Rev. Proc. 76-32

Section 1. Purpose

.01 The purpose of this Revenue Procedure is to modify Rev. Proc. 75-6, 1975-1 C.B. 646, with respect to the issuance of determination letters relating to individual retirement accounts established by employers and associations of employees as described in section 408(c) of the Internal Revenue Code of 1954, as amended by the Employee Retirement Income Security Act of 1974.

.02 This Revenue Procedure transfers jurisdiction for approval of individual retirement accounts established by employers and associations of employees from the Key District Directors to the National Office and authorizes the National Office to issue rulings as to whether individual retirement accounts meet the requirements of section 408(c) of the Code.

Sec. 2. Background and General Information

The general procedures of the Service relating to the issuance of rulings, determination letters, and opinion letters are set forth in Rev. Proc. 72-3, 1972-1 C.B. 698.

Rev. Proc. 75-6 amplifies Rev. Proc. 72-3 and sets forth interim procedures pertaining to the issuance of rulings, determination letters, and opinion letters on the establishment of individual retirement accounts and individual retirement annuities under sections 408(a), (b), and (c) of the Code, and the status for exemption of a related trust or custodial account under section 408(e). Under Rev. Proc. 75-6, applications from employers or associations of employees were submitted to district directors for approval.

Sec. 3. Procedures

.01 The National Office will issue rulings as to whether individual retirement accounts established by employers and associations of employees meet the requirements of section 408(c) of the Code.

.02 Individual retirement accounts with respect to which favorable rulings are issued pursuant to this Revenue Procedure may have to be amended subsequently to include or revise provisions to meet the requirements of regulations adopted after such rulings have been issued. Favorable rulings will not be withdrawn so long as the trust is amended to meet the requirements of those regulations.

Sec. 4. Instructions to Taxpayers

An employer or association of employees that desires a ruling as to whether the individual retirement account established for the benefit of its employees or members meets the requirements of section 408(c) of the Code should submit Form 5306, Application for Approval of Prototype or Employer Sponsored Individual Retirement Account (Rev. June 1976). Form 5306, which formerly was applicable only to prototype individual retirement accounts, has been revised to accommodate these applications. This procedure should be followed whether the application for approval is submitted for a new account or for an amendment to an existing account. The applications should be addressed to the Commissioner of Internal Revenue, Washington, D.C. 20224, Attention: E:EP:T.

Sec. 5. Transitional Rules

.01 Key District Directors will continue to issue determination letters with respect to applications received by the Internal Revenue Service prior to the effective date of this Revenue Procedure.

.02 Applications seeking approval of individual retirement accounts received on or after the effective date of this Revenue Procedure will be processed in accordance with the provisions of this Revenue Procedure.

Sec. 6. Effect On Other Documents

Rev. Proc. 75-6 is hereby modified.

Sec. 7. Effective Date

This Revenue Procedure is effective October 4, 1976.

¹ Also released as IR 1667, dated Sept. 8, 1976.