Details of Public Law 117-328, section 113 , Small Immediate Financial Incentives for Contributing to a Plan

Under RTC sections 17501 and 24601, California automatically conforms to the federal changes made to Part I of Subchapter D of Chapter 1 of Subtitle A of the Internal Revenue Code, which includes IRC sections 401 and 403. As a result, the federal provision to allow de minimis financial incentives automatically applies under California law.

California does not conform to the federal 15 percent excise tax imposed under IRC section 4975 for prohibited transactions.

ERISA Preemption

Additionally, federal ERISA sections specifically preempt state laws relating to certain employee benefit plans in California.