4979(a) GENERAL RULE. --In the case of any
plan, there is hereby imposed a tax for the taxable year equal
to 10 percent of the sum of --
4979(a)(1) any excess contributions
under such plan for the plan year ending in such taxable year,
and
4979(a)(2) any excess aggregate
contributions under the plan for the plan year ending in such
taxable year.
4979(b) LIABILITY FOR TAX.
--The tax imposed by subsection (a) shall be paid by the employer.
4979(c) EXCESS CONTRIBUTIONS.
--For purposes of this section, the term "excess contributions"
has the meaning given such term by sections 401(k)(8)(B), 408(k)(6)(C),
and 501(c)(18).
4979(d) EXCESS AGGREGATE CONTRIBUTION.
--For purposes of this section, the term "excess
aggregate contribution" has the meaning given to such term
by section 401(m)(6)(B). For purposes of determining excess
aggregate contributions under an annuity contract described
in section 403(b), such contract shall be treated as a plan
described in subsection (e)(1).
4979(e) PLAN. --For purposes
of this section, the term "plan" means --
4979(e)(1) a plan described
in section 401(a) which includes a trust exempt from tax under
section 501(a),
4979(e)(2) any annuity plan
described in section 403(a),
4979(e)(3) any annuity contract
described in section 403(b),
4979(e)(4) a simplified employee
pension of an employer which satisfies the requirements of section
408(k), and
4979(e)(5) a plan described
in section 501(c)(18).
Such term includes any plan which, at any time,
has been determined by the Secretary to be such a plan.
Code Sec. 4979(f), below, prior to amendment
by P.L. 109-280, applies to plan years beginning on or before
December 31, 2007.
4979(f) NO TAX WHERE EXCESS DISTRIBUTED WITHIN 21/2 MONTHS OF
CLOSE OF YEAR. --
4979(f)(1) IN GENERAL. --No
tax shall be imposed under this section on any excess contribution
or excess aggregate contribution, as the case may be, to the
extent such contribution (together with any income allocable
thereto) is distributed (or, if forfeitable, is forfeited) before
the close of the first 21/2 months of the following plan year.
4979(f)(2) YEAR OF INCLUSION. --
4979(f)(2)(A) IN GENERAL. --Except
as provided in subparagraph (B), any amount distributed as provided
in paragraph (1) shall be treated as received and earned by
the recipient in his taxable year for which such contribution
was made.
4979(f)(2)(B) DE MINIMIS DISTRIBUTIONS.
--If the total excess contributions and excess aggregate contributions
distributed to a recipient under a plan for any plan year are
less than $100, such distributions (and any income allocable
thereto) shall be treated as earned and received by the recipient
in his taxable year in which such distributions were made.
Code Sec. 4979(f), below, as amended by P.L.
109-280, applies to plan years beginning after December 31,
2007.
4979(f) NO TAX WHERE EXCESS DISTRIBUTED WITHIN SPECIFIED PERIOD
AFTER CLOSE OF YEAR. --
4979(f)(1) IN GENERAL. --No
tax shall be imposed under this section on any excess contribution
or excess aggregate contribution, as the case may be, to the
extent such contribution (together with any income allocable
thereto through the end of the plan year for which the contribution
was made) is distributed (or, if forfeitable, is forfeited)
before the close of the first 21/2 months (6 months in the case
of an excess contribution or excess aggregate contribution to
an eligible automatic contribution arrangement (as defined in
section 414(w)(3))) of the following plan year.
4979(f)(2) YEAR OF INCLUSION.
--Any amount distributed as provided in paragraph (1) shall
be treated as earned and received by the recipient in the recipient's
taxable year in which such distributions were made.
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