IRA model Traditional IRA doucment Form 5305-A
Does the first two pages of every financial institution consists of IRA model Traditional IRA document Form 5305-A?
The form it self says that Article VIII and any that follow it may incorporate additional provisions that are agreed to by the depositor and custodian to complete the agreement but do the first two pages always read the same?
I am particularly interested in knowing how much a custodian can change the distribution because of the second comment in Article IV, #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:…”
Just to make a crazy point… could a custodial say after article VIII that a depositor agreed to a default distribution if no designated beneficiary are listed that the funds go to his second and third child?
Permalink Submitted by Alan - IRA critic on Wed, 2013-08-28 21:58
5305 A is used only by smaller IRA custodians. Large custodians submit their entire prototype IRA agreement to the IRS for approval and this typically incorporates both the disclosure requirements contained in 5305 A and the details required by the tax code, as well as certain custodian options permitted under the various tax code sections. With respect to default beneficiary provisions, these can and do vary from custodian to custodian with respect to spousal, estate and children defaults, but would not include eliminating the first child from the default wording. If the depositor wants that to occur they would simply make the second and third children the default beneficiaries or contingent beneficiaries.