Individual retirement accounts

What this document is

26 U.S.C. s. 408: Individual retirement accounts is a state statute published by U.S. Government Publishing Office (govinfo.gov). It is one of the documents that insurance license exam questions are written from, including life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 26 U.S.C. § 408, subsection (a)(1) (Form of IRA contributions)

  “Except in the case of a rollover contribution described in subsection (d)(3) or in section 402(c), 403(a)(4), 403(b)(8), or 457(e)(16), no contribution will be accepted unless it is in cash, and contributions will not be accepted for the taxable year on behalf of any individual in excess of the...”

• 26 U.S.C. § 408, subsection (o)(4)(C) (Penalty for reporting contributions not made)

  “(C) Penalty for reporting contributions not made For penalty where individual reports designated nondeductible contributions not made, see section 6693(b).”

• 26 U.S.C. § 408: subsection (n) (Bank)

  “For purposes of subsection (a)(2), the term "bank" means - (1) any bank (as defined in section 581), (2) an insured credit union (within the meaning of paragraph (6) or (7) of section 101 of the Federal Credit Union Act), and (3) a corporation which, under the laws of the State of its...”

• 26 U.S.C. § 408: subsection (p) (Simple Retirement Accounts)

  “For purposes of this subsection, the term "qualified salary reduction arrangement" means a written arrangement of an eligible employer under which - (i) an employee eligible to participate in the arrangement may elect to have the employer make payments - (I) as elective employer contributions to a...”

• 26 U.S.C. § 408: subsection (k)(1)(B) (Simplified employee pension defined)

  “(B) if such account or annuity is part of a top-heavy plan (as defined in section 416), with respect to which the requirements of section 416(c)(2) are met.”

• 26 U.S.C. § 408: subsection (q)(1) (deemed IRAs under qualified employer plans)

  “then such account or annuity shall be treated for purposes of this title in the same manner as an individual retirement plan and not as a qualified employer plan (and contributions to such account or annuity as contributions to an individual retirement plan and not to the qualified employer plan).”

• 26 U.S.C. § 408(a)(3) - prohibition on investing trust funds in life insurance contracts

  “No part of the trust funds will be invested in life insurance contracts.”

Practice this material

Questions about this source

More Federal sources sources

• Coverage for Pre-existing Conditions (Affordable Care Act) - HealthCare.govFederal guidance
• 20 C.F.R. § 404.1520 -- Evaluation of Disability in General (the five-step sequential evaluation process)Regulation
• Parts of Medicare (Medicare & You / medicare.gov)Federal guidance
• Continuation of Health Coverage (COBRA) - U.S. Department of LaborReference
• Portability of Health Coverage (HIPAA) - U.S. Department of LaborReference
• Fair Credit Reporting Act - 15 U.S.C. § 1681a (Definitions)State statute
• 15 U.S.C. s. 1681b: FCRA permissible purposes of consumer reportsState statute
• 15 U.S.C. s. 1681c: FCRA requirements relating to obsolete information in consumer reportsState statute