Form 5305 (Rev. 3-2002) Page 2
(a) The required minimum distribution under paragraph 2(b) for any year, beginning with the year the grantor reaches age 70
1
⁄2, is the grantor’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 grantor’s designated beneficiary is his or her surviving spouse, the required minimum
distribution for a year shall not be more than the grantor’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 grantor’s (or, if applicable, the grantor and spouse’s) attained age (or ages) in the year.
(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 grantor’s
death (or the year the grantor would have reached age 70
1
⁄2, 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 grantor reaches age 70
1
⁄2 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 grantor agrees to provide the trustee 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 trustee agrees to submit to the Internal Revenue Service (IRS) and grantor 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 below.
Article VIII
Article VIII may be used for any additional provisions. If no other provisions will be added, draw a line through this space. If provisions are
added, they must comply with applicable requirements of state law and the Internal Revenue Code.
Grantor’s signature Date
Trustee’s signature Date
Witness’ signature
(Use only if signature of the grantor or the trustee is required to be witnessed.)
General Instructions
Section references are to the Internal
Revenue Code unless otherwise noted.
Purpose of Form
Form 5305 is a model trust account
agreement that meets the requirements of
section 408(a) and has been pre-approved by
the IRS. A traditional individual retirement
account (traditional IRA) is established after
the form is fully executed by both the
individual (grantor) and the trustee and must
be completed no later than the due date
(excluding extensions) of the individual’s
income tax return for the tax year. This
account must be created in the United States
for the exclusive benefit of the grantor and
his or her beneficiaries.
Do not file Form 5305 with the IRS.
Instead, keep it with your records.
For more information on IRAs, including the
required disclosures the trustee must give the
grantor, see Pub. 590, Individual Retirement
Arrangements (IRAs).
Definitions
Trustee. The trustee 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 trustee.
Grantor. The grantor is the person who
establishes the trust account.
Identifying Number
The grantor’s social security number will
serve as the identifying number of his or her
IRA. An employer identification number (EIN)
is required only for an IRA for which a return
is filed to report unrelated business taxable
income. An EIN is required for a common
fund created for IRAs.
Traditional IRA for Nonworking
Spouse
Form 5305 may be used to establish the IRA
trust for a nonworking spouse.
Contributions to an IRA trust account for a
nonworking spouse must be made to a
separate IRA trust 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 grantor reaches age 70
1
⁄2 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 grantor and trustee to
complete the agreement. They may include,
for example, definitions, investment powers,
voting rights, exculpatory provisions,
amendment and termination, removal of the
trustee, trustee’s fees, state law
requirements, beginning date of distributions,
accepting only cash, treatment of excess
contributions, prohibited transactions with the
grantor, etc. Attach additional pages if
necessary.
Form 5305 (Rev. 3-2002)