# Section 411 (d)(6) protected benefits.
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendment.
**SUMMARY:**
This document contains corrections to final regulations that were published in the *Federal Register* on August 9, 2006 (71 FR 45379) that provide guidance on certain issues under section 411(d)(6) of the Internal Revenue Code (Code), including the interaction between the anti-cutback rules of section 411(d)(6) and the nonforfeitability requirements of section 411(a).
**EFFECTIVE DATE:**
This correction is effective August 9, 2006.
**FOR FURTHER INFORMATION CONTACT:**
Pamela R. Kinard, at (202) 622-6060 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final regulations that are the subject of this correction are under section 411(d)(6) of the Code.
**Need for Correction**
As published, the final regulations (TD 9280), contain errors that may prove to be misleading and are in need of clarification.
**List of Subjects in 26 CFR Part 1**
Income taxes, Reporting and recordkeeping requirements.
**Correction of Publication**
**26 CFR Part 1**
Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:
**PART 1—INCOME TAXES**
*Paragraph 1.* The authority citation for part 1 continues to read in part as follows:
**Authority:**
26 U.S.C 7805 * * *
**26 CFR Part 1**
*Par. 2.* Section 1.411(d)-3 is amended by revising paragraph (a)(3)(i), second sentence and (a)(4) *Example 4* (ii), second sentence to read as follows:
§ 1.411(d)-3
(a) * * *
(3) * * * However, such an amendment does not violate section 411(d)(6) to the extent it applies with respect to benefits that accrue after the applicable amendment date.
(4) * * *
**Example 4 * * ***
(ii) * * * A method of avoiding a section 411 (d)(6) violation with respect to account balances attributable to benefits accrued as of the applicable amendment date and earnings thereon would be for Plan D to provide for the vested percentage of G and each other participant in Plan E to be no less than the greater of the vesting percentages under the two vesting schedules (for example, for G and each other participant in Plan E to be 20% vested upon completion of 3 years of service, 40% vested upon completion of 4 years of service, and fully vested upon completion of 5 years of service) for those account balances and earnings.
Cynthia Grigsby,
Senior Federal Liaison Officer, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).