### Question
How is the term pre-ERISA money purchase plan defined?


### Answer
The term **pre-ERISA money purchase plan** is defined in *26 U.S.C. § 401* as the following:

> a pension plan—


(A) which is a defined contribution plan (as defined in section 414(i)),


(B) which was in existence on June 27, 1974, and which, on such date, included a salary reduction arrangement, and


(C) under which neither the employee contributions nor the employer contributions may exceed the levels provided for by the contribution formula in effect under the plan on such date

#### Citation:
  - *26 U.S.C. § 401*
  - 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 A-General Rule**

