[Federal Register Volume 75, Number 206 (Tuesday, October 26, 2010)]
[Rules and Regulations]
[Page 65566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-26979]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9340]
RIN 1545-BB64


Revised Regulations Concerning Section 403(b) Tax-Sheltered 
Annuity Contracts; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD 
9340) that were published in the Federal Register on Thursday, July 26, 
2007 (72 FR 41128) providing updated guidance on section 403(b) 
contracts of public schools and tax-exempt organizations described in 
section 501(c)(3). These regulations will affect sponsors of section 
403(b) contracts, administrators, participants, and beneficiaries.

DATES: The correction is effective October 26, 2010, and is applicable 
on July 26, 2007.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, John 
Tolleris at (202) 622-6060; concerning the regulations as applied to 
church-related entities, Sherri Edelman or Jason Levine at (202) 283-
9634 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this correction are 
under section 403(b) of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9340) 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 1.403(b)-4 is amended by revising the third and fourth 
sentences of paragraph (c)(5) Example 12.(i) to read as follows:


Sec.  1.403(b)-4  Contribution limitations.

* * * * *
    (c) * * *
    (5) * * *
    Example 12. (i) * * * However, the $5,000 age 50 catch-up amount 
deferred in 2006 is disregarded for purposes of applying the 
limitation at paragraph (c)(3)(i)(C) of this section to determine 
the special section 403(b) catch-up amount. Thus, for 2007, only 
$80,000 of section 403(b) elective deferrals are taken into account 
in applying the limitation at paragraph (c)(3)(i)(C) of this 
section. * * *
* * * * *
0
Par. 3. Section 1.403(b)-6 is amended by revising the last sentence of 
paragraph (e)(5) to read as follows:


Sec.  1.403(b)-6  Timing of distributions and benefits.

* * * * *
    (e) * * *
    (5) * * * See also Sec.  1.403(b)-9(a)(5) for additional rules 
relating to annuities payable from a retirement income account.
* * * * *
0
Par. 4. Section 1.403(b)-7 is amended by revising the fourth sentence 
of paragraph (b)(1) to read as follows:


Sec.  1.403(b)-7  Taxation of distributions and benefits.

* * * * *
    (b) * * *
    (1) * * * Thus, to the extent that a portion of a distribution 
(including a distribution from a designated Roth account) would be 
excluded from gross income if it were not rolled over, if that portion 
of the distribution is to be rolled over into an eligible retirement 
plan that is not an IRA, the rollover must be accomplished through a 
direct rollover of the entire distribution to a plan qualified under 
section 401(a) or a section 403(b) plan and that plan must agree to 
separately account for the amount not includible in income (so that a 
60-day rollover to a plan qualified under section 401(a) or another 
section 403(b) plan is not available for this portion of the 
distribution). * * *
* * * * *
0
Par. 5. Section 1.403(b)-10 is amended by revising the heading of 
paragraph (b)(3) and adding a heading to paragraph (b)(3)(i) to read as 
follows:


Sec.  1.403(b)-10  Miscellaneous provisions.

* * * * *
    (b) * * *
    (3) Requirements for plan-to-plan transfers--(i) In general. * * *
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2010-26979 Filed 10-25-10; 8:45 am]
BILLING CODE 4830-01-P