[9384]
October 31, 1997
TO: PENSION COMMITTEE No. 45-97
AD HOC COMMITTEE ON EDUCATION IRA
RE: INSTITUTE SUBMITS PROTOTYPE EDUCATION IRA CUSTODIAL
AGREEMENT TO IRS
______________________________________________________________________________
The Institute has submitted to the Internal Revenue Service the attached Education IRA custodial
agreement for its review. This agreement was developed with significant input from the ad hoc
committee assembled for this purpose. The Institute is seeking IRS approval of the document for use by
Institute members.
As you know, section 530 of the Internal Revenue Code, which defines the Education IRA
vehicle, appears to leave much of the account’s rules and design details to the particular trust or custodial
agreement and relevant state law. The Institute’s "prototype" document contains several particular
design decisions, the most notable of which is a determination that the person controlling the Education
IRA must either be a parent or legal guardian of the designated beneficiary, or at that person’s election,
the beneficiary, if the beneficiary has attained the age of majority under relevant state law.
Russell G. Galer
Associate Counsel - Pension
Attachment (in .pdf format)