applicable dividend
Defined in 1 place of the United States Code.
The term “applicable dividend” means any dividend which, in accordance with the plan provisions—
(i) is paid in cash to the participants in the plan or their beneficiaries,
(ii) is paid to the plan and is distributed in cash to participants in the plan or their beneficiaries not later than 90 days after the close of the plan year in which paid,
(iii) is, at the election of such participants or their beneficiaries—
(I) payable as provided in clause (i) or (ii), or
(II) paid to the plan and reinvested in qualifying employer securities, or
(iv) is used to make payments on a loan described in subsection (a)(9) the proceeds of which were used to acquire the employer securities (whether or not allocated to participants) with respect to which the dividend is paid.
Source
- 2001–present26 U.S.C. § 404Internal Revenue Code · Deduction for contributions of an employer to an employees trust or annuity plan and compensation under a deferred-payment plan · under this chapter
The term “applicable dividend” means any dividend which, in accordance with the plan provisions—
(i) is paid in cash to the participants in the plan or their beneficiaries,
(ii) is paid to the plan and is distributed in cash to participants in the plan or their beneficiaries not later than 90 days after the close of the plan year in which paid, or
(iii) is used to make payments on a loan described in subsection (a)(9) the proceeds of which were used to acquire the employer securities (whether or not allocated to participants) with respect to which the dividend is paid.
Source
- 1994–200126 U.S.C. § 404Internal Revenue Code · Deduction for contributions of an employer to an employees trust or annuity plan and compensation under a deferred-payment plan · under this chapter