### Question
How does Special Rules define small employer?


### Answer
Under *26 U.S.C. § 414*, **small employer** is defined as:

> given such term by section 4980D(d)(2), except that such section shall be applied by substituting "500" for "50" each place it appears.

#### Citation:
  - *26 U.S.C. § 414*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart B-Special Rules**

