EXHIBIT (14)
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Form of Disclosure Statement and Custodial Account Agreement
for Transamerica Investors IRA
TRANSAMERICA INVESTORS RETIREMENT PORTFOLIOS
Disclosure Statement
and Custodial Account
Agreement for
Transamerica Investors
IRA
. IRA requirements
. How to revoke your IRA
. Fees and expenses
. Eligibility
. Contributions
. Deduction guidelines
and restrictions
. Transfers and Rollovers
. Investments
. Withdrawals
. Tax reporting
. Tax Information
. Account terminations
. IRA documents
. Custodial Agreement
[LOGO]
TRANSAMERICA
INVESTORS
IRA DISCLOSURE STATEMENT
Establishing your IRA
THIS DISCLOSURE STATEMENT CONTAINS INFORMATION ABOUT YOUR INDIVIDUAL RETIREMENT
CUSTODIAL ACCOUNT WITH STATE STREET BANK AND TRUST COMPANY AS CUSTODIAN. Your
IRA gives you several tax benefits. Earnings on the assets held in your IRA are
not subject to federal income tax until withdrawn by you. You may be able to
deduct all or part of your IRA contribution on your federal income tax return.
State income tax treatment of your IRA may differ from federal treatment; ask
your state tax department or your personal tax advisor for details.
ALL IRAs MUST MEET CERTAIN REQUIREMENTS. Contributions generally must be made in
cash. The IRA trustee or custodian must be a bank or other person who has been
approved by the Secretary of the Treasury. Your contributions may not be
invested in life insurance or be commingled with other property except in a
common trust or investment fund. Your interest in the account must be
nonforfeitable at all times. You may obtain further information on IRAs from any
district office of the Internal Revenue Service.
YOU MAY REVOKE A NEWLY ESTABLISHED IRA at any time within seven days after the
date on which you receive this Disclosure Statement. An IRA established more
than seven days after the date of your receipt of this Disclosure Statement may
not be revoked.
TO REVOKE YOUR IRA, mail or deliver a written notice of revocation to the
Custodian at the address which appears at the end of this Disclosure Statement.
Mailed notice will be deemed given on the date that it is postmarked (or, if
sent by certified or registered mail, on the date of certification or
registration). If you revoke your IRA within the seven-day period, you are
entitled to a return of the entire amount you contributed into your IRA, without
adjustment for such items as sales charges, administrative expenses or
fluctuations in market value.
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Fees and Expenses for your IRA
CUSTODIAN'S FEES
The following is a list of the fees charged by the Custodian for maintaining
your IRA.
. Account Installation Fee
. Annual Maintenance Fee per mutual fund
. Termination, Rollover, or Transfer of Account to Successor Custodian
GENERAL FEE POLICIES
. Fees may be paid by you directly or the Custodian may deduct them from your
IRA.
. Fees may be changed upon 30 days written notice to you.
. The full annual maintenance fee will be charged for any calendar year during
which you have an IRA with us. This fee is not prorated for periods of less
than one full year.
. Termination fees are charged when your account is closed, whether the funds
are distributed to you or transferred to a successor custodian or trustee.
. The Custodian may charge you for its reasonable expenses for services not
covered by its fee schedule.
OTHER CHARGES
There may be sales or other charges associated with the purchase or redemption
of shares of a Fund in which your IRA is invested. Be sure to read carefully the
current prospectus of any Fund you are considering as an investment for your IRA
for a description of applicable charges.
Elegibility for an IRA
WHAT ARE THE ELIGIBILITY REQUIREMENTS FOR AN IRA? You are eligible to establish
and contribute to an IRA for a year if:
. You received compensation (or earned income if you are self employed) during
the year for personal services you rendered. If you received taxable alimony,
this is treated like compensation for IRA purposes.
. You did not reach age 70 1/2 during the year.
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IRA Contributions
CAN I CONTRIBUTE TO AN IRA FOR MY SPOUSE? For each year before the year when
your spouse attains age 70 1/2, you can contribute to a separate IRA for your
spouse, regardless of whether your spouse had any compensation or earned income
in that year. This is called a "spousal IRA." To make a contribution to a
spousal IRA for your spouse, you must file a joint tax return and your spouse
must either have no compensation or earned income or must elect to be treated as
having no compensation or earned income for that year. For a spousal IRA, your
spouse must set up a different IRA, separate from yours, to which you
contribute.
WHEN CAN I MAKE CONTRIBUTIONS TO AN IRA? You may make a contribution to your
existing IRA or establish a new IRA for a taxable year by the due date (not
including any extensions) for your federal income tax return for the year.
Usually this is April 15 of the following year.
HOW MUCH CAN I CONTRIBUTE TO MY IRA? For each year when you are eligible (see
above), you can contribute up to the lesser of $2,000 or 100% of your
compensation (or earned income, if you are self-employed). Your contribution
depends upon whether you are (or your spouse is) an active participant in any
employer-sponsored retirement plan. If neither you nor your spouse is an active
participant, the entire IRA contribution is deductible.
If either you or your spouse is an active participant, your IRA contribution may
still be completely or partly deductible on your tax return. This depends on the
amount of your income.
HOW DO I DETERMINE MY OR MY SPOUSE'S "ACTIVE PARTICIPANT" STATUS? Your Form W-2
(or your spouse's W-2) should indicate if you were an active participant in an
employer-sponsored retirement plan for a year. If you have a question, you
should ask your employer or the plan administrator.
In one situation, your spouse's "active participant" status will not affect the
deductibility of your contributions to your IRA. This rule applies only if you
and your spouse file separate tax returns for the taxable year and you lived
apart at all times during the taxable year.
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WHAT ARE THE DEDUCTION RESTRICTIONS? The portion of your contribution that is
deductible depends upon your filing status and the amount of your adjusted gross
income ("AGI"). The following table shows the deduction rules for active
participants:
Your adjusted gross income
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If you are single: If your are married Then your IRA
filing jointly: contributions is
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UP TO $25,000 UP TO $40,000 FULLY DEDUCTIBLE
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OVER $25,000 LESS THAN $35,000 OVER $40,000 LESS THAN $50,000 PARTLY DEDUCTIBLE
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$35,000 AND UP $50,000 AND UP NOT DEDUCTIBLE
HOW DO I CALCULATE MY DEDUCTION IF I FALL IN THE "PARTLY DEDUCTIBLE" RANGE? If
your AGI falls in the partly deductible range, you must calculate the portion of
your contribution that is deductible. To do this, multiply your contribution by
a fraction. The numerator is the amount by which your AGI exceeds the lower
limit of the partly deductible range ($25,000 if single, or $40,000 if married
filing jointly). The denominator is $10,000. Subtract this from your
contribution and then round up to the nearest $10. The deductible amount is the
greater of the amount calculated or $200 (provided you contributed at least
$200). If your contribution was less than $200, then the entire contribution is
deductible.
For example, assume that you make a $2,000 contribution to your IRA in a year in
which you are an active participant in your employer's retirement plan. Also
assume that your AGI for the year is $47,555 and you are married, filing
jointly. You would calculate the deductible portion of your contribution this
way:
1. The amount by which your AGI exceeds the lower limit of the partly-deductible
range: (47,555-40,000)=7,555
2. Divide this by 10,000: (7,555+10,000)=0.7555
3. Multiply this by your contribution: (0.7555x$2,000)=$1,511
4. Subtract this from your contributions: ($2,000-$1,511)=$489
5. Round this up to the nearest $10: =$490
6. Your deductible contribution is the greater of this amount or $200.
Even though part or all of your contribution is not deductible, you may still
contribute to your IRA up to the limit on contributions ($2,000, or $2,250 for
spousal IRAs). When you file your tax return for the year, you must designate
the amount of non-deductible IRA contributions for the year. See IRS Form 8606.
HOW DO I DETERMINE MY AGI? AGI is your gross income minus those deductions which
are available to all taxpayers even if they don't itemize. Instructions to
calculate your AGI are provided with your income tax Form 1040 or 1040A.
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WHAT HAPPENS IF I CONTRIBUTE MORE THAN ALLOWED TO MY IRA? The maximum
contribution you can make to an IRA is $2,000 ($2,250 for spousal IRAs) or 100%
of compensation or earned income, whichever is less. Any amount contributed to
the IRA above the maximum is considered an "excess contribution." The excess is
calculated using your contribution limit, not the deductible limit. An excess
contribution is subject to excise tax of 6% for each year it remains in the IRA.
HOW CAN I CORRECT AN EXCESS CONTRIBUTION? Excess contributions may be corrected
without paying a 6% penalty. To do so, you must withdraw the excess and any
earnings on the excess before the due date (including extensions) for filing
your federal income tax return for the year for which you made the excess
contribution. A deduction should not be taken for any excess contribution.
Earnings on the amount withdrawn must also be withdrawn. The earnings must be
included in your income for the tax year for which the contribution was made and
may be subject to a 10% premature withdrawal tax if you have not reached age
59 1/2.
WHAT HAPPENS IF I DON'T CORRECT THE EXCESS CONTRIBUTION BY THE TAX RETURN DUE
DATE? Any excess contribution withdrawn after the tax return due date (including
any extensions) for the year for which the contribution was made will be subject
to the 6% excise tax. There will be an additional 6% excise tax for each year
the excess remains in your account.
Under limited circumstances, you may correct an excess contribution after tax
filing time by withdrawing the excess contribution (leaving the earnings in the
account). This withdrawal will not be includible in income nor will it be
subject to any premature withdrawal penalty if (1) your contributions to all
IRAs do not exceed $2,250 and (2) you did not take a deduction for the excess
amount (or you file an amended return (Form 1040X) which removes the excess
deduction).
HOW ARE EXCESS CONTRIBUTIONS TREATED IF NONE OF THE PRECEDING RULES APPLY?
Unless an excess contribution qualifies for the special treatment outlined
above, the excess contribution and any earnings on it withdrawn after tax filing
time will be includible in taxable income and may be subject to a 10% premature
withdrawal penalty. No deduction will be allowed for the excess contribution for
the year in which it is made.
Excess contributions may be corrected in a subsequent year to the extent that
you contribute less than your maximum amount. As the prior excess contribution
is reduced or eliminated, the 6% excise tax will become correspondingly reduced
or eliminated for subsequent tax years. Also, you may be able to take an income
tax deduction for the amount of excess that was reduced or eliminated, depending
on whether you would be able to take a deduction if you had instead contributed
the same amount.
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IRA Transfers and Rollovers
CAN I TRANSFER OR ROLL OVER A DISTRIBUTION I RECEIVE FROM MY EMPLOYER'S
RETIREMENT PLAN INTO AN IRA? Almost all distributions from employer plans or
403(b) arrangements (for employees of tax-exempt employers) are eligible for
rollover to an IRA. The main exceptions are
. payments over the lifetime or life expectancy of the participant (or
participant and a designated beneficiary),
. installment payments for a period of 10 years or more,
. required distributions starting at age 70 1/2, and
. payments of employee after-tax contributions.
If you are eligible to receive a distribution from a tax qualified retirement
plan as a result of, for example, termination of employment, plan
discontinuance, or retirement, all or part of the distribution may be
transferred directly into your IRA. This is a called a "direct rollover." Or,
you may receive the distribution and make a regular rollover to your IRA within
60 days. By making a direct rollover or a regular rollover, you can defer income
taxes on the amount rolled over until you subsequently make withdrawals from
your IRA.
The maximum amount you may roll over is the amount of employer contributions and
earnings distributed. You may not roll over any after-tax employee contributions
you made to the employer retirement plan. If you are over age 701/2 and are
required to take minimum distributions under the tax laws, you may not roll over
any amount required to be distributed to you under the minimum distribution
rules. Also, if you are receiving periodic payments over your or your and your
designated beneficiary's life expectancy or for a period of at least 10 years,
you may not roll over these payments. A regular rollover to an IRA must be
completed within 60 days after the distribution from the employer retirement
plan to be valid.
NOTE: A qualified plan administrator or 403(b) sponsor MUST WITHHOLD 20% OF YOUR
DISTRIBUTION for federal income taxes UNLESS you elect a direct rollover. Your
plan or 403(b) sponsor is required to provide you with information about direct
and regular rollovers and withholding taxes before you receive your distribution
and must comply with your directions to make a direct rollover.
The rules governing rollovers are complicated. Be sure to consult your tax
advisor or the IRS if you have a question about rollovers.
ONCE I HAVE ROLLED OVER A PLAN DISTRIBUTION INTO AN IRA, CAN I SUBSEQUENTLY ROLL
OVER INTO ANOTHER EMPLOYER'S QUALIFIED RETIREMENT PLAN? Yes. Part or all of an
eligible distribution received from a qualified plan may be transferred to
another qualified plan through the medium of an IRA. However, the IRA must have
no assets other
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than those which were previously distributed to you from the qualified plan.
Specifically, the IRA cannot contain any regular IRA contributions. Also, the
new qualified plan must accept rollovers.
HOW OFTEN CAN I MAKE A REGULAR ROLLOVER FROM MY IRA TO ANOTHER IRA? You may make
a regular rollover from one IRA to another only once in any 365-day period. This
rule applies to each individual IRA.
WHAT HAPPENS IF I COMBINE ROLLOVER CONTRIBUTIONS WITH MY REGULAR CONTRIBUTIONS
IN ONE IRA? If you wish to make both a regular annual contribution and a
rollover contribution, you may wish to open two separate IRAs by completing two
adoption agreements and two sets of forms. You should consult a tax advisor
before making your regular contribution to the IRA you established with rollover
contributions (or make a rollover contribution to the IRA to which you make your
regular contributions). This is because combining your regular annual
contributions and rollover contributions originating from an employer plan
distribution would prohibit the future rollover of the assets of the IRA into
another qualified plan. If despite this, you still wish to combine a rollover
contribution and the IRA holding your regular contributions, you should
establish the account as an Accumulation IRA on the Adoption Agreement and make
the contributions to that account.
HOW DO ROLLOVERS AFFECT MY CONTRIBUTION OR DEDUCTION LIMITS? Rollover
contributions, if properly made, do not count toward the maximum contribution.
Also, rollovers are not deductible and they do not affect your deduction limits
as described above.
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IRA Investments
HOW ARE MY IRA CONTRIBUTIONS INVESTED? You control the investment and
reinvestment of contributions to your IRA. Investments must be in one or more of
the Fund(s) available from time to time as listed in the Adoption Agreement for
your IRA or in an investment selection form included with your IRA Adoption
Agreement. You direct the investment of your IRA by giving your investment
instructions to the Distributor or Service Company for the Fund(s). Since you
control the investment of your IRA, you are responsible for any losses; neither
the Custodian, the Distributor nor the Service Company has any responsibility
for any loss or diminution in value occasioned by your exercise of investment
control.
Transactions for your IRA will generally be effected at the applicable public
offering price or net asset value for shares of the Fund(s) involved next
established after the Distributor or the Service Company (whichever may apply)
receives proper investment instructions from you; consult the current prospectus
for the Fund(s) involved for additional information.
Before making any investment, read carefully the current prospectus for any Fund
you are considering as an investment for your IRA. The prospectus will contain
information about the Fund's investment objectives and policies, as well as any
minimum initial investment or minimum balance requirements and any sales,
redemption or other charges.
Because you control the selection of investments for your IRA, the growth in
value of your IRA cannot be guaranteed or projected.
ARE THERE ANY RESTRICTIONS ON THE USE OF MY IRA ASSETS? The tax-exempt status of
your IRA will be revoked if you engage in any of the prohibited transactions
listed in Section 4975 of the tax code. The fair market value of your IRA will
be includible in your taxable income in the year in which such prohibited
transaction takes place. The fair market value of your IRA may also be subject
to a 10% penalty tax as a premature withdrawal if you have not yet reached the
age of 591/2.
Any investment in a collectible (for example, rare stamps) by your IRA is
treated as a taxable withdrawal; the only exception involves certain types of
government-sponsored coins.
WHAT IS A PROHIBITED TRANSACTION? Generally, a prohibited transaction is any
improper use of the assets in your IRA. Some examples of prohibited transactions
are:
. Direct or indirect sale or exchange of property between you and your IRA.
. Transfer of any property from your IRA to yourself or from yourself to your
IRA.
Your IRA could lose its tax exempt status if you use all or part of your
interest in your IRA as security for a loan or borrow any money from your IRA.
Any portion of your IRA used as security for a loan will be taxed as ordinary
income in the year in which the money is borrowed. If you are under age 591/2,
this amount will also be subject to a 10% penalty tax as a premature
distribution.
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Withdrawals from your IRA
WHEN CAN I MAKE WITHDRAWALS FROM MY IRA? You may withdraw from your IRA at any
time. However, withdrawals before age 591/2 may be subject to a 10% penalty tax
in addition to regular income taxes (see below).
WHEN MUST I START MAKING WITHDRAWALS? If you have not withdrawn your entire IRA
by the April 1 following the year in which you reach 701/2, you must make
minimum withdrawals in order to avoid penalty taxes. The minimum withdrawal
amount is determined by dividing the balance in your IRA (or IRAs) by your life
expectancy or the combined life expectancy of you and your designated
beneficiary. The minimum withdrawal rules are complex. Consult your tax advisor
for assistance.
The penalty tax is 50% of the difference between the minimum withdrawal amount
and your actual withdrawals during a year. The IRS may waive or reduce the
penalty tax if you can show that your failure to make the required minimum
withdrawals was due to reasonable cause and you are taking reasonable steps to
remedy the problem.
HOW ARE WITHDRAWALS FROM MY IRA TAXES? Amounts withdrawn by you are includible
in your gross income in the taxable year that you receive them, and are taxable
as ordinary income. Lump sum withdrawals from an IRA are not eligible for
averaging treatment available to certain lump sum distributions from qualified
employer retirement plans.
Since the purpose of the IRA is to accumulate funds for retirement, your receipt
or use of any portion of your IRA before you attain age 591/2 generally will be
considered as an early withdrawal and subject to a 10% penalty tax.
The 10% penalty tax for early withdrawal will not apply if the distribution
. was a result of your death or disability, or
. is one of a scheduled series of substantially equal periodic payments for your
life or life expectancy (or the joint lives or life expectancies of you and
your beneficiary).
If there is an adjustment to the scheduled series of payments, the 10% penalty
tax will be tax-free. However, if you made both deductible and nondeductible IRA
contributions, then each distribution will be treated as partly a return of your
nondeductible contributions (not taxable) and partly a distribution of
deductible contributions and earnings (taxable). The nontaxable amount is the
portion of the amount withdrawn which bears the same ratio as your total
nondeductible IRA contributions bear to the total balance of all your IRAs
(including rollover IRAs and SEPs).
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For example, assume that you made the following IRA contributions:
Year Deductible Nondeductible
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1988 $2,000
1989 $2,000
1990 $1,000 $1,000
1991 $1,000
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$5,000 $2,000
In addition assume that your IRA has total investment earnings through 1992 of
$1,000. During 1992 you withdraw $500. Your total account balance as of 12-31-92
is $7,500 as shown below.
Deductible Contributions $5,000
Nondeductible Contributions $2,000
Earnings On IRAs $1,000
Less 1992 Withdrawal $500
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Total Account Balance $7,500
as of 12/31/92
To determine the nontaxable portion of your 1992 withdrawal, the total 1992
withdrawal ($500) must be multiplied by a fraction. The numerator of the
fraction is the total of all nondeductible contributions remaining in the
account before the 1992 withdrawal ($2,000). The denominator is the total
account balance as of 12-31-92 ($7,500) plus the 1992 withdrawal ($500) or
$8,000. The calculation is:
Total Remaining
Nondeductible Contributions $2,000 x $500 = $125
Total Account Balance $8,000
Thus, $125 of the $500 withdrawal in 1992 will not be included in your taxable
income. The remaining $375 will be taxable for 1992. In addition, for future
calculations the remaining nondeductible contribution total will be $2,000 minus
$125, or $1,875.
A loss in your IRA investment may be deductible. You should consult your tax
advisor for further details on the appropriate calculation for this deduction if
applicable.
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Tax matters for your IRA
WHAT IRA REPORTS DOES THE CUSTODIAN ISSUE? The Custodian will report all
withdrawals to the IRS and the recipient on the appropriate form. For reporting
purposes, a direct transfer of assets to a successor custodian or trustee is not
considered a withdrawal.
The Custodian will report to the IRS the year-end value of your account and the
amount of any rollover or accumulation contribution made during a calendar year,
as well as the tax year for which a contribution is made. Unless the Custodian
receives an indication from you to the contrary, it will treat any amount as a
contribution for the tax year in which it is received. It is most important that
a contribution between January and April 15th for the prior year be clearly
designated as such.
WHAT TAX INFORMATION MUST I REPORT TO THE IRS? You must file Form 5329 with the
IRS for each taxable year for which you made an excess contribution, or you take
a premature withdrawal, or you withdraw less than the required minimum amount
from your IRA.
You must also report each nondeductible contribution to the IRS by designating
it a nondeductible contribution on your tax return. Use Form 8606. In addition,
for any year in which you make a nondeductible contribution or take a
withdrawal, you must include additional information on your tax return. The
information required includes: (1) the amount of your nondeductible
contributions for that year; (2) the amount of withdrawals from IRAs in that
year; (3) the amount by which your total nondeductible contributions for all the
years exceed the total amount of your distributions previously excluded from
gross income; and (4) the total value of all your IRAs as of the end of the
year. If you fail to report any of this information, the IRS will assume that
all your contributions were deductible. This will result in the taxation of the
portion of your withdrawals that should be treated as a nontaxable return of
your nondeductible contributions.
ARE IRA WITHDRAWALS SUBJECT TO WITHHOLDING? Federal income tax will be withheld
at a flat rate of 10% from any withdrawal from your IRA, unless you elect not to
have tax withheld. Withdrawals from an IRA are not subject to the mandatory 20%
income tax withholding that applies to most distributions from qualified plans
or 403(b) accounts that are not directly rolled over to another plan or IRA.
ARE THE EARNINGS ON MY IRA FUNDS TAXED? Any earnings on investments held in your
IRA are generally exempt from federal income taxes and will not be taxed until
withdrawn by you, unless the tax exempt status of your IRA is revoked.
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Termination of your IRA Account
You may terminate your IRA at any time after its establishment by sending a
complete withdrawal form, or a transfer authorization form, to:
State Street Bank and Trust Company
P.O. Box
Boston, MA
Your IRA with State Street Bank will terminate upon the first to occur of the
following:
. The date your properly executed withdrawal form (as described above) is
received and accepted by the Custodian or, if later, the termination date
specified in the withdrawal form.
. The date the IRA ceases to qualify under the tax code. This will be deemed a
termination.
. The transfer of the IRA to another custodian/trustee.
. The rollover of the amounts in the IRA to another custodian/trustee.
Any outstanding fees must be received prior to such a termination of your
account.
The amount you receive from your IRA will be treated as a withdrawal, and thus
the rules relating to IRA withdrawals will apply. For example, if the IRA is
terminated before you reach age 59 1/2, the 10% early withdrawal penalty may
apply on the amount you receive.
IRA Documents
The terms contained in Articles I to VII of the State Street Bank and Trust
Company Individual Retirement Custodial Account document have been promulgated
by the IRS in Form 5305-A for use in establishing an IRA custodial account that
meets the requirements of the tax laws for a valid IRA. This IRS approval
relates only to the form of Articles I to VIII and is not an approval of the
merits of the IRA or of any investment permitted by the IRA.
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IRA CUSTODIAL AGREEMENT
State Street Bank and Trust Company
INDIVIDUAL RETIREMENT CUSTODIAL ACCOUNT
The following provisions of Articles I to I are in the form promulgated by the
Internal Revenue Service in Form 5305-A for use in establishing an individual
retirement custodial account.
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) or 408(d)(3) of the Code 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.
01. 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) of the Code).
02. 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.
01. Notwithstanding any provisions 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.
02. 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.
03. The Depositor's entire interest in the custodial account must be, or begin
to be, distributed by the Depositor's required beginning date, the 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.
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(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.
04. 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.
05. In the case of 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.
06. 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.
15
ARTICLE V.
01. 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.
02. The Custodian agrees to submit reports to the Internal Revenue Service and
the Depositor as prescribed by the Internal Revenue Service.
ARTICLE VI.
Notwithstanding any other articles which may be added or incorporated, the
provisions of Articles 3 through 3 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 on the Adoption Agreement.
ARTICLE VIII.
01. As used in this Article the following terms have the following meanings:
"Custodian" means State Street Bank and Trust Company.
"Fund" means a mutual fund or registered investment company which is
specified in the Adoption Agreement, or which is designated by the
Distributor named in the Adoption Agreement, as being available as an
investment for the custodial account; provided, however, that such a mutual
fund or registered investment company must be legally offered for sale in
the state of the Depositor's residence in order to be a Fund hereunder.
"Distributor" means the entity which has a contract with the Fund(s) to
serve as distributor of the shares of such Fund(s).
In any case where there is no Distributor, the duties assigned hereunder to
the Distributor may be performed by the Fund(s) or by an entity that has a
contract to perform management or investment advisory services for the
Fund(s).
"Service Company" means any entity employed by the Custodian or the
Distributor, including the transfer agent for the Fund(s), to perform
various administrative duties of either the Custodian or the Distributor.
In any case where there is no Service Company, the duties assigned
hereunder to the Service Company will be performed by the Distributor (if
any) or by an entity specified in the second preceding paragraph.
02. The Depositor may revoke the custodial account established hereunder by
mailing or delivering a written notice of revocation to the Custodian
within seven days after the Depositor receives the Disclosure Statement
related to the custodial account. Mailed notice is treated as given to the
Custodian on date of the postmark (or on the date of Post Office
certification or registration in the case of notice sent by certified or
registered mail). Upon timely revocation, the Depositor's initial
contribution will be returned, without adjustment for administrative
expenses, commissions or sales charges, fluctuations in market value or
other changes.
03. All contributions to the custodial account shall be invested and reinvested
in full and fractional shares of one or more Funds. Such investments shall
be made in such proportions and/or in such amounts as Depositor from time
to time in the Adoption Agreement or by other written notice to the Service
Company (in such form as may be acceptable to the Service Company) may
direct.
16
The Service Company shall be responsible for promptly transmitting all
investment directions by the Depositor for the purchase or sale of shares
of one or more Funds hereunder to the Funds' transfer agent for execution.
However, if investment directions with respect to the investment of any
contribution hereunder are not received from the Depositor as required or,
if received, are unclear or incomplete in the opinion of the Service
Company, the contribution will be returned to the Depositor without
liability for interest or for loss of income or appreciation. If any
directions or other orders by the Depositor with respect to the sale or
purchase of shares of one or more Funds for the custodial account are
unclear or incomplete in the opinion of the Service Company, the Service
Company will refrain from carrying out such investment directions or from
executing any such sale or purchase, without liability for loss of income
or for appreciation or depreciation of any asset, pending receipt of
clarification or completion from the Depositor.
All investment directions by Depositor will be subject to any minimum
initial or additional investment or minimum balance rules applicable to a
Fund as described in its prospectus.
All dividends and capital gains or other distributions received on the
shares of any Fund held in the Depositor's account shall be retained in the
account and (unless received in additional shares) shall be reinvested in
full and fractional shares of such Fund.
04. Subject to the minimum initial or additional investment, minimum balance
and other exchange rules applicable to a Fund, the Depositor may at any
time direct the Service Company to exchange all or a specified portion of
the shares of a Fund in the Depositor's account for shares and fractional
shares of one or more other Funds. The Depositor shall give such directions
by written or telephonic notice acceptable to the Service Company, and the
Service Company will process such directions as soon as practicable after
receipt thereof (subject to the second paragraph of Section 3 of this
Articles).
05. Any purchase or redemption of shares of a Fund for or from the Depositor's
account will be effected at the public offering price or net asset value of
such Fund (as described in the then effective prospectus for such Fund)
next established after the Service Company has transmitted the Depositor's
investment directions to the transfer agent for the Fund(s).
Any purchase, exchange, transfer or redemption of shares of a Fund for or
from the Depositor's account will be subject to any applicable sales,
redemption or other charge as described in the then effective prospectus
for such Fund.
06. The Service Company shall maintain adequate records of all purchases or
sales of shares of one or more Funds for the Depositor's custodial account.
Any account maintained in connection herewith shall be in the name of the
Custodian for the benefit of the Depositor. All assets of the custodial
account shall be registered in the name of the Custodian or of a suitable
nominee. The books and records of the Custodian shall show that all such
investments are part of the custodial account.
The Custodian shall maintain or cause to be maintained adequate records
reflecting transactions of the custodial account. In the discretion of the
Custodian, records maintained by the Service Company with respect to the
account hereunder will be deemed to satisfy the Custodian's recordkeeping
responsibilities therefor. The Service Company agrees to furnish the
Custodian with any information the Custodian requires to carry out the
Custodian's recordkeeping responsibilities.
17
07. Neither the Custodian nor any other party providing services to the
custodial account will have any responsibility for rendering advice with
respect to the investment and reinvestment of Depositor's custodial
account, nor shall such parties be liable for any loss or diminution in
value which results from Depositor's exercise of investment control over
his custodial account. Depositor shall have and exercise exclusive
responsibility for and control over the investment of the assets of his
custodial account, and neither Custodian nor any other such party shall
have any duty to question his directions in that regard or to advise him
regarding the purchase, retention or sale of shares of one or more Funds
for the custodial account.
08. The Depositor may appoint an investment advisor with respect to the
custodial account on a form acceptable to the Custodian and the Service
Company. The investment advisor's appointment will be in effect until
written notice to the contrary is received by the Custodian and the Service
Company. While an investment advisor's appointment is in effect, the
investment advisor may issue investment directions or may issue orders for
the sale or purchase of shares of one or more Funds to the Service Company,
and the Service Company will be fully protected in carrying out such
investment directions or orders to the same extent as if they had been
given by the Depositor.
The Depositor's appointment of any investment advisor will also be deemed
to be instructions to the Custodian and the Service Company to pay such
investment advisor's fees to the investment advisor from the custodial
account hereunder without additional authorization by the Depositor or the
Custodian.
09. Distribution of the assets of the custodial account shall be made at such
time and in such form as Depositor (or the Beneficiary if Depositor is
deceased) shall elect by written order to the Custodian. Depositor
acknowledges that any distribution (except for distribution on account of
Depositor's disability or death, return of an "excess contribution"
referred to in Code Section 408(d), or a "rollover" from this custodial
account) made earlier than age 59 1/2 may subject Depositor to an
"additional tax on early distributions" under Code Section 72(t). For that
purpose, Depositor will be considered disabled if Depositor can prove, as
provided in Code Section 72(m)(7), that Depositor is unable to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or
be of long-continued and indefinite duration. It is the responsibility of
the Depositor (or the Beneficiary) by appropriate distribution instructions
to the Custodian to insure that the distribution requirements of Code
Section 401(a)(9) and Article 6 above are met. If the Depositor (or
Beneficiary) does not direct the Custodian to make distributions from the
custodial account by the time that such distributions are required to
commence in accordance with such distribution requirements, the Custodian
(and Service Company) shall assume that the Depositor (or Beneficiary) is
meeting the minimum distribution requirements from another individual
retirement arrangement maintained by the Depositor (or Beneficiary) and the
Custodian and Service Company shall be fully protected in so doing. The
Depositor (or the Depositor's surviving spouse) may elect to comply with
the distribution requirements in Article IV using the recalculation of life
expectancy method, or may elect that the life expectancy of the Depositor
(and/or the Depositor's surviving spouse) will not be recalculated; any
such election may be in such form as the Depositor (or surviving spouse)
provides (including the calculation of minimum distribution amounts in
accordance with a method that does not provide for recalculation of the
life expectancy of one or both of the Depositor and surviving spouse and
instructions to the Custodian in accordance with such method). Neither
Custodian nor any other party providing services to the custodial account
assumes any responsibility for the tax treatment of any distribution from
the custodial account; such responsibility rests solely with the person
ordering the distribution.
18
10. Custodian assumes (and shall have) no responsibility to make any
distribution except upon the written order of Depositor (or Beneficiary if
Depositor is deceased) containing such information as the Custodian may
reasonably request. Also, before making any distribution or honoring any
assignment of the custodial account, Custodian shall be furnished with any
and all applications, certificates, tax waivers, signature guarantees and
other documents (including proof of any legal representative's authority)
deemed necessary or advisable by Custodian, but Custodian shall not be
responsible for complying with an order which appears on its face to be
genuine, or for refusing to comply if not satisfied it is genuine, and
Custodian has no duty of further inquiry. Any distributions from the
account may be mailed, first-class postage prepaid, to the last known
address of the person who is to receive such distribution, as shown on the
Custodian's records, and such distribution shall to the extent thereof
completely discharge the Custodian's liability for such payment.
11. (a) The term "Beneficiary" means the person or persons designated as such
by the "designating person" (as defined below) on a form acceptable to the
Custodian for use in connection with the custodial account, signed by the
designating person, and filed with the Custodian. The form may name
individuals, trusts, estates, or other entities as either primary or
contingent beneficiaries. However, if the designation does not effectively
dispose of the entire custodial account as of the time distribution is to
commence, the term "Beneficiary" shall then mean the designating person's
estate with respect to the assets of the custodial account not disposed of
by the designation form. The form last accepted by the Custodian before
such distribution is to commence, provided it was received by the Custodian
(or deposited in the U.S. Mail or with a delivery service) during the
designating person's lifetime, shall be controlling and, whether or not
fully dispositive of the custodial account, thereupon shall revoke all such
forms previously filed by that person. The term "designating person" means
Depositor during his/her lifetime; after Xxxxxxxxx's death, it also means
Depositor's spouse if the spouse begins to receive a portion of the
custodial account (pursuant to such a designation by Depositor) under a
form of distribution permitted by Article 7. A designation by Xxxxxxxxx's
spouse shall relate solely to the balance remaining in the spouse's portion
of the custodial account after the death of the spouse.
(b) When and after distributions from the custodial account to Depositor's
Beneficiary commence, all rights and obligations assigned to Depositor
hereunder shall inure to, and be enjoyed and exercised by, Beneficiary
instead of Depositor.
12. (a) The Depositor agrees to provide information to the Custodian at such
time and in such manner as may be necessary for the Custodian to prepare
any reports required under Section 408(i) of the Code and the regulations
thereunder or otherwise.
(b) The Custodian or the Service Company will submit reports to the
Internal Revenue Service and the Depositor at such time and manner and
containing such information as is prescribed by the Internal Revenue
Service.
(c) The Depositor, Custodian and Service Company shall furnish to each
other such information relevant to the custodial account as may be required
under the Code and any regulations issued or forms adopted by the Treasury
Department thereunder or as may otherwise be necessary for the
administration of the custodial account.
(d) The Depositor shall file any reports to the Internal Revenue Service
which are required of him by law (including Form $329), and neither the
Custodian nor Service Company shall have any duty to advise Depositor
concerning or monitor Xxxxxxxxx's compliance with such requirement.
19
13. (a) Depositor retains the right to amend this custodial account document in
any respect at any time, effective on a stated date which shall be at least
60 days after giving written notice of the amendment (including its exact
terms) to Custodian by registered or certified mail, unless Custodian
waives notice as to such amendment. If the Custodian does not wish to
continue serving as such under this custodial account document as so
amended, it may resign in accordance with Section 17 below.
(b) Depositor delegates to the Custodian the Depositor's right so to amend,
provided the Custodian amends in the same manner all agreements comparable
to this one, having the same Custodian, permitting comparable investments,
and under which such power has been delegated to it; this includes the
power to amend retroactively if necessary or appropriate in the opinion of
the Custodian in order to conform this custodial account to pertinent
provisions of the Code and other laws or successor provisions of law, or to
obtain a governmental ruling that such requirements are met, to adopt a
prototype or master form of agreement in substitution for this Agreement,
or as otherwise may be advisable in the opinion of the Custodian. Such an
amendment by the Custodian shall be communicated in writing to Depositor,
and Depositor shall be deemed to have consented thereto unless, within 30
days after such communication to Depositor is mailed, Depositor either (i)
gives Custodian a written order for a complete distribution or transfer of
the custodial account, or (ii) removes the Custodian and appoints a
successor under Section 17 below.
Pending the adoption of any amendment necessary or desirable to conform
this custodial account document to the requirements of any amendment to the
Internal Revenue Code or regulations or rulings thereunder, the Custodian
and the Service Company may operate the Depositor's custodial account in
accordance with such requirements to the extent that the Custodian and/or
the Service Company deem necessary to preserve the tax benefits of the
account.
(c) Notwithstanding the provisions of subsections (a) and (b) above, no
amendment shall increase the responsibilities or duties of Custodian
without its prior written consent.
(d) This Section 13 shall not be construed to restrict the Custodian's
right to substitute fee schedules in the manner provided by Section 16
below, and no such substitution shall be deemed to be an amendment of this
Agreement.
14. (a) Custodian shall terminate the custodial account if this Agreement is
terminated or if, within 30 days (or such longer time as Custodian may
agree) after resignation or removal of Custodian under Section 17,
Depositor has not appointed a successor which has accepted such
appointment. Termination of the custodial account shall be effected by
distributing all assets thereof in a single payment in cash or in kind to
Depositor, subject to Custodian's right to reserve funds as provided in
Section 17.
(b) Upon termination of the custodial account, this custodial account
document shall have no further force and effect, and Custodian shall be
relieved from all further liability hereunder or with respect to the
custodial account and all assets thereof so distributed.
15. (a) In its discretion, the Custodian may appoint one or more contractors or
service providers to carry out any of its functions and may compensate them
from the custodial account for expenses attendant to those functions.
(b) The Service Company shall be responsible for receiving all
instructions, notices, forms and remittances from Depositor and for dealing
with or forwarding the same to the transfer agent for the Fund(s).
20
(c) The parties do not intend to confer any fiduciary duties on Custodian
or Service Company for any other party providing services to the custodial
account), and none shall be implied. Neither shall be liable (or assumes
any responsibility) for the collection of contributions, the proper amount,
time or deductibility of any contribution to the custodial account or the
propriety of any contributions under this Agreement, or the purpose, time,
amount (including any minimum distribution amounts) or propriety of any
distribution hereunder, which matters are the responsibility of Depositor
and Depositor's Beneficiary.
(d) As soon as is practicable after the close of each taxable year, and
whenever required by the Code, or Regulations thereunder, the Custodian and
Service Company shall each file with Depositor a written report or reports
reflecting the transactions effected by it during such period and the
assets of the custodial account at its close. Upon the expiration of 60
days after such a report is sent to Depositor (or Beneficiary), the
Custodian and Service Company shall be forever released and discharged from
all liability and accountability to anyone with respect to transactions
shown in or reflected by such report except with respect to any such acts
or transactions as to which Depositor shall have filed written objections
with the Custodian or Service Company within such 60 day period.
(e) The Service Company shall deliver, or cause to be delivered, to
Depositor all notices, prospectuses, financial statements and other reports
to shareholders, proxies and proxy soliciting materials relating to the
shares of the Funds(s) credited to the custodial account. No shares shall
be voted, and no other action shall be taken pursuant to such documents,
except upon receipt of adequate written instructions from Depositor.
(f) Depositor shall always fully indemnify Service Company, Distributor,
the Fund(s) and Custodian and save them harmless from any and all liability
whatsoever which may arise either (i) in connection with this Agreement and
the matters which it contemplates, except that which arises directly out of
the Service Company's, Distributor's or Custodian's negligence or willful
misconduct, or (ii) with respect to making or failing to make any
distribution, other than for failure to make distribution in accordance
with an order therefor which is in full compliance with Section 10. Neither
Service Company nor Custodian shall be obligated or expected to commence or
defend any legal action or proceeding in connection with this Agreement or
such matters unless agreed upon by that party and Depositor, and unless
fully indemnified for so doing to that party's satisfaction.
(g) The Custodian and Service Company shall each be responsible solely for
performance of those duties expressly assigned to it in this Agreement, and
neither assumes any responsibility as to duties assigned to anyone else
hereunder or by operation of law.
(h) Custodian and Service Company may each conclusively rely upon and shall
be protected in acting upon any written order from Depositor or
Beneficiary, or any investment advisor appointed under Section 8, or any
other notice, request, consent, certificate or other instrument or paper
believed by it to be genuine and to have been properly executed, and so
long as it acts in good faith, in taking or omitting to take any other
action in reliance thereon. In addition, Custodian will carry out the
requirements of any apparently valid court order relating to the custodial
account and will incur no liability or responsibility for so doing.
16. (a) The Custodian, in consideration of its services under this Agreement,
shall receive the fees specified on the applicable fee schedule. The fee
schedule originally applicable shall be the one specified in the Disclosure
Statement furnished to the Depositor. The Custodian may substitute a
different fee schedule at any time upon 30 days' written
21
notice to Depositor. The Custodian shall also receive reasonable fees for
any services not contemplated by any applicable fee schedule and either
deemed by it to be necessary or desirable or requested by Depositor.
(b) Any income, gift, estate and inheritance taxes and other taxes of any
kind whatsoever, including transfer taxes incurred in connection with the
investment or reinvestment of the assets of the custodial account, that may
be levied or assessed in respect to such assets, and all other
administrative expenses incurred by the Custodian in the performance of its
duties (including fees for legal services rendered to it in connection with
the custodial account) shall be charged to the custodial account.
(c) All such fees and taxes and other administrative expenses charged to
the custodial account shall be collected either from the amount of any
contribution or distribution to or from the account, or (at the option of
the person entitled to collect such amounts) to the extent possible under
the circumstances by the conversion into cash of sufficient shares of one
or more Funds held in the custodial account (without liability for any loss
incurred thereby). Notwithstanding the foregoing, the Custodian or Service
Company may make demand upon the Depositor for payment of the amount of
such fees, taxes and other administrative expenses. Fees which remain
outstanding after 60 days may be subject to a collection charge.
17. (a) Upon 30 days' prior written notice to the Custodian, Depositor may
remove it from its office hereunder. Such notice, to be effective, shall
designate a successor custodian and shall be accompanied by the successor's
written acceptance. The Custodian also may at any time resign upon 30 days'
prior written notice to Depositor, whereupon the Depositor shall appoint a
successor to the Custodian.
(b) The successor custodian shall be a bank, insured credit union, or other
person satisfactory to the Secretary of the Treasury under Code Section
408(a)(2). Upon receipt by Custodian of written acceptance by its successor
of such successor's appointment, Custodian shall transfer and pay over to
such successor the assets of the custodial account and all records (or
copies thereof) of Custodian pertaining thereto, provided that the
successor custodian agrees not to dispose of any such records without the
Custodian's consent. Custodian is authorized, however, to reserve such sum
of money or property as it may deem advisable for payment of all its fees,
compensation, costs, and expenses, or for payment of any other liabilities
constituting a charge on or against the assets of the custodial account or
on or against the Custodian, with any balance of such reserve remaining
after the payment of all such items to be paid over to the successor
custodian.
(c) Any Custodian shall not be liable for the acts or omissions of its
predecessor or its successor.
18. References herein to the "Internal Revenue Code" or "Code" and sections
thereof shall mean the same as amended from time to time, including
successors to such sections.
19. Except where otherwise specifically required in this Agreement, any notice
from Custodian to any person provided for in this Agreement shall be
effective if sent by first-class mail to such person at that person's last
address on the Custodian's records.
20. Depositor or Depositor's Beneficiary shall not have the right or power to
anticipate any part of the custodial account or to sell, assign, transfer,
pledge or hypothecate any part thereof. The custodial account shall not be
liable for the debts of Depositor or Depositor's Beneficiary or subject to
any seizure, attachment, execution or other legal process in respect
thereof. At no time shall it be possible for any part of the assets of the
custodial account to be used for or diverted to purposes other than for the
exclusive benefit of the Depositor or his/her Beneficiary.
22
21. When accepted by the Custodian, this Agreement is accepted in and shall be
construed and administered in accordance with the laws of the Commonwealth
of Massachusetts. Any action involving the Custodian brought by any other
party must be brought in a state or federal court in such Commonwealth.
This Agreement is intended to qualify under Code Section 408(a) as an
individual retirement custodial account and to entitle Depositor to the
retirement savings deduction under Code Section 219 if available, and if
any provision hereof is subject to more than one interpretation or any term
used herein is subject to more than one construction, such ambiguity shall
be resolved in favor of that interpretation or construction which is
consistent with that intent.
However, Custodian shall not be responsible for whether or not such
intentions are achieved through use of this Agreement, and Depositor is
referred to Depositor's attorney for any such assurances.
22. Depositor should seek advice from Xxxxxxxxx's attorney regarding the legal
consequences (including but not limited to federal and state tax matters)
of entering into this Agreement, contributing to the custodial account, and
ordering Custodian to make distributions from the account. Depositor
acknowledges that Custodian and Service Company (and any company associated
therewith) are prohibited by law from rendering such advice.
23. Articles 13 through 13 of this Agreement are in the form promulgated by the
Internal Revenue Service. It is anticipated that if and when the Internal
Revenue Service promulgates changes to Form 5305-A, the Custodian will
amend this Agreement correspondingly.
24. The Depositor acknowledges that he or she has received and read the current
prospectus for each Fund in which his or her account is invested and the
Individual Retirement Account Disclosure Statement related to the Account.
The Depositor represents under penalties of perjury that his or her Social
Security number (or other Taxpayer Identification Number) as stated in the
Adoption Agreement is correct.
23
TRANSAMERICA INVESTORS RETIREMENT PORTFOLIOS
[LOGO]
Call 000-00-XXX-XX
. Experienced, Professional
Investment Managers
. Dedicated Research Teams
. Commitment to Performance
. A Specially Assembled
Family of Funds
. Diversified Portfolios to
Help Reduce Risk
. No Sales Commissions
. Helpful Shareholder
Assistance, 12 Hours a Day
. Easy to Do Business With
. Transamerica Reliability
Please thoroughly read a current prospectus that contains more complete
investment information about the funds, including fees, risks, and expenses,
before you invest.
Mutual Funds are: not insured by the FDIC, not deposits of or obligations of, or
guaranteed by, any depository institution, and are subject to investment risk,
including possible loss of principal.
TRANSAMERICA
INVESTORS
[LOGO]
1995 Transamerica Securities Sales Corporation, Distributor
0000 Xxxxx Xxxxx Xxxxxx, Xxx Xxxxxxx, XX 00000-2287 TlCode/Date NASD Code?
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