For inflation adjustment of certain items in this section, see Internal Revenue Notices listed in a table under section 401 of this title.

The Federal Insurance Contributions Act, referred to in subsec. (e), is act Aug. 16, 1954, ch. 736, §§ 3101, 3102, 3111, 3112, 3121 to 3128, 68A Stat. 415, which is classified generally to chapter 21 (§ 3101 et seq.) of this title. For complete classification of this Act to the Code, see section 3128 of this title and Tables.

The Social Security Act, referred to in subsec. (e), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title II of the Social Security Act is classified generally to subchapter II (§ 401 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

2022—Subsec. (c)(2)(C). Pub. L. 117–328, § 310(a), added subpar. (C).

Subsec. (g)(4)(H). Pub. L. 117–328, § 125(e), inserted “Such term shall not include a plan solely because such plan does not provide nonelective or matching contributions to employees described in section 401(k)(15)(B)(i).” before “If, but” in concluding provisions.

Pub. L. 117–328, § 121(c), substituted “arrangements or plans” for “arrangements” in heading and “and matching contributions with respect to which the requirements of paragraph (11), (12), or (13) of section 401(m) are met, or” for “, and” in cl. (i), added cl. (ii), and struck out former cl. (ii) which read as follows: “matching contributions with respect to which the requirements of section 401(m)(11) or 401(m)(12) are met.”

2006—Subsec. (g)(4)(H)(i). Pub. L. 109–280, § 902(c)(1), inserted “or 401(k)(13)” after “401(k)(12)”.

Subsec. (g)(4)(H)(ii). Pub. L. 109–280, § 902(c)(2), inserted “or 401(m)(12)” after “401(m)(11)”.

2004—Subsec. (i)(1)(A). Pub. L. 108–311 substituted “In the case of plan years” for “in the case of plan years” in concluding provisions.

2002—Subsec. (c)(1)(C)(iii). Pub. L. 107–147, § 411(k)(1), substituted “Exception for plan under which no key employee (or former key employee) benefits for plan year” for “Exception for frozen plan” in heading.

Subsec. (g)(3)(B). Pub. L. 107–147, § 411(k)(2), substituted “severance from employment” for “separation from service”.

2001—Subsec. (c)(1)(C)(i). Pub. L. 107–16, § 613(e)(A), substituted “clause (ii) or (iii)” for “clause (ii)”.

Subsec. (c)(1)(C)(iii). Pub. L. 107–16, § 613(e)(B), added cl. (iii).

Subsec. (c)(2)(A). Pub. L. 107–16, § 613(b), inserted at end “Employer matching contributions (as defined in section 401(m)(4)(A)) shall be taken into account for purposes of this subparagraph (and any reduction under this sentence shall not be taken into account in determining whether section 401(k)(4)(A) applies).”

Subsec. (g)(3). Pub. L. 107–16, § 613(c)(1), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “For purposes of determining—

“(A) the present value of the cumulative accrued benefit for any employee, or

“(B) the amount of the account of any employee,

such present value or amount shall be increased by the aggregate distributions made with respect to such employee under the plan during the 5-year period ending on the determination date. The preceding sentence shall also apply to distributions under a terminated plan which if it had not been terminated would have been required to be included in an aggregation group.”

Subsec. (g)(4)(E). Pub. L. 107–16, § 613(c)(2), in heading substituted “last year before determination date” for “last 5 years” and in text substituted “1-year period” for “5-year period”.

Subsec. (g)(4)(H). Pub. L. 107–16, § 613(d), added subpar. (H).

Subsec. (i)(1)(A). Pub. L. 107–16, § 613(a)(1)(D), in concluding provisions, substituted “in the case of plan years beginning after December 31, 2002, the $130,000 amount in clause (i) shall be adjusted at the same time and in the same manner as under section 415(d), except that the base period shall be the calendar quarter beginning July 1, 2001, and any increase under this sentence which is not a multiple of $5,000 shall be rounded to the next lower multiple of $5,000.” for “For purposes of clause (ii), if 2 employees have the same interest in the employer, the employee having greater annual compensation from the employer shall be treated as having a larger interest.”

Pub. L. 107–16, § 613(a)(1)(A), struck out “or any of the 4 preceding plan years” after “plan year” in introductory provisions.

Subsec. (i)(1)(A)(i). Pub. L. 107–16, §  613(a)(1)(B), added cl. (i) and struck out former cl. (i) which read as follows: “an officer of the employer having an annual compensation greater than 50 percent of the amount in effect under section 415(b)(1)(A) for any such plan year,”.

Subsec. (i)(1)(A)(ii)–(iv). Pub. L. 107–16, § 613(a)(1)(C), redesignated cls. (iii) and (iv) as (ii) and (iii), respectively, and struck out former cl. (ii) which read as follows: “1 of the 10 employees having annual compensation from the employer of more than the limitation in effect under section 415(c)(1)(A) and owning (or considered as owning within the meaning of section 318) the largest interests in the employer,”.

Subsec. (i)(1)(B)(iii). Pub. L. 107–16, § 613(a)(2), struck out “and subparagraph (A)(ii)” after “this subparagraph” in introductory provisions.

1996—Subsec. (g)(4)(G). Pub. L. 104–188, § 1421(b)(7), added subpar. (G).

Subsec. (h). Pub. L. 104–188, § 1452(c)(7), struck out subsec. (h) which related to adjustments in section 415 limits for top-heavy plans.

Subsec. (i)(1)(A). Pub. L. 104–188, § 1431(c)(1)(C), substituted “section 414(q)(5)” for “section 414(q)(8)” in closing provisions.

Subsec. (i)(1)(D). Pub. L. 104–188, § 1431(c)(1)(B), substituted “section 414(q)(4)” for “section 414(q)(7)”.

1988—Subsec. (i)(1)(A). Pub. L. 100–647, § 1011(i)(4)(B), inserted at end “For purposes of determining the number of officers taken into account under clause (i), employees described in section 414(q)(8) shall be excluded.”

Subsec. (i)(1)(A)(i). Pub. L. 100–647, § 1011(d)(8), substituted “50” for “150” and “415(b)(1)(A)” for “415(c)(1)(A)”.

Subsec. (i)(1)(D). Pub. L. 100–647, § 1011(j)(3)(A), added subpar. (D).

1986—Subsec. (a)(3). Pub. L. 99–514, § 1106(d)(3)(A), struck out par. (3) which read as follows: “the limitation on compensation requirement of subsection (d).”

Subsec. (c)(2)(B)(ii), (iii). Pub. L. 99–514, § 1106(d)(3)(B)(ii), redesignated cl. (iii) as (ii) and struck out former cl. (ii) which read as follows: “Determination of percentage.—The determination referred to in clause (i) shall be determined for each key employee by dividing the contributions for such employee by so much of his total compensation for the year as does not exceed $200,000.”

Subsec. (d). Pub. L. 99–514, § 1106(d)(3)(B)(i), repealed subsec. (d) which provided for a $200,000 limitation on the amount of annual compensation of each employee taken into account.

Subsec. (g)(4)(E). Pub. L. 99–514, § 1852(d)(2), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: “If any individual has not received any compensation from any employer maintaining the plan (other than benefits under the plan) at any time during the 5-year period ending on the determination date, any accrued benefit for such individual (and the account of such individual) shall not be taken into account.”

Subsec. (g)(4)(F). Pub. L. 99–514, § 1118(a), added subpar. (F).

Subsec. (i)(1)(A). Pub. L. 99–514, § 1852(d)(1), inserted at end “Such term shall not include any officer or employee of an entity referred to in section 414(d) (relating to governmental plans).”

1984—Subsec. (c)(2)(C). Pub. L. 98–369, § 524(c)(1), struck out subpar. (C) which provided that for purposes of this paragraph, any employer contribution attributable to a salary reduction or similar arrangement shall not be taken into account.

Subsec. (d)(2). Pub. L. 98–369, § 713(f)(5)(A), inserted “at the same time and”.

Subsec. (f). Pub. L. 98–369, § 713(f)(6)(A), substituted “required” for “require”.

Subsec. (g)(3). Pub. L. 98–369, § 713(f)(4), inserted at end “The preceding sentence shall also apply to distributions under a terminated plan which if it had not been terminated would have been required to be included in an aggregation group.”

Subsec. (g)(4)(E). Pub. L. 98–369, § 524(b)(1), added subpar. (E).

Subsec. (i)(1)(A). Pub. L. 98–369, § 713(f)(1)(A), (C), substituted in provisions preceding cl. (i) “an employee” for “any participant in an employer plan” and inserted at end thereof provision for treatment of an employee with the greater annual compensation as having a larger interest in the employer where, for purposes of cl. (ii), 2 employees have the same interest in the employer.

Subsec. (i)(1)(A)(i). Pub. L. 98–369, § 524(a)(1), inserted “having an annual compensation greater than 150 percent of the amount in effect under section 415(c)(1)(A) for any plan year”.

Subsec. (i)(1)(A)(ii). Pub. L. 98–369, § 713(f)(1)(B), required a key employee to have annual compensation from the employer of more than the limitation in effect under section 415(c)(1)(A).

Subsec. (i)(1)(B)(iii). Pub. L. 98–369, § 713(f)(6)(B), substituted subparagraph “(A)(ii)” for “(A)(ii)(II)”.

Subsec. (i)(1)(C). Pub. L. 98–369, § 713(f)(1)(A), substituted in heading “ownership in the employer” for “5-percent or 1-percent owners”.

Amendment by section 121(c) of Pub. L. 117–328 applicable to plan years beginning after Dec. 31, 2023, see section 121(d) of Pub. L. 117–328, set out as a note under section 401 of this title.

Amendment by section 125(e) of Pub. L. 117–328 effective as if included in the enactment of section 112 of div. O of Pub. L. 116–94, see section 125(f)(2) of Pub. L. 117–328, set out as a note under section 401 of this title.

Pub. L. 117–328, div. T, title III, § 310(b), Dec. 29, 2022, 136 Stat. 5347, provided that: “The amendment made by subsection (a) [amending this section] shall apply to plan years beginning after December 31, 2023.”

Amendment by Pub. L. 109–280 applicable to plan years beginning after Dec. 31, 2007, see section 902(g) of Pub. L. 109–280, set out as a note under section 401 of this title.

Amendment by Pub. L. 107–147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 411(x) of Pub. L. 107–147, set out as a note under section 25B of this title.

Pub. L. 107–16, title VI, § 613(f), June 7, 2001, 115 Stat. 102, provided that: “The amendments made by this section [amending this section] shall apply to years beginning after December 31, 2001.”

Amendment by section 1421(b)(7) of Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1996, see section 1421(e) of Pub. L. 104–188, set out as a note under section 72 of this title.

Amendment by section 1431(c)(1)(B), (C) of Pub. L. 104–188 applicable to years beginning after Dec. 31, 1996, except that in determining whether an employee is a highly compensated employee for years beginning in 1997, such amendment to be treated as having been in effect for years beginning in 1996, see section 1431(d)(1) of Pub. L. 104–188, set out as a note under section 414 of this title.

Amendment by section 1452(c)(7) of Pub. L. 104–188 applicable to limitation years beginning after Dec. 31, 1999, see section 1452(d) of Pub. L. 104–188, set out as a note under section 415 of this title.

Pub. L. 100–647, title I, § 1011(j)(3)(B), Nov. 10, 1988, 102 Stat. 3468, provided that: “The amendment made by this paragraph [amending this section] shall apply to years beginning after December 31, 1988.”

Amendment by section 1011(d)(8), (i)(4)(B) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Amendment by section 1106(d)(3)(A), (B) of Pub. L. 99–514 applicable to benefits accruing in years beginning after Dec. 31, 1988, except as otherwise provided, see section 1106(i)(5) of Pub. L. 99–514, set out as a note under section 415 of this title.

Pub. L. 99–514, title XI, § 1118(b), Oct. 22, 1986, 100 Stat. 2463, provided that: “The amendment made by subsection (a) [amending this section] shall apply to plan years beginning after December 31, 1986.”

Amendment by section 1852(d) of Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.

Pub. L. 98–369, div. A, title V, § 524(a)(2), July 18, 1984, 98 Stat. 872, provided that: “The amendment made by this subsection [amending this section] shall apply to plan years beginning after December 31, 1983.”

Pub. L. 98–369, div. A, title V, § 524(b)(2), July 18, 1984, 98 Stat. 872, provided that: “The amendment made by this subsection [amending this section] shall apply to plan years beginning after December 31, 1984.”

Pub. L. 98–369, div. A, title V, § 524(c)(2), July 18, 1984, 98 Stat. 872, provided that: “The amendment made by this subsection [amending this section] shall apply to plan years beginning after December 31, 1984.”

Amendment by section 713 of Pub. L. 98–369 effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97–248, to which such amendment relates, see section 715 of Pub. L. 98–369, set out as a note under section 31 of this title.

Pub. L. 97–248, title II, § 241, Sept. 3, 1982, 96 Stat. 520, provided that:

For provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of Pub. L. 104–188 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 Pub. L. 104–188, set out as a note under section 401 of this title.

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 Pub. L. 99–514 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 Pub. L. 99–514, as amended, set out as a note under section 401 of this title.