[Federal Register Volume 79, Number 151 (Wednesday, August 6, 2014)]
[Rules and Regulations]
[Pages 45682-45683]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18547]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9673]
RIN 1545-BK23


Longevity Annuity Contracts; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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[[Page 45683]]

SUMMARY: This document contains corrections to final regulations (TD 
9673) that were published in the Federal Register on Wednesday, July 2, 
2014 (79 FR 37633). The final regulations are relating to the use of 
longevity annuity contracts in tax qualified defined contribution 
plans.

DATES: This correction is effective August 6, 2014 and applicable 
beginning July 2, 2014.

FOR FURTHER INFORMATION CONTACT: Jamie Dvoretzky, at (202) 317-6799 
(not a toll free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9673) that are the subject of this 
correction is under section 401(a) of the Internal Revenue Code.

Need for Correction

    As published, the final (TD 9673) contains 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 amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

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


0
Par. 2. Section 1.401(a)(9)-6 is corrected by revising paragraph 
(c)(4)(i) introductory text, the second sentence of paragraph 
(d)(1)(ii)(B), and paragraph (d)(3)(i) to read as follows:


Sec.  1.401(a)(9)-6  Required minimum distributions for defined benefit 
plans and annuity contracts.

* * * * *
    (c) * * *
    (4) * * *
    (i) * * * In lieu of a life annuity payable to a designated 
beneficiary under paragraph (c)(1) or (2) of this A-17, a QLAC is 
permitted to provide for a benefit to be paid to a beneficiary after 
the death of the employee in an amount equal to excess of--
* * * * *
    (d) * * *
    (1) * * *
    (ii) * * *
    (B) * * * If the excess premium (including the fair market value of 
an annuity contract that is not intended to be a QLAC, if applicable) 
is returned to the non-QLAC portion of the employee's account after the 
last valuation date for the calendar year in which the excess premium 
was originally paid, then the employee's account balance for that 
calendar year must be increased to reflect that excess premium in the 
same manner as an employee's account balance is increased under A-2 of 
Sec.  1.401(a)(9)-7 to reflect a rollover received after the last 
valuation date.
* * * * *
    (3) * * *
    (i) Structural deficiency. If a contract fails to be a QLAC at any 
time for a reason other than an excess premium described in paragraph 
(d)(1)(ii) of this A-17, then as of the date of purchase the contract 
will not be treated as a QLAC (for purposes of A-3(d) of Sec.  
1.401(a)(9)-5) or as a contract that is intended to be a QLAC (for 
purposes of paragraph (b) of this A-17).
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2014-18547 Filed 8-5-14; 8:45 am]
BILLING CODE 4830-01-P