
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: 26USC4974]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
               CHAPTER 43--QUALIFIED PENSION, ETC., PLANS
 
Sec. 4974. Excise tax on certain accumulations in qualified 
        retirement plans
        

(a) General rule

    If the amount distributed during the taxable year of the payee under 
any qualified retirement plan or any eligible deferred compensation plan 
(as defined in section 457(b)) is less than the minimum required 
distribution for such taxable year, there is hereby imposed a tax equal 
to 50 percent of the amount by which such minimum required distribution 
exceeds the actual amount distributed during the taxable year. The tax 
imposed by this section shall be paid by the payee.

(b) Minimum required distribution

    For purposes of this section, the term ``minimum required 
distribution'' means the minimum amount required to be distributed 
during a taxable year under section 401(a)(9), 403(b)(10), 408(a)(6), 
408(b)(3), or 457(d)(2), as the case may be, as determined under 
regulations prescribed by the Secretary.

(c) Qualified retirement plan

    For purposes of this section, the term ``qualified retirement plan'' 
means--
        (1) a plan described in section 401(a) which includes a trust 
    exempt from tax under section 501(a),
        (2) an annuity plan described in section 403(a),
        (3) an annuity contract described in section 403(b),
        (4) an individual retirement account described in section 
    408(a), or
        (5) an individual retirement annuity described in section 
    408(b).

Such term includes any plan, contract, account, or annuity which, at any 
time, has been determined by the Secretary to be such a plan, contract, 
account, or annuity.

(d) Waiver of tax in certain cases

    If the taxpayer establishes to the satisfaction of the Secretary 
that--
        (1) the shortfall described in subsection (a) in the amount 
    distributed during any taxable year was due to reasonable error, and
        (2) reasonable steps are being taken to remedy the shortfall,

the Secretary may waive the tax imposed by subsection (a) for the 
taxable year.

(Added Pub. L. 93-406, title II, Sec. 2002(e), Sept. 2, 1974, 88 Stat. 
967; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 
1976, 90 Stat. 1834; Pub. L. 95-600, title I, Sec. 157(i)(1), Nov. 6, 
1978, 92 Stat. 2808; Pub. L. 99-514, title XI, Sec. 1121(a)(1), title 
XVIII, Sec. 1852(a)(7)(B), (C), Oct. 22, 1986, 100 Stat. 2464, 2866.)


                               Amendments

    1986--Pub. L. 99-514, Sec. 1121(a)(1), amended section generally, 
substituting provisions imposing an excise tax on certain accumulations 
in qualified retirement plans for provisions imposing an excise tax on 
certain accumulations in individual retirement accounts and annuities.
    Subsec. (a). Pub. L. 99-514, Sec. 1852(a)(7)(B), substituted 
``section 408(a)(6) or 408(b)(3)'' for ``section 408(a)(6) or (7), or 
408(b)(3) or (4)''.
    Subsec. (b). Pub. L. 99-514, Sec. 1852(a)(7)(C), substituted 
``section 408(a)(6) or 408(b)(3)'' for ``section 408(a)(6) or (7) or 
408(b)(3) or (4)''.
    1978--Subsec. (c). Pub. L. 95-600 added subsec. (c).
    1976--Subsec. (b). Pub. L. 94-455 struck out ``or his delegate'' 
after ``Secretary''.


                    Effective Date of 1986 Amendment

    Amendment by section 1121(a)(1) of Pub. L. 99-514 applicable to 
years beginning after Dec. 31, 1988, with special provisions for plans 
maintained pursuant to collective bargaining agreements ratified before 
Mar. 1, 1986, and transition rules, see section 1121(d) of Pub. L. 99-
514, set out as a note under section 401 of this title.
    Amendment by section 1852(a)(7)(B), (C) of Pub. L. 99-514 effective, 
except as otherwise provided, as if included in the provisions of the 
Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment 
relates, see section 1881 of Pub. L. 99-514, set out as a note under 
section 48 of this title.


                    Effective Date of 1978 Amendment

    Section 157(i)(2) of Pub. L. 95-600 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply to taxable 
years beginning after December 31, 1975.''


                             Effective Date

    Section effective Jan. 1, 1975, see section 2002(i)(2) of Pub. L. 
93-406, set out as an Effective Date note under section 4973 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 72, 408, 6058 of this title; 
title 23 section 181.
