26 USC 4979 - Tax on certain excess contributions

U.S Code last checked for updates: Nov 22, 2024

§ 4979.

Tax on certain excess contributions

(a)

General rule

In the case of any plan, there is hereby imposed a tax for the taxable year equal to 10 percent of the sum of—

(1)

any excess contributions under such plan for the plan year ending in such taxable year, and

(2)

any excess aggregate contributions under the plan for the plan year ending in such taxable year.

(b)

Liability for tax

(c)

Excess contributions

(d)

Excess aggregate contribution

(e)

Plan

For purposes of this section, the term “plan” means—

(1)

a plan described in section 401(a) which includes a trust exempt from tax under section 501(a),

(2)

any annuity plan described in section 403(a),

(3)

any annuity contract described in section 403(b),

(4)

a simplified employee pension of an employer which satisfies the requirements of section 408(k), and

(5)

a plan described in section 501(c)(18).

Such term includes any plan which, at any time, has been determined by the Secretary to be such a plan.

(f)

No tax where excess distributed within specified period after close of year

(1)

In general

(2)

Year of inclusion

(Added Pub. L. 99–514, title XI, § 1117(b)(1), Oct. 22, 1986, 100 Stat. 2461; amended Pub. L. 100–647, title I, § 1011(l)(8)–(11), Nov. 10, 1988, 102 Stat. 3470, 3471; Pub. L. 109–280, title IX, § 902(e)(1)–(3)(A), Aug. 17, 2006, 120 Stat. 1038.)

cite as: 26 USC 4979