Beneficiary
Account
Kit
Traditional IRA
Non - Spouse Beneficiary
Dear Account Beneficiary,
Mainstar Trust understands that this time may be difficult and confusing. To assist you, we
have compiled this Beneficiary Account Kit. While the Kit may not cover all situations or
circumstances, it provides basic information for you regarding your beneficiary options.
The beneficiary options are listed on the Beneficiary Distribution Election Form, at the back of
this kit. Please review these options and determine the best one for you. You may want to
consult a tax advisor before making your election.
A beneficiary has until September 30 of the year following the year of the death of the
accountholder to choose his or her option. To ensure that your election is recorded by the
deadline, please complete and return the appropriate documents as detailed on the Next
Steps page included in this packet.
If you have any questions, please contact us at 800.521.9897 and one of our Customer
Service Representatives will help you.
Sincerely,
Mainstar Trust
:HVWWK6WUHHW
32%R[
Onaga, Kansas 66521-0420
P)8005219897
F)913.901.4190
www.mainstartrust.com
Revised 9-2018 Page 1 of 2
Next Steps
Once your beneficiary distribution election has been determined, it is time to proceed with
executing your elected option. Below are items required to complete your election, please review
and submit all documents/forms to Mainstar Trust at the address listed below.
If you are a Non-Spouse Beneficiary other than an estate or trust opening an Inherited
Traditional IRA account with Mainstar Trust, please provide the following:
1. Original Death Certificate
2. Mainstar Trust Inherited Traditional IRA Application and Beneficiary
Distribution Election form
3. One time set up fee
4. Letter of Instruction This letter should indicate how to transfer the
specific asset(s). If you choose to liquidate asset(s), a Sales
Authorization must be completed in addition to the Letter of Instruction.
If you are a Non-Spouse Beneficiary other than an estate or trust transferring to an
Inherited Traditional IRA at another custodian. We will first establish an Inherited
Traditional IRA account with Mainstar Trust and then complete the transfer to the new
custodian, please provide the following:
1. Original Death Certificate
2. Mainstar Trust Inherited Traditional IRA Application and Beneficiary
Distribution Election form
3. One time set up fee
4. Letter of Instruction signed by beneficiary This letter will need to
5. indicate that once the account is established, it will be closed and
transferred to another custodian. The letter should indicate how to
transfer the specific asset(s). If you choose to liquidate asset(s), a Sales
Authorization must be completed in addition to the Letter of Instruction.
6. Acceptance transfer paperwork from new custodian.
If you are a Non-Spouse Beneficiary and are closing the IRA account, please provide the
following:
1. Original Death Certificate
2. Mainstar Trust Withdrawal Request This should include how to transfer
the specific asset(s). If you choose to liquidate asset(s), a Sales
Authorization must be completed in addition to the Withdrawal Request.
3. W-9 for beneficiary
If the beneficiary is the estate/trust and it is opening an Inherited Traditional IRA account
for the estate/trust, please provide the following:
1. Original Death Certificate
2. Letter of Testamentary Estate Only
3. Copy of Trust showing who the trustee/trustee(s) is Trust Only
4. Mainstar Trust Inherited Traditional IRA Application and Beneficiary
Distribution Election form
5. One time set up fee
6. Letter of Instruction This letter should indicate how to transfer the
specific asset(s). If you choose to liquidate asset(s), a Sales
Authorization must be completed in addition to the Letter of Instruction.
Revised 9-2018 Page 2 of 2
Next Steps Continued
If the beneficiary is the estate/trust and it is closing the account with Mainstar Trust,
please provide the following:
1. Original Death Certificate
2. Letter of Testamentary Estate Only
3. Copy of Trust showing who the trustee/trustee is Trust Only
4. W-9 to show estate/trust TIN
5. Mainstar Trust Withdrawal Request signed by executor/trustee(s). This
document should also include instructions on how all assets held in the
IRA account will be transferred. If you choose to liquidate asset(s), a
Sales Authorization must be completed in addition to the Withdrawal
Request.
If the beneficiary is a charity and it is closing the account with Mainstar Trust, please
provide the following:
1. Original Death Certificate
2. Withdrawal Request signed by authorized signer of charity
3. W-9 for Charity
If you believe your option is not listed above, please contact Mainstar Trust at the address and or
numbers referenced below to assist you with your option.
Once you have all documents/items completed, please submit to us at the address below:
Mainstar Trust
214 West 9
th
Street
Onaga, KS 66521
Attn: Death Claims
Phone: 800.521.9897
Fax: 913-901-4190
Revised 12-2015 Page 1 of 2
Additional Information
and Definitions :
For Additional Guidance. Before
completing this document, it is in your best
interest to consult a tax or legal professional.
Mainstar Trust cannot provide advice or
guidance on which option to choose.
Multiple Beneficiaries. If you are one of
multiple beneficiaries, you may find that
other beneficiaries and/or timing of the IRA
owner’s death may restrict spousal, non-
spousal, non-person methods of distribution.
Included in this Kit is a list of all options base
on the type of beneficiary you are.
Required Beginning Date (RBD). The
RBD is April 1 of the year following the year
in which an IRA owner attains age 70 ½.
Determination Date. The determination
date is September 30 of the year following
the IRA owner’s death.
Designated Beneficiaries. A designated
beneficiary is an individual who has a
remaining interest in the IRA on the
determination date. An individual who was
named as a beneficiary by the IRA owner
and has a right to all or a portion of the IRA
assets is not necessarily a designated
beneficiary under the law. A named
beneficiary who distributes his or her entire
interest in the IRA or disclaims his or her
interest before the determination date will be
eliminated from the designated beneficiary
determination.
A beneficiary who dies before the
determination date will still be considered for
designated beneficiary status.
A designated beneficiary sets the life
expectancy period for distributions after an
IRA owner’s death. When there are multiple
designated beneficiaries, the age of the
oldest beneficiary on the determination date
is used for calculating required minimum
distributions for all beneficiaries, unless
separate accounting applies in accordance
with Treasury Regulation 1.401(a)(9)-8.
Spouse as Sole Designated Beneficiary.
Special rules apply to a surviving spouse
who is the only beneficiary on the
determination date. If the IRA owner died
before his or her RBD, such spouse can
postpone receipt of the required distribution
until the year the deceased IRA owner
would have reached age 70 ½. Such
spouse can also elect to treat the IRA as his
or her own IRA and if the surviving spouse is
under age 70 ½, not be required to distribute
until he or she attains age 70 ½.
Single Life Expectancy. Single life
expectancy is the number of years an
individual is expected to live based on
various statistical and actuarial variables.
The IRS provides a single life expectancy
table in its regulations and in the IRS
Publication 590. A factor from the single life
expectancy table will be divided into an IRA
beneficiary’s shares of an IRA’s previous
year-end balance to calculate a required
minimum distribution for the year for that
beneficiary.
There are two ways to determine the
appropriate single life expectancy factor
each year a distribution to a beneficiary is
required the attained age method
(recalculation) and the reduction method
(non-recalculation).
Five-Year Rule. The five-year rule requires
the beneficiary’s interest in the IRA to be
fully distributed by the end of the fifth year
following the IRA owner’s death. Mainstar
Trust does not keep track of this date; it is
up to the Inherited IRA owner.
Spouse Beneficiary Rollovers. Any
spouse beneficiary can take a distribution of
his or her share of a deceased spouse’s IRA
and roll it over to his or her own IRA.
Federal Withholding and the Purpose of
the IRS Form W-4P. You must elect
whether to have federal income tax withheld
from your IRA distribution. You can make
this election on the substitute W-4P or you
can attach an actual IRS Form W-4P.
Unless elected otherwise, IRA distributions
will have federal income tax withheld at a flat
rate of 10 percent. You may use this form to
elect to have no income tax withheld (except
for payments to US citizens delivered
outside the US or its possessions), or to
Revised 12-2015 Page 2 of 2
have 10 percent or more withheld. Check
the box reflecting your choice. Your election
will apply to any later distributions from the
same IRA. You may revoke your previous
election from withholding by completing a
new W-4P form with the custodian. The
payer will not send copies of Form W-4P to
the IRS.
Required Minimum Distributions. If you
are a non-spouse beneficiary and are
required to take an annual payment from
your Inherited account, Mainstar Trust does
not automatically calculate those for you,
you may contact us and request our
assistance in the calculation.
Disclaiming. If multiple beneficiaries exist
and one beneficiary disclaims his or her
interest, the remaining beneficiaries receive
his or her portion. The beneficiary that
disclaims cannot instruct has to where his or
her portion goes. If a beneficiary disclaims
their interest, this is an irrevocable election,
must be completed in writing, and must be
done within nine months of the date of
death. We would suggest before any
beneficiary proceeds with this option, they
contact their legal counsel.
ORIGINAL IRA OWNER INFORMATION
Original Owner Name
Account Number
Address
Social Security Number
Date of Birth
Date of Death
BENEFICIARY INFORMATION
Beneficiary Name
Social Security Number
Address
Date of Birth
Phone Number
Relationship to Original
IRA Owner
BENEFICIARY OPTIONS
Applies to Spouse Beneficiaries Only
Total Distribution
Roll Over or Transfer to My Own IRA
Roll Over to a Qualified Plan
BENEFICIARY ELECTION
Defaults to Life Expectancy Payments if no option is selected.
Traditional IRA Beneficiary Election
Original IRA Owner Died Before April 1 of the Year Following the Owner becoming 70 ½
NON-SPOUSE
Payments Over 5 Years
Life Expectancy Payments
SPOUSE
Payments Over 5 Years
Life Expectancy Payments
Treat as My Own
NON-INDIVIDUAL
Payments Over 5 Years
Original IRA Owner Died After April 1 of the Year Following the Owner becoming 70 ½
NON-SPOUSE
Life Expectancy Payments
SPOUSE
Life Expectancy Payments
Treat as My Own
NON-INDIVIDUAL
Payments Over 5 Years
Life Expectancy Payments
Roth Beneficiary Election
NON-SPOUSE
Payments Over 5 Years
Life Expectancy Payments
SPOUSE
Payments Over 5 Years
Life Expectancy Payments
Treat as My Own
NON-INDIVIDUAL
Payments Over 5 Years
AUTHORIZED SIGNATURE
Beneficiary Signature Date
DESIGNATED BENEFICIARY ELECTION
Forward To: 214 West 9
th
Street
PO Box 420
Onaga, KS 66521-0420
P) 800.521.9897
F) 913.901.4190
customerservice@mainstartrust.com
Please Print or Type
9/2019
Clear Form
Page 1 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
PART 1. INHERITED IRA OWNER
Name (First/MI/Last) ______________________________________________________
Address Line 1 ___________________________________________________________
Address Line 2 ___________________________________________________________
City/State/ZIP ____________________________________________________________
Email Address ____________________________________________________________
Social Security Number ____________________________________________________
Date of Birth _____________________________________________________________
Home Phone Number ______________________________________________________
Dayme Phone Number
____________________________________________________
Fax Number ______________________________________________________________
PART 2. INHERITED IRA CUSTODIAN
Name ___________________________________________
Address Line 1 ____________________________________
Address Line 2 ____________________________________
City/State/ZIP ____________________________________
Phone __________________________________________
Inherited IRA Account Number ______________________
(For Internal Use Only)
Traditional IRA Simplier
®
Inherited Individual Retirement Account Application
2/2020
Mainstar Trust
214 W 9th St
PO Box 420
Onaga, KS 66521-0420
785-889-4213
PART 3. ORIGINAL OWNER’S INFORMATION
Name (First/MI/Last) _________________________________________ Date of Birth ________________________________________________
Social Security Number _______________________________________ Date of Death _______________________________________________
PART 4. CONTRIBUTION INFORMATION
CONTRIBUTION TYPE (Select one)
(If the check is payable to you and you are not a spouse beneciary, the assets are not eligible for an inherited IRA)
Transfer(Direct movement of inherited assets from a Tradional IRA into this inherited IRA)
Direct Rollover From an Eligible Employer-Sponsored Rerement Plan(A direct movement of inherited assets from an eligible employer-
sponsored rerement plan into this inherited IRA)
A spouse beneciary also has the following opon available.
Indirect Rollover From an Eligible Employer-Sponsored Rerement Plan(Inherited assets were paid to the spouse beneciary and are now being
moved into this inherited IRA)
PART 5. PAYMENT ELECTION INFORMATION
Has there been a payment elecon made for the assets you inherited from the employer-sponsored rerement plan or Tradional IRA?
Yes   No
(If Yes, please provide addional informaon regarding the elecon below.)
The previous payment elecon made (Select one)
Five-Year Rule   Life Expectancy Payments*
*If life expectancy payments are being taken, what is the date of birth of the individual whose life expectancy is being used to calculate the
payment?__________________________________
NOTE: If incorrect or incomplete informaon regarding a previous payment elecon is provided, the Custodian will not be held responsible for any
penales that may be incurred due to removing an insucient amount.
PART 6. STATEMENT OPTION
Quarterly Electronic Statement Only (must provide email address above) Annual Paper Statement
Quarterly Paper Statement Monthly Paper Statement
If no box is marked, your statements will be electronic unl you give further direcon to the Custodian. Addional fees will be assessed for paper
statements. Please refer to the Fee Disclosure for a list of all applicable fees. Accountholders selecting electronic statements will not receive paper
transaction advices.
PART 7. INVOICE OPTION
Charge Account (Default)      Bill me      ACH Debit Checking or Savings Account Please aach voided check or savings withdrawal slip
If no box is marked, your account will be charged.
REQUIRED
One time setup fee and annual account fee to be included with Simplifier.
Make check payable to Mainstar Trust.
Clear Form
Page 2 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
PART 8. DESIGNATION OF SUCCESSOR BENEFICIARY
I designate that upon my death, the assets in this inherited 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 successor beneficiaries at this time and understand that I may designate successor beneficiaries at a later date.
PRIMARY BENEFICIARIES (The total percentage designated must equal 100%. If more than one beneciary is designated and no percentages are
indicated, the beneciaries will be deemed to own equal share percentages in the inherited 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
CONTINGENT BENEFICIARIES(The total percentage designated must equal 100%. If more than one beneciary is designated and no percentages
are indicated, the beneciaries will be deemed to own equal share percentages in the inherited IRA. The balance in the account will be payable to
these beneciaries if all primary beneciaries have predeceased the inherited 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
Check here if addional successor beneciaries are listed on an aached addendum. Total number of addenda attached
This is page 2 of the inherited IRA Applicaon for__________________________________________, Account Number _________________________
Your Representative (and his/her BP or RIA firm) will be allowed access to online account statements and other account information. The Custodian
may furnish account information to your Representative (and his/her BP or RIA firm) electronically via a delivery method of the Custodian’s choice
in its sole discretion.
If you wish to grant addional trading authority you must check the box below.
My Representave is authorized to buy, sell, deliver and/or sele trades of any assets in accordance with the terms and condions of the
Custodian upon the wrien direcon of my Representave. Th
e Custodian has the right to rely on any representaons and/or warranes made by
my Representave in connecon with a sale or purchase on behalf of my account, including but not limited to, representaons with regard to
prohibited transacons and suitability requirements.
REPRESENTATIVE ACCEPTANCE
I agree to accept the designaon of “Representave” for this account and all the dues and responsibilies arising from that designaon. I have
access to the Inherited Individual Rerement Account Applicaon, 5305-A Plan Agreement, Financial Disclosure, Privacy Noce, Summary of
Accountholder Responsibilies, and Fee Disclosure. I agree to be bound by the terms of these documents. I understand that if I change rms, BD or
RIA aliaons, it is my responsibility to nofy the Custodian and the asset companies and to complete the necessary documentaon to change my
aliaon. I understand that I will not receive acvity, cash, statements or transacon reports via hard copy/paper. Electronic access will be denied if
the email address is incorrect or invalid.
X______________________________________________________________________________________________________ ___________________________________
Authorized Representative Signature Date (mm/dd/yyyy)
PART 9. DESIGNATION OF REPRESENTATIVE (Optional)
YOUR REPRESENTATIVE
Name _______________________________________________________
Address _____________________________________________________
City/State/ZIP ________________________________________________
Phone Number __________________ Fax Number __________________
Email Address ________________________________________________
BROKER DEALER or RIA AFFILIATION (if any)
Name _____________________________________________________
If my Representave is aliated with a BD or RIA rm and to assist the
BD or RIA rm with its supervisory responsibilies, the Custodian may
make available to or furnish my account informaon to my
Representave’s respecve BD or RIA as set forth above.
If my Representave changes rms, BD, or RIA aliaons, my
Representave will connue to have the same authority on my account.
It is my Representave’s responsibility to nofy both the Custodian and
me of any change in my Representave’s rm, BD, or RIA aliaon. My
Representave also must nofy the asset companies and the Custodian of
and complete the necessary BD or RIA documents to change his/her
rm, BD, or RIA aliaon.
Page 3 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
PART 10. SPOUSAL CONSENT
CURRENT MARITAL STATUS
I Am Not MarriedI understand that if I become married in the future, I should complete a new inherited IRA Designaon of Beneciary form.
I Am MarriedI understand that if I choose to designate a primary beneciary other than my spouse, my spouse must sign below.
The following Consent of Spouse must be completed if you are married and do not name your spouse as the sole primary beneciary. This applies to
residents of all states, not just the community or marital property states. Due to the important tax consequences of giving up one’ s property interest,
individuals signing this secon should consult with a competent tax or legal advisor.
CONSENT OF SPOUSE
I am the spouse of the above-named inherited IRA owner. I acknowledge that I have received a fair and reasonable disclosure of my spouse’s
property and nancial obligaons. Due to the important tax consequences of giving up my interest in this inherited IRA, I have been advised to see a
tax professional.
I hereby give the inherited IRA owner any interest I have in the funds or property deposited in this inherited IRA, now or hereaer, and consent to
the beneciary designaon(s) indicated above. I assume full responsibility for any adverse consequences that may result. No tax or legal advice was
given to me by the Custodian.
X______________________________________________________________________________________________________ ___________________________________
Signature of Spouse Date (mm/dd/yyyy)
PART 11. SIGNATURES
Important: Please read before signing.
I understand the eligibility requirements for the type of inherited IRA contribuon I am making and I state that I do qualify to make the contribuon.
I have received a copy of the Inherited Individual Rerement Account Applicaon, the 5305 Individual Rerement Custodial Account Plan Agreement,
the Financial Disclosure, the Disclosure Statement, the Privacy Noce, the Summary of Accountholder Responsibilies, and the Fee Disclosure
(“Documents”). I have read and understand that the terms and condions of this inherited IRA account are held within these Documents. By signing
below, I agree to be bound by the terms and condions of these Documents. Within seven (7) days from the date I open this inherited IRA I may
revoke it without penalty by mailing or delivering a wrien noce to the Custodian.
I assume complete responsibility for
determining that I am eligible to establish an inherited IRA;
insuring that all rollover or transfer contribuons I make are within the limits set forth by the tax laws; and
the tax consequences of any rollover or transfer contribuons and distribuons.
I recognize that the products purchased and/or held within this account are
not insured by the FDIC;
not a deposit or other obligaon of, or guaranteed by, Mainstar Trust;
subject to investment risks, including possible loss of the principal amount invested.
This Agreement and the exhibits and disclosures referenced herein contains the enre agreement of the pares with respect to the subject maer of
this Agreement, and supersedes all prior negoaons, agreements and understandings between the pares, whether wrien or oral, with respect
thereto. I hereby acknowledge and agree that I have not relied on any representaon, asseron, guarantee, warranty, other contract or other
assurance, except as set forth herein, made by or on behalf of any other party or any other person or enty whatsoever, prior to the execuon of this
Agreement. This Agreement may only be amended by a wrien document duly executed by all pares.
X______________________________________________________________________________________________________ ___________________________________
Inherited IRA Owner Date (mm/dd/yyyy)
X______________________________________________________________________________________________________ ___________________________________
Authorized Signature of Custodian Date (mm/dd/yyyy)
This is page 3 of the inherited IRA Applicaon for__________________________________________, Account Number _________________________
Page 4 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
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 contribuon described in secon 402(c),
403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), an employer contribuon
to a simplied employee pension plan as described in secon 408(k)
or a recharacterized contribuon described in secon 408A(d)(6), the
custodian will accept only cash contribuons 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 reect 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.
INDIVIDUAL RETIREMENT CUSTODIAL ACCOUNT AGREEMENT
Form 5305-A under secon 408(a) of the Internal Revenue Code. FORM (Rev. April 2017)
Page 5 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
(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 inherited IRA owner. The words “we,”
“us,” and “our” mean the custodian. The words “inherited IRA
owner” mean the individual establishing this inherited IRA with
either a direct rollover contribution from an eligible inherited
employer-sponsored retirement plan or a transfer from an inherited
IRA. The word “Code” means the Internal Revenue Code,
“regulations” means the Treasury regulations, and the word
“Account Representative” or “Representative” means any individual
you have delegated his or her investment responsibilities to under
Section 8.07.
8.02 Notices and Change of Address Any required notice regarding
this inherited 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 or your Account Representative give us, or action
you or your Account Representative take will be proper under this
Agreement and that we are entitled to rely upon any such
information or directions. You acknowledge that we are under no
obligation to determine what actions or documentation may be
necessary or appropriate with respect to any transaction requested
by you or your Account Representative, and that we need only
obtain those documents specified by you or your Account
Representative in any authorization (i.e. purchase or sale
authorization). We will have no duty to confirm or ascertain that any
such document or instrument obtained in connection with any
transaction is genuine or authentic, or that it has been properly or
correctly executed or entered into by any purported party thereto.
Upon receipt of any report or statement, you must inform us in
writing if you believe any information on the report/statement is
incorrect within 30 days after the report/statement is sent. If you do
not so inform us, then we shall be relieved from all liability regarding
the status of your account as stated in the report/statement.
We shall 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 shall not be responsible for
any penalties, taxes, judgments, damages or expenses you incur in
connection with your inherited IRA. We have no duty to determine
whether your contributions or distributions comply with the Code,
Regulations, rulings or this Agreement. The Custodian agrees to
submit reports to the Internal Revenue Service and the Depositor
prescribed by the Internal Revenue Service. You agree to prepare
and provide to us Form 990-T, if required. We are responsible for
filing Form 990-T with the IRS once you have provided it to us.
8.04 Disclosure of Account Information We may use agents and/or
subcontractors to assist in administering your inherited IRA. We
may release nonpublic personal information regarding your
inherited 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,
etc.) for maintaining your inherited IRA. We may also charge
additional fees for complex transactions requiring extraordinary
time and attention from our staff. In addition, we have the right to
be reimbursed for all reasonable expenses, including various
transaction and legal expenses, we incur in connection with the
administration of your inherited 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 inherited IRA at our discretion.
We reserve the right to charge any additional fee upon 30 days
notice to you that the fee will be effective. Any brokerage
commissions attributable to the assets in your inherited IRA will be
charged to your inherited IRA. You cannot reimburse your inherited
IRA for these commissions or any Service Fees paid from your
inherited IRA.
Fees are billed quarterly and will be automatically deducted from
available cash or Custodian may charge to your credit card (Visa or
MasterCard), if authorized. Rejected credit card charges are subject
to a $25 reprocessing fee. If payment is not received within thirty
(30) days from the due date reflected on your invoice, a $15 Late Fee
will be assessed to your account and a Past Due Notice will be
mailed. Should fees not be collected we have the option to cease
performing any functions, including, but not limited to, processing
investment transactions until such time as all fees charged against
the account are fully paid. Additionally we may liquidate assets from
the account, without notice, for any outstanding fee which has not
been paid. We may, at our discretion, liquidate sufficient assets to
cover outstanding fees plus one year’s estimated fees, including
termination fees. Due to the nature of certain investments a partial
liquidation may not be possible. In such cases we may liquidate your
Page 6 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
entire holdings in the investment. Upon receipt, proceeds will be
first applied to outstanding fees. Remaining balances, if any, will be
placed into your account and deposited in an account as described
in paragraph 5 of 8.07(a).
In the event that fees are not paid within thirty (30) days after
mailing the Past Due Notice we will begin the process of closing your
account. Any asset distributed directly to you as a part of closing
your account will be reported to the IRS on Form 1099-R and may
subject you to possible taxes and penalties. Accounts with past due
fees, unfunded accounts and accounts with zero value will continue
to incur administration and maintenance fees until such time as you
notify us in writing (on a form prescribed by us) of your intent to
close the account or we resign as custodian. You will be liable for all
past due fees, re-registration fees, late fees and account termination
fees. In the event of nonpayment we may employ a collection
agency to recover any unpaid fees or expenses.
The Custodian is entitled to receive, from the assets held in your
Account, a fee equal in amount to all the income that is generated
from any Undirected Cash (defined as any cash in your Account not
invested pursuant to a specific investment direction by you, the
Accountholder) which is held by Custodian in an account or product
of an FDIC or other United States government insured financial
institution, United States government security, or security that is
insured or guaranteed by the United States government (Custodial
Fee). You agree that the Custodial Fee may be retained by Custodian
as compensation for the services provided by Custodian. The
Custodial Fee is associated with cash management activities,
including, but not limited to, account maintenance, depository bank
selection, transaction processing, sub-accounting, recordkeeping,
and other services performed under the terms of this Agreement
and your Account Application.
We may also receive compensation in the form of shareholder
servicing fees, sub-transfer agency fees, and other types of fees paid
by certain mutual funds or their affiliates in consideration of services
we provide to them, e.g., purchase and redemption of shares and
participant-level recordkeeping. This compensation is paid to us
pursuant to service agreements between the funds and us. Under no
circumstances will you be responsible for the payment of this
compensation to us, nor will you be entitled to any offsets or credits
to the service fees and expenses you owe to us by reason of our
having received this compensation. The compensation paid to us is
based either on a set fee per investor or on a percentage of the
average daily net asset value of shares invested in the fund.
8.06 Restrictions on Contributions to the Inherited IRA Your inherited
IRA may receive multiple rollover contributions from inherited
qualified retirement plans, 403(a) annuity plans, 403(b) tax-
sheltered annuity plans, or 457(b) governmental deferred
compensation plans, or multiple transfers from inherited Traditional
IRAs. In order to combine these inherited retirement assets in the
same inherited IRA, you must have inherited the assets from the
same owner and they must have been subject to the same
beneficiary payment elections and calculation methods as under
the receiving inherited IRA. You may not make regular contributions
to this inherited IRA.
8.07 Investment of Amounts in the IRA –
a. Direction of Investment. You acknowledge that it is your sole
responsibility to direct the investment of your inherited IRA
assets and that we, acting as custodian of your account, will have
no responsibility or involvement in evaluating or selecting any
assets for acquisition or disposition, and shall have no liability for
any loss or damage that may result from or be associated with
any requested investment transaction. You shall direct all
investment transactions, including earnings and the proceeds
from securities sales. Your investment choices are limited to
investments that the Custodian is capable of holding in the
ordinary course of its business and in accordance with its policies
and practices.
At our sole discretion, we reserve the right to not accept any
investment into your custodial account. Certain types of
investments may pose unacceptable administrative burdens to
us, and therefore, we reserve the right to not accept such
investments into your custodial account. Administrative burdens
include, but are not limited to, the inability of our computer,
accounting, or other systems to service the asset or excessive
manual labor to service the asset. In addition, all assets must
comply with Trust Company policies. We reserve the right to
review any or all investments to determine if the asset is
administratively feasible to us. Our review will be solely
administrative in nature. Our decision to not accept an asset
should in no way be construed as a determination concerning
the prudence or suitability of the investment for your inherited
IRA. Likewise, acceptance of the asset by us should not be
construed as a favorable opinion as to the prudence or suitability
of the investment for your inherited IRA. Our review of any asset
you desire to purchase and hold in your custodial account should
in no way be construed as a “due diligence” review. We do not
perform any type of feasibility study, nor do we research or
confirm any financial information regarding any investment.
You and upon your death, your Beneficiary agree to indemnify
and hold harmless the Custodian from and against all losses,
expenses, settlement payments, or judgements incurred by, or
entered against the Custodian as the result of any threatened or
asserted claim against the Custodian that pertains in any way to:
the Custodian’s activities with you; your investments; and/or
any situation or matter associated with this account. Your
indemnification obligations also include the responsibility to
reimburse the Custodian for all attorneys’ fees and costs
incurred by the Custodian in: responding to threatened claims
by any party; defending (including an appeal) against asserted
claims by any party; and/or prosecuting (including an appeal) a
claim or counterclaim against you requesting payment of the
indemnification obligation set forth herein. Your indemnification
obligation applies to any threatened or asserted claim against us
including specifically, a claim that is threatened or asserted by
you against us. Your indemnification obligation hereunder also
applies to any threatened or asserted claims brought by you
against us resulting from wrongful conduct by any representative
appointed by you including, but not limited to, fraud, forgery or
any other illegal act engaged in by your representative or other
agent retained by you.
You agree to indemnify and hold us harmless from and against
any and all claims, liabilities, causes of action, losses and
expenses (including, without limitation, any court costs,
attorney’s fees and other expenses) asserted against or incurred
by us as a result of, or in any way relating to, any action
requested or directed by you or your Account Representative.
In the absence of instructions from you or if your instructions
are not in a form acceptable to us, the Custodian shall hold
your Undirected Cash in an account or product of an FDIC or
other United States government insured financial institution,
United States government security, or security that is insured
or guaranteed by the United States government, unless or
otherwise directed by you. The account is insured for up to the
amount available under the FDIC insurance; amounts in the
account in excess of FDIC insurance limits are not insured.
Page 7 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
Directions regarding your account must be in writing from either
you or your designated representative. In the event that we
receive written investment directions from either you or your
designated representative, we may rely on the genuineness of all
signatures and shall be under no duty to investigate any
directions or investment decisions. You authorize us to honor
original and fax copies of requests from you or the representative
you have appointed. We shall be under no duty to investigate the
genuineness of the signatures, but may employ any means of
verification we wish if we elect to pursue verification.
Custodian shall be under no obligation or duty to secure, verify
title to or otherwise evaluate the assets underlying any
investment contemplated herein, or to obtain or maintain
insurance coverage (whether liability, property or otherwise)
with respect to any such assets or investments or the collateral
for such investment. The Custodian shall be fully protected in
acting upon any instrument, certificate or paper believed to be
genuine and to be signed or presented by the proper person or
persons, and the Custodian shall be under no duty to make any
investigation or inquiry as to any statement contained in any
such writing but may accept the same as conclusive evidence of
the truth and accuracy of the statements therein contained.
Further, Custodian is not providing legal or tax services or advice
with respect to the investment and the undersigned absolves
and indemnifies Custodian in the event that the investment or
sale of assets pursuant to any investment directions violates any
federal or state law or regulation or otherwise results in a
disqualification, penalty or tax imposed upon the IRA, Custodian
or the undersigned. Furthermore, the undersigned authorizes
and directs Custodian to execute and deliver, on behalf of his or
her IRA, any and all documents delivered to Custodian in
connection with such investment; and Custodian shall have no
responsibility to verify or determine that any such documents are
complete, accurate or constitute the documents necessary to
comply with the above investment direction.
All transactions shall be subject to any and all applicable Federal
and State laws and regulations and the rules, regulations,
customs and usages of any exchange, market or clearing house
where the transaction is executed and to our policies and
practices.
After your death, your beneficiary(ies) shall 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).
b. Our Investment Powers and Duties – We shall have no discretion
to direct any investment in your inherited IRA. We assume no
responsibility for rendering investment advice with respect to
your inherited 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 inherited IRA. We
shall exercise the voting rights and other shareholder rights with
respect to securities in your inherited IRA but only in accordance
with the instructions you give to us.
We, in no way, guarantee the account from loss or depreciation.
Our liability to make any payment from the account is at all times
limited to the then available assets of the account.
Except to the extent, if any, that may be required by applicable
law, we shall have no duty or obligation to monitor or make you
or your Account Representative aware of the receipt or non-
receipt of any funds payable to your account with respect to any
assets in such account (e.g., dividends, interest or other
distributions) or to provide you with any other information or
documentation (other than pleadings, orders or official notices
arising from any judicial proceeding) that we may receive or
become aware of with respect to such assets. (For example, and
not by way of limitation, we shall have no obligation or duty to
provide you with any information or documentation with respect
to tender offers from 3rd parties, or that have not been registered
with the Securities and Exchange Commission.) We shall have no
duty to undertake any action with respect to the collection or
enforcement of any payments or rights relating to such assets
(including, without limitation, any participation in any bankruptcy
proceedings, receivership proceedings, foreclosures or other
litigation, or the perfection or enforcement of any lien or other
rights with respect to such assets) without receiving prior
instruction from you, accompanied by such undertaking of
indemnification as we may request to assure us that we will be
fully reimbursed and protected with respect thereto. Without
limitation on the foregoing, we may however, if we so elect,
advised by counsel if deemed appropriate, respond and
participate in any such bankruptcy proceeding, receivership
proceedings, or other litigation to which we or your account may
have been made a party, and in such case we shall be fully
indemnified and protected by you for any action taken by us in
good faith. We shall be entitled to seek the advice of legal counsel
in connection with any matter relating to your account or any
assets, and may in good faith rely and act upon such advice.
c. Delegation of Investment Responsibility – We may, but are not
required to, permit you to delegate your investment responsibility
for your inherited IRA to another party acceptable to us by giving
written notice of your delegation in a format we prescribe. We
shall follow the direction of any such party who is properly
appointed and we shall be under no duty to review or question,
nor shall we be responsible for, any of that party’s directions,
actions or failures to act. We have the right to rely on any
representations and/or warranties made by your Account
Representative in connection with any sale or purchase on behalf
of your account, including but not limited to representations with
regard to prohibited transactions and suitability requirements.
Said Representative may be a registered representative of a
broker/dealer organization, a financial advisor or any other
person as may be acceptable to you. The Representative shall be
your authorized agent and is not the agent of the Custodian. We
shall construe all investment directions given by your
representative, whether written or oral, as having been authorized
by you. You may appoint and/or remove your representative by
written notice to the Custodian provided that the removal of
Representative shall not have the effect of canceling any notice,
instruction, direction or approval received by the Custodian from
the removed Representative before the Custodian received said
notice of removal from you.
8.08 Successor Beneficiaries We may allow you, if permitted by state
law, to name successor beneficiaries for your 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 your
lifetime. Each inherited IRA beneficiary designation form that you
file with us will cancel all previous designations. The consent of a
successor beneficiary will not be required for you to revoke a
successor beneficiary designation. If you do not designate a
successor beneficiary, your estate will be the successor beneficiary.
In no event will the successor beneficiary be able to extend the
distribution period beyond that required for you.
If we so choose, for any reason (e.g., due to limitations of our
charter or bylaws), we may require that a successor beneficiary
take total distribution of all IRA assets by December 31 of the year
following the year of death.
Page 8 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
8.09 Required Minimum Distributions You are required to take
minimum distributions from your inherited IRA. The options
available to you as a beneficiary of a deceased plan participant or
deceased IRA owner are described in Article IV, section three. A
spouse beneficiary will have all rights as granted under the Code or
applicable regulations to treat the inherited account as his or her
own. If you elect to take life expectancy payments, the payment
must be removed each year by December 31. If you have previously
made a distribution election with the prior plan or IRA, you may not
extend the distribution period for that election by moving it to an
inherited IRA. An exception applies if you have inherited a qualified
retirement plan, 403(a) annuity, 403(b) tax-sheltered annuity, or
457(b) governmental deferred compensation plan, and previously
elected or defaulted to the five-year rule. The five-year rule election
may be changed to a life expectancy payment election if, by
December 31 of the year following the year of the plan participant’s
death, you remove a life expectancy-based payment before rolling
the remaining assets to your inherited IRA.
If you have elected to take life expectancy payments and fail to
request your required minimum distribution by December 31, 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 inherited IRA to you in a single sum
payment
We will not be liable for any penalties or taxes related to your
failure to take a required minimum distribution.
After your death your successor beneficiaries, if any, must continue
with payments in accordance with the distribution method you had
chosen, or must accelerate the payments.
8.10
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 inherited IRA to another financial organization. If you
do not complete a transfer of your inherited IRA within 30 days
from the date we send the notice to you, we have the right to
transfer your inherited IRA assets to a successor inherited IRA
trustee or custodian that we choose in our sole discretion, or we
may pay your inherited 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 inherited
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 inherited
IRA
Any penalties or surrender charges associated with the early
withdrawal of any savings instrument or other investment in
your inherited IRA
We may establish a policy requiring distribution of the entire
balance of your inherited IRA to you in cash or property if the
balance of your inherited IRA drops below the minimum balance
required under the applicable investment or policy established.
8.11 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 inherited IRA) is bought by
another organization, that organization (or agency) will
automatically become the trustee or custodian of your inherited
IRA, but only if it is the type of organization authorized to serve as
an inherited IRA trustee or custodian.
8.12 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.
8.13 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.
8.14 Transfers From Other Plans We can receive amounts transferred
to this inherited IRA from the trustee or custodian of another
inherited Traditional IRA. In addition, we can accept rollovers of
eligible rollover distributions from inherited employer-sponsored
retirement plans as permitted by the Code. We reserve the right
not to accept any transfer or rollover.
8.15 Liquidation of Assets We have the right to liquidate assets in your
inherited IRA if necessary to make distributions or to pay fees,
expenses, taxes, penalties, or surrender charges properly chargeable
against your inherited 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.
8.16 Valuation – The assets in your account shall be valued annually at
the end of each calendar year, but we retain the right to value the
assets in your account more frequently. We will value the
investments of the account utilizing various third-party pricing
sources and designated valuation agents. However, we do not
guarantee the accuracy of prices obtained from these sources. The
year end value of illiquid and/or non-publicly traded investments,
which may include without limitation limited partnerships, limited
liability companies, privately held stock, real estate investment
trusts, hedge funds, and such other investments as we may
designate, must be provided to us no later than the following
January 10th by the asset’s designated valuation agent or third
party pricing source. If we do not receive a current market value by
the following January 10th for such investment, we shall be entitled
to use as that year end’s fair market value the last fair market value
provided to us, or if none, the original purchase price of the
investment for all applicable tax reporting and year-end statement
valuations. At any point after there has been a failure to provide us
with a fair market value for a period exceeding 9 months after
requested, we may distribute the investment at its last reported
value to you, or after your death your beneficiary and shall have no
responsibility or liability for any tax, financial, or other consequences
relating to or arising from such distribution. Unless we have
received written information to the contrary, promissory notes and
privately offered corporate debt will have valuations reflected at
the face value shown on the original note or debt instrument or if
Page 9 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
the note is such that it is subject to an amortization schedule,
valuation may be shown at amortized value. We are not responsible
for the timeliness or the accuracy of the fair market value for any
investment, and shall have no responsibility or liability for acting on
a fair market value so provided, or the last fair market value utilized
if none is provided, or for the accuracy of a Required Minimum
Distribution (“RMD”) calculated upon either such value. If we are
required to obtain a fair market value for an investment due to a
court order or similar circumstance, we may obtain an appraisal
from an independent third party, paying the cost for said appraisal
from the liquid investments held in the account, or in the alternative
after having first received the cost of the appraisal from you or your
beneficiary if liquid investments in the account are otherwise
insufficient. You, and upon your death, your beneficiary agree to
indemnify us and hold us harmless from and against all losses,
expenses, settlements or claims with regard to investment
decisions, distribution values, tax reporting or any other financial
impact or consequence relating to or arising from the valuation of
assets in the account.
8.17 Restrictions on the Fund Neither you nor any successor beneficiary
may sell, transfer, or pledge any interest in your inherited IRA in any
manner whatsoever, except as provided by law or this agreement.
The assets in your inherited IRA will not be responsible for the
debts, contracts, or torts of any person entitled to distributions
under this agreement.
8.18 What Law Applies – This Agreement is subject to all applicable
Federal and State laws and regulations. You agree that where state
law applies, Kansas law will govern this instrument, any other
instrument executed in connection with your account, and you,
your agent and our respective rights and obligations hereunder or
otherwise with respect to the account and assets. This document
and any other document executed in connection with your account
does not become effective until a signed copy has been received
and accepted by us in the State of Kansas (the taking of action by us
of any authorization will constitute our acceptance). We will have
the right to refuse to accept and to not act upon, any instruction or
direction given by you or your agent, provided that we promptly
notify you or your agent of such election and refusal. You
acknowledge and understand that all of our duties and undertakings
will be carried out in the State of Kansas, and agree that any claims
or disputes that arise in connection with your account or any assets
or any transaction requested by you or your agent must be brought
in arbitration as described in Section 8.21 below. If it is necessary to
apply any State law to interpret and administer this Agreement, the
law of Kansas will govern. If any part of this Agreement is held to be
illegal or invalid, the remaining parts will not be affected. Neither
party’s 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, nor a waiver of either party’s right thereafter to
enforce each and every provision.
8.19 Indemnity of Custodian – To the extent not prohibited by Federal
or State law, you agree to indemnify, defend and hold us, our
subsidiaries and affiliates (including officers, agents and employees)
harmless against and from any and all claims, demands, liabilities,
costs and expenses (including reasonable attorneys’ fees and
expenses), arising in connection with this agreement, with respect
to: any negligence or alleged negligence, whether passive or active,
by us, our subsidiaries or affiliates (including officers, agents and
employees); any breach or alleged breach, whether passive or
active, by us, our subsidiaries or affiliates (including officers, agents
and employees) of any responsibilities under this Agreement; any
breach or alleged breach, whether passive or active, by a third party
of responsibilities under this Agreement; or any claim arising out of
the purchase, holding or sale of any investments in the IRA,
whether directed by you or any agent appointed by you. You
further agree to pay for our defense and the defense of our
subsidiaries and affiliates (including officers, agents and employees)
by independent counsel of our choice against any such claims,
demands, liabilities or costs referred to above.
You agree to indemnify, defend and hold us, our subsidiaries and
affiliates (including officers, agents and employees) harmless
against and from any and all payments or assessments which may
result from holding any publicly-traded security or any nonstandard,
non-publicly traded or illiquid investment within the IRA account,
and further agree that we and our subsidiaries and affiliates
(including officers, agents and employees) shall be under no
obligation whatsoever to extend credit or otherwise disburse
payment beyond the cash balance of your account for any payment
or assessment related to such investment(s).
8.20 Adverse Claims – If we receive any claim to the assets held in the
IRA which is adverse to your interest or the interest of your
beneficiary, and we in our absolute discretion decide that the claim
is, or may be meritorious, we may withhold distribution until the
claim is resolved or until instructed by a court of competent
jurisdiction. As an alternative, we may deposit all or any portion of
the assets in the IRA into the court through a motion of interpleader.
Deposit with the court shall relieve us of any further obligation with
respect to the assets deposited. We have the right to be reimbursed
from the funds deposited for our legal fees and costs incurred.
8.21 Inherited IRA Not Guaranteed We do not guarantee the inherited
IRA from loss or depreciation. Our liability to make payment to you
at any time and all times is limited to the available assets of the
inherited IRA.
8.22 Arbitration of Claims – ARBITRATION OF DISPUTES. PLEASE READ
THIS ARBITRATION PROVISION CAREFULLY. IT PROVIDES THAT ANY
CONTROVERSY OR DISPUTE BE RESOLVED BY BINDING ARBITRATION.
ARBITRATION REPLACES THE RIGHT TO GO TO COURT, INCLUDING
THE RIGHT TO A JURY AND THE RIGHT TO PARTICIPATE IN A CLASS
ACTION OR SIMILAR PROCEEDING.
Agreement to arbitrate. You and we agree that either you or we
may, without the other’s consent, require that any Claims between
you and us be submitted to mandatory, binding arbitration except
for certain matters excluded below. This arbitration provision is
made pursuant to a transaction involving interstate commerce, and
will be governed by, and enforceable under, the Federal Arbitration
Act (the “FAA”), 9 U.S.C. § 1 et seq., and (to the extent State law is
applicable), the State law governing this transaction.
Claims subject to Arbitration include, but are not limited to: Any
controversy arising out of or relating to this Agreement or the
breach thereof, or to the inherited IRA or any transactions authorized
by you and/or your agent.
Arbitration location, finality, procedures, waiver of jury trial,
class action or any representative action. Arbitration will occur in
Johnson County, Kansas according to the rules of The American
Arbitration Association. Arbitration is final and binding on the
parties. The Parties are waiving their right to seek remedies in
court, including the right to jury trial. Claims made as part of a class
action or other representative action, and the arbitration of such
Claims must proceed on an individual (non-class, non-
representative) basis. If you or we require arbitration of a particular
Claim, neither you, we, nor any other person may pursue the Claim
in any litigation, whether as a class action, private attorney general
action, other representative action or otherwise. Pre-arbitration
discovery is generally more limited than and different from court
proceedings. If any portion of this arbitration provision is deemed
invalid or unenforceable, the remaining portions will nevertheless
remain in force.
Page 10 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
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 secon 408(a). However, only Articles I through VII have
been reviewed by the IRS. A Tradional individual rerement account
(Tradional IRA) is established aer 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 benet of the depositor and his or her beneciaries.
Do not le Form 5305-A with the IRS. Instead, keep it with your records.
For more informaon 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 associaon,
as dened in secon 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.
Contribuons 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.
Page 11 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
RIGHT TO REVOKE YOUR INHERITED IRA
You have the right to revoke your inherited IRA within seven days of the
receipt of the disclosure statement. If revoked, you are entled to a full
return of the contribuon you made to your inherited IRA. The amount
returned to you would not include an adjustment for such items as sales
commissions, administrave expenses, or uctuaon in market value. You
may make this revocaon only by mailing or delivering a wrien noce to
the custodian at the address listed on the applicaon.
If you send your noce by rst class mail, your revocaon will be deemed
mailed as of the postmark date.
If you have any quesons about the procedure for revoking your inherited
IRA, please call the custodian at the telephone number listed on the
applicaon.
REQUIREMENTS OF AN INHERITED IRA
A. Form of Contribution – Your contribuon must be either a rollover
contribuon from an eligible inherited employer-sponsored rerement
plan or a transfer contribuon from an inherited Tradional IRA. Your
rollover or transfer contribuon may be in cash and/or property.
B. Contribution Restrictions – You may not make regular contribuons to
your inherited IRA.
C. Nonforfeitability – Your interest in your inherited IRA is nonforfeitable.
D. Eligible Custodians – The custodian of your inherited IRA must be a
bank, savings and loan associaon, credit union, or a person or enty
approved by the Secretary of the Treasury.
E. Commingling Assets
The assets of your inherited IRA cannot be
commingled with other property except in a common trust fund or
common investment fund.
F. Life Insurance – No poron of your inherited IRA may be invested in
life insurance contracts.
G. Collectibles – You may not invest the assets of your inherited IRA in
collecbles (within the meaning of IRC Sec. 408(m)). A collecble is
dened as any work of art, rug or anque, metal or gem, stamp or
coin, alcoholic beverage, or other tangible personal property specied
by the Internal Revenue Service (IRS). However, specially minted
United States gold and silver coins, and certain state-issued coins
are permissible investments. Planum coins and certain gold, silver,
planum, or palladium bullion (as described in IRC Sec. 408(m)(3)) are
also permied as inherited IRA investments.
H. Required Minimum Distributions – You are required to take minimum
distribuons from your inherited IRA at certain mes in accordance with
Treasury Regulaon 1.408-8. The calculaon of the required minimum
distribuon is based, in part, on determining the original owner’s
designated beneciary. A designated beneciary is determined based
on the beneciaries designated as of the date of the original owner’s
death, who remain beneciaries as of September 30 of the year
following the year of the original owner’s death. Below is a summary
of the inherited IRA distribuon rules.
1. If the original IRA owner or employer-sponsored retirement plan
participant died on or after the original owner’s required beginning
date, distributions must be made to you over the longer of your single
life expectancy, or the original owner’s remaining life expectancy. If
the original owner’s designated beneficiary was not an individual or
qualified trust as defined in the Treasury regulations, the original IRA
or employer-sponsored retirement plan will be treated as having no
designated beneficiary for purposes of determining the distribution
period. If there is no designated beneficiary of the original IRA or
employer-sponsored retirement plan, distributions will commence
using the original owner’s single life expectancy, reduced by one in
each subsequent year.
2. If the original IRA owner or employer-sponsored retirement plan
participant died before the original owner’s required beginning
date, the entire amount remaining in the account will, at your
election, either
(a) be distributed by December 31 of the year containing the fifth
anniversary of the original owner’s death, or
(b) be distributed over your remaining life expectancy.
As a designated beneficiary of the original owner, you must elect
either option (a) or (b) by December 31 of the year following the
year of the original owner’s death. If no election is made, the
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 the original
owner’s death. If the original owner’s designated beneficiary
is not an individual or qualified trust as defined in the Treasury
regulations, the original IRA or employer-sponsored retirement
plan will be treated as having no designated beneficiaries for
purposes of determining the distribution period. If there is no
designated beneficiary of the original IRA or employer-sponsored
retirement plan, the entire inherited IRA must be distributed by
December 31 of the year containing the fifth anniversary of the
original owner’s death.
If you have inherited a qualified retirement plan, 403(a) annuity,
403(b) tax-sheltered annuity, or 457(b) governmental deferred
compensation plan and have either elected or defaulted to
payments under the five-year rule, you may change to a life
expectancy payment election if, by December 31 of the year
following the year of the original owner’s death, you remove a life
expectancy-based payment before rolling over the remaining assets
to your inherited IRA.
3. If you have elected to take life expectancy payments and fail to
request your required minimum distribution by December 31, we
reserve the right to do any one of the following.
(a) Make no distribution until you give us a proper withdrawal
request
(b) Distribute your entire inherited IRA to you in a single sum
payment
(c) Determine your required minimum distribution each year
based on your life expectancy calculated using the Single Life
Expectancy Table, and pay those distributions to you until you
direct otherwise
If you fail to remove a required minimum distribuon, an addional
penalty tax of 50 percent is imposed on the amount of the required
minimum distribuon that should have been taken but was not. You
must le IRS Form 5329 along with your income tax return to report
and remit any addional taxes to the IRS.
INCOME TAX CONSEQUENCES OF ESTABLISHING AN
INHERITED IRA
A. Tax-Deferred Earnings – The investment earnings of your inherited IRA
are not subject to federal income tax unl distribuons are made (or,
in certain instances, when distribuons are deemed to be made).
B. Taxation of Distributions – The taxaon of inherited IRA distribuons
depends on whether or not the original IRA owner had ever made
nondeducble IRA contribuons or aer-tax contribuons to the
employer-sponsored rerement plan. If the original owner had only
made deducble IRA contribuons or pretax contribuons to an
employer-sponsored rerement plan, all inherited IRA distribuon
amounts will be included in income.
DISCLOSURE STATEMENT
Page 12 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
If the original owner had ever made nondeducble contribuons
to any IRA or aer-tax contribuons to an employer-sponsored
rerement plan, the following formula must be used to determine the
amount of any inherited IRA distribuon excluded from income.
(Aggregate Nondeducble Contribuons)
x (Amount Withdrawn)
–––––––––––––––––––––––––––––––––– = Amount Excluded From Income
Aggregate IRA Balance
NOTE: Aggregate nondeducble contribuons include all nondeducble
contribuons made by the original owner through the end of the year of
the distribuon that have not previously been withdrawn and excluded
from income. Also note that the aggregate IRA balance includes the
total balance of all of the original owner’s IRAs as of the end of the year
of distribuon and any distribuons occurring during the year.
C. Income Tax Withholding – Any withdrawal from your inherited IRA
is subject to federal income tax withholding. You may, however, elect
not to have withholding apply to your inherited IRA withdrawal. If
withholding is applied to your withdrawal, not less than 10 percent of
the amount withdrawn must be withheld.
D. Early Distribution Penalty Tax – No 10 percent early distribuon
penalty tax will apply to the inherited IRA distribuon because the
distribuon is due to the death of the original owner.
E. Rollovers and Transfers – Your inherited IRA may receive mulple
rollover contribuons from inherited qualied rerement plans,
403(a) annuity plans, 403(b) tax-sheltered annuity plans, or 457(b)
governmental deferred compensaon plans, or mulple transfers
from inherited Tradional IRAs. In order to combine these inherited
rerement assets in the same inherited IRA, you must have inherited
the assets from the same owner and they must have been subject to
the same beneciary payment elecons and calculaon methods as
under the receiving inherited IRA. Rollover is a term used to describe a
tax-free movement of cash or other property to your inherited IRA from
a qualied rerement plan, 403(a) annuity plan, 403(b) tax-sheltered
annuity, or 457(b) eligible governmental deferred compensaon plan
that you have inherited as a beneciary. The general rollover and
transfer rules are summarized below. These transacons are oen
complex. If you have any quesons regarding a rollover or transfer,
please see a competent tax advisor.
1. Traditional IRA-to-Inherited Traditional IRA Transfers. Assets
you have inherited from a deceased Traditional IRA owner may be
transferred to an inherited IRA. A transfer must be done directly
between IRAs. You may not take constructive receipt of the assets
in a transfer.
2. Employer-Sponsored Retirement Plan-to-Inherited IRA Rollovers.
As a nonspouse or qualified trust beneficiary of a deceased
employer-sponsored retirement plan participant, you may directly
roll over any inherited assets eligible for rollover from a qualified
retirement plan, 403(a) annuity, 403(b) tax-sheltered annuity, or
457(b) governmental deferred compensation plan to an inherited
IRA. As a spouse beneficiary, you may either directly or indirectly
roll over assets from an eligible inherited employer-sponsored
retirement plan to an inherited IRA. Regardless of the method of
rollover, the IRA must be maintained as an inherited IRA, subject to
the beneficiary distribution requirements.
3.
Written Election. At the time you make a rollover to an inherited
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.
LIMITATIONS AND RESTRICTIONS
A. Deduction of Rollovers and Transfers – A deducon is not allowed for
rollover or transfer contribuons to an inherited IRA.
B. Gift Tax – Transfers of your inherited IRA assets to a beneciary made
during your life and at your request may be subject to federal gi tax
under IRC Sec. 2501.
C. Special Tax Treatment – Capital gains treatment and 10-year income
averaging authorized by IRC Sec. 402 do not apply to inherited IRA
distribuons.
D. Prohibited Transactions – If you or any successor beneciary engage
in a prohibited transacon with your inherited IRA, as described in IRC
Sec. 4975, your inherited 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 transacons are examples of prohibited
transacons with your inherited IRA. (1) Taking a loan from your
inherited IRA (2) Buying property for personal use (present or future)
with inherited IRA assets (3) Receiving certain bonuses or premiums
because of your inherited IRA.
E. Pledging – If you pledge any poron of your inherited IRA as collateral
for a loan, the amount so pledged will be treated as a distribuon and
will be included in your gross income for that year.
OTHER
A. IRS Plan Approval – Arcles I through VII of the agreement used to
establish this inherited IRA have been approved by the IRS. The IRS
approval is a determinaon only as to form. It is not an endorsement
of the plan in operaon or of the investments oered.
B. Additional Information – You may obtain further informaon on IRAs
from your District Oce of the IRS. In parcular, you may wish to
obtain IRS Publicaon 590-A, Contributions to Individual Retirement
Arrangements (IRAs), or Publicaon 590-B, Distribuons from Individual
Rerement Arrangements (IRAs), by calling 800-TAX-FORM, or by
vising www.irs.gov on the Internet.
C. Important Information About Procedures for Opening a New
Account – To help the government ght the funding of terrorism
and money laundering acvies, federal law requires all nancial
organizaons to obtain, verify, and record informaon that idenes
each person who opens an account. Therefore, when you open an
inherited IRA, you are required to provide your name, residenal
address, date of birth, and idencaon number. We may require
other informaon that will allow us to idenfy you.
D. Qualified Charitable Distributions – If you are age 70½ or older, you
may take tax-free inherited IRA distribuons of up to $100,000 per
year and have these distribuons paid directly to certain charitable
organizaons. Special tax rules may apply. For further detailed
informaon you may obtain IRS Publicaon 590-B, Distributions from
Individual Retirement Arrangements (IRAs), from the IRS or refer to
the IRS website at www.irs.gov.
Page 13 of 13
100-IH (Rev. 3/2019) (2/2020) ©2020 Ascensus, LLC
FINANCIAL DISCLOSURE
GROWTH IN THE VALUE OF YOUR IRA
The assets in your IRA account will be invested only in accordance with your (or your duly authorized agent’s) direction. Mainstar Trust does not offer
investment advice or recommend or evaluate the merits or suitability of any investment. The assets in the IRA account at any given time may contain
one or more assets depending upon which investments you have selected. It is therefore impossible to estimate the value of the IRA assets in the
account at any given future point in time. Growth in the value of the IRA account is neither guaranteed nor projected. The value will be computed by
totaling the reported fair market value of the assets in your account.
CUSTODIAN FEES
Mainstar Trust, as Custodian, may charge reasonable fees or compensation for its services and may deduct all reasonable expenses incurred by it in
the administration of your IRA account, including any legal, accounting, distribution, transfer, termination or other designated fees. Such charges are
detailed in the separate Fee Disclosure.
FINANCIAL PRIVACY
NOTICE OF FINANCIAL PRIVACY
You have chosen to do business with Mainstar Trust and we are obligated to honor that relationship with great care, beginning with the information
you have chosen to share with us. We believe that your privacy should not be compromised. At the same time, we want to offer you the services
you need to accomplish your financial goals. We believe we can do both through the privacy policy outlined below. Mainstar Trust believes that the
confidentiality and protection of customer information is one of our fundamental responsibilities. And while information is critical to providing quality
service, we recognize that one of our most important assets is our customers’ trust. Thus, the safekeeping of customer information is a priority for us.
INFORMATION THAT WE COLLECT
Information about consumers is accumulated from a variety of sources. Some information is provided to us directly by customers themselves.
We develop other data as a function of providing a product or service to a customer. Still other information is obtained from outside sources. We
will limit the use and collection of information about our customers to that which is necessary to administer our business and provide superior
service. This means that we will use information to help us identify and mitigate potential risks or loss to Mainstar Trust only in accordance with the
principles set out in this policy.
HOW WE PROTECT YOUR INFORMATION
Mainstar Trust has established procedures to ensure that your financial information is accurate, current, and complete, in keeping with reasonable
commercial standards. We also pledge to respond to requests to correct inaccurate information in a timely manner. Each Mainstar Trust employee
is required to follow our “Code of Conduct,” which states that all customer information is considered private and privileged and is to be used solely
for the purpose of providing the finest service available. We restrict access to customer information to our employees who need access to provide
services to our customers. Mainstar Trust is committed to the security of your financial and personal information. All of our operational and data
processing systems are in a secure environment thereby protecting your account information from being accessed by third parties. We maintain and
grant access to customer information only in accordance with our internal security standards.
WHAT INFORMATION WE DISCLOSE
We may disclose certain customer information to third parties that work for us or assist us in providing services to our customers (for example: Proxy
Mailing Service). We do not reveal specific information about your accounts or other personally identifiable data to parties outside our affiliated
companies for their independent use unless: 1) you request or authorize it; 2) the information is provided to help complete a transaction initiated
by you; 3) the information is provided to a reputable credit bureau or similar information reporting agency; or 4) the disclosure otherwise is lawfully
permitted or required. We do not provide account or personal information to non-affiliated companies for the purpose of independent telemarketing
or direct mail marketing of any products or services.
HOW TO CONTACT US
At Mainstar Trust, we value our customer relationships. We want you to understand how we use the information you provide and our commitment
to ensuring your personal privacy. If you have any questions about how Mainstar Trust protects your confidential information, please call us at
1-800-521-9897.
3/2020 Page 1 of 2
Summary of Accountholder Responsibilities
This summary contains important information concerning the IRA or other custodial account (“Account”) for which
Mainstar Trust (“Mainstar”) is acting as custodian. You are required to read and should understand this notice and, if
you believe necessary, share it with your legal and/or investment advisor. This summary supplements the information
contained in other documents that reflect the relationship between Mainstar and you and does not represent your contract
in its entirety. Please refer to your account agreement for all of the terms of your contract. For purposes of this summary,
the accountholder of an Account is referred to as “you”.
As custodian for your Account, Mainstar is acting solely in a custodial capacity. Mainstar has no discretion to supervise
your investments, or to advise or make any recommendation with respect to the purchase, sale or any other disposition
of any investment or as to the management of your Account, as more fully explained below.
You are Responsible for Investment Directions You acknowledge that it is your sole responsibility to direct the
investment of your Account assets and that Mainstar has no responsibility or involvement in evaluating or selecting any
assets or investments for acquisition, holding, or disposition. Mainstar has no liability for any taxes, loss, or damage that
may result from or be associated with any requested investment transaction. You must direct all investment transactions,
including the investment of earnings and the proceeds from securities sales. Your investment choices are limited to
investments that Mainstar is capable of holding in the ordinary course of its business and in accordance with its policies
and practices.
Mainstar reserves the right, in its sole discretion, to reject any investment into your Account. Certain types of investments
may pose unacceptable administrative burdens to Mainstar, and therefore, Mainstar reserves the right to reject such
investments into your Account. Administrative burdens include, but are not limited to, the inability of Mainstar’s computer,
accounting, or other systems to service the asset, the inability to obtain an asset’s value, the failure to comply with
Mainstar policies or excessive manual labor to service the asset.
Mainstar reserves the right to review any or all assets to determine if it is administratively feasible to Mainstar. Mainstar’s
review will be solely administrative in nature. Mainstar’s decision to reject an asset should in no way be construed as a
determination concerning the prudence or suitability of the investment for your Account. Likewise, acceptance of the
asset by Mainstar should not be construed as a favorable opinion as to the prudence or suitability of the investment for
your Account. Mainstar’s review of any asset you desire to purchase and hold in your Account should in no way be
construed as a due diligence” review. Mainstar does not perform any type of feasibility study, nor does it research or
confirm any financial information regarding any investment.
Asset Valuation - Mainstar will value your investment at least annually utilizing various third party pricing services.
Mainstar does not guarantee the accuracy of prices received from said third party services. Pricing contacts for illiquid
and/or non-publicly traded assets will be asked to provide all supporting documentation to substantiate the value. Year-
end valuations for illiquid and/or non-publicly traded assets must be provided to Mainstar no later than January 10 of the
following year. If a current value is not received by January 10, Mainstar will use the last market value provided to it for
all applicable tax reporting and year-end valuations. At any point after there has been a failure to provide Mainstar with
a fair market value for a period exceeding 9 months after requested, Mainstar may distribute the asset at its last reported
value to you, or after your death to your beneficiary. Mainstar has no responsibility or liability for any tax, financial, or
other consequences relating to or arising from such distribution.
Mainstar is not responsible for the timeliness or the accuracy of the fair market value for any asset. Mainstar has no
responsibility or liability for acting on a fair market value provided, or the last fair market value available if none is
provided.
Because your Account is self-directed, no projection of the growth of your Account can reasonably be demonstrated or
guaranteed. The value of your Account is solely dependent upon the performance of any asset chosen by you to fund
your Account. You bear sole responsibility for the suitability of any directed investment and for any adverse
3/2020 Page 2 of 2
consequences arising from your investments, including, without limitation, the inability of Mainstar to value or to sell an
illiquid asset, or the generation of unrelated business taxable income with respect to an asset.
All transactions are subject to any and all applicable Federal and State laws and regulations, Mainstar’s policies and
practices, and the rules, regulations, customs, and usage of any exchange, market, or clearinghouse where the
transaction is executed. In the absence of instructions from you or if your instructions are not in a form acceptable to
Mainstar, it shall hold your Undirected Cash in an account or product of an FDIC or other United States government
insured financial institution (including but not limited to Fidelity Bank, N.A.), or a United States government security, or
security that is insured or guaranteed by the United State government, unless or otherwise directed by you. The Account
is insured for up to the amount available under the FDIC insurance; amounts in the Account in excess of FDIC insurance
limits are not insured.
Mainstar’s Investment Powers and Duties are Limited Mainstar has no discretion to direct any investment in your
Account. Mainstar assumes no responsibility for rendering investment advice with respect to your Account, nor will it
offer any opinion or judgment to you on matters concerning the value or suitability of any asset or proposed investment
for your Account. Mainstar is not responsible for losses you may incur as a result of the timing of any transfer among
investments or from another trustee or custodian that are due to circumstances reasonably beyond Mainstar’s control.
Mainstar will exercise the voting rights and other shareholder rights with respect to securities in your Account, but only
in accordance with the instructions you give to Mainstar. Mainstar has no responsibility for determining the amount of or
collecting contributions to your Account; determining the amount, character, or timing of any distribution from the Account;
or determining your maximum contribution amount.
Your representative may have suggested that you retain Mainstar’s services as custodian. In those circumstances, it is
important for you to understand that your representative represents you and does not act in a representative capacity or
as agent for Mainstar. Mainstar does not employ or compensate representatives for referrals. Any statements made by
your representative with respect to Mainstar’s operations or the relationship between Mainstar and you do not in any way
bind or obligate Mainstar. The relationship between Mainstar and you is specified in the agreements that Mainstar and
you sign when your Account is established, or as those agreements may later be modified by Mainstar.
Except to the extent, if any, required by applicable law, Mainstar has no duty or obligation to monitor or make you or your
Representative aware of the receipt or non-receipt of any documents or other confirmation of purchase or sale of any
asset or the receipt or non-receipt of any funds payable to your Account (e.g., dividends, interest, or other distributions)
or to provide any other information or documentation (other than pleadings, orders, or official notices arising from any
judicial proceeding) that it may receive or become aware of with respect to any assets. Mainstar has no duty to undertake
any action with respect to the collection or enforcement of any payments or rights relating to such assets (including,
without limitation, any participation in any bankruptcy proceedings, receivership proceedings, foreclosures, or other
litigation, or the perfection or enforcement of any lien or other rights with respect to such assets) without receiving prior
instruction from you, accompanied by such undertaking of indemnification as Mainstar may request to assure Mainstar
that it will be fully reimbursed and protected with respect thereto. Without limitation on the foregoing, Mainstar may
however, if it so elects, respond and participate in any such bankruptcy proceeding, receivership proceedings or other
litigation to which it or the Account may have been made a party, and in such case you will fully indemnify and protect
Mainstar against any action taken by it in good faith. Mainstar is entitled to seek the advice of legal counsel in connection
with any matter relating to your Account or any assets, and may in good faith rely and act upon such advice.
You agree to Indemnify Mainstar You agree to indemnify and hold Mainstar harmless from and against any and all
claims (including tort or fraud), liabilities, causes of action, losses, and expenses (including, without limitation, any court
costs, attorney’s fees, and other expenses) asserted against or incurred by Mainstar as a result of, or in any way relating
to, any action requested or directed by you or your Representative.
Delegation of Investment Responsibility Mainstar may, but is not required to, permit you to delegate your investment
responsibility for your Account to another person acceptable to Mainstar by giving written notice of your delegation in a
format Mainstar prescribes. If you wish to do so, please use Mainstar’s Trading Authorization Form.
No amendment to, or waiver of, any written agreement with Mainstar will be effective except pursuant to a written
agreement executed by Mainstar’s duly authorized representative.
Any controversy arising out of or relating to your account agreement or activity shall be settled by arbitration in Johnson
County, Kansas according to the rules of The American Arbitration Association.
FEE DISCLOSURE
Effective September 1, 2018
Set Up Fee
$25
per account set up
Annual Account Fee *
IRA Traditional, Roth, SEP, SIMPLE
$110
per year
All others Individual K, EBP, HSA, Taxable
$150
per year
Annual Special Asset Fee*
Public/Traded Security, Mutual Fund, Government Security
$0
no charge
Non-traded REIT, non-traded Unit Trust, BDC
$24
annual fee, per holding
LP, LLC, Private Stock, Debenture
$36
annual fee, per holding
Private Promissory Note, Coin, Brokerage Account, Water Contract,
Liability & Other Miscellaneous Asset
$48
annual fee, per holding
Statement Fee
Electronic (available quarterly)
$0
no charge
Annual Statement
$5
per year
Quarterly Statement
$10
per year
Monthly Statement
$25
per year
Purchase/Sale/Transfer/Distribution-in-Kind/Maturity/Corporate Action
Public Asset
$8
per transaction
Private Asset (Non-Note)
$25
per transaction
Private Promissory Note
$75
per transaction
Periodic Distributions
ACH
$0
no charge
Check
$10
per check
Outgoing Cash Transfers (sent via check only)
Partial Cash Transfer
$15
per transfer
As part of Account Closing
$10
per closing
Closing Fee
Before 1
st
Anniversary
$250
per account
After 1
st
Anniversary
$150
per account
Other Fees
Recharacterization / Conversion - Assets
$50
per instance
Recharacterization / Conversion Cash Only
$25
per instance
Excess Contribution Removal
$25
per instance
Overnight Delivery
$25
per package
Note Payment Non-Serviced
$10
per principal payment
Bank Activity Wire Transfer, Overdraft, Stop Pay, Return Check
$10
per item
Statement and Tax Form Reprints
$10
per item
990 T & K-1 Mailing
$5
per mailing
Research/Special Services
$50
per hour + $25
reimbursement for mailing
* Account fees for accounts opened July 1, 2013 and after are incurred at time of set up and thereafter annually on the
anniversary of the set up date. Account fees for accounts opened prior to July 1, 2013 are incurred annually in July. Neither
account fees nor special asset fees are prorated. Special asset fees are incurred annually in July.
Invoices: Mainstar Trust will mail invoices quarterly only to accounts with fees due. Payment is due within thirty (30) days.
Other Service Fee Information: Please refer to the Section of your agreement entitled “Service Fees” for additional information
regarding fees.
Please Note: Unfunded accounts and accounts with zero value continue to incur fees until written instruction to close the
account is received and accepted by Mainstar Trust. However, Mainstar Trust may, in its sole discretion, close any account with
an account balance valued less than $250, in which case the account will incur the closing fee.
Rev 10-2018
Forward To: 214 West 9th Street
PO Box 420
Onaga, KS 66521
P) 800.521.9897
F) 913.901.4190
Distributions@mainstartrust.com
NEW ADDRESS
Accountholder Date
Phone Number Social Security Number Date of Birth
Address
Once Monthly Quarterly Annually
Direct Deposit Voided Check Attached
Information Already on File
Asset Description Quantity Distribute
Was the contribution made in a prior year?
In Kind
No (Use Code 8)
Yes (Complete the following to determine the appropriate code.)
No (Use ____Code 1 or ____ Code 7)
I instruct the Custodian to distribute from the above account:
1. The entire cash balance
2. $_________ (value of assets requested) or other
3. The minimum amount required for the tax year in which I attain age 70 1/2 and each year thereafter.
4. The entire account balance
1. I DO NOT want Federal Income Tax withheld from my Distribution.
Revised 8-2019
T. ROTH Distribution (attained 59 1/2 or DEATH)
*If Excess Contribution Removal was selected please answer the following
1 or S. SIMPLE Early Distribution
(under 59 1/2 IRS Penalty Exception)
Please Print or Type
WITHDRAWAL REQUEST
METHOD OF PAYMENT
DISTRIBUTION REASONS
WILL DISTRIBUTION CLOSE ACCOUNT?
Is contribution being removed prior to the tax return due date of the year for
which the contribution was made?
Yes No
Account Number
City / State / Zipcode
Cash Distribution(s) to be made beginning on
J. ROTH Early Distribution (under 59 1/2)
SIGNATURE REQUIRED
DISTRIBUTION AMOUNT
Yes (Use Code P)
1. IRA Early Distribution (under 59 1/2 IRS Penalty Applies)
(MM/DD/YYYY)
I understand that I am still liable for the payment of Federal Income Tax on the amount received. I also understand that I may be subject to Federal Income Tax
penalties under the estimated tax payment rules if my estimated tax payments and withholding are insufficient.
NOTE: If you elect to withhold federal income tax and are a resident of Kansas, you may voluntarily elect to have state income tax withheld at 5% or greater.
2. I WANT % or $ of Federal Income Tax (not less than 10% or equivalent dollars) withheld from my Distribution.
7. IRA and SIMPLE Normal Distribution (attained 59 1/2)
8. IRA Excess Contribution Removal*
SUBSTITUTE FORM W-4P WITHHOLDING CERTIFICATE FOR PENSION PAYMENTS
Accountholder's Signature
Checks and/or securities will be issued to you unless indicated.
I direct the Trustee or Custodian to make a distribution from the IRA for the
following reason:
IRS Regulations require the custodian to withhold at least 10% of distribution if left blank.
Has it been 2 years since initial funding? Yes No
2. IRA and SIMPLE Early Distribution - 72t payments
4. IRA and SIMPLE Death
5. IRA Prohibited Transaction
If left blank, request will be processed as prior to 2 years being satisfied
I certify that I am the proper party to receive payment(s) from this account and that all information provided by me is true and accurate. I further certify that
no tax advice has been given to me by the Custodian and that all decisions regarding this withdrawal are my own.
Clear Form
Revised 8-2018
I hereby authorize Mainstar Trust to electronically deposit money into the account referenced at the financial institution
named below. This authorization is to remain in effect until I notify Mainstar Trust in writing on a Direct Deposit
Authorization form of a cancellation or change. I understand it is my responsibility to verify that the money in the
correct amount is credited to my account and to notify Mainstar Trust of any discrepancies. In the event money is
deposited erroneously into my account, I authorize Mainstar Trust to debit my account not to exceed the amount of the
erroneous credit. I hereby agree to hold Mainstar Trust harmless from any error or omissions Mainstar Trust may
make in depositing or failing to deposit the requested amount to the designated account.
Account Information: Attach a voided check or a savings account deposit slip.
Please verify the ABA Routing Number with your financial institution for your account. These are the first nine (9)
digits on your check or deposit slip. The accountholder is responsible for the accuracy of the ABA Routing Number.
ATTACH SAVINGS DEPOSIT SLIP HERE
Accountholder Signature Date
Print Name Mainstar Trust Account Number
Forward To: 214 W. 9th Street
PO Box 420
Onaga, KS 66521-0420
P) 800.521.9897
F) 913.901.4190
Distributions@mainstartrust.com
Direct Deposit Authorization
Bank Name Bank Phone
ATTACH VOIDED CHECK HERE
ABA Routing Number
Account Number
123456789
Routing Number
1001001239
Account Number
SALE AUTHORIZATION
Forward To: 214 West 9
th
Street
PO Box 420
Onaga, KS 66521
P) 800.521.9897
F) 913.901.4190
Sales@mainstartrust.com
ACCOUNT DETAILS
Account Name:
Account Number:
PUBLICLY TRADED ASSET
(Stock, Bond, Government Security)
Asset Name:
Ticker:
Units/Shares to Sell:
CUSIP:
Net Dollar Value to Sell:
Sell at Market Price
Mainstar to facilitate with broker of its choice/proceeds of sale will be net of broker commissions
Limit Order Price Per Share: $
Order will not be executed unless the limit order price is met; Mainstar to facilitate with its broker of choice/proceeds of sale
will be net of broker commissions
Sell Already Executed by Rep/Broker Who Placed Trade:
If this box is selected, Mainstar Trust will not facilitate the trade
OTHER ASSET
(Annuity, Mutual Fund, Private Stock, LLC, LP, REIT, Etc.)
Asset Name:
Ticker:
Units/Shares to Sell:
CUSIP:
Net Dollar Value to Sell:
Special Instruction
Describe below any documents or instruments to be furnished by Mainstar Trust on your behalf in order to effect the sales transaction described above (other than a bond,
stock certificate or other instrument evidencing the asset to be sold)
Direction of Sale
I, the undersigned, hereby acknowledge, agree and represent: (1) that it is my sole responsibility to direct the sale of account assets and that Mainstar
Trust, acting as custodian of the account, has no responsibility, discretion, or involvement in evaluating or selecting any assets for disposition, and no
liability for any loss or damage that may result from or be associated with the transaction requested her ein; (2) to indemnify and hold Mainstar Trust
harmless from and against any and all claims, liabilities, causes of action, losses and expenses (including, without limitation, any court costs,
attorney's fees and other expenses) asserted against or incurred by Mainstar Trust as a result of or in any way relating to any action I request or direct
(whether in this Sale Authorization or otherwise); (3) that other than maintaining custody, Mainstar Trust has no obligation to take any action with
respect to the assets sold pursuant to this Sale Authorization and that Mainstar Trust may condition any further action it may agree to undertake upon
its receipt from me, in form satisfactory to it, of written instruction to undertake such action, together with such further agreement or undertaking of
indemnification from me as Mainstar Trust may reasonably request; (4) that any action I request or direct (whether in this document or otherwise) is
subject to all terms and conditions of the Account Agreement as amended from time to time. (5) Any sales of multiple tax lots will be sold using the
First In First Out (FIFO) inventory relief method.
Applicable to an IRA: (1) that the determination of whether the transaction directed hereby is a prohibited transaction under Internal Revenue Code
(“IRC”) Section 4975 depends on the facts and circumstances surrounding this sale and further that Mainstar Trust makes no determination as to whether
a transaction is a prohibited transaction; (2) that I have consulted with such advisors as I deem necessary and appropriate and have determined that
this transaction is not a prohibited transaction and that the contra-party or any affiliate thereof is not a "disqualified person" as defined in IRC Section 4975
(e)(2); (3) that engaging in a prohibited transaction will result in a taxable distribution equal to the fair market value of my account and may incur certain
penalties and further that if such a deemed distribution takes place prior to my attaining age 59 1/2, an additional 10% premature distribution penalty may
be imposed by the IRS; and (4) that Mainstar Trust, in order to protect its interests and in its sole discretion, may require me to obtain an opinion of
counsel satisfactory to Mainstar Trust that this transaction does not constitute a prohibited transaction.
SIGNATURE
Signature of Accountholder,
Trustee or Authorized
Account Representative:
Date:
11/2019
Please Print or Type
Clear Form
Chrome Web Store
It looks like you haven't installed the Fill Chrome Extension Add to Chrome