### Question
How is the "qualified participant" defined?


### Answer
The term **qualified participant** is defined in *26 U.S.C. § 4980* as follows -

> an individual who—



(i) is an active participant,



(ii) is a participant or beneficiary in pay status as of the termination date,



(iii) is a participant not described in clause (i) or (ii)—



(I) who has a nonforfeitable right to an accrued benefit under the terminated plan as of the termination date, and



(II) whose service, which was creditable under the terminated plan, terminated during the period beginning 3 years before the termination date and ending with the date on which the final distribution of assets occurs, or


  


(iv) is a beneficiary of a participant described in clause (iii)(II) and has a nonforfeitable right to an accrued benefit under the terminated plan as of the termination date

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

