[9466]
December 1, 1997
VIA FACSIMILE
TO: PENSION COMMITTEE No. 48-97
PENSION OPERATIONS ADVISORY COMMITTEE No. 47-97
RE: IRS-APPROVED ROTH IRA TRUST AND CUSTODIAL AGREEMENTS
______________________________________________________________________________
The IRS has released its model Roth IRA trust account agreement, Form 5305-R, and
custodial account agreement, Form 5305-RA. These model agreements are similar to Form 5305
and Form 5305-A with two exceptions. First, Article II of the Roth IRA model agreements
includes the AGI limitations applicable to Roth IRA contributions and conversions. Second,
Article V incorporates new section 401(a)(9) rules as applicable to Roth IRA shareholders.
The Service is expected to release additional guidance regarding the ability of financial
institutions to combine Roth IRA agreements with traditional IRA agreements early this week.
In addition, this guidance should include transition rules regarding these IRS-approved model
agreements for the Roth IRA.
Copies of Form 5305-R and Form 5305-RA are attached.
Kathryn A. Ricard
Assistant Counsel - Pension
Attachments (in .pdf format)