Reasonable Good Faith Interpretation of Required Minimum Distribution Rules by Governmental Plans, 39630-39632 [E8-15740]
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39630
Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Proposed Rules
is within the scope of that authority
because it addresses an unsafe condition
that is likely to exist or develop on
products identified in this rulemaking
action.
Regulatory Findings
We determined that this proposed AD
would not have federalism implications
under Executive Order 13132. This
proposed AD would not have a
substantial direct effect on the States, on
the relationship between the national
Government and the States, or on the
distribution of power and
responsibilities among the various
levels of government.
For the reasons discussed above, I
certify this proposed regulation:
1. Is not a ‘‘significant regulatory
action’’ under Executive Order 12866;
2. Is not a ‘‘significant rule’’ under the
DOT Regulatory Policies and Procedures
(44 FR 11034, February 26, 1979); and
3. Will not have a significant
economic impact, positive or negative,
on a substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
We prepared a regulatory evaluation
of the estimated costs to comply with
this proposed AD and placed it in the
AD docket.
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Safety.
The Proposed Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA proposes to amend 14 CFR part
39 as follows:
1. The authority citation for part 39
continues to read as follows:
Authority: 49 U.S.C. 106(g), 40113, 44701.
[Amended]
2. The FAA amends § 39.13 by adding
the following new AD:
mstockstill on PROD1PC66 with PROPOSALS
Dassault Aviation: Docket No. FAA–2008–
0732; Directorate Identifier 2008–NM–
053–AD.
Comments Due Date
(a) We must receive comments by August
11, 2008.
Affected ADs
(b) None.
Applicability
(c) This AD applies to all Dassault Model
Mystere-Falcon 50 airplanes, certificated in
any category.
VerDate Aug<31>2005
16:05 Jul 09, 2008
Jkt 214001
Reason
(e) The mandatory continuing
airworthiness information (MCAI) states:
Analysed in-service events revealed that
corrosion of pressure relief valves in wing
fuel tanks was likely to occur well before
reaching their Time Between Overhaul (TBO)
and could make the valves stick in the closed
position.
Therefore some aircraft could have
experienced wing overpressure consecutive
to the latent failure of both valve units.
Overpressure although not sufficient to cause
static damages could have impaired the
fatigue damage tolerance of the wing
structure. Consequently this Airworthiness
Directive (AD) mandates introduction of a
new repetitive inspection of the wing
structure.
The repetitive ultrasonic inspection is
intended to detect incipient cracking on the
stiffeners of the right-hand and left-hand
wing lower panels between ribs 13 and 17
(the inspection area extends to just beyond
rib 16). The corrective actions if any cracking
is found include contacting Dassault for
repair instructions, and doing the repair.
Actions and Compliance
(f) Unless already accomplished, do the
following actions: Prior to the accumulation
of 14,200 total flight cycles, or within 160
flight cycles after the effective date of this
AD, whichever occurs later, do the ultrasonic
inspection described in Temporary Revision
74, dated November 2007, to the Dassault
Falcon 50 Maintenance Manual, Maintenance
Procedure 57–401, ‘‘Non-Destructive Check
of the Wing Lower Panels Stiffeners between
Ribs 13 and 16 (ATA 57–00–21).’’ Do all
applicable corrective actions before further
flight. Repeat the inspection thereafter at
intervals not to exceed 5,350 flight cycles.
FAA AD Differences
Note: This AD differs from the MCAI and/
or service information as follows: No
differences.
PART 39—AIRWORTHINESS
DIRECTIVES
§ 39.13
Subject
(d) Air Transport Association (ATA) of
America Code 57: Wings.
Other FAA AD Provisions
(g) The following provisions also apply to
this AD:
(1) Alternative Methods of Compliance
(AMOCs): The Manager, ANM–116,
International Branch, Transport Airplane
Directorate, FAA, has the authority to
approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19.
Send information to ATTN: Tom Rodriguez,
Aerospace Engineer, 1601 Lind Avenue, SW.,
Renton, Washington 98057–3356; telephone
(425) 227–1137; fax (425) 227–1149. Before
using any approved AMOC on any airplane
to which the AMOC applies, notify your
appropriate principal inspector (PI) in the
FAA Flight Standards District Office (FSDO),
or lacking a PI, your local FSDO.
(2) Airworthy Product: For any requirement
in this AD to obtain corrective actions from
a manufacturer or other source, use these
actions if they are FAA-approved. Corrective
actions are considered FAA-approved if they
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Fmt 4702
Sfmt 4702
are approved by the State of Design Authority
(or their delegated agent). You are required
to assure the product is airworthy before it
is returned to service.
(3) Reporting Requirements: For any
reporting requirement in this AD, under the
provisions of the Paperwork Reduction Act,
the Office of Management and Budget (OMB)
has approved the information collection
requirements and has assigned OMB Control
Number 2120–0056.
Related Information
(h) Refer to MCAI European Aviation
Safety Agency (EASA) Airworthiness
Directive 2008–0021, dated January 31, 2008,
and Temporary Revision 74, dated November
2007, to the Dassault Falcon 50 Maintenance
Manual, Maintenance Procedure 57–401,
‘‘Non-Destructive Check of the Wing Lower
Panels Stiffeners between Ribs 13 and 16
(ATA 57–00–21),’’ for related information.
Issued in Renton, Washington, on June 27,
2008.
Ali Bahrami,
Manager, Transport Airplane Directorate,
Aircraft Certification Service.
[FR Doc. E8–15714 Filed 7–9–08; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–142040–07]
RIN 1545–BH53
Reasonable Good Faith Interpretation
of Required Minimum Distribution
Rules by Governmental Plans
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking.
AGENCY:
SUMMARY: This document contains
proposed regulations under sections
401(a)(9) and 403(b) of the Internal
Revenue Code (Code) to permit a
governmental plan to comply with the
required minimum distribution rules by
using a reasonable and good faith
interpretation of the statute. These
proposed regulations will affect
administrators of, employers
maintaining, participants in, and
beneficiaries of governmental plans.
DATES: Written or electronic comments
and requests for a public hearing must
be received by October 8, 2008.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–142040–07), room
5203, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washington
DC 20044. Submissions may be handdelivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to: CC:PA:LPD:PR (REG–142040–07),
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Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Proposed Rules
mstockstill on PROD1PC66 with PROPOSALS
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC, or sent
electronically via the Federal
eRulemaking Portal at https://
www.regulations.gov (IRS REG–142040–
07).
FOR FURTHER INFORMATION CONTACT:
Concerning the regulations, Cathy V.
Pastor or Michael P. Brewer at (202)
622–6090 (not a toll-free number);
concerning submission of comments or
to request a public hearing,
Richard.A.Hurst@irscounsel.treas.gov.
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed
amendments to regulations under
sections 401(a)(9) and 403(b) of the
Code. Section 401(a)(9) provides
required minimum distribution rules for
a qualified trust under section 401(a). In
general, under these rules, distribution
of each participant’s entire interest must
begin by April 1 of the calendar year
following the later of (1) the calendar
year in which the participant attains age
701⁄2 or (2) the calendar year in which
the participant retires (‘‘the required
beginning date’’). If the entire interest of
the participant is not distributed by the
required beginning date, then section
401(a)(9)(A) provides that the entire
interest of the participant must be
distributed beginning not later than the
required beginning date, in accordance
with regulations, over the life of the
participant or lives of the participant
and a designated beneficiary (or over a
period not extending beyond the life
expectancy of the participant or the life
expectancy of the participant and a
designated beneficiary). Section
401(a)(9)(B) provides the required
minimum distribution rules after the
death of the participant.
IRAs described in section 408, section
403(b) plans, and eligible deferred
compensation plans under section
457(b), also are subject to the required
minimum distribution rules of section
401(a)(9) pursuant to sections 408(a)(6)
and (b)(3), 403(b)(10), and 457(d)(2),
respectively, and the regulations under
those sections.
In 2002, the IRS and the Treasury
Department published final regulations
under sections 401(a)(9), 403(b), and
408 in the Federal Register (67 FR
18987). Section 1.401(a)(9)–1, A–2(a),
provides that the final regulations apply
for purposes of determining required
minimum distributions for calendar
years beginning on or after January 1,
2003. The rules for defined benefit plans
and annuities were included in a
temporary regulation, § 1.401(a)(9)–6T,
VerDate Aug<31>2005
16:05 Jul 09, 2008
Jkt 214001
as well as in a proposed regulation (67
FR 18834) in order to allow taxpayers to
comment on the rules.
In 2004, the IRS and the Treasury
Department replaced the temporary
regulations with final regulations under
§ 1.401(a)(9)–6 (69 FR 33288). The final
regulations contain a ‘‘grandfather rule’’
in Q&A–16, which provides that
annuity distribution options provided
under the terms of a governmental plan
(within the meaning section 414(d)) as
in effect on April 17, 2002, are treated
as satisfying the requirements of section
401(a)(9) if they satisfy a reasonable and
good faith interpretation of the
provisions of section 401(a)(9). In
addition, Q&A–17 provides that, for
distributions from any defined benefit
plan or annuity contract during 2003,
2004, and 2005, the payments could
satisfy a reasonable and good faith
interpretation of section 401(a)(9) in lieu
of § 1.401(a)(9)–6. For governmental
plans, § 1.401(a)(9)–6, Q&A–17,
extended this reasonable good faith
standard to the end of the calendar year
that contains the 90th day after the
opening of the first legislative session of
the legislative body with the authority
to amend the plan that begins on or after
June 15, 2004, if such 90th day is later
than December 31, 2005.
In 2003, the IRS and the Treasury
Department published final regulations
under section 457(b) in the Federal
Register (68 FR 41230). These
regulations included § 1.457–6(d),
which provides that a section 457(b)
eligible plan must meet the
requirements of section 401(a)(9) and
the regulations under that section.
In 2007, the IRS and the Treasury
Department published final regulations
under section 403(b) in the Federal
Register (72 FR 41128). These
regulations, which become effective for
tax years beginning after December 31,
2008, included § 1.403(b)–6(e)(1), which
provides that a section 403(b) contract
must meet the requirements of section
401(a)(9). Section 1.403(b)–6(e)(2)
provides, with certain exceptions, that
section 403(b) contracts apply the
section 401(a)(9) required minimum
distribution rules in accordance with
§ 1.408–8.
Section 1.408–8, Q&A–1, provides,
with certain exceptions, that in order to
satisfy section 401(a)(9) for purposes of
determining required minimum
distributions, the rules of §§ 1.401(a)(9)–
1 through 1.401(a)(9)–9 must be applied.
Section 823 of the Pension Protection
Act of 2006, Public Law 109–280 (120
Stat. 780), instructs the Secretary of the
Treasury to issue regulations under
which, for all years to which section
401(a)(9) applies, a governmental plan,
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Fmt 4702
Sfmt 4702
39631
within the meaning of section 414(d),
shall be treated as having complied with
section 401(a)(9) if such plan complies
with a reasonable good faith
interpretation of section 401(a)(9).
Explanation of Provisions
The proposed regulations would
amend the regulations under section
401(a)(9) to treat a governmental plan,
within the meaning of section 414(d), as
having complied with the rules of
section 401(a)(9) if the governmental
plan applies a reasonable and good faith
interpretation of section 401(a)(9). The
same rule would apply to an eligible
457(b) plan maintained by a
government. In addition, this rule
would apply to a section 403(b) contract
that is part of a governmental plan, and
the regulations under section 403(b)
would be amended accordingly. The
proposed regulations would also make
conforming amendments to the
regulations under section 401(a)(9) that
eliminate other special rules for
governmental plans which would be
rendered superfluous with this change.
Proposed Effective/Applicability Date
These regulations are proposed to be
applied to all years for which section
401(a)(9) applies.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866. Therefore, a
regulatory assessment is not required. It
also has been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to these regulations, and, because
§§ 1.401(a)(9)–1 and 1.403(b)–6 would
not impose a collection of information
on small entities, the Regulatory
Flexibility Act (5 U.S.C. chapter 6) does
not apply. Pursuant to section 7805(f) of
the Code, this notice of proposed
rulemaking will be submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Comments and Requests for Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
written (one signed and eight (8) copies)
or electronic comments that are
submitted timely to the IRS. All
comments will be available for public
inspection and copying. A public
hearing will be scheduled if a request to
speak is submitted in writing by any
person who timely submits written
comments. If a public hearing is
E:\FR\FM\10JYP1.SGM
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39632
Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Proposed Rules
scheduled, notice of the date, time, and
place of the public hearing will be
published in the Federal Register.
Drafting Information
The principal authors of these
regulations are Michael P. Brewer and
Cathy V. Pastor, Office of Division
Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities).
However, other personnel from the IRS
and the Treasury Department
participated in the development of these
regulations.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.401(a)(9)–1 is
amended by adding a new paragraph (d)
to A–2 as follows:
*
*
*
*
*
A–2. * * * (d) Special rule for
governmental plans. Notwithstanding
anything to the contrary in this A–2, a
governmental plan (within the meaning
of section 414(d)), or an eligible
governmental plan described in § 1.457–
2(f), is treated as having complied with
section 401(a)(9) for all years to which
section 401(a)(9) applies to the plan if
the plan complies with a reasonable and
good faith interpretation of section
401(a)(9).
*
*
*
*
*
mstockstill on PROD1PC66 with PROPOSALS
[Amended]
Par. 3. Section 1.401(a)(9)–6 is
amended by:
1. Removing Q&A–16.
2. Redesignating Q&A–17 as Q&A–16.
3. Removing the word ‘‘A–16’’ and
adding ‘‘A–15’’ in the newly-designated
A–16.
4. Removing the last sentence of the
newly-designated A–16.
Par. 4. Section 1.403(b)–6 is amended
by:
1. Revising the last sentence of
paragraph (e)(2).
2. Adding a new paragraph (e)(8).
The revisions and addition are as
follows:
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16:39 Jul 09, 2008
Jkt 214001
Timing of distributions and
*
*
*
*
*
(e) Minimum required distributions
for eligible plans.
*
*
*
*
*
(2) * * * Consequently, except as
otherwise provided in this paragraph
(e), the distribution rules in section
401(a)(9) are applied to section 403(b)
contracts in accordance with the
provisions in § 1.408–8 for purposes of
determining required minimum
distributions.
*
*
*
*
*
(8) Special rule for governmental
plans. A section 403(b) contract that is
part of a governmental plan (within the
meaning of section 414(d)) is treated as
having complied with section 401(a)(9)
for all years to which section 401(a)(9)
applies to the contract, if the contract
complies with a reasonable and good
faith interpretation of section 401(a)(9).
*
*
*
*
*
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E8–15740 Filed 7–9–08; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF JUSTICE
§ 1.401(a)(9)–1 Minimum distribution
requirement in general.
§ 1.401(a)(9)–6
§ 1.403(b)–6
benefits.
Office of Justice Programs
28 CFR Part 32
[Docket No. OJP (BJA) 1478]
RIN 1121–AA75
Public Safety Officers’ Benefits
Program
Office of Justice Programs,
Justice.
ACTION: Notice of proposed rulemaking
with request for comments.
AGENCY:
SUMMARY: The Office of Justice Programs
of the U.S. Department of Justice
proposes this rule to amend the
regulation that implements the Public
Safety Officers’ Benefits Act and
associated or related statutes. Generally
speaking, these laws provide financial
support to certain public safety officers,
or their survivors and families, when
such officers die, or become
permanently and totally disabled, as a
result of line-of-duty injuries, or when
they die of heart attacks or strokes
sustained within statutorily-specified
timeframes of engaging or participating
in certain line-of-duty activity. The
proposed rule would amend the
implementing regulation to reflect
internal agency policy and practice,
PO 00000
Frm 00006
Fmt 4702
Sfmt 4702
recent statutory enactments and court
decisions, and to make certain technical
changes, in order to keep the regulations
comprehensive and current.
DATES: Comments must be received by
no later than 5 p.m., E.S.T., on
September 8, 2008.
ADDRESSES: Please address all
comments regarding this proposed rule,
by U.S. mail, to: Hope Janke, Counsel to
the Director, Bureau of Justice
Assistance, Office of Justice Programs,
810 7th Street, NW., Washington, DC
20531; by telefacsimile transmission, to:
Hope Janke, Counsel to the Director, at
(202) 305–1367. To ensure proper
handling, please reference OJP Docket
No. 1478 on your correspondence. You
may view an electronic version of this
proposed rule at https://
www.regulations.gov, and you may also
comment by using the https://
www.regulations.gov form for this
regulation. When submitting comments
electronically, you must include OJP
Docket No. 1478 in the subject box.
FOR FURTHER INFORMATION CONTACT:
Hope Janke, Counsel to the Director,
Bureau of Justice Assistance, at (202)
514–6278, or toll-free at 1 (888) 744–
6513.
SUPPLEMENTARY INFORMATION:
I. Posting of Public Comments
Please note that all comments
received are considered part of the
public record and made available for
public inspection online at https://
www.regulations.gov. Such information
includes personal identifying
information (such as your name,
address, etc.) voluntarily submitted by
the commenter.
If you wish to submit personal
identifying information (such as your
name, address, etc.) as part of your
comment, but do not wish it to be
posted online, you must include the
phrase ‘‘Personal Identifying
Information’’ in the first paragraph of
your comment. You must also locate all
the personal identifying information
you do not want posted online in the
first paragraph of your comment and
identify what information you want
redacted.
If you wish to submit confidential
business information as part of your
comment but do not wish it to be posted
online, you must include the phrase
‘‘Confidential Business Information’’ in
the first paragraph of your comment.
You must also prominently identify
confidential business information to be
redacted within the comment. If a
comment has so much confidential
business information that it cannot be
effectively redacted, all or part of that
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]]>Agencies
[Federal Register Volume 73, Number 133 (Thursday, July 10, 2008)]
[Proposed Rules]
[Pages 39630-39632]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15740]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-142040-07]
RIN 1545-BH53
Reasonable Good Faith Interpretation of Required Minimum
Distribution Rules by Governmental Plans
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document contains proposed regulations under sections
401(a)(9) and 403(b) of the Internal Revenue Code (Code) to permit a
governmental plan to comply with the required minimum distribution
rules by using a reasonable and good faith interpretation of the
statute. These proposed regulations will affect administrators of,
employers maintaining, participants in, and beneficiaries of
governmental plans.
DATES: Written or electronic comments and requests for a public hearing
must be received by October 8, 2008.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-142040-07), room
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station,
Washington DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
142040-07),
[[Page 39631]]
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue,
NW., Washington, DC, or sent electronically via the Federal eRulemaking
Portal at https://www.regulations.gov (IRS REG-142040-07).
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Cathy V.
Pastor or Michael P. Brewer at (202) 622-6090 (not a toll-free number);
concerning submission of comments or to request a public hearing,
Richard.A.Hurst@irscounsel.treas.gov.
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed amendments to regulations under
sections 401(a)(9) and 403(b) of the Code. Section 401(a)(9) provides
required minimum distribution rules for a qualified trust under section
401(a). In general, under these rules, distribution of each
participant's entire interest must begin by April 1 of the calendar
year following the later of (1) the calendar year in which the
participant attains age 70\1/2\ or (2) the calendar year in which the
participant retires (``the required beginning date''). If the entire
interest of the participant is not distributed by the required
beginning date, then section 401(a)(9)(A) provides that the entire
interest of the participant must be distributed beginning not later
than the required beginning date, in accordance with regulations, over
the life of the participant or lives of the participant and a
designated beneficiary (or over a period not extending beyond the life
expectancy of the participant or the life expectancy of the participant
and a designated beneficiary). Section 401(a)(9)(B) provides the
required minimum distribution rules after the death of the participant.
IRAs described in section 408, section 403(b) plans, and eligible
deferred compensation plans under section 457(b), also are subject to
the required minimum distribution rules of section 401(a)(9) pursuant
to sections 408(a)(6) and (b)(3), 403(b)(10), and 457(d)(2),
respectively, and the regulations under those sections.
In 2002, the IRS and the Treasury Department published final
regulations under sections 401(a)(9), 403(b), and 408 in the Federal
Register (67 FR 18987). Section 1.401(a)(9)-1, A-2(a), provides that
the final regulations apply for purposes of determining required
minimum distributions for calendar years beginning on or after January
1, 2003. The rules for defined benefit plans and annuities were
included in a temporary regulation, Sec. 1.401(a)(9)-6T, as well as in
a proposed regulation (67 FR 18834) in order to allow taxpayers to
comment on the rules.
In 2004, the IRS and the Treasury Department replaced the temporary
regulations with final regulations under Sec. 1.401(a)(9)-6 (69 FR
33288). The final regulations contain a ``grandfather rule'' in Q&A-16,
which provides that annuity distribution options provided under the
terms of a governmental plan (within the meaning section 414(d)) as in
effect on April 17, 2002, are treated as satisfying the requirements of
section 401(a)(9) if they satisfy a reasonable and good faith
interpretation of the provisions of section 401(a)(9). In addition,
Q&A-17 provides that, for distributions from any defined benefit plan
or annuity contract during 2003, 2004, and 2005, the payments could
satisfy a reasonable and good faith interpretation of section 401(a)(9)
in lieu of Sec. 1.401(a)(9)-6. For governmental plans, Sec.
1.401(a)(9)-6, Q&A-17, extended this reasonable good faith standard to
the end of the calendar year that contains the 90th day after the
opening of the first legislative session of the legislative body with
the authority to amend the plan that begins on or after June 15, 2004,
if such 90th day is later than December 31, 2005.
In 2003, the IRS and the Treasury Department published final
regulations under section 457(b) in the Federal Register (68 FR 41230).
These regulations included Sec. 1.457-6(d), which provides that a
section 457(b) eligible plan must meet the requirements of section
401(a)(9) and the regulations under that section.
In 2007, the IRS and the Treasury Department published final
regulations under section 403(b) in the Federal Register (72 FR 41128).
These regulations, which become effective for tax years beginning after
December 31, 2008, included Sec. 1.403(b)-6(e)(1), which provides that
a section 403(b) contract must meet the requirements of section
401(a)(9). Section 1.403(b)-6(e)(2) provides, with certain exceptions,
that section 403(b) contracts apply the section 401(a)(9) required
minimum distribution rules in accordance with Sec. 1.408-8.
Section 1.408-8, Q&A-1, provides, with certain exceptions, that in
order to satisfy section 401(a)(9) for purposes of determining required
minimum distributions, the rules of Sec. Sec. 1.401(a)(9)-1 through
1.401(a)(9)-9 must be applied.
Section 823 of the Pension Protection Act of 2006, Public Law 109-
280 (120 Stat. 780), instructs the Secretary of the Treasury to issue
regulations under which, for all years to which section 401(a)(9)
applies, a governmental plan, within the meaning of section 414(d),
shall be treated as having complied with section 401(a)(9) if such plan
complies with a reasonable good faith interpretation of section
401(a)(9).
Explanation of Provisions
The proposed regulations would amend the regulations under section
401(a)(9) to treat a governmental plan, within the meaning of section
414(d), as having complied with the rules of section 401(a)(9) if the
governmental plan applies a reasonable and good faith interpretation of
section 401(a)(9). The same rule would apply to an eligible 457(b) plan
maintained by a government. In addition, this rule would apply to a
section 403(b) contract that is part of a governmental plan, and the
regulations under section 403(b) would be amended accordingly. The
proposed regulations would also make conforming amendments to the
regulations under section 401(a)(9) that eliminate other special rules
for governmental plans which would be rendered superfluous with this
change.
Proposed Effective/Applicability Date
These regulations are proposed to be applied to all years for which
section 401(a)(9) applies.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore, a regulatory assessment is not required. It also has
been determined that section 553(b) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply to these regulations, and, because
Sec. Sec. 1.401(a)(9)-1 and 1.403(b)-6 would not impose a collection
of information on small entities, the Regulatory Flexibility Act (5
U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the
Code, this notice of proposed rulemaking will be submitted to the Chief
Counsel for Advocacy of the Small Business Administration for comment
on its impact on small business.
Comments and Requests for Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written (one signed and eight (8)
copies) or electronic comments that are submitted timely to the IRS.
All comments will be available for public inspection and copying. A
public hearing will be scheduled if a request to speak is submitted in
writing by any person who timely submits written comments. If a public
hearing is
[[Page 39632]]
scheduled, notice of the date, time, and place of the public hearing
will be published in the Federal Register.
Drafting Information
The principal authors of these regulations are Michael P. Brewer
and Cathy V. Pastor, Office of Division Counsel/Associate Chief Counsel
(Tax Exempt and Government Entities). However, other personnel from the
IRS and the Treasury Department participated in the development of
these regulations.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.401(a)(9)-1 is amended by adding a new paragraph
(d) to A-2 as follows:
Sec. 1.401(a)(9)-1 Minimum distribution requirement in general.
* * * * *
A-2. * * * (d) Special rule for governmental plans. Notwithstanding
anything to the contrary in this A-2, a governmental plan (within the
meaning of section 414(d)), or an eligible governmental plan described
in Sec. 1.457-2(f), is treated as having complied with section
401(a)(9) for all years to which section 401(a)(9) applies to the plan
if the plan complies with a reasonable and good faith interpretation of
section 401(a)(9).
* * * * *
Sec. 1.401(a)(9)-6 [Amended]
Par. 3. Section 1.401(a)(9)-6 is amended by:
1. Removing Q&A-16.
2. Redesignating Q&A-17 as Q&A-16.
3. Removing the word ``A-16'' and adding ``A-15'' in the newly-
designated A-16.
4. Removing the last sentence of the newly-designated A-16.
Par. 4. Section 1.403(b)-6 is amended by:
1. Revising the last sentence of paragraph (e)(2).
2. Adding a new paragraph (e)(8).
The revisions and addition are as follows:
Sec. 1.403(b)-6 Timing of distributions and benefits.
* * * * *
(e) Minimum required distributions for eligible plans.
* * * * *
(2) * * * Consequently, except as otherwise provided in this
paragraph (e), the distribution rules in section 401(a)(9) are applied
to section 403(b) contracts in accordance with the provisions in Sec.
1.408-8 for purposes of determining required minimum distributions.
* * * * *
(8) Special rule for governmental plans. A section 403(b) contract
that is part of a governmental plan (within the meaning of section
414(d)) is treated as having complied with section 401(a)(9) for all
years to which section 401(a)(9) applies to the contract, if the
contract complies with a reasonable and good faith interpretation of
section 401(a)(9).
* * * * *
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-15740 Filed 7-9-08; 8:45 am]
BILLING CODE 4830-01-P
