Internal Revenue Code · 26 U.S.C.
§ 408. Individual retirement accounts
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 408
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- September 2, 1974 by Pub. L. 93–406
- Last amended
- December 29, 2022 by Pub. L. 117–328
- Amendments
- 33 dated changes in the source credit
- Length
- 18 subsections · 11,923 words · about 52 min to read
- Defines
- 37 terms
- Cross-references
- cites 34; cited by 47 Code sections and 76 other regulations
- Regulations
- 11 issued under this section
Except as otherwise provided in this subsection, any amount paid or distributed out of an individual retirement plan shall be included in gross income by the payee or distributee, as the case may be, in the manner provided under section 72.
This paragraph does not apply to any amount described in subparagraph (A)(i) received by an individual from an individual retirement account or individual retirement annuity if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in that subparagraph from an individual retirement account or an individual retirement annuity which was not includible in his gross income because of the application of this paragraph.
If any amount paid or distributed out of an individual retirement account or individual retirement annuity would meet the requirements of subparagraph (A) but for the fact that the entire amount was not paid into an eligible plan as required by clause (i) or (ii) of subparagraph (A), such amount shall be treated as meeting the requirements of subparagraph (A) to the extent it is paid into an eligible plan referred to in such clause not later than the 60th day referred to in such clause.
For purposes of clause (i), the term “eligible plan” means any account, annuity, contract, or plan referred to in subparagraph (A).
For purposes of this paragraph, rules similar to the rules of section 402(c)(7) (relating to frozen deposits) shall apply.
In the case of any payment or distribution out of a simple retirement account (as defined in subsection (p)) to which section 72(t)(6)(A) applies, this paragraph shall not apply unless such payment or distribution is paid into another simple retirement account.
The Secretary may waive the 60-day requirement under subparagraphs (A) and (D) where the failure to waive such requirement would be against equity or good conscience, including casualty, disaster, or other events beyond the reasonable control of the individual subject to such requirement.
The transfer of an individual’s interest in an individual retirement account or an individual retirement annuity to his spouse or former spouse under a divorce or separation instrument described in clause (i) of section 121(d)(3)(C) is not to be considered a taxable transfer made by such individual notwithstanding any other provision of this subtitle, and such interest at the time of the transfer is to be treated as an individual retirement account of such spouse, and not of such individual. Thereafter such account or annuity for purposes of this subtitle is to be treated as maintained for the benefit of such spouse.
Notwithstanding any other provision of this subsection or section 72(t), paragraph (1) and section 72(t)(1) shall apply to the transfer or distribution from a simplified employee pension of any contribution under a salary reduction arrangement described in subsection (k)(6) (or any income allocable thereto) before a determination as to whether the requirements of subsection (k)(6)(A)(iii) are met with respect to such contribution.
For purposes of paragraphs (4) and (5) and section 4973, any amount excludable or excluded from gross income under section 402(h) or 402(k) shall be treated as an amount allowable or allowed as a deduction under section 219.
For purposes of this paragraph, a distribution to an organization described in subparagraph (B)(i) shall be treated as a qualified charitable distribution only if a deduction for the entire distribution would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph).
Notwithstanding section 72, in determining the extent to which a distribution is a qualified charitable distribution, the entire amount of the distribution shall be treated as includible in gross income without regard to subparagraph (A) to the extent that such amount does not exceed the aggregate amount which would have been so includible if all amounts in all individual retirement plans of the individual were distributed during such taxable year and all such plans were treated as 1 contract for purposes of determining under section 72 the aggregate amount which would have been so includible. Proper adjustments shall be made in applying section 72 to other distributions in such taxable year and subsequent taxable years.
Qualified charitable distributions which are not includible in gross income pursuant to subparagraph (A) shall not be taken into account in determining the deduction under section 170.
Notwithstanding section 664(b), distributions made from a trust described in subclause (I) or (II) of clause (ii) shall be treated as ordinary income in the hands of the beneficiary to whom the annuity described in section 664(d)(1)(A) or the payment described in section 664(d)(2)(A) is paid.
Qualified charitable distributions made to fund a charitable gift annuity shall not be treated as an investment in the contract for purposes of section 72(c).
If any dollar amount increased under clause (i) is not a multiple of $1,000, such dollar amount shall be rounded to the nearest multiple of $1,000.
In the case of an individual who is an eligible individual (as defined in section 223(c)) and who elects the application of this paragraph for a taxable year, gross income of the individual for the taxable year does not include a qualified HSA funding distribution to the extent such distribution is otherwise includible in gross income.
For purposes of this paragraph, the term “qualified HSA funding distribution” means a distribution from an individual retirement plan (other than a plan described in subsection (k) or (p)) of the employee to the extent that such distribution is contributed to the health savings account of the individual in a direct trustee-to-trustee transfer.
Except as provided in subclause (II), an individual may make an election under subparagraph (A) only for one qualified HSA funding distribution during the lifetime of the individual. Such an election, once made, shall be irrevocable.
If a qualified HSA funding distribution is made during a month in a taxable year during which an individual has self-only coverage under a high deductible health plan as of the first day of the month, the individual may elect to make an additional qualified HSA funding distribution during a subsequent month in such taxable year during which the individual has family coverage under a high deductible health plan as of the first day of the subsequent month.
Subclauses (I) and (II) of clause (i) shall not apply if the individual ceased to be an eligible individual by reason of the death of the individual or the individual becoming disabled (within the meaning of section 72(m)(7)).
The term “testing period” means the period beginning with the month in which the qualified HSA funding distribution is contributed to a health savings account and ending on the last day of the 12th month following such month.
Notwithstanding section 72, in determining the extent to which an amount is treated as otherwise includible in gross income for purposes of subparagraph (A), the aggregate amount distributed from an individual retirement plan shall be treated as includible in gross income to the extent that such amount does not exceed the aggregate amount which would have been so includible if all amounts from all individual retirement plans were distributed. Proper adjustments shall be made in applying section 72 to other distributions in such taxable year and subsequent taxable years.
Any individual retirement account is exempt from taxation under this subtitle unless such account has ceased to be an individual retirement account by reason of paragraph (2) or (3). Notwithstanding the preceding sentence, any such account is subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable, etc. organizations).
In any case in which any account ceases to be an individual retirement account by reason of subparagraph (A) as of the first day of any taxable year, paragraph (1) of subsection (d) applies as if there were a distribution on such first day in an amount equal to the fair market value (on such first day) of all assets in the account (on such first day).
If during any taxable year the owner of an individual retirement annuity borrows any money under or by use of such contract, the contract ceases to be an individual retirement annuity as of the first day of such taxable year. Such owner shall include in gross income for such year an amount equal to the fair market value of such contract as of such first day.
If, during any taxable year of the individual for whose benefit an individual retirement account is established, that individual uses the account or any portion thereof as security for a loan, the portion so used is treated as distributed to that individual.
Any common trust fund or common investment fund of individual retirement account assets which is exempt from taxation under this subtitle does not cease to be exempt on account of the participation or inclusion of assets of a trust exempt from taxation under section 501(a) which is described in section 401(a).
This section shall be applied without regard to any community property laws.
For purposes of this section, a custodial account shall be treated as a trust if the assets of such account are held by a bank (as defined in subsection (n)) or another person who demonstrates, to the satisfaction of the Secretary, that the manner in which he will administer the account will be consistent with the requirements of this section, and if the custodial account would, except for the fact that it is not a trust, constitute an individual retirement account described in subsection (a). For purposes of this title, in the case of a custodial account treated as a trust by reason of the preceding sentence, the custodian of such account shall be treated as the trustee thereof.
In the case of any simplified employee pension, subsections (a)(1) and (b)(2) of this section shall be applied by increasing the amounts contained therein by the amount of the limitation in effect under section 415(c)(1)(A).
The requirements of this paragraph are met with respect to a simplified employee pension for a year if for such year the contributions made by the employer to simplified employee pensions for his employees do not discriminate in favor of any highly compensated employee (within the meaning of section 414(q)).
For purposes of subparagraph (A), there shall be excluded from consideration employees described in subparagraph (A) or (C) of section 410(b)(3).
For purposes of subparagraph (A), and except as provided in subparagraph (D), employer contributions to simplified employee pensions (other than contributions under an arrangement described in paragraph (6)) shall be considered discriminatory unless contributions thereto bear a uniform relationship to the compensation (not in excess of the first $200,000) of each employee maintaining a simplified employee pension.
For purposes of subparagraph (C), the rules of section 401(l)(2) shall apply to contributions to simplified employee pensions (other than contributions under an arrangement described in paragraph (6)).
Clause (i) shall not apply to a simplified employee pension unless an election described in clause (i)(I) is made or is in effect with respect to not less than 50 percent of the employees of the employer eligible to participate.
Clause (i) shall not apply to a simplified employee pension unless the requirements of section 401(a)(30) are met.
This paragraph shall not apply with respect to any year in the case of a simplified employee pension maintained by an employer with more than 25 employees who were eligible to participate (or would have been required to be eligible to participate if a pension was maintained) at any time during the preceding year.
Rules similar to the rules of section 401(k)(8) shall apply to any excess contribution under this paragraph. Any excess contribution under a simplified employee pension shall be treated as an excess contribution for purposes of section 4979.
For purposes of clause (i), the term “excess contribution” means, with respect to a highly compensated employee, the excess of elective employer contributions under this paragraph over the maximum amount of such contributions allowable under subparagraph (A)(iii).
For purposes of this paragraph, the term “highly compensated employee” has the meaning given such term by section 414(q).
This paragraph shall not apply to years beginning after December 31, 1996. The preceding sentence shall not apply to a simplified employee pension of an employer if the terms of simplified employee pensions of such employer, as in effect on December 31, 1996, provide that an employee may make the election described in subparagraph (A).
An individual retirement plan which is designated as a Roth IRA shall not be treated as a simplified employee pension under this subsection unless the employee elects for such plan to be so treated (at such time and in such manner as the Secretary may provide).
The terms “employee”, “employer”, and “owner-employee” shall have the respective meanings given such terms by section 401(c).
Except as provided in paragraph (2)(C), the term “compensation” has the meaning given such term by section 414(s).
The Secretary shall adjust the $450 amount in paragraph (2)(C) at the same time and in the same manner as under section 415(d) and shall adjust the $200,000 amount in paragraphs (3)(C) and (6)(D)(ii) at the same time, and by the same amount, as any adjustment under section 401(a)(17)(B); except that any increase in the $450 amount which is not a multiple of $50 shall be rounded to the next lowest multiple of $50.
An employer who makes a contribution on behalf of an employee to a simplified employee pension shall provide such simplified reports with respect to such contributions as the Secretary may require by regulations. The reports required by this subsection shall be filed at such time and in such manner, and information with respect to such contributions shall be furnished to the employee at such time and in such manner, as may be required by regulations.
The employer shall notify each employee immediately before the period for which an election described in subsection (p)(5)(C) may be made of the employee’s opportunity to make such election. Such notice shall include a copy of the description described in subparagraph (B).
The acquisition by an individual retirement account or by an individually-directed account under a plan described in section 401(a) of any collectible shall be treated (for purposes of this section and section 402) as a distribution from such account in an amount equal to the cost to such account of such collectible.
Subject to the provisions of this subsection, designated nondeductible contributions may be made on behalf of an individual to an individual retirement plan.
The amount of the designated nondeductible contributions made on behalf of any individual for any taxable year shall not exceed the nondeductible limit for such taxable year.
If a taxpayer elects not to deduct an amount which (without regard to this clause) is allowable as a deduction under section 219 for any taxable year, the nondeductible limit for such taxable year shall be increased by such amount.
For purposes of this paragraph, the term “designated nondeductible contribution” means any contribution to an individual retirement plan for the taxable year which is designated (in such manner as the Secretary may prescribe) as a contribution for which a deduction is not allowable under section 219.
Any designation under clause (i) shall be made on the return of tax imposed by chapter 1 for the taxable year.
In determining for which taxable year a designated nondeductible contribution is made, the rule of section 219(f)(3) shall apply.
For penalty where individual reports designated nondeductible contributions not made, see section 6693(b).
An employer shall be treated as meeting the requirements of subparagraph (A)(iii) for any year if, in lieu of the contributions described in such clause, the employer elects to make nonelective contributions of 2 percent of compensation for each employee who is eligible to participate in the arrangement and who has at least $5,000 of compensation from the employer for the year. If an employer makes an election under this subparagraph for any year, the employer shall notify employees of such election within a reasonable period of time before the 60-day period for such year under paragraph (5)(C).
The compensation taken into account under clause (i) for any year shall not exceed the limitation in effect for such year under section 401(a)(17).
In the case of an employer which had more than 25 employees who received at least $5,000 of compensation from the employer for the preceding year, and which makes the election under subparagraph (E)(i)(II) for any year, clause (i) shall be applied for such year by substituting “3 percent” for “2 percent”.
The term “eligible employer” means, with respect to any year, an employer which had no more than 100 employees who received at least $5,000 of compensation from the employer for the preceding year.
An eligible employer who establishes and maintains a plan under this subsection for 1 or more years and who fails to be an eligible employer for any subsequent year shall be treated as an eligible employer for the 2 years following the last year the employer was an eligible employer. If such failure is due to any acquisition, disposition, or similar transaction involving an eligible employer, the preceding sentence shall not apply.
Except as provided in subclause (IV), the term “applicable percentage” means 3 percent.
An employer may elect to apply a lower percentage (not less than 1 percent) for any year for all employees eligible to participate in the plan for such year if the employer notifies the employees of such lower percentage within a reasonable period of time before the 60-day election period for such year under paragraph (5)(C). An employer may not elect a lower percentage under this subclause for any year if that election would result in the applicable percentage being lower than the applicable percentage in more than 2 of the years in the 5-year period ending with such year.
If any year in the 5-year period described in subclause (II) is a year prior to the first year for which any qualified salary reduction arrangement is in effect with respect to the employer (or any predecessor), the employer shall be treated as if the level of the employer matching contribution was at the applicable percentage of compensation for such prior year.
In the case of an employer which had more than 25 employees who received at least $5,000 of compensation from the employer for the preceding year, and which makes the election under subparagraph (E)(i)(II) for any year, subclause (I) shall be applied for such year by substituting “4 percent” for “3 percent”.
An arrangement shall not be treated as a qualified salary reduction arrangement for any year if the employer (or any predecessor employer) maintained a qualified plan with respect to which contributions were made, or benefits were accrued, for service in any year in the period beginning with the year such arrangement became effective and ending with the year for which the determination is being made. If only individuals other than employees described in subparagraph (A) of section 410(b)(3) are eligible to participate in such arrangement, then the preceding sentence shall be applied without regard to any qualified plan in which only employees so described are eligible to participate.
For purposes of this subparagraph, the term “qualified plan” means a plan, contract, pension, or trust described in subparagraph (A) or (B) of section 219(g)(5).
For purposes of clause (i), the adjusted dollar amount is an amount equal to 110 percent of the dollar amount in effect under clause (i)(III) for calendar year 2024.
In the case of a year beginning after December 31, 2005, the Secretary shall adjust the $10,000 amount under clause (i)(III) at the same time and in the same manner as under section 415(d), except that the base period taken into account shall be the calendar quarter beginning July 1, 2004, and any increase under this subparagraph which is not a multiple of $500 shall be rounded to the next lower multiple of $500.
In the case of a year beginning after December 31, 2024, the Secretary shall adjust annually the adjusted dollar amount under clause (ii) in the manner provided under subclause (I) of this clause, except that the base period taken into account shall be the calendar quarter beginning July 1, 2023.
An eligible employer is described in this clause only if, during the 3-taxable-year period immediately preceding the 1st year the employer maintains the qualified salary reduction arrangement under this paragraph, neither the employer nor any member of any controlled group including the employer (or any predecessor of either) established or maintained any plan described in clause (i), (ii), or (iv) of section 219(g)(5)(A) with respect to which contributions were made, or benefits were accrued, for substantially the same employees as are eligible to participate in such qualified salary reduction arrangement.
The term “qualified student loan payment” means a payment made by an employee in repayment of a qualified education loan (as defined in section 221(d)(1)) incurred by the employee to pay qualified higher education expenses, but only if the employee certifies to the employer making the matching contribution that such payment has been made on such a loan.
The term “qualified higher education expenses” has the same meaning as when used in section 401(m)(4)(D).
An eligible employer which had not more than 25 employees who received at least $5,000 of compensation from the employer for 1 or more years, and which has more than 25 such employees for any subsequent year, shall be treated for purposes of subparagraph (E)(i) as having 25 such employees for the 2 years following the last year the employer had not more than 25 such employees, and not as having made the election under subparagraph (E)(i)(II) for such 2 years. Rules similar to the second sentence of subparagraph (C)(i)(II) shall apply for purposes of this subparagraph.
The requirements of this paragraph are met with respect to a simple retirement account if the employee’s rights to any contribution to the simple retirement account are nonforfeitable. For purposes of this paragraph, rules similar to the rules of subsection (k)(4) shall apply.
An employer may elect to exclude from the requirement under subparagraph (A) employees described in section 410(b)(3).
The term “compensation” means amounts described in paragraphs (3) and (8) of section 6051(a). For purposes of the preceding sentence, amounts described in section 6051(a)(3) shall be determined without regard to section 3401(a)(3).
In the case of an employee described in subparagraph (B), the term “compensation” means net earnings from self-employment determined under section 1402(a) without regard to any contribution under this subsection. The preceding sentence shall be applied as if the term “trade or business” for purposes of section 1402 included service described in section 1402(c)(6).
A plan shall not be treated as failing to satisfy the requirements of this subsection or any other provision of this title merely because the employer makes all contributions to the individual retirement accounts or annuities of a designated trustee or issuer. The preceding sentence shall not apply unless each plan participant is notified in writing (either separately or as part of the notice under subsection (l)(2)(C)) that the participant’s balance may be transferred without cost or penalty to another individual account or annuity in accordance with subsection (d)(3)(G).
Any matching contribution described in paragraph (2)(A)(iii) which is made on behalf of a self-employed individual (as defined in section 401(c)) shall not be treated as an elective employer contribution to a simple retirement account for purposes of this title.
For purposes of this paragraph, the term “transition period” means the period beginning on the date of any transaction described in subparagraph (A) and ending on the last day of the second calendar year following the calendar year in which such transaction occurs.
Subject to the requirements of this paragraph, an employer may elect (in such form and manner as the Secretary may prescribe) at any time during a year to terminate the qualified salary reduction arrangement under paragraph (2), but only if the employer establishes and maintains (as of the day after the termination date) a safe harbor plan to replace the terminated arrangement.
For purposes of this paragraph, the transition year is the period beginning after the termination date and ending on the last day of the calendar year during which the termination occurs.
For purposes of this paragraph, the term “safe harbor plan” means a qualified cash or deferred arrangement which meets the requirements of paragraph (11), (12), (13), or (16) of section 401(k).
An individual retirement plan which is designated as a Roth IRA shall not be treated as a simple retirement account under this subsection unless the employee elects for such plan to be so treated (at such time and in such manner as the Secretary may provide).
For purposes of this title, a qualified employer plan shall not fail to meet any requirement of this title solely by reason of establishing and maintaining a program described in paragraph (1).
The term “qualified employer plan” has the meaning given such term by section 72(p)(4)(A)(i); except that such term shall also include an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).
(Added Pub. L. 93–406, title II, § 2002(b), Sept. 2, 1974, 88 Stat. 959; amended Pub. L. 94–455, title XV, § 1501(b)(2), (5), (10), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1735–1737, 1834; Pub. L. 95–600, title I, §§ 152(a), (b), 156(c)(1), (3), 157(c)(1), (d)(1), (e)(1)(A), (g)(3), (h)(2), title VII, § 703(c)(4), Nov. 6, 1978, 92 Stat. 2797, 2802, 2803, 2805, 2806, 2808, 2939; Pub. L. 96–222, title I, § 101(a)(10)(A), (C), (F), (G), (J)(i), (14)(B), (E)(ii), Apr. 1, 1980, 94 Stat. 201–205; Pub. L. 96–605, title II, § 225(b)(3), (4), Dec. 28, 1980, 94 Stat. 3529; Pub. L. 97–34, title III, §§ 311(g)(1)(A)–(C), (2), (h)(2), 312(b)(2), (c)(5), 313(b)(2), 314(b)(1), Aug. 13, 1981, 95 Stat. 281–284, 286; Pub. L. 97–248, title II, §§ 237(e)(3), 238(d)(3), (4), 243(a), (b)(1)(A), title III, § 335(a)(1), Sept. 3, 1982, 96 Stat. 512, 513, 521, 522, 628; Pub. L. 97–448, title I, § 103(d)(1), (e), Jan. 12, 1983, 96 Stat. 2378; Pub. L. 98–369, div. A, title I, § 147(a), title IV, § 491(d)(19)–(24), title V, §§ 521(b), 522(d)(12), title VII, § 713(c)(2)(B), (f)(2), (5)(B), (g)(2), (j), July 18, 1984, 98 Stat. 687, 850, 867, 871, 957, 959, 960; Pub. L. 99–514, title XI, §§ 1102(a), (b)(2), (c), (e)(2), 1108(a), (d)–(g)(1), (4), (6), 1121(c)(2), 1122(e)(2)(B), 1123(d)(2), 1144(a), title XVIII, §§ 1852(a)(1), (5)(C), (7)(A), 1875(c)(6)(A), (8), 1898(a)(5), Oct. 22, 1986, 100 Stat. 2414–2416, 2431, 2433, 2434, 2465, 2470, 2475, 2490, 2864–2866, 2895, 2944; Pub. L. 100–647, title I, §§ 1011(b)(1)–(3), (c)(7)(C), (f)(1)–(5), (10), (i)(5), 1011A(a)(2)(A), 1018(t)(3)(D), title VI, § 6057(a), Nov. 10, 1988, 102 Stat. 3456, 3458, 3461–3463, 3468, 3472, 3588, 3698; Pub. L. 101–239, title VII, §§ 7811(m)(7), 7841(a)(1), Dec. 19, 1989, 103 Stat. 2412, 2427; Pub. L. 102–318, title V, § 521(b)(16)–(19), July 3, 1992, 106 Stat. 311; Pub. L. 103–66, title XIII, § 13212(b), Aug. 10, 1993, 107 Stat. 472; Pub. L. 103–465, title VII, § 732(d), Dec. 8, 1994, 108 Stat. 5005; Pub. L. 104–188, title I, §§ 1421(a), (b)(3)(B), (5), (6), (c), 1427(b)(3), 1431(c)(1)(B), 1455(b)(1), Aug. 20, 1996, 110 Stat. 1792, 1796–1798, 1802, 1803, 1817; Pub. L. 105–34, title III, §§ 302(d), 304(a), title XV, § 1501(b), title XVI, § 1601(d)(1)(A)–(C)(i), (D)–(G), Aug. 5, 1997, 111 Stat. 829, 831, 1058, 1087, 1088; Pub. L. 105–206, title VI, §§ 6015(a), 6016(a)(1), 6018(b), July 22, 1998, 112 Stat. 820–822; Pub. L. 106–554, § 1(a)(7) [title III, § 319(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–646; Pub. L. 107–16, title VI, §§ 601(b), 602(a), 611(c)(1), (f)(1), (2), (g)(2), 641(e)(8), 642(a), (b)(2), (3), 643(c), 644(b), June 7, 2001, 115 Stat. 95, 97, 99, 121–123; Pub. L. 107–147, title IV, § 411(i)(1), (j)(1), Mar. 9, 2002, 116 Stat. 46, 47; Pub. L. 108–311, title IV, §§ 404(d), 408(a)(12), (13), Oct. 4, 2004, 118 Stat. 1188, 1191; Pub. L. 109–280, title XII, § 1201(a), Aug. 17, 2006, 120 Stat. 1063; Pub. L. 109–432, div. A, title III, § 307(a), Dec. 20, 2006, 120 Stat. 2951; Pub. L. 110–172, § 3(a), Dec. 29, 2007, 121 Stat. 2474; Pub. L. 110–343, div. C, title II, § 205(a), Oct. 3, 2008, 122 Stat. 3865; Pub. L. 111–312, title VII, § 725(a), Dec. 17, 2010, 124 Stat. 3316; Pub. L. 112–240, title II, § 208(a), Jan. 2, 2013, 126 Stat. 2324; Pub. L. 113–295, div. A, title I, § 108(a), title II, § 221(a)(53), Dec. 19, 2014, 128 Stat. 4013, 4045; Pub. L. 114–113, div. Q, title I, § 112(a), title III, § 306(a), Dec. 18, 2015, 129 Stat. 3047, 3089; Pub. L. 115–97, title I, § 11051(b)(3)(G), Dec. 22, 2017, 131 Stat. 2090; Pub. L. 115–141, div. U, title IV, § 401(a)(75), (76), Mar. 23, 2018, 132 Stat. 1187; Pub. L. 116–94, div. O, title I, §§ 101(a)(3), 107(b), 114(c), 116(a)(1), Dec. 20, 2019, 133 Stat. 3141, 3149, 3156, 3161; Pub. L. 117–328, div. T, title I, §§ 107(d), 110(d), 116(a), (b)(1), 117(a), (c)–(f), title III, §§ 307(a), (b), 322(a), 332(a), (b)(2), title IV, § 401(b)(4), title VI, § 601(b)(3), (c)(1), Dec. 29, 2022, 136 Stat. 5289, 5292, 5298–5301, 5343, 5345, 5356, 5367, 5368, 5388, 5390.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
- applicable percentage § 408(p)(2)(C)(ii)(I)
- applicable requirement § 408(p)(10)(B)
- bank § 408(n)
- collectible § 408(m)(2)
- collectible § 408(m)(3)
- compensation § 408(k)(8)(B)
- compensation § 408(p)(6)(A)(i)
- compensation § 408(p)(6)(A)(ii)
- designated nondeductible contribution § 408(o)(2)(C)(i)
- eligible employer § 408(p)(2)(C)(i)(I)
- eligible plan § 408(d)(3)(D)(ii)
- eligible retirement plan § 408(d)(3)(A)(ii)
- employee § 408(k)(8)(A)
- employee § 408(p)(6)(B)
- employer § 408(k)(8)(A)
- excess contribution § 408(k)(6)(C)(ii)
- highly compensated employee § 408(k)(6)(G)
- individual retirement account § 408(a)
- individual retirement annuity § 408(b)
- nondeductible limit § 408(o)(2)(B)(i)
- owner-employee § 408(k)(8)(A)
- qualified charitable distribution § 408(d)(8)(B)
- qualified employer plan § 408(q)(3)(A)
- qualified higher education expenses § 408(p)(2)(F)(ii)(II)
- qualified HSA funding distribution § 408(d)(9)(B)
- qualified plan § 408(p)(2)(D)(ii)
- qualified salary reduction arrangement § 408(p)(2)(A)
- qualified student loan payment § 408(p)(2)(F)(ii)(I)
- safe harbor plan § 408(p)(11)(D)
- simple retirement account § 408(p)(1)
- simplified employee pension § 408(k)(1)
- split-interest entity § 408(d)(8)(F)(ii)
- testing period § 408(d)(9)(D)(iii)
- transition period § 408(p)(10)(C)
- voluntary employee contribution § 408(q)(3)(B)
- year § 408(k)(8)(C)
- year § 408(p)(6)(C)
Regulations under this section
Treasury regulations (26 CFR) issued under § 408
- § 1.408-1 General rules.
- § 1.408-2 Individual retirement accounts.
- § 1.408-3 Individual retirement annuities.
- § 1.408-4 Treatment of distributions from individual retirement arrangements.
- § 1.408-5 Annual reports by trustees or issuers.
- § 1.408-6 Disclosure statements for individual retirement arrangements.
- § 1.408-7 Reports on distributions from individual retirement plans.
- § 1.408-8 Distribution requirements for individual retirement plans.
- § 1.408-11 Net income calculation for returned or recharacterized IRA contributions.
- § 1.408(q)-1 Deemed IRAs in qualified employer plans.
- § 11.408(a)(2)-1 Trustee of individual retirement accounts.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 34 other sections
- § 402(c) Taxability of beneficiary of employees’ trust
- § 219(b)(1)(A) Retirement savings
- § 401(a)(9) Qualified pension, profit-sharing, and stock bonus plans
- § 72 Annuities; certain proceeds of endowment and life insurance contracts
- § 61 Gross income defined
- § 415(c)(1)(A) Limitations on benefits and contribution under qualified plans
- § 121(d)(3)(C) Exclusion of gain from sale of principal residence
- § 4973 Tax on excess contributions to certain tax-favored accounts and annuities
- § 170(b)(1)(A) Charitable, etc., contributions and gifts
- § 509(a)(3) Private foundation defined
- § 4966(d)(2) Taxes on taxable distributions
- § 664(d)(1) Charitable remainder trusts
- § 501(m)(5) Exemption from tax on corporations, certain trusts, etc.
- § 1(f)(3) Tax imposed
- § 223(c) Health savings accounts
- § 511 Imposition of tax on unrelated business income of charitable, etc., organizations
- § 4975 Tax on prohibited transactions
- § 416 Special rules for top-heavy plans
- § 414(q)(4) Definitions and special rules
- § 410(b)(3) Minimum participation standards
- § 4979 Tax on certain excess contributions
- § 581 Definition of bank
- § 6693(b) Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions
- § 131 Certain foster care payments
Show 10 more
- § 7701(a)(37) Definitions
- § 221(d)(1) Interest on education loans
- § 404(m)(2)(B) Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan
- § 6051(a) Receipts for employees
- § 3401(a)(3) Definitions
- § 1402(a) Definitions
- § 408A Roth IRAs
- § 457(b) Deferred compensation plans of State and local governments and tax-exempt organizations
- § 411(c)(2)(C) Minimum vesting standards
- § 4974 Excise tax on certain accumulations in qualified retirement plans
Cited by 47 Code sections
- § 1(h)(5)(A) Tax imposed
- § 26(b)(2)(S) Limitation based on tax liability; definition of tax liability
- § 45D(d)(2)(A)(iv) New markets tax credit
- § 45E(c)(1) Small employer pension plan startup costs
- § 45T(c) Auto-enrollment option for retirement savings options provided by small employers
- § 45AA(c) Military spouse retirement plan eligibility credit for small employers
- § 72(m)(6) Annuities; certain proceeds of endowment and life insurance contracts
- § 219(b)(4) Retirement savings
- § 220(d)(1)(B) Archer MSAs
- § 223(b)(4)(C) Health savings accounts
- § 280G(b)(6)(C) Golden parachute payments
- § 401(a)(9)(C)(ii)(II) Qualified pension, profit-sharing, and stock bonus plans
- § 402(c)(5) Taxability of beneficiary of employees’ trust
- § 403(b)(1)(E) Taxation of employee annuities
- § 408A(c)(4) Roth IRAs
- § 411(a)(11)(D) Minimum vesting standards
- § 413(c)(2) Collectively bargained plans, etc.
- § 414(b)(1) Definitions and special rules
- § 415(a)(2)(C) Limitations on benefits and contribution under qualified plans
- § 416(g)(4)(G) Special rules for top-heavy plans
- § 529(b)(1)(B) Qualified tuition programs
- § 529A(b)(2)(B)(ii)(II) Qualified ABLE programs
- § 530(b)(1)(B) Coverdell education savings accounts
- § 530A(a) Trump accounts
Show 23 more
- § 818(a)(5) Other definitions and special rules
- § 877A(e)(2) Tax responsibilities of expatriation
- § 1361(c)(2)(A)(vi) S corporation defined
- § 1397C(b)(7) Enterprise zone business defined
- § 3121(a)(5)(C) Definitions
- § 3306(b)(5)(C) Definitions
- § 3401(a)(12)(D) Definitions
- § 4972(c)(6)(B) Tax on nondeductible contributions to qualified employer plans
- § 4973(a)(1) Tax on excess contributions to certain tax-favored accounts and annuities
- § 4974(c)(4) Excise tax on certain accumulations in qualified retirement plans
- § 4975(c)(3) Tax on prohibited transactions
- § 4979(c) Tax on certain excess contributions
- § 6012(b)(6) Persons required to make returns of income
- § 6047(c) Information relating to certain trusts and annuity plans
- § 6104(a)(1)(B)(i) Publicity of information required from certain exempt organizations and certain trusts
- § 6332(c) Surrender of property subject to levy
- § 6343(f)(2)(B) Authority to release levy and return property
- § 6433(d)(2)(C)(ii) Saver’s Match
- § 6693(a)(2)(A) Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions
- § 6724(d)(1)(C)(i) Waiver; definitions and special rules
- § 7508A(e)(4)(B) Authority to postpone certain deadlines by reason of Federally declared disaster, significant fire, or terroristic or military actions
- § 7528(b)(2)(C)(ii) Internal Revenue Service user fees
- § 7701(a)(37)(A) Definitions
Cited in 76 regulations not issued under it
- § 1.1(h)-1 Capital gains look-through rule for sales or exchanges of interests in a partnership, S corporation, or trust.
- § 1.45D-1 New markets tax credit.
- § 1.50A-1 Determination of amount.
- § 1.62-1T Adjusted gross income (temporary).
- § 1.72-17A Special rules applicable to employee annuities and distributions under deferred compensation plans to self-employed individuals and owner-employees.
- § 1.162-31 The $500,000 deduction limitation for remuneration provided by certain health insurance providers.
- § 1.219-1 Deduction for retirement savings.
- § 1.280G-1 Golden parachute payments.
- § 1.338-1 General principles; status of old target and new target.
- § 1.401(a)-20 Requirements of qualified joint and survivor annuity and qualified preretirement survivor annuity.
- § 1.401(a)-21 Rules relating to the use of an electronic medium to provide applicable notices and to make participant elections.
- § 1.401(a)(9)-1 Minimum distribution requirement in general.
- § 1.401(a)(9)-4 Determination of the designated beneficiary.
- § 1.401(a)(31)-1 Requirement to offer direct rollover of eligible rollover distributions; questions and answers.
- § 1.401(f)-1 Certain custodial accounts and annuity contracts.
- § 1.401(k)-1 Certain cash or deferred arrangements.
- § 1.401(k)-4 SIMPLE 401(k) plan requirements.
- § 1.401(l)-1 Permitted disparity in employer-provided contributions or benefits.
- § 1.402(a)(5)-1T Rollovers of partial distributions from qualified trusts and annuities. (Temporary)
- § 1.402(c)-2 Eligible rollover distributions.
- § 1.402(g)-1 Limitation on exclusion for elective deferrals.
- § 1.403(b)-6 Timing of distributions and benefits.
- § 1.403(b)-7 Taxation of distributions and benefits.
- § 1.403(b)-10 Miscellaneous provisions.
Show 52 more
- § 1.408A-1 Roth IRAs in general.
- § 1.408A-2 Establishing Roth IRAs.
- § 1.408A-3 Contributions to Roth IRAs.
- § 1.408A-4 Converting amounts to Roth IRAs.
- § 1.408A-5 Recharacterized contributions.
- § 1.408A-6 Distributions.
- § 1.408A-8 Definitions.
- § 1.409-1 Retirement bonds.
- § 1.409A-1 Definitions and covered plans.
- § 1.409(p)-1 Prohibited allocation of securities in an S corporation.
- § 1.414(q)-1T Highly compensated employee (temporary).
- § 1.414(v)-1 Catch-up contributions.
- § 1.414(v)-2 Catch-up contributions required to be designated Roth contributions under section 414(v)(7).
- § 1.414(w)-1 Permissible withdrawals from eligible automatic contribution arrangements.
- § 1.415(a)-1 General rules with respect to limitations on benefits and contributions under qualified plans.
- § 1.415(c)-1 Limitations for defined contribution plans.
- § 1.415(c)-2 Compensation.
- § 1.415(g)-1 Disqualification of plans and trusts.
- § 1.416-1 Questions and answers on top-heavy plans.
- § 1.441-3 Taxable year of a personal service corporation.
- § 1.457-4 Annual deferrals, deferral limitations, and deferral agreements under eligible plans.
- § 1.457-8 Funding rules for eligible plans.
- § 1.457-10 Miscellaneous provisions.
- § 1.513-1 Definition of unrelated trade or business.
- § 1.529A-2 Qualified ABLE program.
- § 1.530A-1T Trump accounts; general requirements; establishment of an initial Trump account; auto enrollment and auto accounts.
- § 1.1014-10 Basis of property acquired from a decedent must be consistent with property's Federal estate tax value.
- § 1.1361-1 S corporation defined.
- § 1.1411-3 Application to estates and trusts.
- § 1.1441-1 Requirement for the deduction and withholding of tax on payments to foreign persons.
- § 1.6035-1 Basis information to persons acquiring property from decedent.
- § 1.6050I-1 Returns relating to cash in excess of $10,000 received in a trade or business.
- § 20.2039-5 Annuities under individual retirement plans.
- § 20.2056A-4 Procedures for conforming marital trusts and nontrust marital transfers to the requirements of a qualified domestic trust.
- § 20.2056A-5 Imposition of section 2056A estate tax.
- § 31.3401(a)(12)-1 Payments from or to certain tax-exempt trusts, or under or to certain annuity plans or bond purchase plans, or to individual retirement plans.
- § 35.3405-1T Questions and answers relating to withholding on pensions, annuities, and certain other deferred income (temporary regulations).
- § 53.4960-3 Determination of whether there is a parachute payment.
- § 53.4965-2 Covered tax-exempt entities.
- § 54.4974-1 Excise tax on accumulations in qualified retirement plans.
- § 54.4979-1 Excise tax on certain excess contributions and excess aggregate contributions.
- § 301.6058-1 Information required in connection with certain plans of deferred compensation.
- § 301.6104(a)-2 Public inspection of material relating to pension and other plans.
- § 301.6104(a)-3 Public inspection of Internal Revenue Service letters and documents relating to pension and other plans.
- § 301.6111-1T Questions and answers relating to tax shelter registration.
- § 301.6652-3 Failure to file information with respect to employee retirement benefit plan.
- § 301.6693-1 Penalty for failure to provide reports and documents concerning individual retirement accounts or annuities.
- § 301.6721-1 Failure to file correct information returns.
- § 301.6722-1 Failure to furnish correct payee statements.
- § 301.7508A-1 Postponement of certain tax-related deadlines by reasons of a federally declared disaster or terroristic or military action.
- § 301.7701-7 Trusts—domestic and foreign.
- § 601.702 Publication, public inspection, and specific requests for records.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 117–328Parts changed in 2022: (b) (d)(3)(G) (d)(8)(F) (d)(8)(G) (e)(2)(A)(iii) (k)(7) (o)(5)(A) (p)(2)(A) (p)(2)(A)(iv) (p)(2)(A)(v) (p)(2)(B)(iii) (p)(2)(C)(ii)(I) (p)(2)(C)(ii)(II) (p)(2)(C)(ii)(IV) (p)(2)(E)(i) (p)(2)(E)(iv) (p)(2)(F) (p)(2)(G) (p)(2)(H) (p)(8) (p)(11) (p)(12)
- Amended by Pub. L. 116–94Parts changed in 2019: (b) (c)(3) (d)(8)(A) (o)(5)
- Amended by Pub. L. 115–141Parts changed in 2018: (a)(1) (m)(3)(B)
- Amended by Pub. L. 115–97Parts changed in 2017: (d)(6)
- Amended by Pub. L. 114–113Parts changed in 2015: (d)(8)(F) (p)(1)(B)
- Amended by Pub. L. 113–295Parts changed in 2014: (d)(8)(F) (p)(2)(E)(i)
- Amended by Pub. L. 112–240Parts changed in 2013: (d)(8)(F)
- Amended by Pub. L. 111–312Parts changed in 2010: (d)(8)(F)
- Amended by Pub. L. 110–343Parts changed in 2008: (d)(8)(F)
- Amended by Pub. L. 110–172Parts changed in 2007: (d)(8)(D)
- Amended by Pub. L. 109–432Parts changed in 2006: (d)(8) (d)(9)
- Amended by Pub. L. 109–280
- Amended by Pub. L. 108–311Parts changed in 2004: (a)(1) (n)(2) (p)(6)(A)(i)
- Amended by Pub. L. 107–147Parts changed in 2002: (k)(2)(C) (k)(8) (q)(3)(A)
- Amended by Pub. L. 107–16Parts changed in 2001: (a)(1) (b) (b)(2)(B) (d)(3)(A) (d)(3)(D)(i) (d)(3)(G) (d)(3)(H) (d)(3)(I) (j) (k)(3)(C) (p)(2)(A)(ii) (p)(2)(E) (p)(6)(A)(ii) (p)(8) (q)
- Amended by Pub. L. 106–554Parts changed in 2000: (d)(5)
- Amended by Pub. L. 105–206Parts changed in 1998: (d)(7) (d)(7)(B) (p)(2)(C)(i)(II) (p)(2)(D)(i) (p)(2)(D)(iii) (p)(8) (p)(10)
- Amended by Pub. L. 105–34Parts changed in 1997: (i) (k)(6)(H) (l)(2)(B) (m)(3) (p)(2)(D)(i) (p)(2)(D)(iii) (p)(5) (p)(8)
- Amended by Pub. L. 104–188Parts changed in 1996: (d)(3)(G) (d)(5)(A) (i) (k)(2)(C) (k)(6)(H) (l) (p)
- Amended by Pub. L. 103–465Parts changed in 1994: (k)(8)
- Amended by Pub. L. 103–66Parts changed in 1993: (k)(3)(C) (k)(8)
- Amended by Pub. L. 102–318Parts changed in 1992: (a)(1) (d)(3)(A)(ii) (d)(3)(B) (d)(3)(F)
- Amended by Pub. L. 101–239Parts changed in 1989: (a)(6) (d)(6)
- Amended by Pub. L. 100–647Parts changed in 1988: (d)(2)(C) (d)(3)(A) (d)(3)(E) (d)(4) (d)(5) (d)(7) (k)(3)(B) (k)(3)(C) (k)(6)(A) (k)(6)(A)(iv) (k)(6)(B) (k)(6)(D)(ii) (k)(6)(F) (k)(7)(B) (k)(8) (m)(3) (o)(4)(B)(iv)
- Amended by Pub. L. 99–514Parts changed in 1986: (a)(6) (c)(1) (d)(1) (d)(2) (d)(3)(A) (d)(3)(A)(ii) (d)(3)(E) (d)(3)(F) (d)(5) (d)(5)(A) (f) (i) (k)(2) (k)(2)(A) (k)(3)(A) (k)(3)(C) (k)(3)(D) (k)(6) (k)(7)(C) (k)(8) (k)(9) (m)(3) (o)
- Amended by Pub. L. 98–369Parts changed in 1984: (a)(1) (a)(6) (a)(7) (b)(3) (b)(4) (d)(3)(A)(i) (d)(3)(A)(ii) (d)(3)(B) (d)(3)(C) (d)(3)(D)(ii) (d)(6) (h) (i) (k)(1) (k)(3)(C) (k)(3)(D) (k)(3)(E)
- Amended by Pub. L. 97–448Parts changed in 1983: (j) (k)(3)(C)(ii) (m)
- Amended by Pub. L. 97–248Parts changed in 1982: (a)(2) (a)(7) (b)(4) (d)(3)(C) (j) (k)(1) (k)(3)(C) (k)(6) (n)
- Amended by Pub. L. 97–34Parts changed in 1981: (a)(1) (b) (d)(4) (d)(5)(A) (j) (k)(3)(C) (m)
- Amended by Pub. L. 96–605Parts changed in 1980: (a)(1) (d)(5) (j)(3) (k) (k)(2)
- Amended by Pub. L. 96–222
- Amended by Pub. L. 95–600Parts changed in 1978: (a)(1) (b)(2) (d)(3)(A)(iii) (d)(3)(B) (d)(4) (d)(5) (j)
- Amended by Pub. L. 94–455Parts changed in 1976: (a)(2) (c)(2) (d)(1) (d)(4) (h)
- Added by Pub. L. 93–406
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter D Deferred Compensation, Etc.
- Part I PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC.
- Subpart A General Rule
Nearby sections
- § 404A Deduction for certain foreign deferred compensation plans
- § 405 Repealed
- § 406 Employees of foreign affiliates covered by section 3121(l) agreements
- § 407 Certain employees of domestic subsidiaries engaged in business outside the United States
- § 408 Individual retirement accounts
- § 408A Roth IRAs
- § 409 Qualifications for tax credit employee stock ownership plans
- § 409A Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans
Official notes
The Law Revision Counsel's notes for this section (amendments, effective dates and related laws) are long, so they have their own page.