Are IRA Amendments Required For 2018-2019?
The governing IRA regulation requires an
IRA custodian to furnish an IRA amendment
when the IRA plan agreement provisions are
changed or when one or more of the topics
discussed in the IRA disclosure statement is
no longer correct and it needs to be revised
to set forth a current explanation.
More lRA changes have occurred in 2018 then many people realize. There were also a number of changes in 2016 and 2017.
There are two types of IRA amendments -
one which amends the IRA plan agreement
and one which amends the IRA disclosure
statement. An IRA custodian/trustee may
indeed to furnish both amendments. Regulation
1.4 08-6(4)(ii)(C) requires that an IRA
amendment be furnished no later than the
30th day after the amendment is adopted or
The following are the primary changes which occurred in 2018:
In order to determine which amendment
should be furnished, an IRA custodian/trustee
wants to understand when was the last time
an IRA amendment was furnished and what
did if cover. In April of 2017 the Internal Revenue
Service (IRS) issued revised model IRA
Forms, 5305, 5305-A, 5305-R and 5305-RA.
In 2019, many lRA custodians will furnish
a comprehensive IRA amendment because it
amends the IRA plan agreement and also furnishes
an IRA disclosure statement discussing
the IRA rules as they apply in 2018 and
2019. Furnishing the 2018-2019 comprehensive
IRA amendment by January 31, 2019 or
May 31, 2019 provides current accurate IRA
information allowing individuals to hopefully
make informed IRA decisions.
Combining the 2018-2019 IRA Amendment
with other IRA statements and notices
can be cost effective as mailing costs can be