[Federal Register Volume 63, Number 172 (Friday, September 4, 1998)]
[Proposed Rules]
[Pages 47214-47215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23570]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-101363-98]
RIN 1545-AV94


Section 411(d)(6) Protected Benefits (Taxpayer Relief Act of 
1997); Qualified Retirement Plan Benefits

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations providing 
for changes to the rules regarding qualified retirement plan benefits 
that are protected from reduction by plan amendment, that have been 
made necessary by the Taxpayer Relief Act of 1997. The text of those 
temporary regulations also serves as the text of these proposed 
regulations.

DATES: Written comments and requests for a public hearing must be 
received by December 3, 1998.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-101363-98), room 
5228, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered between the 
hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-101363-98),

[[Page 47215]]

Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., 
Washington, DC. Alternatively, taxpayers may submit comments 
electronically via the internet by selecting the ``Tax Regs'' option on 
the IRS Home Page, or by submitting comments directly to the IRS 
internet site at http://www.irs/ustreas.gov/prod/tax__regs/
comments.html.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Linda S. 
F. Marshall, (202) 622-6030 (not a toll-free call); concerning 
submissions, Michael Slaughter, (202) 622-7190 (not a toll-free call).

SUPPLEMENTARY INFORMATION:

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) relating to section 411(d)(6), to provide for changes that have 
been made necessary by the Taxpayer Relief Act of 1997 (TRA '97), 
Public Law 105-34, 111 Stat. 788 (1997). The temporary regulations 
change the existing regulations to conform with the TRA '97 rules 
regarding in-kind distribution requirements for certain employee stock 
ownership plans, and specify the time period during which certain plan 
amendments for which relief has been granted by TRA '97 may be made 
without violating the prohibition against plan amendments that reduce 
accrued benefits.
    The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in EO 12866. Therefore, 
a regulatory assessment is not required. It also has been determined 
that section 553(b) of the Administrative Procedure Act (5 U.S.C. 
chapter 5) does not apply to these regulations, and because the 
regulation does not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. Pursuant to section 7805(f) of the Internal Revenue Code, this 
notice of proposed rulemaking will be submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comment on its 
impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) that are submitted timely to the IRS. All 
comments will be available for public inspection and copying. A public 
hearing may be scheduled if requested in writing by any person that 
timely submits written comments. If a public hearing is scheduled, 
notice of the date, time, and place for the hearing will be published 
in the Federal Register.
    Drafting Information: The principal author of these regulations is 
Linda S. F. Marshall, Office of the Associate Chief Counsel, Employee 
Benefits and Exempt Organizations. However, other personnel from the 
IRS and Treasury Department participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. Section 1.411(d)-4 is amended by:
    1. Revising paragraph (d)(1)(ii) of Q&A-2.
    2. Adding Q&A-11.
    The addition and revisions read as follows:


Sec. 1.411(d)-4  Section 411(d)(6) protected benefits.

* * * * *
    Q-2 * * *
    (d)(1)(ii) [The text of proposed paragraph (d)(1)(ii) of Q&A-2 is 
the same as the text of Sec. 1.411(d)-4T Q&A-2(d)(1)(ii) published 
elsewhere in this issue of the Federal Register.]
* * * * *
    Q&A-11 [The text of proposed Q&A-11 is the same as the text of 
Sec. 1.411(d)-4T Q&A-11 published elsewhere in this issue of the 
Federal Register.]
Michael P. Dolan,
Deputy Commissioner of Internal Revenue.
[FR Doc. 98-23570 Filed 9-3-98; 8:45 am]
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