September 9, 2002

Financial Services Industry Newsletter

Strategies for Success

New IRA Rules: Outstanding Marketing Opportunity

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the subsequent technical corrections and final regulations, include changes to Individual Retirement Accounts that are the most comprehensive since 1986. With the release of the new Model IRA Forms, you must begin replacing and amending documents for all IRA customers. This is not simply a compliance event -- it's a fantastic marketing opportunity to talk to all your customers about the new benefits of IRA's.

First the bad news: bank systems need to be changed; you have to notify every customer of the new rules; most self employed and many small businesses will have to sign and return new plan documents; and some financial institutions will have to update prototype documents and submit them to the IRS for a new Opinion Letter.

Now the good news: you have to talk to every customer, and you have good news to tell them --

• Increased contribution limits
• Catch-up contributions for individuals age 50 and over
• Expanded rollover potential
• Changes in the Minimum Distribution Rules which permit distributions over a longer period than previously allowed

Clients are seeking stability from the turbulent stock markets, and financial institutions now have improved tools to attract and retain long term, low cost deposits. Banks not only need to create new documents and prepare their systems and operations -- they must also be ready to provide the customer service and sales support to take full advantage of this opportunity.

Do you have the right marketing and sales strategies in place? Do you have all the resources you need to implement the new regulations? Please contact us, we can help. Please call us at 800-565-6345 for a free consultation.

We have tools to help, whether you have 10 branches or 1,000. Please This e-mail address is being protected from spambots. You need JavaScript enabled to view it. for further information.