n-07-94.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

Part III – Administrative, Procedural and Miscellaneous

2007 Cumulative List of Changes in Plan Qualification Requirements

Notice 2007-94

I. PURPOSE

This notice contains the 2007 Cumulative List of Changes in Plan Qualification
Requirements (2007 Cumulative List) described in section 4 of Rev. Proc. 2007-
44, 2007-28 I.R.B. 54. The 2007 Cumulative List is to be used primarily by plan
sponsors of individually designed plans that are in Cycle C. An individually
designed plan is in Cycle C if it is a single employer plan where the last digit of
the employer identification number of the plan sponsor is 3 or 8, or it is a § 414(d)
governmental plan (including a governmental multiemployer plan or
governmental multiple employer plan).

The list of changes in section V of this notice does not extend the deadline by
which a plan must be amended to comply with any statutory, regulatory, or
guidance changes. The general deadline for timely adoption of an interim or
discretionary amendment can be found in section 5.05 of Rev. Proc. 2007-44.

II. BACKGROUND

Rev. Proc. 2007-44 sets forth procedures for issuing opinion, advisory, and
determination letters and describes the five-year remedial amendment cycle for
individually designed plans and the six-year remedial amendment cycle for pre-
approved plans. In addition, section 5.05 of Rev. Proc. 2007-44 provides the
deadline for timely adoption of an interim amendment or discretionary
amendment

Under section 4 of Rev. Proc. 2007-44, the Internal Revenue Service intends to
annually publish a Cumulative List to identify statutory, regulatory and guidance
changes that must be taken into account in submissions by plan sponsors to the
Service for opinion, advisory and determination letters whose remedial
amendment period begins on February

1st following issuance of the Cumulative
List.

In Notice 2007-3, 2007-2 I.R.B. 255, the Service published the 2006 Cumulative
List of Changes in Plan Qualification Requirements (2006 Cumulative List). In
Notice 2005-101, 2005-2 C.B. 1219, the Service published the 2005 Cumulative
List of Changes in Plan Qualification Requirements (2005 Cumulative List). In

2
Notice 2004-84, 2004-2 C.B. 1030, the Service published the 2004 Cumulative
List of Changes in Plan Qualification Requirements (2004 Cumulative List).

III. APPLICATION OF 2007 CUMULATIVE LIST

This notice is being issued for purposes of the determination letter program for
plans submitted for determination letters during the Cycle C submission period.
In Rev. Proc. 2005-66, the Service announced the opening of the initial five-year
remedial amendment cycle. In accordance with Rev. Proc. 2007-44, the Service
will start accepting determination letter applications for Cycle C plans beginning
on February 1, 2008. The 12-month submission period for Cycle C plans will end
January 31, 2009.

The 2007 Cumulative List, set forth in section V of this notice, informs plan
sponsors of issues the Service has specifically identified for review in
determining whether a plan filing in Cycle C has been properly updated.
Specifically, the 2007 Cumulative List reflects law changes under the Economic
Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), Pub. L. 107-16
(with technical corrections made by the Job Creation and Worker Assistance Act
of 2002 (JCWAA), Pub. L. 104-147, the Pension Funding Equity Act of 2004
(PFEA), Pub. L. 108-218, the American Jobs Creation Act of 2004 (AJCA), Pub.
L. 108-357, the Gulf Opportunity Zone Act of 2005 (GOZA), Pub. L. 109-135, and
the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007, Pub. L. 110-28.

The Service will not consider in its review of any determination letter application,
for the submission period that begins February 1, 2008, any:

(1) guidance published after October 1, 2007;

(2) statutes enacted after October 1, 2007;

(3) qualification requirements first effective in 2009 or later; or

(4) statutory provisions that are first effective in 2008, for which there is no
guidance identified in this notice.

The 2007 Cumulative List does not include any items described in (1) through (4)
above. However, in order to be qualified, a plan must comply with all relevant
qualification requirements, not just those on the 2007 Cumulative List.

Terminating plans must include all law changes in effect at the time of
termination. See section 8 of Rev. Proc. 2007-44 regarding plan termination.

IV. SPECIAL RULES FOR THE PENSION PROTECTION ACT OF 2006

3
Under section 1107 of the Pension Protection Act of 2006 (PPA ’06), Pub. L.
109-280, a plan amendment made pursuant to any amendment made by
PPA ’06 generally may be retroactively effective, if, in addition to meeting the
other applicable requirements, the amendment is made on or before the last day
of the first plan year beginning on or after January 1, 2009 (January 1, 2011 in
the case of a governmental plan). Section VI of this notice includes certain
PPA ’06 law changes effective in 2008 or earlier.

Plans submitting in Cycle C can be amended, at the option of plan sponsors, to
include the applicable PPA ’06 provisions listed in section VI of this notice. Cycle
C plans must identify which PPA ’06 provisions the plan has been amended to
include and the plan provision that reflects the PPA ’06 provision when
submitting the determination letter application. However, the Service will not
consider PPA ‘06 in issuing determination letters for Cycle C plans, and such
letters cannot be relied on with respect to any plan provision identified as
reflecting PPA ’06, regardless of whether the plan has been amended to reflect
PPA ’06 provisions.

Terminating plans must include the applicable PPA ’06 provisions that are in
effect at the time of termination.

V. 2007 CUMULATIVE LIST OF CHANGES IN PLAN QUALIFICATION
REQUIREMENTS

The following list consists of statutory provisions and associated guidance which
reflect changes to plan qualification requirements. Miscellaneous guidance is
also provided. The Service has identified below plan qualification requirements
which were not on the 2006 Cumulative List as “(New)”. Thus, the 2007
Cumulative List contains those plan qualification requirements listed in the 2004,
2005, and 2006 Cumulative Lists as well as additional 2007 plan qualification
requirements.

1. 72(p)
: Section 1.72(p)-1 of the Income Tax Regulations relating to plan
loans was published on December 3, 2002 (67 Fed. Reg. 71821).
(2004 C. L.).

2. 401(a)
: Final Regulations under § 401(a) of the Code regarding
permissible normal retirement ages were published May 22, 2007 (72 Fed.
Reg. 28604). (2006 C. L.).
• Notice 2007-69, 2007-35 I.R.B. 468, provides temporary relief, until
the first day of the first plan year that begins after June 30, 2008, for
certain pension plans under which the definition of normal retirement
age may be required to be changed to comply with the regulations.
Accordingly, the final regulations will not be taken into account in the
Service’s review of plans submitted for determination letters during
the Cycle C submission period unless the plan, by its terms, is

4
ineligible for the relief under Notice 2007-69 or the relief ends for the
plan before December 31, 2008. (New).

3. 401(a)(4)
:
• Amendments to § 1.401(a)(4)-8 of the Regulations relating to new
comparability plans were published on June 29, 2001 (66 Fed. Reg.
34535). (2004 C. L.).
• Rev. Rul. 2001-30, 2001-2 C.B. 46. (2004 C. L.).
• Amendments to § 1.401(a)(4)-9 of the Regulations relating to new
comparability plans were published on June 29, 2001 (66 Fed. Reg.
34535). (2005 C. L.).
• Rev. Rul. 2004-21, 2004-1 C.B. 544. (2005 C. L.).

4. 401(a)(9)
:
• Sections 1.401(a)(9)-1 through –9 of the Regulations were published
on April 17, 2002 and June 15, 2004 (67 Fed. Reg. 18988 and 69
Fed. Reg. 33288). (2004 C. L.).

5. 401(a)(17)
: Section 401(a)(17) of the Code was amended by § 611(c) of
EGTRRA to increase the compensation limit to $200,000. (2004 C. L.).
• Notice 2001-56, 2001-2 C.B. 277. (2004 C. L.).

6. 401(a)(31):
• Section 401(a)(31) was amended by § 643(b) of EGTRRA to allow
employees’ after-tax contributions to be rolled over under certain
circumstances. (2004 C. L.).
• Section 401(a)(31)(B) was amended by § 657(a) of EGTRRA (as
amended by § 411(t) of JCWAA) to provide for the automatic rollover
of certain mandatory distributions. The effective date is
March 28, 2005. (2004 C. L.).
• Notice 2005-5, 2005-1 C.B. 337. (2004 C. L.).
• Sections 641, 642 and 643 of EGTRRA (as amended by § 411(q) of
JCWAA) amended the definition of eligible retirement plan in § 402
of the Code to include a § 403(b) annuity contract and eligible
governmental § 457(b) plan. (2004 C. L.).
• Section 636(b) of EGTRRA modified the definition of eligible rollover
distribution to exclude hardship distributions. (2004 C. L.).

7. 401(k) & 401(m)
:
• Section 401(k)(2) and § 401(k)(10) of the Code were amended by
§ 646(a)(1) of EGTRRA to permit distributions of elective deferrals
from a § 401(k) plan upon severance from employment.
(2004 C. L.).
• Notice 2002-4, 2002-1 C.B. 298. (2004 C. L.).
• Section 636(a) of EGTRRA directed the Secretary of the Treasury to
revise the regulations relating to safe harbor hardship distributions of

5
elective deferrals from § 401(k) plans so that the time the employee
is prohibited from making elective and employee contributions is
reduced from one year to six months after a hardship distribution.
(2004 C. L.).
• Notice 2001-56. (2004 C. L.).
• Notice 2002-4. (2004 C. L.).
• Section 401(k)(11) of the Code was amended by § 611(f) of
EGTRRA to increase the maximum amount of qualified salary
reduction contributions that can be made to SIMPLE 401(k) plans.
(2004 C. L.).
• Section 402(g) of the Code was amended by § 611(d) of EGTRRA to
increase the applicable dollar amount. (2004 C. L.).
• Section 401(m)(9) of the Code was amended by § 666 of EGTRRA to
eliminate the multiple use test. (2004 C. L.).
• Final Regulations under § 401(k) and § 401(m) of the Code were
published on December 29, 2004 (69 Fed. Reg. 78144).
(2004 C. L.).
• Announcement 2007-59, 2007-25 I.R.B. 1448, provides that a plan
will not fail to satisfy the requirements of a § 401(k) safe harbor plan
because of a mid-year change to implement a designated Roth
contribution program. (New).

8. 402A
: Section 402A of the Code was added by § 617 of EGTRRA to offer
optional treatment of elective deferrals as designated Roth contributions to
defined contribution plans, effective for taxable years beginning after
December 31, 2005. (2004 C. L.).
• Final Regulations under § 401(k) and § 401(m) of the Code relating
to designated Roth contributions were published on
January 3, 2006 (71 Fed. Reg. 6). (2005 C. L.).
• Notice 2006-44, 2006-20 I.R.B. 889, provides a sample
amendment for Roth § 401(k) plans. (2006 C. L.).
• Final Regulations under § 402A of the Code were published on
April 30, 2007 (72 Fed. Reg. 21103).
1
(2006 C. L.).

9. 404
:
• Section 404(k)(2)(A) of the Code was amended by § 662(a) of
EGTRRA (as amended by § 411(w) of JCWAA) to allow ESOP
dividends to be reinvested without the loss of dividend deductions.
(2005 C. L.).
• Notice 2002-2, 2002-1 C.B. 285, provides guidance with
respect to the changes made to § 404(k) of the Code and on
the effective date of § 409(p) of the Code. (2005 C. L.).

1
Proposed Regulations under § 402A were published on January 26, 2006 (71 Fed. Reg. 4320).
(2005 C. L.).

6
10. 408(q):
Section 408(q) of the Code was added by § 602 of EGTRRA (as
amended by § 411(i) of JCWAA) to allow for deemed individual retirement
accounts (IRAs) in an eligible retirement plan. (2004 C. L.).
• Section 1.408(q)-1 of the Regulations was published on
July 22, 2004 (69 Fed. Reg. 43735). (2004 C. L.).

11. 409
: Section 409(p) of the Code was added § 656 of EGTRRA relating to
restrictions on the allocation of employer securities in an ESOP
maintained by an S corporation. (2005 C. L.).
• Section 1.409(p)-1T of the Regulations was published on
July 21, 2003 (68 Fed. Reg. 42970). (2005 C. L.).
• Section 1.409(p)-1T of the Regulations was published on
December 17, 2004 (69 Fed. Reg. 75455). (2005 C. L.).
• 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). (2005 C. L.).
• 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.
(2005 C. L.).
• 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. (2005 C. L.).
• Final Regulations were published on December 20, 2006 (71 Fed.
Reg. 76134) that provide guidance concerning requirements under
§ 409(p) for ESOPs holding stock of S corporations. (2006 C. L.).

12. 410(b)
: Final Regulations were published on July 21, 2006 (71 Fed. Reg.
41357) permitting some employees of tax-exempt organizations to be
excluded when determining whether a § 401(k) plan meets the § 410(b)
minimum coverage requirements. (2006 C. L.).

13. 411(a)
:
• Section 411(a) of the Code was amended by § 633 of EGTRRA (as
amended by § 411(o) of JCWAA) to provide for faster vesting of
matching contributions. (2004 C. L.).
• Rev. Rul. 2003-65, 2003-1 C.B. 1035. (2005 C. L.).
• Amendments to § 1.411(d)-3 of the Final Regulations were published
on August 9, 2006 (71 Fed. Reg. 45379) with respect to the
interaction between the anti-cutback rules of § 411(d)(6) and the
nonforfeitability requirements of § 411(a). (2006 C. L.).

14. 411(a)(11)
: Section 411(a)(11)(D) of the Code was added by § 648(a) of
EGTRRA (as amended by § 411(r) of JCWAA) to allow amounts

7
attributable to rollover contributions to be disregarded in determining the
value of an account balance for involuntary distributions. (2004 C. L.).

15. 411(d)(3)
:
• Rev. Rul. 2007-43, 2007-28 I.R.B. 45, provides guidance regarding
the partial termination of a defined contribution plan. (New).

16. 411(d)(6)
:
• Central Laborers’ Pension Fund v. Heinz, 124 S.Ct. 2230 (2004).
(2005 C. L.).
• Rev. Proc. 2005-23, 2005-1 C.B. 991, as modified by Rev.
Proc. 2005-76, 2005-2 C.B. 1139. (2005 C. L.).
• Amendments to § 1.411(d)-3 of the Final Regulations were
published on August 9, 2006 (71 Fed. Reg. 45379) with
respect to the interaction between the anti-cutback rules of
§ 411(d)(6) and the nonforfeitability requirements of
§ 411(a). (2006 C. L.).
• Section 645(b)(3) of EGTRRA directed the Secretary of the
Treasury to issue regulations under § 411(d)(6)(B). (2005 C. L.).
• Section 1.411(d)-3 of the Regulations was published on
August 12, 2005 (70 Fed. Reg. 47109). (2005 C. L.).
• Amendments to § 1.411(d)-3 of the Final Regulations were
published on August 9, 2006 (71 Fed. Reg. 45379) with
respect to a utilization test. (2006 C. L.).
• Section 411(d)(6)(D) and § 411(d)(6)(E) of the Code were added by
§ 645 of EGTRRA to permit the elimination of certain optional forms
of benefit under certain conditions. (2005 C. L.).
• Section 1.411(d)-4, Q&A-2(e) of the Regulations was
published on January 25, 2005 (70 Fed. Reg. 3475) to
implement § 411(d)(6)(E). (2005 C. L.).

17. 412
:
• Rev. Rul. 2004-20, 2004-1 C.B. 546, 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. (2005 C. L.).
• Notice 2004-59, 2004-2 C.B. 447, provides guidance with respect to
restrictions placed on plan amendments following an employer’s
election of an alternative deficit reduction contribution. (2005 C. L.).

18. 414(v)
: Section 414(v) of the Code was added by § 631 of EGTRRA (as
amended by § 411(o) of JCWAA) to allow for catch-up contributions for
individuals age 50 or older. (2004 C. L.).
• Regulations under § 414(v) were published on July 8, 2003 (68 Fed.
Reg. 40510). (2004 C. L.).

8
• Notice 2002-4. (2004 C. L.).

19. 415
:
• 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. (2005 C. L.).
• Rev. Rul. 2001-51, 2001-2 C.B. 427. (2004 C. L.).
• Section 415(b)(2)(E)(ii) of the Code was amended by § 101(b)(4) of
PFEA to fix the percentage at 5.5%. (2005 C. L.).
• Notice 2004-78, 2004-2 C.B. 879, provides the actuarial
assumptions that must be used for distributions with annuity
starting dates occurring during the plans years beginning in
2004 and 2005. (2005 C. L.).
• Section 415(c) of the Code was amended by §§ 611(b) and 632 of
EGTRRA (as amended by § 411(p) of JCWAA) to increase the
maximum annual additions permitted to the lesser of $40,000 or
100% of compensation. (2004 C. L.).
• Rev. Rul. 2001-51, 2001-2 C.B. 427. (2004 C. L.).
• Rev. Rul. 2002-27, 2002-1 C.B. 925, provided that “compensation”
within the meaning of § 415(c) could in certain situations include
“deemed § 125 compensation”. (2004 C. L.).
• Final Regulations under § 415 with respect to pre-PPA ’06 law were
published April 5, 2007 (72 Fed. Reg. 16878).
2
(2006 C. L.).
• See section VI of this notice for PPA ’06 provisions related to
§ 415 that are reflected in the § 415 Final Regulations. (2006
C. L.).

20. 416: Section 416 of the Code was amended by § 613 of EGTRRA (as
amended by § 411(k) of JCWAA) to make several changes to the top-
heavy rules. (2004 C. L.).
• Section 416(g)(4)(H) of the Code was added by § 613(d) of EGTRRA
to provide certain safe harbor § 401(k) plans and § 401(m) plans an
exemption from the top-heavy rules. (2004 C. L.).
• Rev. Rul. 2004-13, 2004-1 C.B. 485. (2004 C. L.).
• Section 416(c)(1)(C) of the Code was amended by § 613(e) of
EGTRRA (as amended by § 411(k)(1) of JCWAA) to provide when a
frozen defined benefit plan is exempt from the minimum benefit
requirements. (2005 C. L.).

21. 417
:

2
Section 1.415(c)-2(e) of the Proposed Regulations under § 415 was published on May 31, 2005
(70 Fed. Reg. 31214). (2004 C. L.).

9
• Section 1.417(e)-1 of the Regulations was published on
July 16, 2003 (68 Fed. Reg. 41906) relating to retroactive annuity
starting date. (2005 C. L.).
• Final Regulations under § 417(a)(3) were published on
March 24, 2006 (71 Fed. Reg. 14798) regarding the disclosure of the
relative value of optional forms of benefit. (2006 C. L.).

22. 420(c)(3)(A)
: Section 6613 of the U.S. Troop Readiness, Veterans' Care,
Katrina Recovery, and Iraq Accountability Appropriations Act, 2007,
amends § 420(c)(3)(A) regarding minimum cost requirements for transfers
of excess pension assets to retiree health accounts. (New).

23. 4975
:
• Section 4975 of the Code was amended by § 612 of EGTRRA to
allow plan loans for Subchapter S shareholder-employees.
(2004 C. L.).
• Section 4975(f) of the Code was amended by § 240 of AJCA to allow
an S corporation distribution on allocated shares to pay off an exempt
loan as long as equal amounts are allocated to participant accounts.
(2005 C. L.).

24. Hurricane Relief
:
• Katrina Emergency Tax Relief Act of 2005, Pub. L. 109-73.
(2005 C. L.).
• Notice 2005-92, 2005-2 C.B. 1165. (2005 C. L.).
• Announcement 2005-70, 2005-2 C.B. 682. (2005 C. L.).
• Gulf Opportunity Zone Act of 2005, Pub. L. 109-135, added § 1400M
and § 1400Q to the Code to provide certain tax benefits to those
areas affected by Hurricanes Katrina, Wilma, and Rita. (2006 C. L.).

25. Miscellaneous:
• Rev. Rul. 2001-62, 2001-2 C.B. 632, provides guidance with respect
to the mortality table under § 415(b)(2)(E)(v) of the Code and the
applicable mortality table under § 417(e)(3)(A)(ii)(I) of the Code.
(2005 C. L.).
• Rev. Rul. 2002-42, 2002-1 C.B. 76, provides guidance with respect to
a situation where a money purchase pension plan is merged or
converted into a profit sharing plan. (2004 C. L.).
• Rev. Proc. 2002-21, 2002-1 C.B. 911, provides guidance with respect
to defined contribution retirement plans maintained by professional
employer organizations. (2004 C. L.).
• Rev. Proc. 2003-86, 2003-2 C.B. 1211, amplifies Rev. Proc. 2002-21
relating to relief provided for certain defined contribution plans
maintained by professional employer organizations. (2004 C. L.).
• Rev. Rul. 2003-11, 2003-1 C.B. 285, provides guidance with respect
to satisfying the nondiscrimination rules under § 401(a)(4) of the

10
Code and the minimum coverage requirements under § 410(b) of the
Code when applying the increased compensation limit to former
employees. (2005 C. L.).
• Rev. Rul. 2004-10, 2004-1 C.B. 484, provides guidance with respect
to charging administrative expenses to former and current
employees. (2004 C. L.).
• Rev. Rul. 2004-12, 2004-1 C.B. 478, provides guidance with respect
to the distribution restrictions applicable to rollover contributions.
(2004 C. L.).
• Rev. Rul. 2005-55, 2005-2 C.B. 284, provides guidance with respect
to medical reimbursement accounts under a profit sharing plan.
(2005 C. L.).
• Section 1.401(a)-21 of the Final Regulations were published on
October 20, 2006 (71 Fed. Reg. 61877) setting forth standards for
the use of an electronic medium to applicable notices to recipients or
to make participant elections. (2006 C. L.).

The following guidance contains sample or model amendments: Notice 2001-57,
2001-1 C.B. 279 (miscellaneous EGTRRA amendments); Rev. Rul. 2001-62,
2001-2 C.B. 632 (applicable mortality table); Rev. Proc. 2002-29, 2002-2 C.B.
1176 (required minimum distribution amendments); Rev. Proc. 2003-13, 2003-1
C.B. 317 (required language for deemed IRAs); Notice 2005-5 (automatic
rollover); and Notice 2006-44, 2006-20 I.R.B. 889 (Roth section 401(k) plans).

VI. PENSION PROTECTION ACT OF 2006 PROVISIONS
As provided in section IV of this notice, plans submitting in Cycle C may be
amended for PPA ’06, but the Service will not consider PPA ’06 in issuing
determination letters. The following list includes PPA ’06 provisions effective in
2008 or earlier and guidance relating to those PPA ’06 provisions (other than
proposed guidance and guidance issued after October 1, 2007):
1. 401(a)(35)
: PPA ’06 § 901(a)(1) added § 401(a)(35) requiring that defined
contribution plans provide employees with the freedom to divest publicly
traded securities. (2006 C. L.).
• Notice 2006-107, 2006-51 I.R.B. 1114. (2006 C. L.).

2. 401(a)(36)
: PPA ’06 § 905(b) added § 401(a)(36) regarding distributions
to a participant who has attained age 62 and who has not separated from
employment at the time of the distribution. (New).

3. 401(k)
: PPA ’06 § 826 modified the rules relating to distributions from a
§ 401(k) plan on account of a participant’s hardship to permit the plan to
treat a participant’s beneficiary under the plan the same as the
participant’s spouse or dependent. (2006 C. L.).

11
• Notice 2007-7, 2007-5 I.R.B. 395, provides guidance regarding
PPA ’06 § 826. (2006 C. L.).
• Announcement 2007-59, 2007 I.R.B. 1448, provides that a plan will
not fail to satisfy the requirements of a § 401(k) safe harbor plan
because of a mid-year change to implement the PPA ’06 § 826
hardship withdrawals. (New).

4. 401(k)(2)(B)(i)(V)
: PPA ’06 § 827 permits reservists called to active duty
after September 11, 2001 and before 2008 to take in-service distributions
from a § 401(k) plan. (2006 C. L.).

5. 401(k)(8)(A)(i)
: PPA ’06 § 902(e)(3) eliminates the gap period income rule
for excess contributions. (New).

6. 401(k)(13)
: PPA ’06 § 902 added § 401(k)(13) with respect to automatic
contribution arrangements. (New).

7. 401(m)(6)(A): PPA ’06 § 902(e)(3) eliminates the gap period income rule
for excess aggregate contributions. (New).

8. 401(m)(12): PPA ’06 § 902 added § 401(m)(12) with respect to automatic
contribution arrangements. (New).

9. 402(c)(2)(A)
: PPA ’06 § 822(a) amended § 402(c)(2)(A) to permit
nontaxable distributions from a qualified plan to be directly rolled over tax-
free to either another qualified plan or a § 403(b) plan if the separate
accounting requirements are met. (2006 C. L.).

10. 402(c)(11)
: PPA ’06 § 829(a)(1) added § 402(c)(11) to allow nonspouse
beneficiaries to directly roll over distributions from a qualified plan to an
individual retirement plan. (2006 C. L.).
• Notice 2007-7, 2007-5 I.R.B. 395, provides guidance regarding
§ 402(c)(11). (2006 C. L.).

11. 402(f)
: PPA ’06 § 1102(a) provides that notice required to be provided
under § 402(f) may be provided as much as 180 days before the annuity
starting date. (2006 C.L.).
• Notice 2007-7, 2007-5 I.R.B. 395, provides guidance regarding
PPA ’06 § 1102. (2006 C. L.).

12. 408A(e)
: PPA § 824 added § 408A(e) which permits rollovers to Roth
IRAs from qualified plans, § 403(b) plans, and § 457 plans. (New).

13. 411
: PPA ’06 § 701 provides rules for cash balance plans and other
hybrid defined benefit plans. (2006 C. L.).

12
• Notice 2007-6, 2007-3 I.R.B. 272, provides guidance regarding cash
balance plans and other hybrid defined benefit plans. (2006 C. L.).

14. 411(a)
: Section 411(a) of the Code was amended by § 904 of PPA ’06 to
provide for faster vesting of employer nonelective contributions. (2006
C. L.).
• Notice 2007-7, 2007-5 I.R.B. 395, provides guidance regarding
§ 411(a), as amended by § 904 of PPA ’06. (2006 C. L.).

15. 411(a)(11)
: PPA ’06 § 1102(a) provides that notice required to be
provided under § 411(a)(11) may be provided as much as 180 days before
the annuity starting date. Section 1102(b) of PPA ’06 provides that the
notice under § 411(a)(11) also include a description of the consequences
of failing to defer receipt of a distribution. (2006 C. L.).
• Notice 2007-7, 2007-5 I.R.B. 395, provides guidance regarding
PPA ’06 § 1102. (2006 C. L.).

16. 414(d)
: PPA ’06 § 906(a)(1) added language to the definition of
government plan in § 414(d) with respect to Indian tribal governments.
(New).
• Notice 2006-89, 2006-43 I.R.B. 772, provides transition relief for
plans subject to PPA § 906. (New).
• Notice 2007-67, 2007-35 I.R.B. 467, extends the transition relief
provided in Notice 2006-89. (New).

17. 414(f)(6)
: PPA ’06 § 1106(b) added § 414(f)(6) with respect to a
multiemployer status election. Section 6611(a)(2) and (b)(2) of the U.S.
Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007 amends § 414(f)(6). (New).

18. 414(w)
: PPA ’06 § 902(d)(1) added § 414(w) with respect to automatic
contribution arrangements. (New).

19. 415(b)(2)(E)(ii): Section 415(b)(2)(E)(ii) of the Code was amended by
§ 303 of PPA ‘06 regarding the interest rate assumption for applying
benefit limitations to lump sum distributions. (2006 C. L.).
• Final Regulations under § 415 were published April 5, 2007 (72 Fed.
Reg. 16878), which provide guidance regarding § 415(b)(2)(E)(ii), as
amended by PPA ’06. (2006 C. L.).

20. 415(b)(11)
: PPA ’06 § 867(a) removed the 100% of compensation
limitation for a church plan participant if the participant has never been a
highly compensated employee of the church. (2006 C. L.).
• Final Regulations under § 415 were published April 5, 2007 (72 Fed.
Reg. 16878), which provide guidance regarding § 415(b)(11), as
added by PPA ’06. (2006 C. L.).

13

21. 415(n)
: PPA ’06 § 821 retroactively clarified the rules in § 415(n) relating
to the purchase of permissive service credit under defined benefit
governmental plans. (New).

22. 417
: PPA ’06 § 1102(a) provides that notice required to be provided
under § 417 may be provided as much as 180 days before the annuity
starting date. (2006 C.L.).
• Notice 2007-7, 2007-5 I.R.B. 395, provides guidance regarding
PPA ’06 § 1102. (2006 C. L.).

23. 417(e)(3
): PPA ’06 § 302(b) amended the applicable interest rate and
mortality table to be used for determining the present value of lump sum
distributions. (New).

24. 417(g)
: PPA ’06 § 1004(a)(2) added § 417(g), the qualified optional
survivor annuity benefit. (New).

25. 420(e)(2)
: PPA ’06 § 114(d)(1) modified the definition of the term “excess
pension assets.” Section 6612(b) of the U.S. Troop Readiness, Veterans'
Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007
amends § 420(e)(2)(B). (New).

26. 432(c)
: PPA ’06 § 212(a) added § 432(c) which requires that a funding
improvement plan be adopted for multiemployer plans in endangered
status. (New).

27. 432(e): PPA ’06 § 212(a) added § 432(e) which requires that a
rehabilitation plan be adopted for multiemployer plans in critical status.
(New).

28. 436
: PPA ’06 § 113(a)(1)(B) added § 436 with respect to funding-based
limits on benefits and benefit accruals under defined benefit single
employer plans. (New).

Drafting Information

The principal author of this notice is Angelique Carrington of the Employee Plans,
Tax Exempt and Government Entities Division. For further information regarding
this notice, please contact the Employee Plans taxpayer assistance answering
service at 1-877-829-5500 (a toll free number) or e-mail Ms. Carrington at
RetirementPlanQuestions@irs.gov
.