[Code of Federal Regulations]
[Title 26, Volume 5]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.401-5]

[Page 23-24]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.401-5  Period for which requirements of section 401(a) (3), 

(4), (5), and (6) are applicable with respect to plans put into effect 
before September 2, 
          1974.

    A pension, profit-sharing, stock bonus, or annuity plan shall be 
considered as satisfying the requirements of section 401(a) (3), (4), 
(5), and (6) for the period beginning with the date on which it was put 
into effect and ending with the 15th day of the third month following 
the close of the taxable year of the employer in which the plan was put 
into effect, if all the provisions of the plan which are necessary to 
satisfy such requirements are in effect by the end of such period and 
have been made effective for all purposes with respect to the whole of 
such period. Thus, if an employer in 1954 adopts such a plan as of 
January 1, 1954, and makes a return on the basis of the calendar year, 
he will have until March 15, 1955, to amend his plan so as to make it 
satisfy the requirements of section 401(a) (3), (4), (5), and (6) for 
the calendar year 1954 provided that by March 15, 1955, all provisions 
of such plan necessary to satisfy such requirements are in effect and 
have been made retroactive for all purposes to January 1, 1954, the 
effective date of the plan. If an employer is on a fiscal year basis, 
for example, April 1 to March 31, and in 1954 adopts such a plan 
effective as of April 1, 1954, he will have until June 15, 1955, to 
amend his plan so as to make it satisfy the requirements of section 
401(a) (3), (4), (5), and (6) for the fiscal year beginning April 1, 
1954, provided that by June 15, 1955, all provisions of such plan 
necessary to satisfy such requirements are in effect and have been made 
retroactive for all purposes to April 1, 1954, the effective date of the 
plan. It should be noted that under section 401(b) the period in which a 
plan may

[[Page 24]]

be amended to qualify under section 401(a) ends before the date on which 
taxpayers other than corporations are required to file income tax 
returns. See section 6072. This section shall not apply to any pension, 
profit-sharing, stock bonus, or annuity plan put into effect after 
September 1, 1974, and shall not apply with respect to any disqualifying 
provision to which Sec. 1.401(b)-1 applies.

[T.D. 6500, 25 FR 11674, Nov. 26, 1960; as amended by T.D. 7436, 41 FR 
42653, Sept. 28, 1976]