XXXXXXXX FUNDS, INC.
INDIVIDUAL RETIREMENT CUSTODIAL ACCOUNT
The following constitutes an agreement establishing an
Individual Retirement Account (under Section 408(a) of the Internal
Revenue Code) between the Depositor and the Custodian.
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 designed
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 Section 1.408-5 and 1.408-6.
2. The Custodian agrees to submit reports to the Internal
Revenue Service and the Depositor prescribed by 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 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. Investment of Account Assets. (a) All contributions to the
custodial account shall be invested in the shares of any regulated
investment company ("Investment Company") for which Xxxxxxxx Capital
Management, Inc. serves as investment advisor, or any other regulated
investment company designated by the investment advisor. Shares of stock
of an Investment Company shall be referred to as Investment Company
Shares."
(b) Each contribution to the custodial account shall identify
the Depositor's account number and be accompanied by a signed statement
directing the investment of that contribution. The Custodian may return
to the Depositor, without liability for interest thereon, any contribution
which is not accompanied by adequate account identification or an
appropriate signed statement directing investment of that contribution.
(c) Contributions shall be invested in whole and fractional
Investment Company Shares at the price and in the manner such shares are
offered to the public. All distributions received on Investment Company
Shares held in the custodial account shall be reinvested in like shares.
If any distribution of Investment Company Shares may be received in
additional like shares or in cash or other property, the Custodian shall
elect to receive such distribution in additional like Investment Company
Shares.
(d) All Investment Company Shares acquired by the Custodian
shall be registered in the name of the Custodian or its nominee. The
Depositor shall be the beneficial owner of all Investment Company Shares
held in the custodial account and the Custodian shall not vote any such
shares, except upon written direction of the Depositor. The Custodian
agrees to forward to the Depositor each prospectus, report, notice, proxy
and related proxy soliciting materials applicable to Investment Company
Shares held in the custodial account received by the Custodian.
(e) The Depositor may, at any time, by written notice to the
Custodian, redeem any number of shares held in the custodial account and
reinvest the proceeds in the shares of any other Investment Company. Such
redemptions and reinvestments shall be done at the price and in the manner
such shares are then being redeemed or offered by the respective
Investment Companies.
2. Amendment and Termination. (a) The Custodian may amend
the Custodial Account (including retroactive amendments) by delivering to
the Depositor written notice of such amendment setting forth the substance
and effective date of the amendment. The Depositor shall be deemed to
have consented to any such amendment not objected to in writing by the
Depositor within thirty (30) days of receipt of the notice, provided that
no amendment shall cause or permit any part of the assets of the custodial
account to be diverted to purposes other than for the exclusive benefit of
the Depositor or his or her beneficiaries.
(b) The Depositor may terminate the custodial account at any
time by delivering to the Custodian a written notice of such termination.
(c) The custodial account shall automatically terminate upon
distribution to the Depositor or his or her beneficiaries of its entire
balance.
3. Taxes and Custodial Fees. Any income taxes or other taxes
levied or assessed upon or in respect of the assets or income of the
custodial account and any transfer taxes incurred shall be paid from the
custodial account. All administrative expenses incurred by the Custodian
in the performance of its duties, including fees for legal services
rendered to the Custodian, and the Custodian's compensation shall be paid
from the custodial account, unless otherwise paid by the Depositor or his
or her beneficiaries.
The Custodian's fees are set forth in a schedule provided to the
Depositor. Extraordinary charges resulting from unusual administrative
responsibilities not contemplated by the schedule will be subject to such
additional charges as will reasonably compensate the Custodian. Fees for
refund of excess contributions, transferring to a successor trustee or
custodian, or redemption/reinvestment of Investment Company Shares will be
deducted from the refund or redemption proceeds and the remaining balance
will be remitted to the Depositor, or reinvested or transferred in
accordance with the Depositor's instructions.
4. Reports and Notices. (a) The Custodian shall keep
adequate records of transactions it is required to perform hereunder.
After the close of each calendar year, the Custodian shall provide to the
Depositor or his or her legal representative a written report or reports
reflecting the transactions effected by it during such year and the assets
and liabilities of the Custodial Account at the close of the year.
(b) All communications or notices shall be deemed to be given
upon receipt by the Custodian at Xxxxxxxx Funds, Inc., c/o Firstar Trust
Company, Mutual Fund Services, 000 Xxxx Xxxxxxxx Xxxxxx, 0xx Xxxxx, X.X.
Box 701, Milwaukee, WI 53201-0701, or the Depositor at his most recent
address shown in the Custodian's records. The Depositor agrees to advise
the Custodian promptly, in writing, of any change of address.
5. Designation of Beneficiary. The Depositor may designate a
beneficiary or beneficiaries to receive benefits from the custodial
account in the event of the Depositor's death. In the event the Depositor
has not designated a beneficiary, or if all beneficiaries shall predecease
the Depositor, the following persons shall take in the order named:
(a) The spouse of the Depositor;
(b) If the spouse shall predecease the Depositor or if the
Depositor does not have a spouse, then to the personal representative of
the Depositor's estate.
6. Multiple Individual Retirement Accounts. In the event the
Depositor maintains more than one individual retirement account (as
defined in Section 408(a)) and elects to satisfy his or her minimum
distribution requirements described in Article IV above by making a
distribution for another individual retirement account in accordance with
Paragraph 6 thereof, the Depositor shall be deemed to have elected to
calculate the amount of his or her minimum distribution under this
custodial account in the same manner as under the individual retirement
account from which the distribution is made.
7. Inalienability of Benefits. The benefits provided under
this custodial account shall not be subject to alienation, assignment,
garnishment, attachment, execution or levy of any kind and any attempt to
cause such benefits to be so subjected shall not be recognized except to
the extent as may be required by law.
8. Rollover Contributions and Transfers. The Custodian shall
have the right to receive rollover contributions and to receive direct
transfers from other custodians or trustees. All contributions must be
made in cash or check.
9. Conflict in Provisions. To the extent that any provisions
of this Article VIII shall conflict with the provisions of Articles IV, V
and/or VII, the provisions of this Article VIII shall govern.
10. Applicable State Law. This custodial account shall be
construed, administered and enforced according to the laws of the State of
Wisconsin.
XXXXXXXX FUNDS, INC.
XXXX INDIVIDUAL RETIREMENT CUSTODIAL ACCOUNT
The following constitutes an agreement establishing a Xxxx XXX
(under Section 408A of the Internal Revenue Code) between the depositor
and the custodian.
ARTICLE I
1. If this Xxxx XXX is not designated as a Xxxx Conversion IRA,
then, except in the case of a rollover contribution described in section
408A(e), the custodian will accept only cash contributions and only up to
a maximum amount of $2,000 for any tax year of the depositor.
2. If this Xxxx XXX is designated as a Xxxx Conversion IRA, no
contributions other than IRA Conversion Contributions made during the same
tax year will be accepted.
ARTICLE II
The $2,000 limit described in Article I is gradually reduced
to $0 between certain levels of adjusted gross income (AGI). For a single
depositor, the $2,000 annual contribution is phased out between AGI of
$95,000 and $110,000; for a married depositor who files jointly, between
AGI of $150,000 and $160,000; and for a married depositor who files
separately, between $0 and $10,000. In the case of a conversion, the
custodian will not accept IRA Conversion Contributions in a tax year if
the depositor's AGI for that tax year exceeds $100,000 or if the depositor
is married and files a separate return. Adjusted gross income is defined
in section 408A(c)(3) and does not include IRA Conversion Contributions.
ARTICLE III
The depositor's interest in the balance in the custodial account
if nonforfeitable.
ARTICLE IV
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, silver,
and platinum coins, coins issued under the laws of any state, and certain
bullion.
ARTICLE V
1. If the depositor dies before his or her entire interest is
distributed to him or her and the grantor's surviving spouse is not the
sole beneficiary, 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.
(a) Be distributed by December 31 of the year containing the
fifth anniversary of the depositor's death, or
(b) Be distributed over the life expectancy of the designated
beneficiary starting no later than December 31 of the year following the
year of the depositor's death.
If distributions do not begin by the date described in (b),
distribution method (a) will apply.
2. In the case of distribution method 1.(b) above, to determine the
minimum annual payment for each year, divide the grantor's entire interest
in the trust as of the close of business on December 31 of the preceding
year by the life expectancy of the designated beneficiary using the
attained age of the designated beneficiary as of the beneficiary's
birthday in the year distributions are required to commence and subtract 1
for each subsequent year.
3. If the depositor's spouse is the sole beneficiary on the
depositor's date of death, such spouse will then be treated as the
depositor.
ARTICLE VI
1. The depositor agrees to provide the custodian with information
necessary for the custodian to prepare any reports required under section
408(i) and 408A(d)(3)(E), regulations sections 1.408-5 and 1.408-6, and
under guidance published by the Internal Revenue Service.
2. The custodian agrees to submit reports to the Internal Revenue
Service and the depositor prescribed by the Internal Revenue Service.
ARTICLE VII
Notwithstanding any other articles which may be added or
incorporated, the provisions of Articles I through IV and this sentence
will be controlling. Any additional articles that are not consistent with
section 408A, the related regulations, and other published guidance will
be invalid.
ARTICLE VIII
This Agreement will be amended from time to time to comply with
the provisions of the Code, related regulations, and other published
guidance. Other amendments may be made with the consent of the persons
whose signatures appear below.
ARTICLE IX
1. Investment of Account Assets. a. All contributions to the
custodial account shall be invested in the shares of any regulated
investment company ("Investment Company") for which Xxxxxxxx Capital
Management, Inc. serves as investment advisor, or any other regulated
investment company designated by the investment advisor. Shares of stock
of an Investment Company shall be referred to as "Investment Company
Shares."
b. Each contribution to the custodial account shall identify the
depositor's account number and be accompanied by a signed statement
directing the investment of that contribution. The custodian may return
to the depositor, without liability for interest thereon, any contribution
which is not accompanied by adequate account identification or an
appropriate signed statement directing investment of that contribution.
c. Contributions shall be invested in whole and fractional
Investment Company Shares at the price and in the manner such shares are
offered to the public. All distributions received on Investment Company
Shares held in the custodial account shall be reinvested in like shares.
If any distribution of Investment Company Shares may be received in
additional like shares or in cash or other property, the custodian shall
elect to receive such distribution in additional like Investment Company
Shares.
d. All Investment Company Shares acquired by the custodian shall
be registered in the name of the custodian or its nominee. The depositor
shall be the beneficial owner of all Investment Company Shares held in the
custodial account and the custodian shall not vote any such shares, except
upon written direction of the depositor. The custodian agrees to forward
to the depositor each prospectus, report, notice, proxy and related proxy
soliciting materials applicable to Investment Company Shares held in the
custodial account received by the custodian.
e. The depositor may, at any time, by written notice to the
custodian, redeem any number of shares held in the custodial account and
reinvest the proceeds in the shares of any other Investment Company. Such
redemptions and reinvestments shall be done at the price and in the manner
such shares are then being redeemed or offered by the respective
Investment Companies.
2. Amendment and Termination. a. The custodian may amend the
Custodial Account (including retroactive amendments) by delivering to the
depositor written notice of such amendment setting forth the substance and
effective date of the amendment. The depositor shall be deemed to have
consented to any such amendment not objected to in writing by the
depositor within thirty (30) days of receipt of the notice, provided that
no amendment shall cause or permit any part of the assets of the custodial
account to be diverted to purposes other than for the exclusive benefit of
the depositor or his or her beneficiaries.
b. The depositor may terminate the custodial account at any time
by delivering to the custodian a written notice of such termination.
c. The custodial account shall automatically terminate upon
distribution to the depositor or his or her beneficiaries of its entire
balance.
3. Taxes and Custodial Fees. Any income taxes or other taxes
levied or assessed upon or in respect of the assets or income of the
custodial account and any transfer taxes incurred shall be paid from the
custodial account. All administrative expenses incurred by the custodian
in the performance of its duties, including fees for legal services
rendered to the custodian, and the custodian's compensation shall be paid
from the custodial account, unless otherwise paid by the depositor or his
or her beneficiaries.
The custodian's fees are set forth in a schedule provided to the
depositor. Extraordinary charges resulting from unusual administrative
responsibilities not contemplated by the schedule will be subject to such
additional charges as will reasonably compensate the custodian. Fees for
refund of excess contributions, transferring to a successor trustee or
custodian, or redemption/reinvestment of Investment Company Shares will be
deducted from the refund or redemption proceeds and the remaining balance
will be remitted to the depositor, or reinvested or transferred in
accordance with the depositor's instructions.
4. Reports and Notices. a. The custodian shall keep adequate
records of transactions it is required to perform hereunder. After the
close of each calendar year, the custodian shall provide to the depositor
or his or her legal representative a written report or reports reflecting
the transactions effected by it during such year and the assets and
liabilities of the Custodial Account at the close of the year.
b. All communications or notices shall be deemed to be given
upon receipt by the custodian at Xxxxxxxx Funds, Inc., c/o Firstar Trust
Company, Mutual Fund Services, 000 Xxxx Xxxxxxxx Xxxxxx, 0xx Xxxxx, X.X.
Box 701, Milwaukee, WI 53201-0701, or the depositor at his most recent
address shown in the custodian's records. The depositor agrees to advise
the custodian promptly, in writing, of any change of address.
5. Designation of Beneficiary. The depositor may designate a
beneficiary or beneficiaries to receive benefits from the custodial
account in the event of the depositor's death. In the event the depositor
has not designated a beneficiary, or if all beneficiaries shall predecease
the depositor, the following persons shall take in the order named:
a. The spouse of the depositor;
b. If the spouse shall predecease the depositor or if the
depositor does not have a spouse, then to the personal representative of
the depositor's estate.
6. Inalienability of Benefits. The benefits provided under this
custodial account shall not be subject to alienation, assignment,
garnishment, attachment, execution or levy of any kind and any attempt to
cause such benefits to be so subjected shall not be recognized except to
the extent as may be required by law.
7. Rollover Contributions and Transfers. Subject to the
restrictions in Article I, the custodian shall have the right to receive
rollover contributions and to receive direct transfers from other
custodians or trustees. All contributions must be made in cash or check.
8. Conflict in Provisions. To the extent that any provisions of
this Article VIII shall conflict with the provisions of Articles V, VI
and/or VIII, the provisions of this Article IX shall govern.
9. Applicable State Law. This custodial account shall be
construed, administered and enforced according to the laws of the State of
Wisconsin.
XXXXXXXX FUNDS, INC.
SIMPLE INDIVIDUAL RETIREMENT CUSTODIAL ACCOUNT
The participant whose name appears above is establishing a
savings incentive match plan for employees of small employers individual
retirement account (SIMPLE IRA) under sections 408(a) and 408(p) 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 participant the
disclosure statement required under Regulations section 1.408-6.
The participant and the custodian make the following agreement:
ARTICLE I
The custodian will accept cash contributions made on behalf of
the participant by the participant's employer under the terms of a SIMPLE
plan described in section 408(p). In addition, the custodian will accept
transfers or rollovers from other SIMPLE IRAs of the participant. No
other contributions will be accepted by the custodian.
ARTICLE II
The participant'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, silver, and platinum coins, coins issued under the laws of any
state, and certain bullion.
ARTICLE IV
1. Notwithstanding any provision of this agreement to the
contrary, the distribution of the participant'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 participant 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 participant and the surviving spouse and
shall apply to all subsequent years. The life expectancy of a nonspouse
beneficiary may not be recalculated.
3. The participant's entire interest in the custodial account
must be, or begin to be, distributed by the participant's requested
beginning date (April 1 following the calendar year end in which the
participant reaches age 70-1/2). By that date, the participant 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 participant.
c. An annuity contract that provides equal or
substantially equal monthly, quarterly, or annual payments over the joint
and last survivor lives of the participant and his or her designated
beneficiary.
d. Equal or substantially equal annual payments over a
specified period that may not be longer than the participant'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 participant and his or her designated
beneficiary.
4. If the participant 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 participant 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 participant dies before distribution of his or
her interest has begun, the entire remaining interest will, at the
election of the participant or, if the participant 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 participant'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
participant's death. If, however, the beneficiary is
the participant's surviving spouse, then this
distribution is not required to begin before December
31 of the year in which the participant would have
reached age 70-1/2.
c. Except where distribution in the form of an annuity
meeting the requirements of section 408(b0(3) and its related regulations
has irrevocably commenced, distributions are treated as having begun on
the participant's required beginning date, even though payments may
actually have been made before that date.
d. If the participant 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 participant'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 participant (or the joint
life and last survivor expectancy of the participant and the participant'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 participant and
designated beneficiary as of their birthdays in the year the participant
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 participant agrees to provide the custodian with
information necessary for the custodian to prepare any report required
under sections 408(i) and 408(l)(2) and Regulations sections 1.408-5 and
1.408-6.
2. The custodian agrees to submit reports to the Internal
Revenue Service and the participant as prescribed by the Internal Revenue
Service.
3. The custodian also agrees to provide the participant's
employer the summary description described in section 408(l)(2) unless
this SIMPLE IRA is a transfer SIMPLE IRA.
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
sections 408(a) and 408(p) 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. Investment of Account Assets. a. All contributions to the
custodial account shall be invested in the shares of any regulated
investment company ("Investment Company") for which Xxxxxxxx Capital
Management, Inc. serves as investment advisor, or any other regulated
investment company designated by the investment advisor. Shares of stock
of an Investment Company shall be referred to as Investment Company
Shares."
b. Each contribution to the custodial account shall
identify the Depositor's account number and be accompanied by a signed
statement directing the investment of that contribution. The Custodian
may return to the Depositor, without liability for interest thereon, any
contribution which is not accompanied by adequate account identification
or an appropriate signed statement directing investment of that
contribution.
c. Contributions shall be invested in whole and
fractional Investment Company Shares at the price and in the manner such
shares are offered to the public. All distributions received on
Investment Company Shares held in the custodial account shall be
reinvested in like shares. If any distribution of Investment Company
Shares may be received in additional like shares or in cash or other
property, the Custodian shall elect to receive such distribution in
additional like Investment Company Shares.
d. All Investment Company Shares acquired by the
Custodian shall be registered in the name of the Custodian or its nominee.
The Depositor shall be the beneficial owner of all Investment Company
Shares held in the custodial account and the Custodian shall not vote any
such shares, except upon written direction of the Depositor. The
Custodian agrees to forward to the Depositor each prospectus, report,
notice, proxy and related proxy soliciting materials applicable to
Investment Company Shares held in the custodial account received by the
Custodian.
e. The Depositor may, at any time, by written notice to
the Custodian, redeem any number of shares held in the custodial account
and reinvest the proceeds in the shares of any other Investment Company.
Such redemptions and reinvestments shall be done at the price and in the
manner such shares are then being redeemed or offered by the respective
Investment Companies.
2. Amendment and Termination. i. The Custodian may amend the
Custodial Account (including retroactive amendments) by delivering to the
Depositor written notice of such amendment setting forth the substance and
effective date of the amendment. The Depositor shall be deemed to have
consented to any such amendment not objected to in writing by the
Depositor within thirty (30) days of receipt of the notice, provided that
no amendment shall cause or permit any part of the assets of the custodial
account to be diverted to purposes other than for the exclusive benefit of
the Depositor or his or her beneficiaries.
b. The Depositor may terminate the custodial account at
any time by delivering to the Custodian a written notice of such
termination.
c. The custodial account shall automatically terminate
upon distribution to the Depositor or his or her beneficiaries of its
entire balance.
3. Taxes and Custodial Fees. Any income taxes or other taxes
levied or assessed upon or in respect of the assets or income of the
custodial account and any transfer taxes incurred shall be paid from the
custodial account. All administrative expenses incurred by the Custodian
in the performance of its duties, including fees for legal services
rendered to the Custodian, and the Custodian's compensation shall be paid
from the custodial account, unless otherwise paid by the Depositor or his
or her beneficiaries.
The Custodian's fees are set forth in a schedule provided to the
Depositor. Extraordinary charges resulting from unusual administrative
responsibilities not contemplated by the schedule will be subject to such
additional charges as will reasonably compensate the Custodian. Fees for
refund of excess contributions, transferring to a successor trustee or
custodian, or redemption/reinvestment of Investment Company Shares will be
deducted from the refund or redemption proceeds and the remaining balance
will be remitted to the Depositor, or reinvested or transferred in
accordance with the Depositor's instructions.
4. Reports and Notices. a. The Custodian shall keep adequate
records of transactions it is required to perform hereunder. After the
close of each calendar year, the Custodian shall provide to the Depositor
or his or her legal representative a written report or reports reflecting
the transactions effected by it during such year and the assets and
liabilities of the Custodial Account at the close of the year.
b. All communications or notices shall be deemed to be
given upon receipt by the Custodian at Xxxxxxxx Funds, Inc., c/o Firstar
Trust Company, Mutual Fund Services, 000 Xxxx Xxxxxxxx Xxxxxx, 0xx Xxxxx,
X.X. Box 701, Milwaukee, WI 53201-0701, or the Depositor at his most
recent address shown in the Custodian's records. The Depositor agrees to
advise the Custodian promptly, in writing, of any change of address.
5. Designation of Beneficiary. The Depositor may designate a
beneficiary or beneficiaries to receive benefits from the custodial
account in the event of the Depositor's death. In the event the Depositor
has not designated a beneficiary, or if all beneficiaries shall predecease
the Depositor, the following persons shall take in the order named:
a. The spouse of the Depositor;
b. If the spouse shall predecease the Depositor or if the
Depositor does not have a spouse, then to the personal representative of
the Depositor's estate.
6. Multiple Individual Retirement Accounts. In the event the
Depositor maintains more than one individual retirement account (as
defined in Section 408(a)) and elects to satisfy his or her minimum
distribution requirements described in Article IV above by making a
distribution for another individual retirement account in accordance with
Paragraph 6 thereof, the Depositor shall be deemed to have elected to
calculate the amount of his or her minimum distribution under this
custodial account in the same manner as under the individual retirement
account from which the distribution is made.
7. Inalienability of Benefits. The benefits provided under
this custodial account shall not be subject to alienation, assignment,
garnishment, attachment, execution or levy of any kind and any attempt to
cause such benefits to be so subjected shall not be recognized except to
the extent as may be required by law.
8. Rollover Contributions and Transfers. The Custodian shall
have the right to receive rollover contributions and to receive direct
transfers from other custodians or trustees. All contributions must be
made in cash or check.
9. Conflict in Provisions. To the extent that any provisions
of this Article VIII shall conflict with the provisions of Articles IV, V
and/or VII, the provisions of this Article VIII shall govern.
10. Applicable State Law. This custodial account shall be
construed, administered and enforced according to the laws of the State of
Wisconsin.
XXXXXXXX FUNDS, INC.
EDUCATION INDIVIDUAL RETIREMENT CUSTODIAL ACCOUNT
The depositor whose name appears above is establishing an
education individual retirement custodial account under section 530 for
the benefit of the designated beneficiary whose name appears above
exclusively to pay for the qualified higher education expenses, within the
meaning of section 530(b)(2), of such designated beneficiary.
The custodian named above has provided the depositor with a
concise statement disclosing the provisions governing section 530. This
disclosure statement must include an explanation of the statutory
requirements applicable to, and the income tax consequences of
establishing and maintaining an account under, section 530. Providing the
depositor with a copy of Notice 97-60, 1997-46 I.R.B. 8 (November 17,
1997) is considered a sufficient disclosure statement. The custodian also
will provide a copy of this form and the disclosure statement to the
responsible individual, as defined in Article VI below, if the responsible
individual is not the same person as the depositor.
The depositor assigned the custodial account
_______________________ dollars ($____________) in cash.
The depositor and the custodian make the following agreement:
ARTICLE I
The custodian may accept additional cash contributions. These
contributions may be from the depositor, or from any other individual, for
the benefit of the designated beneficiary, provided the designated
beneficiary has not attained the age of 18 as of the date such
contributions are made. Total contributions that are not rollover
contributions described in section 530(d)(5) are limited to a maximum
amount of $500 for the taxable year.
ARTICLE II
The maximum aggregate contribution that an individual may make
to the custodial account in any year may not exceed the $500 in total
contributions that the custodial account can receive. In addition, the
maximum aggregate contribution that an individual may make to the
custodial account in any year is phased out for unmarried individuals who
have modified adjusted gross income (AGI) between $95,000 and $110,000 for
the year of the contribution and for married individuals who file joint
returns with modified AGI between $150,000 and $160,000 for the year of
the contribution. Unmarried individuals with modified AGI above $110,000
for the year and married individuals who file joint returns and have
modified AGI above $160,000 for the year may not make a contribution for
that year. Modified AGI is defined in section 530(c)(2).
ARTICLE III
No part of the custodial account funds may be invested in life
insurance contracts, nor may the assets of the custodial account be
commingled with other property except in a common investment fund (within
the meaning of section 530(b)(1)(D)).
ARTICLE IV
1. Any balance to the credit of the designated beneficiary on
the date on which such designated beneficiary attains age 30 shall be
distributed to the designated beneficiary within 30 days of such date.
2. Any balance to the credit of the designated beneficiary shall
be distributed to the estate of the designated beneficiary within 30 days
of the date of such designated beneficiary's death.
ARTICLE V
The depositor shall have the power to direct the custodian
regarding the investment of the above-listed amount assigned to the
custodial account (including earnings thereon) in the investment choices
offered by the custodian. The responsible individual, however, shall have
the power to redirect the custodian regarding the investment of such
amounts, as well as the power to direct the custodian regarding the
investment of all additional contributions (including earnings thereon) to
the custodial account. In the event that the responsible individual does
not direct the custodian regarding the investment of additional
contributions (including earnings thereon), the initial investment
direction of the depositor also will govern all additional contributions
made to the custodial account until such time as the responsible
individual otherwise directs the custodian. Unless otherwise provided in
this agreement, the responsible individual also shall have the power to
direct the custodian regarding the administration, management, and
distribution of the account.
ARTICLE VI
The "responsible individual" named by the depositor shall be a
parent or guardian of the designated beneficiary. The custodial account
shall have only one responsible individual at any time. If the
responsible individual becomes incapacitated or dies while the designated
beneficiary is a minor under state law, the successor responsible
individual shall be the person named to succeed in that capacity by the
preceding responsible individual in a witnessed writing or, if no
successor is so named, the successor responsible individual shall be the
designated beneficiary's other parent or successor guardian. Unless
otherwise directed by checking the option below, at the time that the
designated beneficiary attains the age of majority under state law, the
designated beneficiary becomes the responsible individual.
______ Option (This provision is effective only if checked):
The responsible individual shall continue to serve as the responsible
individual for the custodial account after the designated beneficiary
attains the age of majority under state law and until such time as all
assets have been distributed from the custodial account and the custodial
account terminates. If the responsible individual becomes incapacitated
or dies after the designated beneficiary reaches the age of majority under
state law, the responsible individual shall be the designated beneficiary.
ARTICLE VII
The responsible individual ____ may or ____ may not change the
beneficiary designated under this agreement to another member of the
designated beneficiary's family described in section 529(e)(2) in
accordance with the custodian's procedures.
ARTICLE VIII
1. The depositor agrees to provide the custodian with the
information necessary for the custodian to prepare any reports required
under section 530(h).
2. The custodian agrees to submit reports to the Internal
Revenue Service and the responsible individual as prescribed by the
Internal Revenue Service.
ARTICLE IX
Notwithstanding any other articles which may be added or
incorporated, the provisions of Articles I through IV will be controlling.
Any additional articles that are not consistent with section 530 and
related regulations will be invalid.
ARTICLE X
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 depositor and the custodian whose
signatures appear below.
ARTICLE XI
1. Investment of Account Assets. a. All contributions to the
custodial account shall be invested in the shares of any regulated
investment company ("Investment Company") for which Xxxxxxxx Capital
Management, Inc. serves as investment advisor, or any other regulated
investment company designated by the investment advisor. Shares of stock
of an Investment Company shall be referred to as "Investment Company
Shares."
b. Each contribution to the custodial account shall identify
the designated beneficiary's account number and shall be accompanied by a
signed statement directing the investment of that contribution into the
designated beneficiary's account. The custodian may return to the
contributor, without liability for interest thereon, any contribution
which is not accompanied by such information and such appropriate signed
statement directing investment of that contribution.
c. Contributions shall be invested in whole and fractional
Investment Company Shares at the price and in the manner such shares are
offered to the public. All distributions received on Investment Company
Shares held in the custodial account shall be reinvested in like shares.
If any distribution of Investment Company Shares may be received in
additional like shares or in cash, the custodian shall elect to receive
such distribution in additional like Investment Company Shares.
d. All Investment Company Shares acquired by the custodian
shall be registered in the name of the custodian or its nominee. The
designated beneficiary shall be the beneficial owner of all Investment
Company Shares held in the custodial account and the custodian shall not
vote any such shares, except upon written direction of the responsible
individual. The custodian agrees to forward to the responsible individual
each prospectus, report, notice, proxy and related proxy soliciting
materials applicable to Investment Company Shares held in the custodial
account received by the custodian.
e. The responsible individual may, at any time, by written
notice to the custodian, redeem any number of shares held in the custodial
account and reinvest the proceeds in the shares of any other Investment
Company. Such redemptions and reinvestments shall be done at the price
and in the manner such shares are then being redeemed or offered by the
respective Investment Companies.
f. To the extent a responsible individual for the designated
beneficiary makes or has power to make decisions as to the investment of
the designated beneficiary's account, that party acknowledges that such
decisions are binding and nonvoidable.
2. Amendment and Termination. a. The custodian may amend the
Custodial Account (including retroactive amendments) by delivering to the
responsible individual written notice of such amendment setting forth the
substance and effective date of the amendment. The responsible individual
shall be deemed to have consented to any such amendment not objected to in
writing by the responsible individual within thirty (30) days of receipt
of the notice, provided that no amendment shall cause or permit any part
of the assets of the custodial account to be diverted to purposes other
than for the exclusive benefit of the designated beneficiary or his or her
estate.
b. The responsible individual may terminate the custodial
account at any time by delivering to the custodian a written notice of
such termination.
c. The custodial account shall automatically terminate upon
distribution to the designated beneficiary or his or her estate of its
entire balance.
3. Taxes and Custodial Fees. Any income taxes or other taxes
levied or assessed upon or in respect of the assets or income of the
custodial account and any transfer taxes incurred shall be paid from the
custodial account. All administrative expenses incurred by the custodian
in the performance of its duties, including fees for legal services
rendered to the custodian, and the custodian's compensation shall be paid
from the custodial account, unless otherwise paid by the beneficiary or
his or her estate.
The custodian's fees are set forth in a schedule provided to the
responsible individual. Extraordinary charges resulting from unusual
administrative responsibilities not contemplated by the schedule will be
subject to such additional charges as will reasonably compensate the
custodian. Fees for refund of excess contributions, transferring to a
successor trustee or custodian, or redemption/reinvestment of Investment
Company Shares will be deducted from the refund or redemption proceeds and
the remaining balance will be remitted to the designated beneficiary, or
reinvested or transferred in accordance with the responsible individual's
instructions.
4. Reports and Notices. a. The custodian shall keep adequate
records of transactions it is required to perform hereunder. After the
close of each calendar year, the custodian shall provide to the
responsible individual a written report or reports reflecting the
transactions effected by it during such year and the assets and
liabilities of the Custodial Account at the close of the year.
b. All communications or notices shall be deemed to be given
upon receipt by the custodian at Xxxxxxxx Funds, Inc., c/o Firstar Trust
Company, Mutual Fund Services, 000 Xxxx Xxxxxxxx Xxxxxx, 0xx xxxxx, X.X.
Box 701, Milwaukee, WI 53201-0701 or the responsible individual at his
most recent address shown in the custodian's records. The responsible
individual agrees to advise the custodian promptly, in writing, of any
change of address.
5. Monitoring of Contribution Limitations Information. The
custodian shall not be responsible for monitoring the amount of
contributions made to the designated beneficiary's account or the income
levels of any depositor or contributor for purposes of assuring compliance
with applicable state or federal tax laws.
6. Inalienability of Benefits. The benefits provided under
this custodial account shall not be subject to alienation, assignment,
garnishment, attachment, execution or levy of any kind and any attempt to
cause such benefits to be so subjected shall not be recognized except to
the extent as may be required by law. However, the responsible individual
may change the designated beneficiary under the agreement to another
member of the designated beneficiary's family described in Internal
Revenue Code Section 529(e)(2) in accordance with the custodian's
procedures.
7. Rollover Contributions and Transfers. The custodian shall
have the right to receive rollover contributions and to receive direct
transfers from other custodians or trustees. All contributions must be
made in cash or check.
8. Conflict in Provisions. To the extent that any provisions
of this Article XI on the Education IRA Application shall conflict with
the provisions of Articles V through VIII or X, the provisions of this
Article XI shall govern.
9. Applicable State Law. This custodial account shall be
construed, administered and enforced according to the laws of the State of
Wisconsin.
