{"identifier":"/us/usc/t26/s45AA","title":26,"num":"\u00a7\u202f45AA.","heading":"Military spouse retirement plan eligibility credit for small employers","text":"\u00a7\u202f45AA.\nMilitary spouse retirement plan eligibility credit for small employers\n(a)\nIn general\nFor purposes of section 38, in the case of any eligible small employer, the military spouse retirement plan eligibility credit determined under this section for any taxable year is an amount equal to the sum of\u2014\n(1) $200 with respect to each military spouse who is an employee of such employer and who participates in an eligible defined contribution plan of such employer at any time during such taxable year, plus\n(2) so much of the contributions made by such employer (other than an elective deferral (as defined in section 402(g)(3))\n1\n1 So in original. Probably should be followed by another closing parenthesis.\n(b)\nLimitation\nAn individual shall only be taken into account as a military spouse under subsection (a) for the taxable year which includes the date on which such individual began participating in the eligible defined contribution plan of the employer and the 2 succeeding taxable years.\n(c)\nEligible small employer\nFor purposes of this section, the term \u201celigible small employer\u201d means an eligible employer (as defined in section 408(p)(2)(C)(i)(I).\n2\n2 So in original. Another closing parenthesis probably should precede the period.\n(d)\nMilitary spouse\nFor purposes of this section\u2014\n(1)\nIn general\nThe term \u201cmilitary spouse\u201d means, with respect to any employer, any individual who is married (within the meaning of section 7703 as of the first date that the employee is employed by the employer) to an individual who is a member of the uniformed services (as defined\nsection 101(a)(5) of title 10\n(2)\nExclusion of highly compensated employees\nWith respect to any employer, the term \u201cmilitary spouse\u201d shall not include any individual if such individual is a highly compensated employee of such employer (within the meaning of section 414(q)).\n(e)\nEligible defined contribution plan\nFor purposes of this section, the term \u201celigible defined contribution plan\u201d means, with respect to any eligible small employer, any defined contribution plan (as defined in section 414(i)) of such employer if, under the terms of such plan\u2014\n(1) military spouses employed by such employer are eligible to participate in such plan not later than the date which is 2 months after the date on which such individual begins employment with such employer, and\n(2) military spouses who are eligible to participate in such plan\u2014\n(A) are immediately eligible to receive an amount of employer contributions under such plan which is not less the amount of such contributions that a similarly situated participant who is not a military spouse would be eligible to receive under such plan after 2 years of service, and\n(B) immediately have a nonforfeitable right to the employee\u2019s accrued benefit derived from employer contributions under such plan.\n(f)\nAggregation rule\nAll persons treated as a single employer under subsection (b), (c), (m), or (\no","url":"https://projectusc.org/usc/t26/s45AA.html","content":[{"t":"sec","id":"/us/usc/t26/s45AA","children":[{"t":"num","text":"\u00a7\u202f45AA."},{"t":"heading","text":"Military spouse retirement plan eligibility credit for small employers"},{"t":"subsec","id":"/us/usc/t26/s45AA/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"For purposes of section 38, in the case of any eligible small employer, the military spouse retirement plan eligibility credit determined under this section for any taxable year is an amount equal to the sum of\u2014"},{"t":"para","id":"/us/usc/t26/s45AA/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" $200 with respect to each military spouse who is an employee of such employer and who participates in an eligible defined contribution plan of such employer at any time during such taxable year, plus","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45AA/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" so much of the contributions made by such employer (other than an elective deferral (as defined in section 402(g)(3))\u202f","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be followed by another closing parenthesis."},{"t":"text","text":"\u202fSo in original. Probably should be followed by another closing parenthesis.","tail":" to all such plans with respect to such employee during such taxable year as do not exceed $300."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45AA/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Limitation"},{"t":"content","children":[{"t":"p","text":"An individual shall only be taken into account as a military spouse under subsection (a) for the taxable year which includes the date on which such individual began participating in the eligible defined contribution plan of the employer and the 2 succeeding taxable years.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45AA/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Eligible small employer"},{"t":"content","children":[{"t":"p","text":"For purposes of this section, the term \u201celigible small employer\u201d means an eligible employer (as defined in section 408(p)(2)(C)(i)(I).","children":[{"t":"ref","text":"2"},{"t":"num","text":"2","tail":"\u202fSo in original. Another closing parenthesis probably should precede the period."},{"t":"text","text":"\u202fSo in original. Another closing parenthesis probably should precede the period."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45AA/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Military spouse"},{"t":"chapeau","text":"For purposes of this section\u2014"},{"t":"para","id":"/us/usc/t26/s45AA/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The term \u201cmilitary spouse\u201d means, with respect to any employer, any individual who is married (within the meaning of section 7703 as of the first date that the employee is employed by the employer) to an individual who is a member of the uniformed services (as defined ","children":[{"t":"ref","text":"section 101(a)(5) of title 10","href":"/us/usc/t10/s101/a/5","tail":", United States Code) serving on active duty. For purposes of this section, an employer may rely on an employee\u2019s certification that such employee\u2019s spouse is a member of the uniformed services if such certification provides the name, rank, and service branch of such spouse."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45AA/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Exclusion of highly compensated employees"},{"t":"content","children":[{"t":"p","text":"With respect to any employer, the term \u201cmilitary spouse\u201d shall not include any individual if such individual is a highly compensated employee of such employer (within the meaning of section 414(q)).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45AA/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Eligible defined contribution plan"},{"t":"chapeau","text":"For purposes of this section, the term \u201celigible defined contribution plan\u201d means, with respect to any eligible small employer, any defined contribution plan (as defined in section 414(i)) of such employer if, under the terms of such plan\u2014"},{"t":"para","id":"/us/usc/t26/s45AA/e/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" military spouses employed by such employer are eligible to participate in such plan not later than the date which is 2 months after the date on which such individual begins employment with such employer, and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45AA/e/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" military spouses who are eligible to participate in such plan\u2014"},{"t":"subpara","id":"/us/usc/t26/s45AA/e/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" are immediately eligible to receive an amount of employer contributions under such plan which is not less the amount of such contributions that a similarly situated participant who is not a military spouse would be eligible to receive under such plan after 2 years of service, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45AA/e/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" immediately have a nonforfeitable right to the employee\u2019s accrued benefit derived from employer contributions under such plan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45AA/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Aggregation rule"},{"t":"content","children":[{"t":"p","text":"All persons treated as a single employer under subsection (b), (c), (m), or (","children":[{"t":"text","text":"o","tail":") of section 414 shall be treated as one employer for purposes of this section."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}