By Mark Smith, Dan Buchner and Adam CohenOn November 23, 2010, the IRS issued Rev. Proc. 2010-48, providing helpful guidance regarding the amendment and approval of prototype IRAs for a host of statutory changes. With demographic changes driving the growth of IRAs over the next decade, the sensible and useful positions taken by the IRS are most welcome, and will help minimize the formalistic compliance costs and risks for IRAs to the ultimate benefit of IRA owners.
The IRS provided guidance on the following procedural points:
Revised model IRAs are expected shortly. The IRS also plans to issue new model IRAs for traditional individual retirement annuities and SIMPLE individual retirement annuities
Prototype IRA providers should revise their IRA disclosure statements to update both (i) any disclosures affected by the recent legislation, and (ii) if applicable, any statement about IRS approval of the prototype IRA that is affected by the new guidance.
The statutory developments expressly covered by the Revenue Procedure (which also serves as a helpful checklist for IRA administration) include:
Since 1981, Mark Smith, a member of Sutherland's Tax Practice Group, has
advised clients on tax, ERISA and other issues related to retirement,
executive compensation, insurance, cafeteria and other employee benefit
plans. He is engaged on behalf of insurance companies, broker-dealers,
investment advisers and managers, banks, consulting firms, other service
providers and plan sponsors for a range of consulting, transactional,
regulatory and litigation matters.Daniel Buchner is a member of Sutherland's Tax Practice Group
concentrating in the areas of employee benefits, executive compensation,
exempt organizations, Employee Retirement Income Security Act (ERISA)
Title I, insurance and annuity products, and corporate tax controversy.
He assists a broad base of clients in matters relating to tax-qualified
retirement plans, equity compensation arrangements, obtaining and
retaining tax-exempt status, and defense against a variety of challenges
by the Internal Revenue Service (IRS) and the U.S. Department of Labor.
Adam Cohen, a member of Sutherland's Tax Practice Group, focuses his
practice on employee benefits and executive compensation. He assists a
diverse group of clients, including public companies, closely held
businesses and tax-exempt organizations, in matters including:
If you have any questions about this Legal Alert, please feel free to contact any of the attorneys listed below or the Sutherland attorney with whom you regularly work.
© 2010 Sutherland Asbill & Brennan LLP. All Rights Reserved.This communication is for general informational purposes only and is not intended to constitute legal advice or a recommended course of action in any given situation. This communication is not intended to be, and should not be, relied upon by the recipient in making decisions of a legal nature with respect to the issues discussed herein. The recipient is encouraged to consult independent counsel before making any decisions or taking any action concerning the matters in this communication. This communication does not create an attorney-client relationship between Sutherland and the recipient.
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