Revenue Rule 95-29A (replacement)

1995-1 C.B. 85, 1995-2 C.B. 66, 1995-28 I.R.B. 4

LIMITATIONS ON BENEFITS AND CONTRIBUTIONS

Published: July 10, 1995

Section 415. - Limitations on Benefits and Contributions Under Qualified Plans
Limitations on benefits and contributions. Answer 3 of Rev. Rul. 95-29, 1995- 15 I.R.B. 10, pertaining to the limitations on benefits and contributions under section 415 of the Code is corrected.

Rev. Rul. 95-29, 1995-15 I.R.B. 10, consists of a series of questions and answers pertaining to ss 415 and 417 of the Internal Revenue Code as amended by the Retirement Protection Act of 1994. Rev. Rul. 95-29 contains an omission in the answer to Q & A-3 on page 11. The answer to Q & A-3 is corrected to read as follows:

"A-3. The new interest rate under s 415(b)(2)(E)(ii) applies to a benefit payable in the form of a benefit subject to s 417(e)(3). Under s 417(e)(3) and the Income Tax Regulations thereunder, benefits subject to s 417(e)(3) include all forms of benefit except non-decreasing annuity benefits payable for a period not less than the life of the participant or, in the case of a QPSA, the life of the surviving spouse. For this purpose, a non-decreasing annuity includes a QJSA, a QPSA, and an annuity that decreases merely because of the cessation or reduction of Social Security supplements or qualified disability payments (as defined in s 411(a)(9))."

This correction will be made to Rev. Rul. 95-29 when it is published in issue 1995-1 of the Cumulative Bulletin.

Rev. Rul. 95-29A, 1995-1 C.B. 85, 1995-2 C.B. 66, 1995-28 I.R.B. 4