Simplified Employee Pension

March 13, 2024

3701 / What is a simplified employee pension?

<div class="Section1">Editor’s Note: Under the SECURE Act 2.0, employers can allow employees participating in SIMPLE or SEP plans to have their salary reduction contributions deposited into Roth accounts (these contributions are considered taxable income and included in boxes 1,3, and 5 of the employee's W-2, as well as box 12 with code F (SEPs) or code S (SIMPLE IRAs)).  Employer contributions to these Roth accounts are not subject to federal tax withholding, FICA or FUTA, and should be reported on Form 1099-R for the year they are allocated to the participant's account.<div class="Section1"> A simplified employee pension (SEP) is a traditional individual retirement account or individual retirement annuity ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3641">3641</a>) that is adopted by a business to provide retirement benefits for the business owners and employees and may accept an expanded rate of contributions over traditional IRAs.<a href="#_ftn1" name="_ftnref1">1</a> The SEP IRA is owned by the employee. The SEP rules permit an employer to contribute a limited amount of money each year on behalf of its employees. A self-employed individual may contribute to his/her own SEP. All contributions must be in the form of money; property cannot be contributed. Although contributions are not required every year, any contributions made by an employer in a given year must be based on a written formula and must not discriminate in favor of highly-compensated employees. More specifically, in order for an IRA to qualify as a SEP, certain requirements must be satisfied: <blockquote>(1)   Participation: The employer must contribute to the SEP of each employee (including certain “leased” employees, see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3929">3929</a>) who is at least 21 years old, has performed services for the employer during the year for which the contribution is made (including any such employee who, because of death or termination of employment, is no longer employed on the date contributions are actually made), and for at least three of the immediately preceding five years has received at least $750 in compensation for 2023 and 2024 ($650 for 2021-2022,<a href="#_ftn2" name="_ftnref2">2</a> $600 in 2015-2020, and $550 in 2010-2014) from the employer for the year.<a href="#_ftn3" name="_ftnref3">3</a> These participation rules also apply to employees who are subject to the minimum distribution requirements ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3686">3686</a>). The employer may not require that an employee be employed as of a particular date in the year.<a href="#_ftn4" name="_ftnref4">4</a> Employees covered by a collective bargaining agreement may be excluded from participation if retirement benefits have been the subject of good faith bargaining. Similarly, nonresident aliens may be excluded if they received no income from the employer that is considered to be from U.S. sources.<a href="#_ftn5" name="_ftnref5">5</a> (2)   Nondiscrimination requirement: Employer contributions must not discriminate in favor of any highly compensated employee ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3930">3930</a>). Employees who are excluded from participation as nonresident aliens, or because they are covered by a collective bargaining agreement, are not considered for purposes of determining whether there is discrimination.<a href="#_ftn6" name="_ftnref6">6</a> Unless employer contributions bear a uniform relationship to total compensation (or earned income in the case of self-employed individuals) they are considered discriminatory. But compensation or earned income in excess of $350,000 in 2025 (projected) ($345,000 in 2024, $330,000 for 2023, $305,000 for 2022, $290,000 in 2021, $285,000 in 2020, and $280,000 in 2019)<a href="#_ftn7" name="_ftnref7">7</a> is not to be taken into account for these purposes.<a href="#_ftn8" name="_ftnref8">8</a> This compensation limit is indexed for inflation.<a href="#_ftn9" name="_ftnref9">9</a> Presumably, a constant percentage of compensation would meet the nondiscrimination requirement. A rate of contribution that decreases as compensation increases will be considered uniform.<a href="#_ftn10" name="_ftnref10">10</a> The IRS has informally approved a method of contribution that in effect requires that an identical dollar amount be contributed on behalf of all participants.<a href="#_ftn11" name="_ftnref11">11</a> SEPs can be integrated under the rules applicable to qualified plans ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3863">3863</a>).<a href="#_ftn12" name="_ftnref12">12</a> (3)   Contributions based on written allocation formula: Employer contributions must be determined under a definite written allocation formula that specifies the manner in which the allocation is computed and what requirements an employee must satisfy to share in the allocation. But the employer may vary the allocation formula from year to year so long as there is a timely amendment to the plan that indicates the new formula.<a href="#_ftn13" name="_ftnref13">13</a> No minimum funding standards are imposed.</blockquote> <hr> Planning Point: The allocation formula may be written to provide that contributions be based on a fixed percentage of the employee’s compensation, a fixed dollar amount for all participants, or that contributions be determined each year by the employer (a discretionary contribution). Discretionary contribution formulas are the most common. The employer may uniformly vary the percentage of compensation contributed year by year or contribute nothing for a particular year, but the SEP document must state how the employer contribution will be allocated. An employer may vary the formula or percentage from year to year (for example, to change from a fixed contribution to a discretionary contribution), provided the SEP is timely amended.<a href="#_ftn14" name="_ftnref14">14</a> <hr> <blockquote>(4)   No withdrawal restrictions: The employer contribution may not be conditioned on the employee’s keeping any part of it in the pension and the employer may not prohibit withdrawals from the plan.<a href="#_ftn15" name="_ftnref15">15</a> (5)   Top heavy plans: If the SEP is top-heavy plan ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3917">3917</a>), it is subject to the minimum contribution rules applicable to such plans ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3922">3922</a>).<a href="#_ftn16" name="_ftnref16">16</a> Employer contributions to a SEP may be taken into account in determining whether qualified plans of the employer are top-heavy ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3917">3917</a>).</blockquote> Should an eligible employee or former employee not have an IRA on the date contributions are made, the employer is required to establish one on the employee’s behalf.<a href="#_ftn17" name="_ftnref17">17</a> A SEP plan need not be established until the contribution is made for the year (i.e., it may be established after the end of the year, see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3704">3704</a>). A controlled group of corporations or employers under common control or employers composing an “affiliated service group” ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="8964">8964</a>, Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3935">3935</a>) are treated as a single employer. Thus, if contributions are made to SEPs for employees in one business, they may have to be made for employees of another business if the two are under common control or constitute an affiliated service group.<a href="#_ftn18" name="_ftnref18">18</a> SEPs are treated as defined contribution plans for purposes of the overall limits on employer contributions ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3868">3868</a>).<a href="#_ftn19" name="_ftnref19">19</a> For plan years beginning in 2024, the annual additions limit for defined contribution plans as a whole is the lesser of $70,000 in 2025 (projected) ($69,000 in 2024, $66,000 in 2023, $61,000 in 2022, $58,000 in 2021 and $57,000 in 2020) or 100 percent of compensation.<a href="#_ftn20" name="_ftnref20">20</a> Any contribution by an employer to a SEP must be aggregated with all other employer contributions by that employer to defined contribution plans for purposes of the Section 415(c) limit on annual additions. Catch-up contributions, which are available only in plans that provide for elective deferral contributions ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3705">3705</a>, Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3706">3706</a>, Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3752">3752</a>), are not available in SEPs but are available in grandfathered (pre-1997) salary reduction SEPs. </div><div class="refs"> <hr align="left" size="1" width="33%"> <a href="#_ftnref1" name="_ftn1">1</a>.   IRC § 408(k). <a href="#_ftnref2" name="_ftn2">2</a>.   Notice 2017-64, Notice 2018-83, Notice 2019-59, Notice 2020-79, Notice 2021-61, Notice 2022-55, Notice 2023-75. <a href="#_ftnref3" name="_ftn3">3</a>.   IRC § 408(k)(2)(C); IR-2009-94, IR-2014-99, IR-2015-118. <a href="#_ftnref4" name="_ftn4">4</a>.   Prop. Treas. Reg. § 1.408-7(d)(3). <a href="#_ftnref5" name="_ftn5">5</a>.   IRC § 408(k)(2). <a href="#_ftnref6" name="_ftn6">6</a>.   IRC § 408(k)(3). <a href="#_ftnref7" name="_ftn7">7</a>.   Notice 2017-64, Notice 2018-83, Notice 2019-59, Notice 2020-79, Notice 2021-61, Notice 2022-55, Notice 2023-75. <a href="#_ftnref8" name="_ftn8">8</a>.   IRC § 408(k)(3)(C). <a href="#_ftnref9" name="_ftn9">9</a>.   IRC §§ 408(k)(8), 401(a)(17). <a href="#_ftnref10" name="_ftn10">10</a>.   Prop. Treas. Reg. § 1.408-8(c). <a href="#_ftnref11" name="_ftn11">11</a>.   Let. Rul. 8824019. <a href="#_ftnref12" name="_ftn12">12</a>.   IRC § 408(k)(3)(D); TAMRA ’88, § 1011(f)(7). <a href="#_ftnref13" name="_ftn13">13</a>.   Prop. Treas. Reg. § 1.408-7(e). <a href="#_ftnref14" name="_ftn14">14</a>.   IRS Examining Process Guide (Chapter 72, Section 17). <a href="#_ftnref15" name="_ftn15">15</a>.   IRC § 408(k)(4). <a href="#_ftnref16" name="_ftn16">16</a>.   IRC §§ 408(k)(1)(B), 416(c)(2). <a href="#_ftnref17" name="_ftn17">17</a>.   Prop. Treas. Reg. § 1.408-7(d)(2). <a href="#_ftnref18" name="_ftn18">18</a>.   IRC §§ 414(b), 414(c), 414(m); Let. Rul. 8041045. <a href="#_ftnref19" name="_ftn19">19</a>.   IRC § 415(a)(2)(C). <a href="#_ftnref20" name="_ftn20">20</a>.   IRC § 415(c)(2). </div></div>

March 13, 2024

3703 / What are the limits with respect to employer contributions to a simplified employee pension (SEP)?

<div class="Section1"> Contributions made by an employer to an employee’s SEP are excludable from the employee’s income to the extent that they do not exceed the lesser of: (1) 25 percent of compensation from the employer (determined without regard to that employer’s contribution to the SEP) or (2) $70,000 in 2025 (projected).<a href="#_ftn1" name="_ftnref1">1</a> Compensation is capped by the limits in effect under IRC Sec. 414(s) ($350,000 in 2025 (projected), $345,000 in 2024, $330,000 for 2023, $305,000 for 2022) ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3867">3867</a>).<a href="#_ftn2" name="_ftnref2">2</a> Despite the $350,000 limit on compensation, the maximum permitted SEP contribution is capped at $70,000 for 2025 (projected) (where $70,000 is less than $350,000 × 25 percent). <hr> Planning Point: Interestingly, “compensation” is defined for these purposes as amounts actually includible in the employee’s gross income; consequently, “elective deferrals” by an employee (i.e. amounts contributed to a qualified retirement plan) would not be considered in the “lesser of” calculation above as compensation.<a href="#_ftn3" name="_ftnref3">3</a> This definition of compensation, however, differs from the definition of compensation used to determine the employer’s deduction when contributing to an employee’s SEP, which does consider elective deferrals when determining income ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3704">3704</a>). <hr> When determining the contribution limits of a “self-employed” individual, “compensation” is the individual’s net earnings from self-employment. If an individual is employed by more than one employer (other than employers who are under common control or compose a controlled or affiliated service group) during the tax year, the 25 percent limit is applied separately to each employer.<a href="#_ftn4" name="_ftnref4">4</a> Under proposed regulations, contributions by (and compensation received from) employers who are under common control or who are members of a controlled group must be aggregated for purposes of this limit.<a href="#_ftn5" name="_ftnref5">5</a> It would seem that the IRS may also require such aggregation where the employers are members of an affiliated service group. If an individual is self-employed with respect to more than one trade or business, the maximum contribution will be the lesser of the amount determined by applying the limit separately to each trade or business or the amount determined by applying the limit as if the trades or businesses constituted one employer.<a href="#_ftn6" name="_ftnref6">6</a> In an integrated plan, the Section 415 dollar limit must be reduced in the case of a highly compensated employee ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3930">3930</a>).<a href="#_ftn7" name="_ftnref7">7</a> Contributions are not included in an employee’s gross income tax and are not subject to income tax withholding, FICA, or FUTA, unless they are excess contributions.<a href="#_ftn8" name="_ftnref8">8</a> <div class="refs"> <hr align="left" size="1" width="33%"> <a href="#_ftnref1" name="_ftn1">1</a>.   IRC §§ 402(h)(2), 415(c)(1)(A); Notice 2023-75. <a href="#_ftnref2" name="_ftn2">2</a>.   Notice 2020-79, Notice 2021-61, Notice 2022-55, Notice 2023-75. <a href="#_ftnref3" name="_ftn3">3</a>.   IRC § 402(h)(2)(B). <a href="#_ftnref4" name="_ftn4">4</a>.   IRC § 219(b)(2). <a href="#_ftnref5" name="_ftn5">5</a>.   Prop. Treas. Reg. § 1.219-3(c). <a href="#_ftnref6" name="_ftn6">6</a>.   Prop. Treas. Reg. § 1.219-3(c)(2). <a href="#_ftnref7" name="_ftn7">7</a>.   IRC § 402(h)(2)(B). <a href="#_ftnref8" name="_ftn8">8</a>.   IRC §§ 3401(a)(12)(C), 3121(a)(5)(C), 3306(b)(5)(C), 408(k)(6)(C). See also Rev. Rul. 65-209, 1965-2 CB 414. </div></div>

March 13, 2024

3705 / What is a SAR-SEP? What requirements must be met if a simplified employee pension is offered on a cash or a deferred basis?

<div class="Section1">A SAR-SEP is a simplified employee pension that is offered on a salary reduction (i.e., a cash or deferred) basis. In other words, the plan permits individual employees to elect to have contributions made to the SEP or to receive the contribution in cash. A SEP must otherwise meet the requirements in Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3701">3701</a>, as well as those explained below, and the plan had to be established before 1997. No new SAR-SEPs are permitted after 1996, but those in effect prior to 1997 may continue to operate, receive contributions, and add new employees.<a href="#_ftn1" name="_ftnref1">1</a><div class="Section1"> A SAR-SEP may be maintained by an employer who had 25 or fewer employees who were eligible to participate in the plan at any time during the prior taxable year. The amount that an employee chooses to defer and contribute to the SEP is referred to as an elective deferral. Elective deferrals ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3760">3760</a>) are subject to the same cap ($23,500 in 2025 (projected), $23,000 in 2024, $22,500 in 2023, $20,500 in 2022, $19,500 in 2020-2021, and $19,000 in 2019) as elective deferrals to IRC Section 401(k) plans.<a href="#_ftn2" name="_ftnref2">2</a> Elective deferrals also are subject to FICA and FUTA withholding.<a href="#_ftn3" name="_ftnref3">3</a> Certain lower income taxpayers may be eligible to claim the saver’s credit for elective deferrals to a SAR-SEP ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3648">3648</a>). In addition to the elective deferrals described above, a SAR-SEP may permit additional elective deferrals by individuals age 50 or over, referred to as “catch-up contributions.”<a href="#_ftn4" name="_ftnref4">4</a> The dollar limit on catch-up contributions to a SAR-SEP is $7,500 in 2025 (projected), $7,500 in 2024, $7,500 in 2023, $6,500 in 2020-2022 and $6,000 in 2017-2019.<a href="#_ftn5" name="_ftnref5">5</a> For details on the requirements for catch-up contributions, see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3761">3761</a>. Contributions made by an employer on behalf of an employee to a SAR-SEP are excludable from the employee’s income to the extent that they do not exceed the lesser of 25 percent of “compensation” from the employer, or $70,000 in 2025 (projected).<a href="#_ftn6" name="_ftnref6">6</a> As a result of an apparent oversight by Congress, “compensation,” for this purpose only, is includable compensation (i.e., does not include elective deferrals).<a href="#_ftn7" name="_ftnref7">7</a> The election to defer salary into a SAR-SEP account is available only if (1) at least 50 percent of the employees of the employer eligible to participate elect to have amounts contributed to the SEP; and (2) the deferral percentage for each highly compensated eligible employee does not exceed the average deferral percentage for all non-highly compensated eligible employees multiplied by 125 percent.<a href="#_ftn8" name="_ftnref8">8</a> Catch-up contributions are not taken into account for this purpose.<a href="#_ftn9" name="_ftnref9">9</a> Compensation or earned income in excess of $350,000 (in 2025 (projected)) is not to be taken into account in determining an employee’s deferral percentage.<a href="#_ftn10" name="_ftnref10">10</a> This amount is indexed for inflation. A SAR-SEP will not be treated as failing to meet the deferral percentage requirement if, before the end of the following plan year, any excess contribution (i.e., in excess of 125 percent), plus any income attributable to such excess, is distributed or treated as distributed and then contributed by the employee to the plan.<a href="#_ftn11" name="_ftnref11">11</a> Such a recharacterization of contributions is not permitted in the absence of regulations.<a href="#_ftn12" name="_ftnref12">12</a> Unless the excess is distributed within two and one-half months after the end of the plan year, the employer will be subject to a 10 percent excise tax.<a href="#_ftn13" name="_ftnref13">13</a> Any excess amounts so distributed generally are treated as received by the recipient in the taxable year for which the original contribution was made; if total excess contributions distributed to a recipient under the plan for a plan year are less than $100, the distributions will be treated as received in the taxable year of distribution.<a href="#_ftn14" name="_ftnref14">14</a> Since an employer may not force an employee to take a distribution of excess deferrals because the contributions are held in an individual retirement plan controlled by the employee, the Secretary of Treasury has the authority to prescribe necessary rules to ensure that excess contributions are distributed, including reporting requirements and the requirement that contributions may not be withdrawn until a determination is made that the deferral percentage test has been satisfied.<a href="#_ftn15" name="_ftnref15">15</a> Any distribution or transfer before such a determination has been made will be subject to ordinary income tax as well as to the early distribution penalty, regardless of whether the penalty tax would otherwise apply.<a href="#_ftn16" name="_ftnref16">16</a> A plan will not be treated as violating any applicable limit of IRC Section 408(k) merely on account of the making of (or right to make) catch-up contributions by participants age 50 or over under the provisions of IRC Section 414(v), so long as a universal availability requirement is met.<a href="#_ftn17" name="_ftnref17">17</a> In addition, catch-up contributions are not taken into account for purposes of the employer deduction limitation explained in Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3701">3701</a>.<a href="#_ftn18" name="_ftnref18">18</a> See Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3761">3761</a> for details on the requirements for catch-up contributions. State or local governments and other tax-exempt organizations may not offer SAR-SEPs.<a href="#_ftn19" name="_ftnref19">19</a> </div><div class="refs"> <hr align="left" size="1" width="33%"> <a href="#_ftnref1" name="_ftn1">1</a>.   IRC § 408(k)(6)(H). <a href="#_ftnref2" name="_ftn2">2</a>.   IRC § 402(g)(1); Notice 2018-83, Notice 2019-59, Notice 2020-79, Notice 2021-61, Notice 2022-55. <a href="#_ftnref3" name="_ftn3">3</a>.   IRC §§ 3121(a)(5)(C), 3306(b)(5)(C). <a href="#_ftnref4" name="_ftn4">4</a>.   IRC §§ 414(v)(1), 414(v)(6)(A)(iv). <a href="#_ftnref5" name="_ftn5">5</a>.   IRC § 414(v)(2)(B)(i); Notice 2016-62, Notice 2017-64, Notice 2018-83, Notice 2019-59, Notice 2020-79, Notice 2021-61, Notice 2022-55, Notice 2023-75. <a href="#_ftnref6" name="_ftn6">6</a>.   IRC §§ 402(h)(2)(A), 415(c)(1)(A); Notice 2023-75. <a href="#_ftnref7" name="_ftn7">7</a>.   IRC § 402(h)(2)(A). <a href="#_ftnref8" name="_ftn8">8</a>.   IRC § 408(k)(6). <a href="#_ftnref9" name="_ftn9">9</a>.   IRC § 414(v)(3)(A). <a href="#_ftnref10" name="_ftn10">10</a>.   IRC § 408(k)(6)(D); Notice 2022-55. <a href="#_ftnref11" name="_ftn11">11</a>.   IRC §§ 408(k)(6)(C), 401(k)(8). <a href="#_ftnref12" name="_ftn12">12</a>.   General Explanation of TRA ’86, p. 639. <a href="#_ftnref13" name="_ftn13">13</a>.   IRC § 4979. <a href="#_ftnref14" name="_ftn14">14</a>.   IRC § 4979(f)(2). <a href="#_ftnref15" name="_ftn15">15</a>.   IRC § 408(k)(6)(F). <a href="#_ftnref16" name="_ftn16">16</a>.   IRC § 408(d)(7). <a href="#_ftnref17" name="_ftn17">17</a>.   IRC § 414(v)(3)(B). <a href="#_ftnref18" name="_ftn18">18</a>.   IRC § 414(v)(3)(A). <a href="#_ftnref19" name="_ftn19">19</a>.   IRC § 408(k)(6)(E). </div></div>

March 13, 2024

3704 / Can an employer deduct contributions made to a simplified employee pension?

<div class="Section1">Employer contributions for a calendar year are deductible for the tax year in which the calendar year ends. An employer may elect to use its taxable year instead of the calendar year for purposes of determining contributions to a SEP.<a href="#_ftn1" name="_ftnref1">1</a> Employer contributions made on account of a calendar year or an employer’s taxable year may be made as late as the due date (plus extensions) of the employer’s tax return for such year and be treated as if contributed on the last day of that year.<a href="#_ftn2" name="_ftnref2">2</a> The due date for C corporations is March 15th following the close of such year and for self-employed individuals is April 15th following the close of such year.<a href="#_ftn3" name="_ftnref3">3</a> For tax years beginning after December 31, 2015, returns of partnerships and S corporations made on the basis of a calendar year are due March 15, and those made on the basis of a fiscal year are due on or before the 15th day of the third month following the close of the fiscal year.<div class="Section1"> <blockquote>Example 1. Employer is a sole proprietor whose tax year is the calendar year. Contributions made to a SEP IRA for calendar year 2024 (including contributions made in 2025 by the 2024 tax filing deadline in April of 2025) are deductible for the 2024 tax year. Example 2. Employer is a fiscal year taxpayer whose tax year ends June 30. The SEP IRA it maintains is on a calendar year. If employer makes contributions to the SEP IRA for calendar year 2024, employer may deduct such contributions on its tax return for tax year ending June 30, 2025.</blockquote> The maximum employer deduction amount is 25 percent of compensation for the calendar year (or, if applicable, the taxable year).<a href="#_ftn4" name="_ftnref4">4</a> “Compensation,” for this purpose, includes elective deferrals of the employee and certain other contributions made on a pre-tax basis.<a href="#_ftn5" name="_ftnref5">5</a> Contributions in excess of the 25 percent deductible limit may be carried over and deducted in succeeding years.<a href="#_ftn6" name="_ftnref6">6</a> However, the employer is subject to an excise tax on nondeductible contributions ( Q <a href="javascript:void(0)" class="accordion-cross-reference" id="3939">3939</a>). If the employer also contributes to a qualified profit sharing or stock bonus plan, the 25 percent deductible limit for that plan is reduced by the amount of the allowable deduction for contributions to the SEPs with respect to participants in the stock bonus or profit sharing plan.<a href="#_ftn7" name="_ftnref7">7</a> If the employer also contributes to any other type of qualified plan, the SEP is treated as a separate profit sharing or stock bonus plan for purposes of applying the combination deduction limit of IRC Section 404(a)(7) (<a href="http://pro.moss.nuco.com/taxfacts2018/tfempb/p9-pps/empded/Pages/3898-00-tf1.aspx"> Q </a><a href="javascript:void(0)" class="accordion-cross-reference" id="3938">3938</a>).<a href="#_ftn8" name="_ftnref8">8</a> </div><div class="refs"> <hr align="left" size="1" width="33%"> <a href="#_ftnref1" name="_ftn1">1</a>.   IRC § 404(h)(1)(A). <a href="#_ftnref2" name="_ftn2">2</a>.   IRC § 404(h)(1)(B). <a href="#_ftnref3" name="_ftn3">3</a>.   IRC §§ 6012(a), 6072. <a href="#_ftnref4" name="_ftn4">4</a>.   IRC § 404(h)(1)(C). <a href="#_ftnref5" name="_ftn5">5</a>.   IRC § 404(a)(12), 404(n). <a href="#_ftnref6" name="_ftn6">6</a>.   IRC § 404(h)(1)(C). <a href="#_ftnref7" name="_ftn7">7</a>.   IRC § 404(h)(2). <a href="#_ftnref8" name="_ftn8">8</a>.   IRC § 404(h)(3). </div></div>