1 See Institute Memorandum to Operations Committee No. 35-95, Pension Committee No. 24-95, dated November 22, 1995.
December 19, 1995
TO: OPERATIONS COMMITTEE No. 37-95
PENSION COMMITTEE No. 26-95
AD HOC COMMITTEE ON IRA TECHNICAL/OPERATIONS ISSUES
RE: PROPOSED IRA LEGISLATION TECHNICAL/OPERATIONS ISSUES
______________________________________________________________________________
On December 5th, the Institute held a meeting to discuss technical and operational issues arising
from proposed legislation that would create a nondeductible, tax-free IRA called the American Dream
IRA.1 This new IRA was included in legislation vetoed by President Clinton earlier this month. The
President has also proposed his own version of the nondeductible, tax-free IRA, which differs in detail
from the Congressional proposal.
Attached is a memorandum summarizing some of the issues identified at the December 5
meeting. The Institute hopes that as the budget negotiation process continues, issues identified will be
addressed and clarified in the legislation.
Because the IRA proposals are subject to the on-going budget negotiation process, it remains
unclear whether or not there will be IRA legislation this year. As the details of the legislation, if any,
become clearer, the Institute will schedule additional meetings to discuss it.
We will keep you informed of further developments.
Russell G. Galer
Assistant Counsel - Pension