Internal Revenue Code · 26 U.S.C.
§ 410. Minimum participation standards
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. § 410
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
- August 17, 2006 by Pub. L. 109–280
- Amendments
- 10 dated changes in the source credit
- Length
- 4 subsections · 3,310 words · about 14 min to read
- Defines
- 10 terms
- Cross-references
- cites 7; cited by 15 Code sections and 65 other regulations
- Regulations
- 25 issued under this section
A trust shall not constitute a qualified trust under section 401(a) if the plan of which it is a part excludes from participation (on the basis of age) employees who have attained a specified age.
For purposes of this subsection, the term “year of service” means a 12-month period during which the employee has not less than 1,000 hours of service. For purposes of this paragraph, computation of any 12-month period shall be made with reference to the date on which the employee’s employment commenced, except that, under regulations prescribed by the Secretary of Labor, such computation may be made by reference to the first day of a plan year in the case of an employee who does not complete 1,000 hours of service during the 12-month period beginning on the date his employment commenced.
In the case of any seasonal industry where the customary period of employment is less than 1,000 hours during a calendar year, the term “year of service” shall be such period as may be determined under regulations prescribed by the Secretary of Labor.
For purposes of this subsection, the term “hour of service” means a time of service determined under regulations prescribed by the Secretary of Labor.
For purposes of this subsection, in the case of any maritime industry, 125 days of service shall be treated as 1,000 hours of service. The Secretary of Labor may prescribe regulations to carry out this subparagraph.
Except as otherwise provided in subparagraphs (B), (C), and (D), all years of service with the employer or employers maintaining the plan shall be taken into account in computing the period of service for purposes of paragraph (1).
In the case of any employee who has any 1-year break in service (as defined in section 411(a)(6)(A)) under a plan to which the service requirements of clause (i) of paragraph (1)(B) apply, if such employee has not satisfied such requirements, service before such break shall not be required to be taken into account.
In computing an employee’s period of service for purposes of paragraph (1) in the case of any participant who has any 1-year break in service (as defined in section 411(a)(6)(A)), service before such break shall not be required to be taken into account under the plan until he has completed a year of service (as defined in paragraph (3)) after his return.
If any years of service are not required to be taken into account by reason of a period of breaks in service to which clause (i) applies, such years of service shall not be taken into account in applying clause (i) to a subsequent period of breaks in service.
For purposes of clause (i), the term “nonvested participant” means a participant who does not have any nonforfeitable right under the plan to an accrued benefit derived from employer contributions.
For purposes of this subparagraph, the term “year” means the period used in computations pursuant to paragraph (3).
For purposes of this paragraph, the term “average benefit percentage” means, with respect to any group, the average of the benefit percentages calculated separately with respect to each employee in such group (whether or not a participant in any plan).
The term “benefit percentage” means the employer-provided contribution or benefit of an employee under all qualified plans maintained by the employer, expressed as a percentage of such employee’s compensation (within the meaning of section 414(s)).
For purposes of this paragraph, the term “qualified plan” means any plan which (without regard to this subsection) meets the requirements of section 401(a).
If employees not meeting the minimum age or service requirements of subsection (a)(1) (without regard to subparagraph (B) thereof) are covered under a plan of the employer which meets the requirements of paragraph (1) separately with respect to such employees, such employees may be excluded from consideration in determining whether any plan of the employer meets the requirements of paragraph (1).
An employee shall not be treated as meeting the age and service requirements described in this paragraph until the first date on which, under the plan, any employee with the same age and service would be eligible to commence participation in the plan.
If, under section 414(r), an employer is treated as operating separate lines of business for a year, the employer may apply the requirements of this subsection for such year separately with respect to employees in each separate line of business.
Subparagraph (A) shall not apply with respect to any plan maintained by an employer unless such plan benefits such employees as qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of highly compensated employees.
The term “highly compensated employee” has the meaning given such term by section 414(q).
In the case of contributions which are subject to section 401(k) or 401(m), employees who are eligible to contribute (or elect to have contributions made on their behalf) shall be treated as benefiting under the plan (other than for purposes of paragraph (2)(A)(ii)).
A plan maintained by an employer which has no employees other than highly compensated employees for any year shall be treated as meeting the requirements of this subsection for such year.
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection.
If the church or convention or association of churches which maintains any church plan makes an election under this subsection (in such form and manner as the Secretary may by regulations prescribe), then the provisions of this title relating to participation, vesting, funding, etc. (as in effect from time to time) shall apply to such church plan as if such provisions did not contain an exclusion for church plans.
An election under this subsection with respect to any church plan shall be binding with respect to such plan, and, once made, shall be irrevocable.
(Added Pub. L. 93–406, title II, § 1011, Sept. 2, 1974, 88 Stat. 898; amended Pub. L. 94–455, title XIX, §§ 1901(a)(61), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1774, 1834; Pub. L. 96–605, title II, § 225(a), Dec. 28, 1980, 94 Stat. 3529; Pub. L. 97–34, title I, § 111(b)(4), Aug. 13, 1981, 95 Stat. 194; Pub. L. 98–397, title II, § 202(a), (d)(1), (e)(1), Aug. 23, 1984, 98 Stat. 1436–1438; Pub. L. 99–509, title IX, § 9203(a)(2), Oct. 21, 1986, 100 Stat. 1979; Pub. L. 99–514, title XI, §§ 1112(a), 1113(c), (d)(A), Oct. 22, 1986, 100 Stat. 2440, 2447; Pub. L. 100–647, title I, § 1011(h)(1), (2), (11), title III, § 3021(a)(13)(B), Nov. 10, 1988, 102 Stat. 3464, 3467, 3631; Pub. L. 101–239, title VII, § 7841(d)(6), Dec. 19, 1989, 103 Stat. 2428; Pub. L. 105–34, title XV, § 1505(a)(3), Aug. 5, 1997, 111 Stat. 1063; Pub. L. 109–280, title IV, § 402(h)(1), Aug. 17, 2006, 120 Stat. 927.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
- average benefit percentage § 410(b)(2)(B)
- benefit percentage § 410(b)(2)(C)(i)
- highly compensated employee § 410(b)(6)(A)
- hour of service § 410(a)(3)(C)
- nonvested participant § 410(a)(5)(D)(iii)
- qualified plan § 410(b)(2)(E)
- transition period § 410(b)(6)(C)(ii)
- year § 410(a)(5)(E)(iv)
- year of service § 410(a)(3)(A)
- year of service § 410(a)(3)(B)
Regulations under this section
Treasury regulations (26 CFR) issued under § 410
- § 1.410(a)-1 Minimum participation standards; general rules.
- § 1.410(a)-2 Effective dates.
- § 1.410(a)-3 Minimum age and service conditions.
- § 1.410(a)-3T Minimum age and service conditions (temporary).
- § 1.410(a)-4 Maximum age conditions and time of participation.
- § 1.410(a)-5 Year of service; break in service.
- § 1.410(a)-6 Amendment of break in service rules; Transition period.
- § 1.410(a)-7 Elapsed time.
- § 1.410(a)-8 Five consecutive 1-year breaks in service, transitional rules under the Retirement Equity Act of 1984.
- § 1.410(a)-8T Year of service; break in service (temporary).
- § 1.410(a)-9 Maternity and paternity absence.
- § 1.410(a)-9T Elapsed time (temporary).
- § 1.410(b)-0 Table of contents.
- § 1.410(b)-2 Minimum coverage requirements (after 1993).
- § 1.410(b)-3 Employees and former employees who benefit under a plan.
- § 1.410(b)-4 Nondiscriminatory classification test.
- § 1.410(b)-5 Average benefit percentage test.
- § 1.410(b)-6 Excludable employees.
- § 1.410(b)-7 Definition of plan and rules governing plan disaggregation and aggregation.
- § 1.410(b)-8 Additional rules.
- § 1.410(b)-9 Definitions.
- § 1.410(b)-10 Effective dates and transition rules.
- § 1.410(d)-1 Election by church to have participation, vesting, funding, etc. provisions apply.
- § 11.410-1 Election by church to have participation, vesting, funding, etc., provisions apply.
- § 11.410(b)-1 Minimum coverage requirements.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 7 other sections
- § 401(a) Qualified pension, profit-sharing, and stock bonus plans
- § 411 Minimum vesting standards
- § 170(b)(1)(A)(ii) Charitable, etc., contributions and gifts
- § 501(a) Exemption from tax on corporations, certain trusts, etc.
- § 414(s) Definitions and special rules
- § 911(d)(2) Citizens or residents of the United States living abroad
- § 861(a)(3) Income from sources within the United States
Cited by 15 Code sections
- § 125(g)(3)(A) Cafeteria plans
- § 129(d)(9)(A) Dependent care assistance programs
- § 401(a)(3) Qualified pension, profit-sharing, and stock bonus plans
- § 402(b)(4) Taxability of beneficiary of employees’ trust
- § 403(b)(12)(A)(i) Taxation of employee annuities
- § 406(b)(1) Employees of foreign affiliates covered by section 3121(l) agreements
- § 407(b)(1) Certain employees of domestic subsidiaries engaged in business outside the United States
- § 408(k)(2)(C) Individual retirement accounts
- § 411(a)(5)(B) Minimum vesting standards
- § 412(e)(2)(D) Minimum funding standards
- § 413(b)(1) Collectively bargained plans, etc.
- § 414(b)(1) Definitions and special rules
- § 416(c)(1)(C)(iii) Special rules for top-heavy plans
- § 4975(g)(3) Tax on prohibited transactions
- § 4980F(f)(2)(B) Failure of applicable plans reducing benefit accruals to satisfy notice requirements
Cited in 65 regulations not issued under it
- § 1.46-7 Statutory provisions; plan requirements for taxpayers electing additional investment credit, etc.
- § 1.46-8 Requirements for taxpayers electing additional one-percent investment credit (TRASOP's).
- § 1.105-11 Self-insured medical reimbursement plan.
- § 1.127-2 Qualified educational assistance program.
- § 1.132-8 Fringe benefit nondiscrimination rules.
- § 1.401(a)-4 Optional forms of benefit (before 1994).
- § 1.401(a)-13 Assignment or alienation of benefits.
- § 1.401(a)(4)-0 Table of contents.
- § 1.401(a)(4)-1 Nondiscrimination requirements of section 401(a)(4).
- § 1.401(a)(4)-2 Nondiscrimination in amount of employer contributions under a defined contribution plan.
- § 1.401(a)(4)-3 Nondiscrimination in amount of employer-provided benefits under a defined benefit plan.
- § 1.401(a)(4)-4 Nondiscriminatory availability of benefits, rights, and features.
- § 1.401(a)(4)-8 Cross-testing.
- § 1.401(a)(4)-9 Plan aggregation and restructuring.
- § 1.401(a)(4)-11 Additional rules.
- § 1.401(a)(4)-12 Definitions.
- § 1.401(a)(4)-13 Effective dates and fresh-start rules.
- § 1.401(a)(5)-1 Special rules relating to nondiscrimination requirements.
- § 1.401(a)(26)-1 Minimum participation requirements.
- § 1.401(a)(26)-2 Minimum participation rule.
- § 1.401(a)(26)-6 Excludable employees.
- § 1.401(k)-0 Table of contents.
- § 1.401(k)-1 Certain cash or deferred arrangements.
- § 1.401(k)-2 ADP test.
Show 41 more
- § 1.401(k)-3 Safe harbor requirements.
- § 1.401(k)-4 SIMPLE 401(k) plan requirements.
- § 1.401(m)-1 Employee contributions and matching contributions.
- § 1.401(m)-2 ACP test.
- § 1.401(m)-3 Safe harbor requirements.
- § 1.402(a)-1 Taxability of beneficiary under a trust which meets the requirements of section 401(a).
- § 1.403(b)-4 Contribution limitations.
- § 1.403(b)-5 Nondiscrimination rules.
- § 1.406-1 Treatment of certain employees of foreign subsidiaries as employees of the domestic corporation.
- § 1.407-1 Treatment of certain employees of domestic subsidiaries engaged in business outside the United States as employees of the domestic parent corporation.
- § 1.411(a)-1 Minimum vesting standards; general rules.
- § 1.411(a)-5 Service included in determination of nonforfeitable percentage.
- § 1.411(a)-6 Year of service; hours of service; breaks in service.
- § 1.411(a)-7 Definitions and special rules.
- § 1.411(b)-1 Accrued benefit requirements.
- § 1.411(d)-4 Section 411(d)(6) protected benefits.
- § 1.412(c)(3)-1 Reasonable funding methods.
- § 1.413-1 Special rules for collectively bargained plans.
- § 1.413-2 Special rules for plans maintained by more than one employer.
- § 1.414(c)-5 Certain tax-exempt organizations.
- § 1.414(e)-1 Definition of church plan.
- § 1.414(l)-1 Mergers and consolidations of plans or transfers of plan assets.
- § 1.414(r)-0 Table of contents.
- § 1.414(r)-1 Requirements applicable to qualified separate lines of business.
- § 1.414(r)-3 Separate line of business.
- § 1.414(r)-5 Qualified separate line of business—administrative scrutiny requirement—safe harbors.
- § 1.414(r)-7 Determination of the employees of an employer's qualified separate lines of business.
- § 1.414(r)-8 Separate application of section 410(b).
- § 1.414(r)-11 Definitions and special rules.
- § 1.414(v)-1 Catch-up contributions.
- § 1.414(w)-1 Permissible withdrawals from eligible automatic contribution arrangements.
- § 1.416-1 Questions and answers on top-heavy plans.
- § 1.417(e)-1 Restrictions and valuations of distributions from plans subject to sections 401(a)(11) and 417.
- § 1.430(h)(3)-2 Plan-specific substitute mortality tables used to determine present value.
- § 1.7476-1 Interested parties.
- § 1.7476-2 Notice to interested parties.
- § 54.4975-11 “ESOP” requirements.
- § 54.4979-1 Excise tax on certain excess contributions and excess aggregate contributions.
- § 54.4980F-1 Notice requirements for certain pension plan amendments significantly reducing the rate of future benefit accrual.
- § 301.6103(l)(2)-3 Disclosure to Department of Labor and Pension Benefit Guaranty Corporation of certain returns and return information.
- § 601.201 Rulings and determinations letters.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 109–280Parts changed in 2006: (b)(3)
- Amended by Pub. L. 105–34Parts changed in 1997: (c)(2)
- Amended by Pub. L. 101–239Parts changed in 1989: (a)(2)
- Amended by Pub. L. 100–647Parts changed in 1988: (b)(4)(B) (b)(4)(C) (b)(6)(C)(i)(II) (b)(6)(F)
- Amended by Pub. L. 99–514Parts changed in 1986: (a)(1)(B)(i) (a)(2) (a)(5)(B) (b)
- Amended by Pub. L. 99–509
- Amended by Pub. L. 98–397Parts changed in 1984: (a)(1)(A)(i) (a)(1)(B)(ii) (a)(5)(D) (a)(5)(E)
- Amended by Pub. L. 97–34Parts changed in 1981: (b)(3)(C)
- Amended by Pub. L. 96–605Parts changed in 1980: (b)(2)
- Amended by Pub. L. 94–455Parts changed in 1976: (a)(2)(A)(ii) (a)(5)(C) (b)(1)(B) (c)(1)(C) (c)(2) (d)(1)
- 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 B Special Rules
Nearby sections
- § 410 Minimum participation standards
- § 411 Minimum vesting standards
- § 412 Minimum funding standards
- § 413 Collectively bargained plans, etc.
- § 414 Definitions and special rules
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.