Reg. § 1.411(a)-1 Minimum vesting standards; general rules.
(a) In general A plan is not a qualified plan (and a trust forming a part of such plan is not a qualified trust) unless—
(1) The plan provides that an employee's right to his normal retirement benefit (see ) is nonforfeitable (see ) upon and after the attainment of normal retirement age (see ),
(2) The plan provides that an employee's rights in his accrued benefit derived from his own contributions (see ) are nonforfeitable at all times, and
(3) The plan satisfies the requirements of—
(A) Section and (relating to vesting in accrued benefit derived from employer contributions), and
(B) In the case of a defined benefit plan, section and (relating to accrued benefit).
(b) Organization of regulations relating to minimum vesting standards
(1) General rules This section prescribes general rules relating to the minimum vesting standards provided by section .
(2) Effective dates provides rules under section 1017 of the Employee Retirement Income Security Act of 1974 relating to effective dates under section .
(3) Employer contributions provides rules under section relating to vesting in employer-derived accrued benefits.
(4) Certain forfeitures provides rules under section relating to certain permitted forfeitures, suspensions, etc. under qualified plans.
(5) Nonforfeitable percentage provides rules under section relating to service included in the determination of an employee's nonforfeitable percentage under section and .
(6) Years of service; break in service provides rules under section (5) and (6) of the Internal Revenue Code of 1954 relating to years of service and breaks in service. Rules prescribed by the Secretary of Labor, relating to years of service and breaks in service under part 2 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 are provided under 29 CFR Part 2530 (Department of Labor regulations relating to minimum standards for employee pension benefit plans).
(7) Definitions and special rules provides definitions and special rules under section (7), (8), and (9), for purposes of section and the regulations thereunder.
(8) Changes in vesting schedule provides rules under section relating to changes in the vesting schedule of a plan.
(9) [Reserved]
(10) Accrued benefits See for rules under section relating to accrued benefit requirements under defined benefit plans.
(11) Allocation of accrued benefits See for rules under section relating to allocation of accrued benefits between employer and employee contributions.
(12) Discrimination, etc See for rules relating to the coordination of section with section (relating to discrimination) and other rules under section .
(c) Application of standards to certain plans
(1) General rule Except as provided in subparagraph (2) of this paragraph, section does not apply to—
(i) A governmental plan (within the meaning of section and the regulations thereunder),
(ii) A church plan (within the meaning of section and the regulations thereunder) which has not made the election provided by section and the regulations thereunder,
(iii) A plan which has not provided for employer contributions at any time after September 2, 1974, and
(iv) A plan established and maintained by a society, order, or association described in section (8) or (9), if no part of the contributions to or under such plan are made by employers of participants in such plan.
(2) Vesting requirements A plan described in subparagraph (1) of this paragraph shall, for purposes of section , be treated as meeting the requirements of section if such plan meets the vesting requirements resulting from the application of section and section as in effect on September 1, 1974.
(d) Supersession Sections through 11.411(d)-3, inclusive, of the Temporary Income Tax Regulations under the Employee Retirement Income Security Act of 1974 are superseded by this section and through .
(Sec. 411 (88 Stat. 901; 26 U.S.C. 411))
[T.D. 7501, 42 FR 42324, Aug. 23, 1977, as amended by T.D. 9849, 84 FR 9234, Mar. 14, 2019]