PART II. SAMPLE LANGUAGE

FOR INCLUSION IN QDRO

A. SAMPLE LANGUAGE FOR IDENTIFICATION OF PARTICI- PANT AND ALTERNATE PAYEE

The ‘‘Participant’’ is [insert name of Participant] . The Participant’s address is

[insert Participant’s address] . The Participant’s social security number is [in- sert Participant’s social security num- ber] .

The ‘‘Alternate Payee’’ is [insert name of Alternate Payee] . The Alternate Payee’s address is [insert Alter- nate Payee’s address] . The Alternate Payee’s social security number is [insert Alternate Payee’s social security num- ber] . The Alternate Payee is the [de- scribe the Alternate Payee’s relation- ship to Participant] of the Participant.

B. SAMPLE LANGUAGE FOR IDENTIFICATION OF RETIRE- MENT PLAN

This order applies to benefits under the [insert formal name of retirement plan] (‘‘Plan’’).

C. AMOUNT OF BENEFITS TO BE PAID TO ALTERNATE PAYEE

Instruction: The QDRO should clearly specify the amount or percentage of benefits assigned to the Alternate Payee or the manner in which the amount or percentage is to be determined, and the number of payments or period to which the Order applies. There are many different forms in which benefits may be paid from a qualified plan. Because of the diversity of factors that should be considered, and the need to tailor the assignment of benefits under a QDRO to meet the needs of the parties involved, specific sample language re- garding the assignment of benefits has not been provided. See the discussion in Part I for further information.

D. SAMPLE LANGUAGE FOR FORM AND COMMENCEMENT OF PAYMENT TO ALTERNATE PAYEE

Instruction: Drafters using the separate interest approach may use paragraph 1. Drafters using the shared payment ap- proach may use paragraph 2. Drafters using the separate interest approach for a portion of the benefits allocated to the alternate payee and the shared payment approach for the remainder should modify the sample language to specify the benefits to which each paragraph provided below applies.

1. Separate Interest Approach

The Alternate Payee may elect to receive payment from the Plan of the benefits assigned to the Alternate Payee under this Order in any form in which such benefits may be paid under the Plan to the Participant (other than in the form of a joint and survivor annuity with respect to the Alternate Payee and his or her subsequent spouse), but only if the form elected complies with the minimum distribution requirements of § 401(a)(9) of the Internal Revenue Code. Payments to the Alternate Payee pursuant to this Order shall commence on any date elected by the Alternate Payee (and such election shall be made in accordance with the terms of the Plan), but not earlier than the Participant’s earliest retirement age (or such earlier date as allowed under the terms of the Plan), and not later than the earlier of (A) the date the Participant would be required to commence benefits under the terms of the Plan or (B) the latest date permitted by § 401(a)(9) of the Internal Revenue Code. For purposes of this Order, the Participant’s earliest retirement age shall be the earlier of (i) the date on which the participant is entitled to a distribution under the Plan, or (ii) the later of (I) the date the Participant attains age 50, or (II) the earliest date on which the Participant could begin receiving benefits under the plan if the Participant separated from service.

2. Shared Payment Approach

The Alternate Payee shall receive payments from the Plan of the benefits assigned to the Alternate Payee under this Order (including payments attributable to the period in which the issue of whether this Order is a qualified domestic relations order is being determined) commencing as soon as practicable after this Order has been determined to be a qualified domestic relations order or, if later, on the date the Participant commences receiving benefit payments from the Plan. Payment to the Alternate Payee shall cease on the earlier of: [insert date or future event, such as the Alternate Payee’s remarriage], or the date that payments from the Plan with respect to the Participant cease.

E. SAMPLE LANGUAGE FOR TREATMENT OF FORMER SPOUSE AS PARTICIPANT’S SPOUSE

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Instruction: The Alternate Payee may be treated as the Participant’s spouse only if the Alternate Payee is the Participant’s spouse or former spouse, and not if the Alternate Payee is a child or other dependent of the Partici- pant. If the Alternate Payee is the Participant’s spouse or former spouse, drafters may select sample paragraph 1, sample paragraph 2, or sample paragraph 3. Sample paragraph 1 ap- plies if the Alternate Payee is treated as the Participant’s spouse for all of the spousal survivor benefits payable with respect to the Participant’s ben- efits under the Plan. Sample paragraph 2 applies if the Alternate Payee is treated as the Participant’s spouse for a portion of the spousal survivor ben- efits payable with respect to the Par- ticipant’s benefits under the Plan. Sample paragraph 3 applies if the Alternate Payee is not treated as the Participant’s spouse for any of the spousal survivor benefits payable with respect to the Participant’s benefits under the Plan.

1. Alternate Payee Treated as Spouse For All Spousal Survivor Ben- efits

The Alternate Payee shall be treated as the Participant’s spouse under the Plan for purposes of §§ 401(a)(11) and 417 of the Code.

2. Alternate Payee Treated as Spouse For a Portion of the Spousal Survivor Benefits

The Alternate Payee shall be treated as the Participant’s spouse under the Plan for purposes of §§ 401(a)(11) and 417 of the Code with respect to [insert percentage of benefit or a formula, such as a formula describing the ben- efit earned under the plan during marriage] .

3. Alternate Payee not Treated as Spouse

The Alternate Payee shall not be treated as the Participant’s spouse under the Plan.

Rev. Proc. 97–9

Revenue rulings and revenue procedures (hereinafter referred to as ‘‘rulings’’) that have an effect on previous rulings use the following defined terms to de- scribe the effect:

Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below).

Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed.

Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them.

Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling

The following abbreviations in current use and formerly used will appear in material published in the Bulletin.

A —Individual.

Acq. —Acquiescence.

B —Individual.

BE —Beneficiary. BK —Bank. B.T.A. —Board of Tax Appeals.

C. —Individual.

C.B. —Cumulative Bulletin. CFR —Code of Federal Regulations. CI —City.

COOP —Cooperative.

Ct.D. —Court Decision. CY —County. D —Decedent.

DC —Dummy Corporation.

DE —Donee. Del. Order —Delegation Order. DISC —Domestic International Sales Corporation.

DR —Donor.

E —Estate. EE —Employee.

is modified because it corrects a published position. (Compare with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in law or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted.

Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in the new ruling.

Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new ruling does

E.O. —Executive Order.

ER —Employer.

ERISA —Employee Retirement Income Security Act. EX —Executor.

F —Fiduciary.

FC —Foreign Country.

FICA —Federal Insurance Contribution Act.

FISC —Foreign International Sales Company.

FPH —Foreign Personal Holding Company. F.R. —Federal Register. FUTA —Federal Unemployment Tax Act.

FX —Foreign Corporation.

G.C.M. —Chief Counsel’s Memorandum. GE —Grantee. GP —General Partner.

GR —Grantor.

IC —Insurance Company. I.R.B. —Internal Revenue Bulletin. LE —Lessee.

LP —Limited Partner.

LR —Lessor.

M —Minor.

Nonacq. —Nonacquiescence.

O —Organization.

P —Parent Corporation.

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more than restate the substance of a prior ruling, a combination of terms is used. For example, modified and super- seded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case the previously published ruling is first modified and then, as modified, is superseded.

Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study.

PHC —Personal Holding Company.

PO —Possession of the U.S.

PR —Partner.

PRS —Partnership.

PTE —Prohibited Transaction Exemption.

Pub. L. —Public Law.

REIT —Real Estate Investment Trust.

Rev. Proc. —Revenue Procedure. Rev. Rul. —Revenue Ruling.

S —Subsidiary.

S.P.R. —Statements of Procedural Rules. Stat. —Statutes at Large. T —Target Corporation.

T.C. —Tax Court.

T.D. —Treasury Decision. TFE —Transferee. TFR —Transferor.

T.I.R. —Technical Information Release.

TP —Taxpayer. TR —Trust. TT —Trustee.

U.S.C. —United States Code.

X —Corporation.

Y —Corporation.

Z —Corporation.

Numerical Finding List ¹

Bulletin 1997–1

Notices:

97–3, 1997–1 I.R.B. 8 97–7, 1997–1 I.R.B. 8

Revenue Procedures:

97–1, 1997–1 I.R.B. 11 97–2, 1997–1 I.R.B. 64 97–3, 1997–1 I.R.B. 84 97–4, 1997–1 I.R.B. 96 97–5, 1997–1 I.R.B. 132 97–6, 1997–1 I.R.B. 153 97–7, 1997–1 I.R.B. 185 97–8, 1997–1 I.R.B. 187

1A cumulative list of all Revenue Rulings, Revenue Procedures, Treasury Decisions, etc., published in Internal Revenue Bulletins 1996–1 through 1996–26 will be found in Internal Revenue Bulletin 1996–27, dated July 1, 1996.

Finding List of Current Action on Previously Published Items ¹

Bulletin 1997–1

*Denotes entry since last publication

Revenue Procedures:

92–20 Superseded by 97–1, 1997–1 I.R.B. 11

92–90 Superseded by 97–1, 1997–1 I.R.B. 11

96–1 Superseded by 97–1, 1997–1 I.R.B. 11

96–2 Superseded by 97–2, 1997–1 I.R.B. 64

96–3 Superseded by 97–3, 1997–1 I.R.B. 84

96–4 Superseded by 97–4, 1997–1 I.R.B. 96

96–5 Superseded by 97–5, 1997–1 I.R.B. 132

96–6 Superseded by 97–6, 1997–1 I.R.B. 153

96–7 Superseded by 97–7, 1997–1 I.R.B. 185

96–8 Superseded by 97–8, 1997–1 I.R.B. 187

96–12 Superseded by 97–3, 1997–1 I.R.B. 84

96–22 Superseded by 97–3, 1997–1 I.R.B. 84

96–34 Superseded by 97–3, 1997–1 I.R.B. 84

96–39 Superseded by 97–3, 1997–1 I.R.B. 84

1A cumulative finding list for previously published items mentioned in Internal Revenue Bulletins 1996–27 through 1996–53 will be found in Internal Revenue Bulletin 1996–27, dated January 6, 1997.

96–43 Superseded by 97–3, 1997–1 I.R.B. 84

96–56 Superseded by 97–3, 1997–1 I.R.B. 84

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