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Article: Lukewarm Reception for Deemed IRAs.(Individual retirement accounts)(Brief Article)
- Article from:
- Kiplinger's Retirement Report
- Article date:
- October 1, 2004
CopyrightCOPYRIGHT 2004 The Kiplinger Washington Editors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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LUKEWARM RECEPTION FOR DEEMED IRAS
What is a "deemed IRA?"
A deemed IRA (sometimes called a sidecar IRA) works like a traditional IRA, except that it is created under a company plan, similar to a 401(k) plan. Deemed IRAs have been permitted since January 1, 2003, but few companies have started such accounts for their employees. Congress created deemed IRAs in the hope that employees would be more likely to contribute to an IRA if they had the convenience of having their contributions deducted from their paychecks, the way ...