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24-11-210. Requirements for qualified plans under Internal Revenue Code.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-11-210. Requirements for qualified plans under Internal Revenue Code.
(a) This section shall be considered a part of the plan of each firemen's relief and pension fund and policemen's pension and relief fund that is subject to this subchapter. Each plan is intended to qualify under the Internal Revenue Code, 26 U.S.C. § 401(a), and is for the exclusive benefit of its members, retired members, and their survivors.
(b)(1) A member, retired member, or survivor of a member or retired member of a firemen's relief and pension fund or a policemen's pension and relief fund may not accrue a retirement pension, disability retirement allowance, death benefit allowance, Deferred Retirement Option Plan benefit, or any other benefit under the fund in excess of the benefit limits applicable to the fund under the Internal Revenue Code, 26 U.S.C. § 415. The Arkansas Fire and Police Pension Review Board shall reduce the amount of any benefit that exceeds those limits by the amount of the excess.
(2) If total benefits under this fund and the benefits and contributions to which any member is entitled under any other qualified plans maintained by the employer that employs the member would otherwise exceed the applicable limits under the Internal Revenue Code, 26 U.S.C. § 415, the benefits the member would otherwise receive from the fund shall be reduced to the extent necessary to enable the benefits to comply with the Internal Revenue Code, 26 U.S.C. § 415, unless the employer has provided other rules that satisfy those requirements.
(c) Any member or survivor who receives any distribution that is an eligible rollover distribution as defined by the Internal Revenue Code, 26 U.S.C. § 402(c)(4), is entitled to have that distribution transferred directly to another eligible retire
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-11-210
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Stable record: arkansas_code:legal_authorities:24-11-210
Source file: gov.ar.code.title.24.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 0c4870e7d718d6850d0504a0e775db5ff1e16f702cb89279d7ec97367db84df9
Source location: content.xml paragraph 11235
Stored source content
24-11-210. Requirements for qualified plans under Internal Revenue Code.
(a) This section shall be considered a part of the plan of each firemen's relief and pension fund and policemen's pension and relief fund that is subject to this subchapter. Each plan is intended to qualify under the Internal Revenue Code, 26 U.S.C. § 401(a), and is for the exclusive benefit of its members, retired members, and their survivors.
(b)(1) A member, retired member, or survivor of a member or retired member of a firemen's relief and pension fund or a policemen's pension and relief fund may not accrue a retirement pension, disability retirement allowance, death benefit allowance, Deferred Retirement Option Plan benefit, or any other benefit under the fund in excess of the benefit limits applicable to the fund under the Internal Revenue Code, 26 U.S.C. § 415. The Arkansas Fire and Police Pension Review Board shall reduce the amount of any benefit that exceeds those limits by the amount of the excess.
(2) If total benefits under this fund and the benefits and contributions to which any member is entitled under any other qualified plans maintained by the employer that employs the member would otherwise exceed the applicable limits under the Internal Revenue Code, 26 U.S.C. § 415, the benefits the member would otherwise receive from the fund shall be reduced to the extent necessary to enable the benefits to comply with the Internal Revenue Code, 26 U.S.C. § 415, unless the employer has provided other rules that satisfy those requirements.
(c) Any member or survivor who receives any distribution that is an eligible rollover distribution as defined by the Internal Revenue Code, 26 U.S.C. § 402(c)(4), is entitled to have that distribution transferred directly to another eligible retirement plan of the member's or survivor's choice on providing direction to the firemen's relief and pension fund or any policemen's pension and relief fund regarding that transfer in accordance with procedures established by the board of trustees of the firemen's relief and pension fund or the board of trustees of the policemen's pension and relief fund.
(d) The total salary taken into account for any purpose for any member or retired member who is an ineligible participant under any firemen's relief and pension fund or any policemen's pension and relief fund may not exceed one hundred fifty thousand dollars ($150,000) a year. This dollar limit shall be adjusted from time to time in accordance with guidelines provided by the United States Secretary of the Treasury. For purposes of this subsection, an “eligible participant” is a person who first became a member before 1996, and an “ineligible participant” is a member who is not an eligible participant.
(e) In the event that a firemen's relief and pension fund or a policemen's pension and relief fund is terminated or partially terminated or employer contributions to the fund are discontinued completely, the rights of the members to their accrued benefits to the extent funded shall be nonforfeitable.
(f) Distributions of benefits must begin not later than April 1 of the year following the calendar year during which the member becomes seventy and one-half (70½) years of age or terminates employment with the employer, whichever is later, and must otherwise conform to the Internal Revenue Code, 26 U.S.C. § 401(a)(9).
(g) If the amount of any benefit is to be determined on the basis of actuarial assumptions that are not otherwise specifically set forth for that purpose in this subchapter, the actuarial assumptions to be used are those earnings and mortality assumptions being used on the date of the determination by the fund's actuary and approved by the board. The actuarial assumptions being used at any particular time shall be treated for all purposes as a part of the rules of the firemen's relief and pension fund or the policeman's pension and relief fund. The actuarial assumptions may be changed by the actuary if approved by the board, but a change in actuarial assumptions may not result in any decrease in benefits accrued as of the effective date of the change.
(h)(1) Notwithstanding any other provision in this subchapter to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with the Internal Revenue Code, 26 U.S.C. § 414(u).
(2) Subdivision (h)(1) of this section shall not preclude any person from receiving more generous treatment for military service pursuant to state law or the provisions of any firemen's relief and pension fund or any policemen's pension and relief fund if such treatment is not inconsistent with the tax qualification requirements.
Cross-references
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirements for qualification** A trust created or organized in the United States and forming part of a stock bonus, pension, or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries shall constitute a qualified trust under this section—
(1) if contributions are made to the trust by such employer, or employees, or both, or by another employer who is entitled to deduct his contributions under section 404(a)(3)(B) (relating to deduction for contributions to profit-sharing and stock bonus plans), or by a charitable remainder trust pursuant to a qualified gratuitous transfer (as defined in section 664(g)(1)), for the purpose of distributing to such employees or their beneficiaries the corpus and income of the fund accumulated by the trust in accordance with such plan;
(2) if under the trust instrument it is impossible, at any time prior to the satisfaction of all liabilities with respect to employees and their beneficiaries under the trust, for any part of the corpus or income to be (within the taxable year or thereafter) used for, or diverted to, purposes other than for the exclusive benefit of his employees or their beneficiaries (but this paragraph shall not be construed, in the case of a multiemployer plan, to prohibit the return of a contribution within 6 months after the plan administrator determines that the contribution was made by a mistake of fact or law (other than a mistake relating to whether the plan is described in section 401(a) or the trust which is part of such plan is exempt from taxation under section 501(a), or the return of any withdrawal liability payment determined to be an overpayment within 6 months of such determination));
(3) if the plan of which such trust is a part satisfies the requireme
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 401
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 401. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1178
TITLE 26—INTERNAL REVENUE CODE
§ 401
1983—Pub. L. 98–21, title III, § 321(e)(2)(D)(ii), Apr. 20,
1983, 97 Stat. 120, substituted ‘‘Employees of foreign af-
filiates covered by section 3121(l) agreements’’ for ‘‘Cer-
tain employees of foreign subsidiaries’’ in item 406.
1980—Pub. L. 96–603, § 2(d)(1), Dec. 28, 1980, 94 Stat.
3510, added item 404A.
Pub. L. 96–222, title I, § 101(a)(7)(L)(v)(VIII), Apr. 1,
1980, 94 Stat. 200, substituted ‘‘tax credit employee
stock ownership plans’’ for ‘‘ESOPS’’ in item 409A.
1978—Pub. L. 95–600, title I, § 141(f)(8), Nov. 6, 1978, 92
Stat. 2795, added item 409A.
1974—Pub. L. 93–406, title II, § 1016(b)(1), Sept. 2, 1974,
88 Stat. 932, inserted heading ‘‘Subpart A—General
Rule’’ and added analysis of subparts.
Pub. L. 93–406, title II, § 2002(h)(2), Sept. 2, 1974, 88
Stat. 970, added items 408 and 409.
1964—Pub. L. 88–272, title II, § 220(c)(1), Feb. 26, 1964, 78
Stat. 62, added items 406 and 407.
1962—Pub. L. 87–792, § 5(b), Oct. 10, 1962, 76 Stat. 827,
added item 405.
§ 401. Qualified pension, profit-sharing, and stock
bonus plans
(a) Requirements for qualification
A trust created or organized in the United
States and forming part of a stock bonus, pen-
sion, or profit-sharing plan of an employer for
the exclusive benefit of his employees or their
beneficiaries shall constitute a qualified trust
under this section—
(1) if contributions are made to the trust by
such employer, or employees, or both, or by
another employer who is entitled to deduct his
contributions under section 404(a)(3)(B) (relat-
ing to deduction for contributions to profit-
sharing and stock bonus plans), or by a chari-
table remainder trust pursuant to a qualified
gratuitous transfer (as defined in section
664(g)(1)), for the p
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 401
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 401. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Taxability of beneficiary of exempt trust** Except as otherwise provided in this section, any amount actually distributed to any distributee by any employees’ trust described in section 401(a) which is exempt from tax under section 501(a) shall be taxable to the distributee, in the taxable year of the distributee in which distributed, under section 72 (relating to annuities).
**(b) Taxability of beneficiary of nonexempt trust**
(1) **Contributions** — Contributions to an employees’ trust made by an employer during a taxable year of the employer which ends with or within a taxable year of the trust for which the trust is not exempt from tax under section 501(a) shall be included in the gross income of the employee in accordance with section 83 (relating to property transferred in connection with performance of services), except that the value of the employee’s interest in the trust shall be substituted for the fair market value of the property for purposes of applying such section.
(2) **Distributions** — The amount actually distributed or made available to any distributee by any trust described in paragraph (1) shall be taxable to the distributee, in the taxable year in which so distributed or made available, under section 72 (relating to annuities), except that distributions of income of such trust before the annuity starting date (as defined in section 72(c)(4)) shall be included in the gross income of the employee without regard to section 72(e)(5) (relating to amounts not received as annuities).
(3) **Grantor trusts** — A beneficiary of any trust described in paragraph (1) shall not be considered the owner of any portion of such trust under subpart E of part I of subchapter J (relating to grantors and others treated as substantial owners).
(4) **Failure t
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 402
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 402. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1240
TITLE 26—INTERNAL REVENUE CODE
§ 402
‘‘(1) for purposes of chapter 1 of the Internal Rev-
enue Code of 1986 (relating to normal taxes and
surtaxes), such regulations shall not apply before
January 1, 1980; and
‘‘(2) for purposes of chapter 21 of such Code (relat-
ing to Federal Insurance Contributions Act) and for
purposes of chapter 24 of such Code (relating to col-
lection of income tax at source on wages), such regu-
lations shall not apply before the day on which such
regulations are issued in final form.
‘‘(e) SALARY REDUCTION REGULATIONS DEFINED.—For
purpose of this section, the term ‘salary reduction reg-
ulations’
means
regulations
dealing
with
the
includibility in gross income (at the time of contribu-
tion) of amounts contributed to a plan which includes
a trust that qualifies under section 401(a) [subsec. (a) of
this section], or a plan described in section 403(a) or
405(a), including plans or arrangements described in
subsection (b)(2), if the contribution is made under an
arrangement under which the contribution will be
made only if the employee elects to receive a reduction
in his compensation or to forego an increase in his
compensation, or under an arrangement under which
the employee is permitted to elect to receive part of his
compensation in one or more alternative forms (if one
of such forms results in the inclusion of amounts in in-
come under the Internal Revenue Code of 1986).’’
[Pub. L. 95–615, § 210(b), Nov. 8, 1978, 92 Stat. 3109, pro-
vided that: ‘‘Section 5 of this Act [amending section
2006 of Pub. L. 93–406, set out above] shall not apply
with respect to any type of plan for any period for
which rules for that type of plan are provided by the
Revenue Act of 1978 [Pub. L. 95–600, see Short Title of
1978
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 402
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 402. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Service for predecessor employer** For purposes of this part—
(1) in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and
(2) in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary, be treated as service for the employer.
**(b) Employees of controlled group of corporations**
(1) **In general** — For purposes of sections 401, 408(k), 408(p), 410, 411, 415, and 416, all employees of all corporations which are members of a controlled group of corporations (within the meaning of section 1563(a), determined without regard to section 1563(a)(4) and (e)(3)(C)) shall be treated as employed by a single employer. With respect to a plan adopted by more than one such corporation, the applicable limitations provided by section 404(a) shall be determined as if all such employers were a single employer, and allocated to each employer in accordance with regulations prescribed by the Secretary.
(2) **Special rules for applying family attribution** — For purposes of applying the attribution rules under section 1563 with respect to paragraph (1), the following rules apply:
(A) Community property laws shall be disregarded for purposes of determining ownership.
(B) Except as provided by the Secretary, stock of an individual not attributed under section 1563(e)(5) to such individual’s spouse shall not be attributed to such spouse by reason of the combined application of paragraphs (1) and (6)(A) of section 1563(e).
(C) Except as provided by the Secretary, in the case of stock in different corporations that is attribut
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 414
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 414. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1394
TITLE 26—INTERNAL REVENUE CODE
§ 414
model plan language similar to model plan language
published under section 413(e)(5) of such Code.
‘‘(3) EDUCATIONAL
OUTREACH
TO
EMPLOYERS
EXEMPT
FROM TAX.—The Secretary of the Treasury (or the Sec-
retary’s delegate), in consultation with the Secretary
of Labor, shall provide education and outreach to in-
crease awareness to employers described in section
501(c)(3) of the Internal Revenue Code of 1986, and which
are exempt from tax under section 501(a) of such Code,
that multiple employer plans are subject to the Em-
ployee Retirement Income Security Act of 1974 and
that such employer is a plan sponsor with respect to its
employees participating in the multiple employer plan
and, as such, has certain fiduciary duties with respect
to the plan and to its employees.’’
§ 414. Definitions and special rules
(a) Service for predecessor employer
For purposes of this part—
(1) in any case in which the employer main-
tains a plan of a predecessor employer, service
for such predecessor shall be treated as service
for the employer, and
(2) in any case in which the employer main-
tains a plan which is not the plan maintained
by a predecessor employer, service for such
predecessor shall, to the extent provided in
regulations prescribed by the Secretary, be
treated as service for the employer.
(b) Employees of controlled group of corpora-
tions
(1) In general
For purposes of sections 401, 408(k), 408(p),
410, 411, 415, and 416, all employees of all cor-
porations which are members of a controlled
group of corporations (within the meaning of
section 1563(a), determined without regard to
section 1563(a)(4) and (e)(3)(C)) shall be treated
as employed by a single employer. With re-
spect to a plan adopted by more
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 414
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 414. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule**
(1) **Trusts** — A trust which is a part of a pension, profitsharing, or stock bonus plan shall not constitute a qualified trust under section 401(a) if—
(A) in the case of a defined benefit plan, the plan provides for the payment of benefits with respect to a participant which exceed the limitation of subsection (b), or
(B) in the case of a defined contribution plan, contributions and other additions under the plan with respect to any participant for any taxable year exceed the limitation of subsection (c).
(2) **Section applies to certain annuities and accounts** — In the case of—
(A) an employee annuity plan described in section 403(a),
(B) an annuity contract described in section 403(b), or
(C) a simplified employee pension described in section 408(k),
such a contract, plan, or pension shall not be considered to be described in section 403(a), 403(b), or 408(k), as the case may be, unless it satisfies the requirements of subparagraph (A) or subparagraph (B) of paragraph (1), whichever is appropriate, and has not been disqualified under subsection (g). In the case of an annuity contract described in section 403(b), the preceding sentence shall apply only to the portion of the annuity contract which exceeds the limitation of subsection (b) or the limitation of subsection (c), whichever is appropriate.
**(b) Limitation for defined benefit plans**
(1) **In general** — Benefits with respect to a participant exceed the limitation of this subsection if, when expressed as an annual benefit (within the meaning of paragraph (2)), such annual benefit is greater than the lesser of—
(A) $160,000, or
(B) 100 percent of the participant’s average compensation for his high 3 years.
(2) **Annual benefit**
(A) *In general* — For purp
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 415
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 415. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1426
TITLE 26—INTERNAL REVENUE CODE
§ 415
graph if such arrangement allows employees
to make permissible withdrawals (as defined
in section 414(w)(2)).
(3) Minimum contribution percentage
(A) In general
An eligible automatic contribution ar-
rangement meets the requirements of this
paragraph if—
(i) the uniform percentage of compensa-
tion contributed by the participant under
such arrangement during the first year of
participation is not less than 3 percent and
not more than 10 percent (unless the par-
ticipant specifically elects not to have
such contributions made or to have such
contributions made at a different percent-
age), and
(ii) effective for the first day of each
plan year starting after each completed
year of participation under such arrange-
ment such uniform percentage is increased
by 1 percentage point (to at least 10 per-
cent, but not more than 15 percent) unless
the participant specifically elects not to
have such contributions made or to have
such contributions made at a different per-
centage.
(B) Initial reduced ceiling for certain plans
In the case of any eligible automatic con-
tribution arrangement (other than an ar-
rangement that meets the requirements of
paragraph (12) or (13) of section 401(k)), for
plan years ending before January 1, 2025,
subparagraph (A)(ii) shall be applied by sub-
stituting ‘‘10 percent’’ for ‘‘15 percent’’.
(4) Investment requirements
An eligible automatic contribution arrange-
ment meets the requirements of this para-
graph if amounts contributed pursuant to such
arrangement, and for which no investment is
elected by the participant, are invested in ac-
cordance with the requirements of section
2550.404c-5 of title 29, Code of Federal Regula-
tions (or any successor regulations).
(c) E
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 415
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 415. This identifies an authority to review, not proof of applicability.