TITLE 26. INTERNAL REVENUE CODE § 4980. Tax on reversion of qualified plan assets to employer., 26 USCS § 4980


Summary

(a) Imposition of tax. There is hereby imposed a tax of 20 percent of the amount of any employer reversion from a qualified plan.
(b) Liability for tax. The tax imposed by subsection (a) shall be paid by the employer maintaining the plan.
(c) Definitions and special rules. For purposes of this section—
(1) Qualified plan. The term “qualified plan” means any plan meeting the requirements of section 401(a) or 403(a) [26 USCS § 401(a) or 403(a)], other than—
(A) a plan maintained by an employer if such employer has, at all times, been exempt from tax under subtitle A [26 USCS §§ 1 et seq.], or
(B) a governmental plan (within the meaning of section 414(d) [26 USCS § 414(d)]).
Such term shall include any plan which, at any time, has been determined by the Secretary to be a qualified plan.
(2) Employer reversion.
(A) In general. The term “employer reversion” means the amount of cash and the fair market value of other property received (directly or indirectly) by an employer from the qualified plan.
(B)