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Appendix
Section 401(a)(26)(A)
(26) Additional participation requirements.--
(A) In general.--A trust shall not constitute a
qualified trust under this subsection unless such trust is
part of a plan which on each day of the plan year benefits
the lesser of --
(i) 50 employees of the employer, or
(ii) 40 percent or more of all employees of the
employer.
Section 402(b)(2)(A)
(b) Failure to meet requirements of section 410(b).--
(A) Highly compensated employees.--If 1 of the reasons
a trust is not exempt from tax under section 501(a) is the
failure of the plan of which it is a part to meet the
requirements of section 401(a)(26) or 410(b), then a highly
compensated employee shall, in lieu of the amount determined
under paragraph (1), include in gross income for the taxable
year with or within which the taxable year of the trust ends
an amount equal to the vested accrued benefit of such
employee (other than the employee's investment in the
contract) as of the close of such taxable year of the trust.
* * * * * * *
(C) Highly compensated employee.--For purposes of this
paragraph, the term "highly compensated employee" has the
meaning given such term by section 414(q).
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