§72 Annuities; certain proceeds of endowment and life insurance contracts

The enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001, referred to in subsec. (f), means the enactment of Pub. L. 107–16, which was approved

June 7, 2001. The date of the enactment of the Small Business Job Protection Act of 1996, referred to in subsec. (n), is the date of enactment of Pub. L. 104–188, which was approved Aug. 20, 1996. The Railroad Retirement Act of 1974, referred to in subsec. (r)(1), (2)(C)(i), (ii), is act Aug. 29, 1935, ch. 812, as amended generally by Pub. L. 93–445, title I, § 101, Oct. 16, 1974, 88 Stat. 1305, which is classified generally to subchapter IV (§ 231 et seq.) of chapter 9 of Title 45, Railroads. section 2(b), 3(h), and 4(e) and (h) of the Act are classified to section 231a(b), 231b(h), and 231c(e) and (h), respectively, of Title 45. For further details and complete classification of this Act to the Code, see Codification note set out preceding section 231 of Title 45, section 231t of Title 45, and Tables. The date of the enactment of this subparagraph, referred to in subsec. (t)(2)(G)(iv), is the date of enactment of Pub. L. 109–280, which was approved Aug. 17, 2006. section 1034 (as in effect on the day before the date of the enactment of this paragraph), referred to in subsec. (t)(8)(D)(i)(II), means section 1034 of this title as in effect on the day before Aug. 5, 1997. section 1034 was repealed by Pub. L. 105–34, title III, § 312(b), Aug. 5, 1997, 111 Stat. 839. The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (t)(11)(E), (F)(i)(I), is Pub. L. 93–288,

May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. section 401 of the Act is classified to section 5170 of Title 42. For complete classification of this Act to the Code, see

2022—Subsec. (d)(3). Pub. L. 117–328, § 127(e)(3), added par. (3). Subsec. (p)(6). Pub. L. 117–328, § 331(c)(1), added par. (6). Subsec. (q)(2). Pub. L. 117–328, § 323(d)(2), added concluding provisions. Subsec. (q)(3). Pub. L. 117–328, § 323(b), designated existing provisions as subpar. (A) and inserted heading, redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), and cls. (i) and (ii) of former subpar. (B) as subcls. (I) and (II), respectively, of cl. (ii), and added subpar. (B). Subsec. (t)(2)(A). Pub. L. 117–328, § 323(d)(1), added concluding provisions. Subsec. (t)(2)(A)(ix). Pub. L. 117–328, § 333(a), added cl. (ix). Subsec. (t)(2)(H)(v)(I). Pub. L. 117–328, § 311(a), substituted “may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make” for “may make”. Subsec. (t)(2)(H)(vi)(IV). Pub. L. 117–328, § 401(b)(1), substituted “403(b)(7)(A)(i)” for “403(b)(7)(A)(ii)”. Subsec. (t)(2)(I). Pub. L. 117–328, § 115(a), added subpar. (I). Subsec. (t)(2)(J). Pub. L. 117–328, § 127(e)(2), added subpar. (J). Subsec. (t)(2)(K). Pub. L. 117–328, § 314(a), added subpar. (K). Subsec. (t)(2)(L). Pub. L. 117–328, § 326(a), added subpar. (L). Subsec. (t)(2)(M). Pub. L. 117–328, § 331(a)(1), added subpar. (M). Subsec. (t)(2)(N). Pub. L. 117–328, § 334(c), added subpar. (N). Subsec. (t)(4)(C). Pub. L. 117–328, § 323(a), added subpar. (C). Subsec. (t)(6). Pub. L. 117–328, § 332(b)(1), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B). Subsec. (t)(8)(F). Pub. L. 117–328, § 331(b)(1), added subpar. (F). Subsec. (t)(10). Pub. L. 117–328, § 308(b), substituted “and private sector firefighters” for “in governmental plans” in heading. Subsec. (t)(10)(A). Pub. L. 117–328, § 329(a), substituted “age 50 or 25 years of service under the plan, whichever is earlier” for “age 50”. Pub. L. 117–328, § 308(a), substituted “414(d)) or a distribution from a plan described in clause (iii), (iv), or (vi) of section 402(c)(8)(B) to an employee who provides firefighting services” for “414(d))”. Subsec. (t)(10)(B)(i). Pub. L. 117–328, § 330(a), substituted “emergency medical services, or services as a corrections officer or as a forensic security employee providing for the care, custody, and control of forensic patients” for “or emergency medical services”. Subsec. (t)(11). Pub. L. 117–328, § 331(a)(2), added par. (11). 2019—Subsec. (p)(2)(D), (E). Pub. L. 116–94, § 108(a), added subpar. (D) and redesignated former subpar. (D) as (E). Subsec. (t)(2)(H). Pub. L. 116–94, § 113(a), added subpar. (H). 2015—Subsec. (t)(4)(A)(ii). Pub. L. 114–26, § 2(c), inserted “or a distribution to which paragraph (10) applies” after “other than by reason of death or disability” in introductory provisions. Subsec. (t)(10)(A). Pub. L. 114–26, § 2(b), struck out “which is a defined benefit plan” after “section 414(d))”. Subsec. (t)(10)(B). Pub. L. 114–26, § 2(a), substituted “means—” for “means”, designated remainder of existing provisions as cl. (i), and added cl. (ii). Subsec. (t)(10)(B)(ii). Pub. L. 114–113 substituted “any air traffic controller” for “or any air traffic controller” and inserted before period at end “, any nuclear materials courier described in section 8331(27) or 8401(33) of such title, any member of the United States Capitol Police, any member of the Supreme Court Police, or any diplomatic security special agent of the Department of State”. 2014—Subsec. (c)(4). Pub. L. 113–295, § 221(a)(14)(A), struck out “; except that if such date was before

January 1, 1954, then the annuity starting date is

January 1, 1954” before period at end. Subsec. (g)(3). Pub. L. 113–295, § 221(a)(14)(B), struck out “

January 1, 1954, or” before “the first day”. Pub. L. 113–295, § 221(a)(14)(B), which directed striking out “, whichever is later”, was executed by striking out “, whichever is the later” after “as an annuity” to reflect the probable intent of Congress. 2012—Subsec. (t)(2)(A)(viii). Pub. L. 112–141 added cl. (viii). 2010—Subsec. (a). Pub. L. 111–240 amended subsec. (a) generally. Prior to amendment, text read as follows: “Except as otherwise provided in this chapter, gross income includes any amount received as an annuity (whether for a period certain or during one or more lives) under an annuity, endowment, or life insurance contract.” 2008—Subsec. (t)(2)(G)(iv). Pub. L. 110–245, which directed amendment by striking out “, and before

December 31, 2007” after “

September 11, 2001”, was executed by striking out “, and on or before

December 31, 2007” after “

September 11, 2001”, to reflect the probable intent of Congress and the intervening amendment by Pub. L. 110–458. See Amendment note and

of 2008 Amendment note below. Pub. L. 110–458 inserted “on or” before “before” in first sentence. 2006—Subsec. (e)(11), (12). Pub. L. 109–280, § 844(a), added par. (11) and redesignated former par. (11) as (12). Subsec. (t)(2)(G). Pub. L. 109–280, § 827(a), added subpar. (G). Subsec. (t)(10). Pub. L. 109–280, § 828(a), added par. (10). 2004—Subsec. (e)(9). Pub. L. 108–311, § 408(b)(3), amended Pub. L. 107–22, § 1(b)(3)(A). See 2001 Amendment note below. Subsec. (f). Pub. L. 108–311, § 408(a)(4), substituted “Economic Growth and Tax Relief Reconciliation Act of 2001)” for “Economic Growth and Tax Relief Reconciliation Act of 2001” in concluding provisions. Subsec. (t)(2)(D)(i)(III). Pub. L. 108–311, § 207(6), inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof” after “section 152”. Subsec. (t)(7)(A)(iii). Pub. L. 108–311, § 207(7), substituted “152(f)(1)” for “151(c)(3)”. Subsecs. (w), (x). Pub. L. 108–357 added subsec. (w) and redesignated former subsec. (w) as (x). 2001—Subsec. (e)(9). Pub. L. 107–22, § 1(b)(3)(A), as amended by Pub. L. 108–311, § 408(b)(3), substituted “Coverdell education savings” for “educational individual retirement” in heading. Pub. L. 107–22, § 1(b)(1)(A), substituted “a Coverdell education savings” for “an education individual retirement”. Pub. L. 107–16, § 402(a)(4)(A), (B), substituted “qualified tuition” for “qualified State tuition” in heading and text. Subsec. (f). Pub. L. 107–16, § 632(a)(3)(A), substituted “section 403(b)(2)(D)(iii), as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001” for “section 403(b)(2)(D)(iii))” in concluding provisions. Subsec. (o)(4). Pub. L. 107–16, § 641(e)(1), substituted “403(b)(8), 408(d)(3), and 457(e)(16)” for “and 408(d)(3)”. Subsec. (r)(2)(B)(i). Pub. L. 107–90 substituted “3211(b)” for “3211(a)(2)”. Subsec. (t)(9). Pub. L. 107–16, § 641(a)(2)(C), added par. (9). 1998—Subsec. (e)(9). Pub. L. 105–206, § 6004(d)(3)(B), added par. (9). Subsec. (n). Pub. L. 105–206, § 6023(3), inserted “(as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996)” after “section 101(b)(2)(D)”. Subsec. (t)(2)(A)(iv). Pub. L. 105–206, § 3436(a), which directed amendment of cl. (iv) by striking out “or” at end, could not be executed because the word “or” did not appear at end. Subsec. (t)(2)(A)(vii). Pub. L. 105–206, § 3436(a), added cl. (vii). Subsec. (t)(3)(A). Pub. L. 105–206, § 6023(4), substituted “(A)(v)” for “(A)(v),”. Subsec. (t)(8)(E). Pub. L. 105–206, § 6005(c)(1), in introductory provisions, substituted “120th day” for “120 days” and “60th day” for “60 days”. 1997—Subsec. (d)(1)(B)(iii). Pub. L. 105–34, § 1075(b), inserted “If the annuity is payable over the life of a single individual, the number of anticipated payments shall be determined as follows:” before table and struck out “primary” after “If the age of the” in table. Subsec. (d)(1)(B)(iv). Pub. L. 105–34, § 1075(a), added cl. (iv). Subsec. (t)(2)(E). Pub. L. 105–34, § 203(a), added subpar. (E). Subsec. (t)(2)(F). Pub. L. 105–34, § 303(a), added subpar. (F). Subsec. (t)(7). Pub. L. 105–34, § 203(b), added par. (7). Subsec. (t)(8). Pub. L. 105–34, § 303(b), added par. (8). 1996—Subsec. (b)(4)(A). Pub. L. 104–188, § 1704(l)(1), inserted “(determined without regard to subsection (c)(2))” after “contract”. Subsec. (d). Pub. L. 104–188, § 1403(a), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “Treatment of Employee Contributions Under Defined Contribution Plans as Separate Contracts.—For purposes of this section, employee contributions (and any income allocable thereto) under a defined contribution plan may be treated as a separate contract.” Subsec. (f). Pub. L. 104–188, § 1463(a), in closing provisions, inserted before period at end “, or to the extent such credits are attributable to services performed as a foreign missionary (within the meaning of section 403(b)(2)(D)(iii))”. Subsec. (m)(2)(A) to (C). Pub. L. 104–188, § 1704(t)(2), inserted “and” at end of subpar. (A), redesignated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: “the consideration for the contract contributed by the employee for purposes of subsection (d)(1) (relating to employee’s contributions recoverable in 3 years) and subsection (e)(7) (relating to plans where substantially all contributions are employee contributions), and”. Subsec. (p)(4)(A)(ii). Pub. L. 104–188, § 1704(t)(77), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “Special rules.—The term ‘qualified employer plan’— “(I) shall include any plan which was (or was determined to be) a qualified employer plan or a government plan, but “(II) shall not include a plan described in subsection (e)(7).” Subsec. (t)(2)(B). Pub. L. 104–191, § 361(c), substituted “, (C), or (D)” for “or (C)”. Subsec. (t)(2)(D). Pub. L. 104–191, § 361(b), added subpar. (D). Subsec. (t)(3)(A). Pub. L. 104–191, § 361(a), struck out “(B),” after “Subparagraphs (A)(v),”. Subsec. (t)(6). Pub. L. 104–188, § 1421(b)(4)(A), added par. (6). 1992—Subsec. (o)(4). Pub. L. 102–318 substituted “402(c)” for “402(a)(5), 402(a)(7)”. 1990—Subsec. (t)(2)(C), (D). Pub. L. 101–508, § 11802(a)(1), (2), redesignated subpar. (D) as (C) and struck out former subpar. (C) “Exceptions for distributions from employee stock ownership plans” which read as follows: “Any distribution made before

January 1, 1990, to an employee from an employee stock ownership plan (as defined in section 4975(e)(7)) or a tax credit employee stock ownership plan (as defined in section 409) if— “(i) such distribution is attributable to assets which have been invested in employer securities (within the meaning of section 409(l)) at all times during the 5-plan-year period preceding the plan year in which the distribution is made, and “(ii) at all times during such period the requirements of section 401(a)(28) and 409 (as in effect at such times) are met with respect to such employer securities.” Subsec. (t)(3)(A). Pub. L. 101–508, § 11802(a)(3), substituted “and (C)” for “(C), and (D)”. 1989—Subsec. (e)(11)(A). Pub. L. 101–239, § 7815(a)(3), (5), substituted “calendar year” for “12-month period” in cls. (i) and (ii), and inserted at end “The preceding sentence shall not apply to any contract described in paragraph (5)(D).” Subsec. (q)(2)(B). Pub. L. 101–239, § 7811(m)(4), inserted an additional closing parenthesis after “subsection (s)(6)(B))”. 1988—Subsec. (d). Pub. L. 100–647, § 1011A(b)(2)(A), added subsec. (d). Subsec. (e)(4)(A). Pub. L. 100–647, § 5012(d)(1), inserted at end “The preceding sentence shall not apply for purposes of determining investment in the contract, except that the investment in the contract shall be increased by any amount included in gross income by reason of the amount treated as received under the preceding sentence.” Subsec. (e)(5)(C). Pub. L. 100–647, § 5012(a)(2), substituted “Except as provided in paragraph (10) and except to the extent” for “Except to the extent”. Subsec. (e)(5)(D). Pub. L. 100–647, § 1011A(b)(9)(B), substituted “paragraph (8)” for “paragraphs (7) and (8)”. Subsec. (e)(7). Pub. L. 100–647, § 1011A(b)(9)(A), struck out par. (7) which related to special rules for plans where substantially all contributions are employee contributions. Subsec. (e)(8)(A). Pub. L. 100–647, § 1011A(b)(9)(C), struck out “(other than paragraph (7))” after “this subsection”. Subsec. (e)(9). Pub. L. 100–647, § 1011A(b)(2)(B), struck out par. (9) which related to treatment of employee contributions as separate contract. Subsec. (e)(10). Pub. L. 100–647, § 5012(a)(1), added par. (10). Subsec. (e)(11). Pub. L. 100–647, § 5012(d)(2), added par. (11). Subsec. (f). Pub. L. 100–647, § 1011A(b)(1)(A), struck out “for purposes of subsections (d)(1) and (e)(7), the consideration for the contract contributed by the employee,” after “contract,” in introductory provisions. Subsec. (n). Pub. L. 100–647, § 1011A(b)(1)(B), substituted “Subsection (b)” for “Subsections (b) and (d)”. Subsec. (o)(2). Pub. L. 100–647, § 1011A(c)(8), struck out par. (2) which related to additional tax if amount received before age 59½. Subsec. (p)(3)(A). Pub. L. 100–647, § 1011A(h)(1), inserted “to which paragraph (1) does not apply by reason of paragraph (2) during the period” after “loan”. Subsec. (p)(3)(B). Pub. L. 100–647, § 1011A(h)(2), substituted “Period” for “Loans” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of subparagraph (A), a loan is described in this subparagraph— “(i) if paragraph (1) does not apply to such loan by reason of paragraph (2), and “(ii) if— “(I) such loan is made to a key employee (as defined in section 416(i)), or “(II) such loan is secured by amounts attributable to elective 401(k) or 403(b) deferrals (as defined in section 402(g)(3)).” Subsec. (q)(2)(B). Pub. L. 100–647, § 1018(t)(1)(B), substituted “subsection (s)(6)(B))” for “subsection (s)(6)(B)))”. Subsec. (q)(2)(D). Pub. L. 100–647, § 1011A(c)(7), inserted “designated” before “beneficiary”. Pub. L. 100–647, §§ 1011A(c)(4), 1018(u)(8), amended subpar. (D) identically, substituting a comma for period at end. Subsec. (q)(2)(E). Pub. L. 100–647, § 1011A(b)(9)(D), struck out “(determined without regard to subsection (e)(7))” after “subsection (e)(5)(D)”. Subsec. (q)(2)(G). Pub. L. 100–647, § 1011A(c)(4), substituted a comma for period at end. Subsec. (q)(2)(H). Pub. L. 100–647, § 1011A(c)(6), added subpar. (H). Subsec. (q)(3)(B). Pub. L. 100–647, § 1011A(c)(5), substituted “taxpayer” for “employee” in cls. (i) and (ii). Subsec. (s)(5). Pub. L. 100–647, § 1018(k)(2), substituted “certain annuity contracts” for “annuity contracts which are part of qualified plans” in heading. Subsec. (s)(5)(D). Pub. L. 100–647, § 1018(k)(1), added subpar. (D). Subsec. (s)(7). Pub. L. 100–647, § 1018(t)(1)(A), substituted “primary annuitant” for “primary annuity”. Subsec. (t)(2)(A)(iv). Pub. L. 100–647, § 1011A(c)(7), inserted “designated” before “beneficiary”. Subsec. (t)(2)(A)(v). Pub. L. 100–647, § 1011A(c)(1), struck out “on account of early retirement under the plan” after “separation from service”. Subsec. (t)(2)(C). Pub. L. 100–647, § 1011A(c)(2), substituted “Exceptions for distributions from employee stock ownership plans” for “Certain plans” in heading and amended text generally. Prior to amendment, text read as follows: “(i) In general.—Except as provided in clause (ii), any distribution made before

January 1, 1990, to an employee from an employee stock ownership plan defined in section 4975(e)(7) to the extent that, on average, a majority of assets in the plan have been invested in employer securities (as defined in section 409(l)) for the 5-plan-year period preceding the plan year in which the distribution is made. “(ii) Benefits distributed must be invested in employer securities for 5 years.—Clause (i) shall not apply to any distribution which is attributable to assets which have not been invested in employer securities at all times during the period referred to in clause (i).” Subsec. (t)(3)(A). Pub. L. 100–647, § 1011A(c)(3), substituted “(C), and (D)” for “and (C)”. Subsec. (u)(1)(A). Pub. L. 100–647, § 1011A(i)(1), inserted “(other than subchapter L)” after “subtitle”. Subsec. (u)(3)(D). Pub. L. 100–647, § 1011A(i)(3), substituted “is purchased” for “which is purchased” and “is held” for “which is held”. Pub. L. 100–647, § 1011A(i)(2), substituted “until all amounts under such contract are distributed to the employee for whom such contract was purchased or the employee’s beneficiary” for “until such time as the employee separates from service”. Subsec. (u)(3)(E). Pub. L. 100–647, § 1011A(i)(3), substituted “is” for “which is”. Subsec. (u)(4)(C). Pub. L. 100–647, § 1011A(i)(4), added subpar. (C). Subsecs. (v), (w). Pub. L. 100–647, § 5012(b)(1), added subsec. (v) and redesignated former subsec. (v) as (w). 1986—Subsec. (b). Pub. L. 99–514, § 1122(c)(2), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “Gross income does not include that part of any amount received as an annuity under an annuity, endowment, or life insurance contract which bears the same ratio to such amount as the investment in the contract (as of the annuity starting date) bears to the expected return under the contract (as of such date). This subsection shall not apply to any amount to which subsection (d)(1) (relating to certain employee annuities) applies.” Subsec. (d). Pub. L. 99–514, § 1122(c)(1), struck out subsec. (d) which related to employee’s annuities where the employee’s contributions were recoverable in 3 years. Subsec. (e)(4)(C). Pub. L. 99–514, § 1826(b)(3), added subpar. (C). Subsec. (e)(5)(D). Pub. L. 99–514, § 1122(c)(3)(B), substituted “paragraphs (7) and (8)” for “paragraph (7)” in introductory provisions. Pub. L. 99–514, § 1854(b)(1), inserted closing provisions which read as follows: “Any dividend described in section 404(k) which is received by a participant or beneficiary shall, for purposes of this subparagraph, be treated as paid under a separate contract to which clause (ii)(I) applies.” Subsec. (e)(7)(B). Pub. L. 99–514, § 1852(c)(1), in introductory provisions substituted “any plan or contract” for “any trust or contract”, in cl. (ii) substituted “85 percent or more of” for “85 percent of”, and inserted closing provision: “For purposes of clause (ii), deductible employee contributions (as defined in subsection (o)(5)(A)) shall not be taken into account.” Subsec. (e)(8), (9). Pub. L. 99–514, § 1122(c)(3)(A), added pars. (8) and (9). Subsec. (f). Pub. L. 99–514, § 1852(c)(3), in introductory provisions, substituted “subsections (d)(1) and (e)(7)” for “subsection (d)(1)” and “subsection (e)(6)” for “subsection (e)(1)(B)”. Subsec. (m)(2)(B). Pub. L. 99–514, § 1852(c)(4)(A), inserted “and subsection (e)(7) (relating to plans where substantially all contributions are employee contributions)”. Subsec. (m)(2)(C). Pub. L. 99–514, § 1852(c)(4)(B), substituted “subsection (e)(6)” for “subsection (e)(1)(B)”. Subsec. (m)(5). Pub. L. 99–514, § 1852(a)(2)(C), which directed that par. (5) be amended by substituting “5-percent owners” for “owner-employees” in heading, was executed by substituting “5-percent owners” for “key employees”, to reflect the probable intent of Congress and intervening amendment by section 713(c)(1)(B) of Pub. L. 98–369. Subsec. (m)(5)(A). Pub. L. 99–514, § 1123(d)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “This subparagraph shall apply— “(i) to amounts which— “(I) are received from a qualified trust described in section 401(a) or under a plan described in section 403(a), and “(II) are received by a 5-percent owner before such owner attains the age of 59½ years, for any reason other than such owner becoming disabled (within the meaning of paragraph (7) of this section), and “(ii) to amounts which are received from a qualified trust described in section 401(a) or under a plan described in section 403(a) at any time by a 5-percent owner, or by the successor of such owner, but only to the extent that such amounts are determined (under

prescribed by the Secretary, to exceed the benefits provided for such individual under the plan formula.” Subsec. (m)(5)(C). Pub. L. 99–514, § 1852(a)(2)(B), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “For purposes of this paragraph, the term ‘5 percent owner’ have the same meanings as when used in section 416.” Subsec. (m)(10). Pub. L. 99–514, § 1898(c)(1)(B), inserted “who is the spouse or former spouse of the participant”. Subsec. (o)(5). Pub. L. 99–514, § 1101(b)(2)(C), inserted “and made for a taxable year beginning before

January 1, 1987,” in subpar. (A), substituted “subsection (p)(3)(A)(i)” for “section 219(e)(3)” in subpar. (C), and substituted “subsection (p)(3)(B)” for “section 219(e)(4)” in subpar. (D). Subsec. (p)(2)(A)(i). Pub. L. 99–514, § 1134(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “$50,000, or”. Subsec. (p)(2)(B)(ii). Pub. L. 99–514, § 1134(d), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “Clause (i) shall not apply to any loan used to acquire, construct, reconstruct, or substantially rehabilitate any dwelling unit which within a reasonable time is to be used (determined at the time the loan is made) as a principal residence of the participant or a member of the family (within the meaning of section 267(c)(4)) of the participant.” Subsec. (p)(2)(C), (D). Pub. L. 99–514, § 1134(b), added subpar. (C) and redesignated former subpar. (C) as (D). Subsec. (p)(3). Pub. L. 99–514, § 1134(c), added par. (3) and redesignated former par. (3) as (4). Pub. L. 99–514, § 1101(b)(2)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For purposes of this subsection, the term ‘qualified employer plan’ means any plan which was (or was determined to be) a qualified employer plan (as defined in section 219(e)(3) other than a plan described in subsection (e)(7)). For purposes of this subsection, such term includes any government plan (as defined in section 219(e)(4)).” Subsec. (p)(4), (5). Pub. L. 99–514, § 1134(c), redesignated former pars. (3) and (4) as (4) and 5, respectively. Subsec. (q). Pub. L. 99–514, § 1123(b)(1)(B), substituted “10-percent” for “5-percent” in heading. Subsec. (q)(1). Pub. L. 99–514, § 1123(b)(1)(A), substituted “10 percent” for “5 percent”. Subsec. (q)(2). Pub. L. 99–514, § 1123(b)(3), substituted “Paragraph (1)” for “This subsection” in introductory provisions. Subsec. (q)(2)(B). Pub. L. 99–514, § 1826(c), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “made to a beneficiary (or to the estate of an annuitant) on or after the death of an annuitant,”. Subsec. (q)(2)(D). Pub. L. 99–514, § 1123(b)(2), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “which is one of a series of substantially equal periodic payments made for the life of a taxpayer or over a period extending for at least 60 months after the annuity starting date,”. Subsec. (q)(2)(E). Pub. L. 99–514, § 1852(c)(2), inserted “(determined without regard to subsection (e)(7))”. Subsec. (q)(2)(G). Pub. L. 99–514, § 1826(d), added subpar. (G). Subsec. (q)(2)(I), (J). Pub. L. 99–514, § 1123(b)(4), which added subpars. (I) and (J) directed the amendment of subpar. (G) by striking out “or” at the end thereof, and of subpar. (H) by striking out the period at the end thereof, could not be executed to subpars. (G) and (H) because subpar. (G) does not contain “or”, and no subpar. (H) was enacted. Subsec. (q)(3). Pub. L. 99–514, § 1123(b)(3), added par. (3). Subsec. (s)(1). Pub. L. 99–514, § 1826(b)(2), substituted “any holder of such contract” for “the holder of such contract” in subpars. (A) and (B). Subsec. (s)(5). Pub. L. 99–514, § 1826(a), added par. (5). Subsec. (s)(6), (7). Pub. L. 99–514, § 1826(b)(1), added pars. (6) and (7). Subsec. (t). Pub. L. 99–514, § 1123(a), added subsec. (t) and redesignated former subsec. (t) as (u). Subsecs. (u), (v). Pub. L. 99–514, § 1135(a), added subsec. (u) and redesignated former subsec. (u) as (v). 1984—Subsec. (e)(5)(D). Pub. L. 98–369, § 523(b)(1), substituted “Except as provided in paragraph (7), this” for “This”. Subsec. (e)(5)(D)(ii)(IV). Pub. L. 98–369, § 211(b)(1), which directed substitution of “section 818(a)(3)” for “805(d)(3)” in subpar. (D)(i)(IV), was executed to subpar. (D)(ii)(IV) to reflect the probable intent of Congress. Subsec. (e)(7). Pub. L. 98–369, § 523(a), added par. (7). Subsec. (k). Pub. L. 98–369, § 421(b)(1), repealed subsec. (k) relating to payments in discharge of alimony. Subsec. (m)(5). Pub. L. 98–369, § 713(c)(1)(B), substituted “key employees” for “owner-employees” in heading. Subsec. (m)(5)(A). Pub. L. 98–369, § 521(d)(1), (2), substituted “5-percent owner” for “key employee” wherever appearing and struck out “in a top-heavy plan” at end of cl. (i). Pub. L. 98–369, § 713(c)(1)(A), substituted “as a key employee” for “as an owner-employee” in cl. (i). Subsec. (m)(5)(C). Pub. L. 98–369, § 521(d)(3), substituted “the term ‘5 percent owner’ ” for “the terms ‘key employee’ and ‘top-heavy plan’ ”. Subsec. (m)(9). Pub. L. 98–369, § 713(d)(1), repealed par. (9) relating to return of excess contributions before due date of return. Subsec. (m)(10). Pub. L. 98–397 added par. (10). Subsec. (o)(1). Pub. L. 98–369, § 491(d)(3), substituted “402 and 403” for “402, 403, and 405”. Subsec. (o)(3)(A). Pub. L. 98–369, § 713(b)(1)(A), inserted “(other than the exception contained in paragraph (2) thereof)”. Subsec. (o)(4). Pub. L. 98–369, § 491(d)(4), substituted “and 408(d)(3)” for “408(d)(3), and 409(b)(3)(C)”. Subsec. (p)(2)(A). Pub. L. 98–369, § 713(b)(1)(B), inserted at end “For purposes of clause (ii), the present value of the nonforfeitable accrued benefit shall be determined without regard to any accumulated deductible employee contributions (as defined in subsection (o)(5)(B)).” Subsec. (p)(2)(A)(ii). Pub. L. 98–369, § 713(b)(4), substituted as cl. (ii) “the greater of (I) one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan, or (II) $10,000” for “½ of the present value of the nonforfeitable accrued benefit of the employee under the plan (but not less than $10,000)”. Subsec. (p)(3). Pub. L. 98–369, § 523(b)(2), inserted “other than a plan described in subsection (e)(7)”. Subsec. (q)(1). Pub. L. 98–369, § 222(a), amended par. (1) generally, striking out designation “(A) In general.—” preceding text, substituting “which is includible in gross income” for “includible in gross income which is properly allocable to any investment in the annuity contract made during the 10-year period ending on the date such amount was received by the taxpayer”, and striking out former subpar. (B), which had provided that for purposes of subpar. (A), the amount includible in gross income would be allocated to the earliest investment in the contract with respect to which amounts had not been previously fully allocated under this par. Subsecs. (s), (t). Pub. L. 98–369, § 222(b), added subsec. (s) and redesignated former subsec. (s) as (t). 1983—Subsec. (o)(2)(A). Pub. L. 97–448, § 103(c)(6), struck out “to which the employee made one or more deductible employee contributions” after “from a qualified employer plan or government plan”. Subsec. (p)(3). Pub. L. 97–448, § 103(c)(3)(B)(i), struck out “without regard to subparagraph (D) thereof” after “as defined in section 219(e)(3)”. Subsecs. (r), (s). Pub. L. 98–76 added subsec. (r) and redesignated former subsec. (r) as (s). 1982—Subsec. (e). Pub. L. 97–248, § 265(a), in par. (1) substituted provisions relating to the application of this subsection to amounts received under annuity, endowment, or life insurance contracts which are not received as annuities and to amounts received as dividends for provisions which stated a general rule relating to the includability as gross income of amounts that were received under annuity, endowment, or life insurance contracts which were not received as annuities and also stated that for the purposes of this section amounts which were received as dividends would be treated as amounts not received as an annuity, in par. (2) substituted provisions stating a general rule as to the includability as gross income of amounts received before or after the annuity starting date for provisions which set out those amounts which would be treated as amounts not received as an annuity, and added pars. (3) to (6). Subsec. (m)(4). Pub. L. 97–248, § 236(b)(1), struck out par. (4) which related to amounts constructively received with respect to assignments or pledges, and loans on contracts. Subsec. (m)(5). Pub. L. 97–248, § 237(d)(1), (2), in subpar. (A) substituted applicability to key employees for applicability to owner-employees and added subpar. (C). Subsec. (m)(6). Pub. L. 97–248, § 237(d)(3), struck out “except in applying paragraph (5),” after “shall”. Subsec. (m)(8). Pub. L. 97–248, § 236(b)(1), struck out par. (8) which related to loans to owner-employees. Subsec. (o)(3)(A). Pub. L. 97–248, § 236(b)(2), substituted reference to subsec. (p) of this section for references to subsec. (m)(4) and (8) of this section. Subsec. (p). Pub. L. 97–248, § 236(a), added subsec. (p). Former subsec. (p) redesignated (q). Subsec. (q). Pub. L. 97–248, § 265(b)(1), added subsec. (q). Former subsec. (q) redesignated (r). Pub. L. 97–248, § 236(a), redesignated former subsec. (p) as (q). Subsec. (r). Pub. L. 97–248, §§ 236(a), 265(b)(1), redesignated former subsec. (p) as (r). 1981—Subsec. (m)(6). Pub. L. 97–34, § 312(d)(1), expanded definition of “owner-employee” to include an employee within the meaning of section 401(c)(1) except in applying paragraph (5). Subsec. (m)(8). Pub. L. 97–34, § 312(d)(2), added par. (8). Subsec. (m)(9). Pub. L. 97–34, § 312(e)(1), added par. (9). Subsecs. (o), (p). Pub. L. 97–34, § 311(b)(1), added subsec. (o) and redesignated former subsec. (o) as (p). 1976—Subsec. (c)(2), (3)(A). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. Subsec. (d)(1). Pub. L. 94–455, § 1901(a)(12), struck out in subpar. (B) “(whether or not before

January 1, 1954)” after “beginning on the date”, and in provisions following subpar. (B) struck out “(under this paragraph and prior income tax laws)” after “until there has been so excluded”. Subsec. (f). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. Subsec. (i). Pub. L. 94–455, § 1951(b)(1)(A), struck out subsec. (i) which related to joint annuities where first annuitant died in 1951, 1952, or 1953. Subsec. (m)(2), (3). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. Subsec. (m)(4)(A). Pub. L. 94–455, § 1901(a)(13), substituted “an individual retirement account” for “an individual retirement amount”. Subsec. (m)(5)(A)(ii), (7). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. 1974—Subsec. (m)(1). Pub. L. 93–406, § 2001(h)(2), struck out par. (1) which related to certain amounts received before annuity starting date. Subsec. (m)(4)(A). Pub. L. 93–406, § 2002(g)(10)(A), inserted references to an individual retirement amount described in section 408(a) and an individual retirement annuity described in section 408(b). Subsec. (m)(5)(A). Pub. L. 93–406, § 2001(e)(5), (h)(3), substituted “(other than contributions made by him as an owner-employee)” for “(whether or not paid by him)” in cl. (i), and struck out cl. (iii) which had made reference to amounts which were received, by an individual who was or had been, an owner-employee, by reason of the distribution under the provisions of section 401(e)(2)(E) of his entire interest in all qualified trusts described in section 401(a) and in all plans described in section 403(a). Subsec. (m)(5)(B). Pub. L. 93–406, § 2001(g)(1), substituted provisions that if a person receives an amount to which subsec. (m)(5) applies, his tax under this chapter for the taxable year in which such amount is received shall be increased by an amount equal to 10 percent of the portion of the amount so received which is includible in his gross income for such taxable year for provisions that if the aggregate amounts to which subsec. (m)(5) applied received by any person in his taxable year equalled or exceeded $2,500, the increase in his tax for the taxable year in which such amounts were received and attributable to such amounts could not be less than 110 percent of the aggregate increase in taxes, for the taxable year and the 4 immediately preceding taxable years, which would have resulted if such amounts had been included in such person’s gross income ratably over such taxable years, with provision for alternate computation if deductions had been allowed under section 404 for contributions paid for a number of prior taxable years less than 4. Subsec. (m)(5)(C) to (E). Pub. L. 93–406, § 2001(g)(2)(A), struck out subpars. (C) to (E) which contained special rules for the application of subsec. (m)(5). Subsec. (m)(6). Pub. L. 93–406, § 2002(g)(10)(B), inserted reference to an individual for whose benefit an individual retirement account or annuity described in section 408(a) or (b) is maintained. Subsec. (n). Pub. L. 93–406, §§ 2005(c)(3), 2007(b)(2), redesignated former subsec. (o) as (n) and in heading of subsec. (n) as so redesignated inserted reference to survivor benefit plan. Former subsec. (n), which set out provisions covering the treatment to be accorded total distributions, was struck out. Subsec. (o). Pub. L. 93–406, § 2005(c)(3), redesignated former subsec. (p) as (o). Former subsec. (o) redesignated (n) and amended. Subsec. (p). Pub. L. 93–406, § 2005(c)(3), redesignated subsec. (p) as (o). 1969—Subsec. (n)(1). Pub. L. 91–172, § 515(b)(1), altered section to accommodate the insertion into section 402 and 403 of provisions under which employer contributions to qualified pension, profit sharing, stock bonus, and annuity plans for plan years beginning after 1969 are to be treated as ordinary income when received in a lump sum distribution, but with such amounts to be eligible for a special averaging procedure. Subsec. (n)(4). Pub. L. 91–172, § 515(b)(2), added par. (4). 1966—Subsecs. (o), (p). Pub. L. 89–365 added subsec. (o) and redesignated former subsec. (o) as (p). 1965—Subsec. (m)(5)(A)(i). Pub. L. 89–97, § 106(d)(2)(A), substituted “paragraph (7) of this subsection” for “section 213(g)(3)”. Subsec. (m)(7). Pub. L. 89–97, § 106(d)(2)(B), added par. (7). Subsec. (n)(1). Pub. L. 89–97, § 106(d)(2)(C), substituted in subpars. (A)(iii) and (B)(iii) “subsection (m)(7)” for “section 213(g)(3)”. Subsec. (n)(3). Pub. L. 89–44 substituted “section 31 and 39” for “section 31” in sentence following subpar. (B). 1964—Subsec. (e)(3). Pub. L. 88–272 struck out par. (3) which provided for a limit on the tax attributable to the receipt of a lump sum. 1962—Subsec. (d)(2). Pub. L. 87–792, § 4(a), designated existing provisions as cl. (A) and added cl. (B). Subsec. (f). Pub. L. 87–834 inserted sentence providing that par. (2) shall not apply to amounts which were contributed by the employer after Dec. 31, 1962, and which would not have been includible in the gross income of the employee by reason of the application of section 911 if such amounts had been paid directly to the employee at the time of contribution, and making such sentence inapplicable to amounts which were contributed by the employer, as determined under

made by this section [amending this section] shall apply to distributions after

December 31, 2015.” Pub. L. 114–26, § 2(d),

June 29, 2015, 129 Stat. 319, provided that: “The

relate.” Pub. L. 110–245, title I, § 107(b),

June 17, 2008, 122 Stat. 1631, provided that: “The amendment made by this section [amending this section] shall apply to individuals ordered or called to active duty on or after

December 31, 2007.”

made by this section [enacting section 6050U of this title and amending this section and section 848, 1035, 6724, and 7702B of this title] shall apply to contracts issued after

December 31, 1996, but only with respect to taxable years beginning after

December 31, 2009. “(2) Tax-free exchanges.—The

made by subsection (d) [enacting section 6050U of this title and amending section 6724 of this title] shall apply to charges made after

December 31, 2009. “(4) Policy acquisition expenses.—The amendment made by subsection (e) [amending section 848 of this title] shall apply to specified policy acquisition expenses determined for taxable years beginning after

December 31, 2009. “(5) Technical amendment.—The amendment made by subsection (f) [amending section 7702B of this title] shall take effect as if included in section 321(a) of the Health Insurance Portability and Accountability Act of 1996 [Pub. L. 104–191].”

of 2001 AmendmentAmendment by Pub. L. 107–90 applicable to calendar years beginning after Dec. 31, 2001, see section 204(f) of Pub. L. 107–90, set out as a note under section 24 of this title. Amendment by Pub. L. 107–22 effective

July 26, 2001, see section 1(c) of Pub. L. 107–22, set out as a note under section 26 of this title. Pub. L. 107–16, title IV, § 402(h),

June 7, 2001, 115 Stat. 63, provided that: “The

made by this section [amending this section and section 135, 221, 529, 530, 4973, and 6693 of this title] shall apply to taxable years beginning after

December 31, 2001.” Pub. L. 107–16, title VI, § 632(a)(4),

June 7, 2001, 115 Stat. 115, provided that: “The

made by this section [amending this section] shall apply to distributions after

December 31, 1999.” Amendment by section 6023(3), (4) of Pub. L. 105–206 effective

July 22, 1998, see section 6023(32) of Pub. L. 105–206, set out as a note under section 34 of this title. Amendment by section 6004(d)(3)(B) and 6005(c)(1) of Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

made by this section [amending this section, section 219, 280G, 402, 404, 408, 414, 416, 457, 3121, 3306, 3401, 4972, and 6693 of this title, section 1021 and 1104 of Title 29, Labor, and section 409 of Title 42, The Public Health and Welfare] shall apply to taxable years beginning after

December 31, 1996.” Pub. L. 104–188, title I, § 1463(b), Aug. 20, 1996, 110 Stat. 1824, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after

December 31, 1996.” Pub. L. 104–188, title I, § 1704(l)(2), Aug. 20, 1996, 110 Stat. 1882, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect as if included in the

made by this section [amending this section and section 219 of this title] shall apply to contributions for taxable years beginning after

December 31, 1986.” Amendment by section 1122(c)(1) of Pub. L. 99–514 applicable to individuals whose annuity starting date is after

July 1, 1986, amendment by section 1122(c)(2) of Pub. L. 99–514 applicable to individuals whose annuity starting date is after Dec. 31, 1986, and amendment by section 1122(c)(3) of Pub. L. 99–514 applicable to amounts received after

July 1, 1986, in the case of any plan not described in section 72(e)(8)(D) of this title, see section 1122(h)(2) of Pub. L. 99–514, set out as a note under section 402 of this title. Pub. L. 99–514, title XI, § 1123(e), Oct. 22, 1986, 100 Stat. 2475, as amended by Pub. L. 100–647, title I, § 1011A(c)(11), (12), Nov. 10, 1988, 102 Stat. 3476, provided that: “(1) In general.—Except as otherwise provided in this subsection, the

made by subsection (c) [amending section 403 of this title] shall apply to years beginning after

December 31, 1988, but only with respect to distributions from contracts described in section 403(b) of the Internal Revenue Code of 1986 which are attributable to assets other than assets held as of the close of the last year beginning before

January 1, 1989. “(3) Exception where distribution commences.—The

made by this section shall not apply to distributions to any employee from a plan maintained by any employer if—“(A) as of

March 1, 1986, the employee separated from service with the employer, “(B) as of

March 1, 1986, the accrued benefit of the employee was in pay status pursuant to a written election providing a specific schedule for the distribution of the entire accrued benefit of the employee, and “(C) such distribution is made pursuant to such written election. “(4) Transition rule.—The

made by this section [amending this section] shall apply to loans made, renewed, renegotiated, modified, or extended after

December 31, 1986.” Pub. L. 99–514, title XI, § 1135(b), Oct. 22, 1986, 100 Stat. 2485, provided that: “The amendment made by subsection (a) [amending this section] shall apply to contributions to annuity contracts after

February 28, 1986.” Amendment by section 1826(a), (d), 1852(a)(2), (c)(1)–(4), and 1854(b)(1) of Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title. Pub. L. 99–514, title XVIII, § 1826(b)(4), Oct. 22, 1986, 100 Stat. 2850, provided that: “The

made by this section [amending this section] shall apply to any amount received or loan made after the 90th day after the date of enactment of this Act [

July 18, 1984].” Amendment by section 713(b)(1), (4), (c)(1)(A), (B) of Pub. L. 98–369 effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97–248, to which such amendment relates, see section 715 of Pub. L. 98–369, set out as a note under section 31 of this title. Pub. L. 98–369, div. A, title VII, § 713(d)(1),

July 18, 1984, 98 Stat. 957, as amended by Pub. L. 99–514, title XVIII, § 1875(c)(5), Oct. 22, 1986, 100 Stat. 2895, provided that the amendment made by section 713(d)(1) of Pub. L. 98–369 is effective with respect to contributions made in taxable years beginning after Dec. 31, 1983.

made by section 224 shall not apply to any portion of a lump-sum payment received after

December 31, 1983, if the generally applicable payment date for such portion was before

January 1, 1984. “(3) No fresh start.—For purposes of determining whether any benefit received after

December 31, 1983, is includible in gross income by reason of section 72(r) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], as added by this Act, the

made by this section to the extent such loan is repaid before

August 14, 1983. “(B) Qualified refunding loan.—For purposes of subparagraph (A), the term ‘qualified refunding loan’ means any loan made after

August 13, 1982, and before

August 14, 1983, to the extent such loan is used to make a required principal payment. “(C) Required principal payment.—For purposes of subparagraph (B), the term ‘required principal payment’ means any principal repayment on a loan made under the plan which was outstanding on

August 13, 1982, if such repayment is required to be made after

August 13, 1982, and before

August 14, 1983 or if such loan was payable on demand. “(D) Special rule for non-key employees.—In the case of a non-key employee (within the meaning of section 416(i)(2) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]), this paragraph shall be applied by substituting ‘

January 1, 1985’ for ‘

August 14, 1983’ each place it appears. “(3) Treatment of certain renegotiations.—If—“(A) the taxpayer after

August 13, 1982, and before

September 4, 1982, borrows money from a government plan (as defined in section 219(e)(4) of the Internal Revenue Code of 1986), “(B) under the applicable State law, such loan requires the renegotiation of all outstanding prior loans made to the taxpayer under such plan, and “(C) the renegotiation described in subparagraph (B) does not change the interest rate on, or extend the duration of, any such outstanding prior loan, then the renegotiation described in subparagraph (B) shall not be treated as a renegotiation, extension, renewal, or revision for purposes of paragraph (1). If the renegotiation described in subparagraph (B) does not meet the requirements of subparagraph (C) solely because it extends the duration of any such outstanding prior loan, the requirements of subparagraph (C) shall be treated as met with respect to such renegotiation if, before

April 1, 1983, such extension is eliminated.” Pub. L. 97–248, title II, § 265(c), Sept. 3, 1982, 96 Stat. 547, provided that: “(1) Subsection (a).—The

For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. Pub. L. 94–455, title XIX, § 1951(b)(1)(B), Oct. 4, 1976, 90 Stat. 1836, provided that: “Notwithstanding subparagraph (A) [repealing subsec. (i) of this section], if the provisions of section 72(i) applied to amounts received in taxable years beginning before

January 1, 1977, under an annuity contract, then amounts received under such contract on or after such date shall be treated as if such provisions were not repealed.” Special Rules for Use of Retirement Funds Pub. L. 116–136, div. A, title II, § 2202, Mar. 27, 2020, 134 Stat. 340, as amended by Pub. L. 116–260, div. N, title II, § 280(a), Dec. 27, 2020, 134 Stat. 1982; Pub. L. 117–328, div. T, title V, § 501(c)(2)(A), Dec. 29, 2022, 136 Stat. 5389, provided that: “(a) Tax-favored Withdrawals From Retirement Plans.—“(1) In general.—section 72(t) of the Internal Revenue Code of 1986 shall not apply to any coronavirus-related distribution. “(2) Aggregate dollar limitation.—“(A) In general.—For purposes of this subsection, the aggregate amount of distributions received by an individual which may be treated as coronavirus-related distributions for any taxable year shall not exceed $100,000. “(B) Treatment of plan distributions.—If a distribution to an individual would (without regard to subparagraph (A)) be a coronavirus-related distribution, a plan shall not be treated as violating any requirement of the Internal Revenue Code of 1986 merely because the plan treats such distribution as a coronavirus-related distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $100,000. “(C) Controlled group.—For purposes of subparagraph (B), the term ‘controlled group’ means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986. “(3) Amount distributed may be repaid.—“(A) In general.—Any individual who receives a coronavirus-related distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make 1 or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of the Internal Revenue Code of 1986, as the case may be. “(B) Treatment of repayments of distributions from eligible retirement plans other than iras.—For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a coronavirus-related distribution from an eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received the coronavirus-related distribution in an eligible rollover distribution (as defined in section 402(c)(4) of such Code) and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution. “(C) Treatment of repayments of distributions from iras.—For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a coronavirus-related distribution from an individual retirement plan (as defined by section 7701(a)(37) of such Code), then, to the extent of the amount of the contribution, the coronavirus-related distribution shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution. “(4) Definitions.—For purposes of this subsection—“(A) Coronavirus-related distribution.—Except as provided in paragraph (2), the term ‘coronavirus-related distribution’ means any distribution from an eligible retirement plan made—“(i) on or after

January 1, 2020, and before

December 31, 2020, “(ii) to an individual— “(I) who is diagnosed with the virus SARS–CoV–2 or with coronavirus disease 2019 (COVID–19) by a test approved by the Centers for Disease Control and Prevention, “(II) whose spouse or dependent (as defined in section 152 of the Internal Revenue Code of 1986) is diagnosed with such virus or disease by such a test, or “(III) who experiences adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to such virus or disease, being unable to work due to lack of child care due to such virus or disease, closing or reducing hours of a business owned or operated by the individual due to such virus or disease, or other factors as determined by the Secretary of the Treasury (or the Secretary’s delegate). “(B) Employee certification.—The administrator of an eligible retirement plan may rely on an employee’s certification that the employee satisfies the conditions of subparagraph (A)(ii) in determining whether any distribution is a coronavirus-related distribution. “(C) Eligible retirement plan.—The term ‘eligible retirement plan’ has the meaning given such term by section 402(c)(8)(B) of the Internal Revenue Code of 1986. “(5) Income inclusion spread over 3-year period.—“(A) In general.—In the case of any coronavirus-related distribution, unless the taxpayer elects not to have this paragraph apply for any taxable year, any amount required to be included in gross income for such taxable year shall be so included ratably over the 3-taxable-year period beginning with such taxable year. “(B) Special rule.—For purposes of subparagraph (A), rules similar to the rules of subparagraph (E) of section 408A(d)(3) of the Internal Revenue Code of 1986 shall apply. “(6) Special rules.—“(A) Exemption of distributions from trustee to trustee transfer and withholding rules.—For purposes of section 401(a)(31), 402(f), and 3405 of the Internal Revenue Code of 1986, coronavirus-related distributions shall not be treated as eligible rollover distributions. “(B) Coronavirus-related distributions treated as meeting plan distribution requirements.—For purposes of the Internal Revenue Code of 1986, a coronavirus-related distribution shall be treated as meeting the requirements of section 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A) of such Code and section 8433(h)(1) of title 5, United States Code, and, in the case of a money purchase pension plan, a coronavirus-related distribution which is an in-service withdrawal shall be treated as meeting the distribution rules of section 401(a) of the Internal Revenue Code of 1986. “(b) Loans From Qualified Plans.—“(1) Increase in limit on loans not treated as distributions.—In the case of any loan from a qualified employer plan (as defined under section 72(p)(4) of the Internal Revenue Code of 1986) to a qualified individual made during the 180-day period beginning on the date of the enactment of this Act [Mar. 27, 2020]—“(A) clause (i) of section 72(p)(2)(A) of such Code shall be applied by substituting ‘$100,000’ for ‘$50,000’, and “(B) clause (ii) of such section shall be applied by substituting ‘the present value of the nonforfeitable accrued benefit of the employee under the plan’ for ‘one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan’. “(2) Delay of repayment.—In the case of a qualified individual with an outstanding loan (on or after the date of the enactment of this Act) from a qualified employer plan (as defined in section 72(p)(4) of the Internal Revenue Code of 1986)—“(A) if the due date pursuant to subparagraph (B) or (C) of section 72(p)(2) of such Code for any repayment with respect to such loan occurs during the period beginning on the date of the enactment of this Act and ending on

December 31, 2020, such due date shall be delayed for 1 year, “(B) any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under subparagraph (A) and any interest accruing during such delay, and “(C) in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of section 72(p)(2) of such Code, the period described in subparagraph (A) of this paragraph shall be disregarded. “(3) Qualified individual.—For purposes of this subsection, the term ‘qualified individual’ means any individual who is described in subsection (a)(4)(A)(ii). “(c) Provisions Relating to Plan