Employee Plans News - December 16, 2011 - Certain Agreements Affecting IRAs
The IRS issued Announcement 2011-81 on December 12, 2011, granting temporary relief to IRA owners who have the following types of agreements with their brokers or financial institutions:
- indemnification agreements where the IRA owner agrees to reimburse a broker or other financial institution for losses incurred in the IRA, or
- cross-collateralization agreements where the IRA owner grants a security interest in either a non-IRA account in favor of an IRA or in an IRA in favor of a non-IRA account.
Pending additional guidance, the IRS will not take any action against an IRA solely because it’s involved in one of these agreements, provided no action has been taken under such agreement against the IRA assets.