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29 U.S.C. § 1344 — Allocation of assets
Federal law — U.S. Code and appendices · legal_authorities
**(a) Order of priority of participants and beneficiaries** In the case of the termination of a single-employer plan, the plan administrator shall allocate the assets of the plan (available to provide benefits) among the participants and beneficiaries of the plan in the following order:
(1) First, to that portion of each individual’s accrued benefit which is derived from the participant’s contributions to the plan which were not mandatory contributions.
(2) Second, to that portion of each individual’s accrued benefit which is derived from the participant’s mandatory contributions.
(3) Third, in the case of benefits payable as an annuity—
(A) in the case of the benefit of a participant or beneficiary which was in pay status as of the beginning of the 3-year period ending on the termination date of the plan, to each such benefit, based on the provisions of the plan (as in effect during the 5-year period ending on such date) under which such benefit would be the least,
(B) in the case of a participant’s or beneficiary’s benefit (other than a benefit described in subparagraph (A)) which would have been in pay status as of the beginning of such 3-year period if the participant had retired prior to the beginning of the 3-year period and if his benefits had commenced (in the normal form of annuity under the plan) as of the beginning of such period, to each such benefit based on the provisions of the plan (as in effect during the 5-year period ending on such date) under which such benefit would be the least.
For purposes of subparagraph (A), the lowest benefit in pay status during a 3-year period shall be considered the benefit in pay status for such period.
(4) Fourth—
(A) to all other benefits (if any) of individuals under the plan guaranteed under this subchap
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Source location: Title 29, Chapter 18, § 1344; chapter-018-employee-retirement-income-security-program.md
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**(a) Order of priority of participants and beneficiaries** In the case of the termination of a single-employer plan, the plan administrator shall allocate the assets of the plan (available to provide benefits) among the participants and beneficiaries of the plan in the following order:
(1) First, to that portion of each individual’s accrued benefit which is derived from the participant’s contributions to the plan which were not mandatory contributions.
(2) Second, to that portion of each individual’s accrued benefit which is derived from the participant’s mandatory contributions.
(3) Third, in the case of benefits payable as an annuity—
(A) in the case of the benefit of a participant or beneficiary which was in pay status as of the beginning of the 3-year period ending on the termination date of the plan, to each such benefit, based on the provisions of the plan (as in effect during the 5-year period ending on such date) under which such benefit would be the least,
(B) in the case of a participant’s or beneficiary’s benefit (other than a benefit described in subparagraph (A)) which would have been in pay status as of the beginning of such 3-year period if the participant had retired prior to the beginning of the 3-year period and if his benefits had commenced (in the normal form of annuity under the plan) as of the beginning of such period, to each such benefit based on the provisions of the plan (as in effect during the 5-year period ending on such date) under which such benefit would be the least.
For purposes of subparagraph (A), the lowest benefit in pay status during a 3-year period shall be considered the benefit in pay status for such period.
(4) Fourth—
(A) to all other benefits (if any) of individuals under the plan guaranteed under this subchapter (determined without regard to [section 1322b(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1322b/a&num=0&edition=prelim)), and
(B) to the additional benefits (if any) which would be determined under subparagraph (A) if [section 1322(b)(5)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1322/b/5/B&num=0&edition=prelim) did not apply.
For purposes of this paragraph, [section 1321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1321&num=0&edition=prelim) shall be applied without regard to subsection (c) thereof.
(5) Fifth, to all other nonforfeitable benefits under the plan.
(6) Sixth, to all other benefits under the plan.
**(b) Adjustment of allocations; reallocations; mandatory contributions; establishment of subclasses and categories** For purposes of subsection (a)—
(1) The amount allocated under any paragraph of subsection (a) with respect to any benefit shall be properly adjusted for any allocation of assets with respect to that benefit under a prior paragraph of subsection (a).
(2) If the assets available for allocation under any paragraph of subsection (a) (other than paragraphs (4), (5), and (6)) are insufficient to satisfy in full the benefits of all individuals which are described in that paragraph, the assets shall be allocated pro rata among such individuals on the basis of the present value (as of the termination date) of their respective benefits described in that paragraph.
(3) If assets available for allocation under paragraph (4) of subsection (a) are insufficient to satisfy in full the benefits of all individuals who are described in that paragraph, the assets shall be allocated first to benefits described in subparagraph (A) of that paragraph. Any remaining assets shall then be allocated to benefits described in subparagraph (B) of that paragraph. If assets allocated to such subparagraph (B) are insufficient to satisfy in full the benefits described in that subparagraph, the assets shall be allocated pro rata among individuals on the basis of the present value (as of the termination date) of their respective benefits described in that subparagraph.
(4) This paragraph applies if the assets available for allocation under paragraph (5) of subsection (a) are not sufficient to satisfy in full the benefits of individuals described in that paragraph.
(A) If this paragraph applies, except as provided in subparagraph (B), the assets shall be allocated to the benefits of individuals described in such paragraph (5) on the basis of the benefits of individuals which would have been described in such paragraph (5) under the plan as in effect at the beginning of the 5-year period ending on the date of plan termination.
(B) If the assets available for allocation under subparagraph (A) are sufficient to satisfy in full the benefits described in such subparagraph (without regard to this subparagraph), then for purposes of subparagraph (A), benefits of individuals described in such subparagraph shall be determined on the basis of the plan as amended by the most recent plan amendment effective during such 5-year period under which the assets available for allocation are sufficient to satisfy in full the benefits of individuals described in subparagraph (A) and any assets remaining to be allocated under such subparagraph shall be allocated under subparagraph (A) on the basis of the plan as amended by the next succeeding plan amendment effective during such period.
(5) If the Secretary of the Treasury determines that the allocation made pursuant to this section (without regard to this paragraph) results in discrimination prohibited by [section 401(a)(4) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section401/a/4&num=0&edition=prelim) then, if required to prevent the disqualification of the plan (or any trust under the plan) under section 401(a) or 403(a) of title 26, the assets allocated under subsections (a)(4)(B), (a)(5), and (a)(6) shall be reallocated to the extent necessary to avoid such discrimination.
(6) The term “mandatory contributions” means amounts contributed to the plan by a participant 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. For this purpose, the total amount of mandatory contributions of a participant is the amount of such contributions reduced (but not below zero) by the sum of the amounts paid or distributed to him under the plan before its termination.
(7) A plan may establish subclasses and categories within the classes described in paragraphs (1) through (6) of subsection (a) in accordance with regulations prescribed by the corporation.
**(c) Increase or decrease in value of assets** Any increase or decrease in the value of the assets of a single-employer plan occurring during the period beginning on the later of (1) the date a trustee is appointed under [section 1342(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1342/b&num=0&edition=prelim) or (2) the date on which the plan is terminated is to be allocated between the plan and the corporation in the manner determined by the court (in the case of a court-appointed trustee) or as agreed upon by the corporation and the plan administrator in any other case. Any increase or decrease in the value of the assets of a single-employer plan occurring after the date on which the plan is terminated shall be credited to, or suffered by, the corporation.
**(d) Distribution of residual assets; restrictions on reversions pursuant to recently amended plans; assets attributable to employee contributions; calculation of remaining assets**
(1) Subject to paragraph (3), any residual assets of a single-employer plan may be distributed to the employer if—
(A) all liabilities of the plan to participants and their beneficiaries have been satisfied,
(B) the distribution does not contravene any provision of law, and
(C) the plan provides for such a distribution in these circumstances.
(2)
(A) In determining the extent to which a plan provides for the distribution of plan assets to the employer for purposes of paragraph (1)(C), any such provision, and any amendment increasing the amount which may be distributed to the employer, shall not be treated as effective before the end of the fifth calendar year following the date of the adoption of such provision or amendment.
(B) A distribution to the employer from a plan shall not be treated as failing to satisfy the requirements of this paragraph if the plan has been in effect for fewer than 5 years and the plan has provided for such a distribution since the effective date of the plan.
(C) Except as otherwise provided in regulations of the Secretary of the Treasury, in any case in which a transaction described in [section 1058 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1058&num=0&edition=prelim) occurs, subparagraph (A) shall continue to apply separately with respect to the amount of any assets transferred in such transaction.
(D) For purposes of this subsection, the term “employer” includes any member of the controlled group of which the employer is a member. For purposes of the preceding sentence, the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m) or (o) of [section 414 of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section414&num=0&edition=prelim).
(3)
(A) Before any distribution from a plan pursuant to paragraph (1), if any assets of the plan attributable to employee contributions remain after satisfaction of all liabilities described in subsection (a), such remaining assets shall be equitably distributed to the participants who made such contributions or their beneficiaries (including alternate payees, within the meaning of [section 1056(d)(3)(K) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1056/d/3/K&num=0&edition=prelim)).
(B) For purposes of subparagraph (A), the portion of the remaining assets which are attributable to employee contributions shall be an amount equal to the product derived by multiplying—
(i) the market value of the total remaining assets, by
(ii) a fraction—
(I) the numerator of which is the present value of all portions of the accrued benefits with respect to participants which are derived from participants’ mandatory contributions (referred to in subsection (a)(2)), and
(II) the denominator of which is the present value of all benefits with respect to which assets are allocated under paragraphs (2) through (6) of subsection (a).
(C) For purposes of this paragraph, each person who is, as of the termination date—
(i) a participant under the plan, or
(ii) an individual who has received, during the 3-year period ending with the termination date, a distribution from the plan of such individual’s entire nonforfeitable benefit in the form of a single sum distribution in accordance with [section 1053(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1053/e&num=0&edition=prelim) or in the form of irrevocable commitments purchased by the plan from an insurer to provide such nonforfeitable benefit,
shall be treated as a participant with respect to the termination, if all or part of the nonforfeitable benefit with respect to such person is or was attributable to participants’ mandatory contributions (referred to in subsection (a)(2)).
(4) Nothing in this subsection shall be construed to limit the requirements of [section 4980(d) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section4980/d&num=0&edition=prelim) (as in effect immediately after the enactment of the Omnibus Budget Reconciliation Act of 1990) or [section 1104(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1104/d&num=0&edition=prelim) with respect to any distribution of residual assets of a single-employer plan to the employer.
**(e) Bankruptcy filing substituted for termination date** If a contributing sponsor of a plan has filed or has had filed against such person a petition seeking liquidation or reorganization in a case under title 11 or under any similar Federal law or law of a State or political subdivision, and the case has not been dismissed as of the termination date of the plan, then subsection (a)(3) shall be applied by treating the date such petition was filed as the termination date of the plan.
**(f) Valuation of section 1362(c) liability for determining amounts payable by corporation to participants and beneficiaries**
(1) **In general** — In the case of a terminated plan, the value of the recovery of liability under [section 1362(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1362/c&num=0&edition=prelim) allocable as a plan asset under this section for purposes of determining the amount of benefits payable by the corporation shall be determined by multiplying—
(A) the amount of liability under [section 1362(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1362/c&num=0&edition=prelim) as of the termination date of the plan, by
(B) the applicable section 1362(c) recovery ratio.
(2) **Section 1362(c) recovery ratio** — For purposes of this subsection—
(A) *In general* — Except as provided in subparagraph (C), the term “section 1362(c) recovery ratio” means the ratio which—
(i) the sum of the values of all recoveries under [section 1362(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1362/c&num=0&edition=prelim) determined by the corporation in connection with plan terminations described under subparagraph (B), bears to
(ii) the sum of all the amounts of liability under [section 1362(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1362/c&num=0&edition=prelim) with respect to such plans as of the termination date in connection with any such prior termination.
(B) *Prior terminations* — A plan termination described in this subparagraph is a termination with respect to which—
(i) the value of recoveries under [section 1362(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1362/c&num=0&edition=prelim) have been determined by the corporation, and
(ii) notices of intent to terminate were provided (or in the case of a termination by the corporation, a notice of determination under [section 1342 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1342&num=0&edition=prelim) was issued) during the 5-Federal fiscal year period ending with the third fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate (or the notice of determination under [section 1342 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1342&num=0&edition=prelim)) with respect to the plan termination for which the recovery ratio is being determined.
(C) *Exception* — In the case of a terminated plan with respect to which the outstanding amount of benefit liabilities exceeds $20,000,000, the term “section 1362(c) recovery ratio” means, with respect to the termination of such plan, the ratio of—
(i) the value of the recoveries on behalf of the plan under [section 1362(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1362/c&num=0&edition=prelim), to
(ii) the amount of the liability owed under [section 1362(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1362/c&num=0&edition=prelim) as of the date of plan termination to the trustee appointed under section 1342(b) or (c) of this title.
(3) **Subsection not to apply** — This subsection shall not apply with respect to the determination of—
(A) whether the amount of outstanding benefit liabilities exceeds $20,000,000, or
(B) the amount of any liability under [section 1362 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1362&num=0&edition=prelim) to the corporation or the trustee appointed under section 1342(b) or (c) of this title.
(4) **Determinations** — Determinations under this subsection shall be made by the corporation. Such determinations shall be binding unless shown by clear and convincing evidence to be unreasonable.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rules governing single-employer plan terminations**
(1) **Exclusive means of plan termination** — Except in the case of a termination for which proceedings are otherwise instituted by the corporation as provided in [section 1342 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1342&num=0&edition=prelim), a single-employer plan may be terminated only in a standard termination under subsection (b) or a distress termination under subsection (c).
(2) **60-day notice of intent to terminate** — Not less than 60 days before the proposed termination date of a standard termination under subsection (b) or a distress termination under subsection (c), the plan administrator shall provide to each affected party (other than the corporation in the case of a standard termination) a written notice of intent to terminate stating that such termination is intended and the proposed termination date. The written notice shall include any related additional information required in regulations of the corporation.
(3) **Adherence to collective bargaining agreements** — The corporation shall not proceed with a termination of a plan under this section if the termination would violate the terms and conditions of an existing collective bargaining agreement. Nothing in the preceding sentence shall be construed as limiting the authority of the corporation to institute proceedings to involuntarily terminate a plan under [section 1342 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1342&num=0&edition=prelim).
**(b) Standard termination of single-employer plans**
(1) **General requirements** — A single-employer plan may terminate under a standard termination only if—
(A) the plan administrator provi
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** In any case in which a single-employer plan is terminated in a distress termination under [section 1341(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1341/c&num=0&edition=prelim) or a termination otherwise instituted by the corporation under [section 1342 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1342&num=0&edition=prelim), any person who is, on the termination date, a contributing sponsor of the plan or a member of such a contributing sponsor’s controlled group shall incur liability under this section. The liability under this section of all such persons shall be joint and several. The liability under this section consists of—
(1) liability to the corporation, to the extent provided in subsection (b), and
(2) liability to the trustee appointed under subsection (b) or (c) of [section 1342 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1342&num=0&edition=prelim), to the extent provided in subsection (c).
**(b) Liability to corporation**
(1) **Amount of liability**
(A) *In general* — Except as provided in subparagraph (B), the liability to the corporation of a person described in subsection (a) shall be the total amount of the unfunded benefit liabilities (as of the termination date) to all participants and beneficiaries under the plan, together with interest (at a reasonable rate) calculated from the termination date in accordance with regulations prescribed by the corporation.
(B) *Special rule in case of subsequent insufficiency* — For purposes of subparagraph (A), in any case described in [section 1341(c)(3)(C)(ii) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-se
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Imposition of tax** There is hereby imposed a tax of 20 percent of the amount of any employer reversion from a qualified plan.
**(b) Liability for tax** The tax imposed by subsection (a) shall be paid by the employer maintaining the plan.
**(c) Definitions and special rules** For purposes of this section—
(1) **Qualified plan** — The term “qualified plan” means any plan meeting the requirements of section 401(a) or 403(a), other than—
(A) a plan maintained by an employer if such employer has, at all times, been exempt from tax under subtitle A, or
(B) a governmental plan (within the meaning of section 414(d)).
Such term shall include any plan which, at any time, has been determined by the Secretary to be a qualified plan.
(2) **Employer reversion**
(A) *In general* — The term “employer reversion” means the amount of cash and the fair market value of other property received (directly or indirectly) by an employer from the qualified plan.
(B) *Exceptions* — The term “employer reversion” shall not include—
(i) except as provided in regulations, any amount distributed to or on behalf of any employee (or his beneficiaries) if such amount could have been so distributed before termination of such plan without violating any provision of section 401,
(ii) any distribution to the employer which is allowable under section 401(a)(2)—
(I) in the case of a multiemployer plan, by reason of mistakes of law or fact or the return of any withdrawal liability payment,
(II) in the case of a plan other than a multiemployer plan, by reason of mistake of fact, or
(III) in the case of any plan, by reason of the failure of the plan to initially qualify or the failure of contributions to be deductible, or
(iii) any transfer described in
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority to institute proceedings to terminate a plan** The corporation may institute proceedings under this section to terminate a plan whenever it determines that—
(1) the plan has not met the minimum funding standard required under [section 412 of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section412&num=0&edition=prelim), or has been notified by the Secretary of the Treasury that a notice of deficiency under [section 6212 of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section6212&num=0&edition=prelim) has been mailed with respect to the tax imposed under [section 4971(a) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section4971/a&num=0&edition=prelim),
(2) the plan will be unable to pay benefits when due,
(3) the reportable event described in [section 1343(c)(7) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1343/c/7&num=0&edition=prelim) has occurred, or
(4) the possible long-run loss of the corporation with respect to the plan may reasonably be expected to increase unreasonably if the plan is not terminated.
The corporation shall as soon as practicable institute proceedings under this section to terminate a single-employer plan whenever the corporation determines that the plan does not have assets available to pay benefits which are currently due under the terms of the plan. The corporation may prescribe a simplified procedure to follow in terminating small plans as long as that procedure includes substantial safeguards for the rights of the participants and beneficiaries under the plans, and for the employers who maintain such plans (including the requirement for a court decree under subsection (c)). Not
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rules for annuities**
(1) **Income inclusion** — Except as otherwise provided in this chapter, gross income includes any amount received as an annuity (whether for a period certain or during one or more lives) under an annuity, endowment, or life insurance contract.
(2) **Partial annuitization** — If any amount is received as an annuity for a period of 10 years or more or during one or more lives under any portion of an annuity, endowment, or life insurance contract—
(A) such portion shall be treated as a separate contract for purposes of this section,
(B) for purposes of applying subsections (b), (c), and (e), the investment in the contract shall be allocated pro rata between each portion of the contract from which amounts are received as an annuity and the portion of the contract from which amounts are not received as an annuity, and
(C) a separate annuity starting date under subsection (c)(4) shall be determined with respect to each portion of the contract from which amounts are received as an annuity.
**(b) Exclusion ratio**
(1) **In general** — Gross income does not include that part of any amount received as an annuity under an annuity, endowment, or life insurance contract which bears the same ratio to such amount as the investment in the contract (as of the annuity starting date) bears to the expected return under the contract (as of such date).
(2) **Exclusion limited to investment** — The portion of any amount received as an annuity which is excluded from gross income under paragraph (1) shall not exceed the unrecovered investment in the contract immediately before the receipt of such amount.
(3) **Deduction where annuity payments cease before entire investment recovered**
(A) *In general* — If—
(i) after the annuity starti
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Nonforfeitable benefits** Subject to the limitations contained in subsection (b), the corporation shall guarantee, in accordance with this section, the payment of all nonforfeitable benefits (other than benefits becoming nonforfeitable solely on account of the termination of a plan) under a single-employer plan which terminates at a time when this subchapter applies to it.
**(b) Exceptions**
(1) Except to the extent provided in paragraph (7)—
(A) no benefits provided by a plan which has been in effect for less than 60 months at the time the plan terminates shall be guaranteed under this section, and
(B) any increase in the amount of benefits under a plan resulting from a plan amendment which was made, or became effective, whichever is later, within 60 months before the date on which the plan terminates shall be disregarded.
(2) For purposes of this subsection, the time a successor plan (within the meaning of [section 1321(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1321/a&num=0&edition=prelim)) has been in effect includes the time a previously established plan (within the meaning of [section 1321(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1321/a&num=0&edition=prelim)) was in effect. For purposes of determining what benefits are guaranteed under this section in the case of a plan to which [section 1321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1321&num=0&edition=prelim) does not apply on September 3, 1974, the 60-month period referred to in paragraph (1) shall be computed beginning on the first date on which such section does apply to the plan.
(3) The amount of monthly benefits described in subsection (a) p
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Federal law — U.S. Code and appendices · legal_authorities
A pension plan may not merge or consolidate with, or transfer its assets or liabilities to, any other plan after September 2, 1974, unless each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated). The preceding sentence shall not apply to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which subchapter III of this chapter applies.
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1058
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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
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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
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Plans covered** Except as provided in subsection (b), this subchapter applies to any plan (including a successor plan) which, for a plan year—
(1) is an employee pension benefit plan (as defined in paragraph (2) of [section 1002 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1002&num=0&edition=prelim)) established or maintained—
(A) by an employer engaged in commerce or in any industry or activity affecting commerce, or
(B) by any employee organization, or organization representing employees, engaged in commerce or in any industry or activity affecting commerce, or
(C) by both,
which has, in practice, met the requirements of part I of subchapter D of chapter 1 of title 26 (as in effect for the preceding 5 plan years of the plan) applicable to the plans described in paragraph (2) for the preceding 5 plan years; or
(2) is, or has been determined by the Secretary of the Treasury to be, a plan described in [section 401(a) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section401/a&num=0&edition=prelim), or which meets, or has been determined by the Secretary of the Treasury to meet, the requirements of [section 404(a)(2) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section404/a/2&num=0&edition=prelim).
For purposes of this subchapter, a successor plan is considered to be a continuation of a predecessor plan. For this purpose, unless otherwise specifically indicated in this subchapter, a successor plan is a plan which covers a group of employees which includes substantially the same employees as a previously established plan, and provides substantially the same benefits as that plan provided.
**(b) Plans not covered** This section does not a
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1321
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.