Title 26, Internal Revenue CodeRelease 119-110

§4953 Tax on Excess Contributions to Black Lung Benefit Trusts

Title 26 › Subtitle D — Miscellaneous Excise Taxes › CHAPTER 42 — PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS › Subchapter B — Black Lung Benefit Trusts › § 4953

Last updated Sep 22, 2026|Official source

Summary

A 5% tax must be paid each year on any extra money a person puts into a trust that qualifies under section 501(c)(21) (a black lung benefit trust). The person who made the extra contribution must pay that tax. An "excess contribution" is the part of a current-year contribution that is more than the deduction allowed under section 192, plus any leftover excess from the prior year, reduced by any shortfall between the year's maximum deduction and actual contributions and by any repayments this year that were last year’s excess. Repayments up to the excess amount are not treated as self‑dealing, taxable spending, or a violation of the trust’s tax-exempt purpose.

Full Legal Text

Title 26, §4953

Internal Revenue Code, Source: USLM XML via OLRC

(a)Tax imposed

There is hereby imposed for each taxable year a tax in an amount equal to 5 percent of the amount of the excess contributions made by a person to or under a trust or trusts described in section 501(c)(21). The tax imposed by this subsection shall be paid by the person making the excess contribution.

(b)Excess contribution

For purposes of this section, the term “excess contribution” means the sum of— (1)

(2)the amount determined under this subsection for the preceding taxable year, reduced by the sum of—

(A)the excess of the maximum amount allowable as a deduction under section 192 for the taxable year over the amount contributed to the trust or trusts for the taxable year, and

(B)amounts distributed from the trust to the contributor which were excess contributions for the preceding taxable year.

(c)Treatment of withdrawal of excess contributions

Amounts distributed during the taxable year from a trust described in section 501(c)(21) to the contributor thereof the sum of which does not exceed the amount of the excess contribution made by the contributor shall not be treated as—

(1)an act of self-dealing (within the meaning of section 4951),

(2)a taxable expenditure (within the meaning of section 4952), or

(3)an act contrary to the purposes for which the trust is exempt from taxation under section 501(a).

Reference

Citations & Metadata

Citation

26 U.S.C. § 4953

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110