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SIMPLE IRA

Employee Guide

Table of contents

1 | SIMPLE IRA Application

To open your SIMPLE IRA, complete the application and sign

in Section 7.

6 | SIMPLE IRA Custodial Agreement

This document should be read prior to opening the account.

It denes the provisions of the American Funds IRA.

12 | SIMPLE IRA Disclosure Statement

This document explains the nancial and tax consequences

of contributions to and distributions from the IRA.

Fund information

For a quick guide to fund names, numbers, minimums, and share class

restrictions, go to www.capitalgroup.com/fundguide.

Financial professional

If a signature guarantee is not required and you have prior approval from

both American Funds and your home ofce, you can complete and submit

these forms, signed electronically. Once the application has been signed,

you must print and deliver a copy of these forms to the IRA owner.

To establish your account:

1. Review the following

documents: the Summary

Description, which explains

eligibility requirements and plan

provisions; the Notification to

Eligible Employees, which

specifies your employer’s

contribution amount; fund

prospectuses; and this guide.

2. Determine how much of your

salary you want to save in your

SIMPLE IRA and which American

Funds you want to invest in.

Consult your plan’s financial

professional for assistance.

3. Complete the SIMPLE IRA

Application and any other

applicable forms. You’ll need to

list the American Funds you want

to invest in and what percentage

of your contributions you’d like

to invest in each ($25 minimum

per fund). Make a copy of the

application for your files.

4. On the Salary Deferral Election

provided by your employer,

indicate how much of your

salary you want to save in your

SIMPLE IRA.

5. Return all completed paperwork

to your employer.

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Important account information

Eligibility

In general, if you expect to earn at least $5,000 in the current

calendar year AND you’ve earned at least $5,000 during any

two prior calendar years, you’re eligible to participate in your

company’s SIMPLE IRA plan. Your employer may have less

restrictive requirements, which would be outlined in your

plan’s Summary Description.

Your contributions

You decide how much of your pay, up to IRS limits,

you want

to contribute. Your contributions will be deducted directly

from your paycheck. You can make:

• Before-tax contributions. Because you’re contributing

money from your paycheck before income taxes are

deducted, you reduce your annual taxable income in the

year the contributions are made. Before-tax contributions

allow your savings to accumulate tax-deferred. In other

words, you don’t pay taxes on what you save or on

your assets as they grow until you take the money out

at retirement.

• Additional catch-up contributions. If you’re 50 or older,

you can contribute an additional amount

before taxes.

* Se e th e Disclosure Statement in the back of this guide for current

contribution limits.

Your employer’s contributions

As described in your plan’s Summary Description, your

employer will make one of two types of contributions:

• Matching. Your employer may match any contributions you

make, dollar for dollar, up to 3% of eligible compensation.

• Nonelective. Your employer may contribute up to 2% of

your eligible compensation to your SIMPLE IRA account —

regardless of whether you make any contributions. Review

the Notification to Eligible Employees for the maximum

compensation amount used to calculate contributions.

Vesting

The money that you and your employer contribute to the plan

is vested immediately — in other words, it’s yours to keep.

Your investment options

You’re in control: You select the American Funds you believe

are most appropriate for your financial needs and goals. When

choosing your investments, it’s a good idea to consult your

financial professional.

Monitoring your account

You can monitor your investment results with:

• Your quarterly statement

• The American Funds 24-hour automated phone service

(

800

)

325-3590

• www.capitalgroup.com

Making changes to your account

You’ll receive a welcome package including your new

account number. Once you receive it, we encourage you to

visit www.capitalgroup.com/getstarted to set up online

account access.

This will enable you to:

• Sell and exchange shares online

• View current and past account balances as well as dividend

and capital gain information

• Manage your account information

• Sign up for electronic delivery of tax forms, annual and

semiannual reports, quarterly statements and prospectuses

Withdrawals

Any money you take out of your SIMPLE IRA is subject to

ordinary income tax, and if you withdraw the money before you

reach 59½, a 10% federal tax penalty may apply. If withdrawals

are made during the first two years of participation in the plan

and you’re under 59½, a 25% tax penalty may apply.

To learn more about your SIMPLE IRA plan, please contact

your employer or your plan’s financial professional.

Have questions?

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SIMPLE IRA

Application

To be completed by employer

( )

Ext.

Name of company Employer contact Daytime phone

Company address City State ZIP

Check A or B.

□

New plan (must be accompanied by a copy of the employer’s completed and signed SIMPLE IRA Adoption Agreement)

□

Existing plan (provide Plan ID for reference)

To be completed by employee

Information about you

Important: This section must be completed, and the application must be signed in Section 7 before an account can be established.

Please type or print clearly.

– –

SSN of SIMPLE IRA owner Date of birth (mm/dd/yyyy) Country of citizenship of SIMPLE IRA owner

First name MI Last

Residence address (physical address required — no P.O. boxes

) City State ZIP

Mailing address (if different from residence address) City State ZIP

( )

Email address* Daytime phone

* Your privacy is important to us. For information on our privacy policies, visit www.capitalgroup.com.

Virginia Service Center

American Funds Service Company

P.O. Box 2560

Norfolk, VA 23501-2560

Overnight mail address

5300 Robin Hood Rd.

Norfolk, VA 23513-2430

Fax (888) 421-4371

Please mail or

fax this form to

the appropriate

service center.

(If you live outside

the U.S., mail the

form to the Indiana

Service Center.)

If you have questions or require more information, contact your nancial professional or call American Funds Service Company at

(

800

)

421-4225.

Indiana Service Center

American Funds Service Company

P.O. Box 6164

Indianapolis, IN 46206-6164

Overnight mail address

12711 N. Meridian St.

Carmel, IN 46032-9181

Fax (888) 421-4371

Clear and reset form

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SIMPLE IRA

Application

Financial professional

This section must be lled out completely by the nancial professional(s).

We authorize American Funds Service Company

(

AFS

)

to act as our agent for this account and agree to notify AFS of purchases made under

a Statement of Intention or Rights of Accumulation. If applicable, we have provided a copy of our SEC Form CRS to the investor named on

this application.

( )

Ext.

Name

(

)

of nancial professional

(

)

Professional/team ID # Branch number Daytime phone

Branch address City State ZIP

Name of broker-dealer rm

(

as it appears on the Selling Group Agreement

)

Signature of person authorized to sign for the broker-dealer — required

Investment instructions

I elect to invest my contributions in Class A shares of the American Funds Target Date Retirement Series

fund with the year

closest to my 65th birthday unless I complete the SIMPLE IRA Transfer Election form or elect otherwise below.

If you wish to systematically transfer your contributions to another custodian, investments must be in the money market fund.

You'll need to complete the SIMPLE IRA Transfer Election form, available from your nancial professional.

□

Invest 100% of my contributions in Class A shares of the American Funds Target Date Retirement Series

fund with the year closest

to my 65th birthday. New funds for future retirement dates may be added to the series as needed.

Target Date Fund 2065

(designed for those born 1998 or later) Target Date Fund 2035 (designed for those born 1968–1972)

Target Date Fund 2060 (designed for those born 1993–1997) Target Date Fund 2030 (designed for those born 1963–1967)

Target Date Fund 2055 (designed for those born 1988–1992) Target Date Fund 2025 (designed for those born 1958–1962)

Target Date Fund 2050 (designed for those born 1983–1987) Target Date Fund 2020 (designed for those born 1953–1957)

Target Date Fund 2045 (designed for those born 1978–1982) Target Date Fund 2015 (designed for those born 1948–1952)

Target Date Fund 2040 (designed for those born 1973–1977) Target Date Fund 2010 (designed for those born 1947 or earlier)

□

Invest my contribution as instructed below. For a quick guide to fund names, numbers, minimums and share class restrictions, go to

www.capitalgroup.com/fundguide. If you do not select a share class, this investment will be placed in Class A shares. (The percentage

you elect must equal the minimum of $25 per fund. You may customize your investment strategy by selecting a combination of funds.)

Select a share class:

□

Class A OR

□

Class C

Fund name or number Percentage Fund name or number Percentage

(whole % only) (whole % only)

% %

Total %

Notes: • To make changes to your fund selections and/or percentage allocations in the future, notify your employer.

• To rebalance funds or set up an automatic exchange plan, visit www.capitalgroup.com.

• To add bank information for future redemption requests, include a completed Add/Update Bank Information form.

• The $10 setup fee will be deducted from your account.

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SIMPLE IRA

Application

 Beneciarydesignation

We encourage you to consult a professional regarding the tax-law and estate planning implications of your beneciary designation. All stated

percentages must be whole percentages

(

e.g., 33%, not 33.3%

)

. If the percentages do not add up to 100%, each beneciary’s share will be based

proportionately on the stated percentages. When percentages are not indicated, the beneciaries’ shares will be divided equally.

Notes: • Your spouse may need to sign in Section 6. If you wish to name more than one trust or entity, customize your designation or need

more space, attach a separate page. Include the name, address, relationship, date of birth or trust, SSN/TIN and percentage for

each beneciary.

• If you name a trust as beneciary, provide the full legal name of the trust. Example: “The Davis Family Trust.”

A. Primary Beneciary

(

ies

)

: If any designated Primary Beneciary

(

ies

)

dies before I do, that beneciary’s share will be divided proportionately

among the surviving Primary Beneciaries unless otherwise indicated. If no Primary Beneciaries survive me, assets will be paid to the

named Contingent Beneciaries, if any.

First name (print) MI Last name Sufx

Name of trust or other entity (print)

Address City State ZIP

□ □ □ □ □ %

Spouse* Child of owner Other person Trust Other entity Date of birth or trust

(

mm/dd/yyyy

)

SSN/TIN Whole % only

First name (print) MI Last name Sufx

Address City State ZIP

□ □ □ %

Spouse* Child of owner Other person Date of birth

(

mm/dd/yyyy

)

SSN Whole % only

First name (print) MI Last name Sufx

Address City State ZIP

□ □ □ %

Spouse* Child of owner Other person Date of birth

(

mm/dd/yyyy

)

SSN Whole % only

First name (print) MI Last name Sufx

Address City State ZIP

□ □ □ %

Spouse* Child of owner Other person Date of birth

(

mm/dd/yyyy

)

SSN Whole % only

* By naming my spouse as a beneciary, I elect to treat such spouse as a beneciary while we are married. Effective immediately upon the divorce, annulment

or other lawful dissolution of my marriage, the designation shall be null and void, unless after the dissolution of my marriage I afrmatively elect to name my

former spouse as my non-spouse beneciary.

Continued on next page

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SIMPLE IRA

Application

 Beneciarydesignation

(continued)

Important: Section 4-A must be completed prior to completing Section 4-B.

B. Contingent Beneciary

(

ies

)

: If no Primary Beneciary survives me, pay my benets to the following Contingent Beneciary

(

ies

)

If any designated Contingent Beneciary

(

ies

)

dies before I do, that beneciary’s share will be divided proportionately among the surviving

Contingent Beneciaries unless otherwise indicated. If no Contingent Beneciaries survive me, assets will be paid according to the

Custodial Agreement default designation.

First name (print) MI Last name Sufx

Name of trust or other entity (print)

Address City State ZIP

□ □ □ □ □ %

Spouse* Child of owner Other person Trust Other entity Date of birth or trust

(

mm/dd/yyyy

)

SSN/TIN Whole % only

First name (print) MI Last name Sufx

Address City State ZIP

□ □ □ %

Spouse* Child of owner Other person Date of birth

(

mm/dd/yyyy

)

SSN Whole % only

First name (print) MI Last name Sufx

Address City State ZIP

□ □ □ %

Spouse* Child of owner Other person Date of birth

(

mm/dd/yyyy

)

SSN Whole % only

First name (print) MI Last name Sufx

Address City State ZIP

□ □ □ %

Spouse* Child of owner Other person Date of birth

(

mm/dd/yyyy

)

SSN Whole % only

First name (print) MI Last name Sufx

Address City State ZIP

□ □ □ %

Spouse* Child of owner Other person Date of birth (mm/dd/yyyy) SSN Whole % only

* By naming my spouse as a beneciary, I elect to treat such spouse as a beneciary while we are married. Effective immediately upon the divorce, annulment

or other lawful dissolution of my marriage, the designation shall be null and void, unless after the dissolution of my marriage I afrmatively elect to name my

former spouse as my non-spouse beneciary.

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SIMPLE IRA

Application

 Declinetelephoneandwebsiteexchangeand/orredemptionprivileges (optional)

Telephone and website exchange and redemption privileges will automatically be enabled on your account unless you decline below.

To decline these privileges, read the individual statements and check the applicable box(es).

Note:

If either option is declined, no one associated with this account, including your nancial professional, will be able to request exchanges

or redemptions by telephone or via the website. Requests would need to be submitted in writing.

Exchanges: I DO NOT want the option of using the telephone and website exchange privilege.

□

Redemptions: I DO NOT want the option of using the telephone and website redemption privilege.

□

 Spousalconsenttobeneciarydesignation—ifrequired

If you are married to the IRA owner and he or she designated a Primary Beneciary

(

ies

)

other than you, please consult your nancial professional

about the state-law and tax-law implications of this beneciary designation, including the need for your consent.

I am the spouse of the IRA owner named in Section 1, and I expressly consent to the beneciary(ies) in Section 4 or attached.

/ /

Name of spouse of IRA owner

(

)

Signature of spouse of IRA owner Date

(

mm/dd/yyyy

)

 Yoursignature

I hereby establish an American Funds SIMPLE IRA, appoint Capital Bank and Trust Company

(CB&T) as Custodian and acknowledge

that I have received, read and agree to the SIMPLE IRA Custodial Agreement. I understand that I and all shareholders at my address will

receive one copy of fund documents (such as annual reports and proxy statements) unless I opt out by calling (800) 421-4225.

I have read and agree to the terms of the current prospectus(es) of the funds selected in the investment instructions section and consent

to the $10 setup fee and the annual custodial fee (currently $10). I understand that any dividends and capital gains will be reinvested for

all my fund selections. I understand that amounts invested may not be redeemed for 7 business days.

I agree to the conditions of the telephone and website exchange/redemption authorization unless I checked the box(es) in Section 5 and

agree to indemnify and hold harmless CB&T; any of its afliates or mutual funds managed by such afliates; and each of their respective

directors; ofcers; employees; and agents for any loss, expense or cost arising from such instructions once the telephone and website

exchange and redemption privileges have been established.

I certify, under penalty of perjury, that my Social Security number in this application is correct. I authorize the nancial professional assigned

to my account to have access to my account and to act on my behalf with respect to my account. If applicable, I acknowledge that I have

received and read a copy of my nancial professional's SEC Form CRS. I designate the beneciary(ies) specied in this application and certify

that, if I am married and have not named my spouse as Primary Beneciary, I have consulted my nancial professional about the need for

spousal consent. If no beneciary is named, the Custodial Agreement default will apply.

I understand that to comply with federal regulations, information provided on this application will be used to verify my identity. For example,

my identity may be veried through the use of a database maintained by a third party. If CB&T is unable to verify my identity, I understand

it may need to take action, possibly including closing my account and redeeming the shares at the current market price, and that such action

may have tax consequences, including a tax penalty.

If this document is signed electronically, I consent to be legally bound by this document and subsequent terms governing it. The electronic copy

of this document should be considered equivalent to a printed form in that it is the true, complete, valid, authentic and enforceable record of the

document, admissible in judicial or administrative proceedings. I agree not to contest the admissibility or enforceability of the electronically stored

copy of this document.

/ /

Signature of SIMPLE IRA owner Date (mm/dd/yyyy)

For fax and mailing instructions, see the maps on page 1.

This document may not be signed using Adobe Acrobat Reader’s "ll and sign" feature.

SIMPLE IRA

Custodial Agreement

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6 of 13

Section 1 — Denitions

As used in this Custodial Agreement (“Agreement”)

and the related Application, the following terms shall

have the meaning set forth below unless a different

meaning is plainly required by the context:

(a) “Account” means the SIMPLE IRA established

under this Agreement. “SIMPLE IRA” means the

Account established in accordance with Code

§408(p), which is designated as a SIMPLE IRA

upon establishment and which shall at all times

be nonforfeitable.

(b) “Application” means the accompanying

instrument executed by or on behalf of the

Participant (or in the case of a minor, by the

parent or legal guardian of the Participant)

under which the Participant establishes the

Account as a SIMPLE IRA.

preceded by the words “Primary,” “Contingent,”

“Designated,” “Original” or “Subsequent,” means

the person or entity (including a trust or estate)

designated on the form described in Section 8(a),

or otherwise entitled to receive the Account after

the death of the Participant. “Primary Beneciary”

means the beneciary designated by the

Participant to receive the Account after the death

of the Participant. “Contingent Beneciary” means

the beneciary designated by the Participant to

receive the Account after the death of the

Participant provided that no Primary Beneciary

survives the Participant. “Designated Beneciary”

means the person whose life expectancy is used

for the measuring period for required minimum

distributions under Section 8 of this Agreement.

“Original Beneciary” and “Subsequent

Beneciary” are dened in Section 8(m)

of this Agreement.

(d) “Child” or “Children” means the descendants

in any degree of the designated person and

include legally adopted children who are adopted

during their minority only and descendants of

such legally adopted children.

(e) “Code” means the Internal Revenue Code of

1986, as amended.

(f) “Compensation” shall have the meaning as

dened under the provision of the SIMPLE IRA

Plan as established by the employer.

(g) “Custodian” means Capital Bank and Trust

Company or any successor thereto.

(h) “Disabled” means disabled as dened in

Code §72(m)(7).

(i) “Fund” means shares of one or more of the

investment companies for which the Custodian

or an afliate serves as investment adviser.

(j) “Issue” of a person means all of his or her

lineal descendants of all generations.

(k) “Participant” means any employee of an

employer who has met the eligibility

requirements for participation in the plan

and who establishes a SIMPLE IRA under

this Agreement.

(l) “Required Beginning Date” means April 1

following the calendar year in which the

Participant reaches age 70½.

assets from another SIMPLE IRA the Participant

may have. No other contributions will be

accepted.

(b) Transfer. Prior to the expiration of the two-year

period beginning on the date the Participant rst

participated in any SIMPLE IRA Plan maintained

by the Participant’s employer, the Participant may

transfer all or any portion in his or her Account

into a SIMPLE IRA. After the expiration of this

two-year period, the Participant may transfer or

roll over funds to any IRA of the Participant that

is qualied under Code §408(a), (b), (p), 408(A),

or to another eligible retirement plan described

in Code §402(c)(8)(B).

A rollover or trustee-to-trustee transfer from this

SIMPLE IRA into another IRA or annuity before

two years of participation will not be considered a

valid rollover or tax-free transfer, but a distribution

from this SIMPLE IRA and a contribution to the

other IRA or annuity that does not qualify as a

rollover contribution.

or Shares. Rollover and Transfer Contributions

must be received by the Custodian in the form

of cash, Fund shares or any combination thereof.

The Custodian may require that each Rollover

and Transfer Contribution be accompanied by

a properly completed transmittal form provided

by the Custodian.

Section 4 — Investment of Account

(a) Investment Instructions. Pursuant to the

Participant’s written instructions, or the written

instructions of the employer on behalf of the

Participant under a SIMPLE IRA Plan, each

cash contribution to the Account shall be applied

to the purchase of shares of the Fund or Funds

designated by the Participant or the Employer on

behalf of the Employee at the applicable offering

price in accordance with the terms of such Fund’s

prospectus or any other investment permitted

under Code §408 or 408A, that is acceptable to

the Custodian. If a Fund is designated but there

is no share class indicated, the default will be

A shares. The Participant, or if the Participant

is deceased, the Beneciary, may from time to

time change the designation of the investments

of Account assets hereunder and may instruct

the Custodian to exercise the exchange privilege

set forth in the Fund’s prospectus.

(b) Reinvestment of Dividends and Capital Gain

Distributions. All dividends and capital gain

distributions shall be reinvested. Once the

Participant has reached age 59½, the Participant

may request that dividends and capital gain

distributions be distributed from the Account.

shall be invested in life insurance contracts.

(d) Account Assets. The assets of the Account will

not be commingled with other Custodian property

and the purchase of Fund shares shall not be

considered commingling.

(m) “Rollover Contribution” means an amount

contributed to the Account that is derived from:

(i)

all or any portion of a distribution from

another SIMPLE individual retirement

account established under Code §408(p);

(ii)

all or any portion of a distribution from

another individual retirement account

established under Code §408(a) or an

individual retirement annuity established

under Code §408(b) (but not from a Roth

individual retirement account established

under Code §408A) which is made after the

two-year period described Code §72(t)(6); or

(iii) all or any portion of an eligible rollover

distribution as dened in Code §§402(c),

403(a)(4), 403(b)(8), or 457(e)(16) and the

regulations thereunder which is made after

the two-year period described in section

Code §72(t)(6).

Such Rollover Contributions must be paid

into the Account not later than the 60th day

following the receipt of such distribution by

the Participant. If property other than money is

distributed from a plan, the Rollover Contribution

may consist of the property distributed, subject

to the consent of the Custodian. Alternatively,

the property may be sold and its proceeds rolled

over. The Participant can make only one rollover

from an IRA to another (or the same) IRA in any

12-month period, regardless of the number of

IRAs owned. This limit will apply by aggregating

all of a Participant’s IRAs, including SEP and

SIMPLE IRAs as well as traditional and Roth

IRAs, effectively treating them as one IRA for

purposes of the limit.

(n) “Taxable Year” is the Participant’s tax year for

federal income tax purposes.

Section 2 — Establishment of Account

By executing the Application, the Participant thereby

establishes the Account, which shall hold all assets

deposited with the Custodian, for the exclusive benet

of the Participant and the Participant’s Beneciaries.

A parent or legal guardian may execute the

Application on behalf of a Participant who is a minor.

In the event a SIMPLE IRA is established for a

minor, the parent or legal guardian is authorized,

on behalf of such minor, to take whatever actions

are afforded the Participant of the SIMPLE IRA

under the terms of this Agreement. The parent or

legal guardian, by establishing an Account on behalf

of a minor, agrees to indemnify and hold harmless

the Custodian and its afliates from any losses

including court costs and reasonable attorney fees

incurred by the Custodian or its afliates as a result

of establishing the Account in the name of the minor.

Section 3 — Contributions and Transfers

(a) Maximum Permissible Amount. This SIMPLE

IRA will accept only cash contributions made by

an employer on behalf of the Participant under a

SIMPLE IRA Plan that meets the requirements

under Code §408(p) and any rollover contribution

dened in Section 1(m) above or a transfer of

Please retain for your records.

Internal Revenue Service Letter Serial No. K101971b

SIMPLE IRA

Custodial Agreement

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incurred by the Custodian in the performance of its

duties, including fees for legal services rendered

to the Custodian, shall either be reduced from

contributions and charged to the Account, or shall

be paid by redeeming or surrendering the necessary

assets credited to the Account, unless otherwise

paid by the Participant, but until paid shall constitute

a lien upon the assets of the Account.

Section 7 — Withdrawal of Account

Assets

(a) Taxation of Withdrawals From SIMPLE IRAs.

The same tax results apply to distributions from

a SIMPLE IRA as to an IRA described in Code

§408(a) or (b). Any withdrawals made from the

Participant’s Account are includable in the

Participant’s gross income.

(b) Premature Distribution Penalties. A special

rule applies to a payment or distribution received

from a SIMPLE IRA during the two-year period

beginning on the date on which the Participant

rst participated in any SIMPLE IRA Plan

maintained by the Participant’s employer.

Under this special rule, the additional tax on early

distributions under Code §72(t) provides that the

rate of additional tax is increased from 10% to

25%. If one of the exceptions, listed below, to

the application of tax under Code §72(t) applies,

the exception also applies to distributions made

within the two-year period and the 25% additional

tax does not apply.

Penalties. A distribution of all or part of the

Account may be made to the Participant upon

the Participant’s request; however, tax penalties

apply to amounts included in income that are

treated as premature distributions, other than:

(i)

payments that are part of a series of

substantially equal periodic payments

that may be based on, but not limited to,

the following three methods: life expectancy,

amortization (using a rate between 80% and

120% of the long-term applicable federal

rate) or annuitization (using an acceptable

mortality table including but not limited to

UP’84, ’83 IAM or Annuity 2000);

(ii)

the return of excess contributions;

(iii) payments for certain catastrophic

medical expenses;

(iv)

payments made after an extended

period of unemployment to cover health

insurance premiums;

(v)

payments made to a Participant who

has reached age 59½ or is Disabled;

(vi) payments made on account of the death

of the Participant;

(vii)

payments for expenses associated with

a rst-time home purchase in accordance

with subparagraph (F) of Code §72(t)(2);

(viii)

payments for post-secondary education

costs of the immediate family members

and grandchildren of the Participant; or

(ix)

a levy under Code §6331.

If the Participant should become Disabled, the

Account may be distributed to the Participant

commencing as of the date of determination of

such disability.

Section 5 — The Custodian

(a) Share Accumulation Accounts and

Systematic Withdrawals. The Custodian,

or its designated agent (“Agent”), is authorized

to establish share accumulation accounts and

systematic withdrawal plans (as described in

the prospectus of the Fund, and as customarily

entered into with other shareholders of the Fund)

for the purpose of receiving and investing the

contributions made hereunder and reinvesting

income dividends and capital gain distributions.

The Custodian is not liable for any act or failure

to act of such Agent.

(b) Safekeeping of Assets. The Custodian is

authorized to deposit certicates for shares with

itself or the Agent for the purpose of safekeeping

or otherwise or to permit shares to be credited

to the Custodian. The Custodian shall not be

obligated to secure certicates for such shares

and in its discretion may permit such certicates

to remain unissued. Fund shares and other

assets acquired by the Custodian shall be

owned by and registered in the name of the

Custodian or its registered nominee.

to sell or redeem shares at the direction of the

Participant, the Beneciary or the legal

representative of the Participant or Beneciary.

(d) Statements of Account. Periodically the

Custodian shall furnish to the Participant,

or the Beneciary of a deceased Participant,

a statement of the Account, showing amounts

invested or redeemed and the number and price

of such shares. The Custodian shall furnish an

annual calendar-year statement to the Participant

or Beneciary setting forth receipts, investments,

disbursements, and other transactions. Upon

expiration of 45 days after forwarding such

statement, the Custodian shall be forever

released and discharged from all liability and

accountability to anyone with respect to its acts,

transactions, duties, obligations, or responsibilities

as shown in or reected by such statement,

except with respect to any such acts or

transactions as to which the Participant or

Beneciary shall have led written objections

with the Custodian within such 45-day period.

(e) Notices and Proxies. The Custodian shall

furnish to the Participant, either directly or

indirectly, notices, prospectuses, nancial

statements, proxies, and proxy-soliciting

materials relating to all assets credited to the

Account. Any notication to the Participant

provided for under this Agreement shall be

effective if sent by rst class mail to the

Participant’s last address of record. The

Custodian shall vote any shares held in the

Account in accordance with the timely written

instructions of the Participant. If the Custodian

receives no such written instructions from the

Participant, the Custodian may vote the shares

of each fund held in the Account in the same

proportion as the votes of the other shareholders

of the fund(s) held in the Account.

(f) Government Reports. The Custodian shall le

such reports relating to the Account with the

appropriate government agency as the Custodian

is required to le by law. The Participant shall

furnish to the Custodian the information

necessary to complete such reports.

(g) No Liability for Investments. The Custodian

shall not be liable to the Participant or

Beneciaries for any depreciation or similar

loss of assets or for the failure of the Account to

produce any or larger net earnings. The Custodian

shall not be liable for any act or failure to act of

itself, its agents, employees or attorneys, so

long as it exercises good faith, is not guilty

of negligence or willful misconduct, and has

selected such agents, employees and attorneys

with reasonable diligence.

The Custodian shall have no responsibility for

the determination or verication of the offering

or redemption prices or net asset values of Fund

shares, and shall be entitled to rely for such

prices and net asset values upon statements

issued by or on behalf of the Fund.

The Custodian shall have no duty to inquire into

the investment practices of the Fund; the Fund

shall have the exclusive right to control the

investment of its assets in accordance with its

stated policies; and the investments shall not be

restricted to securities of the character now or

hereafter authorized for trustees by law or rules

of court. The Custodian shall not be liable or

responsible for any omissions, mistakes, acts or

failures to act of the Fund, or their successors,

assigns or agents.

(h) No Liability for Contributions and

Distributions. The Custodian shall not be

responsible in any way for the purpose or

propriety of any distribution made pursuant to

instructions satisfactory to the Custodian, the

collection of contributions provided for hereunder,

or any action or nonaction taken pursuant to the

request of the Participant, Beneciary or legal

representative of the Participant. The Custodian

shall have no duty to determine whether

contributions satisfy the applicable limits

referenced in Section 3 of this Agreement.

The Custodian shall have no obligation to

determine the amount of any excess contribution

and the net income attributable thereto. If the

Participant has authorized telephone exchanges

under the Application or other form provided

by the Custodian, the Custodian may make

investment exchanges for this Account or any

other account with the same registration in

accordance with the instructions received from

any person by telephone, telecopier or other

electronic means and shall have no obligation

to question any instructions so received or

liability for the transactions it performs pursuant

to such instructions.

The Custodian will provide to the Participant

information concerning required minimum

distributions as prescribed by the Commissioner

of Internal Revenue.

Section 6 — Fees and Expenses

The Custodian shall receive fees for its services

hereunder in such amount as it shall establish from

time to time, including, but not limited to, services

rendered for the processing of distribution requests

and Beneciary claims. In addition, the Custodian

shall receive reasonable fees for any unusual or

special services rendered. The compensation of the

Custodian, any transfer taxes incurred in connection

with the investment and reinvestment of the assets

of the Account, and all administrative expenses

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is more than 10 years younger than the

Participant, then the distribution period is

determined under the Joint Life and Last

Survivor Expectancy Table in Q&A-3 of

§1.401(a)(9)-9 of the Federal Income Tax

Regulations, using ages of the Participant’s

and spouse’s birthday in the year.

(d) Required Distributions After

Participant’s Death.

(i)

Minimum Distributions to Beneciaries

if Participant Dies Before the Required

Beginning Date. Upon the death of the

Participant before his or her Required

Beginning Date, the Beneciary or

Beneciaries may elect to receive minimum

distributions from the Account as follows:

Nonspouse Beneciary Is Designated

Beneciary; or Spouse Beneciary Is

Not Sole Designated Beneciary —

If the Designated Beneciary is not

the spouse of the Participant, or if the

spouse of the Participant is a Beneciary

but not the sole Designated Beneciary,

then the Beneciary may elect to

receive minimum distributions over the

life expectancy of the Designated

Beneciary commencing no later than

December 31 of the year following the

year of the Participant’s death.

Spouse Beneciary Is Sole Designated

Beneciary — If the sole Designated

Beneciary is the spouse of the

Participant, then such spouse may elect:

To receive minimum distributions

over the spouse’s life expectancy

commencing no later than

December 31 of the year following

the year of the Participant’s death,

or December 31 of the year in which

the Participant would have reached

age 70½. If the surviving spouse dies

before distributions are required to

begin, the remaining interest will be

distributed to the spouse’s Beneciary

or Beneciaries in accordance with

subparagraph a. of this Section 8(d)(i),

as if the spouse were the Participant.

If the surviving spouse dies after

distributions are required to begin,

any remaining interest in the Account

will be distributed over the spouse’s

remaining life expectancy determined

using the spouse’s age as of his or

her birthday in the year of the

spouse’s death;

To receive minimum distributions in

accordance with subparagraph c. of

this Section 8(d)(i); or

To treat the Account as his or her

own. This election is deemed to

be made if such spouse makes a

contribution to the Account or fails

to take required minimum

distributions as the Beneciary in

any year following the year of the

Participant’s death.

(d) Excess Contributions to Account. If the

employer contributes on behalf of the Participant

more than allowed with respect to a Taxable Year,

the Participant must notify the Custodian to return

to the Participant the excess contribution,

together with any investment earnings on that

amount, or to apply the excess contribution as a

contribution for the Participant’s next succeeding

Taxable Year. The Participant must notify the

Custodian in writing prior to the date on which

the Participant les, or is required to le, the

Participant’s income tax return for the Taxable

Year for which the excess contribution was made.

(e) Transfer of Contributions Without Cost

or Penalty. If the Custodian is the designated

nancial institution of the employer’s SIMPLE

IRA Plan, a Participant may transfer his or her

contributions to another custodian or trustee

without cost or penalty by notifying the Custodian

when the Participant initially establishes his or

her SIMPLE IRA account, or at any other time,

on a form acceptable to the Custodian. Such

transfer will be without cost or penalty if the

contributions have been at all times invested

in the Class A or F-2 shares of American Funds

U.S. Government Money Market Fund

(“MMF”)

or such other class of shares or fund as the

Custodian may designate. If the Custodian is

not the designated nancial institution of the

employer’s SIMPLE IRA Plan, a Participant’s

transfer may result in the imposition of the

charges described in the prospectus of

the Fund.

Section 8 — Distributions to Participant

and Participant’s Designated

Beneciaries

(a) Beneciary Designations.

(i) Participant’s Right to Designate or Change

Beneciary. The Participant shall have the

right to designate or change a Beneciary

to receive any benet from the Account to

which such Participant may be entitled in

the event of the Participant’s death prior to

complete distribution of the Account. If no

such designation is in effect at the time of

the Participant’s death, the Participant’s

Beneciary shall be the Participant’s spouse

or, if none, the Participant’s children, equally.

If any child does not survive the Participant,

then the deceased child’s share will be

distributed to his or her children (the

Participant’s grandchildren), equally or, if

none, the surviving children equally. If none

of the foregoing survives the Participant, the

Beneciary will be the Participant’s estate.

(ii) Required Form of Beneciary Designation.

The Participant may designate or change a

Beneciary only by signed written notice to,

and in a form acceptable to, the Custodian,

but the Custodian shall have no responsibility

to determine the validity of such beneciary

designation. The designation or change will

take effect as of the date the written notice

was executed, provided that the designation

or change is delivered to the Custodian prior

to the Participant’s death. The beneciary

designation form shall be used solely for

the purpose of designating a Beneciary

or Beneciaries.

(iii) Good Faith Payment by Custodian. The

Custodian shall be relieved of any liability

for making any payment in good faith to

any person or entity that claims to be a

Beneciary. The Custodian shall be entitled

to rely without liability on written notice from

the Participant’s personal representative or

any Beneciary as to the identity of the

Beneciaries of the Participant at the time

of the Participant’s death.

(b) Distributions Before Required Beginning

Date. Before the Required Beginning Date, but

only in a form acceptable to the Custodian, the

Participant may elect to have the balance in the

Account distributed in one of the following forms:

(i)

a single sum payment;

(ii) payments over the life of the Participant;

(iii) payments over the lives of the Participant

and his or her Beneciary; or

(iv)

payments over a specied period.

Participant’s Lifetime.

(i)

Timing of Distributions. The rst payment

of a required distribution is not due until

the Participant’s Required Beginning Date.

If the Participant takes the rst required

distribution in the year of his or her Required

Beginning Date, another distribution is

required by December 31 of the year

containing the Required Beginning Date.

In this event, the Participant may receive

two required distributions in the rst year

distributions begin. If the Participant takes

the rst required distribution in the year in

which he or she reaches 70½, the Participant

need only take one distribution in the year

in which his or her Required Beginning

Date occurs. For each succeeding year,

a distribution must be made on or before

December 31. Distributions under this

section are considered to have begun if

the distributions are made on account of

the Participant reaching his or her Required

Beginning Date. If the Participant dies prior

to the Required Beginning Date, distributions

will not be considered to have begun even if

the Participant receives distributions before

the Participant’s death.

(ii) Method of Calculating Lifetime Minimum

Distributions. The minimum amount to be

distributed each year (commencing with the

Required Beginning Date and each year

thereafter, up to and including the year of the

Participant’s death) shall not be less than

(and may be more if requested in writing

by the Participant) an amount equal to

the quotient obtained by dividing the prior

year-end value (including the amount of

any outstanding rollover, transfer and

recharacterization under Q&As-7 and -8

of §1.408-8 of the Federal Income Tax

Regulations) by the applicable factor (using

the Participant’s age as of his or her birthday

in the year) in the Uniform Lifetime Table

in Q&A-2 of §1.401(a)(9)-9 of the Federal

Income Tax Regulations. However, if the

Participant’s sole Designated Beneciary

is the Participant’s spouse and the spouse

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(ii) the trust is irrevocable or will, by its terms,

become irrevocable upon the death of the

IRA Participant;

(iii)

the beneciaries of the trust who are

beneciaries with respect to the trust’s

interests in this Account are identiable

from the trust instrument; and

(iv)

the Custodian receives the documentation

described in Q&A-6 of Treasury

Regulations §1.401(a)(9)-4.

If the foregoing requirements have been

satised, and the Custodian receives such

additional information as it may request, the

Custodian of this Account may treat such trust

beneciaries as “Designated Beneciaries.”

(h) Separate Accounts. The Custodian will

recognize the timely creation of separate

accounts by the Participant, Beneciary or

Beneciaries (or a representative of the

Beneciary or Beneciaries, including the

trustee of a trust) to the extent permitted by

law or applicable Treasury regulations. If the

Participant designates multiple individuals

or a trust with multiple beneciaries as the

Participant’s Beneciary, then the age of the

oldest individual or trust beneciary shall be used

for purposes of calculating required minimum

distributions hereunder unless separate accounts

are timely established as aforesaid. To create

separate accounts during the lifetime of the

Participant, a separate Application must be

completed for each Account, delivered and

accepted by the Custodian. To create separate

Accounts after the death of the Participant, the

Custodian must be notied by the Beneciary or at

least one of the Beneciaries (or a representative

of the Beneciary or Beneciaries, including the

trustee of a trust, or the personal representative

of an estate) in a form and manner acceptable to

the Custodian.

(i) Trust Beneciary Qualifying for Marital

Deduction. If a Beneciary is a trust (other than

an estate marital trust) that is intended to qualify

for the federal estate tax marital deduction under

§2056 of the Code (“Marital Trust”), then:

(i)

in no event shall the annual amount

distributed from the Account to the Marital

Trust be less than the minimum distribution

required under §401(a)(9) of the Code;

(ii)

the trustee of the Marital Trust shall be

responsible for calculating the amount to be

distributed under clause (i) above and shall

instruct the Custodian of the Account in

writing to distribute the amount so calculated;

(iii)

the trustee of the Marital Trust may from

time to time notify the Custodian of the

Account in writing to accelerate payment of

all or any part of the portion of such Account

that remains to be distributed, and may also

notify the Custodian to change the frequency

of distributions (but not less often than

annually); and

(iv)

the trustee of the Marital Trust shall be

responsible for characterizing the amounts

so distributed from the Account as duciary

accounting income or principal under the

applicable state law.

No Designated Beneciary — If the

Participant does not have a Designated

Beneciary, the entire interest will be

distributed by December 31 of the year

containing the fth anniversary of the

Participant’s death (or surviving spouse’s

death if the surviving spouse dies before

distributions are required to begin).

(ii) Minimum Distributions to Beneciaries if

Participant Dies on or After the Required

Beginning Date. If the Participant dies on

or after the Required Beginning Date, the

Beneciary or Beneciaries may elect to

receive minimum distributions from the

Account as follows:

Nonspouse Beneciary Is Designated

Beneciary; or Spouse Beneciary Is

Not Sole Designated Beneciary —

If the Designated Beneciary is not

the spouse of the Participant, or if the

spouse of the Participant is a Beneciary,

but not the sole Designated Beneciary,

then the Beneciary may elect to receive

minimum distributions over the longer

of the life expectancy of the Designated

Beneciary or the remaining life

expectancy of the Participant,

commencing no later than December 31

of the year following the year of the

Participant’s death.

Spouse Beneciary Is Sole Designated

Beneciary — If the sole Designated

Beneciary is the spouse of the

Participant, then such spouse may elect:

To receive minimum distributions

over the spouse’s life expectancy

or over the remaining life expectancy

of the Participant, if such period is

longer, commencing no later than

December 31 of the year following

the year of the Participant’s death.

Any remaining interest after the

spouse’s death will be distributed

over such spouse’s remaining life

expectancy, or over the remaining

life expectancy of the Participant if

such period is longer.

To treat the Account as his or her

own. This election is deemed to be

made if such surviving spouse

makes a contribution to the Account

or fails to take required minimum

distributions as the Beneciary in

any year following the year of the

Participant’s death.

No Designated Beneciary — If the

Participant does not have a Designated

Beneciary, then the Beneciary may

elect to receive minimum distributions

over the remaining life expectancy of

the Participant.

(iii)

Determination of Life Expectancy and

Calculation of Minimum Distributions After

the Participant’s Death — The minimum

amount required to be distributed each

year under Sections (i) and (ii) above is the

quotient obtained by dividing the value of

the Account as of the end of the preceding

year by the applicable factor. The applicable

life expectancy factor for the surviving spouse

who is the sole Designated Beneciary is the

Single Life Expectancy Table factor in

Q&A-1 of §1.401(a)(9)-9 of the Federal

Income Tax Regulations for the spouse’s

age each year. The applicable factor in all

other cases is the Single Life Expectancy

Table factor in Q&A-1 of §1.401(a)(9)-9

of the Federal Income Tax Regulations

corresponding to the Beneciary’s age

(or Participant’s age, if applicable) as of

his or her birthday in the year distributions

begin reduced by one in each succeeding

year. The value of the Account includes the

amount of any outstanding rollover, transfer

and recharacterization under Q&As-7 and

-8 of §1.408-8 of the Federal Income

Tax Regulations.

(e) Requesting Distributions. Except as provided

in Section 5(h) above, the Custodian has no duty

to advise the Participant or Beneciary of the

taxability of distributions. Moreover, the Custodian

has no duty to commence distributions to the

Participant or Beneciary until receipt of written

instructions, in a form acceptable to the

Custodian, from the Participant or Beneciary,

as the case may be. The Custodian shall give

no force and effect to any election made by the

Participant or Beneciary as to the distribution

options allowable to the Participant or

Beneciary(ies), unless such election is made

in a form acceptable to the Custodian.

(f) Satisfying Minimum Distributions From Two

or More IRAs. An individual may satisfy the

minimum distribution requirements under

§§408(a)(6) and 408(b)(3) of the Code by

receiving a distribution from one IRA that is

equal to the amount required to satisfy the

minimum distribution requirements for two or

more IRAs. For this purpose, the Participant

or Beneciary of two or more IRAs may use the

“alternative method” described in Notice 88-38,

1988-1 C.B. 524 (as modied by §1.408-8, A-9

of the Federal Income Tax Regulations) to

satisfy the minimum distribution requirements

described above. If the Participant or Beneciary

does not provide the Custodian with timely notice

that required distributions will be satised from

this Account, then the Participant automatically

will be deemed to have elected to satisfy the

minimum distribution requirements from some

other IRA.

(g) Treatment of Trust Beneciaries as

“Designated Beneciaries.” If a trust is named

as a Beneciary of this Account, the beneciaries

of the trust with respect to the trust’s interests in

this Account will be treated as being “Designated

Beneciaries” (as that term is dened in the Code

and corresponding Treasury Regulations) of the

Participant solely for purposes of determining

the distribution period under §401(a)(9) of the

Code; provided, however, such treatment as

“Designated Beneciaries” may occur only if,

during any period during which required

minimum distributions are being determined by

treating beneciaries of the trust as Designated

Beneciaries of the Participant, the following

requirements are met:

(i)

the trust is a valid trust under state law,

or would be but for the fact that there is

no corpus;

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(ii) The designation expressly refers to the

remaining benets in the Account; and

(iii)

The designation is delivered to the Custodian

prior to the Original Beneciary’s death.

If such remaining benets are thus payable to

such a Subsequent Beneciary, they shall be

paid over a period that does not extend beyond

the applicable distribution period for the

distribution of the Participant’s Account.

If a Beneciary is a trust and is receiving benets

under the Participant’s Account over the life

expectancy of a trust beneciary (or over the

remaining life expectancy, if any, of the

Participant or of any prior Beneciary or prior

trust beneciary), then upon the death of such

trust beneciary prior to the complete

distribution of such benets to the trust, such

remaining benets shall be payable to the trust,

or directly to the successor trust beneciary or

beneciaries if so instructed in writing by the

trustee, over a period that does not extend

beyond the applicable distribution period for

the distribution of Participant’s Account.

(n) Notice of Events. Until the Custodian shall

receive from some person interested in this

Account notice, in a form acceptable to the

Custodian, of any event upon which the right

to receive any benets from this Account has

occurred, the Custodian shall incur no liability

for any disbursements or distributions made

or omitted to be made in good faith.

Section 9 — Amendment and Termination

The Participant, by the establishment of this Account,

delegates to the Custodian the power to make any

retroactive or prospective modication of, or

amendment to, this Agreement that is necessary to

conform the Agreement to, or satisfy the conditions

of, any law, governmental regulation or ruling, and

any prospective amendment that is desirable for the

administration of this Agreement, and by doing so

shall be deemed to have consented to each such

amendment or modication. Notwithstanding the

preceding sentence, no amendment shall be made

that would have the effect of allowing any part of

the Account to be used for any purpose other than for

the exclusive benet of the Participant or Beneciary

nor shall any amendment increase or decrease

the duties or liabilities of the Custodian without its

consent. The Custodian has no afrmative obligation

to amend the Agreement for any purpose.

This Agreement may, at the Custodian’s option,

terminate upon the transfer or complete distribution

of the Account, or at the discretion of the Custodian

at any time upon 30 days’ prior written notice to

the Participant.

(j) Disclaimer. The Custodian of the Account may

accept a Beneciary’s disclaimer with respect

to all or a portion of an interest in the Account

provided that the disclaimant has not previously

accepted any interest in the property to be

disclaimed and the disclaimer:

(i)

is in a form acceptable to the Custodian;

(ii) identies the Participant of the Account;

(iii) describes the interest (i.e., the Account) and

the extent of the interest to be disclaimed;

(iv)

declines, refuses or renounces the interest

to be disclaimed; and

(v)

satises applicable state and federal law.

The Custodian of this Account may accept a

trust’s disclaimer made by a trustee on behalf of

(i) a trust that is the Beneciary of this Account

and (ii) the beneciary(ies) of the trust (or made

by a personal representative of an estate that is

a Beneciary of the Account), provided that (a) the

disclaimer satises the foregoing requirements

and either (b) the state law of the Participant’s

domicile or the instrument governing the trust

or estate expressly gives the trustee or personal

representative the right to disclaim an interest

on behalf of the trust or estate and the

beneciary(ies) or (c) the beneciary(ies)

affected by the disclaimer consent.

The Custodian shall not be responsible for

determining the validity of the disclaimer under

any state or federal law and may rely on the

disclaimant’s good faith written statement of the

disclaimer’s validity. The Custodian shall not be

liable to the disclaimant or any other person or

entity for acting or refusing to act in good faith

reliance on such a disclaimer.

(k) Power of Attorney. If the Custodian of the

Account is asked to follow the instructions of

an attorney-in-fact designated under a power

of attorney, the Custodian may, but shall not

be required to, follow such instructions without

regard to whether the power of attorney

expressly authorizes the specic act,

transaction, or decision by the attorney-in-fact;

provided, however, the power of attorney may

not be construed to grant authority to an

attorney-in-fact to change the designation of

Beneciaries to receive any property, benet,

or contract right on the Participant’s death unless

expressly authorized in the power of attorney.

When requested to follow the instructions of an

attorney-in-fact, the Custodian, before incurring

any duty to comply with the power of attorney,

may require the attorney-in-fact to provide

identication, specimens of the signatures of

the Participant and the attorney-in-fact, and

any other information reasonably necessary

or appropriate to identify the Participant and

the attorney-in-fact and to facilitate the actions

of the Custodian in following instructions of the

attorney-in-fact.

The Custodian, in its sole and absolute discretion,

may petition any applicable court to resolve any

issue pertaining to the power of attorney,

including, but not limited to, the validity of the

power of attorney or the authority to engage in the

proposed acts requested by the attorney-in-fact.

All expenses of such a judicial determination,

including the Custodian’s reasonable attorney

fees, shall be charged to the Account as

provided in Section 6 of this Agreement.

The Custodian shall not be responsible for

determining the validity of the power of attorney

under any state or federal law and may rely

on the attorney-in-fact’s good faith written

statement of the validity of the power of

attorney. The Custodian shall not be liable to the

attorney-in-fact, Participant or any other person

for acting or refusing to act in good faith reliance

on the power of attorney.

(l) Receipt of Instructions From Conservator

or Guardian. If the Custodian of the Account is

asked to follow the instructions of a conservator

or guardian of the estate of any incapacitated

Participant (hereinafter such conservator

or guardian is referred to as a “Personal

Representative”), the Custodian may, but shall

not be required to, follow such instructions;

provided, however, the Custodian may not

act upon the instructions of such Personal

Representative to change the designation of

Beneciaries to receive any property, benet,

or contract right on the conservatee’s or ward’s

death without court authorization.

When requested to follow the instructions

of a Personal Representative, the Custodian,

before incurring any duty to comply with such

instructions, may require any information

reasonably necessary or appropriate to identify

the Personal Representative and to facilitate

the actions of the Custodian in following

such instructions.

The Custodian, in its sole and absolute discretion,

may petition any applicable court to resolve any

issue pertaining to the instructions of the Personal

Representative, including, but not limited to,

the authority to engage in the proposed acts

requested by the Personal Representative.

All expenses of such a judicial determination,

including the Custodian’s reasonable attorney’s

fees, shall be charged to the Account as provided

in Section 6 of this Agreement.

The Custodian shall not be liable to any person for

acting or refusing to act in good faith reliance on

the instructions of the Personal Representative.

(m) Payments Upon Death of Beneciary. If a

Beneciary is a natural person and is entitled to

benets under Participant’s Account (“Original

Beneciary”), then upon the death of such

Original Beneciary, any remaining benets shall

be payable to one or more persons or entities

(“Subsequent Beneciary”) designated by the

Participant to receive such benets. If the

Participant fails to designate a Subsequent

Beneciary, or to the extent that such designation

does not make an effective disposition of all such

remaining benets in the Account, then such

remaining benets shall be payable to the

Subsequent Beneciary(ies) if so designated by

the Original Beneciary to receive such benets,

or, if none, to the Original Beneciary’s estate.

The Participant and the Original Beneciary’s

designation of a Subsequent Beneciary to

receive such remaining benets may be acted

upon by the Custodian if:

(i)

The designation is executed prior to

the death of the Participant or Original

Beneciary, as the case may be, by a

written instrument in a form acceptable

to the Custodian;

SIMPLE IRA

Custodial Agreement

01/21

11 of 13

and administered under the laws of the State

of California. Each party agrees that all actions

or proceedings instituted by the Custodian,

Participant, Beneciary or any interested party

arising under or growing out of this Agreement

shall be brought in the state or federal courts

of California. In the event of reasonable doubt

respecting the proper course of action to be

taken with respect to the Account, the Custodian

may, in its sole and absolute discretion, resolve

such doubt by judicial determination that shall be

binding on all parties who may claim any interest

in the Account. A judicial determination may

include, but not be limited to, the Custodian

petitioning the appropriate court to remain as

Custodian over the Account in order to preserve

the Account’s federal tax-deferred status

pending the court’s resolution of the Account.

In the event of any such judicial determination,

all court costs, legal expenses, reasonable

compensation for the time expended by the

Custodian and any other expenses and costs,

including reasonable attorneys’ fees, shall be

collected by the Custodian from the Account(s)

in accordance with Section 6 of this Agreement.

(h) Additional Information/Documentation.

The Custodian may, in the Custodian’s sole and

absolute discretion, require that the Participant,

Beneciary or any other person or entity provide

the Custodian with additional information or

documentation as the Custodian deems

appropriate in order to satisfy the Custodian’s

duties under the Agreement.

(i) Binding on Successors. This Agreement

shall bind and enure to the benet of the

representatives, successors and assigns

of the Participant and the Custodian.

Section 10 — Resignation or Removal

of the Custodian

The Custodian may resign at any time upon 30

days’ prior written notice to the Participant, or the

Beneciary of a deceased Participant, and may be

removed by the Participant or Beneciary at any time

upon 30 days’ prior written notice to the Custodian.

Upon such resignation or removal, the Participant

or Beneciary shall appoint a qualied successor to

the Custodian, and at the request of the Participant

or Beneciary, the Custodian shall transfer and pay

over to such successor the assets of the Account

or the proceeds from the sale of such assets.

The Custodian may, in its discretion, make an

independent determination as to such successor’s

qualied status. The Custodian is authorized,

however, to reserve such sum of money as it

may deem advisable for payment of any liability

constituting a charge against the assets of the

Account or against the Custodian, with any balance

remaining after the payment of all such items to be

paid over to such successor.

If, within 30 days after the Custodian’s resignation

or removal a qualied successor has not been

appointed, the Custodian shall distribute the assets

in a lump sum to the Participant, or the Beneciary

of a deceased Participant.

Section 11 — Miscellaneous

(a) Spendthrift Clause. Neither the assets nor

the benets provided for hereunder shall be

subject to alienation, anticipation, assignment,

garnishment, attachment, execution or levy of

any kind, and any attempt to cause such benets

to be so subjected shall not be recognized. The

Participant shall have no right to assign, transfer

or pledge any interest in the Account, and the

Participant’s interest in the Account shall not

be subject to any claims of creditors.

(b) Transfer Incident to Divorce or Legal

Separation. Notwithstanding anything to the

contrary in the Agreement, including Section

11(a) above, the Participant may direct the

Custodian to transfer all or a portion of the

Account into an IRA of the Participant’s spouse

or former spouse incident to divorce or legal

separation as provided in Code §408(d)(6) and

incorporated by reference by Code §408A(a).

anything to the contrary in this Agreement,

including Section 11(a), to the extent permitted

by applicable federal law, the Custodian, upon

receipt of an Internal Revenue Service levy

against the Participant or Account (“Levy”),

may redeem shares, with or without notice to the

Participant or Beneciary, of the Fund or Funds

in the Account and forward the proceeds to

satisfy such a Levy. The Custodian may redeem

the shares on a pro-rata basis in the Fund or

Funds. Except as otherwise provided by

applicable law, the Custodian shall not be liable

for any action taken in good faith and in exercise

of due care. In the event of any action undertaken

by the Custodian resulting from any order

described herein, all court costs, legal expenses,

reasonable compensation for the time expended

by the Custodian and any other expenses and

costs, including reasonable attorneys’ fees, shall

be collected by the Custodian from the Account(s)

in accordance with Section 6 of this Agreement.

(d) Alternative Distribution to Minors. In the

event a distribution is payable to a minor, the

Custodian may transfer the proceeds to a

custodian selected by the Custodian under the

applicable state’s Uniform Gifts (Transfers) to

Minors Act.

(e) Use of Electronic or Telephonic Media. With

the consent of the Custodian, the Participant, or

the Beneciary of a deceased Participant, may

use electronic or telephonic media to satisfy the

requirements for written consent or direction, to

the extent permissible under regulations or other

generally applicable guidance.

(f) Issuance of a Check. Upon the issuance of a

check from the Account, no additional earnings

will accrue to the Account with respect to the

uncashed check.

Earnings on uncashed checks may accrue to the

Custodian at a money market rate of return. Such

earnings will accrue from the date upon which

a check is mailed, one business day after the

redemption or sale is processed, until the date

upon which the check is presented for payment.

(g) Governing Law/Resort to Judicial

Determination. This Agreement shall be

governed by, construed in accordance with

SIMPLE IRA

Disclosure Statement

01/21

12 of 13

If you did not receive this Disclosure Statement at

least seven days before establishing your SIMPLE

IRA, you may revoke your SIMPLE IRA. Your

SIMPLE IRA is established and accepted on the

date you execute the American Funds SIMPLE IRA

Application form. To revoke your SIMPLE IRA, you

must provide written notice of revocation within seven

days after your account is established. Written notice

of revocation may be mailed to Capital Bank and

Trust Company, P.O. Box 6007, Indianapolis, IN

46206-6007. The revocation will be considered

given as of the postmark date. Upon revocation, the

entire amount of your contribution will be returned to

you without adjustment for administrative expenses

or uctuations in market value.

The following is a brief summary of some of the

nancial and tax consequences of establishing

a SIMPLE IRA.

1. Contributions to the Account

1. Limitation on Amount of Contributions.

Contributions to the SIMPLE IRA may be

either salary deferral contributions or employer

contributions. Contributions must be made in

cash and cannot exceed the maximum amount

allowed under the Internal Revenue Code.

Salary deferral contributions to your SIMPLE

IRA are made on a pretax basis and limited to

$13,500 in 2020 and 2021. If you are age 50

or older before the end of the calendar year,

the above limit is increased to $16,500 for

2020 and 2021. For later years, these limits

may be periodically increased for cost-of-living

adjustments. Your employer is generally

required to make a dollar-for-dollar match of

your salary deferral contributions up to 3% of

your compensation (although twice during any

ve-year period, your employer may reduce its

match to as little as 1% for the year and must

notify you of the reduction).

Your employer may, instead of the match, make a

non-elective contribution on your behalf, equal to

2% of your compensation (compensation for this

non-elective contribution is limited to $285,000

for 2020 and $290,000 for 2021).

No other contributions may be made to your

SIMPLE IRA. A rollover into your SIMPLE IRA

may be made from another SIMPLE IRA at any

time. A rollover into your SIMPLE IRA may be

made from an employer-sponsored retirement

plan or another IRA (with the exception of a

Roth IRA) only after the expiration of the

two-year period beginning when you rst

contributed to the SIMPLE IRA.

2. Excess Contributions. If contributions to your

SIMPLE IRA for any taxable year are greater

than the maximum amount, the excess amount

will be subject to an annual 6% excise tax.

However, this tax can be avoided if you withdraw

your excess contributions plus any earnings on

the excess on or before the due date, including

extensions, for your federal tax return for the year

in which the excess contributions are made.

The earnings that are withdrawn must be

included in your income for the year the excess

contributions were made, and may also be

subject to a 10% premature distribution penalty

if you are under age 59½.

3. Investment of Contributions. Under the terms

of the Custodial Agreement, your contributions

will be invested by the Custodian, Capital Bank

and Trust Company, or any successor, in

accordance with your written instructions or the

written instructions of your employer on your

behalf. If you designate one or more American

Funds but there is no share class indicated, the

default will be A shares. No part of your SIMPLE

IRA will be invested in life insurance contracts.

The Custodial Agreement provides that your

entire interest in the assets held in your SIMPLE

IRA is nonforfeitable at all times and that such

assets will not be commingled with other property.

4. Transfer of Contributions Without Cost or

Penalty. If the Custodian is the designated

nancial institution of your employer’s SIMPLE

IRA Plan, you may transfer your contributions

(both your deferrals and your employer’s

contributions) to another nancial institution,

custodian or trustee, without cost or penalty,

by notifying the Custodian when you initially

establish your SIMPLE IRA account, or at any

other time, by using the Custodian’s SIMPLE

IRA Transfer Election Form. The Custodian will

process this request without cost or penalty

provided you meet certain transfer requirements.

When requesting a transfer, you must provide the

dollar amount or percentage to be transferred and

the frequency of such transfer (e.g., monthly,

quarterly, annually). The election will continue

in force until you revoke it. Prior to the transfer,

the contributions (both your salary deferrals and

your employer’s contribution) that you want to

transfer may only be invested in A or F-2 shares

of the American Funds U.S. Government Money

Market Fund

(MMF) so that the transfer may

occur without cost or penalty to you. If you elect

not to invest in A or F-2 shares of MMF but in an

American Funds mutual fund class for which a

sales charge or a contingent deferred sales

charge is applicable, you may also transfer

these contributions but the transfer can not be

made without cost or penalty, since the sales

charge will not be refunded. If the Custodian is not

the designated nancial institution of your

employer’s SIMPLE IRA Plan, you may also

transfer your contributions to another nancial

institution at any time, but such a transfer is not

required to be without cost or penalty. To initiate

such a transfer, contact the new custodian or

trustee to obtain the appropriate forms. The

Custodian will complete a “trustee to trustee,” or

similar transfer, of all or a portion of your SIMPLE

IRA account balance upon receipt of the recipient

institution’s acceptance of the SIMPLE IRA

account. If your contribution was invested in a

mutual fund class of shares subject to a sales

charge or a contingent deferred sales charge,

then the sales charges will not be refunded.

2. Distributions from the Account

1. Taxation of Distributions. Distributions from

your SIMPLE IRA are taxed as ordinary income.

Provisions for 10-year income averaging and

capital gain treatment are not available for

“lump sum distributions” from your SIMPLE IRA.

Premature distributions may be subject to a 10%

penalty. Moreover, the 10% penalty increases to

25% for those distributions taken before you

have participated in the SIMPLE IRA for at least

two years.

2. Penalty Tax on Premature Distributions.

Any distribution made before you reach age

59½ will be subject to a penalty tax of 10% of

the taxable amount of the distribution, and 25%

penalty tax for distributions made before you

have participated in the SIMPLE IRA for more

than two years except for distributions made:

(a)

in the case of death or disability,

(b) for the return of excess contributions from

your SIMPLE IRA,

(c)

as payments for certain catastrophic

medical expenses,

(d)

as payments made after an extended

period of unemployment to cover health

insurance premiums,

(e)

as payments for certain expenses incurred

to purchase a rst-time home up to a lifetime

maximum of $10,000,

(f)

as payments for post-secondary education

costs of your immediate family members

and grandchildren,

(g)

as payments made in substantially equal

installments that may be based on, but

not limited to, the following methods: life

expectancy, amortization (using a rate

between 80% and 120% of the long-term

applicable federal rate) or annuitization

(using an acceptable mortality table

including, but not limited to, UP’84,

’83 IAM or Annuity 2000),

(h)

as payment in satisfaction of a levy under

Code §6331,

(i)

as payments taken due to certain

catastrophic events in federally declared

disaster areas, or

(j)

for birth or adoption expenses (up to

$5,000).

3. Required Distributions From SIMPLE IRAs.

To begin receiving required minimum

distributions from your SIMPLE IRA, you must

notify the Custodian in writing. Your entire

interest must be distributed beginning April 1

(your “Required Beginning Date”) of the calendar

year following the year in which you reach age

70½ (if you were born before July 1, 1949)

or 72 (if you were born after June 30, 1949).

Your distributions can be taken over a period

calculated on your life expectancy and that of

a beneciary assumed to be 10 years younger

than you (the factors can be found in the IRS’s

Uniform Lifetime Table). If your sole beneciary

is your spouse who is more than 10 years

younger than you, you may use your spouse’s

actual age (the factors can be found in the IRS

Joint Life and Last Survivor Expectancy Table)

to determine the payout period.

SIMPLE IRA

Disclosure Statement

13 of 13

4. Penalty Tax for Insufcient Distributions

From SIMPLE IRAs. If you take less than the

minimum required to be distributed after you

reach your Required Beginning Date, a 50%

penalty tax on the difference between the

amount required to be distributed and the

amount actually distributed in that year will be

assessed. The Internal Revenue Service can

waive the 50% penalty tax if the insufcient

distribution was due to reasonable error and

steps are taken to correct the underdistribution.

5. Distributions Upon Your Death. After your

death (regardless of your age when you die),

required minimum distribution rules apply to

the beneciaries of your SIMPLE IRA. How

the required minimum distribution rules apply

after your death depends on a number of

factors, including whether you die before your

Required Beginning Date and the identity of

your beneciaries. For more information on

required minimum distributions for beneciaries,

refer to IRS Publication 590-B or consult your

tax professional.

6. Issuance of a Check. Upon the issuance of a

check from the Account, no additional earnings

will accrue to the Account with respect to the

uncashed check. Earnings on uncashed checks

may accrue to the Custodian at a money market

rate of return. Such earnings will accrue from the

date upon which a check is mailed, one business

day after the redemption or sale is processed,

until the date upon which the check is presented

for payment.

7. Estate and Gift Taxes. Upon your death, the

value of your SIMPLE IRA is subject to federal

estate taxes under §2039(a) of the Internal

Revenue Code unless the account is left to

a surviving spouse in a form that qualies for

the marital deduction.

For gift-tax purposes, beneciary designations

will not be treated as gifts.

3. Tax Status of Custodial Account

1. Tax-Exempt Status. Generally, any contributions

and earnings thereon held in your SIMPLE IRA

are exempt from federal income tax and will only

be taxed when distributed to you, unless the

tax-exempt status of the SIMPLE IRA is revoked.

The Custodian of your SIMPLE IRA has received

a letter from the IRS approving the form of the

SIMPLE IRA. Such approval is a determination as

to the IRA terms only and is not a determination of

the merits of the SIMPLE IRA as an investment.

2. Loss of Exemption. The tax-exempt status

of the SIMPLE IRA will be revoked as of the

beginning of the year in which you engage in

any of the prohibited transactions listed in

§4975(c) of the Internal Revenue Code, such as

borrowing money from your IRA, selling property

to your IRA or exchanging property with your IRA.

Generally, the fair market value of your SIMPLE

IRA will be includable in your taxable income in

the year in which such prohibited transaction

takes place and may also be subject to a 10%

penalty tax (25% if you have not participated

in the SIMPLE IRA for more than two years).

In addition, the SIMPLE IRA will lose its

tax-exempt status if you use all or part of your

interest in the IRA as security for a loan. Any

portion of the IRA used as security for a loan will

be treated as a distribution in the year in which

such use occurs. If you are under age 59½, the

amount of the loan may also be subject to a 10%

penalty tax (25% if you have not participated in

the SIMPLE IRA for more than two years) as a

premature distribution.

4. Additional Tax Information

For years in which excess contributions have

been made to your SIMPLE IRA, or you received

from your account premature distributions, or

underdistributions from your SIMPLE IRA after

reaching age 70½ (if you were born before July 1,

1949) or 72 (if you were born after June 30, 1949),

you are required to le with the IRS Form 5329

Additional Taxes on Qualied Plans (including IRAs)

and Other Tax-Favored Accounts along with your

individual tax return for that year.

Further information about your SIMPLE IRA can

be obtained from any district ofce of the IRS.

You may also refer to IRS Publications 560, 590-A,

and 590-B, or visit the IRS website at www.irs.gov.

5. Financial Information

To calculate earnings on the account, reinvested

dividends and capital gain distributions are purchased

at net asset value (“NAV”) on the reinvestment date.

The number of shares in the Account at the end of

the period is multiplied by the NAV per share at the

end of the period to determine the ending value. The

difference between the ending value and the initial

investment equals the earnings for the period.

If $1,000 is invested in any fund other than

American Funds U.S. Government Money Market

Fund and a reduced sales charge is not available,

the highest sales charge would be $57.50, or 5.75%

of the contribution. See the prospectus of each fund

for further details. If $1,000 is invested in MMF, no

sales charge would be imposed. In addition, there

is a $10 annual custodian fee. The future growth

results of your investment in mutual fund shares

cannot be guaranteed or projected.

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