Internal Revenue Code · 26 U.S.C.
§ 4979. Tax on certain excess contributions
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. § 4979
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- October 22, 1986 by Pub. L. 99–514
- Last amended
- August 17, 2006 by Pub. L. 109–280
- Amendments
- 2 dated changes in the source credit
- Length
- 6 subsections · 441 words · about 2 min to read
- Defines
- 3 terms
- Cross-references
- cites 5; cited by 4 Code sections and 6 other regulations
- Regulations
- 2 issued under this section
For purposes of this section, the term “excess contributions” has the meaning given such term by sections 401(k)(8)(B), 408(k)(6)(C), and 501(c)(18).
For purposes of this section, the term “excess aggregate contribution” has the meaning given to such term by section 401(m)(6)(B). For purposes of determining excess aggregate contributions under an annuity contract described in section 403(b), such contract shall be treated as a plan described in subsection (e)(1).
No tax shall be imposed under this section on any excess contribution or excess aggregate contribution, as the case may be, to the extent such contribution (together with any income allocable thereto through the end of the plan year for which the contribution was made) is distributed (or, if forfeitable, is forfeited) before the close of the first 2½ months (6 months in the case of an excess contribution or excess aggregate contribution to an eligible automatic contribution arrangement (as defined in section 414(w)(3))) of the following plan year.
Any amount distributed as provided in paragraph (1) shall be treated as earned and received by the recipient in the recipient’s taxable year in which such distributions were made.
(Added Pub. L. 99–514, title XI, § 1117(b)(1), Oct. 22, 1986, 100 Stat. 2461; amended Pub. L. 100–647, title I, § 1011(l)(8)–(11), Nov. 10, 1988, 102 Stat. 3470, 3471; Pub. L. 109–280, title IX, § 902(e)(1)–(3)(A), Aug. 17, 2006, 120 Stat. 1038.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 4979
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 5 other sections
- § 401(k)(8)(B) Qualified pension, profit-sharing, and stock bonus plans
- § 408(k)(6)(C) Individual retirement accounts
- § 501(c)(18) Exemption from tax on corporations, certain trusts, etc.
- § 403(b) Taxation of employee annuities
- § 414(w)(3) Definitions and special rules
Cited by 4 Code sections
- § 401(k)(8)(F) Qualified pension, profit-sharing, and stock bonus plans
- § 408(k)(6)(C)(i) Individual retirement accounts
- § 501(c)(18)(D)(iv) Exemption from tax on corporations, certain trusts, etc.
- § 4965(c)(4) Excise tax on certain tax-exempt entities entering into prohibited tax shelter transactions
Cited in 6 regulations not issued under it
- § 1.401(k)-2 ADP test.
- § 1.401(m)-2 ACP test.
- § 1.403(b)-4 Contribution limitations.
- § 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.
- § 53.4965-2 Covered tax-exempt entities.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
Nearby sections
- § 4977 Tax on certain fringe benefits provided by an employer
- § 4978 Tax on certain dispositions by employee stock ownership plans and certain cooperatives
- § 4978A Repealed
- § 4978B Repealed
- § 4979 Tax on certain excess contributions
- § 4979A Tax on certain prohibited allocations of qualified securities
- § 4980 Tax on reversion of qualified plan assets to employer
- § 4980A Repealed
- § 4980B Failure to satisfy continuation coverage requirements of group health plans
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2006—Subsec. (f). Pub. L. 109–280, § 902(e)(1)(B), substituted “specified period after” for “2½ months of” in heading.
Subsec. (f)(1). Pub. L. 109–280, § 902(e)(1)(A), (3)(A), inserted “through the end of the plan year for which the contribution was made” after “thereto” and “(6 months in the case of an excess contribution or excess aggregate contribution to an eligible automatic contribution arrangement (as defined in section 414(w)(3)))” after “2½ months”.
Subsec. (f)(2). Pub. L. 109–280, § 902(e)(2), reenacted heading without change and amended text of par. (2) generally. Prior to amendment, text read as follows:
“(A) In general.—Except as provided in subparagraph (B), any amount distributed as provided in paragraph (1) shall be treated as received and earned by the recipient in his taxable year for which such contribution was made.
“(B) De minimis distributions.—If the total excess contributions and excess aggregate contributions distributed to a recipient under a plan for any plan year are less than $100, such distributions (and any income allocable thereto) shall be treated as earned and received by the recipient in his taxable year in which such distributions were made.”
1988—Subsec. (a)(1). Pub. L. 100–647, § 1011(l)(8), struck out “a cash or deferred arrangement which is part of” after “contributions under”.
Subsec. (c). Pub. L. 100–647, § 1011(l)(9), struck out “403(b),” and substituted “408(k)(6)(C)” for “408(k)(8)(B)”.
Subsec. (d). Pub. L. 100–647, § 1011(l)(10), inserted sentence at end relating to determination of excess aggregate contributions under certain annuity contracts.
Subsec. (f)(2). Pub. L. 100–647, § 1011(l)(11), substituted “Year of inclusion” for “Included in prior year” as heading, and amended text generally. Prior to amendment, text read as follows: “Any amount distributed as provided in paragraph (1) shall be treated as received and earned by the recipient in his taxable year for which such contribution was made.”
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Amendment by Pub. L. 109–280 applicable to plan years beginning after Dec. 31, 2007, see section 902(g) of Pub. L. 109–280, set out as a note under section 401 of this title.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Effective Date
Section applicable to plan years beginning after Dec. 31, 1986, with special provisions for plans maintained pursuant to collective bargaining agreements ratified before Mar. 1, 1986, and for annuity contracts under section 403(b) of this title, see section 1117(d) of Pub. L. 99–514, set out as an Effective Date of 1986 Amendment note under section 401 of this title.
Regulations
Secretary of the Treasury or his delegate to issue before Feb. 1, 1988, final regulations to carry out this section, see section 1141 of Pub. L. 99–514, set out as a note under section 401 of this title.
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.