[Federal Register Volume 68, Number 166 (Wednesday, August 27, 2003)]
[Rules and Regulations]
[Pages 51446-51447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21826]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9075]
RIN 1545-AX52


Compensation Deferred Under Eligible Deferred Compensation Plans; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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SUMMARY: This document contains final regulations that provide guidance 
on deferred compensation plans of state and local governments and tax-
exempt entities. The regulations reflect the changes made to section 
457 by the Tax Reform Act of 2986, the Small Business Job Protection 
Act of 1996, the Taxpayer Relief Act of 1997, the Economic Growth and 
Tax Relief Reconciliation Act of 2001, the Job Creation and Worker 
Assistant Act of 2002, and other legislation. This document was 
published in the Federal Register on July 11, 2003 (68 FR 41230).

EFFECTIVE DATE: These final regulations are effective July 11, 2003.

FOR FURTHER INFORMATION CONTACT: Cheryl Press (202) 622-6060 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections are 
under sections 457 by the Tax Reform Act of 1986, the Small Business 
Job Protection Act of 1996, the Taxpayer Relief Act of 1997, the 
Economic Growth and Tax Relief Reconciliation Act of 2001, the Job 
Creation and Worker Assistance Act of 2002, and other legislation.

Need for Correction

    As published, the final regulations (TD 9075) contain errors that 
may prove to be misleading and are in need of clarification.

Correction of Publication

0
Accordingly, the publication of the final regulations (TD 9075), which 
are the subject of FR Doc. 03-17523, is corrected as follows:


Sec.  1.457-2  [Corrected]

0
1. On page 41235, column 2, Sec.  1.457-2, paragraph (k), line 10, the 
language ``treated as agreements or arrangement'' is corrected to read 
``treated as agreements or arrangements''.
0
2. On page 41235, column 3, Sec.  1.457-2, paragraph (i), line 5, the 
language ``amended by section 1011(e)(6) of'' is corrected to read 
``amended by section 1011(e)(6) of the''.
0
3. On page 41235, column 3, Sec.  1.457-2, paragraph (ii), line 2, the 
language ``nonelective deferred a compensation'' is corrected to read 
``nonelective deferred compensation''.


Sec.  1.457-4  [Corrected]

0
4. On page 41236, column 2, Sec.  1.457-4, paragraph (i), of Example 1, 
line 5, the language ``compensation for that year. Participant A is'' 
is corrected to read ``compensation for that year. A is''.
0
5. On page 41236, column 3, Sec.  1.457-4, paragraph (b)(ii), paragraph 
(i), of Example 3, line 3, the language ``per year for five years to 
Participant B's'' is corrected to read ``per year for five years to 
B's''.
0
6. On page 41236, column 3, Sec.  1.457-4, paragraph (i), of Example 3, 
lines 3 thru 7, the language ``per year for five years to Participant 
B's eligible plan account. B's interest in the account vests in 2006. B 
has annual compensation of $50,000 in each of the five years 2002 
through 2006. Participant B is 41'' is corrected to read ``per year for 
five years to B's eligible plan account. B's interest in the account 
vests in 2006. B has annual compensation of $50,000 in each of the five 
years 2002 through 2006. B is 41''.
0
7. On page 41236, column 3, Sec.  1.457-4, paragraph (ii), of Example 
3, line 6, the language ``amounts deferred, $17,000, is in excess of 
the'' is corrected to read ``amounts deferred, $17,000, is in excess 
of''.


Sec.  1.457-5  [Corrected]

0
8. On page 41241, column 1, Sec.  1.457-5, paragraph (i), of Example 2, 
the language ``four eligible plans during 2006: Plan W'' is corrected 
to read ``four eligible plans during 2006 Plan W''.


Sec.  1.457-6  [Corrected]

0
9. On page 41242, column 2, Sec.  1.457-6, paragraph (e)(2), third line 
from the bottom of the paragraph, the language ``but allow participants 
or beneficiary

[[Page 51447]]

to'' is corrected to read ``but allow a participant or beneficiary''.


Sec.  1.457-7  [Corrected]

0
10. On page 41244, column 2, Sec.  1.457-7, paragraph (i), of Example 
1, line 18, the language ``participant K, a calendar year taxpayer, 
has'' is corrected to read ``K, a calendar year taxpayer, has''.


Sec.  1.457-8  [Corrected]

0
11. On page 41245, column 3, Sec.  1.457-8, paragraph (b)(2), line 2, 
the language ``purposes of a paragraph (b)(1) of this'' is corrected to 
read ``purposes of paragraph (b)(1) of this''.


Sec.  1.457-9  [Corrected]

0
12. On page 41246, column 1, Sec.  1.457-9, paragraph (a), line 7, the 
language ``1.457-8 or 1.447-10. However, the plan'' is corrected to 
read ``Sec.  1.457-8 or Sec.  1.447-10. However, the plan''.


Sec.  1.457-10  [Corrected]

0
13. On page 41246, column 1, Sec.  1.457-10, paragraph (a)(2), line 8, 
the language ``under a paragraph (a)(2)(ii) of this'' is corrected to 
read ``under paragraph (a)(2)(ii) of this''.
0
14. On page 41246, column 3, Sec.  1.457-10, paragraph (b), line 6, the 
language ``the conditions in paragraph (b)(2), (3),'' is corrected to 
read ``the conditions in paragraphs (b)(2), (3),''.

LaNita Van Dyke,
Acting Chief, Publication and Regulations Branch, Legal Processing 
Division, Associate Chief Counsel (Procedure and Administration).
[FR Doc. 03-21826 Filed 8-26-03; 8:45 am]
BILLING CODE 4830-01-P