Proposed Class Exemption for Certain Transactions involving Persons Establishing Individual Retirement Accounts or Retirement Plans for Self-Employed Individuals

This document is about a proposed class exemption from certain prohibited transaction restrictions under the Internal Revenue Code for transactions involving individual retirement accounts (IRAs) and retirement plans for self-employed individuals (Keogh plans). The exemption would allow financial institutions to offer premiums, gifts, or other consideration to individuals establishing or contributing to these types of retirement accounts, provided certain conditions are met to protect the interests of the plan participants and their beneficiaries. The proposed exemption aims to facilitate the establishment of IRAs and Keogh plans while ensuring they serve their intended purpose of providing retirement savings.