SECTION 9. PAPERWORK

REDUCTION ACT

The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control number 1545–1543.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.

The collections of information in this revenue procedure are in sections 3.03(2), 3.03(3), 3.03(5), 4.01, 4.03, 6.01 and 6.03. This information is required to ascertain whether the request meets the requirements of § 408(p) so that an opinion letter can be issued to the applicant. The likely respondents are (1) businesses or other for-profit institutions and (2) not-for-profit institutions.

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The estimated total annual reporting burden is 25,870 hours.

The estimated annual burden per respondent varies from 0.5 hours to 16 hours, depending on individual circumstances, with an estimated average of 8.07 hours. The estimated number of respondents is 3,205.

The estimated annual frequency of responses is three requests per applicant. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, an application for an opinion letter for a prototype plan is treated as an application for a determination letter and is subject to the disclosure rules of § 6104.

DRAFTING INFORMATION

The principal author of this revenue procedure is Roger Kuehnle of the Employee Plans Division. For further information regarding this revenue procedure, please contact the Employee Plans Division’s taxpayer assistance telephone service at (202) 622–6074/75 (not toll-free numbers) between 1:30 and 3:30 p.m., Eastern Time, Monday through Thursday.

APPENDIX

Model Language

1. To establish a SIMPLE IRA using an Eligible IRA and the model amendment described in section 3, a prototype sponsor must follow the procedures in that section and the instructions below. A prototype sponsor that replaces one or more of the words ‘‘contribution,’’ ‘‘participant’’ and ‘‘trustee’’ in the model language, as authorized by sections 3, 4, 5, and 6 in this appendix, is considered to have adopted the model language on a word-for-word basis.

2. The document must be identified as a SIMPLE IRA.

3. The prototype sponsor must delete the applicable sections in the Eligible IRA document dealing with acceptable contributions (from any source) and add the following (if different terms are used in the Eligible IRA document, the words ‘‘contribution’’ and ‘‘participant’’ must be replaced by the other terms used in lieu of these terms):

This SIMPLE IRA will accept only cash contributions made on behalf of the participant pursuant to the terms of a SIMPLE IRA Plan described in section 408(p) of

the Internal Revenue Code. [The following sentence is optional on the part of the prototype sponsor: ‘‘A rollover contribution or a transfer of assets from another SIMPLE IRA of the participant will also be accepted.’’] No other contributions will be accepted. 4. The prototype sponsor must add the following paragraph to the Eligible IRA document (if different terms are used in the Eligible IRA document, the words ‘‘contribution,’’ ‘‘participant’’ and ‘‘trustee’’ must be replaced by the other terms used in lieu of these terms):

If contributions made on behalf of the participant pursuant to a SIMPLE IRA Plan maintained by the participant’s employer are received directly by the trustee from the employer, the trustee will provide the employer with the summary description required by section 408(l)(2) of the Internal Revenue Code. 5. If the document is to be used with respect to a SIMPLE IRA by a trustee, custodian or issuer that is a designated financial institution within the meaning of § 408(p)(7), the prototype sponsor

must add the following paragraph to the Eligible IRA document (if different terms are used in the Eligible IRA document, the words ‘‘contribution’’ and ‘‘participant’’ must be replaced by the other terms used in lieu of these terms):

If this SIMPLE IRA is maintained by a designated financial institution (within the meaning of section 408(p)(7) of the Internal Revenue Code) under the terms of a SIMPLE IRA Plan of the participant’s employer, the participant must be permitted to transfer the participant’s balance without cost or penalty (within the meaning of section 408(p)(7)) to another IRA. (For further information concerning the obligations of a designated financial institution, see Q&As J–1 through J–5 in Notice 97–6. Note that if a trustee, custodian or issuer with respect to a SIMPLE IRA is not a designated financial institution, the employer must permit the participant to select the financial institution to which the employer will make contributions. (See Q&A E–4 in Notice 97–6.))

6. The prototype sponsor must add the following paragraph to the Eligible

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IRA document (if different terms are used in the Eligible IRA document, the words ‘‘contribution’’ and ‘‘participant’’ must be replaced by the other terms used in lieu of these terms):

Prior to the expiration of the 2-year period beginning on the date the participant first participated in any SIMPLE IRA Plan maintained by the participant’s employer, any rollover or transfer by the participant of funds from this SIMPLE IRA must be made to another SIMPLE IRA of the participant. Any distribution of funds to the participant during this 2-year period may be subject to a 25-percent additional tax if the participant does not roll over the amount distributed into a SIMPLE IRA. After the expiration of this 2-year period, the participant may roll over or transfer funds to any IRA of the participant that is qualified under section 408(a) or (b) of the Internal Revenue Code. 7. The prototype sponsor must delete any definition of compensation contained in the Eligible IRA document.