[Federal Register Volume 71, Number 183 (Thursday, September 21, 2006)]
[Rules and Regulations]
[Page 55108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-7862]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9280]
RIN 1545-BE10


Section 411(d)(6) Protected Benefits; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations that 
were published in the Federal Register on August 9, 2006 (71 FR 45379) 
that provide guidance on certain issues under section 411(d)(6) of the 
Internal Revenue Code (Code), including the interaction between the 
anti-cutback rules of section 411(d)(6) and the nonforfeitability 
requirements of section 411(a).

EFFECTIVE DATE: This correction is effective August 9, 2006.

FOR FURTHER INFORMATION CONTACT: Pamela R. Kinard, at (202) 622-6060 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this correction are 
under section 411(d)(6) of the Code.

Need for Correction

    As published, the final regulations (TD 9280), contain errors that 
may prove to be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

0
Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

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


0
Par. 2. Section 1.411(d)-3 is amended by revising paragraph (a)(3)(i), 
second sentence and (a)(4) Example 4 (ii), second sentence to read as 
follows:


Sec.  1.411(d)-3  Section 411 (d)(6) protected benefits.

    (a) * * *
    (3) * * * However, such an amendment does not violate section 
411(d)(6) to the extent it applies with respect to benefits that accrue 
after the applicable amendment date.
    (4) * * *

    Example 4 * * * 
    (ii) * * * A method of avoiding a section 411 (d)(6) violation 
with respect to account balances attributable to benefits accrued as 
of the applicable amendment date and earnings thereon would be for 
Plan D to provide for the vested percentage of G and each other 
participant in Plan E to be no less than the greater of the vesting 
percentages under the two vesting schedules (for example, for G and 
each other participant in Plan E to be 20% vested upon completion of 
3 years of service, 40% vested upon completion of 4 years of 
service, and fully vested upon completion of 5 years of service) for 
those account balances and earnings.
* * * * *

Cynthia Grigsby,
Senior Federal Liaison Officer, Legal Processing Division, Associate 
Chief Counsel (Procedure and Administration).
[FR Doc. 06-7862 Filed 9-20-06; 8:45 am]
BILLING CODE 4830-01-P