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Individual Tax Return
Instructions for Form 1040
Request for Taxpayer Identification Number (TIN) and Certification
Request for Transcript of Tax Return


Employee's Withholding Allowance Certificate
Employer's Quarterly Federal Tax Return
Employers engaged in a trade or business who pay compensation
Installment Agreement Request

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Rules Governing Practice before IRS

Operating a Payroll Deduction IRA

What are the employer’s administrative responsibilities?

  • There is no annual filing or reporting requirement for a Payroll Deduction IRA.
  • The employee’s Form W-2 will not reflect the contributions and will indicate that the employee is not a participant in a retirement plan.
  • No separate statements need to be provided to the employees.

Who is eligible for participation?

Any employee who performs services for your company is eligible to be included in a Payroll Deduction IRA. If you offer it to one employee, then you should offer it to everyone.

What are the contribution rules?

  • Employees fund their own Payroll Deduction IRA through payroll withholding.
  • Contributions to each employee’s account are limited.
  • After employers send Payroll Deduction IRA contributions to each financial institution, they have no further responsibility for the amounts contributed.


  • Each employee has the freedom to move their IRA assets from one IRA to another.
  • The financial institutions selected will manage the funds.
  • Payroll Deduction IRA contributions can be invested in stocks, mutual funds, money market funds, savings accounts and other similar types of investments.

What are the vesting rules?

Each employee is always 100% vested in (or has total ownership of) the contributions to their Payroll Deduction IRA.