Common use of Deemed IRAs Clause in Contracts

Deemed IRAs. If the Employer’s Plan allows Participants to make Voluntary Employee Contributions, such Participant may make Voluntary Employee Contributions to the Participant’s Traditional or Xxxx XXX as elected on the Adoption Agreement under Basic Plan Document #01. Simplified Employee Pension Plans (SEPs) under Code Section 409(k) and SIMPLE IRAs under Code Section 408(p) may not be used as Deemed IRAs. The Plan may establish an annuity or a trust (whether or not separate from the Employer’s Plan Trust) for the designated IRA contributions of each Participant and any earnings properly allocable to the contributions. A separate recordkeeping account with respect to each such IRA will be maintained for each Participant. If Deemed IRA contributions are made to an annuity contract, such annuity contract shall be separate from the Employer’s Qualified Plan. Contributions may be held under a single annuity contract or under separate annuity contracts. Where a single annuity contract is used, separate accounting for the interest of each Participant is required.

Deemed IRAs. If the Employer’s Plan allows Participants to make Voluntary Employee Contributions, such Participant may make Voluntary Employee Contributions to the Participant’s Traditional or Xxxx Rxxx XXX as elected on the Adoption Agreement under Basic Plan Document #01. Simplified Employee Pension Plans (SEPs) under Code Section 409(k) and SIMPLE IRAs under Code Section 408(p) may not be used as Deemed IRAs. The Plan may establish an annuity or a trust (whether or not separate from the Employer’s Plan Trust) for the designated IRA contributions of each Participant and any earnings properly allocable to the contributions. A separate recordkeeping account with respect to each such IRA will be maintained for each Participant. If Deemed IRA contributions are made to an annuity contract, such annuity contract shall be separate from the Employer’s Qualified Plan. Contributions may be held under a single annuity contract or under separate annuity contracts. Where a single annuity contract is used, separate accounting for the interest of each Participant is required.