Part IV. Items of General Interest

Limitations on Benefits and Contributions Under Qualified Plans; Correction

Announcement 2007–58

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains a correction to final regulations (T.D. 9319, 2007–18 I.R.B. 1041) that were published in the Federal Register on Thursday, April 5, 2007 (72 FR 16878) regarding the limitations of section 415, including updates to the regulations for numerous statutory changes since comprehensive final regulations were last published under section 415.

DATES: This correction is effective May 23, 2007.

FOR FURTHER INFORMATION CONTACT: Vernon S. Carter at (202) 622–6060 or Linda S. F. Marshall at (202) 622–6090 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

The correction notice that is the subject of this document is under sections 401(a), 401(a)(4), 401(a)(9), 401(k), 402, 414(s), 415, 416, 457, and 924 of the Internal Revenue Code.

Need for Correction

As published, final regulations (T.D. 9319) contain an error that may prove to be misleading and is in need of clarification.

Correction of Publication

Accordingly, the publication of the final regulations (T.D. 9319), which was the subject of FR Doc. E7–5750, is corrected as follows:

On page 16883, column 2, in the preamble, under the paragraph heading “ C. De- termination of High-3 Average Compen- sation ”, first line from the bottom of the last paragraph of that heading, the language “participant in rehired.” is corrected to read “participant is rehired.”

LaNita Van Dyke, Chief, Publications and

Regulations Branch, Legal Processing Division,

Associate Chief Counsel (Procedure and Administration).

(Filed by the Office of the Federal Register on May 22, 2007, 8:45 a.m., and published in the issue of the Federal Register for May 23, 2007, 72 F.R. 28854)

Guidance for Employers Concerned About Certain Mid-Year Changes to a Section 401(k) Safe Harbor Plan

Announcement 2007–59

The Internal Revenue Service has learned that some employers have concerns about adding provisions during a plan year to their § 401(k) safe harbor plans (described in § 401(k)(12) of the Internal Revenue Code) in order to take advantage of recently effective changes to the rules for § 401(k) plans, such as a qualified Roth contribution program (as defined in § 402A) or hardship withdrawals described in part III of Notice 2007–7, 2007–5 I.R.B. 395, when the pre-year safe harbor notice required by § 401(k)(12)(D) does not include information about the added provisions.

This announcement provides that a plan will not fail to satisfy the requirements to be a § 401(k) safe harbor plan merely because of mid-year changes to implement a qualified Roth contribution program (as defined in § 402A) or the hardship withdrawals described in part III of Notice 2007–7.

Comments are requested as to whether additional guidance is needed with respect to mid-year changes to a § 401(k) safe harbor plan (other than changes described in this announcement or in § 1.401(k)–3(f) of the Income Tax Regulations (relating to mid-year amendments to become a safe harbor plan using nonelective contributions) and § 1.401(k)–3(g) (relating to mid-year amendments to suspend or reduce safe harbor matching contributions)). Written comments should be submitted by September 17, 2007. Send submissions to CC:PA:LPD:DRU (Announcement 2007–59), Room 5203, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, D.C. 20044. Comments may be hand delivered to CC:PA:LPD:DRU (Announcement 2007–59), Room 5203, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Alternatively, comments may be submitted via the Internet at notice.comments@irscounsel.treas.gov (Announcement 2007–59). All comments will be available for public inspection.

Drafting Information

The principal authors of this announcement are Roger Kuehnle of the Employee Plans, Tax Exempt and Government Entities Division and Cathy Vohs and Bill Gibbs of the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). For further information regarding this announcement, please contact the Employee Plans taxpayer assistance answering service between 8:30 a.m. and 4:30 p.m., Eastern time, Monday through Friday at 1–877–829–5500 (a toll-free call) or Mr. Kuehnle at retirementplanquestions@irs.gov . Ms. Vohs may be reached at 202–622–6090 and Mr. Gibbs may be reached at 202–622–6060 (not toll-free calls).

2007–25 I.R.B. 1448 June 18, 2007