Treasury Regulations (26 C.F.R.)
26 CFR § 1.414(r)-4
Qualified separate line of business—fifty-employee and notice requirements.
# (a) In general.
This section sets forth the rules for determining whether a separate line of business (as determined under § 1.414(r)-3) satisfies the 50-employee and notice requirements of § 1.414(r-1(b)(2)(iv) (B) and (C), respectively.
# (b) Fifty-employee requirement.
A separate line of business satisfies the 50-employee requirement of § 1.414(r)-1(b)(2)(iv)(B) for a testing year only if on each day of the testing year there are at least 50 employees who provide services to the separate line of business for the testing year and do not provide services to any other separate line of business of the employer for the testing year within the meaning of § 1.414(r)-3(c)(5). For this purpose, all employees of the employer are taken into account (including collectively bargained employees), except employees described in § 1.414(q)-1, Q&A-9(g)(i.e., the same employees, subject to certain modifications, who are excluded in determining the number of employees in the top-paid group under section 414(q)(4)).
# (c)
Notice requirement—(1) General rule. A separate line of business satisfies the notice requirement of § 1.414(r)-1(b)(2)(iv)(C) for a testing year only if the employer notifies the Secretary that it treats itself as operating qualified separate lines of business for the testing year in accordance with § 1.414(r)-1(b). The employer's notice for the testing year must specify each of the qualified separate lines of business operated by the employer and the section or sections of the Code to be applied on a qualified-separate-line-of-business basis. See § 1.414(r)-1(c). The employer's notice must take the form, must be filed at the time and the place, and must contain any additional information prescribed by the Commissioner in revenue procedures, notices, or other guidance of general applicability. No other notice, whether actual or constructive, satisfies the requirement of this paragraph (c).
(2) Effect of notice. Once an employer has provided the notice prescribed in this paragraph (c) for a testing year, and the time for filing the notice for the testing year has expired without its being modified, withdrawn, or revoked, the employer is deemed to have irrevocably elected to apply the requirements of the section or sections of the Code specified in the notice separately with respect to the employees of each qualified separate line of business specified in the notice for all plan years that begin in the testing year. The Commissioner may, in revenue procedures, notices, or other guidance of general applicability, provide for exceptions to the rule in this paragraph (c)(2) as well as for the effect that will be given to the employer's notice for purposes of any future testing year.
[T.D. 8376, 56 FR 63446, Dec. 4, 1991, as amended by T.D. 8548, 59 FR 32919, June 27, 1994]
Source: view the official text
In this part (40 sections)
- 1.412(i)-1 · Certain insurance contract plans.
- 1.413-1 · Special rules for collectively bargained plans.
- 1.413-2 · Special rules for plans maintained by more than one employer.
- 1.414(b)-1 · Controlled group of corporations.
- 1.414(c)-1 · Commonly controlled trades or businesses.
- 1.414(c)-2 · Two or more trades or businesses under common control.
- 1.414(c)-3 · Exclusion of certain interests or stock in determining…
- 1.414(c)-4 · Rules for determining ownership.
- 1.414(c)-5 · Certain tax-exempt organizations.
- 1.414(c)-6 · Effective date.
- 1.414(e)-1 · Definition of church plan.
- 1.414(f)-1 · Definition of multiemployer plan.
- 1.414(g)-1 · Definition of plan administrator.
- 1.414(l)-1 · Mergers and consolidations of plans or transfers of plan…
- 1.414(q)-1 · Highly compensated employee.
- 1.414(q)-1T · Highly compensated employee (temporary).
- 1.414(r)-0 · Table of contents.
- 1.414(r)-1 · Requirements applicable to qualified separate lines of…
- 1.414(r)-2 · Line of business.
- 1.414(r)-3 · Separate line of business.
- 1.414(r)-4 · Qualified separate line of business—fifty-employee and…
- 1.414(r)-5 · Qualified separate line of business—administrative…
- 1.414(r)-6 · Qualified separate line of business—administrative…
- 1.414(r)-7 · Determination of the employees of an employer's qualified…
- 1.414(r)-8 · Separate application of section 410(b).
- 1.414(r)-9 · Separate application of section 401(a)(26).
- 1.414(r)-10 · Separate application of section 129(d)(8). [Reserved]
- 1.414(r)-11 · Definitions and special rules.
- 1.414(s)-1 · Definition of compensation.
- 1.414(v)-1 · Catch-up contributions.
- 1.414(v)-2 · Catch-up contributions required to be designated Roth…
- 1.414(w)-1 · Permissible withdrawals from eligible automatic…
- 1.415(a)-1 · General rules with respect to limitations on benefits and…
- 1.415(b)-1 · Limitations for defined benefit plans.
- 1.415(b)-2 · Multiple annuity starting dates. [Reserved]
- 1.415(c)-1 · Limitations for defined contribution plans.
- 1.415(c)-2 · Compensation.
- 1.415(d)-1 · Cost-of-living adjustments.
- 1.415(f)-1 · Aggregating plans.
- 1.415(g)-1 · Disqualification of plans and trusts.