Tax treatment of Federal Thrift Savings Fund

Official source

(1) In general For purposes of this title— (A) the Thrift Savings Fund shall be treated as a trust described in section 401(a) which is exempt from taxation under section 501(a); (B) any contribution to, or distribution from, the Thrift Savings Fund shall be treated in the same manner as contributions to or distributions from such a trust; and (C) subject to section 401(k)(4)(B) and any dollar limitation on the application of section 402(e)(3), contributions to the Thrift Savings Fund shall not be treated as distributed or made available to an employee or Member nor as a contribution made to the Fund by an employee or Member merely because the employee or Member has, under the provisions of subchapter III of chapter 84 of title 5, United States Code, and section 8351 of such title 5, an election whether the contribution will be made to the Thrift Savings Fund or received by the employee or Member in cash.

(2) Nondiscrimination requirements Notwithstanding any other provision of law, the Thrift Savings Fund is not subject to the nondiscrimination requirements applicable to arrangements described in section 401(k) or to matching contributions (as described in section 401(m)), so long as it meets the requirements of this section.

(3) Coordination with Social Security Act Paragraph (1) shall not be construed to provide that any amount of the employee’s or Member’s basic pay which is contributed to the Thrift Savings Fund shall not be included in the term “wages” for the purposes of section 209 of the Social Security Act or section 3121(a) of this title .

(4) Definitions For purposes of this subsection, the terms “Member”, “employee”, and “Thrift Savings Fund” shall have the same respective meanings as when used in subchapter III of chapter 84 of title 5, United States Code.

(5) Coordination with other provisions of law No provision of law not contained in this title shall apply for purposes of determining the treatment under this title of the Thrift Savings Fund or any contribution to, or distribution from, such Fund.

(1)In general#

For purposes of this title—

(A) the Thrift Savings Fund shall be treated as a trust described in section 401(a) which is exempt from taxation under section 501(a);

(B) any contribution to, or distribution from, the Thrift Savings Fund shall be treated in the same manner as contributions to or distributions from such a trust; and

(C) subject to section 401(k)(4)(B) and any dollar limitation on the application of section 402(e)(3), contributions to the Thrift Savings Fund shall not be treated as distributed or made available to an employee or Member nor as a contribution made to the Fund by an employee or Member merely because the employee or Member has, under the provisions of subchapter III of chapter 84 of title 5, United States Code, and section 8351 of such title 5, an election whether the contribution will be made to the Thrift Savings Fund or received by the employee or Member in cash.

(2)Nondiscrimination requirements#

Notwithstanding any other provision of law, the Thrift Savings Fund is not subject to the nondiscrimination requirements applicable to arrangements described in section 401(k) or to matching contributions (as described in section 401(m)), so long as it meets the requirements of this section.

(3)Coordination with Social Security Act#

Paragraph (1) shall not be construed to provide that any amount of the employee’s or Member’s basic pay which is contributed to the Thrift Savings Fund shall not be included in the term “wages” for the purposes of section 209 of the Social Security Act or section 3121(a) of this title .

(4)Definitions#

For purposes of this subsection, the terms “Member”, “employee”, and “Thrift Savings Fund” shall have the same respective meanings as when used in subchapter III of chapter 84 of title 5, United States Code.

(5)Coordination with other provisions of law#

No provision of law not contained in this title shall apply for purposes of determining the treatment under this title of the Thrift Savings Fund or any contribution to, or distribution from, such Fund.

- name: motor_vehicle_business_use_minimum_fraction kind: parameter dtype: Rate source: 26 USC 7701(h) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/7701 excerpt: >- more than 50 percent of the use of the property subject to such agreement is to be in a trade or business of the lessee versions: - effective_from: '2024-01-01' formula: '0.50'

- name: qualified_motor_vehicle_operating_agreement kind: derived entity: MotorVehicleOperatingAgreement dtype: Judgment period: Year source: 26 USC 7701(h) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 - path: versions[0].formula kind: import import: target: us:statutes/26/7701#motor_vehicle_business_use_minimum_fraction output: motor_vehicle_business_use_minimum_fraction hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- agreement_is_with_respect_to_motor_vehicle_including_trailer and lessor_personal_liability_plus_eligible_pledged_property_value_equals_or_exceeds_acquisition_financing and lessee_separately_signed_perjury_certification_of_trade_or_business_use_fraction > motor_vehicle_business_use_minimum_fraction and lessee_separately_signed_notice_that_lessee_will_not_be_treated_as_owner_for_federal_income_tax and not lessor_knows_certification_is_false

- name: motor_vehicle_agreement_treated_as_lease kind: derived entity: MotorVehicleOperatingAgreement dtype: Judgment period: Year source: 26 USC 7701(h) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 - path: versions[0].formula kind: import import: target: us:statutes/26/7701#qualified_motor_vehicle_operating_agreement output: qualified_motor_vehicle_operating_agreement hash: sha256:local versions: - effective_from: '2024-01-01' formula: |- qualified_motor_vehicle_operating_agreement and agreement_contains_terminal_rental_adjustment_clause and agreement_would_be_treated_as_lease_but_for_terminal_rental_adjustment_clause

- name: lessee_not_owner_during_motor_vehicle_operating_agreement kind: derived entity: MotorVehicleOperatingAgreement dtype: Judgment period: Year source: 26 USC 7701(h) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 - path: versions[0].formula kind: import import: target: us:statutes/26/7701#qualified_motor_vehicle_operating_agreement output: qualified_motor_vehicle_operating_agreement hash: sha256:local versions: - effective_from: '2024-01-01' formula: |- qualified_motor_vehicle_operating_agreement and agreement_contains_terminal_rental_adjustment_clause

- name: transaction_has_economic_substance kind: derived entity: Transaction dtype: Judgment period: Year source: 26 USC 7701(o) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 excerpt: >- changes in a meaningful way (apart from Federal income tax effects) the taxpayer's economic position - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 excerpt: the taxpayer has a substantial purpose (apart from Federal income tax effects) versions: - effective_from: '2024-01-01' formula: >- economic_substance_doctrine_is_relevant_to_transaction and transaction_changes_taxpayer_economic_position_meaningfully_apart_from_federal_income_tax_effects and taxpayer_has_substantial_non_federal_income_tax_purpose_for_transaction

- name: profit_potential_taken_into_account_for_economic_substance kind: derived entity: Transaction dtype: Judgment period: Year source: 26 USC 7701(o) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 excerpt: >- only if the present value of the reasonably expected pre-tax profit from the transaction is substantial in relation to the present value of the expected net tax benefits versions: - effective_from: '2024-01-01' formula: >- transaction_relies_on_profit_potential_for_economic_substance and present_value_of_reasonably_expected_pretax_profit_is_substantial_in_relation_to_expected_net_tax_benefits

(1)In general#

For purposes of this title—

(A) the Thrift Savings Fund shall be treated as a trust described in section 401(a) which is exempt from taxation under section 501(a);

(B) any contribution to, or distribution from, the Thrift Savings Fund shall be treated in the same manner as contributions to or distributions from such a trust; and