Page 337

TITLE 26-INTERNAL REVENUE CODE (A) first on the basis of their respective delinquencies in meeting required employer contributions under the plan, and (B) then on the basis of their respective li- abilities for contributions under the plan. (7) Deduction limitations Each applicable limitation provided by sec- tion 404(a) shall be determined as if all par- ticipants in the plan were employed by a single employer. The amounts contributed to or under the plan by each employer who is a party to the agreement, for the portion of his taxable year which is included within such a plan year, shall be considered not to exceed such a limitation if the anticipated employer contributions for such plan year (determined in a manner consistent with the manner in which actual employer contributions for such plan year are determined) do not exceed such limitation. If such anticipated contributions exceed such a limitation, the portion of each such employer's contributions which is not deductible under section 404 shall be deter- mined in accordance with regulations pre- scribed by the Secretary. (8) Employees of labor unions For purposes of this subsection, employees or employee representatives shall be treated as employees of an employer described in sub- section (a)(1) if such representatives meet the requirements of sections 401(a)(4) and 410 with respect to such employees. (c) Plans maintained by more than one employer In the case of a plan maintained by more than one employer- (1) Participation Section 410(a) shall be applied as if all em- ployees of each of the employers who main- tain the plan were employed by a single em- ployer. (2) Exclusive benefit For purposes of section 401(a), in determin- ing whether the plan of an employer is for the exclusive benefit of his employees and their beneficiaries all plan participants shall be considered to be his employees. (3) Vesting Section 411 shall be applied as if all employ- ers who maintain the plan constituted a single employer, except that the application of any rules with respect to breaks in service shall be made under regulations prescribed by the Secretary of Labor. (4) Funding The minimum funding standard provided by section 412 shall be determined as if all participants in the plan were employed by a single employer. (6) Liability for funding tax For a plan year the liability under section 4971 of each employer who maintains the plan shall be determined in a reasonable manner not inconsistent with regulations pre- scribed by the Secretary- (A) first on the basis of their respective delinquencies in meeting required employer contributions under the plan, and (B) then on the basis of their respective li- abilities for contributions under the plan. (6) Deduction limitations Each applicable limitation provided by sec- tion 404(a) shall be determined as if all par- ticipants in the plan were employed by a single employer. The amounts contributed to or under the plan by each employer who maintains the plan, for the portion of this taxable year which is included within such a plan year, shall be considered not to exceed such a limitation if the anticipated employer contributions for such plan year (determined in a reasonable manner not inconsistent with regulations prescribed by the Secretary) do not exceed such limitation. If such anticipat- ed contributions exceed such a limitation, the portion of each such employer's contributions which is not deductible under section 404 shall be determined in accordance with regu- lations prescribed by the Secretary. Allocations of amounts under paragraphs (4), (5), and (6), among the employers maintaining the plan, shall not be inconsistent with regula- tions prescribed for this purpose by the Secre- tary. (Added rab. L. 93-406, title II, § 1014, Sept. 2, 1974, 85 S;at. 924, and amended Pub. L. 94-455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) AMEDMxENTS 1976-Subsecs. (b), (c). Pub. L 94-455 struck out "or his delegate" following "Secretary". EFMCTIVE DATE Except as otherwise provided in section 1017(c) through (h) of Pub. L. 93-406, section applicable for plan years beginning after Sept. 2, 1974, and, in the case of plans in existence on Jan. 1, 1974, for plan years beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93-406, set out as an Effective Date; Transi- tional Rules note under section 410 of this title. SEcTiON RxniutIx TO IN OTHErs SECTIONS This section is referred to in section 4971 of this title. § 414. Definitions and special rules (a) Service for predecessor employer For purposes of this part-- (1) in any case in which the employer main- tains a plan of a predecessor employer, ser- vice for such predecessor shall be treated as service for the employer, and (2) in any case in which the employer main- tains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary, be treated as service for the employer. (b) Employees of controlled group of corporations For purposes of sections 401. 410, 411, and 415, all employees of all corporations which are members of a controlled group of corporations (within the meaning of section 1563(a), deter- mined without regard to section 1563(a)(4) and (e)(3)(C)) shall be treated as employed by a single employer. With respect to a plan adopted by more than one such corporation, the mini- mum funding standard of section 412, the tax imposed by section 4971, and the applicable limitations provided by section 404(a) shall be determined as if all such employers were a Page 337 § 414