| The 2005 additions found in the list marked as (new) are listed below: |
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401(a)(4) (Non-discrimination): Amendments to § 1.401(a)(4)-9 of the Regulations relating to cross-testing of new comparability plans were published on June 29, 2001. Rev. Rul. 2004-21 |
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404 (Deductibility of Contributions): ESOP dividends may be reinvested without the loss of dividend deductions |
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Notice 2002-2 provides guidance with respect to the changes made to § 404(k) and on the effective date of § 409(p) |
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409—(ESOPs): Section 409(p) relating to restrictions on the allocation of employer securities in an ESOP maintained by an S corporation |
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Section 1.409(p)-1T of the Regulations was published on July 21, 2003 (68 Fed. Reg. 42970). (New) |
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Section 1.409(p)-1T of the Regulations was published on December 17, 2004 (69 Fed. Reg. 75455). (New) |
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Rev. Proc. 2003-23, 2003-1 C.B. 599 as modified and superseded by Rev. Proc. 2004-14, 2004-1 C.B. 489 allows a direct rollover from an ESOP maintained by an S corporation to an individual retirement plan (IRA). (New) |
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Rev. Rul. 2003-6, 2003-1 C.B. 286 provides guidance with respect to whether an ESOP maintained by an S corporation is eligible for the delayed effective date of § 409(p) under § 656(d)(2) of EGTRRA. (New) |
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Rev. Rul. 2004-4, 2004-1 C.B. 414 provides guidance relating to synthetic equity owned by a disqualified person in a nonallocation year of an ESOP maintained by an S corporation. (New) |
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411(a). Rev. Rul. 2003-65 Freezing and Later Unfreezing or Merging a Defined Benefit Plan, Guidance on Service |
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411(d)(6) (Anti-cutback rules): |
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Central Laborers’ Pension Fund v. Heinz , 124 S.Ct. 2230 (2004). DB plans |
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Rev. Proc. 2005-23, 2005-18 as modified by Rev. Proc. 2005-76 extending the deadline for a qualified retirement plan to be in operationally compliant with a reforming plan amendment to be eligible for the treatment described in section 3.02(1-5) of Rev. Proc. 2005-23 |
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Section 411(d)(6)(D) and (E) permit the elimination of certain optional forms of benefit under certain conditions. Section 1.411(d)-4, Q&A-2(e) (below for reference) |
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Section 645(b)(3) of EGTRRA directed the Secretary of the Treasury to issue regulations under § 411(d)(6) |
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Section 1.411(d)-3 of the Regulations was published on August 12, 2005 (70 Fed. Reg. 47109). (New) |
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412 (Minimum Funding): |
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Rev. Rul. 2004-20 provides guidance with respect to whether a qualified pension plan can be a § 412(i) plan if the plan holds life insurance contracts and annuity contracts for benefits at normal retirement age in excess of a participant’s benefits at normal retirement age under the plan |
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Notice 2004-59 provides guidance with respect to restrictions placed on plan amendments following an employer’s election of an alternative deficit reduction contribution |
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415 (Annual additions): |
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Section 415(b) of the Code was amended by § 611 of EGTRRA to increase the dollar limit and change the age when the limit is reduced or increased |
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Rev. Rul. 2001-51. The EGTRRA changes to contribution and benefit limitations |
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Section 415(b)(2)(E)(ii) was amended by PFEA to fix the percentage at 5.50% |
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Notice 2004-78 provides the actuarial assumptions that must be used for distributions with annuity starting dates occurring during the plans years beginning in 2004 and 2005 |
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416 (Top Heavy): |
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Rev. Rul. 2005-55 provides guidance with respect to medical reimbursement accounts under a profit sharing plan |
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2004 Cumulative List |
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Section 1.411(d)-4
Par. 2. Section 1.411(d)-4, Q&A-2(e) is revised to read as follows:
Q&A-2: |
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(e) |
Permitted plan amendments affecting alternative forms of payment under defined contribution plans— |
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(1) |
General rule. A defined contribution plan does not violate the requirements of section 411(d)(6) merely because the plan is amended to eliminate or restrict the ability of a participant to receive payment of accrued benefits under a particular optional form of benefit for distributions with annuity starting dates after the date the amendment is adopted if, after the plan amendment is effective with respect to the participant, the alternative forms of payment available to the participant include payment in a single-sum distribution form that is otherwise identical to the optional form of benefit that is being eliminated or restricted.
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(2) |
Otherwise identical single-sum distribution. For purposes of this paragraph (e), a single-sum distribution form is otherwise identical to an optional form of benefit that is eliminated or restricted pursuant to paragraph (e)(1) of this Q&A-2 only if the single-sum distribution form is identical in all respects to the eliminated or restricted optional form of benefit (or would be identical except that it provides greater rights to the participant) except with respect to the timing of payments after commencement. For example, a single-sum distribution form is not otherwise identical to a specified installment form of benefit if the single-sum distribution form is not available for distribution on the date on which the installment form would have been available for commencement, is not available in the same medium of distribution as the installment form, or imposes any condition of eligibility that did not apply to the installment form. However, an otherwise identical distribution form need not retain rights or features of the optional form of benefit that is eliminated or restricted to the extent that those rights or features would not be protected from elimination or restriction under section 411(d)(6) or this section. |
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(3) |
Example. The following example illustrates the application of this paragraph (e):
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(i) |
P is a participant in Plan M, a qualified profit-sharing plan with a calendar plan year that is invested in mutual funds. The distribution forms available to P under Plan M include a distribution of P's vested account balance under Plan M in the form of distribution of various annuity contract forms (including a single life annuity and a joint and survivor annuity). The annuity payments under the annuity contract forms begin as of the first day of the month following P's severance from employment (or as of the first day of any subsequent month, subject to the requirements of section 401(a)(9)). P has not previously elected payment of benefits in the form of a life annuity, and Plan M is not a direct or indirect transferee of any plan that is a defined benefit plan or a defined contribution plan that is subject to section 412. Distributions on the death of a participant are made in accordance with plan provisions that comply with section 401(a)(11)(B)(iii)(I). On September 2, 2004, Plan M is amended so that, effective for payments that begin on or after November 1, 2004, P is no longer entitled to any distribution in the form of the distribution of an annuity contract. However, after the amendment is effective, P is entitled to receive a single-sum cash distribution of P's vested account balance under Plan M payable as of the first day of the month following P's severance from employment (or as of the first day of any subsequent month, subject to the requirements of section 401(a)(9)). |
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(ii) |
Plan M does not violate the requirements of section 411(d)(6) (or section 401(a)(11)) merely because, as of November 1, 2004, the plan amendment has eliminated P's option to receive a distribution in any of the various annuity contract forms previously available. |
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(4) |
Effective date. This paragraph (e) is applicable on January 25, 2005. |
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