SECTION 1. PURPOSE

The purpose of this revenue procedure is to extend indefinitely a closing agreement program to settle certain tax liabilities that arise out of transactions between an employer and an otherwise qualified defined contribution plan. The authority to enter closing agreements pursuant to this revenue procedure applies only in the instance of transactions in which the employer makes conditional payments to an otherwise qualified defined contribution plan on account of plan assets that are invested in a guaranteed contract issued by a life insurance company that has been

placed in state insurer delinquency proceedings.

This revenue procedure also restates the clarification that for purposes of Rev. Proc. 92–10, 1992–1 C.B. 661, such conditional payments constitute assets that are available for purposes of making required minimum distributions.