This document contains corrections to final regulations that were published in the Federal Register on August 9, 2006 (T.D. 9280, 2006-38 I.R.B. 450 [71 FR 45379]) that provide 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).
The final regulations that are the subject of this correction are under section 411(d)(6) of the Internal Revenue Code.
Accordingly, 26 CFR Part 1 is corrected by making the following correcting amendment:
Paragraph 1. The authority citation for part 1 continues to read in part as follows:
Authority: 26 U.S.C 7805 * * *
Par. 3. Section 1.411(d)-3 is amended by revising paragraph (3) to read as follows:
(a) * * *
(3) * * * However, such an amendment does not violate section 411(d)(6) to the extent it applies with respect to benefits that accrued after the applicable amendment date.
(4) * * *
(ii) * * *
(B) * * *
(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.
* * * * *
Guy R. Traynor,The Internal Revenue Bulletin is produced and published by the Internal Revenue Service and contains IRS pronouncements affecting tax analysis under the Code and the Regulations, including but not limited to Revenue Procedures, Revenue Rulings, Notices and Announcements. Access the IRS site at https://www.irs.gov/help/irsgov-accessibility for information concerning accessibility of IRS materials. While every effort has been made to ensure that the IRB database files available through the TouchTax application are accurate, those using TouchTax for legal research should verify their results against the printed versions of the IRBs available from the IRS.