Internal Revenue Code Section 401

Location in internal revenue code title 26 internal revenue code subtitle a income taxes chapter 1 normal taxes and surtaxes subchapter d deferred compensation etc.

Internal revenue code section 401. A 401 k is a feature of a qualified profit sharing plan that allows employees to contribute a portion of their wages to individual accounts. Notwithstanding anything to the contrary in this a 2 a governmental plan within the meaning of section 414 d or an eligible governmental plan described in 1 457 2 f is treated as having complied with section 401 a 9 for all years to which section 401 a 9 applies to the plan if the plan complies with a reasonable and good faith. But does not include any contract or certificate issued after december 31 1962 which is transferable if any person other than the.

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. Subpart a general rule statute sec. Section 410 a 1 of the internal revenue code code sets forth the minimum age and service requirements for a qualified retirement plan.

But does not include any contract or certificate issued after december 31 1962 which is transferable if any person other than. Part i pension profit sharing stock bonus plans etc. 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.

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. A employer x maintains plan y a calendar year defined benefit plan providing an annual benefit for each year of service equal to 2 percent of compensation averaged over an employee s high 3 consecutive calendar years compensation. Learn about internal revenue code 401 k retirement plans and the tax rules that apply to them.

In general a plan cannot require as a condition of participation that an employee complete a period of service with the employer extending beyond the later of. As of the close of the last plan year beginning before january 1 1989 i e the 1988 plan year employee a with. 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.

A state or political subdivision or its agency or instrumentality. Section 401 a 17 applies to plan y in 1989.