PLR 200003043: Correction to a deferred compensation ruling's Code citation

Plain-English summary

The IRS corrected a Code citation in an earlier ruling about an employer's deferred compensation plan and related trust. The earlier letter's description of the employer cited § 457(e)(1)(A), and this correction says the citation should be § 457(e)(1)(B). The release includes a replacement first page of the earlier ruling, which describes the employer and the plan. It does not include the rest of that ruling or state a new conclusion about the plan's tax treatment.

Ruling snapshot

• Question: Which § 457(e)(1) provision should the earlier ruling have cited for the employer?
• Outcome: Other: the IRS corrected the citation to § 457(e)(1)(B).
• Key authorities: IRC § 457(e)(1)(B).

Full text (IRS public release)

INTERNAL REVENUE SERVICE
Index No.:     83.13-00 457.05-00
              671.02-00 677.00-00
Number: 200003043
Release Date: 1/21/2000




                                                CC:EBEO:BR1 - PLR-115808-99

                                                October 18, 1999.

Employer     =

Plan         =

Trust        =

Trustee      =


       It has been brought to our attention that the cite to the Internal Revenue Code
section on page 1, paragraph 2, line 2, of your ruling letter dated March 1, 1999, was
incorrectly cited as section 457(e)(1)(A). The correct cite is section 457(e)(1)(B).

       Attached is a revised page 1 with the correction to replace the page that was
previously sent to you.

      This ruling is directed only to the Employer and its employees. Section
6110(k)(3) of the Code provides that it may not be used or cited as precedent.

                                         Sincerely yours,

                                         ROBERT D. PATCHELL
                                         Assistant Chief, Branch 1
                                         Office of the Associate
                                          Chief Counsel
                                         (Employee Benefits and
                                           Exempt Organizations)
Enclosure:
 Revised page 1
 Copy for section 6110 purposes


INTERNAL REVENUE SERVICE
Index No.:  83.13-00 457.05-00
           671.02-00 677.00-00




                                               CC:EBEO:BR1 - PLR-120053-98

                                               March 1, 1999

Employer     =


Plan         =


Trust        =


Trustee      =




      This is in reply to your letter dated September 2, 1998, and subsequent
correspondence, on behalf of the above Employer requesting a ruling on the federal tax
consequences of Employer’s deferred compensation plan (the "Plan") and related Trust
under section 457 of the Internal Revenue Code as amended by the Small Business
Job Protection Act of 1996.

       Employer is represented to be an eligible employer within the meaning of section
457(e)(1)(B) of the Code. The Plan, which is offered to a select group of management
or highly compensated employees, is intended to be an eligible deferred compensation
plan to which section 457(a) applies.

       Under the Plan an employee ("Participant") may elect to defer compensation that
would otherwise have been received for services to the Employer until retirement, death
or separation from service with the Employer or until the occurrence of an
unforeseeable emergency. In addition, the Employer may make matching contributions
under the Plan. The election to defer compensation must be made prior to the month
for which the compensation is earned. The Plan provides for a maximum amount that
may be deferred by a Participant in any taxable year and also provides for a catch-up
computation for amounts deferred for one or more of the Participant’s last three taxable