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Deemed IRAs: An Opportunity to Encourage Employees to Deposit All of their Retirement Savings with a Single Institution

June 01, 2003

By Ethan Lipsig & Susan G. Curtis

The Internal Revenue Service (IRS) on May 20, 2003 issued proposed regulations that will allow financial institutions and investment management firms, as well as employers, to implement “deemed IRAs.” Deemed IRAs are individual retirement accounts or annuities that are established within employer-sponsored tax qualified retirement plans. These new vehicles will enable covered employees who take advantage of the deemed IRA feature to place much or all of their retirement savings with a single institution.