Page 344

TITLE 26-INTERNAL REVENUE CODE benefit plan (within the meaning of section 414(J)), whichever applies, which is- (A) a plan described in section 401(a) which includes a trust which is exempt from tax under section 501(a), (B) an annuity plan described in section 403(a), (C) a qualified bond purchase plan de- scribed in section 405(a), (D) an anmuity contract described in sec- tion 403(b), (E) an individual retirement account de- scribed in section 408(a), (F) an individual retirement annuity de- scribed in section 408(b), or (G) an individual retirement bond de- scribed in section 409. (Added Pub. L. 93-406, title II, § 2004(a)(2), Sept. 2, 1974, 88 Stat. 979, and amended Pub. L. 94-455, title VIII, § 803(b)(4), (f), title XV, §§ 1501(b)(3), 1502(a)(1), 1511(a), title XIX, §§ 1901(a)(65), (b)(8)(D), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1584, 1589, 1735-1737, 1741, 1775, 1794, 1834.) REFnERsS IN TEXT The Social Security Act, referred w in subsecs. (c)(4)(D)(iii), (d)(1), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended, which is classified generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Welfare. Sections 215(i)(2)(A) and 1861(o) of the Social Security Act enacted sections 415(i)(2)(A) and 1395x(o) of Title 42, respectively. For complete classi- fication of this Act to the Code, see Tables volume. Section 301(d) of the Tax Reduction Act of 1975, re- ferred to in subsec. (c)(6)(B)(1), (ii), is set out as a note under section 46 of this title. AMENDMENTS 1976-Subsec. (a)(2). Pub. L. 94-455, § 1501(b)(3)(A), substituted "Except as provided in paragraph (3), in the case" for "In the case". Subsec. (a)(3). Pub. L. 94-455, § 1501(b)(3)(B), added subsec. (a)(3). Subsec. (b)(2)(A). Pub. L. 94-455, § 1901(a)(65)(A), added closing parenthesis following "409(b)(3)(C)". Subsec. (b)(2)(B). Pub. L. 94-455, §§ 1901(a)(65)(B), 1906(b)(13)(A), struck out "or his delegate" following "Secretary" and substituted "section 401(a)(11)(G)(iii)" for "section 401(a)(11)(H)(iii)". Subsec. (b)(2)(C), (6). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (c)(4). Pub. L. 94-455, §§ 1901(b)(8)(D), 1906(b)(13)(A), substituted "educational organiza- tions" for "educational institutions" in the heading and "educational organization" for "educational insti- tution" in subpars. (A), (B), and (C), struck out "or his delegate" following "Secretary" in subpar. (D)(i), and substituted "For purposes of this paragraph the term 'educational organization' means an educational orga- nization described in section 170(b)(1)(A)(li)" for "For purposes of this paragraph the term 'educational insti- tution' means an educational institution as defined in section 151(e)(4)" in subpar. (D)(ii). Subsec. (c)(5). Pub. L. 94-455, § 1502(a)(1), added subsec. (c)(5). Subsec. (c)(6). Pub. L. 94-455, §803(f)(1), added subsec. (c)(). Subsec. (c)(7). Pub. L. 94-455, §1511(a), added subsec. (c)(7). Subsec. (d)(1). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (e)(3)(B). Pub. L. 94-455, §803(f)(2), substi- tuted "with the employer determined without regard to paragraph (6) of such subsection)" for "with the employer". Subsec. (e)(5). Pub. L. 94-455, §803(b)(4), substituted "For purposes of this section" for "For purposes of this subsection". Subsecs. (g), (i), (j). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". EFcTxvz DATE OF 1976 AMENDMENT Amendment of subsee. (a) by section 1501(b)(3) of Pub. L. 94-455 effective for years beginning after Dec. 31. 1976, see section 1501(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 220 of this title. Amendment of subsecs. (b) and (c) by section 1901(a)(65) and 0')(8)(D) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see sec- tion 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. Section 1502(b) of Pub. L. 94-455 provided that: "The amendment made by subsection (a)(1) [adding subsec. (c)(5) of this section] shall apply to years be. ginning after December 31, 1975. The amendment made by subsection (a)(2) (amending section 404te)(4) of this title] shall apply to taxable years beginning after December 31, 1975." Section 1511(b) of Pub. L. 94-455 provided that: "The amendment made by this section [adding subsec. (c)(7) of this section] shall apply for years beginning after December 31, 1975." Amendment of subsecs. (c) and (e) by section 803(b)(4), f) of Pub. L. 94-455 effective for years be- ginning after Dec. 31, 1975, see section 803(j) of Pub. L. 94-455, set out as an Effective Date of 1976 Amend- ment note under section 46 of this title. EFFECTIVE DATE; TRANSITION PROVISIONS Section 2004(d) of Pub. L. 93-406 provided that: "(1) General rule.-The amendments made by this section [enacting this section and section 401(a)(16) of this title, amending sections 403(b)(2), 404(a)(2), (3)(A). 405(a)(1), and 805(d)(1)(C) of this title, and enacting provisions set out as notes under this sec- tion] shall apply to years beginning after December 31, 1975. The Secretary of the Treasury shall pre- scribe such regulations as may be necessary to carry out the provisions of this paragraph. "(2) Transition rule for defined benefit plans.-In the case of an individual who was an active partici- pant in a defined benefit plan before October 3, 1973, if- "(A) the annual benefit (within the meaning of section 415(b)(2) of the Internal Revenue Code of 1954) [subsec. (b)(2) of this section] payable to such participant on retirement does not exceed 100 percent of his annual rate of compensation on the earlier of (i) October 2, 1973, or (ii) the date on which he separated from the service of the em. ployer, "(B) such annual benefit is no greater than the annual benefit which would have been payable to such participant on retirement if (i) all the terms and conditions of such plan in existence on such date had remained in existence until such retire- ment, and (ii) his compensation taken into account for any period after October 2, 1973, had not ex- ceeded his annual rate of compensation on such date, and "(C) in the case of a participant who separated from the service of the employer prior to October 2, 1973, such annual benefit is n" greater than his vested accrued benefit as of the date he separated from the service, then such annual benefit shall be treated as not ex- ceeding the limitation of subsection (b) of section 415 of the Internal Revenue Code of 1954 [subsec. (b) of this section]." SPECIAL RuLE FOR CERTAIN PLANS IN EFFECT ON SEPT. 2, 1974 Section 2004(a)(3) of Pub. L. 93-406 provided that: Page 344 § 415