Section 79 Plans: WHAT IS A SECTION 79 PLAN?

Section 79 Plans: WHAT IS A SECTION 79 PLAN?: Section 79 plans are commonly known for the $50,000 free term life insurance they can provide for employees. Less commonly known is tha...





26 U.S. Code § 412 - Minimum funding standards

Current through Pub. L. 113-86, except 113-79. (See Public Laws for the current Congress.)
PREV | NEXT

(a) Requirement to meet minimum funding standard
(1) In general
A plan to which this section applies shall satisfy the minimum funding standard applicable to the plan for any plan year.
(2) Minimum funding standard
For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if—
(A) in the case of a defined benefit plan which is not a multiemployer plan, the employer makes contributions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution determined under section 430 for the plan for the plan year,
(B) in the case of a money purchase plan which is not a multiemployer plan, the employer makes contributions to or under the plan for the plan year which are required under the terms of the plan, and
(C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 431 as of the end of the plan year.
(b) Liability for contributions
(1) In general
Except as provided in paragraph (2), the amount of any contribution required by this section (including any required installments under paragraphs (3) and (4) of section430 (j)) shall be paid by the employer responsible for making contributions to or under the plan.
(2) Joint and several liability where employer member of controlled group
If the employer referred to in paragraph (1) is a member of a controlled group, each member of such group shall be jointly and severally liable for payment of such contributions.
(3) Multiemployer plans in critical status
Paragraph (1) shall not apply in the case of a multiemployer plan for any plan year in which the plan is in critical status pursuant to section 432. This paragraph shall only apply if the plan sponsor adopts a rehabilitation plan in accordance with section 432(e) and complies with such rehabilitation plan (and any modifications of the plan).
(c) Variance from minimum funding standards
(1) Waiver in case of business hardship
(A) In general
If—
(i) an employer is (or in the case of a multiemployer plan, 10 percent or more of the number of employers contributing to or under the plan are) unable to satisfy the minimum funding standard for a plan year without temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan), and
(ii) application of the standard would be adverse to the interests of plan participants in the aggregate,
the Secretary may, subject to subparagraph (C), waive the requirements of subsection (a) for such year with respect to all or any portion of the minimum funding standard. The Secretary shall not waive the minimum funding standard with respect to a plan for more than 3 of any 15 (5 of any 15 in the case of a multiemployer plan) consecutive plan years  [1]
(B) Effects of waiver
If a waiver is granted under subparagraph (A) for any plan year—
(i) in the case of a defined benefit plan which is not a multiemployer plan, the minimum required contribution under section 430 for the plan year shall be reduced by the amount of the waived funding deficiency and such amount shall be amortized as required under section 430 (e), and
(ii) in the case of a multiemployer plan, the funding standard account shall be credited under section 431 (b)(3)(C) with the amount of the waived funding deficiency and such amount shall be amortized as required under section 431 (b)(2)(C).
(C) Waiver of amortized portion not allowed
The Secretary may not waive under subparagraph (A) any portion of the minimum funding standard under subsection (a) for a plan year which is attributable to any waived funding deficiency for any preceding plan year.
(2) Determination of business hardship
For purposes of this subsection, the factors taken into account in determining temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan) shall include (but shall not be limited to) whether or not—
(A) the employer is operating at an economic loss,
(B) there is substantial unemployment or underemployment in the trade or business and in the industry concerned,
(C) the sales and profits of the industry concerned are depressed or declining, and
(D) it is reasonable to expect that the plan will be continued only if the waiver is granted.
(3) Waived funding deficiency
For purposes of this section and part III of this subchapter, the term “waived funding deficiency” means the portion of the minimum funding standard under subsection (a) (determined without regard to the waiver) for a plan year waived by the Secretary and not satisfied by employer contributions.
(4) Security for waivers for single-employer plans, consultations
(A) Security may be required
(i) In general Except as provided in subparagraph (C), the Secretary may require an employer maintaining a defined benefit plan which is a single-employer plan (within the meaning of section 4001(a)(15) of the Employee Retirement Income Security Act of 1974) to provide security to such plan as a condition for granting or modifying a waiver under paragraph (1).
(ii) Special rules Any security provided under clause (i) may be perfected and enforced only by the Pension Benefit Guaranty Corporation, or at the direction of the Corporation, by a contributing sponsor (within the meaning of section 4001(a)(13) of the Employee Retirement Income Security Act of 1974), or a member of such sponsor’s controlled group (within the meaning of section 4001(a)(14) of such Act).
(B) Consultation with the Pension Benefit Guaranty Corporation
Except as provided in subparagraph (C), the Secretary shall, before granting or modifying a waiver under this subsection with respect to a plan described in subparagraph (A)(i)—

3 comments:


  1. ~ National Society of Accountants Speaker of the Year
    Education:

    · Baruch College (CUNY), Baruch College Graduate School
    · The American College – Chartered Financial Consultant (ChFC)· The American College – Chartered Life Underwriter (CLU)

    Guest Lecturer for:
    · Baruch College (Taxes on Tuesdays); Long Island University, C.W. Post Graduate School of Accountancy.
    · Speaker at more than 70 conventions yearly, including the annual national conventions of the American Association of Attorney Certified Public Accountants, National Society of Accountants, National Network of Estate Planning Attorneys, National Association of Tax Practitioners, National Association of Enrolled Agents, National Association of Health Underwriters, American Society of Pension Actuaries, Employ

    ReplyDelete

  2. ~ National Society of Accountants Speaker of the Year
    Education:

    · Baruch College (CUNY), Baruch College Graduate School
    · The American College – Chartered Financial Consultant (ChFC)· The American College – Chartered Life Underwriter (CLU)

    Guest Lecturer for:
    · Baruch College (Taxes on Tuesdays); Long Island University, C.W. Post Graduate School of Accountancy.
    · Speaker at more than 70 conventions yearly, including the annual national conventions of the American Association of Attorney Certified Public Accountants, National Society of Accountants, National Network of Estate Planning Attorneys, National Association of Tax Practitioners, National Association of Enrolled Agents, National Association of Health Underwriters, American Society of Pension Actuaries, Employ

    ReplyDelete
  3. scambook

    SEARCHLOGIN MENU
    MENU

    HOME
    BUSINESS RESOLVE
    REPORT A COMPLAINT
    BROWSE COMPLAINTS
    SCAMBOOK INSIGHTS
    ABOUT US
    FAQ
    BLOG
    Need any help? Write to us at support@scambook.com



    Company Details

    sea nine veba audits lawsuits
    sea nine veba audits lawsuits logo
    sea nine veba audits lawsuits Summary
    sea nine veba audits lawsuits received their first complaint on 12/19/2012.
    Information about sea nine veba audits lawsuits was first submitted to Scambook on Dec 19, 2012. Since then the page has accumulated 0 consumer complaints. On average users reported $0 of damages.

    ReplyDelete