SECTION 2. BACKGROUND AND

GENERAL INFORMATION

.01 The Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), Pub. L. 107–16, made several changes to the Internal Revenue Code, affecting IRAs (traditional, Roth, and SIMPLE IRAs), SEPs (including salary reduction SEPs, “SARSEPs”) and SIMPLE IRA plans, that are effective beginning January 1, 2002.

.02 On January 17, 2001, proposed regulations concerning required minimum distributions from retirement plans were published in the Federal Register. These proposed regulations can be used to figure required minimum distributions from IRAs beginning with the 2001 distribution calendar year. Final regulations are expected to be issued in the near future.

.03 Rev. Proc. 87–50 (1987–2 C.B. 647) provides the procedures for a sponsoring organization or a mass submitter (a “prototype sponsor”) to apply to the Service for an opinion letter on whether a prototype traditional IRA or a prototype SEP meets the requirements of § 408(a) or (b), or § 408(k), respectively. Rev. Proc. 87–50 also contains procedures for employers and employee associations to apply for a ruling on a § 408(c) IRA and for employers to apply for a ruling on whether a SEP, in combination with a terminated defined benefit plan, satisfies the requirements of § 415.

.04 Rev. Proc. 91–44 (1991–2 C.B. 733) modified Rev. Proc. 87–50 to permit prototype sponsors to apply to the service for an opinion letter on whether a prototype SARSEP meets the requirements of § 408(k)(6). The Small Business Job Protection Act of 1996 (Pub. L. 104–188)

prohibited the establishment of SARSEPs after December 31, 1996.

.05 Rev. Proc. 97–29 (1997–1 C.B. 698) modified Rev. Proc. 87–50 to permit prototype sponsors to apply to the Service for an opinion letter on whether a prototype SIMPLE IRA or a SIMPLE IRA plan meets the requirements of § 408(p).

.06 Rev. Proc. 98–59 (1998–2 C.B. 727) modified Rev. Proc. 87–50 to permit prototype sponsors to apply to the Service for an opinion letter on whether a prototype Roth IRA meets the requirements of § 408A.

.07 In Announcement 2001–96 (2001–41 I.R.B. 317) (October 9, 2001), the Service announced that opinion letters would not be issued covering EGTRRA changes to SEPs and SIMPLE IRA plans until further notice.

.08 Model forms are available for taxpayers who want to use a pre-approved document to establish an IRA or a SEP or SIMPLE IRA plan without using a prototype document. The model forms referenced in the preceding sentence are: Form 5305, Individual Retirement Trust Account ; Form 5305–A, Individual Retirement Custodial Account ; Form 5305–R, Roth Individual Retirement Trust Account ; Form 5305–RA, Roth Individual Retirement Custodial Account ; Form 5305–RB, Roth Individual Retirement Annuity Endorsement ; Form 5305–S, SIMPLE Individual Retirement Trust Account ; Form 5305–SA, SIMPLE Indi- vidual Retirement Custodial Account ; Form 5304–SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) - (Not Subject to the Designated Financial Institution Rules); Form 5305–SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) - (For Use With a Designated Financial Institution); Form 5305–SEP, Simplified Employee Pension ; and Form 5305A-SEP, Salary Reduction and Other Elective Simplified Employee Pension.