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Article: Rule change on Deemed IRAs doesn't end employer concerns.
- Article from:
- Employee Benefit News
- Article date:
- October 1, 2004
- Author:
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The Internal Revenue Service has finalized rules on Deemed IRAs, clearing the way for employers to adopt them. But no one seems interested.
The idea of a Deemed IRA is to make it easier for individuals to save through Individual Retirement Accounts by having an employer offer the IRA along with the organization's existing retirement plan. Deemed IRAs came available last year, but response from employers has been weak, vendors say.
Part of the problem, experts indicate, could be that there are ramifications with incorporating Deemed IRAs into existing 401(k) plans that the regulations authorizing them do not address. To circumvent that issue, the ...