August 16, 1996
TO: TRANSFER AGENT ADVISORY COMMITTEE No. 49-96
RE: INSTITUTE REQUESTS IRS CLARIFY IRA WITHDRAWAL NOTICE
REQUIREMENTS
______________________________________________________________________________
The Institute has submitted a request to the Internal Revenue Service seeking clarification of the
regulations under Section 3405 of the Internal Revenue Code regarding the provision of notice to IRA
investors seeking to redeem mutual fund shares held in IRA accounts. Specifically, the Institute has
requested that the IRS confirm that the required tax withholding notice and individual elections regarding
withholding may be transmitted orally via either "live" telephone representative or voice response system
at the time of a telephone redemption request. A copy of the Institute s submission is attached.
We will keep you informed of developments.
Russell G. Galer
Assistant Counsel - Pension
Attachment