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F e d e r a l r e s e r v e Ba n k o f D a lla s DALLAS. TEXAS 75222 C i r c u l a r No. 75-71 May 30, 1975 TRUSTEES FOR RETIREMENT ACCOUNTS TO ALL STATE MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: The Board of G o v e r n o r s of the Fed eral R e s e r v e System a n n o u n c e d on May 21, 1975, th a t state m em ber b a n k s not e x e r c i s i n g t r u s t p o w e rs may act as t r u s t e e s of Individual R etirem en t A ccounts an d Self-Employed R e tire ment Plans in c e r ta i n c i r c u m s t a n c e s , w ithout p r i o r Board a p p r o v a l . T h e Employee R etirem en t Income S e c u rity Act of 1974 p ro v id e s th a t in d iv id u a ls not c o v ered by a n e m plo y e r re tir e m e n t p l a n , a s e lf employed re tir e m e n t p la n , o r a c h a r ita b l e a n n u i t y , may e s ta b lis h In d iv id ual R etirem ent A ccounts into w h ich th ey may d e p o s it , for re tir e m e n t p u r p o s e s , t a x - f r e e c o n trib u tio n s up to $1,500 y e a r l y . T h e Self-Employed Ind ivid u als R etirem ent Act of 1962 (Keogh Act) p ro v id e s the same b e n e fits , for c o n trib u tio n s u p to $7,500 a n n u a l ly , for self-em p lo y ed in d iv id u a ls an d th e i r em p lo yees. Both p la n s r e q u i r e th a t a b a n k , o r o th e r p e r s o n o r in stitution c a p a b le of a d m in is te rin g s u c h p la n s a c c o rd in g to the Act, be a p pointed t r u s t e e . State m em ber b a n k s p e rm itte d b y th is action of th e B oard to act as t r u s t e e s for s u c h r e tir e m e n t p la n s may in v e st th e s e fu n d s only in a s a v in g s a cc o u n t o r time d e p o sit of the b a n k . T h e a u th o rity is limited to cas e s w h e r e it is not c o n t r a r y to state law. The C om p tro ller of the C u r r e n c y re c e n tly g r a n t e d s im ilar a u th o rity to national b a n k s . Sincerely y o u rs , T . W. P l a n t F i r s t V ic e P r e s i d e n t This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
