SECTION 8. EMPLOYEE BENEFIT ISSUES—CONTINUED

Statute or Regulation Act Postponed 23. Sec. 409(h)(6) An employer required to repurchase employer securities distributed as part of an installment distribution must pay for the securities not later than 30 days after the exercise of the put option under section 409(h)(4). 24. Sec. 409(o) An ESOP must commence the distribution of a participant’s account balance, if the participant elects, not later than 1 year after the close of the plan year - i) in which the participant separates from service by reason of attaining normal retirement age under the plan, death or disability; or ii) which is the 5 ^th plan year following the plan year in which the participant otherwise separates from service (except if the participant is reemployed before distribution is required to begin). 25. Sec. 457(e)(16)(B) An eligible rollover distribution from a section 457 eligible governmental plan may be rolled over to an eligible retirement plan no later than the 60 ^th day following the day the distributee received the distributed property. 26. Sec. 1042(a)(2) A taxpayer must purchase qualified replacement property (defined in section 1042(c)(4)) within the replacement period, defined in section 1042(c)(3) as the period which begins 3 months before the date of the sale of qualified securities to an ESOP and ends 12 months after the date of such sale. 27. Treas. Reg. § 1.1042–1T, Q&A–3 A taxpayer must notarize any statement of purchase with respect to qualified replacement property required under Treas. Reg. § 1.1042–1T, Q&A–3 no later than 30 days after a purchase of qualified replacement property. 28. Sec. 4972(c)(3) Nondeductible plan contributions must be distributed prior to a certain date to avoid a 10 percent tax. 29. Sec. 4979 and Treas. Reg. A 10 percent tax on the amount of excess contributions and excess aggregate § 54.4979–1 contributions under a plan for a plan year will be imposed unless the excess,

plus income attributable to the excess is distributed (or, if forfeitable, forfeited) no later than 2½-months after the close of the plan year. In the case of an employer maintaining a SARSEP, employees must be notified of the excess by the employer within the 2½-month period to avoid the tax.

2002–46 I.R.B. 859 November 18, 2002