Irc Section 414

Section 414 c applies to controlled group of trades or businesses whether or not incorporated such as partnerships and proprietorships.

Irc section 414. This snapshot discusses how to identify highly compensated employees in a plan s initial plan year or in a short plan year based on the definition of an hce is in irc section 414 q. 414 c 1 in general except as provided in paragraph 2 for purposes of sections 401 408 k 408 p 410 411 415 and 416 under regulations prescribed by the secretary all employees of trades or businesses whether or not incorporated which are under common control shall be treated as employed by a single employer. However the irs has not issued regulations addressing some of the terms and rules provided for indian tribal government plans.

Since section 1563 was written only for corporations treasury regulations 1 414 c 1 through 1 414 c 5 mirror the section 1563 controlled group principles. Governmental plans are defined in irc section 414 d. Irc section 414 plr.

The definition of an hce is set forth in irc section 414 q. Indian tribal governments may maintain governmental plans. For purposes of subparagraph a all plans maintained by employers who are treated as a single employer under subsection b c m or o of section 414 shall be treated as 1 plan except that a plan described in clause i of section 410 b 6 c shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan as determined under clause ii of such section.

An employer provided limit is any limit on the elective deferrals an employee is permitted to make without regard to section 414 v and this section that is contained in the terms of the plan but which is not required under the internal revenue code. Identifying a plan s highly compensated employees hces is critical to the operation of a qualified retirement plan. For example section 414 s is referred to in many of the nondiscrimination provisions applicable to pension profit sharing and stock bonus plans qualified under section 401 a.

8179 53 fr 6605 mar. In accordance with section 414 s 1 this section defines compensation as compensation within the meaning of section 415 c 3. Irc section 414 d governmental plans for tribes.

For rules relating to the application of sections 401 408 k 410 411 415 and 416 with respect to two or more trades or businesses which are under common control see section 414 c and the regulations thereunder.