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Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Rules and Regulations amount, instead of electing a direct rollover of the remaining account balance.
2 The amount of the distribution received by Employee A is $10,000
$3,000 relating to the plan loan offset and $7,000 relating to the cash distribution. Because the amount of the $3,000 plan loan offset amount attributable to the loan is included in determining the amount of the eligible rollover distribution to which withholding applies, withholding in the amount of $2,000 20 percent of $10,000 is required under section 3405c. The $2,000 is required to be withheld from the $7,000 to be distributed to Employee A in cash, so that Employee A actually receives a cash amount of $5,000.
3 The $3,000 plan loan offset amount is a qualified plan loan offset amount within the meaning of paragraph a2iiiB of this section.
Accordingly, Employee A may roll over up to the $3,000 qualified plan loan offset to an eligible retirement plan within the period that ends on the Employee As tax filing due date including extensions for the taxable year in which the offset occurs. In addition, Employee A may roll over up to $7,000 the portion of the distribution that is not related to the offset within the 60-day period provided in section 402c3.
E Example 5. 1 The facts are the same as in paragraph a2vD of this section Example 4, except that the $7,000 distribution to Employee A after the offset consists solely of employer securities within the meaning of section 402e4E.
2 No withholding is required under section 3405c because the distribution consists solely of the $3,000 plan loan offset amount and the $7,000
distribution of employer securities. This is the result because the total amount required to be withheld does not exceed the sum of the cash and the fair market value of other property distributed, excluding plan loan offset amounts and employer securities.
3 Employee A may roll over up to the $7,000 of employer securities to an eligible retirement plan within the 60day period provided in section 402c3. The $3,000 plan loan offset amount is a qualified plan loan offset amount within the meaning of paragraph a2iiiB of this section.
Accordingly, Employee A may roll over up to the $3,000 qualified plan loan offset amount to an eligible retirement plan within the period that ends on Employee As tax filing due date including extensions for the taxable year in which the offset occurs.

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F Example 6. 1 Employee B, who is age 40, has an account balance in Plan Z. Plan Z provides for no after-tax employee contributions. In 2022, Employee B receives a loan from Plan Z, the terms of which satisfy section 72p2, and which is secured by elective contributions subject to the distribution restrictions in section 401k2B.
2 Employee B fails to make an installment payment due on April 1, 2023, or any other monthly payments thereafter. In accordance with 1.72p 1, Q&A10, Plan Z allows a cure period that continues until the last day of the calendar quarter following the quarter in which the required installment payment was due September 30, 2023.
Employee B does not make a plan loan installment payment during the cure period. On September 30, 2023, pursuant to section 72p1, Employee B is taxed on a deemed distribution equal to the amount of the unpaid loan balance. Pursuant to 1.402c2, Q&A
4d, the deemed distribution is not an eligible rollover distribution.
3 Because Employee B has not severed from employment or experienced any other event that permits the distribution under section 401k2B of the elective contributions that secure the loan, Plan Z is prohibited from executing on the loan.
Accordingly, Employee Bs account balance is not offset by the amount of the unpaid loan balance at the time of the deemed distribution. Thus, there is no distribution of an offset amount that is an eligible rollover distribution on September 30, 2023.
G Example 7. 1 The facts are the same as in in paragraph a2vF of this section Example 6, except that Employee B has a severance from employment on November 1, 2023. On that date, Employee Bs unpaid loan balance is offset against the account balance on distribution.
2 The plan loan offset amount is not a qualified plan loan offset amount.
Although the offset occurred within 12
months after Employee B severed from employment, the plan loan does not meet the requirement in paragraph a2iiiB of this section that the plan loan meet the requirements of section 72p2 immediately prior to Employee Bs severance from employment.
Instead, the loan was taxable on September 30, 2023 prior to Employee Bs severance from employment on November 1, 2023, because of the failure to meet the level amortization requirement in section 72p2C.
Accordingly, Employee B may roll over the plan loan offset amount to an eligible retirement plan within the 60-

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day period provided in section 402c3A rather than within the period that ends on Employee Bs tax filing due date including extensions for the taxable year in which the offset occurs.
b1 Q2. When are the rules in this section applicable to plan loan offset amounts, including qualified plan loan offset amounts?
2 A2. The rules provided in paragraph a of this section are applicable to plan loan offset amounts, including qualified plan loan offset amounts, treated as distributed on or after January 1, 2021. However, taxpayers including a filer of a Form 1099R may choose to apply the regulations in this section with respect to plan loan offset amounts, including qualified plan loan offset amounts, treated as distributed on or after August 20, 2020.
Sunita Lough, Deputy Commissioner for Services and Enforcement.
Approved: December 1, 2020.
David J. Kautter, Assistant Secretary of the Treasury Tax Policy.
FR Doc. 202027151 Filed 1521; 8:45 am BILLING CODE 483001P

ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 30
EPAHQOA20180259; FRL1001907
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RIN 2080AA14

Strengthening Transparency in Pivotal Science Underlying Significant Regulatory Actions and Influential Scientific Information Environmental Protection Agency EPA.
ACTION: Final rule.
AGENCY:

This action establishes how the Environmental Protection Agency EPA will consider the availability of dose-response data underlying pivotal science used in its significant regulatory actions and influential scientific information. When promulgating significant regulatory actions or developing influential scientific information for which the conclusions are driven by the quantitative relationship between the amount of dose or exposure to a pollutant, contaminant, or substance and an effect, the EPA will give greater consideration to studies where the underlying dose-

SUMMARY:

E:FRFM06JAR1.SGM

06JAR1