<nobr>May 23, 2007</nobr>

IRS Issues Corrections to Section 415 Regulations

The Internal Revenue Service issued minor corrections to final regulations (TD 9319), regarding Section 415 benefit and contribution limitations for qualified plans. The correcting amendments are effective May 23, 2007. IRS said that as published the final regulations contain errors that may prove to be misleading and are in need of clarification. Sections of clarification include:

o Section 1.415(b)-1, concerning limitations for defined benefit plans, is amended by revising paragraph (c)(5)(i)(A), and the second sentence of paragraph (c)(6), Example 6, paragraph (iv);

o Section 1.415(f)-1, concerning aggregating plans, is amended by revising the last sentence of paragraph (d)(1); and

o Section 1.457-5(d), Example 2, paragraphs (ii) and (iii), concerning individual limitation for combined annual deferrals under multiple eligible plans are amended by revising the third sentence of (ii) and all of (iii).

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Section 415 Corrections

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