Page 339

TITLE 26-INTERNAL REVENUE CODE group of representatives of the parties who maintained the plan, or (C) in any case to which subparagraph (A) or (B) does not apply, such other person as the Secretary may by regulation, prescribe. (h) Tax treatment of certain contributions (I) In general Effective with respect to taxable years be- ginning after December 31, 1973, for purposes of this title, any amount contributed- (A) to an employees' trust described in section 401(a), or (B) under a plan described in section 403(a) or 405(a), shall not be treated as having been made by the employer if it is designated as an employee contribution. (2) Designation by units of government For purposes of paragraph (1), in the case of any plan established by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing, where the contributions of em- ploying units are designated as employee con- tributions but where any employing unit picks up the contributions, the contributions so picked up shall be treated as employer con- tributions. (I) Defined contribution plan For purposes of this part, the term "defined contribution plan" means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant's account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant's ac- count. (j) Defined benefit plan For purposes of this part, the term "defined benefit plan" means any plan which is not a de- fined contribution plan. (k) Certain plans A defined benefit plan which provides a bene- fit derived from employer contributions which is based partly on the balance of the separate account of a participant shall- (1) for purposes of section 410 (relating to minimum participation standards), be treated as a defined contribution plan. (2) for purposes of sections 411(a)(7)(A) (re- lating to minimum vesting standards) and 415 (relating to limitations on benefits and contri- butions under qualified plans), be treated as consisting of a defined contribution plan to the extent benefits are based on the separate account of a participant and as a defined benefit plan with respect to the remaining portion of benefits under the plan, and (3) for purposes of section 4975 (relating to tax on prohibited transactions), be treated as a defined benefit plan. (1) Mergers and consolidations of plans or transfers of plan assets A trust which forms a part of a plan shall not constitute a qualified trust under section 401 and a plan shall be treated as not described in section 403(a) or 405 unless in the case of any merger or consolidation of the plan with, or in the case of any transfer of assets or liabilities of such plan to, any other trust plan after Sep- tember 2, 1974, each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consoli- dation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consoli- dation, or transfer (if the plan had then termi- nated). This paragraph shall apply in the case of a multiemployer plan only to the extent de- termined by the Pension Benefit Guaranty Cor- poration. (Added Pub. L. 93-406, title II, § 1015, Sept. 2, 1974, 88 Stat. 925, and amended Pub. L. 94-455, title XIX, §§ 1901(a)(64), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1775, 1834.) REFERENCES IN TEXT The Railroad Retirement Act of 1935 or 1937, re- ferred to in subsec. (d), means act Aug. 29, 1935, ch. 812, 49 Stat. 867. known as the Railroad Retirement Act of 1935. The Railroad Retirement Act of 1935 was amended generally by act June 24, 1937, ch. 382, part I, 50 Stat. 307, and was known as the Railroad Retire- ment Act of 1937. The Railroad Retirement ,ct of 1937 was amended generally and redesignated the Railroad Retirement Act of 1974 by Pub. L. 93-444, title I, Oct. 16, 1974, 88 Stat. 1305 and is classified gen- erally to subchapter IV (§ 231 et seq.) of chapter 9 of Title 45, Railroads. For complete classification of this Act to the Code, see Tables volume. The International Organizations Immunities Act (59 Stat. 669), referred to in subsec. (d), is act Dec. 29, 1945, ch. 652, title I, 59 Stat. 669, as amended, which is classified principally to subchapter XVIII (§ 288 et seq.) of chapter 7 of Title 22, Foreign Relations and Inter- course. The Act also amended several other laws includ- ing the Internal Revenue Code of 1939. For exemp- tion from taxation of income of international organiza- tions and of the compensation of employees thereof, see sections 892 and 893 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 288 of Title 22 and Tables volume. AMENDMENTS 1976-Subsecs. (a) to (c. Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (f). Pub. L. 94-455, § 1901(a)(64)(A), substi- tuted "Plan" for "plan" in the subsection catchline. Subsec. (g)(2)(C). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (1). Pub. L. 94-455, § 1901(a)(64)(B), substi- tuted reference to Sept. 2, 1974, for reference to the date of enactment of the Employee Retirement Income Security Act of 1974. EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (1) by section 1901(a)(64) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94- 455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE Except as otherwise provided in section 1017(c) through (h) of Pub. L. 93--06, 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; T: .,nsl- tional Rules note under section 410 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 410, 411, 412, 415, 4975, 6057, 6058, 6059, 6692 of this title: title 29 sections 1301, 1321. Page 339 § 414