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Source

(Aug. 16, 1954, ch. 736, 68A Stat. 137; , title I, § 23(a)–(c), Sept. 2, 1958, ; , § 3(a), Oct. 4, 1961, ; , § 4(d), Oct. 10, 1962, ; , title II, § 232(e)(4)–(6), Feb. 26, 1964, ; , title III, § 321(b)(2), title V, § 515(a)(2), Dec. 30, 1969, , 644; , title II, §§ 1022(e), , 2004 (c)(4), 2005 (b)(2), Sept. 2, 1974, , 969, 986, 991; , § 1(b), Apr. 15, 1976, ; , title XIV, § 1402(b)(1)(D), (2), title XV, § 1504(a), title XIX, §§ 1901(a)(58), (b)(8)(A), 1906 (b)(13)(A), Oct. 4, 1976, , 1732, 1738, 1774, 1794, 1834; , § 4(b), Oct. 14, 1978, ; , title I, §§ 154(a), 156 (a), (b), 157 (g)(2), Nov. 6, 1978, , 2802, 2808; , title I, § 101(a)(12), (13)(C), Apr. 1, 1980, ; , title III, § 311(b)(3)(B), Aug. 13, 1981, ; , title II, § 251(a), (b), (c)(3), Sept. 3, 1982, ; , title I, § 103(c)(8)(B), Jan. 12, 1983, ; , title I, § 122(c)(4), Apr. 20, 1983, ; , div. A, title IV, § 491(d)(12), title V, §§ 521(c), , (3), (d)(9)–(11), title X, § 1001(b)(4), (e), July 18, 1984, , 867, 869–871, 1011, 1012; , title XI, §§ 1120(a), (b), 1122 (b)(1)(B), (d), 1123 (c), title XVIII, § 1852(a)(3)(A), (B), (5)(B), (b)(10), Oct. 22, 1986, , 2466, 2469, 2474, 2865, 2867; , title I, § 1011(c)(7)(B), (12), (m)(1), (2), title VI, § 6052(a)(1), Nov. 10, 1988, , 3459, 3471, 3696; , title XI, § 11701(k), Nov. 5, 1990, ; , title V, §§ 521(b)(12), (13), , (c)(2), (3), July 3, 1992, , 314, 315; , title I, §§ 1450(c)(1), 1704 (t)(69), Aug. 20, 1996, , 1891; , title XV, §§ 1504(a)(1), , title XVI, § 1601(d)(6)(B), Aug. 5, 1997, , 1064, 1090; , title VI, § 6005(c)(2)(B), July 22, 1998, ; , § 1(a)(7) [title III, § 314(e)(1)], Dec. 21, 2000, , 2763A–643; , title VI, §§ 632(a)(2), , (e)(7), , , 647 (a), June 7, 2001, , 120, 121, 126, 127; , title IV, § 411(p)(1)–(3), Mar. 9, 2002, , 50.)

Amendment of Section
For termination of amendment by section 901 of , see Effective and Termination Dates of 2001 Amendment note below.

Amendments
2002—Subsec. (b)(1). , § 411(p)(1), inserted concluding provisions and struck out former concluding provisions which read as follows: “then amounts contributed by such employer for such annuity contract on or after such rights become nonforfeitable shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such amounts does not exceed the applicable limit under section . The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section (relating to annuities). For purposes of applying the rules of this subsection to amounts contributed by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or section shall not be considered contributed by such employer.” Subsec. (b)(3). , § 411(p)(3), in first sentence, inserted “, and which precedes the taxable year by no more than five years” before period at end and, in second sentence, struck out “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” after “this subsection applies”. Subsec. (b)(6). , § 411(p)(2), struck out heading and text of par. (6). Text read as follows: “For purposes of this subsection and section (relating to special rules for computing employees’ contributions to annuity contracts), if rights of the employee under an annuity contract described in subparagraphs (A) and (B) of paragraph (1) change from forfeitable to nonforfeitable rights, then the amount (determined without regard to this subsection) includible in gross income by reason of such change shall be treated as an amount contributed by the employer for such annuity contract as of the time such rights become nonforfeitable.” 2001—Subsec. (b)(1). , §§ 642(b)(1), , temporarily substituted “section ” for “section ” in concluding provisions. See Effective and Termination Dates of 2001 Amendment note below. , §§ 632(a)(2)(A), , temporarily substituted “the applicable limit under section ” for “the exclusion allowance for such taxable year” in concluding provisions. See Effective and Termination Dates of 2001 Amendment note below. Subsec. (b)(2). , §§ 632(a)(2)(B), , temporarily struck out par. (2), which described exclusion allowance for purposes of subsec. (b) providing general criteria, determination under section rules, number of years of service for duly ordained, commissioned, or licensed ministers or lay employees, and alternative exclusion allowance for such ministers or lay employees. See Effective and Termination Dates of 2001 Amendment note below. Subsec. (b)(3). , §§ 632(a)(2)(C), , temporarily inserted “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” before period at end of second sentence. See Effective and Termination Dates of 2001 Amendment note below. Subsec. (b)(7)(A)(ii). , §§ 646(a)(2)(A), , temporarily substituted “has a severance from employment” for “separates from service”. See Effective and Termination Dates of 2001 Amendment note below. Subsec. (b)(8)(A)(ii). , §§ 641(b)(1), , temporarily substituted “such distribution to an eligible retirement plan described in section , and” for “such distribution to an individual retirement plan or to an annuity contract described in paragraph (1), and”. See Effective and Termination Dates of 2001 Amendment note below. Subsec. (b)(8)(B). , §§ 641(e)(7), , temporarily reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (2) through (7) of section (including paragraph (4)(C) thereof) shall apply for purposes of subparagraph (A).” See Effective and Termination Dates of 2001 Amendment note below. Subsec. (b)(11). , §§ 646(a)(2)(B), , temporarily substituted “severance from employment” for “separation from service” in heading. See Effective and Termination Dates of 2001 Amendment note below. Subsec. (b)(11)(A). , §§ 646(a)(2)(A), , temporarily substituted “has a severance from employment” for “separates from service”. See Effective and Termination Dates of 2001 Amendment note below. Subsec. (b)(13). , §§ 647(a), , temporarily added par. (13). See Effective and Termination Dates of 2001 Amendment note below. 2000—Subsec. (b)(3)(B). substituted “section , , or” for “section or”. 1998—Subsec. (b)(8)(B). inserted “(including paragraph (4)(C) thereof)” after “section ”. 1997—Subsec. (b)(1)(A)(iii). , § 1601(d)(6)(B), added cl. (iii). Subsec. (b)(3). , § 1504(a)(1), inserted at end “Such term includes—” and subpars. (A) and (B). Subsec. (b)(12)(C). , § 1505(c), added subpar. (C). 1996—Subsec. (b)(1)(E). , § 1450(c)(1), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: “in the case of a contract purchased under a plan which provides a salary reduction agreement, the plan meets the requirements of section ,”. Subsec. (b)(10). , § 1704(t)(69), substituted “a direct” for “an direct” in last sentence. 1992—Subsec. (a)(4)(A)(i). , § 521(b)(12)(A), inserted before comma at end “in an eligible rollover distribution (within the meaning of section )”. Subsec. (a)(4)(B). , § 521(b)(12)(B), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Rules similar to the rules of subparagraphs (B) through (G) of section 402(a)(5) and of paragraphs (6) and (7) of section shall apply for purposes of subparagraph (A).” Subsec. (a)(5). , § 522(c)(2), added par. (5). Subsec. (b)(8)(A)(i). , § 521(b)(13)(A), inserted before comma at end “in an eligible rollover distribution (within the meaning of section )”. Subsec. (b)(8)(B) to (D). , § 521(b)(13)(B), added subpar. (B) and struck out former subpars. (B) to (D), which related to special rules for partial distributions, applicability of certain similar rules, and eligibility for rollover treatment of required distributions. Subsec. (b)(10). , § 522(a)(3), (c)(3), substituted “sections and ” for “section ” and inserted at end “Any amount transferred in an direct trustee-to-trustee transfer in accordance with section shall not be includible in gross income for the taxable year of the transfer.” 1990—Subsec. (b)(12)(A). inserted “involving a one-time irrevocable election” after “similar arrangement” in second sentence. 1988—Subsec. (b)(1)(D). , § 1011(m)(1)(B), substituted “paragraph (12)” for “paragraph (10)”. Subsec. (b)(1)(E). , § 1011(c)(7)(B), added subpar. (E). Subsec. (b)(10). , § 1011(m)(1)(A), redesignated par. (10), relating to nondiscrimination requirements, as (12). Subsec. (b)(12). , § 1011(m)(1)(A), redesignated par. (10), relating to nondiscrimination requirements, as (12). Subsec. (b)(12)(A). , § 1011(m)(2), inserted “(17),” after “paragraphs (4), (5),” and “, section ,” after “of section ” in cl. (i). , § 1011(c)(12), inserted after cl. (ii) “For purposes of clause (i), a contribution shall be treated as not made pursuant to a salary reduction agreement if under the agreement it is made pursuant to a 1-time irrevocable election made by the employee at the time of initial eligibility to participate in the agreement or is made pursuant to a similar arrangement specified in regulations.” , § 6052(a)(1), amended last sentence generally. Prior to amendment, last sentence read as follows: “For purposes of this subparagraph, students who normally work less than 20 hours per week may (subject to the conditions applicable under section ) be excluded.” 1986—Subsec. (a)(1). , § 1122(d)(1), substituted “Distributee taxable under section ” for “General rule” in heading and amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Except as provided in paragraph (2), if an annuity contract is purchased by an employer for an employee under a plan which meets the requirements of section (whether or not the employer deducts the amounts paid for the contract under such section), the employee shall include in his gross income the amounts received under such contract for the year received as provided in section (relating to annuities).” Subsec. (a)(2). , § 1122(b)(1)(B), struck out par. (2) which read as follows: “(A) General rule “If— “(i) an annuity contract is purchased by an employer for an employee under a plan described in paragraph (1); “(ii) such plan requires that refunds of contributions with respect to annuity contracts purchased under such plan be used to reduce subsequent premiums on the contracts under the plan; and “(iii) a lump sum distribution (as defined in section ) is paid to the recipient, so much of the total taxable amount (as defined in section 402(e)(4)(D)) of such distribution as is equal to the product of such total taxable amount multiplied by the fraction described in section shall be treated as a gain from the sale or exchange of a capital asset held for more than 6 months. For purposes of this paragraph, in the case of an individual who is an employee without regard to section , determination of whether or not any distribution is a lump sum distribution shall be made without regard to the requirement that an election be made under subsection (e)(4)(B) of section , but no distribution to any taxpayer other than an individual, estate, or trust may be treated as a lump sum distribution under this paragraph. “(B) Cross reference “For imposition of separate tax on ordinary income portion of lump sum distribution, see section .” Subsec. (a)(4)(B). , § 1852(a)(5)(B)(i), substituted “through (G)” for “through (F)”. Subsec. (b)(1). , § 1122(d)(2), amended second sentence generally. Prior to amendment, second sentence read as follows: “The employee shall include in his gross income the amounts received under such contract for the year received as provided in section (relating to annuities)”. Subsec. (b)(1)(D). , § 1120(a), added subpar. (D). Subsec. (b)(7)(A)(ii). , § 1123(c)(2), inserted “in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section ),” after “section ), or”. Subsec. (b)(7)(D). , § 1852(a)(3)(B), struck out subpar. (D) “Distribution requirements” which read as follows: “For purposes of determining when the interest of an employee in a custodial account must be distributed, such account shall be treated in the same manner as an annuity contract.” Subsec. (b)(8)(C). , § 1852(b)(10), inserted “and” before “(F)(i)”. Subsec. (b)(8)(D). , § 1852(a)(5)(B)(ii), added subpar. (D). Subsec. (b)(10). , § 1120(b), added par. (10) relating to nondiscrimination requirements. , § 1852(a)(3)(A), added par. (10) relating to distribution requirements. Subsec. (b)(11). , § 1123(c)(1), added par. (11). Subsec. (c). , § 1122(d)(3), amended last sentence generally. Prior to amendment, last sentence read as follows: “The amount actually paid or made available to any beneficiary under such contract shall be taxable to him in the year in which so paid or made available under section (relating to annuities).” 1984—Subsec. (a)(2)(A). , § 1001(b)(4), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. Subsec. (a)(4)(A)(i). , § 522(a)(2), substituted “any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him,” for “the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in a qualifying rollover distribution.” Subsec. (a)(4)(B). , § 522(d)(9), substituted “(B) through (F)” for “(B) through (E)”. Subsec. (b)(1). , § 491(d)(12), struck out “or 409(b)(3)(C)” after “408(d)(3)(A)(iii)”. Subsec. (b)(7)(D). , § 521(c), added subpar. (D). Subsec. (b)(8)(A)(i). , § 522(a)(3), substituted “any portion of the balance to the credit of an employee in an annuity contract described in paragraph (1) is paid to him” for “the balance to the credit of an employee is paid to him in a qualifying distribution”. Subsec. (b)(8)(B). , § 522(d)(10), substituted provisions relating to special rules for partial distributions for provisions relating to definition of qualifying distributions. Subsec. (b)(8)(C). , § 522(d)(11), substituted “(F)(i)” for “(D)(v), and (E)(i)”. 1983—Subsec. (b)(3). substituted “section ” for “sections and ”. Subsec. (b)(8)(C). substituted “subparagraphs (B), (C), (D)(v), and (E)(i) of section ” for “subparagraphs (B), (C), and (E)(i) of section ”. 1982—Subsec. (b)(2)(B). , § 251(a)(1), (c)(3), substituted “home health service agencies, and certain churches, etc.” for “and home health service agencies”, and “(under section without regard to section )” for “(under section )”. Subsec. (b)(2)(C), (D). , § 251(a)(2), added subpars. (C) and (D). Subsec. (b)(9). , § 251(b), added par. (9). 1981—Subsec. (b)(8)(B)(i). inserted “, or 1 or more distributions of accumulated deductible employee contributions (within the meaning of section )” after “subsection (a)”. 1980—Subsec. (b). substituted in par. (1) “409(b)(3)(C)” for “409(d)(3)(C)”, and in par. (7)(A) “which satisfies” for “which satisfied”. 1978—Subsec. (a)(4). , § 157(g)(2), in subpar. (B) substituted “paragraphs (6) and (7)” for “paragraph (6)”. , among other changes, substituted provision permitting tax free treatment for any portion of a lump sum distribution from a qualified retirement plan which is deposited in an individual retirement account or another qualifying plan for provision which required transfer of all such property received. Subsec. (a)(5). struck out par. (5) which related to special rules concerning time of termination of a profit-sharing plan and the treatment of the sale of a corporate subsidiary or assets as payment or distribution on account of termination of a plan of which an annuity trust was a part. Subsec. (b)(1). , § 156(b), inserted provision relating to application of rules of this subsection to amounts contributed by an employer for a taxable year. Subsec. (b)(7)(A). , § 154(a), struck out “the amounts are paid to provide a retirement benefit for that employee and are to be invested in regulated investment company stock to be held in that custodial account” after “contract for his employee if”, and added cls. (i) and (ii). Subsec. (b)(8). , § 156(a), added par. (8). 1976—Subsec. (a)(2)(A). , § 1402(b)(2), provided that “9 months” would be changed to “1 year”. , § 1402(b) (1)(D), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977. Subsec. (a)(4). , § 1901(a)(58), reenacted provisions following subpar. (C) without substantive change. , § 1(b)(2), substituted “a payment” for “the lump-sum distribution”. Subsec. (a)(4)(A). , § 1(b)(1), restructured provisions by adding cl. (i) and designating existing provision as cl. (ii). Subsec. (a)(5). , § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wher­ever appearing. , § 1(b)(3), added par. (5). Subsec. (b)(1)(A)(ii). , § 1901(b)(8)(A), substituted “educational organization described in section ” for “educational institution (as defined in section )”. Subsec. (b)(4)(B). , § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. Subsec. (b)(7)(C). , § 1504(a), struck out “, and which issues only redeemable stock” after “regulated investment company within the meaning of section ”. 1974—Subsec. (a)(2). , § 2005(b)(2), substituted “a lump sum distribution (as defined in section ) is paid to the recipient” for “the total amounts payable by reason of an employee’s death or other separation from the service, or by reason of the death of an employee after the employee’s separation from the service, are paid to the payee within one taxable year of the payee” as cl. (iii) of subpar. (A), substituted “so much of the total taxable amount (as defined in section 402(e)(4)(D)) of such distribution as is equal to the product of such total taxable amount multiplied by the fraction described in section shall be treated as a gain from the sale or exchange of a capital asset held for more than 6 months. For purposes of this paragraph, in the case of an individual who is an employee without regard to section , determination of whether or not any distribution is a lump sum distribution shall be made without regard to the requirement that an election be made under subsection (e)(4)(B) of section , but no distribution to any taxpayer other than an individual, estate, or trust may be treated as a lump sum distribution under this paragraph” for “then the amount of such payments, to the extent exceeding the amount contributed by the employee (determined by applying section ), which employee contributions shall be reduced by any amounts theretofore paid to him which were not includible in gross income, shall be considered a gain from the sale or exchange of a capital asset held for more than 6 months. This subparagraph shall not apply to amounts paid to any payee to the extent such amounts are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section ” following cl. (iii) of subpar. (A), substituted provisions setting out a cross reference to section for provisions defining “total amounts” as subpar. (B), and struck out subpar. (C) setting out limitations on capital gains treatment. Subsec. (a)(4). , § 2002(g)(6), added par. (4). Subsec. (b)(2). , § 2004(c)(4), designated existing provisions as subpar. (A) and added subpar. (B). Subsec. (b)(7). , § 1022(e), added par. (7). 1969—Subsec. (a)(2)(C). , § 515(a)(2), added subpar. (C). Subsec. (c). , § 321(b)(2), consolidated provisions of subsec. (c) providing for taxability of beneficiary under a nonqualified annuity, the employees gross income to include amount contributed by employer for annuity contract in the year in which amount is contributed, the amount to be included as provided in section of this title and of subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, the gross income to include amount contributed by employer after Dec. 31, 1957, in the year of change from forfeitable to nonforfeitable rights, the new provisions including premiums paid by an employer in accordance with section , except that value of the contract shall be substituted for fair market value of the property for purposes of applying such section , such provision not to be applicable to that portion of premiums paid which is excluded from gross income under subsec. (b) of this section. Subsec. (d). , § 321(b)(2), struck out subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, gross income of the employee to include (amount contributed by employer after Dec. 31, 1957), in year of change from forfeitable to nonforfeitable rights. See subsec. (c) of this section. 1964—Subsecs. (a)(1), (b)(1), (c). , § 232(e)(4)–(6), struck out “except that section shall not apply” after “(relating to annuities)”. 1962—Subsec. (a)(2)(A). , § 4(d)(1), (2), substituted “described in paragraph (1)” for “which meets the requirements of section , (4), (5), and (6)” in cl. (i), and inserted sentence at end thereof providing that this subparagraph shall not apply to amounts paid to any payee to the extent such amounts are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section . Subsec. (a)(3). , § 4(d)(3), added par. (3). 1961—Subsec. (b). , § 3(a)(3), inserted “or public school” in heading. Subsec. (b)(1)(A). , § 3(a)(1), included annuity contracts purchased for an employee, other than one described in clause (i) of this subpar., who performs services for an educational institution, as defined in section of this title, by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of either. Subsec. (b)(3). , § (3)(a)(2), substituted “the employer described in paragraph (1)(A)” for “the employer described in section and exempt from tax under section ”. 1958—Subsec. (a)(1). , § 23(b), substituted “which meets the requirements of section (whether or not the employer deducts the amounts paid for the contract under such section),” for “with respect to which the employer’s contribution is deductible under section , or if an annuity contract is purchased for an employee by an employer described in section which is exempt from tax under section ,”. Subsecs. (b) to (d). , § 23(a), added subsec. (b), redesignated former subsec. (b) as (c), and added subsec. (d).

Effective Date of 2002 Amendment
Amendment by effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, , to which such amendment relates, see section 411(x) of , set out as a note under section of this title.

Effective and Termination Dates of 2001 Amendment
Amendment by section 632(a)(2) of applicable to years beginning after Dec. 31, 2001, see section 632(a)(4) of , set out as a note under section of this title. Amendment by section 641(b)(1), (e)(7) of applicable to distributions after Dec. 31, 2001, see section 641(f)(1) of , set out as a note under section of this title. Amendment by section 642(b)(1) of applicable to distributions after Dec. 31, 2001, see section 642(c) of , set out as a note under section of this title. Amendment by section 646(a)(2) of applicable to distributions after Dec. 31, 2001, see section 646(b) of , set out as a note under section of this title. , title VI, § 647(c), June 7, 2001, , provided that: “The amendments made by this section [amending this section and section of this title] shall apply to trustee-to-trustee transfers after December 31, 2001.” Amendment by inapplicable to taxable, plan, or limitation years beginning after Dec. 31, 2010, and the Internal Revenue Code of 1986 to be applied and administered to such years as if such amendment had never been enacted, see section 901 of , set out as a note under section of this title.

Effective Date of 2000 Amendment
Amendment by effective as if included in the provisions of the Taxpayer Relief Act of 1997, , to which such amendment relates, see section [title III, § 314(g)] of , set out as a note under section of this title.

Effective Date of 1998 Amendment
Amendment by section 6005 of applicable to distributions after Dec. 31, 1998, see section 6005(c)(2)(C) of , set out as a note under section of this title.

Effective Date of 1997 Amendment
Section 1504(a)(2) of provided that: “The amendment made by this subsection [amending this section] shall apply to years beginning after December 31, 1997.” Amendment by section 1505(c) of applicable to taxable years beginning on or after Aug. 5, 1997, with certain governmental plans treated as satisfying requirements for all taxable years beginning before Aug. 5, 1997, see section 1505(d) of , set out as a note under section of this title. Amendment by section 1601(d)(6)(B) of effective as if included in the provisions of the Small Business Job Protection Act of 1996, , to which it relates, see section 1601(j) of , set out as a note under section of this title.

Effective Date of 1996 Amendment
Section 1450(c)(2) of provided that: “The amendment made by this subsection [amending this section] shall apply to years beginning after December 31, 1995, except a contract shall not be required to meet any change in any requirement by reason of such amendment before the 90th day after the date of the enactment of this Act [Aug. 20, 1996].”

Effective Date of 1992 Amendment
Amendment by section 521(b)(12), (13) of applicable to distributions after Dec. 31, 1992, see section 521(e) of , set out as a note under section of this title. Amendment by section 522(a)(3), (c)(2), (3) of applicable, except as otherwise provided, to distributions after Dec. 31, 1992, see section 522(d) of , set out as a note under section of this title.

Effective Date of 1990 Amendment
Amendment by effective, except as otherwise provided, as if included in the provision of the Revenue Reconciliation Act of 1989, , title VII, to which such amendment relates, see section 11701(n) of , set out as a note under section of this title.

Effective Date of 1988 Amendment
Amendment by section 1011(c)(7)(B) of applicable to plan years beginning after Dec. 31, 1987, with exception in case of a plan described in section 1105(c)(2) of , see section 1011(c)(7)(E) of , set out as a note under section of this title. Amendment by section 1011(c)(12), (m)(1), (2) of effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see section 1019(a) of , set out as a note under section of this title. Section 6052(a)(2) of provided that: “The amendment made by paragraph (1) [amending this section] shall take effect as if included in the amendment made by section 1120(b) of the Reform Act [].”

Effective Date of 1986 Amendment
Section 1120(c) of , as amended by , title I, § 1011(m)(3), Nov. 10, 1988, , provided that: “(1) In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to years beginning after December 31, 1988. “(2) Collective bargaining agreements.—In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before March 1, 1986, the amendments made by this section shall not apply to plan years beginning before the earlier of— “(A) January 1, 1991, or “(B) the later of— “(i) January 1, 1989, or “(ii) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after February 28, 1986).” Amendment by section 1122(b)(1)(B), (d) of applicable, except as otherwise provided, to amounts distributed after Dec. 31, 1986, in taxable years ending after such date, see section 1122(h) of , set out as a note under section of this title. Amendment by section 1123(c) of applicable to years beginning after Dec. 31, 1988, but only with respect to distributions from contracts described in subsec. (b) of this section which are attributable to assets other than assets held as of the close of the last year beginning before Jan. 1, 1989, with certain exceptions and transition rule, see section 1123(e) of , as amended, set out as a note under section of this title. Section 1852(a)(3)(C) of provided that: “The amendments made by this paragraph [amending this section] shall apply to benefits accruing after December 31, 1986, in taxable years ending after such date.” Amendment by section 1852(a)(5)(B), (b)(10) of effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, , div. A, to which such amendment relates, see section 1881 of , set out as a note under section of this title.

Effective Date of 1984 Amendment
Amendment by section 491(d)(12) of applicable to obligations issued after Dec. 31, 1983, see section 491(f)(1) of , set out as a note under section of this title. Amendment by section 521(c) of applicable to years beginning after Dec. 31, 1984, see section 521(e) of , set out as a note under section of this title. Amendment by section 522 of applicable to distributions made after July 18, 1984, in taxable years ending after that date, see section 522(e) of , set out as a note under section of this title. Amendment by section 1001(b)(4) of applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of , set out as a note under section of this title.

Effective Date of 1983 Amendments
Amendment by applicable to taxable years beginning after Dec. 31, 1983, except that if an individual’s annuity starting date was deferred under section of this title as in effect on the day before Apr. 20, 1983, such deferral shall end on the first day of such individual’s first taxable year beginning after Dec. 31, 1983, see section 122(d) of , set out as a note under section of this title. Amendment by effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, , to which such amendment relates, see section 109 of , set out as a note under section of this title.

Effective Date of 1982 Amendment
Section 251(e) of , as amended by , § 2, Oct. 22, 1986, , provided that: “(1) In general.—Except as provided in this subsection, the amendments made by this section [amending this section and section of this title, and enacting a provision set out as a note below] shall apply to taxable years beginning after December 31, 1981. “(2) Retirement income accounts.—The amendments made by subsection (b) [amending this section] shall apply to taxable years beginning after December 31, 1974. “(3) Section amendments.—The amendments made by subsection (c) [amending section of this title] shall apply to years beginning after December 31, 1981. “(4) Correction period.—The amendment made by subsection (d) [enacting provisions set out below] shall take effect on July 1, 1982. “(5) Special rule for existing defined benefit arrangements.—Any defined benefit arrangement which is established by a church or a convention or association of churches (including an organization described in section 414(e)(3)(B)(ii) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) and which is in effect on the date of the enactment of this Act [Sept. 3, 1982] shall not be treated as failing to meet the requirements of section 403(b)(2) of such Code merely because it is a defined benefit arrangement.”

Effective Date of 1981 Amendment
Amendment by applicable to taxable years beginning after Dec. 31, 1981, see section 311(i)(1) of , set out as a note under section of this title.

Effective Date of 1980 Amendment
Amendment by effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, , to which such amendment relates, see section 201 of , set out as a note under section of this title.

Effective Date of 1978 Amendments
Section 154(b) of provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1978.” Section 156(d) of , as amended by , title I, § 101(a)(13)(A), Apr. 1, 1980, , provided that: “The amendments made by this section [amending this section and sections , , , , , and ] shall apply to distributions or transfers made after December 31, 1977, in taxable years beginning after such date.” Amendment by section 157(g)(2) of applicable to lump-sum distributions completed after Dec. 31, 1978, in taxable years ending after such date, see section 157(g)(4) of , set out as a note under section of this title. Amendment by applicable with respect to taxable years beginning after Dec. 31, 1974, see section 4(d) of , set out as a note under section of this title.

Effective Date of 1976 Amendments
Section 1402(b)(1) of provided that the amendment made by that section is effective with respect to taxable years beginning in 1977. Section 1402(b)(2) of provided that the amendment made by that section is effective with respect to taxable years beginning after Dec. 31, 1977. Section 1504(b) of provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1975.” Amendment by section 1901(a)(58), (b)(8)(A) of effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of , set out as a note under section of this title. Amendment by applicable with respect to payments made to an employee on or after July 4, 1974, see section 1(e) of , set out as a note under section of this title.

Effective Date of 1974 Amendment
Section 1022(e) of provided that the amendment made by that section is effective Jan. 1, 1974. Amendment by section 2002(g)(6) of applicable on and after Sept. 2, 1974, with respect to contributions to an employees’ trust described in section which is exempt from tax under section or an annuity plan described in section , see section 2002(i)(3) of , set out as a note under section of this title. Amendment by section 2004(c)(4) of applicable to years beginning after Dec. 31, 1975, see section 2004(d) of , set out as an Effective Date; Transition Provisions note under section of this title. Amendment by section 2005(b)(2) of applicable only with respect to distributions or payments made after Dec. 31, 1973, in taxable years beginning after Dec. 31, 1973, see section 2005(d) of , set out as a note under section of this title.

Effective Date of 1969 Amendment
Amendment by section 321(b)(2) of applicable with respect to contributions made and premiums paid after Aug. 1, 1969, see section 321(d) of , set out as an Effective Date note under section of this title. Amendment by section 515(a)(2) of applicable to taxable years ending after Dec. 31, 1969, see section 515(d) of , set out as a note under section of this title.

Effective Date of 1964 Amendment
Amendment by applicable to taxable years beginning after Dec. 31, 1963, see section 232(g) of , set out as a note under section of this title.

Effective Date of 1962 Amendment
Amendment by applicable to taxable years beginning after Dec. 31, 1962, see section 8 of , set out as a note under section of this title.

Effective Date of 1961 Amendment
Section 3(b) of provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to taxable years beginning after December 31, 1957.”

Effective Dates of 1958 Amendment
Section 23(g) of provided that: “The amendments made by subsections (a), (b), (c), and (d) [amending this section and section of this title] shall apply with respect to taxable years beginning after December 31, 1957. The amendments made by subsection (e) [amending section of this title] shall apply with respect to estates of decedents dying after December 31, 1957. The amendments made by subsection (f) [amending section of this title] shall apply with respect to calendar years after 1957.”

Regulations
Secretary of the Treasury or his delegate to issue before Feb. 1, 1988, final regulations to carry out amendments made by section 1120 of , see section 1141 of , set out as a note under section of this title.

Election To Modify Section 403(b) Exclusion Allowance To Conform to Section 415 Modification
, title VI, § 632(b)(3), June 7, 2001, , provided that: “In the case of taxable years beginning after December 31, 1999, and before January 1, 2002, a plan may disregard the requirement in the regulations regarding the exclusion allowance under section 403(b)(2) of the Internal Revenue Code of 1986 that contributions to a defined benefit pension plan be treated as previously excluded amounts for purposes of the exclusion allowance.”

Modifications of Subsection (b) of This Section
Section 1601(d)(4) of , as amended by , title VI, § 6016(a)(2), July 22, 1998, , provided that: “(A) Paragraphs (7)(A)(ii) and (11) of section 403(b) of the Internal Revenue Code of 1986 shall not apply with respect to a distribution from a contract described in section 1450(b)(1) of such Act [, set out below] to the extent that such distribution is not includible in income by reason of— “(i) in the case of distributions before January 1, 1998, section 403(b)(8) or (b)(10) of such Code (determined after the application of section 1450(b)(2) of such Act [, set out below]), and “(ii) in the case of distributions on and after such date, such section . “(B) This paragraph shall apply as if included in section 1450 of the Small Business Job Protection Act of 1996 [, set out below].” Section 1450(a), (b) of provided that: “(a) Multiple Salary Reduction Agreements Permitted.— “(1) General rule.—For purposes of section 403(b) of the Internal Revenue Code of 1986, the frequency that an employee is permitted to enter into a salary reduction agreement, the salary to which such an agreement may apply, and the ability to revoke such an agreement shall be determined under the rules applicable to cash or deferred elections under section 401(k) of such Code. “(2) Constructive receipt.—[Amended section of this title.] “(3) Effective date.—This subsection shall apply to taxable years beginning after December 31, 1995. “(b) Treatment of Indian Tribal Governments.— “(1) In general.—In the case of any contract purchased in a plan year beginning before January 1, 1995, section 403(b) of the Internal Revenue Code of 1986 shall be applied as if any reference to an employer described in section 501(c)(3) of the Internal Revenue Code of 1986 which is exempt from tax under section 501 of such Code included a reference to an employer which is an Indian tribal government (as defined by section 7701(a)(40) of such Code), a subdivision of an Indian tribal government (determined in accordance with section 7871(d) of such Code), an agency or instrumentality of an Indian tribal government or subdivision thereof, or a corporation chartered under Federal, State, or tribal law which is owned in whole or in part by any of the foregoing. “(2) Rollovers.—Solely for purposes of applying section 403(b)(8) of such Code to a contract to which paragraph (1) applies, a qualified cash or deferred arrangement under section 401(k) of such Code shall be treated as if it were a plan or contract described in clause (ii) of section 403(b)(8)(A) of such Code.”

Sampling To Determine Whether Plan Meets Subsection (b)(12) Requirements
Section 6052(b) of provided that: “In the case of plan years beginning in 1989, 1990, or 1991, determinations as to whether a plan meets the requirements of section 403(b)(12) of the 1986 Code may be made on the basis of a statistically valid random sample. The preceding sentence shall apply only if— “(1) the sampling is conducted by an independent person in a manner not inconsistent with regulations prescribed by the Secretary, and “(2) the statistical method and sample size result in a 95 percent probability that the results will have a margin of error not greater than 3 percent.”

Plan Amendments Not Required Until January 1, 1998
For provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after Jan. 1, 1998, see section 1465 of , set out as a note under section of this title.

Plan Amendments Not Required Until January 1, 1994
For provisions directing that if any amendments made by subtitle B [§§ 521–523] of title V of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1994, see section 523 of , set out as a note under section of this title.

Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of , as amended, set out as a note under section of this title.

Correction Period for Church Plans
Section 251(d) of , as amended by , § 2, Oct. 22, 1986, , provided that: “A church plan (within the meaning of section 414(e) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) shall not be treated as not meeting the requirements of section 401 or 403 of such Code if— “(1) by reason of any change in any law, regulation, ruling, or otherwise such plan is required to be amended to meet such requirements, and “(2) such plan is so amended at the next earliest church convention or such other time as the Secretary of the Treasury or his delegate may prescribe.”

Transitional Rule for Making Section 403(b)(8) Rollover in the Case of Payments During 1978
Section 101(a)(13)(B) of , as amended by , § 2, Oct. 22, 1986, , provided that: “In the case of any payment made during 1978 in a qualifying distribution described in section 403(b)(8) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the applicable period specified in section 402(a)(5)(C) of such Code shall not expire before the close of December 31, 1980.”

Transitional Rule in Case of Rollover Contributions to employee Trusts or Annuities
Applicable period specified in section of this title shall not expire before close of Dec. 31, 1980 in case of any payment described in subsec. (a)(4)(A) of this section or section of this title, see section 157(h)(3)(B) of , set out as a note under section of this title.

Section Referred to in Other Sections
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