[Federal Register Volume 72, Number 99 (Wednesday, May 23, 2007)]
[Rules and Regulations]
[Page 28854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9877]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9319]
RIN 1545-BD52


Limitations on Benefits and Contributions Under Qualified Plans; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to final regulations (TD 
9319) that were published in the Federal Register on Thursday, April 5, 
2007 (72 FR 16878) regarding the limitations of section 415, including 
updates to the regulations for numerous statutory changes since 
comprehensive final regulations were last published under section 415.

DATES: These correcting amendments are effective May 23, 2007.

FOR FURTHER INFORMATION CONTACT: Vernon S. Carter at (202) 622-6060 or 
Linda S. F. Marshall at (202) 622-6090 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this document are 
under sections 401(a), 401(a)(4), 401(a)(9), 401(k), 402, 414(s), 415, 
416, 457, and 924 of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9319) 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 as 
follows:

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


0
Par. 2. Section 1.415(b)-1 is amended by revising paragraph 
(c)(5)(i)(A), and the second sentence of paragraph (c)(6) Example 6, 
paragraph (iv). The revisions read as follows:


Sec.  1.415(b)-1  Limitations for defined benefit plans.

* * * * *
    (c) * * *
    (5) * * *
    (i) * * *
    (A) The benefit is paid in a form to which section 417(e)(3) does 
not apply.
* * * * *
    (6) * * *
    Example 6. * * *
    (iv) * * * With respect to the single-sum distribution, the 
annual amount of the actuarially equivalent straight life annuity 
commencing at the same age determined using the plan's actuarial 
factors is equal to $45,000. * * *
* * * * *

0
Par. 3. Section 1.415(d)-1 is amended by revising its heading to read 
as follows:


Sec.  1.415(d)-1  Cost-of-living adjustments.

* * * * *
0
Par. 4. Section 1.415(f)-1 is amended by revising the last sentence of 
paragraph (d)(1) to read as follows:


Sec.  1.415(f)-1  Aggregating plans.

* * * * *
    (d) * * *
    (1) * * * Instead, the transferee plan takes into account the 
transferred benefits that are actually provided under the transferee 
plan (see Sec.  1.415(b)-1(b)(3)(i)(C)) and, pursuant to paragraph 
(c)(1) of this section, any nontransferred benefits provided under 
plans maintained by the predecessor employer with respect to a 
participant whose benefits have been transferred to the transferee 
plan.
* * * * *
0
Par. 5. Section 1.457-5(d), Example 2, paragraphs (ii) and (iii) are 
amended by revising the third sentence of (ii) and all of (iii) to read 
as follows:


Sec.  1.457-5  Individual limitation for combined annual deferrals 
under multiple eligible plans.

* * * * *
    (d) * * *

    Example 2. * * *
    (ii) * * * Alternatively, Participant E could instead elect to 
defer the following combination of amounts: An aggregate total of 
$15,000 to Plans X, Y, and Z, if no contribution is made to Plan W; 
an aggregate total of $20,000 to any of the four plans, assuming at 
least $5,000 is contributed to Plan W; or $22,000 to Plan W and none 
to any of the other three plans.
    (iii) * * * If the underutilized amount under Plans W, X, and Y 
for year 2006 were in each case zero (because E had always 
contributed the maximum amount or E was a new participant) or an 
amount not in excess of $5,000, the maximum exclusion under this 
section would be $20,000 for Participant E for year 2006 ($15,000 
plus the $5,000 age 50 catch-up amount), which Participant E could 
contribute to any of the plans assuming at least $5,000 is 
contributed to Plan W.

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. E7-9877 Filed 5-22-07; 8:45 am]
BILLING CODE 4830-01-P