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©2020 Ascensus, LLC
Traditional IRA Simplifier
INDIVIDUAL RETIREMENT ACCOUNT APPLICATION
PART 1. IRA OWNER
Name (First/MI/Last)
Address Line 1
Address Line 2
City/State/ZIP
Social Security Number
Date of Birth Phone
Email Address
Account Number
PART 2. IRA CUSTODIAN
To be completed by the IRA custodian
Name
Address Line 1
Address Line 2
City/State/ZIP
Phone Organization Number
This is an amendment to an existing IRA.
This IRA contains only simplified employee pension (SEP) plan assets.
PART 3. CONTRIBUTION INFORMATION
Contribution Amount Contribution Date
CONTRIBUTION TYPE (Select one)
Regular(Includes catch-up contributions)
Contribution for Tax Year
Rollover(Distribution from an IRA or eligible employer-sponsored retirement plan that is being deposited into this Traditional IRA)
By selecting this transaction, I irrevocably designate this contribution as a rollover.
Transfer(Direct movement of assets from a Traditional IRA or a SIMPLE IRA into this Traditional IRA)
Recharacterization(A nontaxable movement of a Roth IRA contribution into this Traditional IRA)
By selecting this transaction, I irrevocably designate this contribution as a recharacterization.
SEP Contribution(Contribution made under a SEP plan; SEP contributions are reported for the year in which the contribution is made)
IF YOU ARE REQUIRED TO TAKE A REQUIRED MINIMUM DISTRIBUTION THIS YEAR, COMPLETE THE FOLLOWING, IF APPLICABLE
(Checking any of the following will require adjusting your required minimum distribution.)
This is a rollover or transfer of assets removed last year. Date of Removal
This is a transfer from my deceased spouse’s Traditional IRA and the assets were removed from the IRA in any year after death.
The value of my portion of my deceased spouse’s IRA on December 31 of last year .
PART 4. INVESTMENT AND DEPOSIT INFORMATION
INVESTMENT INFORMATION (Complete this section as applicable.)
Investment Description Quantity or Amount Investment Number Term or Maturity Date Interest Rate
DEPOSIT METHOD
Cash or Check(If the contribution type is transfer, the check must be from a financial organization made payable to the custodian for this IRA.)
Internal Account
Account Number Type (e.g., checking, savings, IRA)
External Account (e.g., EFT, ACH, wire) (Additional documentation may be required and fees may apply.)
Name of Organization Sending the Assets Routing Number (Optional)
Account Number Type (e.g., checking, savings, IRA)
Deposit Taken by
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Name of IRA Owner , Account Number
PART 5. BENEFICIARY DESIGNATION
I designate that upon my death, the assets in this account be paid to the beneficiaries named below. The interest of any beneficiary that predeceases
me terminates completely, and the percentage share of any remaining beneficiaries will be increased on a pro rata basis. If no beneficiaries are named,
my estate will be my beneficiary.
I elect not to designate beneficiaries at this time and understand that I may designate beneficiaries at a later date.
PRIMARY BENEFICIARIES (The total percentage designated must equal 100%. If more than one beneficiary is designated and no percentages are
indicated, the beneficiaries will be deemed to own equal share percentages in the IRA.)
Name
Address
City/State/ZIP
Date of Birth Relationship
Tax ID (SSN/TIN) Percent Designated
Name
Address
City/State/ZIP
Date of Birth Relationship
Tax ID (SSN/TIN) Percent Designated
Name
Address
City/State/ZIP
Date of Birth Relationship
Tax ID (SSN/TIN) Percent Designated
Name
Address
City/State/ZIP
Date of Birth Relationship
Tax ID (SSN/TIN) Percent Designated
CONTINGENT BENEFICIARIES(The total percentage designated must equal 100%. If more than one beneficiary is designated and no percentages are
indicated, the beneficiaries will be deemed to own equal share percentages in the IRA. The balance in the account will be payable to these beneficiaries
if all primary beneficiaries have predeceased the IRA owner.)
Name
Address
City/State/ZIP
Date of Birth Relationship
Tax ID (SSN/TIN) Percent Designated
Name
Address
City/State/ZIP
Date of Birth Relationship
Tax ID (SSN/TIN) Percent Designated
Name
Address
City/State/ZIP
Date of Birth Relationship
Tax ID (SSN/TIN) Percent Designated
Name
Address
City/State/ZIP
Date of Birth Relationship
Tax ID (SSN/TIN) Percent Designated
Check here if additional beneficiaries are listed on an attached addendum. Total number of addendums attached to this IRA
PART 6. SPOUSAL CONSENT
Spousal consent should be considered if either the trust or the residence
of the IRA owner is located in a community or marital property state.
CURRENT MARITAL STATUS
I Am Not Married – I understand that if I become married in the
future, I should review the requirements for spousal consent.
I Am Married – I understand that if I choose to designate a primary
beneficiary other than or in addition to my spouse, my spouse should
sign below.
CONSENT OF SPOUSE
I am the spouse of the above-named IRA owner. I acknowledge that I have
received a fair and reasonable disclosure of my spouse’s property and
financial obligations. Because of the important tax consequences of giving
up my interest in this IRA, I have been advised to see a tax professional.
I hereby relinquish any interest that I may have in this IRA and consent to
the beneficiary designation indicated above. I assume full responsibility
for any adverse consequences that may result.
X
Signature of Spouse Date (mm/dd/yyyy)
X
Signature of Witness Date (mm/dd/yyyy)
PART 7. SIGNATURES
Important: Please read before signing.
I understand the eligibility requirements for the type of IRA contribution I am
making, and I state that I do qualify to make the contribution. I have received
a copy of the IRA Application, the 5305-A Custodial Account Agreement, the
Financial Disclosure, and the Disclosure Statement. I understand that the
terms and conditions that apply to this IRA are contained in this Application
and the Custodial Account Agreement. I agree to be bound by those terms
and conditions. Within seven days from the date I open this IRA I may revoke
it without penalty by mailing or delivering a written notice to the custodian.
I assume complete responsibility for
determining that I am eligible for an IRA each year I make a
contribution,
ensuring that all contributions I make are within the limits set forth
by the tax laws, and
the tax consequences of any contributions (including rollover
contributions) and distributions.
X
Signature of IRA Owner Date (mm/dd/yyyy)
X
Signature of Witness Date (mm/dd/yyyy)
X
Signature of Custodian Date (mm/dd/yyyy)
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©2020 Ascensus, LLC
INDIVIDUAL RETIREMENT CUSTODIAL ACCOUNT AGREEMENT
Form 5305-A under section 408(a) of the Internal Revenue Code. FORM (Rev. April 2017)
The depositor named on the application is establishing a Traditional
individual retirement account under section 408(a) to provide for his or
her retirement and for the support of his or her beneficiaries after death.
The custodian named on the application has given the depositor the
disclosure statement required by Regulations section 1.408-6.
The depositor has assigned the custodial account the sum indicated on
the application.
The depositor and the custodian make the following agreement:
ARTICLE I
Except in the case of a rollover contribution described in section 402(c),
403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), an employer contribution to
a simplified employee pension plan as described in section 408(k) or a
recharacterized contribution described in section 408A(d)(6), the
custodian will accept only cash contributions up to $5,500 per year for tax
years 2013 through 2017. For individuals who have reached the age of 50
by the end of the year, the contribution limit is increased to $6,500 per
year for tax years 2013 through 2017. For years after 2017, these limits
will be increased to reflect a cost-of-living adjustment, if any.
ARTICLE II
The depositor’s interest in the balance in the custodial account is
nonforfeitable.
ARTICLE III
1. No part of the custodial account funds may be invested in life insurance
contracts, nor may the assets of the custodial account be commingled
with other property except in a common trust fund or common
investment fund (within the meaning of section 408(a)(5)).
2. No part of the custodial account funds may be invested in collectibles
(within the meaning of section 408(m)) except as otherwise permitted
by section 408(m)(3), which provides an exception for certain gold,
silver, and platinum coins, coins issued under the laws of any state,
and certain bullion.
ARTICLE IV
1. Notwithstanding any provision of this agreement to the contrary, the
distribution of the depositor’s interest in the custodial account shall be
made in accordance with the following requirements and shall
otherwise comply with section 408(a)(6) and the regulations thereunder,
the provisions of which are herein incorporated by reference.
2. The depositor’s entire interest in the custodial account must be, or
begin to be, distributed not later than the depositor’s required
beginning date, April 1 following the calendar year in which the
depositor reaches age 70½. By that date, the depositor may elect, in a
manner acceptable to the custodian, to have the balance in the
custodial account distributed in: (a) A single sum or (b) Payments over
a period not longer than the life of the depositor or the joint lives of
the depositor and his or her designated beneficiary.
3. If the depositor dies before his or her entire interest is distributed to
him or her, the remaining interest will be distributed as follows:
(a) If the depositor dies on or after the required beginning date and:
(i) the designated beneficiary is the depositor’s surviving spouse,
the remaining interest will be distributed over the surviving
spouse’s life expectancy as determined each year until such
spouse’s death, or over the period in paragraph (a)(iii) below if
longer. Any interest remaining after the spouse’s death will be
distributed over such spouse’s remaining life expectancy as
determined in the year of the spouse’s death and reduced by
one for each subsequent year, or, if distributions are being
made over the period in paragraph (a)(iii) below, over such
period.
(ii) the designated beneficiary is not the depositor’s surviving
spouse, the remaining interest will be distributed over the
beneficiary’s remaining life expectancy as determined in the
year following the death of the depositor and reduced by one
for each subsequent year, or over the period in paragraph
(a)(iii) below if longer.
(iii) there is no designated beneficiary, the remaining interest will
be distributed over the remaining life expectancy of the
depositor as determined in the year of the depositor’s death
and reduced by one for each subsequent year.
(b) If the depositor dies before the required beginning date, the
remaining interest will be distributed in accordance with paragraph
(i) below or, if elected or there is no designated beneficiary, in
accordance with paragraph (ii) below.
(i) The remaining interest will be distributed in accordance with
paragraphs (a)(i) and (a)(ii) above (but not over the period in
paragraph (a)(iii), even if longer), starting by the end of the
calendar year following the year of the depositor’s death. If,
however, the designated beneficiary is the depositor’s surviving
spouse, then this distribution is not required to begin before
the end of the calendar year in which the depositor would
have reached age 70½. But, in such case, if the depositor’s
surviving spouse dies before distributions are required to
begin, then the remaining interest will be distributed in
accordance with paragraph (a)(ii) above (but not over the
period in paragraph (a)(iii), even if longer), over such spouse’s
designated beneficiary’s life expectancy, or in accordance with
paragraph (ii) below if there is no such designated beneficiary.
(ii) The remaining interest will be distributed by the end of the
calendar year containing the fifth anniversary of the depositor’s
death.
4. If the depositor dies before his or her entire interest has been
distributed and if the designated beneficiary is not the depositor’s
surviving spouse, no additional contributions may be accepted in the
account.
5. The minimum amount that must be distributed each year, beginning
with the year containing the depositor’s required beginning date, is
known as the “required minimum distribution” and is determined as
follows.
(a) The required minimum distribution under paragraph 2(b) for any
year, beginning with the year the depositor reaches age 70½, is the
depositor’s account value at the close of business on December 31
of the preceding year divided by the distribution period in the
uniform lifetime table in Regulations section 1.401(a)(9)-9.
However, if the depositor’s designated beneficiary is his or her
surviving spouse, the required minimum distribution for a year
shall not be more than the depositor’s account value at the close
of business on December 31 of the preceding year divided by the
number in the joint and last survivor table in Regulations section
1.401(a)(9)-9. The required minimum distribution for a year under
this paragraph (a) is determined using the depositor’s (or, if
applicable, the depositor and spouse’s) attained age (or ages) in
the year.
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(b) The required minimum distribution under paragraphs 3(a) and 3(b)
(i) for a year, beginning with the year following the year of the
depositor’s death (or the year the depositor would have reached
age 70½, if applicable under paragraph 3(b)(i)) is the account value
at the close of business on December 31 of the preceding year
divided by the life expectancy (in the single life table in Regulations
section 1.401(a)(9)-9) of the individual specified in such paragraphs
3(a) and 3(b)(i).
(c) The required minimum distribution for the year the depositor
reaches age 70½ can be made as late as April 1 of the following
year. The required minimum distribution for any other year must
be made by the end of such year.
6. The owner of two or more Traditional IRAs may satisfy the minimum
distribution requirements described above by taking from one
Traditional IRA the amount required to satisfy the requirement for
another in accordance with the regulations under section 408(a)(6).
ARTICLE V
1. The depositor agrees to provide the custodian with all information
necessary to prepare any reports required by section 408(i) and
Regulations sections 1.408-5 and 1.408-6.
2. The custodian agrees to submit to the Internal Revenue Service (IRS)
and depositor the reports prescribed by the IRS.
ARTICLE VI
Notwithstanding any other articles which may be added or incorporated,
the provisions of Articles I through III and this sentence will be controlling.
Any additional articles inconsistent with section 408(a) and the related
regulations will be invalid.
ARTICLE VII
This agreement will be amended as necessary to comply with the
provisions of the Code and the related regulations. Other amendments
may be made with the consent of the persons whose signatures appear
on the application.
ARTICLE VIII
8.01 Definitions – In this part of this agreement (Article VIII), the words
“you” and “your” mean the depositor. The words “we,” “us,” and
“our” mean the custodian. The word “Code” means the Internal
Revenue Code, and “regulations” means the Treasury regulations.
8.02 Notices and Change of Address – Any required notice regarding
this IRA will be considered effective when we send it to the
intended recipient at the last address that we have in our records.
Any notice to be given to us will be considered effective when we
actually receive it. You, or the intended recipient, must notify us of
any change of address.
8.03 Representations and Responsibilities – You represent and warrant
to us that any information you have given or will give us with
respect to this agreement is complete and accurate. Further, you
agree that any directions you give us or action you take will be
proper under this agreement, and that we are entitled to rely upon
any such information or directions. If we fail to receive directions
from you regarding any transaction, if we receive ambiguous
directions regarding any transaction, or if we, in good faith, believe
that any transaction requested is in dispute, we reserve the right to
take no action until further clarification acceptable to us is received
from you or the appropriate government or judicial authority. We
will not be responsible for losses of any kind that may result from
your directions to us or your actions or failures to act, and you
agree to reimburse us for any loss we may incur as a result of such
directions, actions, or failures to act. We will not be responsible for
any penalties, taxes, judgments, or expenses you incur in connection
with your IRA. We have no duty to determine whether your
contributions or distributions comply with the Code, regulations,
rulings, or this agreement.
We may permit you to appoint, through written notice acceptable
to us, an authorized agent to act on your behalf with respect to
this agreement (e.g., attorney-in-fact, executor, administrator,
investment manager), but we have no duty to determine the
validity of such appointment or any instrument appointing such
authorized agent. We will not be responsible for losses of any kind
that may result from directions, actions, or failures to act by your
authorized agent, and you agree to reimburse us for any loss we
may incur as a result of such directions, actions, or failures to act
by your authorized agent.
You will have 60 days after you receive any documents, statements,
or other information from us to notify us in writing of any errors or
inaccuracies reflected in these documents, statements, or other
information. If you do not notify us within 60 days, the documents,
statements, or other information will be deemed correct and
accurate, and we will have no further liability or obligation for such
documents, statements, other information, or the transactions
described therein.
By performing services under this agreement we are acting as your
agent. You acknowledge and agree that nothing in this agreement
will be construed as conferring fiduciary status upon us. We will not
be required to perform any additional services unless specifically
agreed to under the terms and conditions of this agreement, or as
required under the Code and the regulations promulgated
thereunder with respect to IRAs. You agree to indemnify and hold
us harmless for any and all claims, actions, proceedings, damages,
judgments, liabilities, costs, and expenses, including attorney’s fees
arising from or in connection with this agreement.
To the extent written instructions or notices are required under
this agreement, we may accept or provide such information in any
other form permitted by the Code or applicable regulations
including, but not limited to, electronic communication.
8.04 Disclosure of Account Information – We may use agents and/or
subcontractors to assist in administering your IRA. We may release
nonpublic personal information regarding your IRA to such
providers as necessary to provide the products and services made
available under this agreement, and to evaluate our business
operations and analyze potential product, service, or process
improvements.
8.05 Service Fees – We have the right to charge an annual service fee or
other designated fees (e.g., a transfer, rollover, or termination fee)
for maintaining your IRA. In addition, we have the right to be
reimbursed for all reasonable expenses, including legal expenses,
we incur in connection with the administration of your IRA. We
may charge you separately for any fees or expenses, or we may
deduct the amount of the fees or expenses from the assets in your
IRA at our discretion. We reserve the right to charge any additional
fee after giving you 30 days’ notice. Fees such as subtransfer agent
fees or commissions may be paid to us by third parties for assistance
in performing certain transactions with respect to this IRA.
Any brokerage commissions attributable to the assets in your IRA
will be charged to your IRA. You cannot reimburse your IRA for
those commissions.
8.06 Investment of Amounts in the IRA – You have exclusive responsibility
for and control over the investment of the assets of your IRA. All
transactions will be subject to any and all restrictions or limitations,
direct or indirect, that are imposed by our charter, articles of
incorporation, or bylaws; any and all applicable federal and state
laws and regulations; the rules, regulations, customs and usages of
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any exchange, market or clearing house where the transaction is
executed; our policies and practices; and this agreement. After
your death, your beneficiaries will have the right to direct the
investment of your IRA assets, subject to the same conditions that
applied to you during your lifetime under this agreement
(including, without limitation, Section 8.03 of this article). We will
have no discretion to direct any investment in your IRA. We
assume no responsibility for rendering investment advice with
respect to your IRA, nor will we offer any opinion or judgment to
you on matters concerning the value or suitability of any
investment or proposed investment for your IRA. In the absence of
instructions from you, or if your instructions are not in a form
acceptable to us, we will have the right to hold any uninvested
amounts in cash, and we will have no responsibility to invest
uninvested cash unless and until directed by you. We will not
exercise the voting rights and other shareholder rights with respect
to investments in your IRA unless you provide timely written
directions acceptable to us.
You will select the investment for your IRA assets from those
investments that we are authorized by our charter, articles of
incorporation, or bylaws to offer and do in fact offer for IRAs (e.g.,
term share accounts, passbook accounts, certificates of deposit,
money market accounts.)
8.07 Beneficiaries – If you die before you receive all of the amounts in
your IRA, payments from your IRA will be made to your
beneficiaries. We have no obligation to pay to your beneficiaries
until such time we are notified of your death by receiving a valid
death certificate.
You may designate one or more persons or entities as beneficiary
of your IRA. This designation can only be made on a form provided
by or acceptable to us, and it will only be effective when it is filed
with us during your lifetime. Each beneficiary designation you file
with us will cancel all previous designations. The consent of your
beneficiaries will not be required for you to revoke a beneficiary
designation. If you have designated both primary and contingent
beneficiaries and no primary beneficiary survives you, the
contingent beneficiaries will acquire the designated share of your
IRA. If you do not designate a beneficiary or if all of your primary
and contingent beneficiaries predecease you, your estate will be
the beneficiary.
A spouse beneficiary will have all rights as granted under the Code
or applicable regulations to treat your IRA as his or her own.
We may allow, if permitted by state law, an original IRA beneficiary
(the beneficiary who is entitled to receive distributions from an
inherited IRA at the time of your death) to name successor
beneficiaries for the inherited IRA. This designation can only be
made on a form provided by or acceptable to us, and it will only be
effective when it is filed with us during the original IRA beneficiary’s
lifetime. Each beneficiary designation form that the original IRA
beneficiary files with us will cancel all previous designations. The
consent of a successor beneficiary will not be required for the
original IRA beneficiary to revoke a successor beneficiary
designation. If the original IRA beneficiary does not designate a
successor beneficiary, his or her estate will be the successor
beneficiary. In no event will the successor beneficiary be able to
extend the distribution period beyond that required for the
original IRA beneficiary.
If we so choose, for any reason (e.g., due to limitations of our
charter or bylaws), we may require that a beneficiary of a deceased
IRA owner take total distribution of all IRA assets by December 31
of the year following the year of death.
8.08 Required Minimum Distributions – Your required minimum
distribution is calculated using the uniform lifetime table in
Regulations section 1.401(a)(9)-9. However, if your spouse is your
sole designated beneficiary and is more than 10 years younger
than you, your required minimum distribution is calculated each
year using the joint and last survivor table in Regulations section
1.401(a)(9)-9.
If you fail to request your required minimum distribution by your
required beginning date, we can, at our complete and sole
discretion, do any one of the following.
Make no distribution until you give us a proper withdrawal
request
Distribute your entire IRA to you in a single sum payment
Determine your required minimum distribution from your IRA
each year based on your life expectancy, calculated using the
uniform lifetime table in Regulations section 1.401(a)(9)-9, and
pay those distributions to you until you direct otherwise
We will not be liable for any penalties or taxes related to your
failure to take a required minimum distribution.
8.09 Termination of Agreement, Resignation, or Removal of Custodian –
Either party may terminate this agreement at any time by giving
written notice to the other. We can resign as custodian at any time
effective 30 days after we send written notice of our resignation to
you. Upon receipt of that notice, you must make arrangements to
transfer your IRA to another financial organization. If you do not
complete a transfer of your IRA within 30 days from the date we
send the notice to you, we have the right to transfer your IRA assets
to a successor IRA trustee or custodian that we choose in our sole
discretion, or we may pay your IRA to you in a single sum. We will
not be liable for any actions or failures to act on the part of any
successor trustee or custodian, nor for any tax consequences you
may incur that result from the transfer or distribution of your assets
pursuant to this section.
If this agreement is terminated, we may charge to your IRA a
reasonable amount of money that we believe is necessary to cover
any associated costs, including but not limited to one or more of
the following.
Any fees, expenses, or taxes chargeable against your IRA
Any penalties or surrender charges associated with the early
withdrawal of any savings instrument or other investment in
your IRA
If we are a nonbank custodian required to comply with Regulations
section 1.408-2(e) and we fail to do so or we are not keeping the
records, making the returns, or sending the statements as are
required by forms or regulations, the IRS may require us to
substitute another trustee or custodian.
We may establish a policy requiring distribution of the entire
balance of your IRA to you in cash or property if the balance of
your IRA drops below the minimum balance required under the
applicable investment or policy established.
8.10 Successor Custodian – If our organization changes its name,
reorganizes, merges with another organization (or comes under
the control of any federal or state agency), or if our entire
organization (or any portion that includes your IRA) is bought by
another organization, that organization (or agency) will
automatically become the trustee or custodian of your IRA, but
only if it is the type of organization authorized to serve as an IRA
trustee or custodian.
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8.11 Amendments – We have the right to amend this agreement at any
time. Any amendment we make to comply with the Code and
related regulations does not require your consent. You will be
deemed to have consented to any other amendment unless,
within 30 days from the date we send the amendment, you notify
us in writing that you do not consent.
8.12 Withdrawals or Transfers – All requests for withdrawal or transfer
will be in writing on a form provided by or acceptable to us. The
method of distribution must be specified in writing or in any other
method acceptable to us. The tax identification number of the
recipient must be provided to us before we are obligated to make
a distribution. Withdrawals will be subject to all applicable tax and
other laws and regulations, including but not limited to possible
early distribution penalty taxes, surrender charges, and withholding
requirements.
8.13 Transfers From Other Plans – We can receive amounts transferred
to this IRA from the trustee or custodian of another IRA. In
addition, we can accept rollovers of eligible rollover distributions
from employer-sponsored retirement plans as permitted by the
Code. We reserve the right not to accept any transfer or direct
rollover.
8.14 Liquidation of Assets – We have the right to liquidate assets in
your IRA if necessary to make distributions or to pay fees,
expenses, taxes, penalties, or surrender charges properly
chargeable against your IRA. If you fail to direct us as to which
assets to liquidate, we will decide, in our complete and sole
discretion, and you agree to not hold us liable for any adverse
consequences that result from our decision.
8.15 Restrictions on the Fund – Neither you nor any beneficiary may
sell, transfer, or pledge any interest in your IRA in any manner
whatsoever, except as provided by law or this agreement.
The assets in your IRA will not be responsible for the debts,
contracts, or torts of any person entitled to distributions under
this agreement.
8.16 What Law Applies – This agreement is subject to all applicable
federal and state laws and regulations. If it is necessary to apply
any state law to interpret and administer this agreement, the law
of our domicile will govern.
If any part of this agreement is held to be illegal or invalid, the
remaining parts will not be affected. Neither your nor our failure
to enforce at any time or for any period of time any of the
provisions of this agreement will be construed as a waiver of such
provisions, or your right or our right thereafter to enforce each
and every such provision.
GENERAL INSTRUCTIONS
Section references are to the Internal Revenue Code unless otherwise noted.
PURPOSE OF FORM
Form 5305-A is a model custodial account agreement that meets the
requirements of section 408(a). However, only Articles I through VII have
been reviewed by the IRS. A Traditional individual retirement account
(Traditional IRA) is established after the form is fully executed by both the
individual (depositor) and the custodian. To make a regular contribution
to a Traditional IRA for a year, the IRA must be established no later than
the due date of the individual’s income tax return for the tax year
(excluding extensions). This account must be created in the United States
for the exclusive benefit of the depositor and his or her beneficiaries.
Do not
file Form 5305-A with the IRS. Instead, keep it with your records.
For more information on IRAs, including the required disclosures the
custodian must give the depositor, see Pub. 590-A, Contributions to
Individual Retirement Arrangements (IRAs),
and Pub. 590-B, Distributions
from Individual Retirement Arrangements (IRAs).
DEFINITIONS
Custodian – The custodian must be a bank or savings and loan association,
as defined in section 408(n), or any person who has the approval of the
IRS to act as custodian.
Depositor – The depositor is the person who establishes the custodial
account.
TRADITIONAL IRA FOR NONWORKING SPOUSE
Form 5305-A may be used to establish the IRA custodial account for a
nonworking spouse.
Contributions to an IRA custodial account for a nonworking spouse must
be made to a separate IRA custodial account established by the
nonworking spouse.
SPECIFIC INSTRUCTIONS
Article IV – Distributions made under this article may be made in a single
sum, periodic payment, or a combination of both. The distribution option
should be reviewed in the year the depositor reaches age 70½ to ensure
that the requirements of section 408(a)(6) have been met.
Article VIII – Article VIII and any that follow it may incorporate additional
provisions that are agreed to by the depositor and custodian to complete
the agreement. They may include, for example, definitions, investment
powers, voting rights, exculpatory provisions, amendment and
termination, removal of the custodian, custodian’s fees, state law
requirements, beginning date of distributions, accepting only cash,
treatment of excess contributions, prohibited transactions with the
depositor, etc. Attach additional pages if necessary.
98 / 2300-C (Rev. 4/2020)
Page 7 of 15
©2020 Ascensus, LLC
DISCLOSURE STATEMENT
RIGHT TO REVOKE YOUR IRA
You have the right to revoke your IRA within seven days of the receipt of
the disclosure statement. If revoked, you are entitled to a full return of
the contribution you made to your IRA. The amount returned to you
would not include an adjustment for such items as sales commissions,
administrative expenses, or fluctuation in market value. You may make
this revocation only by mailing or delivering a written notice to the
custodian at the address listed on the application.
If you send your notice by first class mail, your revocation will be deemed
mailed as of the postmark date.
If you have any questions about the procedure for revoking your IRA,
please call the custodian at the telephone number listed on the application.
REQUIREMENTS OF AN IRA
A. Cash Contributions – Your contribution must be in cash, unless it is a
rollover contribution.
B. Maximum Contribution – The total amount you may contribute to an
IRA for any taxable year cannot exceed the lesser of 100 percent of
your compensation or $6,000 for 2019 and 2020, with possible cost-
of-living adjustments each year thereafter. If you also maintain a Roth
IRA (i.e., an IRA subject to the limits of Internal Revenue Code Section
(IRC Sec.) 408A), the maximum contribution to your Traditional IRAs is
reduced by any contributions you make to your Roth IRAs. Your total
annual contribution to all Traditional IRAs and Roth IRAs cannot
exceed the lesser of the dollar amounts described above or
100 percent of your compensation.
C. Contribution Eligibility – For tax years beginning before 2020, you are
eligible to make a regular contribution to your IRA if you have
compensation and have not attained age 70½ by the end of the
taxable year for which the contribution is made. For 2020 and later
tax years, you may make a regular contribution to your IRA at any age
if you have compensation.
D. Catch-Up Contributions – If you are age 50 or older by the close of the
taxable year, you may make an additional contribution to your IRA.
The maximum additional contribution is $1,000 per year.
E. Nonforfeitability – Your interest in your IRA is nonforfeitable.
F. Eligible Custodians – The custodian of your IRA must be a bank,
savings and loan association, credit union, or a person or entity
approved by the Secretary of the Treasury.
G. Commingling Assets – The assets of your IRA cannot be commingled
with other property except in a common trust fund or common
investment fund.
H. Life Insurance – No portion of your IRA may be invested in life
insurance contracts.
I. Collectibles – You may not invest the assets of your IRA in collectibles
(within the meaning of IRC Sec. 408(m)). A collectible is defined as any
work of art, rug or antique, metal or gem, stamp or coin, alcoholic
beverage, or other tangible personal property specified by the Internal
Revenue Service (IRS). However, specially minted United States gold
and silver coins, and certain state-issued coins are permissible
investments. Platinum coins and certain gold, silver, platinum, or
palladium bullion (as described in IRC Sec. 408(m)(3)) are also
permitted as IRA investments.
J. Required Minimum Distributions – You are required to take minimum
distributions from your IRA at certain times in accordance with
Treasury Regulation 1.408-8. Below is a summary of the IRA distribution
rules.
1. If you were born before July 1, 1949, you are required to take a
minimum distribution from your IRA for the year in which you reach
age 70½ and for each year thereafter. You must take your first
distribution by your required beginning date, which is April 1 of the
year following the year you attain age 70½. If you were born on or
after July 1, 1949, you are required to take a minimum distribution
from your IRA for the year in which you reach age 72 and for each
year thereafter. You must take your first distribution by your
required beginning date, which is April 1 of the year following the
year you attain age 72. The minimum distribution for any taxable
year is equal to the amount obtained by dividing the account
balance at the end of the prior year by the applicable divisor.
2. The applicable divisor generally is determined using the Uniform
Lifetime Table provided by the IRS. If your spouse is your sole
designated beneficiary for the entire calendar year, and is more
than 10 years younger than you, the required minimum distribution
is determined each year using the actual joint life expectancy of
you and your spouse obtained from the Joint Life Expectancy Table
provided by the IRS, rather than the life expectancy divisor from
the Uniform Lifetime Table.
We reserve the right to do any one of the following by your
required beginning date.
(a) Make no distribution until you give us a proper withdrawal
request
(b) Distribute your entire IRA to you in a single sum payment
(c) Determine your required minimum distribution each year
based on your life expectancy calculated using the Uniform
Lifetime Table, and pay those distributions to you until you
direct otherwise
If you fail to remove a required minimum distribution, an additional
penalty tax of 50 percent is imposed on the amount of the required
minimum distribution that should have been taken but was not.
You must file IRS Form 5329 along with your income tax return to
report and remit any additional taxes to the IRS.
K. Beneficiary Distributions – Upon your death, your beneficiaries are
required to take distributions according to IRC Sec. 401(a)(9) and
Treasury Regulation 1.408-8. These requirements are described below.
1. Death of IRA Owner Before January 1, 2020 – Your designated
beneficiary is determined based on the beneficiaries designated as
of the date of your death, who remain your beneficiaries as of
September 30 of the year following the year of your death.
If you die on or after your required beginning date, distributions
must be made to your beneficiaries over the longer of the single life
expectancy of your designated beneficiaries, or your remaining life
expectancy. If a beneficiary other than a person or qualified trust as
defined in the Treasury Regulations is named, you will be treated as
having no designated beneficiary of your IRA for purposes of
determining the distribution period. If there is no designated
beneficiary of your IRA, distributions will commence using your
single life expectancy, reduced by one in each subsequent year.
If you die before your required beginning date, the entire amount
remaining in your account will, at the election of your designated
beneficiaries, either
(a) be distributed by December 31 of the year containing the fifth
anniversary of your death, or
(b) be distributed over the remaining life expectancy of your
designated beneficiaries.
98 / 2300-C (Rev. 4/2020)
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If your spouse is your sole designated beneficiary, he or she must
elect either option (a) or (b) by the earlier of December 31 of the
year containing the fifth anniversary of your death, or December 31
of the year life expectancy payments would be required to begin.
Your designated beneficiaries, other than a spouse who is the sole
designated beneficiary, must elect either option (a) or (b) by
December 31 of the year following the year of your death. If no
election is made, distribution will be calculated in accordance with
option (b). In the case of distributions under option (b), distributions
must commence by December 31 of the year following the year of
your death. Generally, if your spouse is the designated beneficiary,
distributions need not commence until December 31 of the year
you would have attained age 72 (age 70½ if you would have
attained age 70½ before 2020), if later. If a beneficiary other than a
person or qualified trust as defined in the Treasury Regulations is
named, you will be treated as having no designated beneficiary of
your IRA for purposes of determining the distribution period. If
there is no designated beneficiary of your IRA, the entire IRA must
be distributed by December 31 of the year containing the fifth
anniversary of your death.
2. Death of IRA Owner On or After January 1, 2020 – The entire
amount remaining in your account will generally be distributed by
December 31 of the year containing the tenth anniversary of your
death unless you have an eligible designated beneficiary or you
have no designated beneficiary for purposes of determining a
distribution period. This requirement applies to beneficiaries
regardless of whether you die before, on, or after your required
beginning date.
If your beneficiary is an eligible designated beneficiary, the entire
amount remaining in your account may be distributed (in
accordance with the Treasury Regulations) over the remaining life
expectancy of your eligible designated beneficiary (or over a period
not extending beyond the life expectancy of such beneficiary).
An eligible designated beneficiary is any designated beneficiary
who is
your surviving spouse,
your child who has not reached the age of majority,
disabled (A physician must determine that your impairment
can be expected to result in death or to be of long, continued,
and indefinite duration.),
an individual who is not more than 10 years younger than you, or
chronically ill (A chronically ill individual is someone who (1) is
unable to perform (without substantial assistance from another
individual) at least two activities of daily living for an indefinite
period due to a loss of functional capacity, (2) has a level of
disability similar to the level of disability described above
requiring assistance with daily living based on loss of functional
capacity, or (3) requires substantial supervision to protect the
individual from threats to health and safety due to severe
cognitive impairment.)
Note that certain trust beneficiaries (e.g., certain trusts for disabled
and chronically ill individuals) may take distribution of the entire
amount remaining in your account over the remaining life
expectancy of the trust beneficiary.
Generally, life expectancy distributions to an eligible designated
beneficiary must commence by December 31 of the year following
the year of your death. However, if your spouse is the eligible
designated beneficiary, distributions need not commence until
December 31 of the year you would have attained age 72, if later.
If your eligible designated beneficiary is your minor child, life
expectancy payments must begin by December 31 of the year
following the year of your death and continue until the child
reaches the age of majority. Once the age of majority is reached,
the beneficiary will have 10 years to deplete the account.
If a beneficiary other than a person (e.g., your estate, a charity, or
a certain type of trust) is named, you will be treated as having no
designated beneficiary of your IRA for purposes of determining the
distribution period. If you die before your required beginning date
and there is no designated beneficiary of your IRA, the entire IRA
must be distributed by December 31 of the year containing the fifth
anniversary of your death. If you die on or after your required
beginning date and there is no designated beneficiary of your IRA,
distributions will commence using your single life expectancy,
reduced by one in each subsequent year.
A spouse who is the sole designated beneficiary of your entire IRA will
be deemed to elect to treat your IRA as his or her own by either (1)
making contributions to your IRA or (2) failing to timely remove a
required minimum distribution from your IRA. Regardless of whether
or not the spouse is the sole designated beneficiary of your IRA, a
spouse beneficiary may roll over his or her share of the assets to his
or her own IRA.
If we so choose, for any reason (e.g., due to limitations of our charter
or bylaws), we may require that a beneficiary of a deceased IRA owner
take total distribution of all IRA assets by December 31 of the year
following the year of death.
If your beneficiary fails to remove a required minimum distribution
after your death, an additional penalty tax of 50 percent is imposed
on the amount of the required minimum distribution that should have
been taken but was not. Your beneficiary must file IRS Form 5329
along with his or her income tax return to report and remit any
additional taxes to the IRS.
L. Qualifying Longevity Annuity Contracts and RMDs – A qualifying
longevity annuity contract (QLAC) is a deferred annuity contract that,
among other requirements, must guarantee lifetime income starting
no later than age 85. The total premiums paid to QLACs in your IRAs
must not exceed 25 percent (up to $125,000) of the combined value
of your IRAs (excluding Roth IRAs). The $125,000 limit is subject to
cost-of-living adjustments each year.
When calculating your RMD, you may reduce the prior year end
account value by the value of QLACs that your IRA holds as investments.
For more information on QLACs, you may wish to refer to the IRS
website at www.irs.gov.
M. Waiver of 2020 RMD – In spite of the general rules described above,
if you are an IRA owner age 70½ or older, you are not required to
remove an RMD for calendar year 2020. This RMD waiver also applies
to IRA owners who attained age 70½ in 2019 but did not take their
first RMD before January 1, 2020. In addition, no beneficiary life
expectancy payments are required for calendar year 2020. If the five-
year rule applies to an IRA with respect to any decedent, the five-year
period is determined without regard to calendar year 2020. For
example, if an IRA owner died in 2017, the beneficiary’s five-year
period ends in 2023 instead of 2022.
INCOME TAX CONSEQUENCES OF ESTABLISHING AN IRA
A. IRA Deductibility – If you are eligible to contribute to your IRA, the
amount of the contribution for which you may take a tax deduction
will depend upon whether you (or, in some cases, your spouse) are an
active participant in an employer-sponsored retirement plan. If you
(and your spouse, if married) are not an active participant, your entire
IRA contribution will be deductible. If you are an active participant (or
are married to an active participant), the deductibility of your IRA
contribution will depend on your modified adjusted gross income
(MAGI) and your tax filing status for the tax year for which the
contribution was made. MAGI is determined on your income tax return
using your adjusted gross income but disregarding any deductible IRA
contribution and certain other deductions and exclusions.
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Definition of Active Participant. Generally, you will be an active
participant if you are covered by one or more of the following
employer-sponsored retirement plans.
1. Qualified pension, profit sharing, 401(k), or stock bonus plan
2. Qualified annuity plan of an employer
3. Simplified employee pension (SEP) plan
4. Retirement plan established by the federal government, a state, or a
political subdivision (except certain unfunded deferred compensation
plans under IRC Sec. 457)
5. Tax-sheltered annuity for employees of certain tax-exempt
organizations or public schools
6. Plan meeting the requirements of IRC Sec. 501(c)(18)
7. Savings incentive match plan for employees of small employers
(SIMPLE) IRA plan or a SIMPLE 401(k) plan
If you do not know whether your employer maintains one of these
plans or whether you are an active participant in a plan, check with
your employer or your tax advisor. Also, the IRS Form W-2, Wage and
Tax Statement, that you receive at the end of the year from your
employer will indicate whether you are an active participant.
If you are an active participant, are single, and have MAGI within the
applicable phase-out range listed below, the deductible amount of your
contribution is determined as follows. (1) Begin with the appropriate
phase-out range maximum for the applicable year (specified below)
and subtract your MAGI; (2) divide this total by the difference between
the phase-out maximum and minimum; and (3) multiply this number by
the maximum allowable contribution for the applicable year, including
catch-up contributions if you are age 50 or older. The resulting figure
will be the maximum IRA deduction you may take. For example, if you
are age 30 with MAGI of $66,000 in 2020, your maximum deductible
contribution is $5,400 (the 2020 phase-out range maximum of $75,000
minus your MAGI of $66,000, divided by the difference between the
maximum and minimum phase-out range limits of $10,000, and
multiplied by the contribution limit of $6,000).
If you are an active participant, are married to an active participant
and you file a joint income tax return, and have MAGI within the
applicable phase-out range listed below, the deductible amount of
your contribution is determined as follows. (1) Begin with the
appropriate phase-out maximum for the applicable year (specified
below) and subtract your MAGI; (2) divide this total by the difference
between the phase-out range maximum and minimum; and (3)
multiply this number by the maximum allowable contribution for the
applicable year, including catch-up contributions if you are age 50 or
older. The resulting figure will be the maximum IRA deduction you may
take. For example, if you are age 30 with MAGI of $107,000 in 2020,
your maximum deductible contribution is $5,100 (the 2020 phase-out
maximum of $124,000 minus your MAGI of $107,000, divided by the
difference between the maximum and minimum phase-out limits of
$20,000, and multiplied by the contribution limit of $6,000).
If you are an active participant, are married and you file a separate
income tax return, your MAGI phase-out range is generally $0
$10,000.
However, if you lived apart for the entire tax year, you are treated as a
single filer.
Tax Year
Joint Filers
Phase-Out Range*
Single Taxpayers
Phase-Out Range*
(minimum)(maximum) (minimum)(maximum)
2013 $95,000
115,000 $59,000 69,000
2014 $96,000
116,000 $60,000 70,000
2015 $98,000
118,000 $61,000 71,000
2016 $98,000
118,000 $61,000 71,000
2017 $99,000
119,000 $62,000 72,000
2018 $101,000
121,000 $63,000 73,000
2019 $103,000
123,000 $64,000 74,000
2020 $104,000
124,000 $65,000 75,000
*MAGI limits are subject to cost-of-living adjustments each year.
The MAGI phase-out range for an individual that is not an active
participant, but is married to an active participant, is $193,000
$203,000
(for 2019) and $196,000
$206,000 (for 2020). This limit is also subject
to cost-of-living increases for tax years after 2020. If you are not an
active participant in an employer-sponsored retirement plan, are
married to someone who is an active participant, and you file a joint
income tax return with MAGI between the applicable phase-out range
for the year, your maximum deductible contribution is determined as
follows. (1) Begin with the appropriate MAGI phase-out maximum for
the year and subtract your MAGI; (2) divide this total by the difference
between the phase-out range maximum and minimum; and (3) multiply
this number by the maximum allowable contribution for the applicable
year, including catch-up contributions if you are age 50 or older. The
resulting figure will be the maximum IRA deduction you may take.
You must round the resulting deduction to the next highest $10 if the
number is not a multiple of 10. If your resulting deduction is between
$0 and $200, you may round up to $200.
B. Contribution Deadline – The deadline for making an IRA contribution
is your tax return due date (not including extensions). You may
designate a contribution as a contribution for the preceding taxable
year in a manner acceptable to us. For example, if you are a calendar-
year taxpayer and you make your IRA contribution on or before your
tax filing deadline, your contribution is considered to have been made
for the previous tax year if you designate it as such.
If you are a member of the Armed Forces serving in a combat zone,
hazardous duty area, or contingency operation, you may have an
extended contribution deadline of 180 days after the last day served
in the area. In addition, your contribution deadline for a particular tax
year is also extended by the number of days that remained to file that
year’s tax return as of the date you entered the combat zone. This
additional extension to make your IRA contribution cannot exceed the
number of days between January 1 and your tax filing deadline, not
including extensions.
C. Tax Credit for Contributions – You may be eligible to receive a tax
credit for your Traditional IRA contributions. This credit will be allowed
in addition to any tax deduction that may apply, and may not exceed
$1,000 in a given year. You may be eligible for this tax credit if you are
age 18 or older as of the close of the taxable year,
not a dependent of another taxpayer, and
not a full-time student.
The credit is based upon your income (see chart below), and will range
from 0 to 50 percent of eligible contributions. In order to determine
the amount of your contributions, add all of the contributions made to
your Traditional IRA and reduce these contributions by any distributions
that you have taken during the testing period. The testing period
begins two years prior to the year for which the credit is sought and
ends on the tax return due date (including extensions) for the year for
which the credit is sought. In order to determine your tax credit,
multiply the applicable percentage from the chart below by the
amount of your contributions that do not exceed $2,000.
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2019 Adjusted Gross Income*
Applicable
Percentage
Joint
Return
Head of a
Household
All Other
Cases
$1
38,500 $1 28,875 $1 19,250 50
$38,501
41,500 $28,876 31,125 $19,251 20,750 20
$41,501
64,000 $31,126 48,000 $20,751 32,000 10
Over $64,000 Over $48,000 Over $32,000 0
2020 Adjusted Gross Income*
Applicable
Percentage
Joint
Return
Head of a
Household
All Other
Cases
$1
39,000 $1 29,250 $1 19,500 50
$39,001
42,500 $29,251 31,875 $19,501 21,250 20
$42,501
65,000 $31,876 48,750 $21,251 32,500 10
Over $65,000 Over $48,750 Over $32,500 0
*Adjusted gross income (AGI) includes foreign earned income and
income from Guam, America Samoa, North Mariana Islands, and Puerto
Rico. AGI limits are subject to cost-of-living adjustments each year.
D. Excess Contributions – An excess contribution is any amount that is
contributed to your IRA that exceeds the amount that you are eligible
to contribute. If the excess is not corrected timely, an additional
penalty tax of six percent will be imposed upon the excess amount.
The procedure for correcting an excess is determined by the timeliness
of the correction as identified below.
1. Removal Before Your Tax Filing Deadline. An excess contribution
may be corrected by withdrawing the excess amount, along with
the earnings attributable to the excess, before your tax filing
deadline, including extensions, for the year for which the excess
contribution was made. An excess withdrawn under this method is
not taxable to you, but you must include the earnings attributable
to the excess in your taxable income in the year in which the
contribution was made. The six percent excess contribution
penalty tax will be avoided.
2. Removal After Your Tax Filing Deadline. If you are correcting an
excess contribution after your tax filing deadline, including
extensions, remove only the amount of the excess contribution.
The six percent excess contribution penalty tax will be imposed on
the excess contribution for each year it remains in the IRA. An
excess withdrawal under this method will only be taxable to you if
the total contributions made in the year of the excess exceed the
annual applicable contribution limit.
3. Carry Forward to a Subsequent Year. If you do not withdraw the
excess contribution, you may carry forward the contribution for a
subsequent tax year. To do so, you under-contribute for that tax
year and carry the excess contribution amount forward to that
year on your tax return. The six percent excess contribution
penalty tax will be imposed on the excess amount for each year
that it remains as an excess contribution at the end of the year.
You must file IRS Form 5329 along with your income tax return to
report and remit any additional taxes to the IRS.
E. Tax-Deferred Earnings – The investment earnings of your IRA are not
subject to federal income tax until distributions are made (or, in
certain instances, when distributions are deemed to be made).
F. Nondeductible Contributions – You may make nondeductible
contributions to your IRA to the extent that deductible contributions
are not allowed. The sum of your deductible and nondeductible IRA
contributions cannot exceed your contribution limit (the lesser of the
allowable contribution limit described previously, or 100 percent of
compensation). You may elect to treat deductible IRA contributions as
nondeductible contributions.
If you make nondeductible contributions for a particular tax year, you
must report the amount of the nondeductible contribution along with
your income tax return using IRS Form 8606. Failure to file IRS Form
8606 will result in a $50 per failure penalty.
If you overstate the amount of designated nondeductible contributions
for any taxable year, you are subject to a $100 penalty unless
reasonable cause for the overstatement can be shown.
G. Taxation of Distributions – The taxation of IRA distributions depends
on whether or not you have ever made nondeductible IRA
contributions. If you have only made deductible contributions, all IRA
distribution amounts will be included in income.
If you have ever made nondeductible contributions to any IRA, the
following formula must be used to determine the amount of any IRA
distribution excluded from income.
(Aggregate Nondeductible Contributions)
x (AmountWithdrawn)
––––––––––––––––––––––––––––––––––= AmountExcludedFromIncome
Aggregate IRA Balance
NOTE: Aggregate nondeductible contributions include all nondeductible
contributions made by you through the end of the year of the
distribution that have not previously been withdrawn and excluded
from income. Also note that the aggregate IRA balance includes the
total balance of all of your Traditional and SIMPLE IRAs as of the end of
the year of distribution and any distributions occurring during the year.
H. Income Tax Withholding – Any withdrawal from your IRA is subject to
federal income tax withholding. You may, however, elect not to have
withholding apply to your IRA withdrawal. If withholding is applied to
your withdrawal, not less than 10 percent of the amount withdrawn
must be withheld.
I. Early Distribution Penalty Tax – If you receive an IRA distribution
before you attain age 59½, an additional early distribution penalty tax
of 10 percent will apply to the taxable amount of the distribution unless
one of the following exceptions apply. 1) Death. After your death,
payments made to your beneficiary are not subject to the 10 percent
early distribution penalty tax. 2) Disability. If you are disabled at the
time of distribution, you are not subject to the additional 10 percent
early distribution penalty tax. In order to be disabled, a physician must
determine that your impairment can be expected to result in death or
to be of long, continued, and indefinite duration. 3) Substantially equal
periodic payments. You are not subject to the additional 10 percent
early distribution penalty tax if you are taking a series of substantially
equal periodic payments (at least annual payments) over your life
expectancy or the joint life expectancy of you and your beneficiary. You
must continue these payments for the longer of five years or until you
reach age 59½. 4) Unreimbursed medical expenses. If you take
payments to pay for unreimbursed medical expenses that exceed a
specified percentage of your adjusted gross income, you will not be
subject to the 10 percent early distribution penalty tax. For further
detailed information and effective dates you may obtain IRS Publication
590-B, Distributions from Individual Retirement Arrangements (IRAs),
from the IRS. The medical expenses may be for you, your spouse, or
any dependent listed on your tax return. 5) Health insurance premiums.
If you are unemployed and have received unemployment compensation
for 12 consecutive weeks under a federal or state program, you may
take payments from your IRA to pay for health insurance premiums
without incurring the 10 percent early distribution penalty tax.
6) Higher education expenses. Payments taken for certain qualified
higher education expenses for you, your spouse, or the children or
grandchildren of you or your spouse, will not be subject to the
10 percent early distribution penalty tax. 7) First-time homebuyer. You
may take payments from your IRA to use toward qualified acquisition
costs of buying or building a principal residence. The amount you may
take for this reason may not exceed a lifetime maximum of $10,000.
The payment must be used for qualified acquisition costs within
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120 days of receiving the distribution. 8) IRS levy. Payments from your
IRA made to the U.S. government in response to a federal tax levy are
not subject to the 10 percent early distribution penalty tax. 9) Qualified
reservist distributions. If you are a qualified reservist member called to
active duty for more than 179 days or an indefinite period, the
payments you take from your IRA during the active duty period are not
subject to the 10 percent early distribution penalty tax. 10) Qualified
birth or adoption. Payments from your IRA for the birth of your child
or the adoption of an eligible adoptee will not be subject to the 10
percent early distribution penalty tax if the distribution is taken during
the one-year period beginning on the date of birth of your child or the
date on which your legal adoption of an eligible adoptee is finalized.
An eligible adoptee means any individual (other than your spouse’s
child) who has not attained age 18 or is physically or mentally incapable
of self-support. The aggregate amount you may take for this reason
may not exceed $5,000 for each birth or adoption.
You must file IRS Form 5329 along with your income tax return to the
IRS to report and remit any additional taxes or to claim a penalty tax
exception.
J. Rollovers and Conversions – Your IRA may be rolled over to another
IRA, SIMPLE IRA, or an eligible employer-sponsored retirement plan of
yours, may receive rollover contributions, or may be converted to a
Roth IRA, provided that all of the applicable rollover and conversion
rules are followed. Rollover is a term used to describe a movement of
cash or other property to your IRA from another IRA, or from your
employer’s qualified retirement plan, 403(a) annuity, 403(b) tax-
sheltered annuity, 457(b) eligible governmental deferred compensation
plan, or federal Thrift Savings Plan. The amount rolled over is not
subject to taxation or the additional 10 percent early distribution
penalty tax. Conversion is a term used to describe the movement of
Traditional IRA assets to a Roth IRA. A conversion generally is a taxable
event. The general rollover and conversion rules are summarized
below. These transactions are often complex. If you have any questions
regarding a rollover or conversion, please see a competent tax advisor.
1. Traditional IRA-to-Traditional IRA Rollovers. Assets distributed
from your Traditional IRA may be rolled over to the same Traditional
IRA or another Traditional IRA of yours if the requirements of IRC
Sec. 408(d)(3) are met. A proper IRA-to-IRA rollover is completed if
all or part of the distribution is rolled over not later than 60 days
after the distribution is received. In the case of a distribution for a
first-time homebuyer where there was a delay or cancellation of the
purchase, the 60-day rollover period may be extended to 120 days.
You are permitted to roll over only one distribution from an IRA
(Traditional, Roth, or SIMPLE) in a 12-month period, regardless of
the number of IRAs you own. A distribution may be rolled over to
the same IRA or to another IRA that is eligible to receive the
rollover. For more information on rollover limitations, you may
wish to obtain IRS Publication 590-B, Distributions from Individual
Retirement Arrangements (IRAs), from the IRS or refer to the IRS
website at www.irs.gov.
2. SIMPLE IRA-to-Traditional IRA Rollovers. Assets distributed from
your SIMPLE IRA may be rolled over to your Traditional IRA without
IRS penalty tax provided two years have passed since you first
participated in a SIMPLE IRA plan sponsored by your employer. As
with Traditional IRA-to-Traditional IRA rollovers, the requirements
of IRC Sec. 408(d)(3) must be met. A proper SIMPLE IRA-to-IRA
rollover is completed if all or part of the distribution is rolled over
not later than 60 days after the distribution is received.
You are permitted to roll over only one distribution from an IRA
(Traditional, Roth, or SIMPLE) in a 12-month period, regardless of
the number of IRAs you own. A distribution may be rolled over to
the same IRA or to another IRA that is eligible to receive the
rollover. For more information on rollover limitations, you may
wish to obtain IRS Publication 590-B, Distributions from Individual
Retirement Arrangements (IRAs), from the IRS or refer to the IRS
website at www.irs.gov.
3. Employer-Sponsored Retirement Plan-to-Traditional IRA Rollovers.
You may roll over, directly or indirectly, any eligible rollover
distribution from an eligible employer-sponsored retirement plan.
An eligible rollover distribution is defined generally as any
distribution from a qualified retirement plan, 403(a) annuity, 403(b)
tax-sheltered annuity, 457(b) eligible governmental deferred
compensation plan, or federal Thrift Savings Plan unless it is a
required minimum distribution, hardship distribution, part of a
certain series of substantially equal periodic payments, corrective
distributions of excess contributions, excess deferrals, excess annual
additions and any income allocable to the excess, deemed loan
distribution, dividends on employer securities, the cost of life
insurance coverage, or a distribution of Roth elective deferrals from
a 401(k), 403(b), governmental 457(b), or federal Thrift Savings Plan.
If you elect to receive your rollover distribution prior to placing it
in an IRA, thereby conducting an indirect rollover, your plan
administrator generally will be required to withhold 20 percent of
your distribution as a payment of income taxes. When completing
the rollover, you may make up out of pocket the amount withheld,
and roll over the full amount distributed from your employer-
sponsored retirement plan. To qualify as a rollover, your eligible
rollover distribution generally must be rolled over to your IRA not
later than 60 days after you receive the distribution. In the case of
a plan loan offset due to plan termination or severance from
employment, the deadline for completing the rollover is your tax
return due date (including extensions) for the year in which the
offset occurs. Alternatively, you may claim the withheld amount as
income, and pay the applicable income tax, and if you are under
age 59½, the 10 percent early distribution penalty tax (unless an
exception to the penalty applies).
As an alternative to the indirect rollover, your employer generally
must give you the option to directly roll over your employer-
sponsored retirement plan balance to an IRA. If you elect the
direct rollover option, your eligible rollover distribution will be
paid directly to the IRA (or other eligible employer-sponsored
retirement plan) that you designate. The 20 percent withholding
requirements do not apply to direct rollovers.
4. Beneficiary Rollovers From Employer-Sponsored Retirement Plans.
If you are a spouse or nonspouse beneficiary of a deceased
employer-sponsored retirement plan participant, or the trustee of
an eligible type of trust named as beneficiary of such participant,
you may directly roll over inherited assets from a qualified retirement
plan, 403(a) annuity, 403(b) tax-sheltered annuity, or 457(b) eligible
governmental deferred compensation plan to an inherited IRA, as
permitted by the IRS. The IRA must be maintained as an inherited
IRA, subject to the beneficiary distribution requirements.
5. Traditional IRA-to-SIMPLE IRA Rollovers. Assets distributed from
your Traditional IRA may be rolled over to a SIMPLE IRA if the
requirements of IRC Sec. 408(d)(3) are met and two years have
passed since you first participated in a SIMPLE IRA plan sponsored
by your employer. A proper Traditional IRA-to-SIMPLE IRA rollover
is completed if all or part of the distribution is rolled over not later
than 60 days after the distribution is received. In the case of a
distribution for a first-time homebuyer where there was a delay or
cancellation of the purchase, the 60-day rollover period may be
extended to 120 days.
You are permitted to roll over only one distribution from an IRA
(Traditional, Roth, or SIMPLE) in a 12-month period, regardless of
the number of IRAs you own. A distribution may be rolled over to
the same IRA or to another IRA that is eligible to receive the
Page 12 of 15
98 / 2300-C (Rev. 4/2020) ©2020 Ascensus, LLC
rollover. For more information on rollover limitations, you may
obtain IRS Publication 590-B, Distributions from Individual
Retirement Arrangements (IRAs), from the IRS or refer to the IRS
website at www.irs.gov.
6. Traditional IRA-to-Employer-Sponsored Retirement Plan Rollovers.
You may roll over, directly or indirectly, any taxable eligible rollover
distribution from an IRA to your qualified retirement plan, 403(a)
annuity, 403(b) tax-sheltered annuity, or 457(b) eligible
governmental deferred compensation plan as long as the employer-
sponsored retirement plan accepts such rollover contributions.
7. Traditional IRA-to-Roth IRA Conversions. If you convert to a Roth
IRA, the amount of the conversion from your Traditional IRA to
your Roth IRA will be treated as a distribution for income tax
purposes, and is includible in your gross income (except for any
nondeductible contributions). Although the conversion amount
generally is included in income, the 10 percent early distribution
penalty tax will not apply to conversions from a Traditional IRA to
a Roth IRA, regardless of whether you qualify for any exceptions to
the 10 percent penalty tax. If you are required to take a required
minimum distribution for the year, you must remove your required
minimum distribution before converting your Traditional IRA.
8. Qualified HSA Funding Distribution. If you are eligible to contribute
to a health savings account (HSA), you may be eligible to take a
one-time tax-free qualified HSA funding distribution from your IRA
and directly deposit it to your HSA. The amount of the qualified
HSA funding distribution may not exceed the maximum HSA
contribution limit in effect for the type of high deductible health
plan coverage (i.e., single or family coverage) that you have at the
time of the deposit, and counts toward your HSA contribution limit
for that year. For further detailed information, you may wish to
obtain IRS Publication 969, Health Savings Accounts and Other
Tax-Favored Health Plans.
9. Rollovers of Settlement Payments From Bankrupt Airlines. If you
are a qualified airline employee who has received a qualified
airline settlement payment from a commercial airline carrier
under the approval of an order of a federal bankruptcy court, you
are allowed to roll over up to 90 percent of the proceeds into your
Traditional IRA within 180 days after receipt of such amount, or by
a later date if extended by federal law. If you make such a rollover
contribution, you may exclude the amount rolled over from your
gross income in the taxable year in which the airline settlement
payment was paid to you. For further detailed information and
effective dates you may obtain IRS Publication 590-A, Contributions
to Individual Retirement Arrangements (IRAs), from the IRS or
refer to the IRS website at www.irs.gov.
10. Rollovers of Exxon Valdez Settlement Payments. If you receive a
qualified settlement payment from Exxon Valdez litigation, you
may roll over the amount of the settlement, up to $100,000,
reduced by the amount of any qualified Exxon Valdez settlement
income previously contributed to a Traditional or Roth IRA or
eligible retirement plan in prior taxable years. You will have until
your tax return due date (not including extensions) for the year in
which the qualified settlement income is received to make the
rollover contribution. To obtain more information on this type of
rollover, you may wish to visit the IRS website at www.irs.gov.
11. Rollover of IRS Levy. If you receive a refund of eligible retirement
plan assets that had been wrongfully levied, you may roll over the
amount returned up until your tax return due date (not including
extensions) for the year in which the money was returned.
12. Repayment of Qualified Birth or Adoption Distribution. If you
have taken a qualified birth or adoption distribution, you may
generally repay all or a portion of the aggregate amount of such
distribution to an IRA, as permitted by the IRS. For further
information, you may wish to obtain IRS Publication 590-A,
Contributions to Individual Retirement Arrangements (IRAs), by
visiting www.irs.gov on the Internet.
13. Written Election. At the time you make a rollover to an IRA, you
must designate in writing to the custodian your election to treat
that contribution as a rollover. Once made, the rollover election is
irrevocable.
K. Transfer Due to Divorce – If all or any part of your IRA is awarded to
your spouse or former spouse in a divorce or legal separation
proceeding, the amount so awarded will be treated as the spouse’s
IRA (and may be transferred pursuant to a court-approved divorce
decree or written legal separation agreement to another IRA of your
spouse), and will not be considered a taxable distribution to you. A
transfer is a tax-free direct movement of cash and/or property from
one Traditional IRA to another.
L. Recharacterizations – If you make a contribution to a Traditional IRA
and later recharacterize either all or a portion of the original
contribution to a Roth IRA along with net income attributable, you may
elect to treat the original contribution as having been made to the
Roth IRA. The same methodology applies when recharacterizing a
contribution from a Roth IRA to a Traditional IRA. The deadline for
completing a recharacterization is your tax filing deadline (including
any extensions) for the year for which the original contribution was
made. You may not recharacterize a Roth IRA conversion.
LIMITATIONS AND RESTRICTIONS
A. SEP Plans – Under a simplified employee pension (SEP) plan that meets
the requirements of IRC Sec. 408(k), your employer may make
contributions to your IRA. Your employer is required to provide you
with information that describes the terms of your employer’s SEP plan.
B. Spousal IRA – For contributions made for tax years beginning before
2020, if you are married and have compensation, you may contribute
to an IRA established for the benefit of your spouse for any year prior
to the year your spouse turns age 70½, regardless of whether or not
your spouse has compensation. For contributions made for 2020 and
later tax years, you may contribute to an IRA established for the
benefit of your spouse regardless of your spouse’s age, if you are
married and have compensation. You may make these spousal
contributions even if you are age 70½ or older. You must file a joint
income tax return for the year for which the contribution is made.
The amount you may contribute to your IRA and your spouse’s IRA is
the lesser of 100 percent of your combined eligible compensation or
$12,000 for 2019 and 2020. This amount may be increased with cost-
of-living adjustments each year. However, you may not contribute
more than the individual contribution limit to each IRA.
If your spouse is age 50 or older by the close of the taxable year, and is
otherwise eligible, you may make an additional contribution to your
spouse’s IRA. The maximum additional contribution is $1,000 per year.
C. Deduction of Rollovers and Transfers – A deduction is not allowed for
rollover or transfer contributions.
D. Gift Tax – Transfers of your IRA assets to a beneficiary made during
your life and at your request may be subject to federal gift tax under
IRC Sec. 2501.
E. Special Tax Treatment – Capital gains treatment and 10-year income
averaging authorized by IRC Sec. 402 do not apply to IRA distributions.
F. Prohibited Transactions – If you or your beneficiary engage in a
prohibited transaction with your IRA, as described in IRC Sec. 4975,
your IRA will lose its tax-deferred status, and you must include the
value of your account in your gross income for that taxable year. The
following transactions are examples of prohibited transactions with
Page 13 of 15
98 / 2300-C (Rev. 4/2020) ©2020 Ascensus, LLC
your IRA. (1) Taking a loan from your IRA (2) Buying property for
personal use (present or future) with IRA assets (3) Receiving certain
bonuses or premiums because of your IRA.
G. Pledging – If you pledge any portion of your IRA as collateral for a
loan, the amount so pledged will be treated as a distribution and will
be included in your gross income for that year.
OTHER
A. IRS Plan Approval – Articles I through VII of the agreement used to
establish this IRA have been approved by the IRS. The IRS approval is
a determination only as to form. It is not an endorsement of the plan
in operation or of the investments offered.
B. Additional Information – For further information on IRAs, you may wish
to obtain IRS Publication 590-A, Contributions to Individual Retirement
Arrangements (IRAs), or Publication 590-B, Distributions from Individual
Retirement Arrangements (IRAs), by calling 800-TAX-FORM, or by visiting
www.irs.gov on the Internet.
C. Important Information About Procedures for Opening a New
Account To help the government fight the funding of terrorism and
money laundering activities, federal law requires all financial
organizations to obtain, verify, and record information that identifies
each person who opens an account. Therefore, when you open an
IRA, you are required to provide your name, residential address, date
of birth, and identification number. We may require other information
that will allow us to identify you.
D. Qualified Reservist Distributions – If you are an eligible qualified
reservist who has taken penalty-free qualified reservist distributions
from your IRA or retirement plan, you may recontribute those amounts
to an IRA generally within a two-year period from your date of return.
E. Qualified Charitable Distributions – If you are age 70½ or older, you
may be eligible to take tax-free IRA distributions of up to $100,000 per
year and have these distributions paid directly to certain charitable
organizations. Special tax rules may apply. For further detailed
information you may obtain IRS Publication 590-B, Distributions from
Individual Retirement Arrangements (IRAs), from the IRS or refer to
the IRS website at www.irs.gov.
F. Disaster Related Relief – If you qualify (for example, you sustained an
economic loss due to, or are otherwise considered affected by, certain
disasters designated by Congress), you may be eligible for favorable tax
treatment on distributions, rollovers, and other transactions involving
your IRA. Qualified disaster relief may include penalty-tax free early
distributions made during specified timeframes for each disaster, the
ability to include distributions in your gross income ratably over multiple
years, the ability to roll over distributions to an eligible retirement plan
without regard to the 60-day rollover rule, and more. For additional
information on specific disasters, including a complete listing of disaster
areas, qualification requirements for relief, and allowable disaster-
related IRA transactions, you may wish to obtain IRS Publication 590-B,
Distributions from Individual Retirement Arrangements (IRAs), from the
IRS or refer to the IRS website at www.irs.gov.
G. Coronavirus-Related Distributions (CRDs) – If you qualify, you may
withdraw up to $100,000 in aggregate from your IRAs and eligible
retirement plans as a CRD, without paying the 10 percent early
distribution penalty tax. You are a qualified individual if you (or your
spouse or dependent) is diagnosed with the COVID-19 disease or the
SARS-CoV-2 virus in an approved test; or if you have experienced
adverse financial consequences as a result of being quarantined,
being furloughed or laid off or having work hours reduced due to such
virus or disease, being unable to work due to lack of child care due to
such virus or disease, closing or reduced hours of a business owned or
operated by you due to such virus or disease, or other factors as
determined by the IRS. A CRD must be made on or after January 1,
2020, and before December 31, 2020.
CRDs will be taxed ratably over a three-year period, unless you elect
otherwise, and may be repaid over three years beginning with the day
following the day a CRD is made. Repayments may be made to an
eligible retirement plan or IRA.
An eligible retirement plan is defined as a qualified retirement plan,
403(a) annuity, 403(b) tax-sheltered annuity, 457(b) eligible
governmental deferred compensation plan, or an IRA.
Page 14 of 15
©2020 Ascensus, LLC
FINANCIAL DISCLOSURE
The term IRA will be used below to mean Traditional IRA, Roth IRA, and SIMPLE IRA, unless otherwise specified.
The financial organization should complete the financial disclosure using Method I, Method II, or Method III.
If the growth of the IRA can reasonably be
projected, use either Method I or Method II. The account values projected using Method I or Method II must be reduced by all applicable fees and penalties.
If annual fees are assessed, such as an annual service fee, use Method II. If no projection of growth of the IRA can reasonably be shown, use Method III.
METHOD I Growth can be projected (Do not use Method I if an annual fee is charged. Instead, use Method II for financial projections.)
Your Age on Your Birth Date This Year Length of Time Deposit (If applicable)
The charts below give projections of the value of your IRA by showing the amount available at the end of each year. These projections assume an
interest rate of .25%, compounded annually. If you have invested your IRA in a time deposit, a loss-of-earnings penalty may be charged against a
withdrawal before maturity. A transaction fee may also apply to your IRA.
The Regular Contribution chart assumes that an annual contribution of $1,000 is made on the first day of each year. The Rollover, Transfer, or Conversion*
chart assumes that a one-time deposit of $1,000 is made on the first day of the first year.
Indicate the projected account value for each of the years, taking into consideration any applicable loss of earnings penalty or other fees assessed if the
IRA owner received a distribution at the end of the year for which the projection is being made. First, circle the year-end projected IRA value that is
applicable for each of the first five years. Next, circle the applicable IRA value for the years in which the IRA owner will attain ages 60, 65, and 70.
REGULAR CONTRIBUTION
FINANCIAL PROJECTIONS WITH .25% RATE OF INTEREST
NO.
YRS
ACCOUNT
VALUE
1 MONTH
PENALTY
3 MONTH
PENALTY
6 MONTH
PENALTY
AMT. AFTER
FEES AND
PENALTIES
1 $1,002.50 $1,002.29 $1,001.87 $1,001.25
2 2,007.51 2,007.09 2,006.25 2,005.00
3 3,015.03 3,014.40 3,013.14 3,011.26
4 4,025.06 4,024.22 4,022.55 4,020.03
5 5,037.63 5,036.58 5,034.48 5,031.33
6 6,052.72 6,051.46 6,048.94 6,045.15
7 7,070.35 7,068.88 7,065.93 7,061.51
8 8,090.53 8,088.84 8,085.47 8,080.41
9 9,113.25 9,111.35 9,107.56 9,101.86
10 10,138.54 10,136.42 10,132.20 10,125.86
11 11,166.38 11,164.06 11,159.40 11,152.42
12 12,196.80 12,194.26 12,189.18 12,181.55
13 13,229.79 13,227.03 13,221.52 13,213.25
14 14,265.37 14,262.39 14,256.45 14,247.53
15 15,303.53 15,300.34 15,293.96 15,284.40
16 16,344.29 16,340.88 16,334.07 16,323.86
17 17,387.65 17,384.03 17,376.78 17,365.91
18 18,433.62 18,429.78 18,422.10 18,410.58
19 19,482.20 19,478.14 19,470.02 19,457.85
20 20,533.41 20,529.13 20,520.57 20,507.74
21 21,587.24 21,582.74 21,573.75 21,560.26
22 22,643.71 22,638.99 22,629.56 22,615.40
23 23,702.82 23,697.88 23,688.00 23,673.19
24 24,764.57 24,759.42 24,749.10
24,733.62
25
25,828.99 25,823.61 25,812.84
25,796.70
26 26,896.06 26,890.46 26,879.25 26,862.44
27 27,965.80 27,959.97 27,948.32 27,930.84
28 29,038.21 29,032.16 29,020.06 29,001.92
29 30,113.31 30,107.04 30,094.49 30,075.67
30 31,191.09 31,184.59 31,171.60 31,152.10
31 32,271.57 32,264.85 32,251.40 32,231.23
32 33,354.75 33,347.80 33,333.90 33,313.06
33 34,440.64 34,433.46 34,419.11 34,397.58
34 35,529.24 35,521.84 35,507.03 35,484.83
35 36,620.56 36,612.93 36,597.67 36,574.78
36 37,714.61 37,706.75 37,691.04 37,667.47
37 38,811.40 38,803.31 38,787.14 38,762.88
38 39,910.93 39,902.61 39,885.98 39,861.04
39 41,013.20 41,004.66 40,987.57 40,961.94
40 42,118.24 42,109.46 42,091.91 42,065.59
41 43,226.03 43,217.03 43,199.02 43,172.00
42 44,336.60 44,327.36 44,308.89 44,281.18
43 45,449.94 45,440.47 45,421.53 45,393.13
44 46,566.06 46,556.36 46,536.96 46,507.86
45 47,684.98 47,675.04 47,655.18 47,625.37
46 48,806.69 48,796.52 48,776.19 48,745.68
47 49,931.21 49,920.81 49,900.00 49,868.79
48 51,058.54 51,047.90 51,026.62 50,994.71
49 52,188.68 52,177.81 52,156.06 52,123.45
50 53,321.65 53,310.55 53,288.33 53,255.00
51 54,457.46 54,446.11
54,423.42 54,389.39
52 55,596.10 55,584.52
55,561.35 55,526.61
53 56,737.59 56,725.77 56,702.13 56,666.67
54 57,881.94 57,869.88 57,845.76 57,809.58
55 59,029.14 59,016.84 58,992.25 58,955.35
56 60,179.21 60,166.68 60,141.60 60,103.99
57 61,332.16 61,319.38 61,293.83 61,255.50
58 62,487.99 62,474.97 62,448.94 62,409.88
59 63,646.71 63,633.45 63,606.93 63,567.15
60 64,808.33 64,794.83 64,767.82 64,727.32
61 65,972.85 65,959.11 65,931.62 65,890.38
62 67,140.28 67,126.29 67,098.32 67,056.36
ROLLOVER, TRANSFER, OR CONVERSION*
FINANCIAL PROJECTIONS WITH .25% RATE OF INTEREST
NO.
YRS
ACCOUNT
VALUE
1 MONTH
PENALTY
3 MONTH
PENALTY
6 MONTH
PENALTY
AMT. AFTER
FEES AND
PENALTIES
1 $1,002.50 $1,002.29 $1,001.87 $1,001.25
2 1,005.01 1,004.80 1,004.38 1,003.75
3 1,007.52 1,007.31 1,006.89 1,006.26
4 1,010.04 1,009.83 1,009.41 1,008.78
5 1,012.56 1,012.35 1,011.93 1,011.30
6 1,015.09 1,014.88 1,014.46 1,013.83
7 1,017.63 1,017.42 1,017.00 1,016.36
8 1,020.18 1,019.96 1,019.54 1,018.90
9 1,022.73 1,022.51 1,022.09 1,021.45
10 1,025.28 1,025.07 1,024.64 1,024.00
11 1,027.85 1,027.63 1,027.20 1,026.56
12 1,030.42 1,030.20 1,029.77 1,029.13
13 1,032.99 1,032.78 1,032.35 1,031.70
14 1,035.57 1,035.36 1,034.93 1,034.28
15 1,038.16 1,037.95 1,037.51 1,036.87
16 1,040.76 1,040.54 1,040.11 1,039.46
17 1,043.36 1,043.14 1,042.71 1,042.06
18 1,045.97 1,045.75 1,045.32 1,044.66
19 1,048.58 1,048.37 1,047.93 1,047.27
20 1,051.21 1,050.99 1,050.55 1,049.89
21 1,053.83 1,053.61 1,053.17 1,052.52
22 1,056.47 1,056.25 1,055.81 1,055.15
23 1,059.11 1,058.89 1,058.45 1,057.79
24 1,061.76 1,061.54
1,061.09 1,060.43
25
1,064.41
1,064.19
1,063.75 1,063.08
26 1,067.07 1,066.85 1,066.41 1,065.74
27 1,069.74 1,069.52 1,069.07 1,068.40
28 1,072.41 1,072.19 1,071.74 1,071.07
29 1,075.10 1,074.87 1,074.42 1,073.75
30 1,077.78 1,077.56 1,077.11 1,076.44
31 1,080.48 1,080.25 1,079.80 1,079.13
32 1,083.18 1,082.95 1,082.50 1,081.82
33 1,085.89 1,085.66 1,085.21 1,084.53
34 1,088.60 1,088.37 1,087.92 1,087.24
35 1,091.32 1,091.10 1,090.64 1,089.96
36 1,094.05 1,093.82 1,093.37 1,092.68
37 1,096.79 1,096.56 1,096.10 1,095.42
38 1,099.53 1,099.30 1,098.84 1,098.15
39 1,102.28 1,102.05 1,101.59 1,100.90
40 1,105.03 1,104.80 1,104.34 1,103.65
41 1,107.80 1,107.56 1,107.10 1,106.41
42 1,110.57 1,110.33 1,109.87 1,109.18
43 1,113.34 1,113.11 1,112.65 1,111.95
44 1,116.12 1,115.89 1,115.43 1,114.73
45 1,118.92 1,118.68 1,118.22 1,117.52
46 1,121.71 1,121.48 1,121.01 1,120.31
47 1,124.52 1,124.28 1,123.81 1,123.11
48 1,127.33 1,127.09 1,126.62 1,125.92
49 1,130.15 1,129.91 1,129.44 1,128.73
50 1,132.97 1,132.74 1,132.26 1,131.56
51 1,135.80
1,135.57 1,135.09 1,134.38
52 1,138.64
1,138.41 1,137.93 1,137.22
53 1,141.49 1,141.25 1,140.78 1,140.06
54 1,144.34 1,144.11 1,143.63 1,142.91
55 1,147.20 1,146.97 1,146.49 1,145.77
56 1,150.07 1,149.83 1,149.35 1,148.64
57 1,152.95 1,152.71 1,152.23 1,151.51
58 1,155.83 1,155.59 1,155.11 1,154.39
59 1,158.72 1,158.48 1,158.00 1,157.27
60 1,161.62 1,161.37 1,160.89 1,160.16
61 1,164.52 1,164.28 1,163.79 1,163.07
62 1,167.43 1,167.19 1,166.70 1,165.97
*Conversion applies to Roth IRAs only
ADDITIONAL FINANCIAL DISCLOSURE
INFORMATION
The account values shown are projections based
on many assumptions. They are not guaranteed,
but depend upon many factors, including the
interest rates and terms of future funding
instruments.
We may charge you fees in connection with your
IRA. If we do not charge these fees now, we may
do so in the future after giving you notice. If you
do not pay these fees separately, they may be
paid from the assets of your IRA.
CURRENT FEES
$
$
$
$
$
$
98 / 2300-C (Rev. 4/2020)
Page 15 of 15
©2020 Ascensus, LLC
METHOD II Growth can be projected
The financial projections below show the amount that would be available
if you were to withdraw your IRA assets at the indicated times. These
projections are based on the following assumptions.
CONTRIBUTION (Select one)
Regular. An annual $1,000 deposit is made on the first day of each
year.
Rollover, Transfer, or Conversion.* A one-time $1,000 deposit is
made on the first day of the first year.
Your Age on Your Birth Date in Contribution Year
Investment Instrument
Length of Time Deposit
Rate of Interest %
Compounding Method
FINANCIAL PROJECTIONS
Number of
Years in IRA
Program
Total
Accumulation
of IRA Dollars
Amount
After Fees
and Penalties
1 Year
$ $
2 Years
$ $
3 Years
$ $
4 Years
$ $
5 Years
$ $
End of the
Year You
Reach Age
Total
Accumulation
of IRA Dollars
Amount
After Fees
and Penalties
60
$ $
65
$ $
70
$ $
ADDITIONAL FINANCIAL DISCLOSURE INFORMATION
The account values shown are projections based on many assumptions.
These projections have been reduced by any applicable fees. They are not
guaranteed, but depend upon many factors, including the interest rates
and terms of future funding instruments.
We may charge you an annual service fee or other fees in connection with
your IRA. If we do not charge these fees now, we may do so in the future
after giving you notice. If you do not pay these fees separately, they may
be paid from the assets of your IRA.
CURRENT FEES
$
$
$
$
$
$
*Conversion applies to Roth IRAs only
METHOD III Growth cannot be projected
The value of your IRA will be dependent solely upon the performance of
any investment instrument used to fund your IRA. Therefore, no projection
of the growth of your IRA can reasonably be shown or guaranteed.
Terms and conditions of the IRA that affect your investment are listed
below.
INVESTMENT OPTIONS
Your IRA will be invested in products that we offer directly or those we
offer through a relationship with a registered securities broker-dealer.
FEES
There are certain fees and charges connected with your IRA investments.
These fees and charges may include the following.
Sales Commissions
Investment Management Fees
Distribution Fees
Set Up Fees
Annual Maintenance Fees
Surrender or Termination Fees
To find out what fees apply, refer to the investment prospectus or contract.
There may be certain fees and charges connected with the IRA itself.
(Select and complete as applicable.)
Annual Service Fee $
Transfer Fee $
Rollover Fee $
Termination Fee $
Other (Explain)
We reserve the right to change any of the above fees after notice to you,
as provided in your IRA agreement.
EARNINGS
The method for computing and allocating annual earnings (e.g., interest,
dividends) on your IRA will differ based on the nature and issuer of the
investments chosen. Refer to the investment prospectus or contract for
the methods used for computing and allocating annual earnings.
OTHER
Other terms or conditions that apply to your IRA include the following.
98 / 2300-C (Rev. 4/2020)