PART 11—TEMPORARY INCOME TAX REGULATIONS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 Authority: Sec. 7805 of the Internal Revenue Code of 1954 (68A Stat. 917; 26 U.S.C. 7805), unless otherwise noted. § 11.401(a)-11 Qualified joint and survivor annuities. (a) In general General rule. i.e., (2) Illustration. Example. The X Corporation Defined Contribution Plan was established in 1960. As in effect on January 1, 1974, the plan provided that, upon his retirement, a participant could elect to receive the balance of his individual account in the form of (1) a lump-sum cash payment, (2) a lump-sum distribution consisting of X Corporation stock, (3) five equal annual cash payments, (4) a life annuity, or (5) a combination of options (1) through (4). The plan also provided that, if a participant did not elect another form of distribution, the balance of his individual account would be distributed to him in the form of a lump-sum cash payment upon his retirement. Assume that section 401(a)(11) and this section first become applicable to the plan as of its plan year beginning January 1, 1976, with respect to persons who were active participants in the plan on such date (see paragraph (h) of this section). Unless the X Corporation Defined Contribution Plan either discontinues the life annuity payment option or is amended to provide that the balance of a participant's individual account will be paid to him in a form having the effect of a qualified joint and survivor annuity unless the participant elects another form of benefit payment, the trust established under the plan will fail to qualify under section 401(a). (b) Definitions. (1) Qualified joint and survivor annuity. (2) Annuity starting date. (3) Earliest retirement age. (c) Election not to take joint and survivor annuity form In general. (2) Information to be provided to the participant. (ii) The plan administrator must furnish to the participant a written explanation in nontechnical language of the terms and conditions of the joint and survivor annuity and the financial effect upon the participant's annuity (in terms of dollars per annuity payment) of making an election under this paragraph. This explanation must be provided to the participant within a reasonable amount of time from the date of the participant's request during the election period. (3) Form of election. (4) Election is revocable. (d) Plans providing for early retirement Period during which qualified joint and survivor annuity not required. (i) The date the employee reaches the earliest retirement age under the plan (as defined in paragraph (b)(3) of this section), or (ii) The first day of the 120th month beginning before the date on which the employee reaches normal retirement age. (2) Period during which qualified joint and survivor annuity required. (ii) If a participant terminates employment and begins to receive retirement benefits after the period described in subparagraph (1) of this paragraph, he and his spouse must receive benefits having the effect of a qualified joint and survivor annuity, unless the participant has made an election under paragraph (c) of this section. (iii) The provisions of this subparagraph may be illustrated by the following example: Example. A plan which provides a benefit in the form of a life annuity also provides that a participant may retire before the normal retirement age of 65 and receive a benefit, if he has completed 30 years of service. A, an employee, became a participant at the age of 18. A retires and begins to receive retirement benefits at the age of 48. Unless A otherwise elects, the plan must provide a qualified joint and survivor annuity to A and his spouse after A reaches age 55 (the later of the earliest retirement age (age 48) or 10 years before normal retirement age (age 55)) or after the date A would have reached age 55, if he had survived. The survivor annuity paid to the spouse must satisfy the requirements of paragraph (b)(1) of this section. The plan may, but is not required to, provide the survivor annuity before age 55 if the participant dies between age 48 and age 55. (3) Election of survivor annuity In general. (B) If a plan provides that a survivor annuity is the only form of benefit payable under the plan, no election need be provided. (ii) Example. Example. A plan which provides a life annuity also provides that a participant may retire before the normal retirement age of 65 and receive a benefit, if he has completed 30 years of service. Under this plan, an employee who became a participant at the age of 18 will be eligible to receive retirement benefits at the age of 48. This plan must allow a participant who continues his employment to elect a survivor annuity, described in subdivision (v) of this subparagraph, to be payable on the death of the participant if death occurs after age 55 (the later of the date the participant reaches the earliest retirement age (age 48) or 10 years before normal retirement age (age 55)) but before the date the participant reaches normal retirement age (age 65). (iii) Information to be provided by plan administrator. (B) During the election period, the plan administrator must furnish to the participant, within a reasonable amount of time from the date of his request, a written explanation in nontechnical language of the terms and conditions of the survivor annuity and the financial effect upon the participant's annuity (in terms of dollars per annuity payment) of an election or of a revocation of an election under this subparagraph. (iv) Payments under the survivor annuity. (v) Form of election. (vi) Election is revocable. (e) Marriage requirements. (2) A plan shall be treated as satisfying the requirements of this section even though it provides that the spouse of the participant is not entitled to receive a survivor annuity (whether or not the election described in paragraph (d)(3) of this section has been made) unless the participant and his spouse have been married to each other throughout the 1-year period ending on the date of such participant's death. (f) Effect of participant's death on an election or revocation of an election under paragraph (c) or (d)(3). (1) The participant dies from accidental causes, (2) A failure to give effect to the election or revocation would deprive the participant's survivor of a survivor annuity, and (3) Such election or revocation is made before such accident occurred. (g) Costs of providing joint and survivor annuity form. (h) Application and effective date. (2) Section 401(a)(11) and this section shall apply if— (i) The participant's annuity starting date falls within a plan year beginning after December 31, 1975, and (ii) The participant was an active participant in the plan on or after the first day of the first plan year beginning after December 31, 1975. For purposes of this paragraph, the term “active participant” means a participant for whom benefits are being accrued under the plan on his behalf, the employer is obligated to contribute to or under the plan on his behalf, or the employer would have been obligated to contribute to or under the plan on his behalf if any contributions were made to or under the plan. (Sec. 401(a)(11) of the Internal Revenue Code of 1954, 88 Stat. 935 (26 U.S.C. 401(a)(11))) [T.D. 7379, 40 FR 45810, Oct. 3, 1975; 40 FR 49326, Oct. 22, 1975] § 11.401(a)-19 Nonforfeitability in case of certain withdrawals. (a) Application of section. (b) Prohibited forfeitures General rule. (2) 50 percent vested participant. (3) Certain forfeitures. [T.D. 7387, 40 FR 51421, Nov. 5, 1975] § 11.401(b)-1 Certain retroactive changes in plan. (a) General rule. (2) This section shall not apply to any disqualifying provision if the remedial amendment period (as determined under paragraphs (c) and (d)(1) of this section determined without regard to paragraph (d)(2) of this section) with respect to such disqualifying provision ends prior to September 2, 1974. (b) Disqualifying provisions. (1) A plan as adopted, (2) A plan amendment, or (3) The Employee Income Security Act of 1974 (Pub. L. 93-406, 88 Stat. 829), which causes such plan to fail to satisfy the requirements of section 401(a), 403(a), or 405(a). (c) Remedial amendment period. (i) In the case of a disqualifying provision in a plan as adopted, the date the plan is put into effect, (ii) In the case of a plan amendment, the date the plan amendment is adopted or put into effect (whichever is earlier), or (iii) In the case of a statutory provision described in paragraph (b)(3) of this section, the effective date of such provision. (2) Unless extended as provided by paragraph (d) of this section, the remedial amendment period ends with the time prescribed by law (including extensions) for filing the return of the employer for the employer's taxable year in which falls— (i) With respect to a disqualifying provision in a plan as adopted, or a plan amendment, the later of the date on which such provision was adopted or put into effect. (ii) With respect to a statutory provision described in paragraph (b)(3) of this section, the effective date of such provision. (d) Extension for determination letters In general. (2) Special rules. (i) The date on which a notice of final determination with respect to a request described in that subparagraph is issued by the Internal Revenue Service, or, where applicable, (ii) The date on which a judgment pursuant to section 7476 (relating to declaratory judgments) by the United States Tax Court in a case or controversy involving such determination becomes final. (3) Overall limitation. (Sec. 401(b), Internal Revenue Code of 1954, 88 Stat. 943 (26 U.S.C. 401(b))) [T.D. 7377, 40 FR 44544, Sept. 29, 1975] § 11.408(a)(2)-1 Trustee of individual retirement accounts. A person may demonstrate to the satisfaction of the Commissioner that the manner in which he will administer the trust will be consistent with the requirements of section 408 only upon the filing of a written application to the Commissioner of Internal Revenue, Attention: E:EP, Internal Revenue Service, Washington, D.C. 20224. Such application must meet the applicable requirements of the regulations under section 401(d)(1) relating to nonbank trustees of pension and profit-sharing trusts benefiting owner-employees. (Sec. 408(a)(2) of the Internal Revenue Code of 1954 (88 Stat. 959, 26 U.S.C. 408(a)(2))) [T.D. 7390, 40 FR 53580, Nov. 19, 1975] § 11.410-1 Election by church to have participation, vesting, funding, etc., provisions apply. (a) In general. (b) Election is irrevocable. (c) Procedure for making election Time of election. (2) By whom election is to be made. (3) Manner of making election. (4) Conditional election. (5) Statement. (Sec. 410(d), Internal Revenue Code, 1954 (88 Stat. 901; 26 U.S.C. 410(d))) [T.D. 7363, 40 FR 27217, June 27, 1975] § 11.410(b)-1 Minimum coverage requirements. (a)-(c) [Reserved] (d) Special rules. (2) Discrimination. (Sec. 410, Internal Revenue Code of 1954 (88 Stat. 898; 26 U.S.C. 410)) [T.D. 7380, 40 FR 45816, Oct. 3, 1975, as amended by T.D. 7508, 42 FR 47197, Sept. 20, 1977] § 11.412(c)-7 Election to treat certain retroactive plan amendments as made on the first day of the plan year. (a) General rule. (1) Is adopted no later than 2 and one-half months after the close of such plan year (or, in the case of a multiemployer plan, no later than 2 years after the close of such plan year), (2) Does not reduce the accrued benefit of any participant determined as of the beginning of such plan year, and (3) Does not reduce the accrued benefit of any participant determined as of the time of adoption of the amendment, or, if it does so reduce such accrued benefit, it is shown that the plan administrator filed a notice with the Secretary of Labor notifying him of the amendment, and— (i) The Secretary of Labor approved the amendment, or (ii) The Secretary of Labor failed to disapprove the amendment within 90 days after the date on which the notice was filed. (b) Time and manner of making election. (2) In the event that an amendment to which paragraph (a) of this section applies is adopted after the filing of the annual return required under section 6058, the plan administrator may make the election under section 412(c)(8) by attaching a statement of election, described in paragraph (b)(3) of this section, to a copy of such annual return, and filing such copy no later than the time allowed for the filing of such returns under section 6058. (In the case of multiemployer plans, such copy may be filed within a 24 month period beginning with the date prescribed for the filing of such returns.) (3) The statement of election filed by or on behalf of the plan administrator shall— (i) State the date of the close of the first plan year to which the amendment applies and the date on which the amendment was adopted; (ii) Contain a statement that the amendment does not reduce the accrued benefit of any participant determined as of the beginning of the plan year preceding the plan year in which the amendment is adopted; and (iii) Contain either— (A) A statement that the amendment does not reduce the accrued benefit of any participant determined as of the time of adoption of such amendment, or (B) A copy of the notice filed with the Secretary of Labor under section 412(c)(8) and a statement that either the Secretary of Labor has approved the amendment or he has failed to act within 90 days after notification of the amendment. [T.D. 7338, 39 FR 44751, Dec. 27, 1974] § 11.412(c)-11 Election with respect to bonds. (a) In general. (b) Manner of making election. (c) Effect of election. (d) Consent to revoke required In general. (2) Manner of obtaining permission for revocation. (Secs. 302(c)(2)(B), 412(c)(2)(B) of the Internal Revenue Code of 1954 (88 Stat. 871, 914)) [T.D. 7335, 39 FR 44009, Dec. 20, 1974] § 11.412(c)-12 Extension of time to make contributions to satisfy requirements of section 412. (a) In general. (b) Six month extension of two and one-half month period. (2) The rules of this section relating to the time a contribution to a plan is deemed made for purposes of the minimum funding standard under section 412 are independent from the rules contained in section 404(a) (6) relating to the time a contribution to a plan is deemed made for purposes of claiming a deduction for such contribution under section 404. (Sec. 412(c)(10), Internal Revenue Code of 1954 (88 Stat. 917; 26 U.S.C. 412(c)(10))) [T.D. 7439, 41 FR 46597, Oct. 22, 1976]