Form 5305-A (Rev. 3-2002) Page 2
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 70
1
⁄2, 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.
(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 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 depositor 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 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 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.
Depositor’s signature Date
Custodian’s signature Date
Witness’ signature
(Use only if signature of the depositor or the custodian is required to be witnessed.)
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) 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 (depositor) and the custodian and
must be completed 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, 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.
Identifying Number
The depositor’s social security number will
serve as the identification 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-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 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 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.
Form 5305-A (Rev. 3-2002)