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###### Department of the Treasury

###### Internal Revenue Service 

          - 26 CFR Part 1 
          - [TD 9280] 
          - RIN 1545-BE10 

# AGENCY:

Internal Revenue Service (IRS), Treasury. 

# ACTION:

Correcting amendment. 

# SUMMARY:

                        This document contains corrections to final regulations that were published in the                         **Federal Register**                         on August 9, 2006 (71 FR 45379) that provide guidance on certain issues under section 411(d)(6) of the Internal Revenue Code (Code), including the interaction between the anti-cutback rules of section 411(d)(6) and the nonforfeitability requirements of section 411(a).                     

# EFFECTIVE DATE:

This correction is effective August 9, 2006. 

# FOR FURTHER INFORMATION CONTACT:

Pamela R. Kinard, at (202) 622-6060 (not a toll-free number). 

# SUPPLEMENTARY INFORMATION:

## Background 

The final regulations that are the subject of this correction are under section 411(d)(6) of the Code. 

## Need for Correction 

As published, the final regulations (TD 9280), 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: 

# 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 1.411(d)-3 is amended by revising paragraph (a)(3)(i), second sentence and (a)(4)                         *Example 4*                         (ii), second sentence to read as follows:                     

§ 1.411(d)-3 

(a) * * * 

(3) * * * However, such an amendment does not violate section 411(d)(6) to the extent it applies with respect to benefits that accrue after the applicable amendment date. 

(4) * * * 

# Example 4 * * *

 

(ii) * * * A method of avoiding a section 411 (d)(6) violation with respect to account balances attributable to benefits accrued as of the applicable amendment date and earnings thereon would be for Plan D to provide for the vested percentage of G and each other participant in Plan E to be no less than the greater of the vesting percentages under the two vesting schedules (for example, for G and each other participant in Plan E to be 20% vested upon completion of 3 years of service, 40% vested upon completion of 4 years of service, and fully vested upon completion of 5 years of service) for those account balances and earnings.

* * * * *

Cynthia Grigsby,

Senior Federal Liaison Officer, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). 

[FR Doc. 06-7862 Filed 9-20-06; 8:45 am] 

BILLING CODE 4830-01-P