# Prop. Treas. Reg. § 1.401(a)(4)-9: Plan aggregation and restructuring.

Proposed regulation, not in force. REG-164464-02, 67 FR 76123, published 2002-12-11 <https://www.federalregister.gov/documents/2002/12/11/02-31225/reductions-of-accruals-and-allocations-because-of-the-attainment-of-any-age-application-of>. Interprets 26 U.S.C. § 401.

Par. 3. Section 1.401(a)(4)-9 is amended by: 1. Amending paragraph (b)(2)(v) by removing the language “For plan years” and adding in its place “Except as provided in paragraph (b)(2)(vi) of this section, for plan years”. 2. Adding paragraph (b)(2)(vi). The addition reads as follows:

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(b) * * *

(2) * * *

(vi) Special rules for cash balance plans aggregated with defined contribution plans —(A) In general. In the case of a DB/DC plan where the defined benefit plan (or any portion thereof) satisfies the requirements of section 411(b)(1)(H) using the rate of benefit accrual determined pursuant to the rules of § 1.411(b)-2(b)(iii) for eligible cash balance plans, the DB/DC plan is permitted to demonstrate satisfaction of the nondiscrimination in amount requirement of § 1.401(a)(4)-1(b)(2) on the basis of benefits only if—

( 1 ) The plan would satisfy the requirements of paragraph (b)(2)(v) of this section if the additions to the hypothetical account that are included in the rate of benefit accrual under the rules of § 1.411(b)-2(b)(2)(iii)(A) are treated as allocations under a defined contribution plan; or

( 2 ) The plan is described in paragraph (b)(2)(vi)(B) of this section (regarding eligible cash balance plans aggregated only with defined contribution plans).

(B) Special rule for cash balance plans aggregated with defined contribution plans that are not aggregated with other defined benefit plans. A DB/DC plan is described in this paragraph (b)(2)(vi)(B) if the DB/DC plan satisfies the following conditions—

( 1 ) All defined benefit plans that are included in the DB/DC plan satisfy the requirements of section 411(b)(1)(H) using the rate of benefit accrual determined pursuant to the rules of § 1.411(b)-2(b)(iii) for eligible cash balance plans; and

( 2 ) The DB/DC plan would satisfy the requirements of § 1.401(a)(4)-8(b)(1)(i)(B)( 1 ) or ( 2 ) (regarding broadly available allocation rates or certain age-based allocation rates) if the additions to the hypothetical account that are included in the rate of benefit accrual under the rules of § 1.411(b)-2(b)(2)(iii)(A) are treated as allocations under a defined contribution plan.