### Question
How does Definitions and Special Rules define pension plan contract?


### Answer
Under *26 U.S.C. § 818*, **pension plan contract** is defined as:

> any contract—



(1) entered into with trusts which (as of the time the contracts were entered into) were deemed to be trusts described in section 401(a) and exempt from tax under section 501(a) (or trusts exempt from tax under section 165 of the Internal Revenue Code of 1939 or the corresponding provisions of prior revenue laws)

#### Citation:
  - *26 U.S.C. § 818*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter L-Insurance Companies > PART I-LIFE INSURANCE COMPANIES > Subpart E-Definitions and Special Rules**

