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OMB Control No: 1545-2317	ICR Reference No: 202309-1545-008
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Certificate of Terminal Illness for Exception to the 10% Additional Tax
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR: No
Type of Review Request: Emergency	Approval Requested By: 12/20/2023
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/20/2023
Retrieve Notice of Action (NOA)	Date Received in OIRA: 12/18/2023
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2024	6 Months From Approved
Responses	500	0	0
Time Burden (Hours)	125	0	0
Cost Burden (Dollars)	0	0	0

Abstract: Section 72(t)(1) generally imposes a 10 percent additional tax on any distribution from a qualified retirement plan within the meaning of section 4974(c), unless the distribution qualifies for one of the exceptions listed in section 72(t)(2). Section 72(t)(2)(L)(iii) provides that, in order to be considered a terminally ill individual, an employee must furnish sufficient evidence to the plan administrator. This information will be used by a plan administrator to determine whether an individual is eligible for a terminal illness distribution and thus eligible for the exception to the 10 percent additional tax under section 72(t)(2)(L).

Emergency Justfication: The Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) are requesting an OMB Control Number under emergency procedures in connection with provision §§ 326 of Division T of the Consolidated Appropriations Act, 2023, Pub. L. 117-328, 136 Stat. 4459 (2023), known as the Setting Every Community Up for Retirement Enhancement Act of 2022 (SECURE 2.0 Act) on December 29, 2022. Treasury and IRS will issue a notice providing guidance on various sections of the SECURE 2.0 Act. Background on the Collection Section 72(t)(1) of the Code generally imposes a 10 percent additional tax on any distribution from a qualified retirement plan within the meaning of § 4974(c), unless the distribution qualifies for one of the exceptions listed in § 72(t)(2). Section 326 of the SECURE 2.0 Act, amended § 72(t)(2) of the Code to add a new exception to the 10 percent additional tax for any distribution made to a terminally ill individual. Section 72(t)(2)(L) permits an employee who is a terminally ill individual to receive a distribution (terminally ill distribution) on or after the date on which the employee has been certified by a physician as having a terminal illness. Section 72(t)(2)(L)(iii) provides that, in order to be considered a terminally ill individual, an employee must furnish sufficient evidence to the plan administrator in such form and manner as the Secretary of the Treasury may require. A terminally ill distribution is includible in gross income but is not subject to the 10 percent additional tax under § 72(t)(1). Section 326 applies to distributions made by terminally ill individual after December 29, 2022. Information Being Collected As required by section 326 of the SECURE 2.0 Act, the notice provides that a written certification of terminal illness from a physician must be provided to the plan administrator and include the following: (1) a statement that the individual’s illness or physical condition that can be reasonably expected to result in death in 84 months or less; (2) a narrative description of the evidence that was used to support the statement of illness or physical condition; (3) the name and contact information of the physician making the statement; (4) the date the physician examined the individual or reviewed the evidence provided by the individual, and the date that the certification is signed by the physician; and (5) the signature of the physician making the statement, and an attestation from the physician that, by signing the form, the physician confirms that the physician composed the narrative description based on the physician’s examination of the individual or the physician’s review of the evidence provided by the individual. Request Section 326 of the SECURE 2.0 Act is effective for plan years beginning after December 29, 2022. Because many plans are calendar year plans, these provisions are currently effective for many employers and employees. Therefore, employers may now offer financial incentives, and terminally ill taxpayers may now take terminally ill distributions. Taxpayers need immediate guidance as to how to satisfy the Code requirements. Therefore, due to the extraordinary circumstances for implementing §§ 326 of the SECURE 2.0 Act, Treasury, and IRS request emergency processing of this information collection request by December 20. Given the inability to seek public comment during such a short timeframe, IRS also respectfully requests a waiver from the requirement to publish a notice in the Federal Register seeking public comment during the period of Office of Management and Budget review. However, public comment will be solicited in the notice in conjunction with the subsequent approval to collect this information.

Authorizing Statute(s): US Code: 26 USC 72 Name of Law: Annuities; certain proceeds of endowment and life insurance contracts

Citations for New Statutory Requirements: PL: Pub.L. 117 - 328 326 Name of Law: SECURE 2.0 Act of 2022

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

Federal Register Notices & Comments
Did the Agency receive public comments on this ICR? No

Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Notice 2024-2

ICR Summary of Burden

	Total Approved	Change Due to New Statute
Annual Number of Responses	500	500
Annual Time Burden (Hours)	125	125
Annual Cost Burden (Dollars)	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: This is a new collection due to enactment of Section 326 of the SECURE 2.0 Act.

Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination. No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination. No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

Agency Contact: Andre's Garcia 202 317-4542

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