
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: 5USC8440]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
            CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM
 
                   SUBCHAPTER III--THRIFT SAVINGS PLAN
 
Sec. 8440. Tax treatment of the Thrift Savings Fund

    (a) For purposes of the Internal Revenue Code of 1986--
        (1) the Thrift Savings Fund shall be treated as a trust 
    described in section 401(a) of such Code which is exempt from 
    taxation under section 501(a) of such Code;
        (2) any contribution to, or distribution from, the Thrift 
    Savings Fund shall be treated in the same manner as contributions to 
    or distributions from such a trust; and
        (3) subject to section 401(k)(4)(B) of such Code and any dollar 
    limitation on the application of section 402(a)(8) of such Code, 
    contributions to the Thrift Savings Fund shall not be treated as 
    distributed or made available to an employee or Member nor as a 
    contribution made to the Fund by an employee or Member merely 
    because the employee or Member has, under the provisions of this 
    subchapter and section 8351 of this title, an election whether the 
    contribution will be made to the Thrift Savings Fund or received by 
    the employee or Member in cash.

    (b) Nondiscrimination requirements.--Notwithstanding any other 
provision of law, the Thrift Savings Fund is not subject to the 
nondiscrimination requirements applicable to arrangements described in 
section 401(k) of title 26, United States Code, or to matching 
contributions (as described in section 401(m) of title 26, United States 
Code), so long as it meets the requirements of this section.
    (c) Subsection (a) shall not be construed to provide that any amount 
of the employee's or Member's basic pay which is contributed to the 
Thrift Savings Fund shall not be included in the term ``wages'' for the 
purposes of section 209 of the Social Security Act or section 3121(a) of 
the Internal Revenue Code of 1986.

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100 Stat. 
557; amended Pub. L. 100-202, Sec. 101(m) [title VI, Sec. 624(b)], Dec. 
22, 1987, 101 Stat. 1329-390, 1329-430; Pub. L. 100-647, title I, 
Sec. 1011A(m)(2), Nov. 10, 1988, 102 Stat. 3483; by Pub. L. 102-378, 
Sec. 2(69), Oct. 2, 1992, 106 Stat. 1355; Pub. L. 103-353, Sec. 5(e)(5), 
Oct. 13, 1994, 108 Stat. 3174.)

                       References in Text

    The Internal Revenue Code of 1986, referred to in subsecs. (a) and 
(c), is classified generally to Title 26, Internal Revenue Code.
    Section 209 of the Social Security Act, referred to in subsec. (c), 
is classified to section 409 of Title 42, The Public Health and Welfare.


                               Amendments

    1994--Subsecs. (a), (c). Pub. L. 103-353 substituted ``Internal 
Revenue Code of 1986'' for ``Internal Revenue Code of 1954''.
    1992--Subsec. (a)(3). Pub. L. 102-378 inserted ``section 
401(k)(4)(B) of such Code and'' after ``subject to''.
    1988--Subsec. (a)(3). Pub. L. 100-647, which directed the insertion 
of ``, 401(k)(4)(B) of such Code,'' after ``subsection (b)'', could not 
be executed because of previous amendment by Pub. L. 100-202, 
Sec. 101(m) [title VI, Sec. 624(b)(1)] which struck out ``subsection 
(b)''. See 1987 Amendment note below.
    1987--Subsec. (a)(3). Pub. L. 100-202, Sec. 101(m) [title VI, 
Sec. 624(b)(1)], struck out ``the provisions of subsection (b) and'' 
after ``subject to''.
    Subsec. (b). Pub. L. 100-202, Sec. 101(m) [title VI, 
Sec. 624(b)(2)], added subsec. (b) and struck out former subsec. (b) 
which consisted of pars. (1) and (2) providing that subsec. (a)(3) not 
apply to the Thrift Savings Fund unless the Fund meets the 
antidiscrimination requirements applicable to arrangements described in 
section 401(k) of title 26 and to matching contributions.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-353 effective with respect to reemployments 
initiated on or after the first day after the 60-day period beginning 
Oct. 13, 1994, with transition rules, see section 8 of Pub. L. 103-353, 
set out as an Effective Date note under section 4301 of Title 38, 
Veterans' Benefits.


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-378 effective Nov. 10, 1988, see section 
9(b)(8) of Pub. L. 102-378, set out as a note under section 6303 of this 
title.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective 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 Title 26, Internal Revenue Code.

                  Section Referred to in Other Sections

    This section is referred to in section 8437 of this title.
