Kirkland Alert Kirkland & Ellis LLP

"Deemed IRAs" Now Permitted Under Qualified Plans

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) added new Code § 408(q) which permits voluntary employee contributions made to qualified employer plans to be treated as IRA or Roth IRA contributions. This alert discusses the requirements for establishing such a "deemed IRA" and summarizes recently issued IRS guidance.