The Treasury Department and IRS issued final regulations this week to conform to changes made under section 411(d)(6)(E), as added by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), relating to defined contribution retirement plans that offer lump sum distributions. The regulations are substantially similar to proposed regulations that were issued in 2003.
The regulations are effective immediately.
These final regulations retain the general structure and much of the substance of the proposed regulations, including an example illustrating the provisions. Some changes have been made in connection with a specific recommendation for modification and clarification. The comments received in response to the proposed regulations are generally summarized in a copy of the regulations.