Application of Section 409A to Nonqualified Deferred Compensation Plans; Correction, 54945 [E8-22383]
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Federal Register / Vol. 73, No. 186 / Wednesday, September 24, 2008 / Rules and Regulations
Filer and updating company data are set
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EDGAR Filer Manual, Volume III: ‘‘N–
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(September 2005). All of these
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Dated: September 18, 2008.
By the Commission.
BILLING CODE 8010–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9321]
RIN 1545–BE79
rwilkins on PROD1PC63 with RULES
Application of Section 409A to
Nonqualified Deferred Compensation
Plans; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
AGENCY:
SUMMARY: This document contains
corrections to final regulations (TD
16:28 Sep 23, 2008
Background
The final regulations that are subject
to this document are under section
409A of the Internal Revenue Code.
Need for Correction
As published, final regulations (TD
9321) 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
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendment.
■
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read as follows:
■
Authority: 26 U.S.C. 7805 * * *
■ Par. 2. Section 1.409A–6, paragraph
(a)(3)(i) is revised to read as follows:
§ 1.409A–6 Application of section 409A
and effective dates.
*
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E8–22391 Filed 9–23–08; 8:45 am]
VerDate Aug<31>2005
9321) which were published in the
Federal Register on April 17, 2007 (72
FR 19323). The final regulations relate
to section 409A and nonqualified
deferred compensation plans.
DATES: This correction is effective
September 24, 2008, and applicable on
April 17, 2007.
FOR FURTHER INFORMATION: Guy R.
Traynor, (202) 622–3693 (not a toll-free
number).
SUPPLEMENTARY INFORMATION:
Jkt 214001
*
*
*
*
(a) * * *
(3) * * *
(i) Nonaccount balance plans. The
amount of compensation deferred before
January 1, 2005, under a nonqualified
deferred compensation plan that is a
nonaccount balance plan (as defined in
§ 1.409A–1(c)(2)(i)(C)), equals the
present value of the amount to which
the service provider would have been
entitled under the plan if the service
provider voluntarily terminated services
without cause on December 31, 2004,
and received a payment of the benefits
available from the plan on the earliest
possible date allowed under the plan to
receive a payment of benefits following
the termination of services, and received
the benefits in the form with the
maximum value.
Notwithstanding the foregoing, for
any subsequent taxable year of the
service provider, the grandfathered
amount may increase to equal the
PO 00000
Frm 00015
Fmt 4700
Sfmt 4700
54945
present value of the benefit the service
provider actually becomes entitled to, in
the form and at the time actually paid,
determined under the terms of the plan
(including applicable limits under the
Internal Revenue Code), as in effect on
October 3, 2004, without regard to any
further services rendered by the service
provider after December 31, 2004, or
any other events affecting the amount of
or the entitlement to benefits (other than
a participant election with respect to the
time or form of an available benefit). For
purposes of calculation the present
value of a benefit under this paragraph
(c)(3)(i), reasonable actuarial
assumptions and methods must be used.
Whether assumptions and methods are
reasonable for this purpose is
determined as of each date the benefit
is valued for purposes of determining
the grandfathered benefit, provided that
any reasonable actuarial assumptions
and methods that were used by the
service recipient with respect to such
benefit as of December 31, 2004, will
continue to be treated as reasonable
assumptions and methods for purposes
of calculating the grandfathered benefit.
Actuarial assumptions and methods
will be presumed reasonable if they are
the same as those used to value benefits
under a qualified plan sponsored by the
service recipient the benefits under
which are part of the benefit formula
under, or otherwise impact the amount
of benefits under, the nonaccount
balance nonqualified deferred
compensation plan.
*
*
*
*
*
Guy R. Traynor,
Federal Register Liaison, Legal Processing
Division, Associate Chief Counsel (Procedure
and Administration).
[FR Doc. E8–22383 Filed 9–23–08; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9422]
RIN 1545–BE95
S Corporation Guidance Under AJCA
of 2004 and GOZA of 2005; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to final regulations.
AGENCY:
SUMMARY: This document contains a
correction to final regulations (TD 9422)
that were published in the Federal
Register on Thursday, August 14, 2008
(73 FR 47526) providing guidance
E:\FR\FM\24SER1.SGM
24SER1
]]>Agencies
[Federal Register Volume 73, Number 186 (Wednesday, September 24, 2008)]
[Rules and Regulations]
[Page 54945]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22383]
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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.
ACTION: Correcting amendment.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to final regulations (TD
9321) which were published in the Federal Register on April 17, 2007
(72 FR 19323). The final regulations relate to section 409A and
nonqualified deferred compensation plans.
DATES: This correction is effective September 24, 2008, and applicable
on April 17, 2007.
FOR FURTHER INFORMATION: Guy R. Traynor, (202) 622-3693 (not a toll-
free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are subject to this document are under
section 409A of the Internal Revenue Code.
Need for Correction
As published, final regulations (TD 9321) 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 amendment.
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read as
follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.409A-6, paragraph (a)(3)(i) is revised to read as
follows:
Sec. 1.409A-6 Application of section 409A and effective dates.
* * * * *
(a) * * *
(3) * * *
(i) Nonaccount balance plans. The amount of compensation deferred
before January 1, 2005, under a nonqualified deferred compensation plan
that is a nonaccount balance plan (as defined in Sec. 1.409A-
1(c)(2)(i)(C)), equals the present value of the amount to which the
service provider would have been entitled under the plan if the service
provider voluntarily terminated services without cause on December 31,
2004, and received a payment of the benefits available from the plan on
the earliest possible date allowed under the plan to receive a payment
of benefits following the termination of services, and received the
benefits in the form with the maximum value.
Notwithstanding the foregoing, for any subsequent taxable year of
the service provider, the grandfathered amount may increase to equal
the present value of the benefit the service provider actually becomes
entitled to, in the form and at the time actually paid, determined
under the terms of the plan (including applicable limits under the
Internal Revenue Code), as in effect on October 3, 2004, without regard
to any further services rendered by the service provider after December
31, 2004, or any other events affecting the amount of or the
entitlement to benefits (other than a participant election with respect
to the time or form of an available benefit). For purposes of
calculation the present value of a benefit under this paragraph
(c)(3)(i), reasonable actuarial assumptions and methods must be used.
Whether assumptions and methods are reasonable for this purpose is
determined as of each date the benefit is valued for purposes of
determining the grandfathered benefit, provided that any reasonable
actuarial assumptions and methods that were used by the service
recipient with respect to such benefit as of December 31, 2004, will
continue to be treated as reasonable assumptions and methods for
purposes of calculating the grandfathered benefit.
Actuarial assumptions and methods will be presumed reasonable if
they are the same as those used to value benefits under a qualified
plan sponsored by the service recipient the benefits under which are
part of the benefit formula under, or otherwise impact the amount of
benefits under, the nonaccount balance nonqualified deferred
compensation plan.
* * * * *
Guy R. Traynor,
Federal Register Liaison, Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. E8-22383 Filed 9-23-08; 8:45 am]
BILLING CODE 4830-01-P
