### Question
Can you define what qualified transfer means?


### Answer
**Qualified transfer** is defined as the following in *26 U.S.C. § 420*:

> a transfer—



(A) of excess pension assets of a defined benefit plan to a health benefits account, or an applicable life insurance account, which is part of such plan,



(B) which does not contravene any other provision of law, and



(C) with respect to which the following requirements are met in connection with the plan—



(i) the use requirements of subsection (c)(1),



(ii) the vesting requirements of subsection (c)(2), and



(iii) the minimum cost requirements of subsection (c)(3)

#### Citation:
  - *26 U.S.C. § 420*
  - 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 E-Treatment of Transfers to Retiree Health Accounts**

