45990 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 

following officials of the Cuban 

Government and Cuban Communist 

Party: 

(i) Ineligible Cuban Government 

Officials. Ministers and vice-ministers; 

members of the Council of State; 

members of the Council of Ministers; 

members and employees of the National 

Assembly of People’s Power; members 

of any provincial assembly; local sector 

chiefs of the Committees for the Defense 

of the Revolution; Director Generals and 

sub-Director Generals and higher of all 

Cuban ministries and state agencies; 

employees of the Ministry of the Interior 

(MININT); employees of the Ministry of 

Defense (MINFAR); secretaries and first 

secretaries of the Confederation of Labor 

of Cuba (CTC) and its component 

unions; chief editors, editors and deputy 

editors of Cuban state-run media 

organizations and programs, including 

newspapers, television, and radio; or 

members and employees of the Supreme 

Court (Tribuno Supremo Nacional). 

(ii) Ineligible Cuban Communist Party 

Officials. Members of the Politburo; the 

Central Committee; Department Heads 

of the Central Committee; employees of 

the Central Committee; and the 

secretaries and first secretaries of 

provincial Party central committees. 

PART 746—[AMENDED] 

■ 6. The authority citation for part 746 

is revised to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec. 

1503, Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 

6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; 

E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., 

p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 

Comp., p. 899; E.O. 13222, 3 CFR, 2001 

Comp., p. 783; Presidential Determination 

2003–23 of May 7, 2003, 68 FR 26459, May 

16, 2003; Presidential Determination 2007–7 

of December 7, 2006, 72 FR 1899 (January 16, 

2007); Notice of August 13, 2009, 74 FR 

41325 (August 14, 2009). 

■ 7. Section 746.2, is amended by 

adding a paragraph (a)(1)(xiii) and by 

revising paragraph (b)(2) to read as 

follows: 

§ 746.2 Cuba. 

(a) * * * 

(1) * * * 

(xiii) Commodities and software 

authorized under License Exception 

Consumer Communications Devices 

(CCD) (see § 740.19 of the EAR). 

* * * * * 

(b) * * * 

(2) Items may be authorized for export 

or reexport to Cuba on a case-by-case 

basis, provided the items are necessary 

to provide efficient and adequate 

telecommunications links between the 

United States and Cuba, including links 

established through third countries, and 

including the provision of satellite radio 

or satellite television services to Cuba. 

* * * * * 

Dated: September 1, 2009. 

Matthew S. Borman, 

Acting Assistant Secretary for Export 

Administration. 

[FR Doc. E9–21402 Filed 9–3–09; 4:15 pm] 

BILLING CODE 3510–33–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 090126062–91139–01] 

RIN 0694–AE54 

Revisions to Certain End-User 

Controls Under the Export 

Administration Regulations; 

Clarification Regarding License 

Requirements for Transfers (incountry) to Persons Listed on the 

Entity List 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) is amending the Export 

Administration Regulations (EAR) to 

make revisions to three sections that are 

used by the United States Government 

as the basis for placing persons onto the 

Entity List. These three sections 

specified license requirements for 

exports and reexports to persons listed 

on the Entity List, however; the sections 

were silent regarding whether or not the 

scope of the licensing requirements 

included transfers (in-country). This 

rule adds transfers (in-country) to the 

scope of the license requirements under 

each of the three sections. As a result of 

adding transfers (in-country) to these 

three end-user controls, all of the enduse and end-user controls that are used 

as a regulatory basis for placing persons 

on the Entity List now specify that the 

scope of the license requirements 

includes exports, reexports, and 

transfers (in-country). 

The Entity List provides notice to the 

public that certain exports, reexports, 

and transfers (in-country) to parties 

identified on the Entity List require a 

license from the Bureau of Industry and 

Security (BIS) and that availability of 

License Exceptions in such transactions 

is limited. 

DATES: Effective Date: This rule is 

effective September 8, 2009. Although 

there is no formal comment period, 

public comments on this regulation are 

welcome on a continuing basis. 

ADDRESSES: You may submit comments, 

identified by RIN 0694–AE54, by any of 

the following methods: 

E-mail: publiccomments@bis.doc.gov. 

Include ‘‘RIN 0694–AE54’’ in the subject 

line of the message. 

Fax: (202) 482–3355. Please alert the 

Regulatory Policy Division, by calling 

(202) 482–2440, if you are faxing 

comments. 

Mail or Hand Delivery/Courier: 

Timothy Mooney, U.S. Department of 

Commerce, Bureau of Industry and 

Security, Regulatory Policy Division, 

14th St. & Pennsylvania Avenue, NW., 

Room 2705, Washington, DC 20230, 

Attn: RIN 0694–AE54. 

Send comments regarding the 

collection of information associated 

with this rule, including suggestions for 

reducing the burden, to Jasmeet K. 

Seehra, Office of Management and 

Budget (OMB), by e-mail to 

Jasmeet_K._Seehra@omb.eop.gov or by 

fax to (202) 395–7285; and to the 

Regulatory Policy Division, Bureau of 

Industry and Security, Department of 

Commerce, 14th St. & Pennsylvania 

Avenue, NW., Room 2705, Washington, 

DC 20230. Comments on this collection 

of information should be submitted 

separately from comments on the final 

rule (i.e., RIN 0694–AE54)—all 

comments on the latter should be 

submitted by one of the three methods 

outlined above. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Scott Sangine, End-User 

Review Committee, Office of the 

Assistant Secretary, Export 

Administration, Bureau of Industry and 

Security, Department of Commerce, 

Phone: (202) 482–3343, Fax: (202) 482– 

3911, E-mail: bscott@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Entity List provides notice to the 

public that certain exports, reexports, 

and transfers (in-country) to parties 

identified on the Entity List require a 

license from the Bureau of Industry and 

Security (BIS) and that availability of 

license exceptions in such transactions 

is limited. Persons are placed on the 

Entity List on the basis of certain 

sections of part 744 (Control Policy: 

End-User and End-Use Based) of the 

EAR. 

The End-User Review Committee 

(ERC), composed of representatives of 

the Departments of Commerce (Chair), 

State, Defense, Energy and, where 

appropriate, the Treasury, makes all 

decisions regarding additions to, 

removals from or changes to the Entity 


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Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 45991 

List. The ERC makes all decisions to add 

an entry to the Entity List by majority 

vote and all decisions to remove or 

modify an entry by unanimous vote. 

There are six sections in part 744 of 

the EAR that provide the regulatory 

basis for putting persons on the Entity 

List: §§ 744.2, 744.3, 744.4, 744.10, 

744.11, and 744.20. Sections 744.2, 

744.3, and 744.4 are foreign policy enduse controls under the EAR that prohibit 

transactions destined for certain 

nuclear, missile or chemical and 

biological end-uses. Sections 744.10, 

744.11, and 744.20 are foreign policy 

end-user controls that prohibit 

transactions destined for certain 

individuals. Prior to the publication of 

this rule, the three end-user controls 

each specified that they applied to 

exports and reexports, but were silent 

on whether these end-user controls also 

applied to transfers (in-country). The 

United States Government intends the 

license requirements for §§ 744.10, 

744.11, and 744.20 to apply to transfers 

(in-country) as well as to exports and 

reexports. Therefore, this rule extends 

the scope of these three sections to 

include transfers (in-country). 

The rationale for the extension of this 

license requirement to include transfers 

(in-country) is that the United States 

Government’s objective in placing a 

person on the Entity List on the basis of 

one of the end-user controls in part 744 

of the EAR is to have an opportunity to 

review any transaction involving items 

subject to the EAR prior to shipment or 

transfer (in-country) to a listed person. 

Regardless of the form of the transaction 

(export, reexport, or transfer (incountry)), the United States Government 

believes it is important to review all 

transactions involving persons listed on 

the Entity List prior to the initiation of 

a transaction with a listed person and/ 

or receipt by the listed person of an item 

in a transaction. 

In publishing this rule, the United 

States Government is achieving the 

export control objective of allowing the 

United States Government to have prior 

review of any transaction involving 

items subject to the EAR and persons 

included on the Entity List. This prior 

review is important because the United 

States Government does not want these 

end-users of concern (i.e., persons listed 

on the Entity List) to receive items 

subject to the EAR that might allow 

them to continue their activities of 

concern without specific United States 

Government authorization. 

This rule also clarifies that prior to 

the publication of this rule, persons 

added to the Entity List on the basis of 

their involvement in the activities 

described in sections 744.2, 744.3 and 

744.4, as described above, were subject 

to licensing requirements applicable to 

exports, reexports, and transfers (incountry). 

This rule makes the following 

revisions to the Export Administration 

Regulations: 

In Section 744.10 (Restrictions on 

Certain Entities in Russia), this rule 

expands the scope of this end-user 

control by adding transfer (in-country) 

to the license requirements of this enduser control. With the publication of 

this rule, the license requirements for 

this end-user control apply to exports, 

reexports, and transfers (in-country). 

Specifically, this rule revises the second 

sentence of paragraph (a) to specify that 

a license is required, to the extent 

specified on the Entity List, to transfer 

(in-country) any item subject to the EAR 

to such entities (i.e., persons added to 

the Entity List on the basis of § 744.10). 

This rule also revises paragraph (c) to 

specify that license applications to 

transfer (in-country) items subject to the 

EAR to these entities will be reviewed 

with a presumption of denial. 

In Section 744.11 (License 

Requirements that Apply to Entities 

Acting Contrary to the National Security 

or Foreign Policy Interests of the United 

States), this rule expands the scope of 

this end-user control by adding transfer 

(in-country) to the license requirements 

of this end-user control. With the 

publication of this rule, the license 

requirements for this end-user control 

apply to exports, reexports, and 

transfers (in-country). To broaden the 

scope of this end-user control, this rule 

makes three changes to this section. 

First, this rule revises the first sentence 

of the introductory text of this section 

to specify that transfers (in-country) are 

within the scope of the foreign policy 

controls that BIS may impose under this 

section. Second, this rule revises the 

first sentence of paragraph (a) to specify 

that for the license requirements of this 

section, a license is required, to the 

extent specified on the Entity List, to 

transfer (in-country) any item subject to 

the EAR to an entity that is listed on the 

Entity List in an entry that contains a 

reference to this section (i.e., persons 

added to the Entity List on the basis of 

§ 744.11). Third, under paragraph (b)(5), 

this rule adds transfer (in-country) to 

the scope of this illustrative example 

provided for the criteria used for 

revising the Entity List in paragraph (b) 

of this section. 

In Section 744.20 (License 

Requirements that Apply to Certain 

Sanctioned Entities), this rule expands 

the scope of this end-user control by 

adding transfer (in-country) to the 

license requirements of this end-user 

control. With the publication of this 

rule, the license requirements for this 

end-user control apply to exports, 

reexports and transfers (in-country). 

Specifically, this rule revises the 

introductory text of paragraph (a) to 

specify that a license is required, to the 

extent specified on the Entity List, to 

transfer (in-country) any item subject to 

the EAR to such entities (i.e., persons 

added to the Entity List on the basis of 

§ 744.20). This rule also revises 

paragraph (b) to add transfer (incountry) to the general restriction on 

using license exceptions in paragraph 

(b) of this section. Lastly, this rule 

revises paragraph (c) to specify that 

license applications to transfer (incountry) items subject to the EAR to 

these entities will be reviewed with a 

presumption of denial. 

In Supplement No. 4 to part 744 (The 

Entity List) of the EAR, this rule revises 

the introductory text of the Entity List 

to specify that the license requirements 

for these entities includes exports, 

reexports and transfers (in-country), 

unless otherwise stated. This 

clarification is needed because now all 

of the sections of part 744 that provide 

the regulatory basis for adding a person 

to the Entity List include license 

requirements for exports, reexports and 

transfers (in-country), unless otherwise 

specifically stated in an entry on the 

Entity List for a listed person. 

Consistent with the provisions of 

section 6 of the Export Administration 

Act of 1979, as amended (EAA), a 

foreign policy report was submitted to 

Congress on August 11, 2009, notifying 

Congress of the imposition of foreign 

policy-based licensing requirements 

reflected in this rule. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

Comp., p. 783 (2002), as extended by the 

Notice of August 13, 2009, 74 FR 41325 

(August 14, 2009), has continued the 

Export Administration Regulations in 

effect under the International 

Emergency Economic Powers Act. 

Rulemaking Requirements 

1. This rule has been determined to be 

not significant for purposes of Executive 

Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to nor be subject to a penalty 

for failure to comply with a collection 

of information, subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

Office of Management and Budget 


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45992 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 

(OMB) Control Number. This regulation 

involves collections previously 

approved by the OMB under control 

numbers 0694–0088, ‘‘Multi-Purpose 

Application,’’ which carries a burden 

hour estimate of 58 minutes to prepare 

and submit form BIS–748. 

Miscellaneous and recordkeeping 

activities account for 12 minutes per 

submission. Total burden hours 

associated with the Paperwork 

Reduction Act and Office of 

Management and Budget control 

number 0694–0088 are expected to 

increase slightly as a result of this rule. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

participation, and a delay in effective 

date, are inapplicable because this 

regulation involves a military or foreign 

affairs function of the United States. 

(See 5 U.S.C. 553(a)(1)). Further, no 

other law requires that a notice of 

proposed rulemaking and an 

opportunity for public comment be 

given for this rule. Because a notice of 

proposed rulemaking and an 

opportunity for public comment are not 

required to be given for this rule by 5 

U.S.C. 553, or by any other law, the 

analytical requirements of the 

Regulatory Flexibility Act, 5 U.S.C. 601 

et seq., are not applicable. 

List of Subjects in 15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

■ Accordingly, part 744 of the Export 

Administration Regulations (15 CFR 

parts 730–774) is amended as follows: 

PART 744—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 744 is revised to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 

42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 

U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 

1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 

3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 

FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 

12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 

356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 

Comp., p. 228; E.O. 13099, 63 FR 45167, 3 

CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 

44025, 3 CFR, 2001 Comp., p. 783; E.O. 

13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 

786; Notice of August 13, 2009, 74 FR 41325 

(August 14, 2009); Notice of November 10, 

2008, 73 FR 67097 (November 12, 2008). 

■ 2. Section 744.10 is amended: 

■ a. By revising the second sentence of 

paragraph (a); and 

■ b. By revising paragraph (c), to read as 

follows: 

§ 744.10 Restrictions on certain entities in 

Russia. 

(a) * * * A license is required, to the 

extent specified on the Entity List, to 

export, reexport, or transfer (in-country) 

any item subject to the EAR to such 

entities. 

* * * * * 

(c) License review standard. 

Applications to export, reexport, or 

transfer (in-country) items subject to the 

EAR to these entities will be reviewed 

with a presumption of denial. 

■ 3. Section 744.11 is amended: 

■ a. By revising the first sentence of the 

introductory text of the section; 

■ b. By revising the first sentence of 

paragraph (a); and 

■ c. By revising paragraph (b)(5), to read 

as follows: 

§ 744.11 License requirements that apply 

to entities acting contrary to the national 

security or foreign policy interests of the 

United States. 

BIS may impose foreign policy export, 

reexport, and transfer (in-country) 

license requirements, limitations on 

availability of license exceptions, and 

set license application review policy 

based on the criteria in this section. 

* * * 

(a) * * *A license is required, to the 

extent specified on the Entity List, to 

export, reexport, or transfer (in-country) 

any item subject to the EAR to an entity 

that is listed on the Entity List in an 

entry that contains a reference to this 

section. * * * 

(b) * * * 

(5) Engaging in conduct that poses a 

risk of violating the EAR when such 

conduct raises sufficient concern that 

the End-User Review committee 

believes that prior review of exports, 

reexports, or transfers (in-country) 

involving the party and the possible 

imposition of license conditions or 

license denial enhances BIS’s ability to 

prevent violations of the EAR. 

■ 4. Section 744.20 is amended: 

■ a. By revising the first sentence of the 

introductory text of the section; 

■ b. By revising the second sentence of 

paragraph (a); and 

■ c. By revising paragraphs (b) and (c), 

to read as follows: 

§ 744.20 License requirements that apply 

to certain sanctioned entities. 

BIS may impose, as foreign policy 

controls, export, reexport, and transfer 

(in-country) license requirements and 

set licensing policy with respect to 

certain entities that have been 

sanctioned by the State Department. 

* * * 

(a) * * * A license is required, to the 

extent specified on the Entity List, to 

export, reexport, or transfer (in-country) 

any item to such entities. 

(b) License Exceptions. No license 

exception may be used to export, 

reexport, or transfer (in-country) to such 

entities unless specifically authorized 

on the Entity List. 

(c) Licensing policy. Applications to 

export, reexport, or transfer (in-country) 

to such entities will be reviewed 

according to the licensing policy set 

forth on the Entity List. 

■ 5. Supplement No. 4 to part 744 is 

amended by revising the introductory 

text, to read as follows: 

Supplement No. 4 to Part 744—Entity 

List 

Country Entity License requirement License review policy Federal Register citation 

This Supplement lists certain entities subject to license requirements for specified items under this part 744 of the EAR. License requirements 

for these entities include exports, reexports, and transfers (in-country) unless otherwise stated. This list of entities is revised and updated on a 

periodic basis in this Supplement by adding new or amended notifications and deleting notifications no longer in effect. 

* * * * * * * 


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Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 45993 

Dated: August 31, 2009. 

Matthew S. Borman, 

Acting Assistant Secretary for Export 

Administration. 

[FR Doc. E9–21367 Filed 9–4–09; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9459] 

RIN 1545–BH53 

Reasonable Good Faith Interpretation 

of Required Minimum Distribution 

Rules by Governmental Plans 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

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 regulations affect 

administrators of, employers 

maintaining, participants in, and 

beneficiaries of governmental plans. 

DATES: Effective Date: These regulations 

are effective on September 8, 2009. 

Applicability Date: These regulations 

apply to all plan years to which section 

401(a)(9) applies to the plan. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the regulations, Cathy V. 

Pastor or Michael P. Brewer at (202) 

622–6090 (not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

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, 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) (PPA 06), 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). 

On July 10, 2008, the IRS and 

Treasury Department published a notice 

of proposed rulemaking (REG–142040– 

07) in the Federal Register (73 FR 

39630–01) proposing regulations that 

would implement section 823 of PPA 06 

by amending the regulations under 

sections 401(a)(9) and 403(b) of the 

Code. The IRS and Treasury Department 

received no comments on the proposed 

regulations and no public hearing was 

requested or held. Accordingly, the 

provisions of these final regulations are 

identical to the proposed regulations. 

Explanation of Provisions 

The final regulations 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 applies to an eligible 457(b) 

plan maintained by a government. In 

addition, this rule applies to a section 

403(b) contract that is part of a 

governmental plan, and the regulations 

under section 403(b) are amended 

accordingly. The final regulations also 

make conforming amendments to the 

regulations under section 401(a)(9) that 

eliminate other special rules for 


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