[LOGO -- OBERWEIS EMERGING GROWTH FUND]
INDIVIDUAL RETIREMENT CUSTODIAL ACCOUNT AGREEMENT
Investors Fiduciary Trust Company
Form 5305-A
Individual Retirement Custodial Account (Rev. October 1992)
Department of the Treasury -- Internal Revenue Service
(Under Section 408(a) of the Internal Revenue Code) Keep for your records.
Do NOT File with Internal Revenue Service
State of
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County of
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Depositor's name Depositor's date of birth
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Depositor's address Depositor's social security number
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Custodial name INVESTORS FIDUCIARY TRUST COMPANY
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Custodial address or principal place of business KANSAS CITY, MISSOURI
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The Depositor whose name appears above is establishing an Individual Retirement
Account (under section 408(a) of the Internal Revenue Code) to provide for his
or her retirement and for the support of his or her beneficiaries after death.
The Custodian named above has given the Depositor the disclosure statement
required under the Income Tax Regulations under section 408(i) of the Code.
The Depositor has assigned the Custodial account dollars ($ )
in cash. The Depositor and the Custodian made the following agreement.
ARTICLE I
The custodian may accept additional cash contributions on behalf of the
Depositor for a tax year of the Depositor. The total cash contributions are
limited to $2,000 for the tax year unless the contribution is a rollover
contribution described in section 402(c) (but only after December 31, 1992),
403(a)(4), 403(b)(8), 408(d)(3), or an employer contribution to a simplified
employee pension plan as described in section 408(k). Rollover contributions
before January 1, 1993, include rollovers described in section 402(a)(5),
402(a)(6), 402(a)(7), 403(a)(4), 403(b)(8), 408(d)(3), or an employer
contribution to a simplified employee pension plan as described in section
408(k).
ARTICLE II
The Depositor's interest in the balance in the custodial account is
nonforfeitable.
ARTICLE III
1. No part of the custodial 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 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 and silver coins and coins issued
under the laws of any state.
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 Proposed Regulations section 1.408-8, including the
incidental death benefit provisions of Proposed Regulations section
1.401(a)(9)-2, the provisions of which are incorporated by reference.
2. Unless otherwise elected by the time distributions are required to begin to
the Depositor under paragraph 3, or to the surviving spouse under paragraph 4,
other than in the case of a life annuity, life expectancies shall be
recalculated annually. Such election shall be irrevocable as to the Depositor
and the surviving spouse and shall apply to all subsequent years. The life
expectancy of a nonspouse beneficiary may not be recalculated.
3. The Depositor's entire interest in the custodial account must be, or begin
to be, distributed by the Depositor's required beginning date, (April 1
following the calendar year end in which the Depositor reaches age 70 1/2). 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 payment.
b. An annuity contract that provides equal or substantially equal monthly,
quarterly, or annual payments over the life of the Depositor.
c. An annuity contract that provides equal or substantially equal monthly,
quarterly, or annual payments over the joint and last survivor lives of
the Depositor and his or her designated beneficiary.
d. Equal or substantially equal annual payments over a specified period that
may not be longer than the Depositor's life expectancy.
e. Equal or substantially equal annual payments over a specified period
that may not be longer than the joint life and last survivor expectancy of
the Depositor and his or her designated beneficiary.
4. If the Depositor dies before his or her entire interest is distributed to
him or her, the entire remaining interest will be distributed as follows:
a. If the Depositor dies on or after distribution of his or her interest has
begun, distribution must continue to be made in accordance with paragraph 3.
b. If the Depositor dies before distribution of his or her interest has
begun, the entire remaining interest will, at the election of the Depositor
or, if the Depositor has not so elected, at the election of the beneficiary
or beneficiaries, either
i. Be distributed by the December 31 of the year containing the fifth
anniversary of the Depositor's death, or
ii. Be distributed in equal or substantially equal payments over the
life or life expectancy of the designated beneficiary or beneficiaries
starting by December 31 of the year following the year of the
Depositor's death. If, however, the beneficiary is the Depositor's
surviving spouse, then this distribution is not required to begin before
December 31 of the year in which the Depositor would have turned age
70 1/2.
c. Except where distribution in the form of an annuity meeting the
requirements of section 408(b)(3) and its related regulations has
irrevocably commenced, distributions are treated as having begun on the
Depositor's required beginning date, even though payments may actually have
been made before that date.
d. If the Depositor dies before his or her entire interest has been
distributed and if the beneficiary is other than the surviving spouse, no
additional cash contributions or rollover contributions may be accepted in
the account.
5. In the case of a distribution over life expectancy in equal or substantially
equal annual payments, to determine the minimum annual payment for each year,
divide the Depositor's entire interest in the Custodial account as of the
close of business on December 31 of the preceding year by the life expectancy
of the Depositor (or the joint life and last survivor expectancy of the
Depositor and the Depositor's designated beneficiary, or the life expectancy of
the designated beneficiary, whichever applies). In the case of distributions
under paragraph 3, determine the initial life expectancy (or joint life and last
survivor expectancy) using the attained ages of the Depositor and designated
beneficiary as of their birthdays in the year the Depositor reaches age 70 1/2.
In the case of a distribution in accordance with paragraph 4(b)(ii), determine
life expectancy using the attained age of the designated beneficiary as of the
beneficiary's birthday in the year distributions are required to commence.
6. The owner of two or more individual retirement accounts may use the
"alternative method" described in Notice 88-38, 1988-1 C.B. 524, to satisfy the
minimum distribution requirements described above. This method permits an
individual to satisfy these requirements by taking from one individual
retirement account the amount required to satisfy the requirement for another.
ARTICLE V
1. The Depositor agrees to provide the Custodian with information necessary for
the Custodian to prepare any reports required under section 408(i) and
Regulations sections 1.408-5 and 1.408-6.
2. The Custodian agrees to submit reports to the Internal Revenue Service and
the Depositor prescribed in the Internal Revenue Service.
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 that are not consistent with section 408(a) and the related
regulations will be invalid.
ARTICLE VII
This agreement will be amended from time to time to comply with the provisions
of the Code and related regulations. Other amendments may be made with the
consent of the persons whose signatures appear below.
ARTICLE VIII
1. Definitions. The following definitions shall apply to terms used in this
Article VIII:
a. "Application" shall mean the XXX Application submitted by the Depositor
to the Custodian.
b. "Code" shall mean the Internal Revenue Code of 1986, as amended,
including any regulations, procedures, rulings, or notices issued
thereunder.
c. "Company" shall mean Oberweis Emerging Growth Fund.
d. "Custodial Account" shall mean the custodial account established under
this agreement.
2. Investment of Contributions. Contributions shall be invested in shares of
the Company mutual funds in accordance with the Depositor's written instructions
in the Application, and with subsequent written instructions of the Depositor
(or, following the death of the Depositor, his or her beneficiary) in a form
acceptable to and filed with the Custodian. By giving such instructions, the
Depositor (or beneficiary, where applicable) will be deemed to have acknowledged
receipt of the then current prospectus for any shares in which the Depositor (or
beneficiary) directs the Custodian to invest contributions. The Depositor, by
making a rollover contribution, as described in Article I, hereby certifies that
the contribution meets all requirements for rollover contributions. The amount
of each contribution shall be applied to the purchase of such shares at the
price and in the manner in which such shares are then being publicly offered by
the Company in
accordance with the then current prospectus, and such shares shall be credited
to the Custodial Account. All dividends and capital gain distributions received
on the shares of the fund held in each Custodial Account shall (unless received
in additional shares of such fund) be reinvested in such shares which shall be
credited to such Custodial Account. If any distribution on shares of the fund
may be received at the election of the shareholder in additional shares or in
cash or other property, the Custodian shall elect to receive such distribution
in additional shares. The Custodian shall not be liable for interest on any cash
balance in the Custodial Account. All Company shares acquired by the Custodian
shall be registered in the name of the Custodian or its required nominee.
3. Voting with respect to shares. The Custodian shall not vote any of the
shares of a Company mutual fund held in the Custodial Account except in
accordance with written instructions of the Depositor, timely received, in a
form acceptable to the Custodian.
4. Alternative Distribution Methods: Notwithstanding Article IV, a Depositor
may elect in writing in a form acceptable to and filed with the Custodian, to
have the balance in the Custodial Account distributed only in a lump sum or
insubstantially equal payments over a period that does not exceed the
Depositor's life expectancy or the joint and last survivor life expectancy of
the Depositor and his or her designated beneficiary. For this purpose, life
expectancies must be determined by using applicable Internal Revenue Service
tables. Notwithstanding paragraph 2 of Article IV, unless an election to have
life expectancies recalculated annually is made by the time distributions are
required to begin to the Depositor under paragraph 3, or to the surviving spouse
under paragraph 4, of Article IV, life expectancies shall not be recalculated.
Such election shall be irrevocable as to the Depositor and the surviving spouse
and shall apply to all subsequent years. The life expectancy of a nonspouse
beneficiary may not be recalculated. To receive an annuity distribution, a
Depositor may roll over a lump sum distribution to purchase an individual
retirement annuity payable in equal or substantially equal payments over the
Depositor's life expectancy or the joint and last survivor life expectancy of
the Depositor and his or her designated beneficiary. The distribution option
should be reviewed in the year the Depositor reaches age 70-1/2 to make sure the
requirements of Code Section 408(a)(6) have been met. Consistent with paragraph
6 of Article IV, the Custodian is not obligated to make any distribution absent
a specific written direction, in a form acceptable to and filed with the
Custodian, from the Depositor or designated beneficiary to do so.
5. Amendment and Termination. The Depositor may at any time and from time to
time terminate this Agreement in whole or in part by delivering to the Custodian
a signed written notice of such termination, in a form acceptable to the
Custodian. The Depositor and the Custodian delegate to the Company the right to
amend this Agreement (including retroactive amendments) by written notice to the
Custodian and the Depositor. The Depositor shall be deemed to have consented to
any such amendment, provided that (a) no amendment shall cause or permit any
part of the assets of the Custodial Account to be delivered to purposes other
than for the exclusive benefit of the Depositor or his or her beneficiaries; (b)
any amendment which affects the rights, duties or responsibilities of the
Custodian may only be made with the Custodian's consent; and (c) no amendment
shall be made except in accordance with any applicable laws and regulations
affecting this Agreement and the Custodial Account.
6. Resignation or Removal of Custodian. The Custodian may resign at any time
upon thirty (30) days notice in writing to the Depositor and the Company. Upon
such resignation, the Depositor delegates to the Company the responsibility to
appoint a successor custodian under this Agreement. The Depositor or the Company
at any time may remove the Custodian upon 30 days written notice to that effect
in a form acceptable to and filed with the Custodian. Such notice must include
designation of a successor custodian. The successor custodian shall satisfy the
requirements of section 408(h) of the Code. Upon receipt by the Custodian of
written acceptance of such appointment by the successor custodian, the Custodian
shall transfer and pay over to such successor the assets of and records relating
to the Custodial Account. The Custodian is authorized, however, to reserve such
sum of money as it may deem advisable for payment of all its fees, compensation,
costs and expenses, or for payment of any other liability constituting a charge
on or against the assets of the Custodial Account or on or against the
Custodian, and where necessary may liquidate shares in the Custodial Account for
such payments. Any balance of such reserve remaining after the payment of all
such items shall be paid over to the successor Custodian. The Custodian shall
not be liable for the acts or omissions of any successor custodian.
7. Custodian's Annual Fees: The Depositor shall be charged by the Custodian for
its services under this Agreement in such amount as the Custodian shall
establish from time to time. Sufficient shares may be liquidated from the
Custodial Account to pay the fee. The annual fee in effect on the date of this
Agreement is set forth in the Application. A different fee may be substituted at
any time upon written notice to the Depositor. A Depositor who does not consent
to such new fee should terminate this Agreement pursuant to paragraph 5 of
Article VIII within 30 days of the notice of the new fee. If no such termination
is made within 30 days of the notice of the new fee, the Depositor will be
deemed within 30 days of the notice of the new fee, the Depositor will be deemed
to have consented to the new fee.
8. Other Fees and Expenses. Any income or other taxes of any kind whatsoever
that may be levied or assessed upon or with respect to the Custodial Account or
the income thereof, any transfer taxes incurred in connection with the
investment and reinvestment of the assets of the Custodial Account, all other
reasonable administrative expenses incurred by the Custodian with respect to any
such taxes, or with respect to any controversies concerning the Custodial
Account, including, but not limited to, fees for legal services rendered to the
Custodian and related costs, and such reasonable compensation to the Custodian
for acting in that capacity with respect to any such taxes or controversies,
may, in the discretion of the Custodian, be charged against and paid from the
assets of the Custodial Account. Sufficient shares may be liquidated from the
Custodial Account to pay any such taxes, expenses and compensation.
9. Incapability of Assets: No interest, right or claim in or to any part of the
Custodial Account, nor any assets held therein or benefits provided hereunder
shall be subject to alienation, assignment, garnishment, attachment, execution
or levy of any kind, and any attempt to cause any such interest, right, claim,
assets or benefits to be so subjected shall not be recognized, except to the
extent as may be required by law.
10. Exchange Privilege: With respect to any Company shares held in the Custodial
Account, the Depositor (or beneficiary, where applicable) may, upon submission
of written instructions in a form acceptable to and filed with the Custodian,
cause shares of any fund to be exchanged for shares of any other fund of the
Company meeting the requirements of this Agreement, upon the terms and within
the limitations imposed by the then current prospectus of the fund of the
Company which are acquired in the exchange. By giving such instructions, the
Depositor (or beneficiary) will be deemed to have acknowledged receipt of such
prospectus.
11. Designation of Beneficiary. The Depositor may designate a beneficiary or
change or revoke the designation of a beneficiary, by written notice in a form
acceptable to and filed with the Custodian, prior to the complete distribution
of the balance in the Custodial Account. If the Depositor has not by the date of
his or her death properly designated a beneficiary in accordance with the
preceding sentence, or if no designated beneficiary survives the Depositor,
the Depositor's beneficiary shall be his or her estate. If a beneficiary dies
before receiving his or her entire interest in the Custodial Account, his or her
remaining interest in the Custodial Account shall be paid to the beneficiary's
estate.
12. Responsibility as to Contributions or Distributions. The Custodian will not
under any circumstances be responsible for the timing, purpose or propriety of
any contribution or of any distribution made hereunder, not shall the Custodian
incur any liability or responsibility for any tax imposed on account of any
such contribution or distribution.
13. Other Limits on Responsibilities of the Custodian. The Custodian shall not
incur any liability or responsibility in taking or omitting to take any action
based on any notice, election, or instruction or any written instrument believed
by the Custodian to be genuine and to have been properly executed. The Custodian
shall be under no duty of inquiry with respect to any such notice, election,
instruction, or written instrument, but in its discretion may request any tax
waivers, proof of signatures or other evidence which it reasonably deems
necessary for its protection. The Depositor and the successors of the Depositor
including any executor or administrator of the Depositor shall, to the extent
permitted by law, indemnify the Custodian and its successors and assigns against
any and all claims, actions or liabilities of the Custodian to the Depositor or
the successors or beneficiaries of the Depositor whatsoever (including without
limitation all reasonable expenses incurred in defending against or settlement
of such claims actions or liabilities) which may arise in connection with this
Agreement or the Custodial Account, except those due to the Custodian's own bad
faith, gross negligence or willful misconduct. The Custodian shall not be under
any duty to take any action not specified in this Agreement, unless the
Depositor shall furnish it with instructions in proper form and such
instructions shall have been specifically agreed to by the Custodian, or to
defend or engage in any suit with respect hereto unless it shall have first
agreed in writing to do so and shall have been fully indemnified to its
satisfaction.
14. Notices. All written notices required or permitted to be given by the
Custodian shall be deemed to have been given when sent by mail to the Depositor
at the Depositor's last address of record provided to the Custodian. All written
notices required or permitted to be given to the Custodian shall be deemed to
have been given when received by the Custodian if mailed to the Custodian at 000
Xxxx 00xx Xxxxxx, Xxx 000000, Xxxxxx Xxxx, Xxxxxxxx 00000 or such other address
as the Custodian shall provide to the Depositor from time to time.
15. Timing of Contributions. A contribution is deemed to have been made on the
last day of the preceding taxable year if the contribution is made by the
deadline for filing the Depositor's income tax return (not including extensions)
and if the Depositor designates the contribution as a contribution for the
preceding taxable year in a manner acceptable to the Custodian. The Custodian
will not be liable or responsible for any consequences of postal delays or
delays resulting from an incomplete Application or a designation made in an
unacceptable form. Applications received by IFTC postmarked after the deadline
will be treated as a contribution for the Depositor's current tax year.
Improperly completed applications will be returned to the sender.
16. Governing Law. This Agreement and the Custodial Account shall be construed,
administered and enforced according to the laws of the State of Missouri.
17. When Effective. This Agreement shall not become effective until acceptance
of the Application by the Custodian at its principal offices, as evidenced by a
written confirmation to the Depositor.
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Depositor's Signature_________________________________________ Date____________
Custodian's Signature_________________________________________ Date____________
Witness_________________________________________________________________________
(Use only if signature of the Depositor or the Custodian
is required to be witnessed.)
DISCLOSURE STATEMENT
The following information is provided to you in accordance with the
requirements of the Internal Revenue Code (the "Code") and Treasury regulations
and should be reviewed in conjunction with the individual Retirement Custodial
Account Agreement (the "Custodial Agreement"), the Application for your XXX (the
"Application"), and the prospectus for the mutual funds of Oberweis Emerging
Growth Fund that are allowable investments for your XXX. The provisions of the
Custodial Agreement, Application and prospectus govern in any instance where the
Disclosure Statement is incomplete or appears to conflict. This Disclosure
Statement reflects the provisions of the Internal Revenue Code in effect on
January 1, 1993. This Disclosure Statement provides a nontechnical summary of
the law. Please consult with your tax advisor for more complete information and
refer to IRS Publication 590.
1. XXX STATUTORY REQUIREMENTS
An XXX is a trust or custodial account established for the exclusive benefit
of you and your beneficiaries. Current law requires that your XXX agreement be
in writing and that it meet the following requirements:
1. All contributions must be in cash and, for any taxable year, cannot exceed
100% of your compensation or $2,000, whichever is less, unless the contribution
is a rollover contribution or an employer contribution to a simplified employee
pension plan ("SEP").
2. The custodian or trustee must be a bank or other institution or person that
is approved by the Internal Revenue Service to administer your XXX in accordance
with current tax laws.
3. None of your XXX assets may be invested in life insurance contracts or
commingled with the assets of other people except in a common trust fund or
common investment fund.
4. Your interest in your XXX account is nonforfeitable.
5. Distribution from your XXX must be in accordance with certain minimum
distribution rules, which are explained in Section VII below.
II. RIGHT TO REVOKE
You may revoke your XXX at any time within seven days of the time your
Application is signed. To revoke your XXX, mail or deliver a written notice
stating "I hereby elect to revoke my Oberweis Emerging Growth Fund XXX." Sign
your name exactly as it appears on your Application, include your social
security number, and mail the notice to:
Investors Fiduciary Trust Company
127 West 10th Street, Box 419042
Xxxxxx Xxxx, Xxxxxxxx 00000
Your notice will be considered mailed on the date of postmark, or the date
of certification or registration if it is sent by certified or registered mail.
When IFTC receives the proper notice of revocation, you will be entitled to
a refund of your full XXX contribution, without any adjustment for expenses or
market fluctuations. If you have any questions concerning your right of
revocation, please call 0-000-000-0000 during regular business hours.
III. ELIGIBILITY
You may make regular contributions to an XXX if you receive compensation
from employment, earnings from self-employment, or alimony, and you have not
reached age 70 1/2 by the end of the tax year for which the contribution is
made. In addition, if you are married and file a joint tax return, you may make
contributions to an XXX for your spouse whether or not your spouse receives
compensation. You may make a rollover contribution to an XXX if you have
received an eligible rollover distribution from a qualified retirement plan or
tax-sheltered annuity or an eligible distribution from another XXX and elect
rollover treatment within 60 days. You may also make a trustee-to-trustee
transfer from another XXX. Finally, your employer may contribute to your XXX and
if your employer sponsors a simplified employee pension ("SEP"), your employer
can make contributions to a SEP/XXX on your behalf.
IV. CONTRIBUTIONS
A. Regular Contributions
You may contribute each year up to $2,000 or 100% of your compensation,
whichever is less, to your XXX. If you also establish a spousal XXX for your
spouse, you may contribute up to $2,250 or 100% of your compensation, if less,
which may be split between the two IRA's as you choose, provided that no more
than $2,000 may be contributed to either your XXX or the spousal XXX. If your
spouse has compensation in excess of $250, you and your spouse can make a larger
total contribution if you each contribute to a regular XXX. If your employer
contributes to your XXX, the contribution is treated as compensation paid to
you, whether or not the contribution is deductible, unless the contribution is
made under a SEP (see below). Compensation for these purposes means wages,
salaries, professional fees, or other amounts derived from or received for
personal services actually rendered. It includes earned income from self
employment and alimony or separate maintenance payments includable in income. It
does not include pension or annuity payments or deferred compensation.
B. Time for Making Regular Contributions
You may make regular contributions to your XXX and/or your spousal XXX
anytime during a year, up to and including the due date for filing your tax
return for the year, up to and including the due date for filing your tax return
for the year (without extensions). No regular contributions may be made to an
XXX for the calendar year in which you reach age 70 1/2 or later years. No
regular contributions to a spousal XXX may be made for years in which your
spouse is age 70 1/2 or older.
C. Deductibility
Regular XXX contributions are fully deductible unless you or your spouse are
active participants in a tax-qualified plan of an employer. If you or your
spouse are active participants in such a plan, then your allowable deduction for
regular XXX contributions is reduced or eliminated if your Adjusted Gross Income
("AGI") exceeds certain levels. (If you file separately and are married but live
apart from your spouse at all times during the year, you will be considered to
be single when applying the following rules regarding deduction limitations.)
The deductible amount is determined as follows:
1. If you (and your spouse) are not active participants in a tax-qualified
plan, any contribution up to the maximum amount is deductible.
2. If you (or your spouse) are an active participant in a tax-qualified plan,
and
(a) your AGI is $25,000 or less ($40,000 for a married couple filing a joint
return and $0 for a married person filing separately), any contribution up to
the maximum amount is deductible;
(b) your AGI is $35,000 or more ($50,000 for a married couple filing a joint
return and $10,000 for a married person filing separately), no XXX contribution
is deductible;
(c) your AGI is between $25,000 and $35,000 ($40,000 and $50,000 for a married
couple filing a joint return and $0 to $10,000 for a married person filing
separately), the deductible amount is reduced. In the case of a regular XXX, the
reduction is $0.20 for each $1.00 of AGI over $25,000 ($40,000 for a married
couple filing a joint return and $10,000 for a married person filing
separately). For a spousal XXX, the reduction is $0.225 for each $1.00 of AGI
over $40,000 if filing jointly. The limit will not be reduced below $200 unless
it is eliminated entirely.
To the extent that the deductibility of XXX contributions is reduced or
eliminated, then nondeductible contributions may be made to your XXX. Earnings
on all XXX contributions, whether or not the contributions themselves are
deductible, are tax-deferred until receipt. You must designate the amount of
nondeductible XXX contributions when filing your tax return for the year. If you
overstate the amount of your nondeductible contributions you must pay a $100
penalty, unless you can show that such overstatement was due to reasonable
cause. If you fail to report nondeductible XXX contributions you will be subject
to a $50 penalty, unless your failure was due to reasonable cause.
D. Rollover Contributions
1. Amounts Eligible for Rollover from Plans and Tax-Sheltered Annuities
You may make a rollover contribution to your XXX of an "eligible rollover
distribution" from an employer tax-qualified plan (an "employer plan") or a
tax-sheltered annuity (including a 403(b)(7) account). The administrator of the
employer plan or the payor of a distribution from the tax-sheltered annuity
should be able to tell you what portion of your payment is an eligible rollover
distribution. The following types of payments cannot be rolled over.
Non-Taxable Payments. In general, only the "taxable portion" of your payment
is an eligible rollover distribution. If you have made "after-tax" employee
contributions to the plan or annuity, these contributions will be non-taxable
when they are paid to you, and they cannot be rolled over. (After-tax employee
contributions generally are contributions you made from your own pay that were
already taxed.)
Payments Spread Over Long Periods. You cannot roll over a payment if it is
part of a series of equal (or almost equal) payments that are made at least once
a year and that will last for
. your lifetime (or your life expectancy), or
. your lifetime and your beneficiary's lifetime (or life expectancies), or
. a period of ten years or more.
Required Minimum Payments. Beginning in the year you reach age 70 1/2, a
certain portion of your payments cannot be rolled (or transferred) over because
it is a "required minimum payment" that must be paid to you.
2. Direct Rollover
You can choose a direct rollover of all or any portion of your payment from
an employer plan or a tax-sheltered annuity that is an "eligible rollover
distribution," as described above. In a direct rollover, the eligible rollover
distribution is paid directly from the plan or tax-sheltered annuity to your
XXX. If you choose a direct rollover, you are not taxed on a payment until you
later take it out of the XXX.
3. Rollover of Plan Payments Paid To You
A payment to you of an eligible rollover distribution from an employer plan
or tax-sheltered annuity is taxed in the year you receive it unless, within 60
days, you roll it over to an XXX (or another plan that accepts rollovers). If
you do not roll it over, special tax rules may apply. If any portion of the
payment to you is an eligible rollover distribution, the payor is required by
law to withhold 20% of that amount. This amount is sent to the IRS as income tax
withholding.
Sixty-Day Rollover Option. If you have an eligible rollover distribution
paid to you, you can still decide to roll over all or part of it to an XXX (or
another employer plan that accepts rollovers). If you decide to roll over, you
must make the rollover within 60 days after you receive the payment. The
portion of your payment that is rolled over will not be taxed until you take it
out of the XXX (or the employer plan).
You can roll over up to 100% of the eligible rollover distribution,
including an amount equal to the 20% that was withheld. If you choose to roll
over 100%, you must find other money within the 60-day period to contribute to
the XXX or the employer plan to replace the 20% that was withheld. (On the other
hand, if you roll over only the 80% that you received, you will be taxed on the
20% that was withheld.)
See the Special Tax Notice Regarding Plan Payments, that must be provided by
the plan administrator or payor of your employer plan or tax-sheltered annuity,
for additional information on the rules governing rollover and taxation of plan
distributions, or consult your tax advisor for more details.
You should maintain a separate XXX account for any rollovers of funds from
an employer plan if you want to preserve your ability to later roll over these
funds and earnings into another employer plan. Similarly, you should maintain a
separate account for any rollover of funds from a tax-sheltered annuity.
You can make a rollover from a tax-qualified plan of your spouse's employer
if you received all or a part of your spouse's share as a result of his or her
death. A spouse or former spouse who is a recipient of a distribution made under
a qualified domestic relations order may roll over all or part of the
distribution.
Because complex rules apply to distribution and rollovers of payments from
employer plans and tax-sheltered annuities, you should seek competent tax advice
whenever you contemplate receiving a distribution from a qualified plan or
tax-sheltered annuity or an XXX funded by a rollover from a qualified plan or
tax-sheltered annuity.
4. Rollovers from Other IRAs
You may also make a rollover contribution of amounts held in another XXX.
There are no limits on the amount of rollover contributions made to an XXX from
another XXX, except you may not roll over (or transfer) the required minimum
amount (described in VII.D.). However, the distribution from the first XXX must
be rolled over within 60 days of receipt and no more than one distribution per
year from an XXX may be rolled over into another XXX.
5. Tax-Deferral on XXX Rollover or Trustee-to-Trustee Transfer
An effective rollover allows you to postpone paying taxes on the amount
distributed from an employer plan, tax-sheltered annuity or XXX until it is
withdrawn from the recipient XXX. You do not report the distribution as income
and you do not take a deduction from the rollover contribution. Earnings on your
rollover XXX are tax-deferred until receipt. (Similarly, a trustee-to-trustee
transfer is not treated as a distribution and the amount transferred and
earnings are tax-deferred until receipt.)
E. SEP Contributions
If your employer has established a simplified employee pension ("SEP"), your
employer may make contributions to your SEP/XXX. If the SEP contains a salary
reduction arrangement, you may elect to reduce your salary by up to the lesser
of 15% of compensation or $7,000 (indexed); and have that amount contributed to
your SEP/XXX. The maximum SEP contribution, including salary reduction amounts
and employer contributions, is the lesser of 15% compensation or $30,000. SEP
contributions are not included in your taxable income.
V. Excess Contributions
Amounts contributed to an XXX which exceed the maximum allowable
contribution are treated as "excess contributors" and are subject to a
nondeductible 6% penalty tax for each year in which the excess remains in the
XXX. Excess contributions may be corrected and the 6% penalty tax avoided by
withdrawal of the excess and any earnings thereon before the due date (including
extensions) of the tax return for the tax year for which the excess contribution
was made. No deduction may be taken for the excess contributors and the earnings
must be included in taxable income for the year the contribution was made. The
earnings withdrawn may be subject to a 10% premature distribution tax if you are
under age 59 1/2. See Section VII.B.
An excess contribution may be withdrawn after the due date of the tax
return (including extensions) with the following consequences:
(a) If your total contribution for the tax year the excess contribution was
made is $2,250 or less (or below the limit of your employer's SEP contribution)
the excess contribution may be withdrawn without being included in income or
being subject to the 10% premature distribution tax. No deduction may be taken
for the excess contribution. Any earnings withdrawn will be included in income
and may be subject to the premature distribution tax.
(b) If your total contribution for the tax year the excess contribution was
made exceeds $2,250 (or, if higher, the limit of your employer's SEP
contribution) any excess contribution and any earnings on the excess
The Oberweis Funds The Oberweis Funds
Emerging Growth Portfolio P.O. Box 419042
Micro-Cap Portfolio Xxxxxx Xxxx, XX 00000
INDIVIDUAL RETIREMENT ACCOUNT APPLICATION
1. Account Registration
Name of Custodian:
Investors Fiduciary Trust Company, as Custodian
000 Xxxx 00xx Xxxxxx, Xxx 000000
Xxxxxx Xxxx, XX 00000
________________________________________________________
Name (One Only)
________________________________________________________
Address
________________________________________________________
City State Zip
________________________________________________________
Social Security # Date of Birth
________________________________________________________
Daytime Phone # Evening Phone #
2. Designation of Beneficiary
Primary Beneficiary
________________________________________________________
Relationship
________________________________________________________
Name
________________________________________________________
Address
________________________________________________________
City State Zip
________________________________________________________
Social Security # Date of Birth
________________________________________________________
Relationship
________________________________________________________
Name
________________________________________________________
Address
________________________________________________________
City State Zip
________________________________________________________
Social Security # Date of Birth
Secondary Beneficiary
________________________________________________________
Relationship
________________________________________________________
Name
________________________________________________________
Address
________________________________________________________
City State Zip
________________________________________________________
Social Security # Date of Birth
________________________________________________________
(If more space is needed for beneficiaries please provide above information on
each, on a separate sheet of paper.)
3a. Type of XXX (check only one)
Indicate contribution amount and year
[_] Regular [_] Spousal [_] SEP [_] Rollover
$___________________________ _____________________
Amount Year
3b. XXX Funded By:
[_] Contribution
[_] Direct Transfer of Assets from another XXX
[_] Direct Rollover from Employer "Qualified Plan" (401k, 403b, Money
Purchase Pension Plan, Profit Sharing Plan, etc.)
[_] Rollover from:
[_] Another XXX
[_] Qualified Retirement Plan or 403(b) Plan
4. Choose Your Investment
I have the right to direct the investments. I understand, however, that the
investment options available to me are limited to those shown below:
($1,000 minimum for each Portfolio to establish an XXX)
[_] Oberweis Emerging Growth Portfolio $_______________
[_] Oberweis Micro-Cap Portfolio $_______________
5. Annual Administrative Fee
An annual administrative fee of $12.00 per portfolio investment will be deducted
from your account automatically if not submitted separately. The custodian may
change this fee from time to time.
6. Telephone Transaction Option
Unless you indicate otherwise by checking the box below, you may effect
telephone exchanges between portfolios by calling 1-800-245-7311.
[_] I do not want telephone exchanges between portfolios.
7. Automatic Investing
Please enclose a voided, unsigned check for the bank account to be debited (or
deposit slip if debiting savings account).
You may invest in any of the Oberweis Funds automatically each month by
completing the following information, attaching a voided unsigned check and
returning it to the Oberweis Funds (c/o IFTC). You will receive a confirmation
of each transaction and the deduction from your bank account will appear on your
monthly bank statement.
Please invest the amount indicated (minimum $100 per portfolio) in the following
portfolio(s) on or about the
[_] 5th day [_] 20th day
(20th will be selected if no box is checked)
[_] of each month [_] of each quarter
This bank account is a
[_] Checking [_] Savings
Your first automatic monthly investment will occur no sooner than two weeks
after the receipt of your application.
[_] Oberweis Emerging Growth Portfolio
$ ____________________________________
[_] Oberweis Micro-Cap Portfolio
$ ____________________________________
8. Signatures (Important: Please read before signing)
Spousal Consent
(For use in community or marital property states)
(This section should be reviewed if either the trust or the residence of the
accountholder is located in a community or marital property state and the
accountholder is married and is designating a beneficiary other than the spouse.
It is the accountholder's responsibility to determine if this section applies.
The accountholder may need to consult with legal counsel. Neither the Custodian
or the Sponsor will be liable for any consequences resulting from a failure of
the accountholder to provide proper spousal consent.)
I am the spouse of the above-named accountholder. I acknowledge that I have
received a full and reasonable disclosure of my spouse's property and financial
obligations. Due to any possible consequences of giving up my community property
interest in this XXX, I have been advised to see a tax professional or legal
advisor.
I hereby give the accountholder any interest I have in the funds or property
deposited in this XXX and consent to the beneficiary designation(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.
________________________________________________________________________________
Signature of Spouse Date
________________________________________________________________________________
Witness for Spouse Date
We cannot process this application if section below is not signed.
By signing the Application establishing an XXX, the undersigned: (1)
established an Individual Retirement Account pursuant to the Internal Revenue
Code of 1986, as amended, and in accordance with all the terms of the Form 5305A
Individual Retirement Custodial Account, together, with the Custodial Agreement
incorporated therein, (2) appoints Investors Fiduciary Trust Company (IFTC), or
its successors, as Custodian on the Account, (3) states that he or she has
received, read, accepts and specifically incorporated herein the Custodial
Agreement on Form 5305A and Disclosure Statement, (4) agrees to promptly give
instructions to the Custodian necessary to enable the Custodian to carry out its
duties under the Custodial Agreement, (5) agrees that he or she has received and
read the Prospectus for the investment(s) selected and that this account will be
subject to the Custodial Agreement as amended from time to time, (6) has the
authority and legal capacity to purchase mutual fund shares, is of legal age in
his/her state and believes each investment is suitable for him/her and (7)
hereby ratifies any instructions given on this account and any account into
which he/she exchanges related to the above items and agrees that neither The
Oberweis Funds nor IFTC will be liable for any loss, cost or expense for acting
upon such instructions (by telephone or writing) believed to be genuine and in
accordance with the procedures described in the Prospectus.
Under penalties of perjury, I certify that the number shown on this form is my
correct social security number.
________________________________________________________________________________
Signature of Depositor Date
Mailing Address:
The Oberweis Funds The Oberweis Funds
Emerging Growth Portfolio P.O. Box 419042
Micro-Cap Portfolio Xxxxxx Xxxx, XX 00000
In accordance with the terms and conditions set forth in this form the Fund's
current Prospectus and my instructions below, I wish to establish a Shareholder
Account in the Fund.
1. Account Registration
a.) Individual: PLease print or type:
_________________________________________________________
First Name Middle Name Last Name
b.) Joint Owner
_________________________________________________________
First Name Middle Name Last Name
c.) Gift to Minor: Minor's Social Security Number must be indicated in
Section 3.
_____________________________________________________ as custodian for
Custodian's Name (only one permitted)
____________________________________________________________ under the
Minor's Name (only one permitted)
__________________________________________ Uniform Gifts/Transfers to Minors Act
Donor's State of Residence
d.) A Trust (including Corporate Pension Plans)
____________________________________________________ as trustee(s) for
Name of Trustee(s)
______________________________________________________________________
Name of Trust
under agreement dated ________________________________________________
Date of Trust
e.) A Corporation, Partnership, or other entity:
Please include corporate resolution
______________________________________________________________________
Name of Corporation or other entity
[_] Corporation [_] Partnership [_] Other __________________________
Please Specify
2. Mailing Address
______________________________________________________________________
Xxxxxx Xxxxxxx Xxx./Xxxxx #
______________________________________________________________________
Xxxx Xxxxx Xxx
______________________________________________________________________
Daytime Phone Evening Phone
3. Social Security Number or Tax I.D. Number
Your application will be returned if sections 3 and 5 are not completed and
signed.
_______________________________________________________________________
Social Security Number or Employer Tax Identification Number
Check One:
[_] U.S. Citizen
[_] Resident Alien
(must have US Tax ID Number and domestic address)
[_] Non-Resident Alien of ________________________________________
Country of Tax Residency
if different from mailing address
4. Choose Your Investment
Please make my investment in the portfolio(s) below.
Initial investment minimum $1000 per portfolio
[_] Oberweis Emerging Growth Portfolio $________________
[_] Oberweis Micro-Cap Portfolio $________________
5. Investment Method
[_] By Check Amount enclosed $______________
[_] By Wire Amount of wire $______________
For wire investment, please call 0-000-000-0000
For your account number, Acct # ________________
For protection of our shareholders, there is a 15-day hold placed on your
investment to ensure good funds.
6. Automatic Investing Method
Please enclose a voided, unsigned check for the bank account to be debited (or
deposit slip if debiting savings account).
You may invest in any of the Oberweis Funds automatically each month or quarter
by completing the following information, attaching a voided unsigned check and
returning it to The Oberweis Funds (c/o IFTC). You will receive a confirmation
of each transaction and the deduction from your bank account will appear on your
monthly bank statement.
Please invest the amount indicated (minimum $100 per portfolio) in the following
portfolio(s) on or about the
[_] 5th day [_] 20th day
(20th will be selected if no box is checked)
[_] of each month [_] of each quarter
This bank account is a
[_] Checking [_] Savings
Your first automatic monthly investment will occur no sooner than two weeks
after the receipt of your application.
[_] Oberweis Emerging Growth Portfolio $ _________________
[_] Oberweis Micro-Cap Portfolio $ _________________
7. Distribution Options
All income dividends and capital gains distributions will be reinvested unless
noted below:
[_] Pay all income in cash
[_] Pay all capital gains in cash
If dividend or withdrawal checks are to be made payable to someone other than
the registered owner complete the following. Make dividend
[_] withdrawal [_] checks payable to:
_________________________________________________________________
Name
_________________________________________________________________
Address
_________________________________________________________________
City State Zip
8. Telephone Transaction Options
Unless you indicate otherwise by checking the appropriate box below, you may
effect telephone transactions by calling 1-800-245-7311.
[_] I do not want Telephone Exchanges between Funds
[_] I do not want Telephone Redemption by Mail. Redemption check will be
mailed only to the name and address in which your account is
registered.
[_] I do not want Telephone Redemption by Electronic Transfer* Allows you
to make redemptions by telephone and have the amounts transferred
electronically to your bank account.
*Please enclose a voided, unsigned check (or deposit slip if savings account) to
ensure accurate banking information.
9. Dealer Information
For Dealer Only
We hereby authorize The Chicago Corporation to act as agent in connection with
transactions under this authorization form. We guarantee the shareholder's
signature.
_______________________________________________________________________________
Firm Name
_______________________________________________________________________________
Representative's First/Last Name
_______________________________________________________________________________
Representative's Number
_______________________________________________________________________________
Branch Address
_______________________________________________________________________________
City State Zip
10. Signatures
All of the undersigned have the authority and legal capacity to purchase mutual
fund shares, all are of legal age in their state and believe each investment is
suitable for themselves. All of the undersigned have received and read the
Prospectus for the investment selected, agree to its terms and understand that
by signing below (a) when elected their account will have the Exchange privilege
capability with other Oberweis Portfolios. All information provided in the above
items will apply to any portfolio into which their shares may be exchanged; (b)
they hereby ratify any instructions given on this account and any account into
which they exchange related to the above items and agree that neither The
Oberweis Funds nor ___________________________ will be liable for any loss, cost
or expense for acting upon such instructions (by telephone or writing) believed
to be genuine and in accordance with the procedures described in the Prospectus;
and (c) their responsibility is to read the Prospectus of any Fund into which
they exchange.
Under penalties of perjury, I certify:
(1) The number shown on this form is my correct social security or taxpayer
identification number and
(2) I am not subject to backup withholding because: (a) I am exempt from backup
withholding, or (b) I have not been notified by the Internal Revenue Service
(IRS) that I am subject to backup withholding as a result of a failure to
report all interest or dividends, or (c) the IRS has notified me that I am
no longer subject to backup withholding.
[_] Check this box only if the IRS has notified you that you are subject to
backup withholding.
_______________________________________________________________________________
Signature of Owner, Trustee or Custodian Date
_______________________________________________________________________________
Signature of Joint Owner (if any) Date
Send this request to:
The Oberweis Funds
X.X. Xxx 000000
Xxxxxx Xxxx, XX 00000
Terms and Conditions of Account Application
Additional Investment
After a Shareholder Account is established, additional investments in amounts of
$100 or more may be made at any time. Such additional investments will be
applied to the purchase of full and fractional shares of the Portfolio at the
public offering price. These investments should be accompanied by an investment
transmittal stub (attached to any previously received shareholder confirmation)
and mailed directly to the Fund's Transfer Agent, Investors Fiduciary Trust
Company.
Systematic Withdrawal Plan
A Systematic Withdrawal Plan is available for shareholders who wish to receive
monthly or quarterly payments of $50 or more. Systematic withdrawals require the
deposit of shares having a value of $10,000 or more based upon the current Net
Asset Value per share. Withdrawal payments represent proceeds from redemption of
shares held in the account. Redemptions are made at Net Asset Value, as
determined at the close of business on the New York Stock Exchange five business
days prior to the end of each month or the end of the last month of the quarter
or year, whichever is applicable. If the date is one on which the NYSE is not
open for business, shares will be redeemed at the close of business on the
following day.
Withdrawals concurrent with the purchase of additional shares may be inadvisable
because of tax liabilities. (The Fund limits additional purchases in a
withdrawal account to amounts equal to at least one year's scheduled withdrawals
or $1,000, whichever is greater.) The shareholder may terminate his Systematic
Withdrawal Plan at any time by giving written notice to the Fund's Custodian.
His Systematic Withdrawal Plan may also be terminated at any time by the Fund,
or the Distributor, by giving written notice to the shareholder. There is no
charge or penalty upon termination of such an account.
Dividends and capital gain distributions paid on shares held in a Systematic
Withdrawal Account must be reinvested in full and fractional shares of the
Portfolio (rather than received in cash) at the Net Asset Value per share at the
close of business on the day of such payments.
Automatic Investment Plan
Shareholders who wish to make automatic subsequent investments into the Fund may
do so through the Automatic Investment Plan. Automatic Investments of at least
$100 can occur either monthly or quarterly, on or about the 5th or 20th of the
month. The funds will be transferred from the shareholder's checking or savings
account, using electronic funds transfer via the Automated Clearing House (ACH).
Purchases are made at Net Asset Value, as determined at the close of business on
the New York Stock Exchange on the day the funds are received at the Fund's
Custodian and Transfer Agent. If the date is one in which the NYSE is not open
for business, shares will be purchased at the close of business on the following
business day. Initial investments may not be made through this Plan.
The Plan is subject to the approval of the shareholder's bank. Your bank must be
able to accept ACH transactions and/or be a member of an ACH association. We
cannot guarantee acceptance by your bank.
The Plan can be terminated by sending written notice to the Fund's Custodian.
The notice must be received at least 5 business days prior to the date of the
next scheduled automatic purchase. The Plan is automatically terminated whenever
a check is returned unhonored by the shareholder's bank. The shareholder is
responsible for any charges incurred as a result of an unhonored transaction.
Additional Information
Each time there is a transaction in a Shareholder Account, the shareholder will
receive a confirmation statement showing the current transaction.
Certificates can be issued for full shares only. These certificates will be sent
to the shareholder only upon specific request.
The method of delivery of share certificates is at the option and risk of the
shareholder. If sent by mail, registered and insured mail is suggested.
All correspondence regarding Shareholder Accounts should be addressed to The
Oberweis Funds, c/o Investors Fiduciary Trust Company, X.X. Xxx 000000, Xxxxxx
Xxxx, Xxxxxxxx 00000.
This form is not authorized for distribution to prospective purchasers of shares
of the Portfolio in states where such shares are not qualified for sale.
[OBERWEIS LOGO]
Emerging Growth Fund
XXX TRANSFER REQUEST FORM
Investors Fiduciary Trust Company, as Custodian
To transfer assets from an existing XXX or to complete a rollover from a
qualified employer plan, 403(b) account or Xxxxx to an Oberweis Emerging Growth
Fund XXX, complete this form and attach a copy of a current statement from your
existing XXX or qualified retirement plan. If you are opening a new XXX, also
attach your completed XXX application to this form. Return this form and the
applicable attachments to Investors Fiduciary Trust Company, 000 Xxxx 00xx
Xxxxxx, Xxx 000000, Xxxxxx Xxxx, XX 00000.
===============================================================================
CUSTODIAN OF EXISTING ACCOUNT:
------------------------------------- --------------------------------------
Today's Date
------------------------------------- --------------------------------------
Custodian Name Your Social Security Number
------------------------------------- --------------------------------------
Custodian Address Your Name
------------------------------------- --------------------------------------
City State Zip Your Address
------------------------------------- --------------------------------------
Custodian Phone Number City State Zip
===============================================================================
INSTRUCTIONS TO CUSTODIAN OF EXISTING ACCOUNT, ACCT. NO. ______________________
I have established an Oberweis Emerging Growth Fund Individual Retirement
Account with Investors Fiduciary Trust Company as Custodian. Please withdraw
assets from my account in your custody in the following manner and send a check
payable to Investors Fiduciary Trust Company Individual Retirement Account in
the name of ________________________________________________________, 000 Xxxx
00xx Xxxxxx, Xxx 000000, Xxxxxx Xxxx, XX 00000. You will be receiving a letter
of acceptance from Investors Fiduciary Trust Company.
Portion of account to be transferred (check one): (Note: if you are age 70 1/2
or older, you must take out your minimum required distribution from your XXX
before completing a transfer.)
_____ 1. All of the assets in my account.
_____ 2. $__________________ in my account.
If you are transferring a certificate of deposit XXX choose one of the options
below:
_____ 1. Liquidate prior to maturity date. I am aware of and acknowledge the
penalty I will incur from an early withdrawal.
_____ 2. Liquidate at maturity. (Maturity date must be within 60 days. If the
mature date is less than 15 days from the date of this request, you
may want to contact your custodian bank to prevent automatic
reinvestment of the account.)
===============================================================================
AUTHORIZATIONS:
Shareholder Authorization: I hereby authorize Investors Fiduciary Company to
deposit the assets in my existing XXX, qualified employer plan or Section 403(b)
account according to the terms stated in this XXX Transfer Request Form. I
hereby acknowledge that strict requirements must be met to qualify for tax-free
rollover or transfer treatment; I hereby certify that the source of the transfer
or rollover contribution qualifies the contribution as such.
X____________________________________ ______________________
Signature Date
Custodian Authorization: Investors Fiduciary Trust Company hereby accepts its
appointment as Custodian of the above XXX account and upon receipt of assets,
will deposit such assets in an Oberweis Emerging Growth Fund XXX on behalf of
the Depositor authorizing this transfer or special rollover.
X_______________________________________________________
INVESTORS FIDUCIARY TRUST COMPANY Authorized Signature
Signature Guarantee: Your Current Trustee or Custodian may require your
signature to be Guaranteed. Call them for requirements.
Name of Bank or Firm Guaranteeing Signature: __________________________________
Signature of Officer & Title: _________________________________________________
