New IRA Documents May Be Just Around the Corner
The release of new IRS plan documents for Traditional and Roth IRAs may be just around the corner. For the past few years, and now more recently, the IRS has indicated that it plans to release new IRA model documents for each type of IRA. When that happens, all IRA trustees, custodians, and issuers will be required to use either the new model documents or the new listing of required modifications (if using a prototype document) for all clients.
When your organization first began offering IRAs, a decision was made to use either the IRS model document or a prototype document. Chances are, it’s been several years since your organization has analyzed this decision—possibly as long ago as 1998 after Roth IRAs were created, or in 2002, after the enactment of EGTRRA (the Economic Growth and Tax Relief Reconciliation Act of 2001).
The first step in preparing for the release of new documents is to review your financial organization’s current IRA documents and determine if they still meet your business’s needs.
Does this seem overwhelming? It doesn’t have to be. Ascensus makes it easy to take the first steps in preparing for the new documents and potential amendments. We’ll walk you through the pros and cons of using a model document versus a prototype document. We’ll also help you determine if the type of document you’re currently using is still the best option. For a complimentary review of your organization’s current document, contact Ascensus at 800-346-3860 or customersupport@ascensus.com.
Next month, we’ll discuss why an IRA plan document is required and what you need to know about the differences between an IRS model version and a prototype version.
