State-chartered banks which have not been granted trust powers may act as the custodian of a Keogh (HR-10) type plan or an individual retirement account (IRA) under the following circumstances:

1. The self-employed person adopts the bank's master plan or a prototype plan approved by the Internal Revenue Service and deposits the monies with the bank as custodian and the duties of the custodian are limited to the deposits of these monies in a savings or time account;

2. The institution accepts the money deposited with it as custodian and invests these funds in a savings or time account; and

3. Such investment is expressly authorized by a provision of the plan or by a fiduciary (other than the bank or institution) who is expressly empowered by the plan to authorize such investments.

This Bureau will not require an application for trust powers for an institution to act in the situation described above. However, this Bureau should be furnished with a copy of any proposed master plan or prototype plan for our information.

Since the custodian will be required to furnish certain information regarding these custodial accounts, it is suggested that a separate control ledger or some other method of segregating these savings accounts be established.

Although the reporting requirements for these plans have not been established, there are Internal Revenue Service forms available from the District Director's offices which include Form 5305-A, Individual Retirement Custodial Account and Form 5306, Application for Approval of Prototype Individual Retirement Account.

Signed:	Richard J. Francis, Commissioner
Dated:	February 25, 1975