This PDF is the current document as it appeared on Public Inspection on 07/03/2014 at 08:45 am.
Internal Revenue Service (IRS), Treasury.
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.
This correction is effective on July 7, 2014, and is applicable May 12, 2014.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Michael P. Brewer or Lauson C. Green at (202) 317-6700 (not a toll-free number).End Further Info End Preamble Start Supplemental Information
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.Start List of Subjects
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:Start Part
PART 1—INCOME TAXESEnd Part Start Amendment Part
Paragraph 1. The authority citation for part 1 continues to read in part as follows:End Amendment Part Start Amendment Part
Par. 2. In § 1.402(a)-1, the ninth sentence of paragraph (e)(6) Example 2. (i) is revised to read as follows:End Amendment Part
(e) * * *
(6) * * *
(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]
BILLING CODE 4830-01-P