Announcement 2007-57

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.

As published, final regulations (T.D. 9319) contain errors that may prove to be misleading and are in need of clarification.

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

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

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

Par. 2. Section 1.402(c)-2, A-4 is revised by inserting colon to read as follows:

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A-4: * * *

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Par. 3. Section 1.415(b)-1 is amended by revising the only sentence of paragraph (c)(5)(i)(A), and the second sentence of Example 6. paragraph (iv). The revisions read as follows:

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(c) * * *

(5) * * *

(i) * * *

(A) The benefit is paid in a form to which section 417(e)(3) does not apply.

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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. * * *

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Par. 4. Section 1.415(d)-1 is amended by revising the paragraph heading to read as follows:

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Par. 5. Section 1.415(f)-1 is amended by revising the last sentence of paragraph (d)(1) to read as follows:

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(d) * * *

(1) * * * Instead, the transferee plan takes into account the transferred benefits that are actually provided under the transferee plan (see §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.

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Par. 6. Section 1.457-5(d) Example 2. paragraphs (ii) and (iii) are amended by revising the third sentence of (ii) and (iii) to read as follows:

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(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.

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