[Federal Register Volume 79, Number 129 (Monday, July 7, 2014)]
[Rules and Regulations]
[Page 38247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-14989]

Rules and Regulations
                                                Federal Register

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Federal Register / Vol. 79, No. 129 / Monday, July 7, 2014 / Rules 
and Regulations

[[Page 38247]]


Internal Revenue Service

26 CFR Part 1

[TD 9665]
RIN 1545-BG12

Tax Treatment of Qualified Retirement Plan Payment of Accident or 
Health Insurance Premiums; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.


SUMMARY: This document contains corrections to final regulations (TD 
9665) that were published in the Federal Register on Monday, May 12, 
2014 (79 FR 26838) clarifying the rules regarding the tax treatment of 
payments by qualified retirement plans for accident or health 
insurance. The final regulations set forth the general rule under 
section 402(a) that amounts held in a qualified plan that are used to 
pay accident or health insurance premiums are taxable distributions 
unless described in certain statutory exemptions. The final regulations 
do not extend this result to arrangements under which amounts are used 
to pay premiums for disability insurance that replaces retirement plan 
contributions in the event of a participant's disability. These 
regulations affect sponsors, administrators, participants, and 
beneficiaries of qualified retirement plans.

DATES: This correction is effective on July 7, 2014, and is applicable 
May 12, 2014.

FOR FURTHER INFORMATION CONTACT: Michael P. Brewer or Lauson C. Green 
at (202) 317-6700 (not a toll-free number).



    The final regulations that are the subject of this document are 
under section 402(a) of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9665) 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 amendments:


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

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

Par. 2. In Sec.  1.402(a)-1, the ninth sentence of paragraph (e)(6) 
Example 2. (i) is revised to read as follows:

Sec.  1.402(a)-1  Taxability of beneficiary under a trust which meets 
the requirements of section 401(a).

* * * * *
    (e) * * *
    (6) * * *
    Example 2.  (i) * * * During the period Participant Q is absent 
from employment due to disability, the insurer pays the trust the 
amount of the elective, matching, and non-elective employer profit-
sharing contributions that would have been made to the trust with 
respect to Participant Q had Participant Q not been disabled. * * *
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2014-14989 Filed 7-3-14; 8:45 am]