SECTION 4. TRANSITIONAL

RELIEF

.01 Prototype IRAs. An individual who establishes a trust, custodial account or annuity contract as a Roth IRA after December 31, 1997, and before the applicable date in section 4.01(3) below using a document that has not been approved by the Service for use as a Roth IRA is deemed to have used a document that has been approved by the Service for this use provided the conditions in sections 4.01(1) through 4.01(4) below are satisfied:

(1) The individual used a document provided by a prototype sponsor and the document, or associated written material, clearly designated the trust, custodial account or annuity as a Roth IRA at the time of establishment.

(2) On or before June 30, 1999, the prototype sponsor applies to the Service for an opinion letter on the document described in section 4.01(1) above using the procedures described in section 3 of this revenue procedure.

(3) The individual adopts the ap

proved document within 120 days after the later of: (a) the date the Service issues a favorable opinion letter on the document to the prototype sponsor and (b) if the prototype sponsor seeks approval of the document from one or more state insurance departments not later than 90 days after the Service issues a favorable opinion letter on the document, the date the document is approved by all such state insurance departments. If, as a result of amendments to the document required by a state insurance department, the prototype sponsor applies to the Service for an opinion letter on the amended document within 90 days after it is approved by such state insurance department, the date in (a) in the preceding sentence is the date the Service issues a favorable opinion letter on the amended document.

(4) For the period beginning with the establishment of the Roth IRA and ending on the date the Service-approved document is adopted, the individual and the trustee, custodian or issuer comply in operation with § 408A.

.02 Section 408(c) IRAs. An employer or employee association that establishes a trust or custodial account under § 408(c) for use as a Roth IRA after December 31, 1997, and before June 30, 1999, using a document that has not been approved by the Service for use as a Roth IRA is deemed to have used a document that has been approved by the Service for this use provided the conditions in sections 4.02(1) through 4.02(4) below are satisfied.

(1) The employer or employee association used a document that clearly designated the trust or custodial account as a Roth IRA at the time of establishment.

(2) On or before June 30, 1999, the

employer or employee association applies to the Service for an opinion letter on the document described in section 4.02(1) above using the procedures described in section 3 of this revenue procedure.

(3) The employer or employee association adopts the approved document within 30 days after the date the Service issues a favorable opinion letter on the document to the employer or employee association.

(4) For the period beginning with the establishment of the Roth IRA and ending on the date the Service-approved document is adopted, the employer or employee association, the employee for whose benefit the Roth IRA is established, and the trustee or custodian comply in operation with § 408A.