Federal Register / Vol. 70, No. 161 / Monday, August 22, 2005 / Rules and Regulations 48871

of this issue of the Federal Register. retirement account described in section from a traditional IRA on or after August Pursuant to section 7805(f) of the Code, 408(a) holds an annuity contract as an 19, 2005. these temporary regulations will be account asset and the traditional IRA is (d) Definitions. The definitions set submitted to the Chief Counsel for converted to a Roth IRA, for purposes of forth in § 1.408A–8 apply for purposes Advocacy of the Small Business determining the amount includible in of this A–14. Administration for comment on its gross income as a distribution under Mark E. Matthews, impact on small business. § 1.408A–4, A–7, the amount that is treated as distributed with respect to the Deputy Commissioner for Services and Drafting Information annuity contract is the fair market value Enforcement. The principal author of these of the annuity contract on the date that Approved: August 9, 2005. temporary regulations is Cathy A. Vohs the annuity contract is distributed or Eric Solomon, of the Office of the Division Counsel/ treated as distributed from the Acting Deputy Assistant Secretary for Tax Associate Chief Counsel (Tax Exempt traditional IRA. Policy. and Government Entities). However, (b) Determination of fair market [FR Doc. 05–16403 Filed 8–19–05; 8:45 am] other personnel from the IRS and value—(1) General rule. For purposes of BILLING CODE 4830–01–P Treasury Department participated in the this A–14, the fair market value of an development of these regulations. individual retirement annuity issued by a company regularly engaged in the DEPARTMENT OF LABOR List of Subjects in 26 CFR Part 1 selling of contracts of that character Income taxes, Reporting and generally is established as follows— Mine Safety and Health Administration recordkeeping requirements. (A) If the conversion occurs soon after the contract was sold and there have Adoption of Amendments to the 30 CFR Parts 5, 15, 18, 19, 20, 22, 23, been no material changes in market 27, 28, 33, 35, and 36 Regulations conditions, the fair market value of the RIN 1219–AB38 I Accordingly, 26 CFR part 1 is amended contract is established through the sale of the particular contract by the as follows: Fees for Testing, Evaluation, and company (i.e., the actual premiums paid Approval of Mining Products; PART 1—INCOME TAXES for such contract); (B) If the conversion occurs after the Correction I Paragraph 1. The authority citation for contract has been in force for some time AGENCY: Mine Safety and Health Part 1 continues to read, in part, as and no further premium payments are to Administration (MSHA), Labor. follows: be made, the fair market value of the ACTION: Direct final rule; correction. Authority: 26 U.S.C. 7805 * * * contract is established through the sale § 1.408A–4T also issued under 26 U.S.C. by the company of comparable SUMMARY: This document corrects a 408A * * * contracts; direct final rule published in the I Par. 2. Section 1.408A–4 is amended (C) If the conversion occurs after the Federal Register of August 9, 2005, by adding, in numerical order, Q–14 and contract has been in force for some time regarding fees for testing, evaluation, A–14, to read as follows: and future premium payments are to be and approval of mining products. made, the fair market value of the DATES: Effective on August 22, 2005. § 1.408A–4 Converting amounts to Roth contract is established through an FOR FURTHER INFORMATION CONTACT: IRAs. approximation that is based on the interpolated terminal reserve at the date Rebecca J. Smith, Acting Director, Office * * * * * of Standards, Regulations, and Q–14. [Reserved]. For further of the conversion, plus the proportionate part of the gross premium Variances, MSHA, 1100 Wilson Blvd., guidance, see § 1.408A–4T, Q–14. Room 2313, Arlington, Virginia 22209– A–14. [Reserved]. For further last paid before the date of the conversion which covers the period 3939, [email protected], (202) 693– guidance, see § 1.408A–4T, A–14. 9440 (telephone), (202) 693–9441 I extending beyond that date. However, if, Par. 3. Section 1.408A–4T is added to (facsimile). read as follows: because of the unusual nature of the contract, this approximation is not SUPPLEMENTARY INFORMATION: In rule FR § 1. 408A–4T Converting amounts to Roth reasonably close to the full value, this Doc. 05–15495 published on August 9, IRAs. method may not be used. Thus, this 2005 (70 FR 46336), make the following * * * * * method may not be used to determine corrections: Q–14. What is the amount that is the fair market value of an annuity 1. On page 46336, in the first column, includable in income as a distribution contract where the reserve does not under ADDRESSES, change the e-mail when a conversion involves an annuity reflect the value of all relevant features address from ‘‘[email protected]’’ to contract? of the contract. ‘‘[email protected]’’. A–14. (a) In general. Notwithstanding (2) Additional guidance. Additional 2. On page 46337, in the third § 1.408–4(e), when part or all of a guidance regarding the fair market value column, in the second full paragraph, in traditional IRA that is an individual of an individual retirement annuity, the second sentence, change the word retirement annuity described in section including formulas to be used for ‘‘revised’’ to ‘‘existing’’. 408(b) is converted to a Roth IRA, for determining fair market value, may be 3. On page 46338, in the first column, purposes of determining the amount issued by the Commissioner in revenue in the first full paragraph, in the sixth includible in gross income as a rulings, notices, or other guidance sentence, change the term ‘‘part 5’’ to distribution under § 1.408A–4, A–7, the published in the Internal Revenue ‘‘part 15’’. amount that is treated as distributed is Bulletin (See § 601.601(d)(2)(ii)(b)). the fair market value of the annuity (c) Effective date. The provisions of § 5.30 [Corrected] contract on the date the annuity contract this A–14 are applicable to any I 4. On page 46342, in the second is converted. Similarly, when a conversion where an annuity contract is column, after the rule text of paragraph traditional IRA that is an individual distributed or treated as distributed (d), remove the five asterisks.

VerDate jul<14>2003 16:02 Aug 19, 2005 Jkt 205001 PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 E:\FR\FM\22AUR1.SGM 22AUR1 48872 Federal Register / Vol. 70, No. 161 / Monday, August 22, 2005 / Rules and Regulations

§ 22.4 [Corrected] docket COTP 05–006 and are available 192. Pursuant to 33 U.S.C. 1232, any I 5. On page 46343, in the first column, for inspection or copying at the violation of the security zone described in the first sentence of the rule text for Waterways Branch of the Marine Safety herein, is punishable by civil penalties § 22.4(a), change the term ‘‘the active Office San Francisco Bay, Coast Guard (not to exceed $32,500 per violation, investigation of’’ to ‘‘an active Island, Alameda, California, 94501, where each day of a continuing investigation’’. between 9 a.m. and 4 p.m., Monday violation is a separate violation), through Friday, except Federal holidays. criminal penalties (imprisonment up to § 23.3 [Corrected] FOR FURTHER INFORMATION CONTACT: 6 years and a maximum fine of I 6. On page 46343, in the second Lieutenant Ian Callander, U.S. Coast $250,000) and in rem liability against column, in the first sentence of the rule Guard Marine Safety Office San the offending vessel. Any person who text for § 23.3(a), change the term ‘‘the Francisco Bay, (510) 437–3401. violates this section using a dangerous weapon, or who engages in conduct that active investigation of’’ to ‘‘an active SUPPLEMENTARY INFORMATION: investigation’’. causes bodily injury or fear of imminent Regulatory Information bodily injury to any officer authorized § 33.3 [Corrected] On January 29, 2004, we published a to enforce this regulation also faces I 7. On page 46343, in the third column, notice of proposed rulemaking (NPRM) imprisonment up to 12 years. Vessels or after the rule texts for § 33.3, remove the entitled ‘‘Security Zone; San Francisco persons violating this section are also five asterisks. Bay, Oakland Estuary, Alameda, CA’’ in subject to the penalties set forth in 50 the Federal Register (69 FR 4267) U.S.C. 192: seizure and forfeiture of the Dated: August 16, 2005. vessel to the United States, a maximum Robert M. Friend, proposing to establish a security zone extending approximately 50 yards criminal fine of $10,000, and Acting Deputy Assistant Secretary. imprisonment up to 10 years. around the Coast Guard Island Pier in The Captain of the Port will enforce [FR Doc. 05–16560 Filed 8–19–05; 8:45 am] the navigable waters of the Oakland BILLING CODE 4510–43–P this security zone and may enlist the aid Estuary in Alameda, California. We and cooperation of any Federal, State, received one letter commenting on the county, municipal, or private agency to proposed rule. No public hearing was DEPARTMENT OF HOMELAND assist in the enforcement of the requested, and none was held. On June regulation. SECURITY 7, 2004, we published a final rule (codified as 33 CFR 165.1190) entitled Background and Purpose Coast Guard ‘‘Security Zone; San Francisco Bay, In its effort to thwart potential Oakland Estuary, Alameda, CA’’ in the 33 CFR Part 165 terrorist activity, the Coast Guard has Federal Register (69 FR 31737) that increased safety and security measures [COTP San Francisco Bay 05–006] established a security zone extending on U.S. ports and waterways. As part of RIN 1625–AA87 approximately 50 yards around the the Diplomatic Security and Coast Guard Island Pier in the navigable Antiterrorism Act of 1986 (Pub. L. 99– Security Zone; San Francisco Bay, waters of the Oakland Estuary in 399), Congress amended section 7 of the Oakland Estuary, Alameda, CA Alameda, California. Ports and Waterways Safety Act Since that time, the Coast Guard (PWSA), 33 U.S.C. 1226, to allow the AGENCY: Coast Guard, DHS. determined that a floating security Coast Guard to take actions, including ACTION: Final rule. barrier should also be installed to the establishment of security and safety provide an added level of security for zones, to prevent or respond to acts of SUMMARY: The Coast Guard is revising the Coast Guard Cutters that moor at the terrorism against individuals, vessels, or the perimeter of the existing security Coast Guard Island Pier. Because the public or commercial structures. The zone that extends approximately 50 navigational channel is less than 50 Coast Guard also has authority to yards into the navigable waters of the yards from the two ends of the Coast establish security zones pursuant to the Oakland Estuary, Alameda, California, Guard Island Pier, and in order to Espionage Act of June 15, 1917, as around the United States Coast Guard provide approximately 50 yards of amended by the Magnuson Act of Island Pier to coincide with the maneuvering space for the cutters along August 9, 1950 (50 U.S.C. 191 et seq.) perimeter of a floating security barrier. the entire length of the pier, the barrier and implementing regulations This action is necessary to provide needed to extend into the navigational promulgated by the President in continued security for the military channel approximately 10 to 20 yards at subparts 6.01 and 6.04 of part 6 of title service members on board vessels each end. Since the previously 33 of the Code of Federal Regulations. moored at the pier and the government published security zone did not extend In this particular rulemaking, the property associated with these valuable into the navigational channel, we Coast Guard is revising the perimeter of national assets. This security zone published another NPRM entitled the existing security zone around the prohibits all persons and vessels from ‘‘Security Zone; San Francisco Bay, Coast Guard Island pier to mirror the entering, transiting through, or Oakland Estuary, Alameda, CA’’ in the perimeter of the floating security barrier. anchoring within a portion of the Federal Register on May 9, 2005 (70 FR The need for the security zone still Oakland Estuary surrounding the Coast 24344) proposing to revise the perimeter exists due to heightened security Guard Island Pier unless authorized by of the existing security zone around the concerns and the catastrophic impact a the Captain of the Port (COTP) or his Coast Guard Island pier to mirror the terrorist attack on a Coast Guard Cutter designated representative. perimeter of the floating security barrier. would have on the crew on board and DATES: This rule is effective starting at We received two comments on the surrounding government property. 12:01 a.m. on September 21, 2005. proposed rule. No public hearing was This security zone is needed for ADDRESSES: Comments and material requested, and none was held. national security reasons to protect received from the public, as well as Vessels or persons violating this Coast Guard Cutters, their crews, the documents indicated in this preamble as section are subject to the penalties set public, transiting vessels, and adjacent being available in the docket are part of forth in 33 U.S.C. 1232 and 50 U.S.C. waterfront facilities from potential

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