
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC129]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
         PART III--ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME
 
Sec. 129. Dependent care assistance programs


(a) Exclusion

                           (1) In general

        Gross income of an employee does not include amounts paid or 
    incurred by the employer for dependent care assistance provided to 
    such employee if the assistance is furnished pursuant to a program 
    which is described in subsection (d).

                     (2) Limitation of exclusion

        (A) In general

            The amount which may be excluded under paragraph (1) for 
        dependent care assistance with respect to dependent care 
        services provided during a taxable year shall not exceed $5,000 
        ($2,500 in the case of a separate return by a married 
        individual).

        (B) Year of inclusion

            The amount of any excess under subparagraph (A) shall be 
        included in gross income in the taxable year in which the 
        dependent care services were provided (even if payment of 
        dependent care assistance for such services occurs in a 
        subsequent taxable year).

        (C) Marital status

            For purposes of this paragraph, marital status shall be 
        determined under the rules of paragraphs (3) and (4) of section 
        21(e).

(b) Earned income limitation

                           (1) In general

        The amount excluded from the income of an employee under 
    subsection (a) for any taxable year shall not exceed--
            (A) in the case of an employee who is not married at the 
        close of such taxable year, the earned income of such employee 
        for such taxable year, or
            (B) in the case of an employee who is married at the close 
        of such taxable year, the lesser of--
                (i) the earned income of such employee for such taxable 
            year, or
                (ii) the earned income of the spouse of such employee 
            for such taxable year.

                (2) Special rule for certain spouses

        For purposes of paragraph (1), the provisions of section 
    21(d)(2) shall apply in determining the earned income of a spouse 
    who is a student or incapable of caring for himself.

(c) Payments to related individuals

    No amount paid or incurred during the taxable year of an employee by 
an employer in providing dependent care assistance to such employee 
shall be excluded under subsection (a) if such amount was paid or 
incurred to an individual--
        (1) with respect to whom, for such taxable year, a deduction is 
    allowable under section 151(c) (relating to personal exemptions for 
    dependents) to such employee or the spouse of such employee, or
        (2) who is a child of such employee (within the meaning of 
    section 151(c)(3)) under the age of 19 at the close of such taxable 
    year.

(d) Dependent care assistance program

                           (1) In general

        For purposes of this section a dependent care assistance program 
    is a separate written plan of an employer for the exclusive benefit 
    of his employees to provide such employees with dependent care 
    assistance which meets the requirements of paragraphs (2) through 
    (8) of this subsection. If any plan would qualify as a dependent 
    care assistance program but for a failure to meet the requirements 
    of this subsection, then, notwithstanding such failure, such plan 
    shall be treated as a dependent care assistance program in the case 
    of employees who are not highly compensated employees.

                         (2) Discrimination

        The contributions or benefits provided under the plan shall not 
    discriminate in favor of employees who are highly compensated 
    employees (within the meaning of section 414(q)) or their 
    dependents.

                           (3) Eligibility

        The program shall benefit employees who qualify under a 
    classification set up by the employer and found by the Secretary not 
    to be discriminatory in favor of employees described in paragraph 
    (2), or their dependents.

                (4) Principal shareholders or owners

        Not more than 25 percent of the amounts paid or incurred by the 
    employer for dependent care assistance during the year may be 
    provided for the class of individuals who are shareholders or owners 
    (or their spouses or dependents), each of whom (on any day of the 
    year) owns more than 5 percent of the stock or of the capital or 
    profits interest in the employer.

                       (5) No funding required

        A program referred to in paragraph (1) is not required to be 
    funded.

               (6) Notification of eligible employees

        Reasonable notification of the availability and terms of the 
    program shall be provided to eligible employees.

                      (7) Statement of expenses

        The plan shall furnish to an employee, on or before January 31, 
    a written statement showing the amounts paid or expenses incurred by 
    the employer in providing dependent care assistance to such employee 
    during the previous calendar year.

                            (8) Benefits

        (A) In general

            A plan meets the requirements of this paragraph if the 
        average benefits provided to employees who are not highly 
        compensated employees under all plans of the employer is at 
        least 55 percent of the average benefits provided to highly 
        compensated employees under all plans of the employer.

        (B) Salary reduction agreements

            For purposes of subparagraph (A), in the case of any 
        benefits provided through a salary reduction agreement, a plan 
        may disregard any employees whose compensation is less than 
        $25,000. For purposes of this subparagraph, the term 
        ``compensation'' has the meaning given such term by section 
        414(q)(4), except that, under rules prescribed by the Secretary, 
        an employer may elect to determine compensation on any other 
        basis which does not discriminate in favor of highly compensated 
        employees.

                       (9) Excluded employees

        For purposes of paragraphs (3) and (8), there shall be excluded 
    from consideration--
            (A) subject to rules similar to the rules of section 
        410(b)(4), employees who have not attained the age of 21 and 
        completed 1 year of service (as defined in section 410(a)(3)), 
        and
            (B) employees not included in a dependent care assistance 
        program who are included in a unit of employees covered by an 
        agreement which the Secretary finds to be a collective 
        bargaining agreement between employee representatives and 1 or 
        more employees, if there is evidence that dependent care 
        benefits were the subject of good faith bargaining between such 
        employee representatives and such employer or employers.

(e) Definitions and special rules

    For purposes of this section--

                    (1) Dependent care assistance

        The term ``dependent care assistance'' means the payment of, or 
    provision of, those services which if paid for by the employee would 
    be considered employment-related expenses under section 21(b)(2) 
    (relating to expenses for household and dependent care services 
    necessary for gainful employment).

                          (2) Earned income

        The term ``earned income'' shall have the meaning given such 
    term in section 32(c)(2), but such term shall not include any 
    amounts paid or incurred by an employer for dependent care 
    assistance to an employee.

                            (3) Employee

        The term ``employee'' includes, for any year, an individual who 
    is an employee within the meaning of section 401(c)(1) (relating to 
    self-employed individuals).

                            (4) Employer

        An individual who owns the entire interest in an unincorporated 
    trade or business shall be treated as his own employer. A 
    partnership shall be treated as the employer of each partner who is 
    an employee within the meaning of paragraph (3).

                        (5) Attribution rules

        (A) Ownership of stock

            Ownership of stock in a corporation shall be determined in 
        accordance with the rules provided under subsections (d) and (e) 
        of section 1563 (without regard to section 1563(e)(3)(C)).

        (B) Interest in unincorporated trade or business

            The interest of an employee in a trade or business which is 
        not incorporated shall be determined in accordance with 
        regulations prescribed by the Secretary, which shall be based on 
        principles similar to the principles which apply in the case of 
        subparagraph (A).

                 (6) Utilization test not applicable

        A dependent care assistance program shall not be held or 
    considered to fail to meet any requirements of subsection (d) (other 
    than paragraphs (4) and (8) thereof) merely because of utilization 
    rates for the different types of assistance made available under the 
    program.

     (7) Disallowance of excluded amounts as credit or deduction

        No deduction or credit shall be allowed to the employee under 
    any other section of this chapter for any amount excluded from the 
    gross income of the employee by reason of this section.

                 (8) Treatment of onsite facilities

        In the case of an onsite facility maintained by an employer, 
    except to the extent provided in regulations, the amount of 
    dependent care assistance provided to an employee excluded with 
    respect to any dependent shall be based on--
            (A) utilization of the facility by a dependent of the 
        employee, and
            (B) the value of the services provided with respect to such 
        dependent.

    (9) Identifying information required with respect to service 
                                  provider

        No amount paid or incurred by an employer for dependent care 
    assistance provided to an employee shall be excluded from the gross 
    income of such employee unless--
            (A) the name, address, and taxpayer identification number of 
        the person performing the services are included on the return to 
        which the exclusion relates, or
            (B) if such person is an organization described in section 
        501(c)(3) and exempt from tax under section 501(a), the name and 
        address of such person are included on the return to which the 
        exclusion relates.

    In the case of a failure to provide the information required under 
    the preceding sentence, the preceding sentence shall not apply if it 
    is shown that the taxpayer exercised due diligence in attempting to 
    provide the information so required.

(Added Pub. L. 97-34, title I, Sec. 124(e)(1), Aug. 13, 1981, 95 Stat. 
198; amended Pub. L. 97-448, title I, Sec. 101(e), Jan. 12, 1983, 96 
Stat. 2366; Pub. L. 98-369, div. A, title IV, Sec. 474(r)(6), July 18, 
1984, 98 Stat. 839; Pub. L. 99-514, title I, Sec. 104(b)(1), title XI, 
Secs. 1114(b)(4), 1151(c)(5), (f), (g)(4), 1163(a), (b), Oct. 22, 1986, 
100 Stat. 2104, 2450, 2503, 2506, 2507, 2510; Pub. L. 100-485, title 
VII, Sec. 703(c)(2), Oct. 13, 1988, 102 Stat. 2427; Pub. L. 100-647, 
title I, Sec. 1011B(a)(14), (15), (18), (30), (31)(A), (c)(1), (2)(A), 
title III, Sec. 3021(a)(14), Nov. 10, 1988, 102 Stat. 3485, 3487-3489, 
3631; Pub. L. 101-140, title II, Secs. 203(a)(1), (2), 204(a)(1)-(3)(C), 
Nov. 8, 1989, 103 Stat. 830, 832; Pub. L. 101-239, title VII, 
Sec. 7811(h)(2), Dec. 19, 1989, 103 Stat. 2409; Pub. L. 104-188, title 
I, Sec. 1431(c)(1)(B), Aug. 20, 1996, 110 Stat. 1803.)

                          Codification

    Pub. L. 101-140, Sec. 203(a)(1), amended this section to read as if 
the amendments made by section 1151(c)(5)(A) of Pub. L. 99-514 (amending 
subsec. (d)(1)) had not been enacted. Subsequent to amendment by Pub. L. 
99-514, subsec. (d)(1) was amended by Pub. L. 100-647. See 1988 
Amendment note below.


                            Prior Provisions

    A prior section 129 was renumbered section 139 of this title.


                               Amendments

    1996--Subsec. (d)(8)(B). Pub. L. 104-188 substituted ``section 
414(q)(4)'' for ``section 414(q)(7)''.
    1989--Subsec. (a). Pub. L. 101-239 struck out at end ``For purposes 
of the preceding sentence, marital status shall be determined under the 
rules of paragraphs (3) and (4) of section 21(e).''
    Subsec. (d)(1). Pub. L. 101-140, Sec. 204(a)(3)(B), substituted 
``paragraphs (2) through (8)'' for ``paragraphs (2) through (7)''.
    Pub. L. 101-140, Sec. 204(a)(1), inserted at end ``If any plan would 
qualify as a dependent care assistance program but for a failure to meet 
the requirements of this subsection, then, notwithstanding such failure, 
such plan shall be treated as a dependent care assistance program in the 
case of employees who are not highly compensated employees.''
    Pub. L. 101-140, Sec. 203(a)(1), amended par. (1) to read as if the 
amendments by Pub. L. 99-514, Sec. 1151(c)(5)(A), had not been enacted, 
see 1986 Amendment note below.
    Subsec. (d)(3). Pub. L. 101-140, Sec. 204(a)(2)(B), struck out at 
end ``For purposes of this paragraph, there may be excluded from 
consideration employees who may be excluded from consideration under 
section 89(h).'' for ``For purposes of this paragraph, there shall be 
excluded from consideration employees not included in the program who 
are included in a unit of employees covered by an agreement which the 
Secretary of Labor finds to be a collective bargaining agreement between 
employee representatives and one or more employers, if there is evidence 
that dependent care benefits were the subject of good faith bargaining 
between such employee representatives and such employer or employers.''
    Pub. L. 101-140, Sec. 203(a)(2), amended par. (3) to read as if 
amendments by Pub. L. 100-647, Sec. 1011B(a)(31)(A)(i), had not been 
enacted, see 1988 Amendment note below.
    Pub. L. 101-140, Sec. 203(a)(1), amended par. (3) to read as if 
amendments by Pub. L. 99-514, Sec. 1151(g)(4), had not been enacted, see 
1986 Amendment note below.
    Subsec. (d)(6). Pub. L. 101-140, Sec. 203(a)(1), amended par. (6) to 
read as if amendments by Pub. L. 99-514, Sec. 1151(c)(5)(B), had not 
been enacted, see 1986 Amendment note below.
    Subsec. (d)(7). Pub. L. 101-140, Sec. 204(a)(3)(A), redesignated 
par. (7) as (8).
    Pub. L. 101-140, Sec. 203(a)(1), amended par. (7) to read as if 
amendments by Pub. L. 99-514, Sec. 1151(c)(5)(B), had not been enacted, 
see 1986 Amendment note below.
    Subsec. (d)(8). Pub. L. 101-140, Sec. 204(a)(3)(A), redesignated 
par. (7) as (8).
    Pub. L. 101-140, Sec. 203(a)(2), amended par. (8) to read as if 
amendments by Pub. L. 100-647, Sec. 1011B(a)(31)(A)(ii), had not been 
enacted, see 1988 Amendment note below.
    Subsec. (d)(9). Pub. L. 101-140, Sec. 204(a)(2)(A), added par. (9).
    Subsec. (e)(6). Pub. L. 101-140, Sec. 204(a)(3)(C), substituted 
``(8)'' for ``(7)''.
    1988--Subsec. (a)(2). Pub. L. 100-647, Sec. 1011B(c)(2)(A), amended 
par. (2) generally. Prior to amendment, par. (2) read as follows: ``The 
aggregate amount excluded from the gross income of the taxpayer under 
this section for any taxable year shall not exceed $5,000 ($2,500 in the 
case of a separate return by a married individual).''
    Subsec. (d)(1)(B). Pub. L. 100-647, Sec. 1011B(a)(30), substituted 
``(7)'' for ``(6)'', see Codification note above.
    Subsec. (d)(3). Pub. L. 100-647, Sec. 1011B(a)(31)(A)(i), struck out 
at end ``For purposes of this paragraph, there may be excluded from 
consideration employees who may be excluded from consideration under 
section 89(h).''
    Subsec. (d)(7). Pub. L. 100-647, Sec. 1011B(a)(14), redesignated 
par. (8) as (7).
    Subsec. (d)(7)(A). Pub. L. 100-647, Sec. 1011B(a)(15)(A), inserted 
``under all plans of the employer'' after second and third reference to 
``employees''.
    Subsec. (d)(7)(B). Pub. L. 100-647, Sec. 3021(a)(14), struck out 
``(within the meaning of section 414(q)(7))'' after ``whose 
compensation'' and inserted at end ``For purposes of this subparagraph, 
the term `compensation' has the meaning given such term by section 
414(q)(7), except that, under rules prescribed by the Secretary, an 
employer may elect to determine compensation on any other basis which 
does not discriminate in favor of highly compensated employees.''
    Pub. L. 100-647, Sec. 1011B(a)(15)(B), (C), substituted ``a plan may 
disregard'' for ``there shall be disregarded'' and ``414(q)(7)'' for 
``415(q)(7)''.
    Subsec. (d)(8). Pub. L. 100-647, Sec. 1011B(a)(31)(A)(ii), added 
par. (8). Former par. (8) redesignated (7).
    Subsec. (e)(6). Pub. L. 100-647, Sec. 1011B(a)(18), inserted 
``(other than paragraphs (4) and (7) thereof)'' after ``subsection 
(d)''.
    Subsec. (e)(8). Pub. L. 100-647, Sec. 1011B(c)(1), in introductory 
provisions, inserted ``maintained by an employer'' after ``onsite 
facility'' and ``of dependent care assistance provided to an employee'' 
after ``the amount'', in subpar. (A), inserted ``of the facility by a 
dependent of the employee'' after ``utilization'', and in subpar. (B), 
inserted ``with respect to such dependent'' after ``provided''.
    Subsec. (e)(9). Pub. L. 100-485 added par. (9).
    1986--Subsec. (a). Pub. L. 99-514, Sec. 1163(a), substituted 
``Exclusion'' for ``In general'' in heading and amended text generally. 
Prior to amendment, text read as follows: ``Gross income of an employee 
does not include amounts paid or incurred by the employer for dependent 
care assistance provided to such employee if the assistance is furnished 
pursuant to a program which is described in subsection (d).''
    Subsec. (c)(1). Pub. L. 99-514, Sec. 104(b)(1)(A), substituted 
``section 151(c)'' for ``section 151(e)''.
    Subsec. (c)(2). Pub. L. 99-514, Sec. 104(b)(1)(B), substituted 
``section 151(c)(3)'' for ``section 151(e)(3)''.
    Subsec. (d)(1). Pub. L. 99-514, Sec. 1151(c)(5)(A), added par. (1) 
and struck out former par. (1) which read as follows: ``For purposes of 
this section a dependent care assistance program is a separate written 
plan of an employer for the exclusive benefit of his employees to 
provide such employees with dependent care assistance which meets the 
requirements of paragraphs (2) through (7) of this subsection.''
    Subsec. (d)(2). Pub. L. 99-514, Sec. 1114(b)(4), substituted 
``highly compensated employees (within the meaning of section 414(q))'' 
for ``officers, owners, or highly compensated,''.
    Subsec. (d)(3). Pub. L. 99-514, Sec. 1151(g)(4), substituted ``For 
purposes of this paragraph, there may be excluded from consideration 
employees who may be excluded from consideration under section 89(h).'' 
for ``For purposes of this paragraph, there shall be excluded from 
consideration employees not included in the program who are included in 
a unit of employees covered by an agreement which the Secretary of Labor 
finds to be a collective bargaining agreement between employee 
representatives and one or more employers, if there is evidence that 
dependent care benefits were the subject of good faith bargaining 
between such employee representatives and such employer or employers.''
    Subsec. (d)(6), (7). Pub. L. 99-514, Sec. 1151(c)(5)(B), 
redesignated par. (7) as (6) and struck out former par. (6) which read 
as follows: ``Notification of eligible employees.--Reasonable 
notification of the availability and terms of the program shall be 
provided to eligible employees.''
    Subsec. (d)(8). Pub. L. 99-514, Sec. 1151(f), added par. (8).
    Subsec. (e)(8). Pub. L. 99-514, Sec. 1163(b), added par. (8).
    1984--Subsec. (b)(2). Pub. L. 98-369, Sec. 474(r)(6)(A), substituted 
``section 21(d)(2)'' for ``section 44A(e)(2)''.
    Subsec. (e)(1). Pub. L. 98-369, Sec. 474(r)(6)(B), substituted 
``section 21(b)(2)'' for ``section 44A(c)(2)''.
    Subsec. (e)(2). Pub. L. 98-369, Sec. 474(r)(6)(C), substituted 
``section 32(c)(2)'' for ``section 43(c)(2)''.
    1983--Subsec. (d)(1). Pub. L. 97-448, Sec. 101(e)(1)(C), substituted 
``paragraphs (2) through (7)'' for ``paragraphs (2) through (6)''.
    Subsec. (d)(2). Pub. L. 97-448, Sec. 101(e)(1)(A), added par. (2). 
Former par. (2) redesignated (3).
    Subsec. (d)(3). Pub. L. 97-448, Sec. 101(e)(1)(A), (B), redesignated 
former par. (2) as (3) and substituted ``employees described in 
paragraph (2), or their dependents'' for ``employees who are officers, 
owners, or highly compensated, or their dependents''. Former par. (3) 
redesignated (4).
    Subsec. (d)(4) to (7). Pub. L. 97-448, Sec. 101(e)(1)(A), 
redesignated former pars. (3) to (6) as (4) to (7), respectively.
    Subsec. (e)(7). Pub. L. 97-448, Sec. 101(e)(2), substituted ``shall 
be allowed to the employee under any other section of this chapter for 
any amount excluded from the gross income of the employee'' for ``shall 
be allowed under any other section of this chapter for any amount 
excluded from income''.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-188 applicable to years beginning after 
Dec. 31, 1996, except that in determining whether an employee is a 
highly compensated employee for years beginning in 1997, such amendment 
to be treated as having been in effect for years beginning in 1996, see 
section 1431(d)(1) of Pub. L. 104-188, set out as a note under section 
414 of this title.


                    Effective Date of 1989 Amendments

    Amendment by Pub. L. 101-239 effective, except as otherwise 
provided, as if included in the provision of the Technical and 
Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such 
amendment relates, see section 7817 of Pub. L. 101-239, set out as a 
note under section 1 of this title.
    Amendment by section 203(a)(1), (2) of Pub. L. 101-140 effective as 
if included in section 1151 of Pub. L. 99-514, see section 203(c) of 
Pub. L. 101-140, set out as a note under section 79 of this title.
    Section 204(a)(3)(D) of Pub. L. 101-140 provided that: ``Section 
129(d)(8) (as redesignated by subparagraph (A)) shall apply to plan 
years beginning after December 31, 1989.''
    Section 204(d)(1), (2) of Pub. L. 101-140 provided that:
    ``(1) The amendments made by subsections (a)(1), (a)(2), and (b)(2) 
[amending this section and section 414 of this title] shall apply to 
years beginning after December 31, 1988.
    ``(2) The amendments made by subsection (a)(3) [amending this 
section] shall apply to plan years beginning after December 31, 1989.''


                    Effective Date of 1988 Amendments

    Amendment by section 1011B(a)(14), (15), (18), (30), (31)(A), (c)(1) 
of 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.
    Section 1011B(c)(2)(C) of Pub. L. 100-647 provided that:
    ``(i) Except as provided in this subparagraph, the amendments made 
by this paragraph [amending this section and section 6051 of this title] 
shall apply to taxable years beginning after December 31, 1987.
    ``(ii) A taxpayer may elect to have the amendment made by 
subparagraph (A) [amending this section] apply to taxable years 
beginning in 1987.
    ``(iii) In the case of a taxpayer not making an election under 
clause (ii), any dependent care assistance provided in a taxable year 
beginning in 1987 with respect to which reimbursement was not received 
in such taxable year shall be treated as provided in the taxpayer's 
first taxable year beginning after December 31, 1987.''
    Section 3021(d) of Pub. L. 100-647 provided that:
    ``(1) Subsection (a).--The amendments made by subsection (a) 
[amending this section and sections 89, 410, 4976, 6039D, and 6652 of 
this title] shall take effect as if included in the amendments made by 
section 1151 of the Tax Reform Act of 1986 [Pub. L. 99-514, see 
Effective Date note below]; except that the amendment made by subsection 
(a)(8) [amending section 89 of this title] shall apply to testing years 
beginning after December 31, 1989.
    ``(2) Subsection (b).--The amendments made by subsection (b) 
[amending sections 89 and 414 of this title] shall apply to years 
beginning after December 31, 1986.''
    Amendment by Pub. L. 100-485 applicable to taxable years beginning 
after Dec. 31, 1988, see section 703(d) of Pub. L. 100-485, set out as a 
note under section 21 of this title.


                    Effective Date of 1986 Amendment

    Amendment by section 104(b)(1) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1986, see section 151(a) of Pub. 
L. 99-514, set out as a note under section 1 of this title.
    Amendment by section 1114(b)(4) of Pub. L. 99-514 applicable to 
years beginning after Dec. 31, 1987, see section 1114(c)(2) of Pub. L. 
99-514, set out as a note under section 414 of this title.
    Amendment by section 1151(c)(5), (f), (g)(4) of Pub. L. 99-514 
applicable, with certain qualifications and exceptions, to years 
beginning after Dec. 31, 1988, see section 1151(k) of Pub. L. 99-514, as 
amended, set out as a note under section 79 of this title.
    Section 1163(c) of Pub. L. 99-514 provided that: ``The amendments 
made by this section [amending this section] shall apply to taxable 
years beginning after December 31, 1986.''


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 applicable to taxable years beginning 
after Dec. 31, 1983, and to carrybacks from such years, see section 
475(a) of Pub. L. 98-369, set out as a note under section 21 of this 
title.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 97-448 effective, except as otherwise provided, 
as if it had been included in the provision of the Economic Recovery Tax 
Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 
109 of Pub. L. 97-448, set out as a note under section 1 of this title.


                             Effective Date

    Section applicable to taxable years beginning after Dec. 31, 1981, 
see section 124(f) of Pub. L. 97-34, set out as an Effective Date of 
1981 Amendment note under section 21 of this title.


                               Regulations

    Secretary of the Treasury or his delegate to issue before Feb. 1, 
1988, final regulations to carry out amendments made by section 1114 of 
Pub. L. 99-514, see section 1141 of Pub. L. 99-514, set out as a note 
under section 401 of this title.


 Nonenforcement of Amendment Made by Section 1151 of Pub. L. 99-514 for 
                            Fiscal Year 1990

    No monies appropriated by Pub. L. 101-136 to be used to implement or 
enforce section 1151 of Pub. L. 99-514 or the amendments made by such 
section, see section 528 of Pub. L. 101-136, set out as a note under 
section 89 of this title.


           Plan Amendments Not Required Until January 1, 1998

    For provisions directing that if any amendments made by subtitle D 
[Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to 
any plan or annuity contract, such amendment shall not be required to be 
made before the first day of the first plan year beginning on or after 
Jan. 1, 1998, see section 1465 of Pub. L. 104-188, 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 [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 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.

                  Section Referred to in Other Sections

    This section is referred to in sections 21, 51A, 414, 3121, 3306, 
3401, 6039D, 6051 of this title; title 42 section 409.
