[Federal Register Volume 70, Number 242 (Monday, December 19, 2005)]
[Proposed Rules]
[Pages 75090-75091]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-24169]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-158080-04]
RIN 1545-BE79


Application of Section 409A to Nonqualified Deferred Compensation 
Plans; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to notice of proposed rulemaking.

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SUMMARY: This document contains corrections to a notice of proposed 
rulemaking that was published in the Federal Register on Tuesday, 
October 4, 2005 (70 FR 57930) regarding the application of section 409A 
to nonqualified deferred compensation plans. The regulations affect 
service providers receiving amounts of deferred compensation, and the 
service recipients for whom the service providers provide services.

FOR FURTHER INFORMATION CONTACT: Stephen Tackney, (202) 927-9639 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The notice of proposed rulemaking (REG-158080-04) that is the 
subject of these corrections are under section 409A of the Internal 
Revenue Code.

Need for Correction

    As published, the notice of proposed rulemaking (REG-158080-04) 
contains errors that may prove to be misleading and are in need of 
clarification.

Correction of Publication

    Accordingly, the notice of proposed rulemaking (REG-158080-04), 
that was the subject of FR Doc. 05-19379, is corrected as follows:
    1. On page 57930, column 3, in the preamble under the paragraph 
heading ``B. Section 457 Plans'', second paragraph, third line from the 
bottom of the column, the language, ``under Sec.  1.409A-1(b)(5) of 
these'' is corrected to read ``under Sec.  1.409A-1(b)(4) or (5)''.
    2. On page 57931, column 1, in the preamble under the paragraph 
heading ``B. Section 457 Plans'', first paragraph of the column, third 
line from the bottom, the language, ``1(a)(4) of these proposed 
regulations to'' is corrected to read ``1(a)(5) of these proposed 
regulations to''.
    3. On page 57933, column 1, in the preamble under the paragraph 
heading

[[Page 75091]]

``B. Short-Term Deferrals'', first paragraph of the column, last of the 
paragraph, the language, ``in year 10.'' is corrected to read ``in Year 
10.''.
    4. On page 57934, column 2, in the preamble under the paragraph 
heading ``2. Definition of Service Recipient Stock'', second paragraph 
of the column, fourth line, the language, ``provider stock may include 
American'' is corrected to read ``recipient stock may include 
American''.
    5. On page 57937, column 1, in the preamble under the paragraph 
heading ``D. Restricted Property'', second paragraph of the column, 
line 21, the language, ``payment for purposes section 409A,'' is 
corrected to read ``payment for purposes of section 409A,''.
    6. On page 57948, column 2, in the preamble under the paragraph 
heading ``E. Change in Ownership or Effective Control of the 
Corporation'', last paragraph of the column, line 13, the language, 
``3(g)(5)(iv)) or a change in the ownership'' is corrected to read 
``3(g)(5)(v)) or change in the ownership''.
    7-8. On page 57948, column 3, in the preamble under the paragraph 
heading ``E. Change in Ownership or Effective Control of the 
Corporation'', first paragraph of the column, line 2, the language 
Sec.  1.409A-3(g)(5)(vi) may be applied by'' is corrected to read'' 
Sec.  1.409A-3(g)(5)(vii) may be applied by''.
    9. On page 57953, column 1, in the preamble under the ``B. 
Effective Dates--Calculation of Grandfathered Amount'', first 
paragraph, line 7, the language, ``set forth in Notice 2005-1, Q&A-
16.'' is corrected to read ``set forth in Notice 2005-1, Q&A,-17.''.
    10. On page 57953, column 2, in the preamble under the ``B. 
Effective Dates--Calculation of Grandfathered Amount'', first full 
paragraph, line 3, the language, ``contained in Notice 2005-1, Q&A-16'' 
is corrected to read ``contained in Notice 2005-1, Q&A,-17''.


Sec.  1.409A-1  [Corrected]

    11. On page 57959, column 2, Sec.  1.409A-1(b)(4)(i), line 5, the 
language, ``election under Sec.  1.409A-2(a)(4)) to'' is corrected to 
read ``election under Sec.  1.409A-2(a)(3)) to''.
    12. On page 57961, column 1, Sec.  1.409A-1(b)(5)(iii)(B), last 
line of the paragraph, the language, ``service provider stock.'' is 
corrected to read ``service recipient stock.''.
    13. On page 57961, column 2, Sec.  1.409A-1(b)(5)(iii)(D)(1), line 
25, the language, ``constitute service provider stock with'' is 
corrected to read ``constitute service recipient stock with''.
    14. On page 57962, column 2, Sec.  1.409A-1(b)(5)(iv)(B)(2)(iii), 
line 5, the language, ``(b)(5)(B)(iv)(1) of this section, of an'' is 
corrected to read ``(b)(5)(iv)(B)(1) of this section, of an''.
    15. On page 57962, column 2, Sec.  1.409A-1(b)(5)(iv)(B)(2)(iii), 
lines 5 and 6 from the bottom of the paragraph, the language, ``Sec.  
1.409A-3(g)(5)(iv) or Sec.  1.409A-3(g)(5)(vi) or make a public 
offering of'' is corrected to read ``Sec.  1.409A-3(g)(5)(v) or Sec.  
1.409A-3(g)(5)(vii) or make a public offering of''.
    16. On page 57962, column 3, Sec.  1.409A-1(b)(5)(iv)(B)(3), line 9 
from the bottom of the paragraph, the language, ``the service provider 
stock to which the'' is corrected to read ``the service recipient stock 
to which the''.
    17. On page 57963, column 2, Sec.  1.409A-1(b)(5)(v)(E), line 7, 
the language, ``exercised is not a material modification'' is corrected 
to read ``exercised is not a modification''.
    18. On page 57963, column 2, Sec.  1.409A-1(b)(5)(v)(E), line 13, 
the language, ``Sec.  1.409A-3(c). Additionally, no''. is corrected to 
read ``Sec.  1.409A-3(h). Additionally, no''.
    19. On page 57964, column 1, Sec.  1.409A-1(b)(v)(J)(6)(ii), line 
14, the language, ``purposes section 409A, including for'' is corrected 
to read ``purposes of section 409A, including for''.
    20. On page 57964, column 2, Sec.  1.409A-1(b)(v)(J)(8)(ii)(B), 
line 7, the language, ``the compensation would have been'' is corrected 
to read ``and the compensation would have been''.
    21. On page 57965, column 1, Sec.  1.409A-1(b)(v)(9)(iii)(A)(1), 
line 3, the language, Sec.  1.415-1(d)(2)) for services provided to'' 
is corrected to read ``Sec.  1.415-2(d) for services provided to''.
    22. On page 57965, column 1, Sec.  1409A-1(b)(v)(9)(iii)(A)(1), 
line 7, the language, ``1402(a)(1) for services provided to the'' is 
corrected to read ``1402(a) for services provided to the''.
    23. On page 57968, column 1, Sec.  1.409A-1(f)(3)(i)(C), last line 
of the paragraph, the language, ``sections 267(b)(1) and 707(b)(1).'' 
is corrected to read ``sections 267(b) and 707(b)(1).''.
    24. On page 57969, column 1, Sec.  1.409A-1(h)(2)(ii), line 2, the 
language, ``paragraph (b)(2) of this section, the plan'' is corrected 
to read ``paragraph (h)(2)(i) of this section, the plan''.
    25. On page 57969, column 1, Sec.  1.409A-1(h)(2)(ii), lines 4 
through 8, the language, ``described in paragraph (a) of this section 
that no amounts deferred under the plan be paid or made available to 
the participant before the participant has a separation from service 
with the'' is corrected to read ``described in Sec.  1.409A-3(a)(1) 
that amounts deferred under the plan may be paid or made available to 
the participant upon a separation from service with the''.


Sec.  1.409A-2  [Corrected]

    26. On page 57971, column 3, Sec.  1.409A-2(a)(9), line 3, the 
language, ``1(b)(9)(i)) due to an actual involuntary'' is corrected to 
read ``1(m) due to an actual involuntary''.
    27. On page 57973, column 1, Sec.  1.409A-2(b)(3), line 5, the 
language, ``contained in Sec.  1.409A-3(c), the'' is corrected to read 
``contained in Sec.  1.409A-3(h), the''.


Sec.  1.409A-3  [Corrected]

    28. On page 57975, column 3, Sec.  1.409A-3(b), line 26, the 
language, ``Sec.  1.409A-1(b)(4). An arrangement may'' is corrected to 
read ``Sec.  1.409A-2(b). An arrangement may''.
    29. On page 57977, column 2, Sec.  1,409A-3(g)(3)(i), line 12 from 
the top of the column, the language, ``insurance, for example, not as a 
result'' is corrected to read ``insurance, for example, as a result''.
    30. On page 57977, column 3, 1.409A-3(g)(4)(i)(A), line 6, the 
language, ``result in death or can be expect to last'' is corrected to 
read ``result in death or can be expected to last''.
    31. On page 57981, column 1, Sec.  1.409A-3(h)(4)(viii)(B), line 6, 
the language, ``defined in Sec.  1.409A-2(g)(4)(i)). For''. is 
corrected to read ``defined in Sec.  1.409A-3(g)(5)(i)). For''.

Guy R. Traynor,
Federal Register Liaison, Publications and Regulations Branch, Legal 
Processing Division, Associate Chief Counsel (Procedure and 
Administration).
[FR Doc. 05-24169 Filed 12-16-05; 8:45 am]
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