### Question
What is the definition of qualified replacement plan?


### Answer
The definition of **qualified replacement plan** is as follows in *26 U.S.C. § 4980*:

> a qualified plan established or maintained by the employer in connection with a qualified plan termination (hereinafter referred to as the "replacement plan") with respect to which the following requirements are met:


#### (A) Participation requirement


At least 95 percent of the active participants in the terminated plan who remain as employees of the employer after the termination are active participants in the replacement plan

#### Citation:
  - *26 U.S.C. § 4980*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 43-QUALIFIED PENSION, ETC., PLANS**

