Application of Section 409A to Nonqualified Deferred Compensation Plans; Correction, 38477-38478 [E7-13588]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 72, Number 134 (Friday, July 13, 2007)]
[Rules and Regulations]
[Pages 38477-38478]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13588]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9321]
RIN 1545-BE79


Application of Section 409A to Nonqualified Deferred Compensation 
Plans; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.
SUMMARY: This document contains corrections to final regulations that 
were published in the Federal Register on Tuesday, April 17, 2007 (73 
FR 19234), relating to section 409A.

DATES: This correction is effective April 17, 2007.

FOR FURTHER INFORMATION CONTACT: Stephen Tackney, (202) 622-9639 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations that are subject to these corrections are 
under section 409A of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9321) contain errors that may 
prove misleading and are in need of correction.

Correction of Publication

    Accordingly, the publication of the final regulations (TD 9321), 
which were the subject of FR Doc. 07-1820, is corrected as follows:
    1. On page 19235, column 3, in the preamble the paragraph heading 
III. the language ``Definition of Nonqualified Deferred Compensation 
Plan'', is corrected to read ``Definition of Deferral of 
Compensation''.
    2. On page 19243, column 1, in the preamble, paragraph E., the last 
sentence in the first paragraph, the language ``The final regulations 
adopt this suggestion, so long as the risk of forfeiture to which the 
stock is subject constitutes a substantial risk of forfeiture for 
purposes of section 409A.'' is corrected to read ``The final 
regulations adopt this suggestion.''.
    3. On page 19243, column 2, paragraph G., line 2 from the bottom of 
the paragraph, the language ``Q&A-7 and section II.E. of the preamble'' 
is corrected to read ``Q&A-7 and sections II.E. and VI.E. of the 
preamble.''.
    4. On page 19247, column 2, in the preamble, lines 3 and 4 from the 
bottom of the last paragraph, the language ``limited period of time not 
to exceed one year following the initial existence of'' is corrected to 
read ``limited period of time not to exceed two years following the 
initial existence of''.
    5. On page 19258, column 2, in the preamble the tenth line from the 
bottom of the column, the language ``average level of bona fide 
service'' is corrected to read ``average level of bona fide services''.
    6. On page 19264, column 1, in the preamble, paragraph D. line 9 
from the bottom of the first paragraph, the language ``with section 
409A if the service'' is corrected to read ``with section 409A only if 
the service''.
    7. On page 19264, column 2, in the preamble, paragraph D., the last 
sentence of the top paragraph, the language ``For a discussion of the 
ability to provide for different times and forms of payment due to 
different types of separations from service, including separations from 
service due to certain disabilities, see section VII.C.4 of this 
preamble.'' is removed.
    8. On page 19265, column 1, in the preamble under paragraph G., the 
third sentence of the paragraph, the language ``The final regulations 
clarify that for these purposes, the availability of payments due to 
the unforeseeable emergency under any other nonqualified deferred 
compensation plan as defined for purposes of section 409A, including 
plans that would be nonqualified deferred compensation plans for 
purposes of section 409A except due to the effective date of the 
statute, or under any qualified plan (including any assets available by 
obtaining a loan under a qualified plan), need not be considered in 
determining whether an emergency is or may be relieved through other 
means.'' is corrected to read ``The final regulations clarify that for 
these purposes, the availability of payments under any qualified plan 
(including any amount available by obtaining a loan under a qualified 
plan), or under any other nonqualified deferred compensation plan due 
to the unforeseeable emergency, including plans that would be 
nonqualified deferred compensation plans for purposes of section 409A 
except due to the effective date of the statute, need not be considered 
in determining whether an emergency is or may be relieved through other 
means.''.
    9. On page 19265, column 1, in the preamble under paragraph G., 
lines 1 through 5 from the bottom of the first paragraph, the language 
``qualified plan, from a grandfathered nonqualified deferred 
compensation plan, or from another nonqualified deferred compensation 
plan that is subject to section 409A.'' is corrected to read 
``qualified plan, or from another nonqualified deferred compensation 
plan (including a grandfathered plan) due to the unforeseeable 
emergency.''.
    10. On page 19267, column 2, in the preamble under paragraph B., 
lines 4 and 5 from the bottom of the column, the language ``Where the 
change in control event consists of an asset purchase, the'' is 
corrected to read ``Solely for purposes of this rule, the''.
    11. On page 19270, column 2, in the preamble under paragraph A., 
lines 2, 3, and 4 from the top of the paragraph, the language 
``contributions, each up to the section 402(g) dollar limit on elective 
deferrals, are separate, additive limits and are not'' is corrected to 
read ``contributions is subject to two separate, additive limits and 
not''.
    12. On page 19272, column 1, in the preamble, the paragraph heading 
of paragraph XII., the language ``Effective Date of Final Regulations'' 
is corrected to read ``Applicability Date of Final Regulations''.
    13. On page 19272, column 2, in the preamble under paragraph B., 
line 2, the language ``effective January 1, 2008. For periods'' is 
corrected to read ``applicable January 1, 2008. For periods''.
    14. On page 19272, column 2, in the preamble, paragraph B., line 7 
from the top of the first paragraph, the language ``relief for periods 
before the effective'' is corrected to read ``relief for periods before 
the applicability''.
    15. On page 19272, column 2, in the preamble, paragraph B., line 3 
from the top of the second paragraph, the language ``becoming effective 
January 1, 2008, on'' is corrected to read ``becoming applicable 
January 1, 2008, on''.
    16. On page 19272, column 2, in the preamble, paragraph C., line 5 
from the top of the paragraph, the language ``rights issued before the 
effective date

[[Page 38478]]

of'' is corrected to read ``rights issued before the applicability date 
of''.
    17. On page 19273, column 1, in the preamble, paragraph C., line 13 
from the top of the second paragraph, the language ``2005) or on or 
before the effective date'' is corrected to read ``2005) or on or 
before the applicability date''.
    18. On page 19273, column 1, in the preamble, paragraph C., line 16 
from the bottom of the paragraph, the language ``effective date of the 
regulations. In'' is corrected to read ``applicability date of the 
regulations. In''.
    19. On page 19273, column 2, in the preamble, paragraph D., line 4 
of the second paragraph, the language ``established before the 
effective date of'' is corrected to read ``established before the 
applicability date of''.
    20. On page 19273, column 2, in the preamble, paragraph E., line 7 
of the first paragraph, the language ``the time such regulations were 
effective.'' is corrected to read ``the time such regulations were 
applicable.''.

Guy R. Traynor,
Federal Register Liaison, Legal Processing Division, Publication & 
Regulations Branch, Associate Chief Counsel (Procedure & 
Administration).
[FR Doc. E7-13588 Filed 7-12-07; 8:45 am]
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