Form 5306 Application for Approval of Prototype or Employer Sponso

Form

5306

(Rev. October 2006)

Application for Approval of Prototype or Employer
Sponsored Individual Retirement Arrangement (IRA)

Department of the Treasury
Internal Revenue Service

1

(Under Section 408(a), (b), (c), or (p) or section 408A of the Internal Revenue Code)

Enter amount of user fee submitted (see Specific Instructions)

Part I

OMB No. 1545-0390

䊳

For IRS Use Only

$

Identifying Information (see instructions before completing this part)

2

Approval requested for:
a Type of individual retirement arrangement—
(1)
(2)
Prototype traditional IRA under section 408(a) or 408(b)
(4)
(3)
Prototype SIMPLE IRA under section 408(p)
Initial application
b
c
Amendment—Enter 䊳
(1) Latest letter serial number
(2) Date letter

Prototype Roth IRA under section 408A
Roth or traditional IRA established by employer
or employee association under section 408(c)
issued

(3) File folder number

3a Name of applicant

3b Employer identification
number of applicant

Number, street, and room or suite no. (If a P.O. box, see instructions on page 2.)
City or town, state, and ZIP code
4b Telephone number
(
)
Type of sponsoring organization (if you are applying for a ruling under section 408(c), do not complete this item):
e
Regulated investment company
Insurance company
f
Federally insured credit union
Trade or professional association
Savings and loan association that qualifies as a bank
g
Approved non-bank trustee (attach copy of approval
Bank
letter)
Name of trustee or custodian

4a Name of person to contact
5
a
b
c
d
6

Number, street, and room or suite no. (If a P.O. box, see instructions on page 2.)
City or town, state, and ZIP code
7
a
b

Type of funding entity:
Trust
Custodial account

Part II

c

Insurance company
Annuity contract number

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Plan Information

Attach a copy of the plan documents (trust agreement, custodial account, annuity contract, etc.) and indicate
the article or section reference and the page number where the following provisions appear. If an item does
not apply, enter “N/A.” Sample language, or a listing of required modifications (LRMs), is available on the IRS
website at www.irs.gov. Type “LRM” in the search box, then click on “Listing of Required Modifications
(LRMs).” Sponsors are encouraged to use LRM language.

Article or
Section
Reference

Page
Number

For IRS
Use
Only

8a Does the IRA provide that the trust is created for the exclusive benefit of the participant
or his or her beneficiaries, or that the annuity contract must be owned only by the
annuitant?
b Does the IRA describe the type of allowable contributions (that is, only cash except
for rollovers) and maximum limitation?

2/14

c Does the IRA prohibit the investment of trust assets in collectibles, or contain a
statement informing individuals that an investment in collectibles, except for
investments in certain coins and precious metals, will be treated as a taxable
distribution?
d Does the IRA prohibit investment in life insurance contracts?
e Does the IRA provide the rules on required distributions commencing before death?
f Does the IRA provide the rules on required distributions commencing after death?

3
4
5/15
6/16

Please
Sign
Here

1/13

Under penalties of perjury, I declare that I have examined this application, including accompanying statements, and to the best of my knowledge
and belief, it is true, correct, and complete.

䊳

Signature of officer

For Paperwork Reduction Act Notice, see back of form.

Date
Cat. No. 11830C

䊳

Title
Form

5306

(Rev. 10-2006)

Form 5306 (Rev. 10-2006)

8

Page

Article or
Section
Reference

(continued from page 1)

i Does the IRA provide for application of premium refund (other than refunds attributable
to excess contributions) before the end of the calendar year following the year of the
refund toward the payment of future premiums or the purchase of additional benefits?
j Does the IRA prohibit commingling assets of trusts?
k Does the IRA provide that annuity contracts must have flexible premiums?
l Does the IRA provide for a separate accounting for the interest of each employee or
member of the association?
m Does the IRA provide for annual calendar-year reports by trustees or issuers?
n Does the IRA require substitution of non-bank trustee or custodian when notified by
the Commissioner of the Internal Revenue Service?
o Does the IRA define compensation?
a

b

For IRS
Use
Only

7/17
18

g Does the IRA provide that the account is nonforfeitable?
h Does the IRA provide that the contract is nontransferable?

9

Page
Number

2

19
8
20
9
10/21
11
12/22

Disclosure statement (check either a or b):
Attached is a copy of the disclosure statement that will be used to inform participants of the restrictions and limitations
imposed by law on individual retirement programs such as: eligibility for deductions, excise tax on excess contributions,
penalty taxes on premature distributions, the consequences of prohibited transactions, and other required topics; or
Each participant will be furnished a copy of Pub. 590, Individual Retirement Arrangements (IRAs). (Do not submit a copy
of Pub. 590 with this application.)

General Information
Section references are to the Internal
Revenue Code.
Purpose of form. Sponsoring
organizations, employers, or employee
associations, use Form 5306 to request an
opinion letter as to:
● Whether a prototype trust or custodial
account agreement meets the
requirements of section 408(a), 408(c),
408(p), or 408A, or
● Whether a specific prototype individual
annuity meets the requirements of section
408(b), 408(p), or 408A.

General Instructions
Who may file. Form 5306 may be filed by
a sponsoring organization that is:
● A bank (including savings and loan
associations that qualify as banks and
federally insured credit unions),
● Any person who has IRS approval to act
as a trustee or custodian,
● An insurance company,
● A regulated investment company, or
● A trade or professional society or
association (other than employee
associations).
Who may file for employer or employee
association. Employers or employee
associations who want a ruling under
section 408(c) for a trust which will be
used for individual retirement accounts
may file this form. The term “employee
association” means any organization
composed of two or more employees,
including, but not limited to, an employee
association described in section 501(c)(4).
Who does not need to file. Sponsors of
programs, employers, or associations of
employees that use any of the Form 5305
series of model forms should not submit
their programs to the Internal Revenue

Service. These model forms, issued by the
Service, contain language that, if followed, will
satisfy the applicable statutory requirements.
What to file. File Form 5306 and a copy of
the trust, custodial account, or annuity
contract and all other applicable
documents. If you are requesting an
opinion letter for an amendment, attach a
copy of the amendment and an
explanation of its effect on the trust,
custodial account, or annuity contract.
Where to file. File Form 5306 with the
Internal Revenue Service, Attention: EP
Opinion Letter, P.O. Box 27063, McPherson
Station, Washington, DC 20038.
Address. Include the suite, room, or other
unit number after the street number. If the
Post Office does not deliver mail to the street
address and you have a P.O. box, show the
box number instead of the street address.
Signature. An officer who is authorized to
sign or another person authorized under a
power of attorney must sign this
application. Send the power of attorney
with this application when you file it.

Specific Instructions
User fee. All applications must be
accompanied by the appropriate user fee.
Applications submitted without the proper
user fee will not be processed and will be
returned to the applicant.
To find the proper user fee, see Rev.
Proc. 2006-8, 2006-1 I.R.B. 245, or the
current superseding revenue procedure.
Line 2a. Indicate whether this application is
for (1) a prototype traditional individual
retirement account or annuity under section
408(a) or 408(b); (2) a prototype Roth
individual retirement account or annuity
under section 408A; (3) a prototype SIMPLE
individual retirement account or annuity
under section 408(p); or (4) an employer or
employee association established individual
retirement account under section 408(c).

Line 2c. If you are amending your plan,
enter the file folder number, letter serial
number, and date from the latest opinion
letter you received for your plan.

Paperwork Reduction Act Notice
We ask for the information on this form to
carry out the Internal Revenue laws of the
United States. We need it to determine if
your prototype individual retirement
account or individual retirement annuity
meets the requirements of section 408(a),
408(b), 408(c), 408(p), or 408A. If you want
the IRS to issue an opinion letter, you are
required to give us the information.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB control
number. Books or records relating to a form
or its instructions must be retained as long
as their contents may become material in
the administration of any Internal Revenue
law. Generally, tax returns and return
information are confidential, as required by
Code section 6103.
The time needed to complete and file this
form will vary depending on individual
circumstances. The estimated average time is:
Recordkeeping
11 hr., 43 min.
Learning about the
law or the form
35 min.
Preparing and sending
the form to the IRS
49 min.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler,
we would be happy to hear from you. You
can write to the Internal Revenue Service,
Tax Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution
Ave. NW, IR-6406, Washington, DC 20224.
Do not send the form to this address.
Instead, see Where to file on this page.