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§ 4979. Tax on certain excess contributions
(a)
General rule
In the case of any plan, there is hereby imposed a tax for the taxable year equal to 10 percent of the sum of—
(d)
Excess aggregate contribution
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).
(e)
Plan
For purposes of this section, the term “plan” means—
(1)
a plan described in section
401
(a) which includes a trust exempt from tax under section
501
(a),
(4)
a simplified employee pension of an employer which satisfies the requirements of section
408
(k), and
Such term includes any plan which, at any time, has been determined by the Secretary to be such a plan.
(f)
No tax where excess distributed within 21/2 months of close of year
(1)
In general
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) is distributed (or, if forfeitable, is forfeited) before the close of the first 21/2 months of the following plan year.
(2)
Year of inclusion
(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.
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