IRS Extends Deadline for Using Revised IRA Model Documents

[Guest David Hammond CISP]

Hi Everyone,

IRS Announcement 2002-49 released this morning extends the dealine for using Revised IRA Model Documents for establishing new IRA's as of June 1, 2002 as originally prescribed in IRS Rev. Proc. 2002-10. The Text of the annoucement follows:

"Extended Period for Use of Certain Forms

IRS Announcement 2002-49

In Rev. Proc. 2002-10, 2002-4 I.R.B. 401, the Service provided that existing model IRAs, SEPs and SIMPLE IRA plans may not be used after June 1, 2002, to establish new IRAs, SEPs or SIMPLE IRA plans. In response to comments, the Service is extending the June 1 deadline to October 1, 2002. Thus, a financial institution may use an existing model IRA to establish a new IRA for a customer through October 1, 2002. Similarly, an employer may use an existing model SEP or SIMPLE IRA plan to establish such a plan through October 1, 2002. The deadlines by which revised model forms must be adopted under Rev. Proc. 2002-10 are unchanged."

Cordially

David Hammond