§ 4974. Excise tax on certain accumulations in qualified retirement plans
(a)
General rule
If the amount distributed during the taxable year of the payee under any qualified retirement plan or any eligible deferred compensation plan (as defined in section
457
(b)) is less than the minimum required distribution for such taxable year, there is hereby imposed a tax equal to 50 percent of the amount by which such minimum required distribution exceeds the actual amount distributed during the taxable year. The tax imposed by this section shall be paid by the payee.
(b)
Minimum required distribution
For purposes of this section, the term “minimum required distribution” means the minimum amount required to be distributed during a taxable year under section
401
(a)(9),
403
(b)(10),
408
(a)(6),
408
(b)(3), or
457
(d)(2), as the case may be, as determined under regulations prescribed by the Secretary.
(c)
Qualified retirement plan
For purposes of this section, the term “qualified retirement plan” means—
(1)
a plan described in section
401
(a) which includes a trust exempt from tax under section
501
(a),
Such term includes any plan, contract, account, or annuity which, at any time, has been determined by the Secretary to be such a plan, contract, account, or annuity.
(d)
Waiver of tax in certain cases
If the taxpayer establishes to the satisfaction of the Secretary that—
(1)
the shortfall described in subsection (a) in the amount distributed during any taxable year was due to reasonable error, and
the Secretary may waive the tax imposed by subsection (a) for the taxable year.