Federal Form 5305-A (Traditional Individual Retirement Custodial Account) (2024)

Traditional Individual Retirement Custodial Account
Form 5305-A (Rev. April 2017)
Form5305-A(Rev. April 2017)Department of the TreasuryInternal Revenue ServiceName of depositorDo not filewith the InternalRevenue ServiceTraditional Individual Retirement Custodial Account(Under section 408(a) of the Internal Revenue Code)Date of birth of depositorAccount numberAddress of depositorCheck if amendmentName of custodian...▶Address or principal place of business of custodianThe depositor named above is establishing a traditional individual retirement account under section 408(a) to provide for his or her retirement andfor the support of his or her beneficiaries after death.The custodian named above has given the depositor the disclosure statement required by Regulations section 1.408-6.dollars ($) in cash.The depositor has assigned the custodial accountThe depositor and the custodian make the following agreement.Article IExcept in the case of a rollover contribution described in section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), an employer contribution to asimplified employee pension plan as described in section 408(k), or a recharacterized contribution described in section 408A(d)(6), the custodian willaccept only cash contributions up to $5,500 per year for 2013 through 2017. For individuals who have reached the age of 50 by the end of the year, thecontribution limit is increased to $6,500 per year for 2013 through 2017. For years after 2017, these limits will be increased to reflect a cost-of-livingadjustment, if any.Article IIThe depositor’s interest in the balance in the custodial account is nonforfeitable.Article III1. No part of the custodial account funds may be invested in life insurance contracts, nor may the assets of the custodial account be commingledwith other property except in a common trust fund or common investment fund (within the meaning of section 408(a)(5)).2. No part of the custodial account funds may be invested in collectibles (within the meaning of section 408(m)) except as otherwise permitted bysection 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 IV1. Notwithstanding any provision of this agreement to the contrary, the distribution of the depositor’s interest in the custodial account shall be madein accordance with the following requirements and shall otherwise comply with section 408(a)(6) and the regulations thereunder, the provisions ofwhich are herein incorporated by reference.2. The depositor’s entire interest in the custodial account must be, or begin to be, distributed not later than the depositor’s required beginning date,April 1 following the calendar year in which the depositor reaches age 701/2. By that date, the depositor may elect, in a manner acceptable to thecustodian, to have the balance in the custodial account distributed in:(a) A single sum or(b) Payments over a period not longer than the life of the depositor or the joint lives of the depositor and his or her designated beneficiary.3. If the depositor dies before his or her entire interest is distributed to him or her, the remaining interest will be distributed as follows:(a) If the depositor dies on or after the required beginning date and:(i) The designated beneficiary is the depositor’s surviving spouse, the remaining interest will be distributed over the surviving spouse’s lifeexpectancy as determined each year until such spouse’s death, or over the period in paragraph (a)(iii) below if longer. Any interest remaining after thespouse’s death will be distributed over such spouse’s remaining life expectancy as determined in the year of the spouse’s death and reduced by 1 foreach subsequent year, or, if distributions are being made over the period in paragraph (a)(iii) below, over such period.(ii) The designated beneficiary is not the depositor’s surviving spouse, the remaining interest will be distributed over the beneficiary’s remaininglife expectancy as determined in the year following the death of the depositor and reduced by 1 for each subsequent year, or over the period inparagraph (a)(iii) below if longer.(iii) There is no designated beneficiary, the remaining interest will be distributed over the remaining life expectancy of the depositor asdetermined in the year of the depositor’s death and reduced by 1 for each subsequent year.(b) If the depositor dies before the required beginning date, the remaining interest will be distributed in accordance with paragraph (i) below or, ifelected or there is no designated beneficiary, in accordance with paragraph (ii) below.(i) The remaining interest will be distributed in accordance with paragraphs (a)(i) and (a)(ii) above (but not over the period in paragraph (a)(iii),even if longer), starting by the end of the calendar year following the year of the depositor’s death. If, however, the designated beneficiary is thedepositor’s surviving spouse, then this distribution is not required to begin before the end of the calendar year in which the depositor would havereached age 701/2. But, in such case, if the depositor’s surviving spouse dies before distributions are required to begin, then the remaining interest willbe distributed in accordance with paragraph (a)(ii) above (but not over the period in paragraph (a)(iii), even if longer), over such spouse’s designatedbeneficiary’s life expectancy, or in accordance with paragraph (ii) below if there is no such designated beneficiary.(ii) The remaining interest will be distributed by the end of the calendar year containing the fifth anniversary of the depositor’s death.4. If the depositor dies before his or her entire interest has been distributed and if the designated beneficiary is not the depositor’s surviving spouse,no additional contributions may be accepted in the account.Cat. No. 11820GForm5305-A(Rev. 4-2017)Form 5305-A (Rev. 4-2017)Page25. The minimum amount that must be distributed each year, beginning with the year containing the depositor’s required beginning date, is known asthe “required minimum distribution” and is determined as follows.(a) The required minimum distribution under paragraph 2(b) for any year, beginning with the year the depositor reaches age 701/2, is thedepositor’s account value at the close of business on December 31 of the preceding year divided by the distribution period in the uniform lifetime tablein Regulations section 1.401(a)(9)-9. However, if the depositor’s designated beneficiary is his or her surviving spouse, the required minimumdistribution for a year shall not be more than the depositor’s account value at the close of business on December 31 of the preceding year divided bythe number in the joint and last survivor table in Regulations section 1.401(a)(9)-9. The required minimum distribution for a year under this paragraph (a)is determined using the depositor’s (or, if applicable, the depositor and spouse’s) attained age (or ages) in the year.(b) The required minimum distribution under paragraphs 3(a) and 3(b)(i) for a year, beginning with the year following the year of the depositor’sdeath (or the year the depositor would have reached age 701/2, if applicable under paragraph 3(b)(i)) is the account value at the close of business onDecember 31 of the preceding year divided by the life expectancy (in the single life table in Regulations section 1.401(a)(9)-9) of the individual specifiedin such paragraphs 3(a) and 3(b)(i).(c) The required minimum distribution for the year the depositor reaches age 701/2 can be made as late as April 1 of the following year. Therequired minimum distribution for any other year must be made by the end of such year.6. The owner of two or more traditional IRAs may satisfy the minimum distribution requirements described above by taking from one traditional IRAthe amount required to satisfy the requirement for another in accordance with the regulations under section 408(a)(6).Article V1. The depositor agrees to provide the custodian with all information necessary to prepare any reports required by section 408(i) and Regulationssections 1.408-5 and 1.408-6.2. The custodian agrees to submit to the Internal Revenue Service (IRS) and depositor the reports prescribed by the IRS.Article VINotwithstanding any other articles which may be added or incorporated, the provisions of Articles I through III and this sentence will be controlling.Any additional articles inconsistent with section 408(a) and the related regulations will be invalid.Article VIIThis agreement will be amended as necessary to comply with the provisions of the Code and the related regulations. Other amendments may bemade with the consent of the persons whose signatures appear below.Article VIIIArticle VIII may be used for any additional provisions. If no other provisions will be added, draw a line through this space. If provisions are added,they must comply with applicable requirements of state law and the Internal Revenue Code and may not imply that they have been reviewed or preapproved by the IRS.Depositor’s signatureDateCustodian’s signatureDateWitness’ signatureDate(Use only if signature of the depositor or the custodian is required to be witnessed.)General InstructionsSection references are to the InternalRevenue Code unless otherwise noted.Purpose of FormForm 5305-A is a model custodial accountagreement that meets the requirements ofsection 408(a) However, only Articles Ithrough VII have been reviewed by the IRS. Atraditional individual retirement account(traditional IRA) is established after the form isfully executed by both the individual(depositor) and the custodian. To make aregular contribution to a traditional IRA for ayear, the IRA must be established no laterthan the due date of the individual’s incometax return for the tax year (excludingextensions). This account must be created inthe United States for the exclusive benefit ofthe depositor and his or her beneficiaries.Do not file Form 5305-A with the IRS.Instead, keep it with your records.For more information on IRAs, including therequired disclosures the custodian must givethe depositor, see Pub. 590-A, Contributionsto Individual Retirement Arrangements (IRAs),and Pub. 590-B, Distributions from IndividualRetirement Arrangements (IRAs).DefinitionsCustodian. The custodian must be a bank orsavings and loan association, as defined insection 408(n), or any person who has theapproval of the IRS to act as custodian.Depositor. The depositor is the person whoestablishes the custodial account.Traditional IRA for NonworkingSpouseForm 5305-A may be used to establish theIRA custodial account for a nonworkingspouse.Contributions to an IRA custodial accountfor a nonworking spouse must be made to aseparate IRA custodial account establishedby the nonworking spouse.Specific InstructionsArticle IV. Distributions made under thisarticle may be made in a single sum, periodicpayment, or a combination of both. Thedistribution option should be reviewed in theyear the depositor reaches age 701/2 toensure that the requirements of section 408(a)(6) have been met.Article VIII. Article VIII and any that follow itmay incorporate additional provisions that areagreed to by the depositor and custodian tocomplete the agreement. They may include, forexample, definitions, investment powers, votingrights, exculpatory provisions, amendment andtermination, removal of the custodian,custodian’s fees, state law requirements,beginning date of distributions, accepting onlycash, treatment of excess contributions,prohibited transactions with the depositor, etc.Attach additional pages if necessary.Form5305-A(Rev. 4-2017)

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