5 U.S.C. § 8440 | Tax treatment of the Thrift Savings Fund

(a)

For purposes of the Internal Revenue Code of 1986—

(1)

the Thrift Savings Fund shall be treated as a trust described in section 401(a) of such Code which is exempt from taxation under section 501(a) of such Code;

(2)

any contribution to, or distribution from, the Thrift Savings Fund shall be treated in the same manner as contributions to or distributions from such a trust; and

(3)

section 8351 of this title subject to section 401(k)(4)(B) of such Code and any dollar limitation on the application of section 402(a)(8) of such Code, contributions to the Thrift Savings Fund shall not be treated as distributed or made available to an employee or Member nor as a contribution made to the Fund by an employee or Member merely because the employee or Member has, under the provisions of this subchapter and , an election whether the contribution will be made to the Thrift Savings Fund or received by the employee or Member in cash.

(b)

Nondiscrimination requirements .—

section 401(k) of title 26 section 401(m) of title 26Notwithstanding any other provision of law, the Thrift Savings Fund is not subject to the nondiscrimination requirements applicable to arrangements described in , United States Code, or to matching contributions (as described in , United States Code), so long as it meets the requirements of this section.

(c)

Subsection (a) shall not be construed to provide that any amount of the employee’s or Member’s basic pay which is contributed to the Thrift Savings Fund shall not be included in the term “wages” for the purposes of section 209 of the Social Security Act or section 3121(a) of the Internal Revenue Code of 1986.

Pub. L. 99–335, title I, § 101(a)June 6, 1986100 Stat. 557 Pub. L. 100–202, § 101(m) [title VI, § 624(b)]Dec. 22, 1987101 Stat. 1329–390 Pub. L. 100–647, title I, § 1011A(m)(2)Nov. 10, 1988102 Stat. 3483 Pub. L. 102–378, § 2(69)Oct. 2, 1992106 Stat. 1355 Pub. L. 103–353, § 5(e)(5)Oct. 13, 1994108 Stat. 3174(Added , , ; amended , , , 1329–430; , , ; , , ; , , .)

Editorial Notes

References in Text

The Internal Revenue Code of 1986, referred to in subsecs. (a) and (c), is classified generally to Title 26, Internal Revenue Code.

section 409 of Title 42Section 209 of the Social Security Act, referred to in subsec. (c), is classified to , The Public Health and Welfare.

Amendments

Pub. L. 103–3531994—Subsecs. (a), (c). substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”.

Pub. L. 102–3781992—Subsec. (a)(3). inserted “section 401(k)(4)(B) of such Code and” after “subject to”.

Pub. L. 100–647 Pub. L. 100–202, § 101(m) [title VI, § 624(b)(1)]1988—Subsec. (a)(3). , which directed the insertion of “, 401(k)(4)(B) of such Code,” after “subsection (b)”, could not be executed because of previous amendment by which struck out “subsection (b)”. See 1987 Amendment note below.

Pub. L. 100–202, § 101(m) [title VI, § 624(b)(1)]1987—Subsec. (a)(3). , struck out “the provisions of subsection (b) and” after “subject to”.

Pub. L. 100–202, § 101(m) [title VI, § 624(b)(2)]section 401(k) of title 26Subsec. (b). , added subsec. (b) and struck out former subsec. (b) which consisted of pars. (1) and (2) providing that subsec. (a)(3) not apply to the Thrift Savings Fund unless the Fund meets the antidiscrimination requirements applicable to arrangements described in and to matching contributions.

Statutory Notes and Related Subsidiaries

Effective Date of 1994 Amendment

Pub. L. 103–353Oct. 13, 1994section 8 of Pub. L. 103–353 section 4301 of Title 38Amendment by effective with respect to reemployments initiated on or after the first day after the 60-day period beginning , with transition rules, see , set out as an Effective Date note under , Veterans’ Benefits.

Effective Date of 1992 Amendment

Pub. L. 102–378Nov. 10, 1988section 9(b)(8) of Pub. L. 102–378 section 6303 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–647 Pub. L. 99–514 section 1019(a) of Pub. L. 100–647 section 1 of Title 26Amendment by effective as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under , Internal Revenue Code.