rural cooperative plan

(7) Rural cooperative plan For purposes of this subsection— (A) In general The term “rural cooperative plan” means any pension plan— (i) which is a defined contribution plan (as defined in section 414(i) ), and (ii) which is established and maintained by a rural cooperative. (B) Rural cooperative defined For purposes of subparagraph (A), the term “rural cooperative” means— (i) any organization which— (I) is engaged primarily in providing electric service on a mutual or cooperative basis, or (II) is engaged primarily in providing electric service to the public in its area of service and which is exempt from tax under this subtitle or which is a State or local government (or an agency or instrumentality thereof), other than a municipality (or an agency or instrumentality thereof), (ii) any organization described in paragraph (4) or (6) of section 501(c) and at least 80 percent of the members of which are organizations described in clause (i), (iii) a cooperative telephone company described in section 501(c)(12), (iv) any organization which— (I) is a mutual irrigation or ditch company described in section 501(c)(12) (without regard to the 85 percent requirement thereof), or (II) is a district organized under the laws of a State as a municipal corporation for the purpose of irrigation, water conservation, or drainage, and (v) an organization which is a national association of organizations described in clause (i), (ii),, (iii), or (iv). (C) Special rule for certain distributions A rural cooperative plan which includes a qualified cash or deferred arrangement shall not be treated as violating the requirements of section 401(a) or of paragraph (2) merely by reason of a hardship distribution or a distribution to a participant after attainment of age 59½. For purposes of this section, the term “hardship distribution” means a distribution described in paragraph (2)(B)(i)(IV) (without regard to the limitation of its application to profit-sharing or stock bonus plans).

Source

26 USC § 401(k)(7)


Scoping language

For purposes of this subsection
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