n-10-90.pdf

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Part III – Administrative, Procedural and Miscellaneous

2010 Cumulative List of Changes in Plan Qualification Requirements

Notice 2010-90

I. PURPOSE

This notice contains the 2010 Cumulative List of Changes in Plan Qualification
Requirements (2010 Cumulative List) described in section 4 of Rev. Proc. 2007-
44, 2007-2 C.B. 54. The 2010 Cumulative List is to be used by plan sponsors
and practitioners submitting determination, opinion, or advisory letter applications
for plans during the period beginning February 1, 2011 and ending
January 31, 2012. These plans will primarily be (1) single employer individually
designed defined contribution plans, including employee stock ownership plans
(ESOPs), and single employer individually designed defined benefit plans that
are in Cycle A and (2) defined contribution pre-approved plans (that is, defined
contribution plans that are master and prototype (M&P) or volume submitter (VS)
plans) for the second submission under the remedial amendment cycle under
Rev. Proc. 2007-44. Generally, an individually designed plan is in Cycle A if the
last digit of the employer identification number of the plan sponsor is 1 or 6.

The list of changes in section IV 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, advis
ory, 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 announces
its intention 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
submission period begins on February

1st following issuance of the Cumulative
List.

2

In Notice 2009-98, 2009-2 C.B. 974, the Service published the 2009 Cumulative
List of Changes in Plan Qualification Requirements (2009 Cumulative List).
1

III. APPLICATION OF 2010 CUMULATIVE LIST

This notice is being issued in conjunction with the determination letter program
for individually designed plans eligible for Cycle A and the opinion and advisory
letter programs for M&P and VS defined contribution pre-approved plans. In
accordance with Rev. Proc. 2007-44, the Service will start accepting
determination letter applications for Cycle A individually designed plans
beginning on February 1, 2011. The 12-month submission period for Cycle A
plans will end January 31, 2012. In addition, the Service will start accepting
opinion and advisory letter applications for defined contribution pre-approved
plans beginning on February 1, 2011. The 12-month submission period for non-
mass submitter sponsors and practitioners, word-for-word identical adopters, and
M&P minor modifier placeholder applications will end January 31, 2012. The 9-
month submission period for mass submitters and national sponsors will end
October 31, 2011, as provided in section 18.02(1) of Rev. Proc. 2007-44.

The 2010 Cumulative List, set forth in section IV of this notice, informs plan
sponsors of issues the Service has specifically identified for review in
determining whether a plan filing in Cycle A has been properly updated.
Specifically, the 2010 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. 107-147), the Pension Funding Equity Act of 2004
(PFEA), Pub. L. 108-218, the Pension Protection Act of 2006 (PPA ’06), Pub. L.
109-280, the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007, Pub. L. 110-28, the Heroes Earnings
Assistance and Relief Tax Act of 2008 (HEART Act), Pub. L. 110-245, the
Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), Pub. L. 110-
458, and the Small Business Jobs Act of 2010 (SBJA), Pub. L. 111-240.

The HEART Act provisions formerly appeared separately from the Cumulative
List of Changes in Plan Qualification Requirements section of the 2008 and 2009
Cumulative Lists. The HEART Act provisions are now included in the Cumulative
List of Changes in Plan Qualification Requirements (which is section IV of this
notice) and are identified as “New.”

Section 201 of WRERA formerly appeared separately from the Cumulative List of
Changes in Plan Qualification Requirements section of the 2009 Cumulative List.
Section 201 is now included in the Cumulative List of Changes in Plan

1
See Notice 2008-108, 2008-2 C.B. 1275; Notice 2007-94, 2007-2 C.B. 1179; Notice 2007-3,
2007-1 C.B. 255; Notice 2005-101, 2005-2 C.B. 1219, for the 2008, 2007, 2006, and 2005
Cumulative Lists, respectively.

3
Qualification Requirements (which is section IV of this notice) and is identified as
“New.”

If a plan, submitted between February 1, 2011 and January 31, 2012, is
amended to reflect section 201 of WRERA, the Service will consider section 201
in issuing the determination letter, opinion, or advisory letter. If a noncalendar
year plan, which does not have to adopt the WRERA section 201 amendment
until after January 31, 2012, is submitted between February 1, 2011 and January
31, 2012 without being amended for section 201, then the Service will consider
section 201, if applicable, during the next Cycle A or 6-year remedial amendment
cycle submission period.

The Service will no longer include hurricane or disaster relief provisions, which
formerly appeared in the Cumulative List of Changes in Plan Qualification
Requirements. Although no longer listed in this notice, hurricane and other
disaster relief provisions continue to apply, if applicable, to individual plans. For
information regarding tax relief provisions for taxpayers affected by disaster relief
situations go to http://www.irs.gov/newsroom/article/0,,id=108362
,00.html.

Except as provided below, the Service will not consider in its review of any
determination, opinion, or advisory letter application, for the submission period
that begins February 1, 2011, any:

(1) guidance issued after October 1, 2010;

(2) statutes enacted after October 1, 2010;

(3) qualification requirements first effective in 2012 or later; or

(4) statutory provisions that are first effective in 2011, for which there is no
guidance identified in this notice.
2

However, in order to be qualified, a plan must comply with all relevant
qualification requirements, not just those on the 2010 Cumulative List.

The 2010 Cumulative List includes the following guidance issued after
October 1, 2010:

• Notice 2010-84, 2010-51 I.R.B. December 20, 2010 (item 14 in section IV
of this notice). The Service will consider Notice 2010-84 in issuing an

2
The Service will also not consider the requirements of § 436 or the Preservation of Access to
Care for Medicare Beneficiaries and Pension Relief Act of 2010, Pub. L. 111-192, in its review of
any determination, opinion, or advisory letter application submitted during the period beginning
February 1, 2011 and ending January 31, 2012. See Notice 2010-77, 2010-51 I.R.B.
December 20, 2010, which extends the deadline for amending single-employer defined benefit
plans to meet the requirements of §§ 401(a)(29) and 436 to the last day of the first plan year that
begins on or after January 1, 2011.

4
opinion, advisory, or determination letter in the case of a plan submitted
between February 1, 2011 and January 31, 2012, if the plan has been
amended to reflect section 2112 of SBJA, regarding in-plan Roth rollovers.

• Final regulations under § 411(a)(13) and § 411(b)(5) (75 Fed. Reg. 64123)
(items 20 and 22 in section IV of this notice). The Service will consider the
final regulations under § 411(a)(13) and § 411(b)(5) in issuing a
determination letter in the case of an applicable defined benefit plan
(within the meaning of § 411(a)(13)(C)) submitted between
February 1, 2011 and January 31, 2012.

• Notice 2010-77, 2010-51 I.R.B. December 20, 2010, extends the deadline
for amending cash balance and other applicable defined benefit plans,
within the meaning of § 411(a)(13)(C), to meet the requirements of
§ 411(a)(13) (other than § 411(a)(13)(A)) and § 411(b)(5) to the last day of
the first plan year that begins on or after January 1, 2011. As provided in
Notice 2010-77, the filing of a determination letter application in the Cycle
A submission period may accelerate that deadline.

The Service will not consider § 414(x) (item 30 in section IV of this notice) in
issuing opinion and advisory letters for pre-approved plans at this time.

With respect to matters addressed by proposed regulations identified in the
footnotes of section IV of this notice, the Service’s review of the plan will be
based on a reasonable interpretation of the statute, existing final regulations, or
other published guidance. For this purpose, compliance with proposed
regulations will be treated as meeting that standard. However, a determination,
opinion, or advisory letter cannot be relied on with respect to whether the plan
complies with the proposed regulations.

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. 2010 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 2009 or earlier Cumulative Lists as “(New).”

All items from the 2004 Cumulative List have been deleted from the 2010
Cumulative List. In addition, items from the 2005 Cumulative List that apply
solely to defined benefit plans or ESOPs have been deleted from the 2010
Cumulative List. Thus, the 2010 Cumulative List contains those plan qualification
requirements listed in the 2005 Cumulative List that are applicable to defined

5
contribution pre-approved plans, the plan qualification requirements listed in the
2006, 2007, 2008, and 2009 Cumulative Lists, as well as additional 2010 plan
qualification requirements. These deletions have been made to enhance the
utility of the cumulative list, by removing items that would have been previously
reviewed in the case of a plan that was submitted during the initial Cycle A
submission period (February 1, 2006 – January 31, 2007). However, if a plan
has not been previously reviewed for items on earlier cumulative lists, it must still
take those items into account. For example, a new plan that was established
after the Cycle A submission period would be reviewed for items on the 2004
Cumulative List. Similarly, defined contribution pre-approved plans have not yet
been reviewed for items on the 2005 Cumulative List and those items have been
retained in this notice in order to facilitate review of those plans.

1. 401(a)
:
• Final Regulations under § 401(a) of the Code regarding permissible
normal retirement ages were published on May 22, 2007 (72 Fed.
Reg. 28604). (2006 C. L.).
• Notice 2007-69, 2007-2 C.B. 468, provides temporary relief for
certain pension plans under which the definition of normal
retirement age may be required to be changed to comply with
the regulations, but only until the first day of the first plan year
that begins after June 30, 2008. (2007 C. L.).
• Notice 2008-98, 2008-2 C.B. 1080, provides that the Service
and Treasury intend to amend the normal retirement age
regulations to change the effective date for governmental
plans to plan years beginning on or after January 1, 2011.
(2009 C. L.).
• Notice 2009-86, 2009-46 I.R.B. 629, provides that the Service
and Treasury intend to amend the normal retirement age
regulations to change the effective date for governmental
plans to plan years beginning on or after January 1, 2013.
(New).
• Rev. Rul. 2008-40, 2008-2 C.B. 166, provides that the transfer of
amounts from a trust under a plan qualified under § 401(a) to a
nonqualified foreign trust is treated as a distribution from the
transferor plan and that transfer of assets and liabilities from a
qualified plan to a plan that satisfies § 1165 of the Puerto Rico
Code is also treated as a distribution from the transferor plan.
(2008 C. L.).
• Rev. Rul. 2008-45, 2008-2 C.B. 403, provides that the exclusive
benefit rule of § 401(a) is violated if the sponsorship of a qualified
retirement plan is transferred from an employer to an unrelated
taxpayer and the transfer is not in connection with a transfer of
business assets or operations from the employer to the unrelated
taxpayer. (2008 C. L.).

6
2. 401(a)(4)
:
• 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.).

3. 401(a)(5)
: Section 401(a)(5)(G) of the Code was amended by PPA ’06
§ 861(a)(1) with respect to governmental plans. (2008 C. L.).

4. 401(a)(9)
:
• PPA § 823 instructs the Secretary of the Treasury to issue
regulations under which, for all years to which § 401(a)(9) applies, a
§ 414(d) governmental plan shall be treated as having complied with
§ 401(a)(9) if it complies with a reasonable good faith interpretation
of § 401(a)(9). (New).
• Final regulations under § 401(a)(9) were published on
September 8, 2009 (74 Fed. Reg. 45993), which permit a
governmental plan to comply with the required minimum
distribution rules of § 401(a)(9) by using a reasonable and good
faith interpretation of the statute. (2009 C. L.).
• Section 201(a) of WRERA added § 401(a)(9)(H) which provides a
suspension of the required minimum distribution rules for 2009
applicable to defined contribution plans. (New).
• Notice 2009-82, 2009-41 I.R.B. 491, provides guidance relating
to the suspension of the required minimum distribution rules for
2009 applicable to defined contribution plans. (New).

5. 401(a)(26)
: Section 401(a)(26)(G) of the Code was amended by PPA ’06
§ 861(a)(1) with respect to governmental plans. (2008 C. L.).

6. 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 employer securities. (2008 C. L.).

• Notice 2006-107, 2006-2 C.B. 1114. (2008 C. L.).
• Notice 2008-7, 2008-1 C.B. 276, extends certain transitional
guidance and transitional relief provided to certain defined
contribution plans holding publicly traded employer securities under
Notice 2006-107. (2008 C. L.).
• WRERA § 109(a) amended the definition of one-participant
retirement plan under § 401(a)(35)(E)(iv). (2009 C. L.).
• Notice 2009-97, 2009-52 I.R.B. 972, extends the deadline to amend
for § 401(a)(35) to the last day of the first plan year that begins on or
after January 1, 2010. (New).
• Final regulations under § 401(a)(35) were published on May 19, 2010
(75 Fed. Reg. 27927). (New).

7

7. 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. (2008 C. L.).

8. 401(a)(37)
: Section 104(a) of the HEART Act added Code § 401(a)(37)
with respect to benefits payable on the death of a plan participant while
performing qualified military service. (New).
• Notice 2010-15, 2010-6 I.R.B. 390, provides guidance regarding
HEART Act § 104(a). (New).

9. 401(k) & 401(m)
3
:
• Announcement 2007-59, 2007-1 C.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. (2007 C. L.).
• 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. (2008 C. L.).
• Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding
PPA ’06 § 826. (2008 C. L.).
• Announcement 2007-59, 2007-1 C.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. (2008 C. L.).
• PPA ’06 § 827 added § 401(k)(2)(B)(i)(V) which permits reservists
called to active duty after September 11, 2001 and before 2008 to
take in-service distributions from a § 401(k) plan. (2008 C. L.).
• Section 107(a) of the HEART Act extends the applicability of the
qualified reservist distribution to individuals ordered or called to active
duty after December 31, 2007. (2009 C. L.).
• Notice 2010-15, 2010-6 I.R.B. 390, provides guidance regarding
HEART Act § 107. (New).
• PPA ’06 § 861(a)(2) amended § 401(k)(3)(G) with respect to
governmental plans. (2008 C. L.).
• PPA ’06 § 902(e)(3) eliminates the gap period income rule for excess
contributions in § 401(k)(8)(A)(i). (2008 C. L.).
• PPA ’06 § 902 added § 401(k)(13) with respect to qualified automatic
contribution arrangements. (2008 C. L.).
• Final regulations under § 401(k) with respect to qualified
automatic contribution arrangements were published on
February 24, 2009 (74 Fed. Reg. 8200). (2009 C. L.).

3
Proposed amendments to the regulations under § 401(k) and § 401(m) were published on
May 18, 2009 (74 Fed. Reg. 23134) and may be relied upon until final regulations are issued.

8
• Rev. Rul. 2009-30, 2009-39 I.R.B. 391, provides information
with respect to automatic contribution increases under
automatic contribution arrangements. (2009 C. L.).
• Notice 2009-65, 2009-39 I.R.B. 413, provides sample
amendments that plan sponsors can use to add automatic
contribution features to their plans. (2009 C. L.).
• PPA ’06 § 902(e)(3) eliminates the gap period income rule for excess
aggregate contributions in § 401(m)(6)(A). (2008 C. L.).
• PPA ’06 § 902 added § 401(m)(12) with respect to qualified
automatic contribution arrangements. (2008 C. L.).
• Final regulations under § 401(m) with respect to qualified
automatic contribution arrangements were published on
February 24, 2009 (74 Fed. Reg. 8200). (2009 C. L.).

10. 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. (2008 C. L.).

11. 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. (2008 C. L.).
• Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding
§ 402(c)(11). (2008 C. L.).
• WRERA § 108(f) requires that plans provide for nonspouse
beneficiary rollovers under § 402(c)(11), effective for plan years
beginning after December 31, 2009. (2009 C. L.).

12. 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.
4
(2008 C. L.).
• Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding
PPA ’06 § 1102. (2008 C. L.).
• Notice 2009-68, 2009-39 I.R.B. 423, provides two safe harbor
explanations that may be provided to recipients of eligible rollover
distributions from an employer to satisfy § 402(f). (2009 C. L.).
• WRERA § 108(f)(2) amended § 402(f)(2)(A) with respect to the
definition of eligible rollover distribution. (2009 C. L.).

13. 402(g)(2): WRERA § 109(b)(3) amended § 402(g)(2)(A)(ii) to eliminate
the distribution of gap period earnings with excess deferrals. (2009 C. L.).

14. 402A
:

4
Proposed regulations under § 402(f) were published on October 9, 2008 (73 Fed. Reg. 59575)
and may be relied upon until final regulations are issued.

9
• 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, 2006-1 C.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). (2006 C. L.).
• SBJA § 2112 added § 402A(c)(4) which permits rollovers from a
plan account other than a designated Roth account to the plan’s
designated Roth account. (New).
• Notice 2010-84, 2010-51 I.R.B. December 20, 2010,
provides guidance regarding § 402A(c)(4). (New).

15. 408A(e)
: PPA ‘06 § 824 added § 408A(e) which permits rollovers to Roth
IRAs from accounts that are not designated Roth accounts that are part of
qualified plans, § 403(b) plans, and § 457 plans. (2008 C. L.).
• Notice 2008-30, 2008-1 C.B. 638, provides guidance regarding
§ 408A(e). (2008 C. L.).

16. 409:
• 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.).

17. 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.).

18. 411(a)
:
• 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.).
• Section 411(a) of the Code was amended by § 904 of PPA ’06 to
provide for faster vesting of employer nonelective contributions.
(2008 C. L.).
• Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding
§ 411(a), as amended by § 904 of PPA ’06. (2008 C. L.).

19. 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 requires that the
notice under § 411(a)(11) also include a description of the

10
consequences of failing to defer receipt of a distribution.
5

(2008 C. L.).
• Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding
PPA ’06 § 1102. (2008 C. L.).

20. 411(a)(13
): PPA ’06 § 701(b)(2) added § 411(a)(13) with respect to
special vesting rules for applicable defined benefit plans, such as cash
balance plans. (2008 C. L.).
• Notice 2007-6, 2007-1 C.B. 272, provides guidance regarding cash
balance plans and other hybrid defined benefit plans. (2008 C. L.).
• WRERA § 107(b)(2) amended § 411(a)(13)(A). (2009 C. L.).
• Notice 2009-97, 2009-52 I.R.B. 972, extends the deadline for
amending cash balance and other applicable defined benefit plans,
within the meaning of § 411(a)(13)(C), to meet the requirements of
§ 411(a)(13) (other than § 411(a)(13)(A)) to the last day of the first
plan year that begins on or after January 1, 2010. (New).
• Final Regulations under § 411(a)(13) were published on
October 19, 2010 (75 Fed. Reg. 64123).
6
(New).
• Notice 2010-77, 2010-51 I.R.B. December 20, 2010, extends the
deadline for amending cash balance and other applicable defined
benefit plans, within the meaning of § 411(a)(13)(C), to meet the
requirements of § 411(a)(13) (other than § 411(a)(13)(A)) to the last
day of the first plan year that begins on or after January 1, 2011.
(New).

21. 411(b)(1)
7
:
• Rev. Rul. 2008-7, 2008-7 I.R.B. 419, addresses (1) the application
of the backloading provisions of § 411(b)(1)(A), (B), and (C) to
defined benefit cash balance plans and (2) the use of a “greater of”
formula in the instance of a conversion of a defined benefit pension
plan to a cash balance plan, including limited § 7805(b) relief.
(2008 C. L.).

22. 411(b)(5)
: PPA ’06 § 701(b)(1) added § 411(b)(5) with respect to
applicable defined benefit plans, such as cash balance plans, and special
rules relating to age. (2008 C. L.).

5
Proposed regulations under § 411(a)(11) were published on October 9, 2008 (73 Fed. Reg.
59575). Until final regulations are issued, a plan will be treated as complying with § 411(a)(11) if
(1) the plan complies with either the proposed regulations or Q&A-32 and Q&A-33 in Notice 2007-
7; or (2) if the plan administrator makes a reasonable attempt to comply with § 411(a)(11).
6
Proposed regulations under § 411(a)(13) were published on October 19, 2010 (75 Fed. Reg.
64197) and may be relied upon until final regulations are issued.
7
Proposed regulations under § 411(b)(1) were published on October 19, 2010 (75 Fed. Reg.
64197) with respect to a variable interest crediting rate that can potentially be negative in any
given year. Proposed regulations under § 411(b)(1) were published on June 18, 2008 (73 Fed.
Reg. 34665) with respect to the application of the accrual rule where plan benefits are determined
on the basis of the greater of two or more separate formulas.

11
• Notice 2007-6, 2007-1 C.B. 272, provides guidance regarding cash
balance plans and other hybrid defined benefit plans. (2008 C. L.).
• WRERA § 107(b)(1) amended § 411(b)(5). (2009 C. L.).
• Notice 2009-97, 2009-52 I.R.B. 972, extends the deadline for
amending cash balance and other applicable defined benefit plans,
within the meaning of § 411(a)(13)(C), to meet the requirements of
§ 411(b)(5) to the last day of the first plan year that begins on or after
January 1, 2010. (New).
• Final Regulations under § 411(b)(5) were published on
October 19, 2010 (75 Fed. Reg. 64123).
8
(New).
• Notice 2010-77, 2010-51 I.R.B. December 20, 2010, extends the
deadline for amending cash balance and other applicable defined
benefit plans, within the meaning of § 411(a)(13)(C), to meet the
requirements of § 411(b)(5) to the last day of the first plan year that
begins on or after January 1, 2011. (New).

23. 411(d)(3)
:
• Rev. Rul. 2007-43, 2007-2 C.B. 45, provides guidance regarding
the partial termination of a defined contribution plan. (2007 C. L.).

24. 411(d)(6)
:
• 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.).

25. 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

8
Proposed regulations under § 411(b)(5) were published on October 19, 2010 (75 Fed. Reg.
64197) and may be relied upon until final regulations are issued.

12
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.).

26. 414(d)
: PPA ’06 § 906(a)(1) added language to the definition of
governmental plan in § 414(d) with respect to Indian tribal governments.
(2008 C. L.).
• Notice 2006-89, 2006-2 C.B. 772, provides transition relief for plans
subject to PPA ‘06 § 906. (2008 C. L.).
• Notice 2007-67, 2007-2 C.B. 467, extends the transition relief
provided in Notice 2006-89. (2008 C. L.).

27. 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). (2008 C. L.).

28. 414(u)
:
• Section 104(b) of the HEART Act amended § 414(u) of the Code by
adding 414(u)(9) regarding how a plan may provide benefit accruals
for a person who dies or becomes disabled while performing qualified
military service. (New).
• Notice 2010-15, 2010-6 I.R.B. 390, provides guidance regarding
HEART Act § 104(b). (New).
• Section 105(b)(1) of the HEART Act added § 414(u)(12) with respect
to the treatment of differential wage payments during the period a
person, while on active duty, is performing service in the uniformed
services. (New).
• Notice 2010-15, 2010-6 I.R.B. 390, provides guidance regarding
HEART Act § 105(b)(1). (New).

29. 414(w)
: PPA ’06 § 902(d)(1) added § 414(w) with respect to eligible
automatic contribution arrangements.

(2008 C. L.).
• WRERA § 109(b)(4), (5), and (6) amended § 414(w)(3), (5), and (6)
respectively. (2009 C. L.).
• Final regulations under § 414(w) with respect to eligible automatic
contribution arrangements were published on February 24, 2009
(74 Fed. Reg. 8200). (2009 C. L.).
• Rev. Rul. 2009-30, 2009-39 I.R.B. 391, provides information with
respect to automatic contribution increases under automatic
contribution arrangements. (2009 C. L.).

13
• Notice 2009-65, 2009-39 I.R.B. 413, provides sample amendments
that plan sponsors can use to add automatic contribution features
to their plans. (2009 C. L.).

30. 414(x)
: PPA ’06 § 903(a) added § 414(x) with respect to special rules for
eligible combined plans that consist of a defined benefit plan and a
qualified cash or deferred arrangement. (New).

31. 415
:
• WRERA § 103(a) changed the deadline to adopt PFEA amendments
from the end of the 2008 plan year to the end of the 2009 plan year.
(2009 C. L.).
• 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. (2008 C. L.).
• PPA ’06 § 832(a) amended § 415(b)(3) to eliminate the active
participant restriction from the “average compensation for high 3
years” definition. (2008 C. L.).
• PPA ‘06 § 906(b)(1)(A) & (B) modified §§ 415(b)(2)(H) and
415(b)(10), respectively, regarding Indian tribal governments. (2008
C. L.).
• PPA ’06 § 867(a) amended § 415(b)(11) to remove the 100% of
compensation limitation for a church plan participant if the participant
has never been a highly compensated employee of the church.
(2008 C. L.).
• Final Regulations under § 415 were published on April 5, 2007 (72
Fed. Reg. 16878). (2006 C. L.).
• WRERA § 103(b)(2)(B)(i) amended § 415(b)(2)(E)(v) to change the
mortality table to the applicable mortality table within the meaning of
§ 417(e)(3)(B). (2009 C. L.).

32. 416
:
• PPA ’06 § 902(c)(1) amended § 416(g)(4)(H)(i) by inserting
§ 401(k)(13) of the Code . (2008 C. L.).
• PPA ’06 § 902(c)(2) amended § 416(g)(4)(H)(ii) by inserting
§ 401(m)(12) of the Code. (2008 C. L.).

33. 417
:
• 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.).

14
• 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.
9
(2008 C. L.).
• Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding
PPA ’06 § 1102. (2008 C. L.).
• PPA ’06 § 302(b) amended the applicable interest rate and mortality
table to be used for determining the present value of lump sum
distributions in § 417(e)(3). (2008 C. L.).
• Rev. Rul. 2007-67, 2007-2 C.B. 1047, addresses the mortality
tables required by § 417(e)(3). (2008 C. L.).
• Notice 2008-30, 2008-1 C.B. 638, provides guidance regarding
PPA ’06 § 302. (2008 C. L.).
• WRERA § 103(b)(2)(A) amended § 417(e)(3)(D)(i) by striking
“clause (ii)” and inserting “subparagraph (C)”. (2009 C. L.).
• PPA ’06 § 1004(a) added the qualified optional survivor annuity
benefit to § 417. (2008 C. L.).
• Notice 2008-30, 2008-1 C.B. 638, provides guidance regarding
PPA ’06 § 1004. (2008 C. L.).

34. 420
:
• 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. (2007 C. L.).
• PPA ’06 § 114(d)(1) modified the definition of the term “excess
pension assets” in § 420(e)(2). Section 6612(b) of the U.S. Troop
Readiness, Veterans' Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007, amends § 420(e)(2)(B).
(2007 C. L.).

35. 432
: PPA ’06 § 212(a) added § 432 which requires that a funding
improvement plan or a rehabilitation plan be adopted for multiemployer
plans in endangered or critical status and provides for certain benefit
reductions.
10
(2008 C. L.).
• WRERA § 204 provides a temporary delay of designation of
multiemployer plans in endangered or critical status. (2009 C. L.).
• Notice 2009-31, 2009-16 I.R.B. 856, as modified by Notice
2009-42, 2009-20 I.R.B. 1011, provides election and notice
procedures for multiemployer plans under WRERA § 204.
(2009 C. L.).

9
Proposed regulations under § 417 were published on October 9, 2008 (73 Fed. Reg. 59575)
and may be relied upon until final regulations are issued.
10
Proposed regulations under § 432 were published on March 18, 2008 (73 Fed. Reg. 14417)
and may be relied upon until final regulations are issued.

15
• Rev. Proc. 2009-43, 2009-40 I.R.B. 460, provides procedures
with respect to the revocation of elections by multiemployer
plans to freeze funded status under WRERA § 204.
(2009 C. L.).
• WRERA § 205 provides a temporary extension of the funding
improvement or rehabilitation periods for multiemployer plans in
endangered or critical status for 2008 or 2009. (2009 C. L.).
• Notice 2009-31, 2009-16 I.R.B. 856, as modified by Notice
2009-42, 2009-20 I.R.B. 1011, provides election and notice
procedures for multiemployer plans under WRERA § 205.
(2009 C. L.).

36. Miscellaneous
:
• 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 Regulations was published on
October 20, 2006 (71 Fed. Reg. 61877) setting forth standards for
the use of an electronic medium to provide applicable notices to
recipients or to make participant elections. (2006 C. L.).
• Notice 2008-21, 2008-1 C.B. 431, provides transitional guidance for
2008 under § 436 for small plans with end-of-year valuation dates.
(2008 C. L.).
• Notice 2008-73, 2008-2 C.B. 717, expands transition relief of Notice
2008-21. (2008 C. L.).
• Rev. Rul. 2009-31, 2009-39 I.R.B. 395, provides guidance with
respect to annual paid time off contributions. (2009 C. L.).
• Rev. Rul. 2009-32, 2009-39 I.R.B. 398, provides guidance with
respect to paid time off contributions at termination of employment.
(2009 C. L.).

The following guidance contains sample or model amendments: Notice 2005-5
(automatic rollover); Notice 2006-44, 2006-1 C.B. 889 (Roth § 401(k) plans);
Notice 2009-65, 2009-39 I.R.B. 413 (automatic contribution features); and Notice
2009-82, 2009-41 I.R.B. 491 (suspension of the minimum distribution
requirement for 2009).

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
.