[Federal Register Volume 69, Number 140 (Thursday, July 22, 2004)]
[Proposed Rules]
[Page 43786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-16595]



[[Page 43786]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-101447-04]
RIN 1545-BD07


Deemed IRAs in Governmental Plans/Qualified Nonbank Trustee Rules

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 relating to 
qualification of governmental units as qualified nonbank trustees for 
deemed IRAs under section 408(q). The text of those regulations also 
serves as the text of these proposed regulations.

DATES: Written or electronic comments must be received by October 20, 
2004.

ADDRESSES: The public may submit comments in three ways. Send 
submissions to: CC:PA:LPD:PR (REG-101447-04), room 5203, Internal 
Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 
20044. Submissions may be hand-delivered between the hours of 8 a.m. 
and 4 p.m. to CC:PA:LPD:PR (REG-101447-04), Courier's Desk, Internal 
Revenue Service, 1111 Constitution Avenue, NW., Washington, DC, or send 
electronically, via the IRS Internet site at http://www.irs.gov/regs or 
via the Federal eRulemaking Portal at http://www.regulations.gov 
(indicate IRS and REG-101447-04).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Linda L. Conway, (202) 622-6090; concerning submissions of comments, 
Treena Garrett, (202) 622-3401 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    The temporary regulations in the Rules and Regulations section of 
this issue of the Federal Register amend 26 CFR part 1 relating to 
section 408(a). The temporary regulations set forth special rules for a 
governmental unit that maintains a plan qualified under section 401(a), 
403(a), 403(b) or 457 to qualify as a nonbank trustee for deemed IRAs 
under section 408(q). The text of those regulations also serves as the 
text of these proposed regulations. The preamble of the temporary 
regulations explains the amendments and these proposed regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
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 proposed regulations do not impose a collection of information by 
small entities, the provisions of the Regulatory Flexibility Act (5 
U.S.C. chapter 6) do 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 their impact on small business.

Comments and Requests for 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) or electronic comments that are submitted timely 
to the IRS. The IRS and Treasury Department specifically request 
comments on the clarity of the proposed rule and how it may be made 
easier to understand. All comments will be available for public 
inspection and copying. A public hearing will 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 public hearing will be published in the Federal Register.

Drafting Information

    The principal author of these regulations is Linda L. Conway, 
Office of Assistant Chief Counsel (Tax Exempt & Government Entities). 
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. In Sec.  1.408-(e)(8)T is added to read as follows:


Sec.  1.408-2  Special rules for governmental entities.

    [The text of proposed Sec.  1.408-2 paragraph (e)(8) is the same as 
the text of Sec.  1.408-2(e)(8)T published elsewhere in this issue of 
the Federal Register].

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-16595 Filed 7-21-04; 8:45 am]
BILLING CODE 4830-01-P