Tax on nondeductible contributions to qualified employer plans

In the case of any qualified employer plan, there is hereby imposed a tax equal to 10 percent of the nondeductible contributions under the plan (determined as of the close of the taxable year of the employer). The tax imposed by this section shall be paid by the employer making the contributions. For purposes of this section— The term “nondeductible contributions” means, with respect to any qualified employer plan, the sum of— the excess (if any) of— the amount determined under this subsection for the preceding taxable year reduced by the sum of— For purposes of paragraph (1), the amount allowable as a deduction under section 404 for any taxable year shall be treated as— In determining the amount of nondeductible contributions for any taxable year, there shall not be taken into account any contribution for such taxable year which is distributed to the employer in a distribution described in section 4980(c)(2)(B)(ii) if such distribution is made on or before the last day on which a contribution may be made for such taxable year under section 404(a)(6). For purposes of paragraph (1), if— The term “nondeductible contribution” shall not include any contribution made for a taxable year beginning before January 1, 1987. In determining the amount of nondeductible contributions for any taxable year, there shall not be taken into account— In determining the amount of nondeductible contributions for any taxable year, an employer may elect for such year not to take into account any contributions to a defined benefit plan except, in the case of a multiemployer plan, to the extent that such contributions exceed the full-funding limitation (as defined in section 431(c)(6)). For purposes of this paragraph, the deductible limits under section 404(a)(7) shall first be applied to amounts contributed to defined contribution plans and then to amounts described in this paragraph. If an employer makes an election under this paragraph for a taxable year, paragraph (6) shall not apply to such employer for such taxable year. For purposes of this section— The term “qualified employer plan” means— The term “qualified employer plan” does not include a plan described in subparagraph (A) or (B) of section 4980(c)(1). In the case of a plan which provides contributions or benefits for employees some or all of whom are self-employed individuals within the meaning of section 401(c)(1), the term “employer” means the person treated as the employer under section 401(c)(4).