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Treas. Reg. § 1.401(a)-2

Impossibility of diversion under qualified plan or trust.
eCFR amendment effective 2016-05-18 · current · last amended by T.D. 9319, 72 FR 16894, Apr. 5, 2007
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(a) General rule. Section 401(a)(2) requires that in order for a trust to be qualified, it must be impossible under the trust instrument (in the taxable year and at any time thereafter before the satisfaction of all liabilities to employees or their beneficiaries covered by the trust) for any part of the trust corpus or income to be used for, or diverted to, purposes other than for the exclusive benefit of those employees or their beneficiaries. Section 1.401-2, a pre-ERISA regulation, provides rules under section 401(a)(2) and that regulation is applicable except as otherwise provided.
(b) Section 415 suspense account. Notwithstanding paragraph (a) of this section, a plan, or trust forming part of a plan, may provide for the reversion to the employer, upon termination of the plan, of amounts contributed to the plan that exceed the limitations imposed under section 415(c), to the extent set forth in rules prescribed by the Commissioner in revenue rulings, notices, or other guidance published in the Internal Revenue Bulletin (see § 601.601(d)(2) of this chapter).
Source credit, amendments & notes

[T.D. 7748, 46 FR 1696, Jan. 7, 1981, as amended by T.D. 9319, 72 FR 16894, Apr. 5, 2007]

Treas. Reg. § 1.401(a)-2 — Impossibility of diversion under qualified plan or trust. · eCFR amendment effective 2016-05-18 · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr26-1.401%28a%29-2&asof=2011-03-15 · printed Oct 16, 2026
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  • (a) General rule.
  • (b) Section 415 suspense account.
Implements
I.R.C. § 401 Qualified pension, profit-sharing, and stock bonus plans
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Treasury Decisions
  • T.D. 9319 Apr 30, 2007 — Final regulations contain amendments to the regulations under section 415 of the Code regarding limitation on benefits and contributions under qualified plans.… (b)

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Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Apr 1, 1997Mar 31, 2008CFR 2007 annual edition (revised as of 2007-04-01) run 127T.D. 7748, 46 FR 1696, Jan. 7, 1981View
Apr 1, 2008currenteCFR amendment effective 2016-05-18 run 2T.D. 9319, 72 FR 16894, Apr. 5, 2007View · Redline (sign in)
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