### Question
How is the term qualified transfer defined?


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

> a transfer—


(A) of excess pension assets of a defined benefit plan to a health benefits account which is part of such plan in a taxable year beginning after December 31, 1990,


(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 benefits 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**

