Fillable Ira Distribution Request Form (Page 3 of 5) in pdf

SCOTTRADE SDIRA DISTRIBUTION REQUEST - CUSTOMER COPY (PLEASE RETAIN FOR YOUR RECORDS)

Rules and Conditions Applicable to Withdrawal

GENERAL INFORMATION

You must complete all sections of this form for proper tax reporting. The term "IRA" will be used below to refer to Traditional IRAs,

Rollover IRAs, SEP IRAs, SIMPLE IRAs and Roth IRAs unless otherwise specified.

The information on this form is provided as guidance and is not intended to be an exhaustive statement of IRA rules and

regulations. Additionally, this form should not be relied upon as your only source of information. If you fail to meet any IRS

requirements regulating IRA distributions, you may be subject to tax penalties. Professional tax and legal advice should

always be obtained for your specific situation.

ADDITIONAL INFORMATION

Monthly and Quarterly Systematic Distributions – If you take your distributions in systematic withdrawals, the tax withholding

election you make now will apply until you change it by filling out a new SDIRA Distribution Request form. Written instructions are

required to stop a Monthly or Quarterly Distribution.

Distributions of Cash – If you are requesting tax to be withheld from a cash distribution, you must have sufficient funds available in

cash to meet the amount or percentage you have elected to be withheld.

Distributions of Securities - If you are requesting tax to be withheld from a security distribution, you must have sufficient funds

available in cash to meet the amount or percentage you have elected to be withheld.

Substantially Equal Periodic Payments – If you are taking Substantially Equal Periodic Payments, they will be reported in

accordance with IRS regulations as EARLY DISTRIBUTION – NO KNOWN EXCEPTION APPLIES. If you qualify for an exception

on a premature distribution, you must file form 5329 (used for paying and waiving penalties) with your tax return. Consult your tax

advisor when establishing or making changes to a Substantially Equal Periodic Payment Plan.

Withdrawal of Excess Contribution – A return of excess contribution distribution is not required if you are correcting the excess

contribution by redesignating the excess contribution to subsequent tax years until the excess is depleted. If you choose this option,

do not complete this form. Consult your tax advisor for more information. You are required to file form 5329 with your tax return when

correcting an excess.

DISTRIBUTION REASON

You are required to give the reason for taking a withdrawal from your IRA. If more than one reason applies, you must complete a

separate Distribution Request form for each reason.

Normal Distribution – If you are an IRA holder age 59 ½ or older, you may take IRA distributions anytime without incurring an

IRS early distribution penalty. In a Traditional IRA, if you are age 70 ½ or older, you are responsible for taking an annual

Required Minimum Distribution (RMD) based on life expectancy. The IRS may impose a severe penalty for failure to take a

minimum payment. If you are a Roth IRA holder age 59 ½ or older and you otherwise qualify, distributions are not included in

your gross income. Roth IRA holders are not subject to Required Minimum Distributions. Normal distributions are reported on

the 1099R as code 7 for Traditional IRAs and code T for Roth IRAs.

Premature Distribution – If you are an IRA holder under age 59 ½ , withdrawals will generally be considered early

distributions. Unless an exception to the penalty applies, you must pay the appropriate penalty tax to the IRS. There are tax

implications of taking a premature distribution, i.e., a 10 percent penalty tax on the amount distributed in addition to the

inclusion of the amount in your regular income of the year you receive the distribution. Premature distributions are reported to

the IRS as code 1, even if you take an exemption. You must file IRS Form 5329 to claim an exemption. Consult your tax

advisor for a list of the penalty exceptions. All earnings received from a Roth IRA must be included in your gross income

unless the distribution is qualified or rolled back into a Roth IRA. A premature distribution from a Roth IRA is reported on the

1099R as code J.

Early Distribution from a SIMPLE IRA, No Known Exception (Code S) – Use for a distribution from a SIMPLE IRA taken

within two years of the date the first contribution was made if the taxpayer has not reached age 59 ½ and none of the

exceptions under Section 72(t) apply.

Disability Distribution – If you are an IRA holder under age 59 ½, you may take a distribution due to disability. The disability

must render you unable to engage in any substantial gainful activity and it must be medically determined that the condition will

result in a long, continued and indefinite duration or will lead to your death. Disability distributions are reported as code 3 on

the 1099R.

Revocation– IRA holders may revoke an IRA within seven days of opening the account. If revoked, you are entitled to a full

return of the contribution made. Generally, a revoked IRA distribution will be reported on the 1099R as code 8.

SF2035/11-15

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Ira Distribution Request Form Page 3

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