Code Section 401 A

Under section 401 a 9 all stock bonus pension and profit sharing plans qualified under section 401 a and annuity contracts described in section 403 a are subject to required minimum distribution rules.

Code section 401 a. For purposes of this section and sections 402 403 and 404 the term annuity includes a face amount certificate as defined in section 2 a 15 of the investment company act of 1940 15 u s c sec. Code section 401 a is the key internal revenue code section that provides in conjunction with code section 501 the trusts of qualified employee benefit plans with their tax exempt status. Under internal revenue code section 414 d a governmental plan is an irc section 401 a retirement plan established and maintained for the employees of.

These rules are similar to rules set for 401 k. To satisfy section 401 a 31 added by uca a plan must provide that if the distributee of any eligible rollover distribution elects to have the distribution paid directly to an eligible retirement plan and specifies the eligible retirement plan to which the distribution is to be paid then the distribution will be paid to that eligible retirement plan in a direct rollover described in q a 3 of this section. A state or political subdivision or its agency or instrumentality.

But does not include any contract or certificate issued after december 31 1962 which is transferable if any person other than the trustee of a trust described in section 401 a which is exempt from tax under section 501 a is the owner of such contract or certificate. See this section and 1 401 a 9 2 through 1 401 a 9 9 for the distribution rules applicable to these plans.