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Obviously neither Mr. Thomson nor FAC was a bank; thus, we are
concerned only with whether Mr. Thomson may be deemed "such other
person" who could serve as a trustee for an IRA trust.
The regulations set forth extensive requirements in order for
a person to qualify as a nonbank trustee for an IRA trust. In this
respect, the prospective trustee must apply in writing to the
Commissioner and prove that the requirements provided in the
regulations are satisfied. Sec. 1.408-2(b)(2), Income Tax Regs.
The applicant must demonstrate: (1) Its ability to act within the
accepted rules of fiduciary conduct; (2) its experience and
competence with respect to accounting for the interests of a large
number of individuals (including calculating and allocating income
earned and paying out distributions to payees); (3) its experience
and competence with respect to other activities normally associated
with the handling of retirement funds; (4) the existence of
procedures for administering fiduciary powers and for the proper
auditing and investing of the funds; and (5) other evidence of the
applicant's ability to act as a trustee for an IRA. Secs. 1.401-
12(n), 1.408-2(b)(2)(ii), Income Tax Regs.7
7 Sec. 1.408-2(b), Income Tax Regs., provides that the
qualification of nonbank trustees is governed by the regulations
under sec. 401(d)(1). Par. (n) of sec. 1.401-12, Income Tax
Regs., which applies to nonbank trustees of pension and profit
sharing plans, was redesignated as par. (e) of sec. 1.408-2,
(continued...)
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