), and ( o ) shall apply. (o) Regulations The Secretary shall prescribe such regulations (which may provide rules in addition to the rules contained in subsections (m) and (n)) as may be necessary to prevent the avoidance of any employee benefit requirement listed in subsection (m)(4) or (n)(3) or any requirement under section 457 through the use of— (1) separate organizations, (2) employee leasing, or (3) other arrangements.

“separate line of business” applies in that section

the term “separate line of business” includes an operating unit in a separate geographic area separately operated for a bona fide business reason. (8) Affiliated service groups This subsection shall not apply in the case of any affiliated service group (within the meaning of section 414(m)). (s) Compensation For purposes of any applicable provision— (1) In general Except as provided in this subsection,

“service organization” applies in that section

the term “service organization” means an organization the principal business of which is the performance of services. (4) Employee benefit requirements For purposes of this subsection, the employee benefit requirements listed in this paragraph are— (A) paragraphs (3), (4), (7), (16), (17), and (26) of section 401(a), and (B) sections 408(k), 408(p), 410, 411, 415, and 416.

“small employer” applies in that section

the term “small employer” has the meaning given such term by section 4980D(d)(2), except that such section shall be applied by substituting “500” for “50” each place it appears. (B) Benefit requirements (i) In general The benefit requirements of this subparagraph are met with respect to the defined benefit plan forming part of the eligible combined plan if the accrued benefit of each participant derived from employer contributions, when expressed as an annual retirement benefit, is not less than the applicable percentage of the participant’s final average pay.

“unenrolled participant” applies in that section

the term “unenrolled participant” means an employee who— (A) is eligible to participate in a defined contribution plan, (B) has been furnished— (i) the summary plan description pursuant to section 104(b) of the Employee Retirement Income Security Act of 1974, and (ii) any other notices related to eligibility under the plan and required to be furnished under this title, or the Employee Retirement Income Security Act of 1974, in connection with such participant’s initial eligibility to participate in such plan, (C) is not participating in such plan, and (D) satisfies such other criteria as the Secretary of the Treasury may determine appropriate, as prescribed in guidance issued in …

“annual addition” applies in that section

the term “annual addition” means the sum of any year of— (A) employer contributions, (B) the employee contributions, and (C) forfeitures. For the purposes of this paragraph, employee contributions under subparagraph (B) are determined without regard to any rollover contributions (as defined in sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16)) without regard to employee contributions to a simplified employee pension which are excludable from gross income under section 408(k)(6).

“annual benefit” applies in that section

the term “annual benefit” means a benefit payable annually in the form of a straight life annuity (with no ancillary benefits) under a plan to which employees do not contribute and under which no rollover contributions (as defined in sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16)) are made.

“church” applies in that section

the terms “church” and “convention or association of churches” have the same meaning as when used in section 414(e). (8) Special rule for difficulty of care payments excluded from gross income (A) In general For purposes of paragraph (1)(B), in the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, the participant’s compensation, or earned income, as the case may be, shall be increased by the amount so excluded.

“convention or association of churches” applies in that section

the terms “church” and “convention or association of churches” have the same meaning as when used in section 414(e). (8) Special rule for difficulty of care payments excluded from gross income (A) In general For purposes of paragraph (1)(B), in the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, the participant’s compensation, or earned income, as the case may be, shall be increased by the amount so excluded.

“defined benefit plan” applies throughout this title

the term “defined contribution plan” or “defined benefit plan” means a defined contribution plan (within the meaning of section 414(i)) or a defined benefit plan (within the meaning of section 414(j)), whichever applies, which is— (A) a plan described in section 401(a) which includes a trust which is exempt from tax under section 501(a), (B) an annuity plan described in section 403(a), (C) an annuity contract described in section 403(b), or (D) a simplified employee pension.

“defined contribution plan” applies throughout this title

the term “defined contribution plan” or “defined benefit plan” means a defined contribution plan (within the meaning of section 414(i)) or a defined benefit plan (within the meaning of section 414(j)), whichever applies, which is— (A) a plan described in section 401(a) which includes a trust which is exempt from tax under section 501(a), (B) an annuity plan described in section 403(a), (C) an annuity contract described in section 403(b), or (D) a simplified employee pension.

“eligible rural electric cooperative plan” applies in that section

The term “eligible rural electric cooperative plan” means a plan maintained by more than 1 employer, with respect to which at least 85 percent of the employers maintaining the plan are rural cooperatives described in clause (i) or (ii) of section 401(k)(7)(B) or are a national association of such a rural cooperative. (ii) Election An employer maintaining an eligible rural cooperative plan may elect not to have subparagraph (A) apply to its employees. (C) Regulations The Secretary shall prescribe such regulations and other guidance as are necessary to limit the application of subparagraph (A) such that it does not result in increased benefits for highly compensated employees.

“highly compensated benefits” applies in that section

the term “highly compensated benefits” means any benefits accrued for an employee in any year on or after the first year in which such employee is a highly compensated employee (as defined in section 414(q)) of the organization described in section 3121(w)(3)(A). For purposes of applying paragraph (1)(B) to highly compensated benefits, all benefits of the employee otherwise taken into account (without regard to this paragraph) shall be taken into account.

“individual medical benefit account” applies in that section

the term “individual medical benefit account” means any separate account— (A) which is established for a participant under a pension or annuity plan, and (B) from which benefits described in section 401(h) are payable solely to such participant, his spouse, or his dependents. (m) Treatment of qualified governmental excess benefit arrangements (1) Governmental plan not affected In determining whether a governmental plan (as defined in section 414(d)) meets the requirements of this section, benefits provided under a qualified governmental excess benefit arrangement shall not be taken into account.

“key employee” applies in that section

the term “key employee” has the meaning given such term by section 416(i)(1), except that in the case of a plan other than a top-heavy plan (within the meaning of section 416(g)), such term shall not include an individual who is a key employee solely by reason of section 416(i)(1)(A)(i).

“nonqualified service credit” applies in that section

the term “nonqualified service credit” means permissive service credit other than that allowed with respect to— (i) service (including parental, medical, sabbatical, and similar leave) as an employee of the Government of the United States, any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing (other than military service or service for credit which was obtained as a result of a repayment described in subsection (k)(3)), (ii) service (including parental, medical, sabbatical, and similar leave) as an employee (other than as an employee described in clause (i)) of an educational organization described in section 170(b)(1)(A)(ii) which is a public, …

“participant’s compensation” applies in that section

The term “participant’s compensation” means the compensation of the participant from the employer for the year. (B) Special rule for self-employed individuals In the case of an employee within the meaning of section 401(c)(1), subparagraph (A) shall be applied by substituting “the participant’s earned income (within the meaning of section 401(c)(2) but determined without regard to any exclusion under section 911)” for “compensation of the participant from the employer”.

“permissive service credit” applies in that section

The term “permissive service credit” means service credit— (i) recognized by the governmental plan for purposes of calculating a participant’s benefit under the plan, (ii) which such participant has not received under such governmental plan, and (iii) which such participant may receive only by making a voluntary additional contribution, in an amount determined under such governmental plan, which does not exceed the amount necessary to fund the benefit attributable to such service credit.

“qualified cost-of-living arrangement” applies in that section

the term “qualified cost-of-living arrangement” means an arrangement under a defined benefit plan which— (i) provides a cost-of-living adjustment to a benefit provided under such plan or a separate plan subject to the requirements of section 412, and (ii) meets the requirements of subparagraphs (C), (D), (E), and (F) and such other requirements as the Secretary may prescribe.

“qualified governmental excess benefit arrangement” applies in that section

the term “qualified governmental excess benefit arrangement” means a portion of a governmental plan if— (A) such portion is maintained solely for the purpose of providing to participants in the plan that part of the participant’s annual benefit otherwise payable under the terms of the plan that exceeds the limitations on benefits imposed by this section, (B) under such portion no election is provided at any time to the participant (directly or indirectly) to defer compensation, and (C) benefits described in subparagraph (A) are not paid from a trust forming a part of such governmental plan unless such trust is maintained solely for the purpose of providing such benefits.

“qualified participant” applies in that section

the term “qualified participant” means a participant— (i) in a defined benefit plan which is maintained by a State, Indian tribal government (as defined in section 7701(a)(40)), or any political subdivision thereof, (ii) with respect to whom the period of service taken into account in determining the amount of the benefit under such defined benefit plan includes at least 15 years of service of the participant— (I) as a full-time employee of any police department or fire department which is organized and operated by the State, Indian tribal government (as so defined), or any political subdivision maintaining such defined benefit plan to provide police protection, firefighting services, or …