Simple IRA accounts and USA Patriot Act

My client was told by a person at Schwab that opening accounts on behalf of people in order to make timely deposits in compliance with the terms of their SIMPLE IRA arrangement with Schwab is a grey area and the IRS has not given clear guidance on it as it relates to USA PATRIOT. One supervisor at Schwab said she did not think the Schwab operations department would open the accounts if my client submitted applications on the individuals' behalf because of restrictions imposed by the USA PATRIOT Act (HR 3162). My client has not been able to contact three 2005 employees so that these three persons can set up the accounts themselves as they are no longer with the company. Non elective Simple IRA contributions need to be made for these three for 2005 by September 15, 2006. Has anyone else run up against this issue?

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Reply to
bm30003700
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No, but think of it this way. Simple IRA's are funded into employees' IRA, meaning they must first be established in order for any funding to be accomplished. No employee, no IRA. Hence no funding. ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

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