IRS Publishes Notice Allowing SEC Alternative for IRA Nonbank Trustee Applications

The IRS has issued a notice allowing carrying broker-dealers to demonstrate satisfaction of the SEC Net Capital and Customer Protection Rules instead of the adequacy of net worth requirement when applying to serve as nonbank trustees for Individual Retirement Accounts. This alternative method recognizes that SEC Rules 15c3-1 and 15c3-3 address the same core financial responsibility concerns as the nonbank trustee requirements under I.R.C. §408, including entity solvency and customer account protection. The notice provides procedures for existing nonbank trustees and new applicants who are carrying broker-dealers to use this alternative compliance demonstration. [IRS, Notice 2026-32, 05/21/26]

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