95-11583. Certain Cash or Deferred Arrangements and Employee and Matching Contributions Under Employee Plans; Correction

[Federal Register Volume 60, Number 91 (Thursday, May 11, 1995)]
[Rules and Regulations]
[Page 25140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11583]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[T.D. 8581]
RIN 1545-AQ87


Certain Cash or Deferred Arrangements and Employee and Matching 
Contributions Under Employee Plans; Correction

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (T.D. 
8581), which were published in the Federal Register for Friday, 
December 23, 1994, (59 FR 66165) relating to certain cash or deferred 
arrangements and employee and matching contributions under employee 
plans.

EFFECTIVE DATE: December 23, 1994.

FOR FURTHER INFORMATION CONTACT: Catherine Livingston Fernandez (202) 
622-4606 (not a toll-free call).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this correction are 
under sections 401(a)(30), 401(k), 401(m), 402(a)(8), 402(g), 
411(d)(6), 415(c), 416, and 4979 of the Internal Revenue Code.

Need for Correction

    As published, T.D. 8581 contains an error which may prove to be 
misleading and is in need of clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendment:

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 1.401(k)-1 (h)(4)(ii) is revised to read as 
follows:


Sec. 1.401(k)-1  Certain cash or deferred arrangements.

* * * * *
    (h) * * *
    (4) * * *
    (ii) * * *
    (A) The plan does not fail to satisfy the requirements of section 
401(a) merely because of the nonqualified cash or deferred arrangement.
    (B) Employer contributions under the nonqualified cash or deferred 
arrangement are considered to satisfy the requirements of section 
401(a)(4).
    (C) Except as provided in paragraphs (a)(7) and (f) of this 
section, elective contributions under the arrangement are treated as 
employer contributions under the Internal Revenue Code of 1986, as if 
the arrangement were a qualified cash or deferred arrangement. See 
Sec. 1.401(k)-1(a)(4)(ii). See Sec. 1.402(a)-1(d) for rules governing 
when elective contributions under the arrangement are includible in an 
employee's gross income.
* * * * *
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 95-11583 Filed 5-10-95; 8:45 am]
BILLING CODE 4830-01-P