Individual Retirement Account (IRA)

Transcription

1 Logleaf Parters Fuds Idividual Retiremet Accout (IRA) Simple IRA Cotets BNY Mello Ivestmet Servicig Trust Compay 2 SIMPLE Idividual Retiremet Accout (IRA) Disclosure Statemet 4 SIMPLE Idividual Retiremet Custodial Accout Agreemet 14 SIMPLE IRA Applicatio Istructios 23 Privacy Notice 25 Refereces to the Custodia meas BNY Mello Ivestmet Servicig Trust Compay. IRADISADOPTAGRE

2 2 Logleaf Parters Fuds BNY Mello Ivestmet Servicig Trust Compay Supplemet to the SIMPLE Idividual Retiremet Accout (SIMPLE IRA) Disclosure Statemet For Tax Year SIMPLE IRA Cotributio Limits: The maximum allowable cotributio to your SIMPLE IRA for tax year 2018 is 100% of your salary up to $12,500 as deferred compesatio. This limit is i additio to your employer s matchig or o-elective cotributios. I the case of a eligible employee who will be age 50 or older before the ed of the caledar year, the above limitatio is $15,500 for For tax years after 2018, the above limits may be subject to Iteral Reveue Service ( IRS ) costof-livig adjustmets, if ay. Please read the SIMPLE Idividual Retiremet Accout Disclosure Statemet carefully or cosult IRS Publicatios 560 or cosult a professioal tax advisor for more iformatio about eligibility requiremets ad cotributio restrictios. Recharacterizatio of Roth IRA Coversio is Now Prohibited (Correctio Process): Effective Jauary 1, 2018, a Roth IRA coversio caot be recharacterized back to a traditioal IRA, SEP or SIMPLE IRA. I additio, amouts cotributed to a employer sposored qualified pla that were coverted to a Roth IRA caot be recharacterized back to a employer pla. A Roth IRA coversio is ow deemed a irrevocable electio ad caot be reversed or corrected. Prior to Jauary 1, 2018, you could correct a Roth IRA coversio made i error by recharacterizig the coversio back to a traditioal IRA, SEP or SIMPLE IRA. The recharacterizatio had to take place prior to the due date, icludig extesios, for filig your federal icome tax retur for the tax year i which the coversio was origially made. Accordig to the IRS, you ca recharacterize a Roth IRA coversio that took place i tax year 2017, provided that the recharacterizatio is completed by October 15, For more iformatio, please visit the IRS web site usig the search term IRA FAQs Recharacterizatio of Roth Rollovers ad Coversios. Pealty Tax Waiver for Medical Expeses: Your receipt or use of ay portio of your accout (excludig ay amout represetig a retur of o-deducted cotributios) before you attai age 59½ is cosidered a early or premature distributio. The premature distributio is subject to a pealty tax equal to 10% of the distributio amout uless a exceptio applies. Oe such exceptio is a distributio used to pay medical expeses i excess of a certai percetage of your adjusted gross icome. Effective immediately, the threshold for medical expeses has bee reduced from 10% to 7.5% for tax years 2017 ad Qualified Hurricae Distributios: If you sustaied a ecoomic loss due to Hurricaes Harvey, Irma or Maria, ad your primary residece was located i oe of the federally declared disaster areas, you may be eligible to request a qualified hurricae distributio from your traditioal, Roth, SEP or SIMPLE IRA. A qualified hurricae distributio caot ot exceed $100,000 (i aggregate across all retiremet accouts), ad is subject to certai deadlies. Temporary tax relief icludes: If you are uder age 59½, the distributio will ot be subject to a 10% early withdrawal pealty. The distributio may be repaid over a period of three years i the form of a rollover without beig subject to the oe rollover per 365 days rule or the 60-day rollover requiremet.

3 Idividual Retiremet Accout (IRA) 3 Amouts required to be icluded i taxable icome may be spread over a three year period, if you so elect. Amouts withdraw for a home purchase that was subsequetly cacelled due to the hurricae ca be recotributed without pealty. For more iformatio o qualified hurricae distributios ad other tax relief provisios applicable to idividuals affected by Hurricaes Harvey, Irma ad Maria, please visit the IRS web site usig the search term Tax Relief i Disaster Situatios Presidetially Declared Disaster Areas Special Relief: If you sustaied a ecoomic loss due to a presidetially declared disaster (icludig severe storms, floodig, torados, straight lie wids, wildfires, ad such), ad your primary residece was located i oe of the federally declared disaster areas, you may be eligible to request a qualified disaster distributio from your traditioal IRA, Roth, SEP or SIMPLE IRA. A qualified disaster distributio caot ot exceed $100,000 (i aggregate across all retiremet accouts), ad is subject to certai deadlies. Temporary tax relief icludes: If you are uder age 59½, the distributio will ot be subject to a 10% early withdrawal pealty. The distributio may be repaid over a period of three years i the form of a rollover without beig subject to the oe rollover per 365 days rule or the 60-day rollover requiremet. Amouts required to be icluded i taxable icome may be spread over a three year period, if you so elect. The distributio must be made o or after Jauary 1, 2016 ad before Jauary 1, Late Rollover Cotributios: The Iteral Reveue Service (IRS) will permit you to deposit a late rollover cotributio (exceedig the 60-day time limit), if you meet certai qualificatios. All late rollover cotributio deposits must be accompaied by a late rollover self-certificatio form. It is importat to kow that self-certificatio does ot costitute a automatic waiver of the 60-day time limit. The IRS may, durig the course of a examiatio, determie that your cotributio does ot meet the requiremets for a waiver. If it is determied that you do ot meet the requiremets, you could be subject to additioal icome, icome taxes ad pealties. The IRA custodia is required to report all late rollover cotributio deposits o IRS Form For more iformatio ad a list of qualifyig evets, please visit the Iteral Reveue Service s web site usig the search term Reveue Procedure

4 4 Logleaf Parters Fuds SIMPLE Idividual Retiremet Accout (IRA) Disclosure Statemet The followig iformatio is the disclosure statemet required by federal tax regulatios. You should read this Disclosure Statemet, the Custodial Accout Agreemet ad prospectuses for the mutual fuds i which your Savigs Icetive Match Pla for Employees of Small Employers Idividual Retiremet Accout ( SIMPLE IRA ) cotributios will be ivested. The rules goverig IRAs are subject to chage. You should cosult Iteral Reveue Service ( IRS ) Publicatios 560 ad 590 or the IRS web site for updated rules ad requiremets. Importat Iformatio About U.S. Govermet Requiremets That May Affect Your Accout BNY Mello Ivestmet Servicig Trust Compay ( BNY Mello, we, or us ), provides custodial ad admiistrative services for your retiremet or savigs accout. As a result of this role, persos who ope a retiremet or savigs accout are cosidered customers of BNY Mello ( you or your ). To help the U.S. Govermet fight the fudig of terrorism ad moey lauderig activities, Federal law requires BNY Mello, as a fiacial istitutio, to obtai, verify, ad record iformatio that idetifies each perso who opes a accout. All accouts we ope are opeed o a coditioal basis coditioed o our ability to verify your idetity i accordace with Federal law. Whe establishig a accout, you are required to provide your full legal ame, address, govermet issued idetificatio umber (e.g. social security umber), date of birth, ad other iformatio withi your accout-opeig applicatio that will allow us to idetify you. We may also request a copy of your driver s licese or other idetifyig documets ad may cosult third-party databases to help verify your idetity. If the accout you are opeig will be registered i the ame of a beeficiary, trust, or estate or charity, we may require additioal idetifyig documetatio. If you fail to provide ay requested idetifyig iformatio or documetatio whe opeig your accout, your ew accout applicatio may be rejected. If we ope your accout, ad you subsequetly fail to provide all idetificatio materials we request or if we are subsequetly uable to adequately verify your idetity as required by U.S. Govermet regulatios, we reserve the right to take ay oe or more of the followig actios: We may place restrictios o your accout which block all purchase trasactios ad we may place additioal restrictios o your accout blockig other trasactioal activities if we determie such additioal restrictios are appropriate uder Federal law or regulatio. We may close your accout, sell (i.e., liquidate ) the assets i your accout i the prevailig market at the time, ad sed you a check represetig the cash proceeds of your accout. This distributio will be reported to the Iteral Reveue Service ad may result i ufavorable cosequeces to you uder Federal ad state tax laws. You May Icur Losses. Despite beig opeed as a coditioal accout, your accout will be ivested as you istruct ad you will be subject to all market risks durig the period betwee accout opeig ad ay liquidatio ecessitated by your failure to furish requested idetifyig iformatio or by a iability to adequately verify your idetity. You may also be subject to additioal market risks if the additioal trasactioal restrictios discussed above are placed o your accout. I additio, the closig of

5 Idividual Retiremet Accout (IRA) 5 your accout may subject you to fees ad charges imposed by a sposor, issuer, depository or other perso or etity associated with oe or more of the assets i which you are ivested, ad ay sales charges you may have paid i coectio with your purchases will ot be refuded. You Assume All Resposibility For These Losses. BNY Mello expressly disclaims ay resposibility or liability for losses you icur as a result of your failure to furish idetificatio materials we request, icludig ivestmet losses ad ay other loss or damage (icludig but ot limited to lost opportuities ad adverse tax cosequeces). If you proceed with the accout opeig process, you accept all risks of loss resultig from ay failure of yours to furish the idetificatio materials we request or from a subsequet iability to adequately verify your idetity i accordace with Federal law or regulatio. State Uclaimed Property Law Disclosure The assets i your custodial accout are subject to state uclaimed property laws which provide that if o activity occurs i your accout withi the time period specified by the particular state law, your assets must be trasferred to the appropriate state. We are required by law to advise you that your assets may be trasferred to a appropriate state i compliace with these state laws. Revocatio of Your SIMPLE IRA You have the right to revoke your SIMPLE IRA ad receive the etire amout of your iitial ivestmet by otifyig the Custodia i writig withi seve (7) days of establishig your SIMPLE IRA (accout ope date). If you revoke your SIMPLE IRA withi seve days, you are etitled to a retur of the etire amout cotributed, without adjustmet for such items as sales commissios, admiistrative expeses, or fluctuatios i market value. If you decide to revoke your SIMPLE IRA, otice should be delivered or mailed to the address listed i the applicatio istructios. This otice should be siged by you ad iclude the followig: 1. The date. 2. A statemet that you elect to revoke your SIMPLE IRA. 3. Your SIMPLE IRA accout umber. 4. The date your SIMPLE IRA was established. 5. Your sigature ad your ame prited or typed. Mailed otice will be deemed give o the date that it is postmarked, if it is properly addressed ad deposited either i the Uited States mail, first class postage prepaid, or with a IRS approved overight service. This meas that whe you mail your otice, it must be postmarked o or before the seveth day after your SIMPLE IRA was opeed. A revoked IRA will be reported to the IRS ad the participat o IRS Forms 1099-R ad Your SIMPLE IRA Accout You have opeed a SIMPLE IRA, which is a IRA for the exclusive beefit of you ad your beeficiaries, created by a writte istrumet (the Custodial Accout Agreemet). The followig requiremets apply to your SIMPLE IRA: 1. Cotributios, trasfers ad rollovers may be made oly i cash by check, draft, or other form acceptable to the Custodia. 2. The Custodia must be a bak, trust compay, savigs ad loa associatio, credit uio or a perso who is approved to act i such a capacity by the Secretary of the Treasury.

6 6 Logleaf Parters Fuds 3. No part may be ivested i life isurace cotracts. 4. Your iterest must be oforfeitable. 5. The assets of the custodial accout may ot be mixed with other property except i a commo ivestmet fud. 6. You must begi receivig distributios from your accout o later tha April 1 of the year followig the year i which you attai age 70½; ad distributios must be completed over a period that is ot loger tha the joit life expectacy of you ad your beeficiary. Cotributios For 2018, the elective deferral cotributio limit is $12,500 or 100% of your salary, whichever is less. I the case of a eligible employee who will be age 50 or older before the ed of the caledar year, the above limitatio is $15,500 for For tax years after 2018, the above limits may be subject to IRS cost-of-livig adjustmets, if ay. Please read the SIMPLE Idividual Retiremet Accout (IRA) Disclosure Statemet carefully or cosult IRS Publicatio 560 or a professioal tax advisor for more iformatio about eligibility requiremets ad cotributio restrictios. Tax Treatmet of Cotributios Salary reductio cotributios to a SIMPLE IRA are excludable from federal icome tax ad are ot subject to federal icome tax withholdig util distributed to you. Salary reductio cotributios to a SIMPLE IRA are subject to tax uder the Federal Isurace Cotributios Act ( FICA ), the Federal Uemploymet Tax Act ( FUTA ), ad the Railroad Retiremet Tax Act ( RRTA ), ad should be reported accordigly by your employer o Form W-2, Wage ad Tax Statemet. Your employer s matchig ad o-elective cotributios to your SIMPLE IRA are ot subject to FICA, FUTA, or RRTA taxes, ad are ot required to be reported o Form W-2. Check with your professioal tax advisor or the IRS website www. irs.gov for more iformatio. Descriptio of Available Optios for Your Cotributios The assets i your custodial accout will be ivested i accordace with istructios commuicated by you (or followig your death, by your beeficiary) or by your (or followig your death, your beeficiary s) authorized aget. Accout cotributios may be ivested i shares of oe or more mutual fuds made available to you i coectio with this SIMPLE IRA accout (the Mutual Fuds ), or i other ivestmets that are eligible for ivestmet uder sectio 408(a) of the Iteral Reveue Code ad that are acceptable to the Custodia as ivestmets uder the SIMPLE Idividual Retiremet Accout (IRA) Applicatio ad Adoptio Agreemet. Mutual Fud Optio: A ivestmet i oe or more Mutual Fuds ivolves ivestmet risks, icludig possible loss of pricipal. I additio, growth i the value of your Mutual Fuds is either guarateed or protected due to the characteristics of a mutual fud ivestmet. Detailed iformatio about the shares of each Mutual Fud available to you for ivestmet of your SIMPLE IRA cotributios must be furished to you i the form of a prospectus. The method for computig ad allocatig aual earigs is set forth i the prospectus. (See the sectio of each prospectus etitled Divideds. ) The prospectus also sets forth the costs ad expeses you icur by beig ivested i a particular Mutual Fud; such costs ad expeses reduce ay yield you might obtai from the Mutual Fuds. (See the sectio of the prospectus etitled Expese Table ad the sectios referred to therei.) For further iformatio regardig expeses, earigs, ad distributios of a particular

7 Idividual Retiremet Accout (IRA) 7 Mutual Fud, see that Mutual Fud s fiacial statemets, prospectus ad/or statemet of additioal iformatio. I Article VIII, Sectio 23 of the SIMPLE IRA RETIREMENT CUSTODIAL ACCOUNT AGREEMENT ( Sectio 23 ), which costitutes a importat part of this SIMPLE IRA APPLICATION ad ADOPTION AGREEMENT, you authorize the Custodia to act i its discretio for your beefit i situatios where assets i your custodial accout are liquidated ad the Custodia has ot received istructios from you i a timely maer regardig the dispositio of such proceeds or where the oly istructios received from you caot reasoably or practicably be carried out. For example, a Mutual Fud may take actios which result i that Mutual Fud, or i your ivestmet i that Mutual Fud, beig ivolutarily liquidated. The Mutual Fud or the prospectus for that Mutual Fud may direct that the proceeds of the liquidatio be placed i a asset ot available to you uder this SIMPLE IRA or provide solely that the cash or other property resultig from the liquidatio be distributed directly to shareholders. If the Custodia does ot receive timely istructios from you that it ca reasoably ad practicably carry out (for example, i-kid property distributed by the Mutual Fud may ot be a permissible asset for a SIMPLE IRA), the i Sectio 23 you authorize the Custodia to exercise its discretio i actig o your behalf, icludig takig such actios as placig the proceeds i a moey market mutual fud or a FDIC-isured bak accout or moey market accout, distributig the proceeds to you or holdig the proceeds uivested. Other examples may exist ivolvig differet liquidatio circumstaces ad differet restrictios or limitatios regardig the dispositio of the proceeds. The Custodia expressly disclaims ay liability for ay actio take or omitted uder the authority of Sectio 23, uless the Iteral Reveue Code or regulatios implemetig the Iteral Reveue Code require otherwise. Excess Deferrals Importat: Please cosult with your employer to discuss the appropriate steps to correct excess cotributios. Amouts deferred to your SIMPLE IRA i excess of the allowable limit may be subject to a o-deductible excise tax of 6% for each year util the excess is removed. The 6% excise tax will ot apply if the excess cotributio ad earigs allocable to it are distributed by April 15th of the year followig the aual deferral. Amouts distributed after April 15 th may icur additioal adverse tax cosequeces. You should cosult a professioal tax advisor if distributig a excess after April 15th. Earigs will be removed with the excess cotributio pursuat to Iteral Reveue Code Sectio 408(d)(4) ad IRS Publicatio 590. For the purpose of the excess cotributio, we will calculate the et icome attributable ( NIA ) to the cotributio usig the method provided for i the IRS Fial Regulatios for Earigs Calculatio for Retured or Recharacterized Cotributios. This method calculates the NIA based o the actual earigs ad losses of the SIMPLE IRA durig the time it held the excess cotributio. Please ote that a egative NIA is permitted ad, if applicable, will be deducted from the amout of the excess cotributio. A IRS Form 1099-R will be issued i the year the distributio takes place. You must file IRS Form 5329 to report excise tax. Cosult a professioal tax advisor, IRS Publicatios 560 ad 590 or the IRS website for more iformatio pertaiig to excess cotributios.

8 8 Logleaf Parters Fuds Restrictio o Idirect (60-Day) Rollovers A IRA participat is allowed oly oe rollover from oe IRA to aother (or the same IRA) across all IRAs (Traditioal, Rollover, Roth, SEP, SARSEP ad SIMPLE) i aggregate that a taxpayer ows i ay 12-moth or 365-day period. As a alterative, a participat ca make a ulimited umber of trustee-to-trustee trasfers where the proceeds are delivered directly to the receivig fiacial istitutio, successor custodia or trustee. You must cotact the receivig istitutio to iitiate a trustee-to-trustee trasfer. For more iformatio please visit the Iteral Reveue Service s web site usig the search term IRA Oe-Rollover-Per-Year Rule. Trasfers ad Rollovers ito Your SIMPLE IRA SIMPLE IRAs are ow permitted to accept rollover amouts from other IRAs (excludig Roth IRAs), qualified retiremet plas, 403(b) plas ad govermetal 457(b) plas, provided the rollover occurs two years after the SIMPLE IRA is established. Previously, oly SIMPLE IRA assets could be rolled over ito a SIMPLE IRA. Trasfers ad Rollovers Betwee SIMPLE IRAS I geeral, you may trasfer the assets of oe SIMPLE IRA to aother SIMPLE IRA without tax cosequeces if you 1) trasfer the assets by way of a direct trustee-to-trustee trasfer, or 2) rollover a distributio. A otaxable rollover occurs whe you deposit moey received ito a SIMPLE IRA withi 60 caledar days. The IRS strictly eforces the 60-day time limit. If you rollover oly a portio of a distributio, the portio that is ot rolled over will be subject to taxatio ad applicable pealties, if ay. [See Importat Chages to the Rules Goverig Idirect (60-day) Rollovers above.] Late Rollover Cotributios The Iteral Reveue Service (IRS) will permit you to deposit a late rollover cotributio (exceedig the 60-day time limit), if you meet certai qualificatios. All late rollover cotributio deposits must be accompaied by a late rollover self-certificatio form. It is importat to kow that self-certificatio does ot costitute a automatic waiver of the 60-day time limit. The IRS may, durig the course of a examiatio, determie that your cotributio does ot meet the requiremets for a waiver. If it is determied that you do ot meet the requiremets, you could be subject to additioal icome, icome taxes ad pealties. The IRA custodia is required to report all late rollover cotributio deposits o IRS Form For more iformatio ad a list of qualifyig evets, please visit the Iteral Reveue Service s web site usig the search term Reveue Procedure Trasfers ad Rollovers ito Other Types of Retiremet Accouts Required Two Year Holdig Period Oce you have participated i your employer s SIMPLE IRA Pla for two years, you may trasfer or rollover the assets i your SIMPLE IRA to aother SIMPLE IRA, or to a Traditioal or SEP IRA or a employer pla without tax cosequeces by meas of a direct trustee-to-trustee trasfer or a 60-day rollover. Ay trasfer or rollover out of a SIMPLE IRA ito aother type of IRA or employer pla prior to satisfyig the required two year holdig period (two years from the date o which you first participated i a SIMPLE IRA maitaied by your employer) is treated as a distributio from your SIMPLE IRA, which is subject to taxatio ad may be subject to early distributio pealties (see Taxatio of SIMPLE IRA Distributios below).

9 Idividual Retiremet Accout (IRA) 9 Taxatio of SIMPLE IRA Distributios The icome of your SIMPLE IRA is ot taxed util the moey is distributed to you. Distributios are taxable as ordiary icome whe received. A distributio received before you attai age 59½ is cosidered a premature distributio ad is subject to a pealty tax equal to 10% of the distributio uless a exceptio applies (see Early Distributios from a SIMPLE IRA below). If the premature distributio is made prior to satisfyig the required two year holdig period (two years from the date o which you first participated i a SIMPLE IRA maitaied by your employer) ad o exceptio applies, the the pealty tax is icreased to 25%. Early Distributios from a SIMPLE IRA Your receipt or use of ay portio of your SIMPLE IRA before you attai age 59½ is cosidered a early or premature distributio. The distributio is subject to a pealty tax equal to 10% of the distributio (the pealty tax is icreased to 25% if the distributio occurs prior to satisfyig the required two year holdig period) uless oe of the followig exceptios applies to the distributio: 1. due to your death, or 2. made because you are disabled, or 3. used specifically for deductible medical expeses which exceed 7.5% of your adjusted gross icome, or 4. used for health isurace cost due to your uemploymet, or 5. used for higher educatio expeses defied i sectio 529(e)(3) of the Iteral Reveue Code, or 6. used toward the expeses of a first time home purchase up to a lifetime limit of $10,000, or 7. part of a scheduled series of substatially equal periodic paymets over your life, or over the joit life expectacy of you ad a beeficiary. If you request a distributio i the form of a series of substatially equal periodic paymets, ad you modify the paymets before 5 years have elapsed ad before attaiig age 59½, the pealty tax will apply retroactively to the year paymets bega through the year of such modificatio, or 8. required because of a IRS levy, or 9. the distributio is a Qualified Reservist Distributio. The pealty tax is i additio to ay federal icome tax that is owed at the time of distributio. For more iformatio o the pealty tax ad the exceptios listed above, cosult IRS Publicatios 560 ad 590. If you are subject to a federal pealty tax due to a premature distributio, you must file IRS Form Required Distributios from a SIMPLE IRA You are required to begi receivig miimum distributios from your SIMPLE IRA by your required begiig date (April 1 of the year followig the year you attai age 70½). The year you attai age 70½ is referred to as your first distributio caledar year. Your required miimum distributio for each year, begiig with the caledar year you attai age 70½, is geerally based upo the value of your accout at the ed of the prior year divided by the factor for your age (derived from the IRS Uiform Lifetime Distributio Period Table). This table assumes you have a desigated spouse beeficiary exactly 10 years youger tha you. However, if your spouse is your sole beeficiary ad is more tha 10 years youger tha you, your required miimum distributio for each year is based upo the joit life expectacies

10 10 Logleaf Parters Fuds of you ad your spouse. The accout balace that is used to determie each year s required miimum distributio amout is the prior year ed fair market value (value as of December 31 st ), adjusted for outstadig rollovers, trasfers ad recharacterizatios (that relate to a coversio or failed coversio made i the prior year). You are resposible for otifyig the Custodia of ay outstadig amouts. If the amout distributed durig a taxable year is less tha the miimum amout required to be distributed, you will be subject to a pealty tax equal to 50% of the differece betwee the amout distributed ad the amout required to be distributed. You are resposible for moitorig this schedule from year to year to make sure that you are withdrawig the required miimum amout. If you are subject to a federal pealty tax due to a missed required miimum distributio, you must file IRS Form However, o paymet will be made from this SIMPLE IRA util you provide the Custodia with a proper distributio request acceptable by the Custodia. Upo receipt of such distributio request, you may switch to a joit life expectacy i determiig the required miimum distributio if your spouse was your sole beeficiary, as of the Jauary 1 st of the caledar year that cotais your required begiig date, ad such spouse is more tha 10 years youger tha you. The required miimum distributio for the secod distributio caledar year ad for each subsequet distributio caledar year must be made by December 31st of each such year. A SIMPLE IRA required miimum distributio electio form is available from the Custodia. Beeficiary Desigatios Per Stirpes Beeficiary Desigatios: The Custodia shall accept as complete ad accurate all writte istructios provided i good order by the estate/executor with regard to the idetificatio of the beeficiaries ad the allocatios thereto. I the evet of your death, the balace of your custodial accout shall be paid to the primary beeficiaries who survive you i equal shares (or i the specified shares, if idicated). If oe of the primary beeficiaries survive you, the balace of your accout shall be paid to the cotiget beeficiaries who survive you i equal shares (or i the specified shares, if idicated). If you ame multiple primary beeficiaries ad a beeficiary does ot survive you, such iterest is termiated ad that percetage will be divided proportioately amog the remaiig primary beeficiaries. Similarly, uless you have specified otherwise, if o primary beeficiary survives you ad you have amed multiple cotiget beeficiaries ad a beeficiary does ot survive you, such iterest is termiated ad that percetage will be divided proportioately amog the remaiig cotiget beeficiaries. You may chage your beeficiaries at ay time by givig writte otice to the Custodia. If you do ot desigate a beeficiary, or if all desigated beeficiaries predecease you, your survivig spouse will become the beeficiary of your IRA. If you do ot have a survivig spouse at the time of your death, your estate will become the beeficiary of your IRA. If a trust is desigated as a beeficiary, you must provide both the date of the trust ad the ame(s) of the trustee(s). Spousal Beeficiary Desigatio i the Evet of Divorce I the evet of a divorce or legal separatio, the Custodia will ot automatically remove the former spouse as the desigated beeficiary without court appoitmet. If your life circumstaces have chaged, we suggest you submit a IRA Beeficiary Desigatio Form. The

11 Idividual Retiremet Accout (IRA) 11 curret beeficiary desigatio o file with the Custodia will be deemed valid ad i full force util such date as the Custodia receives a siged IRA Beeficiary Desigatio Form, i good order. Spousal Provisios for Same Sex Couples I accordace with federal regulatios, where a idividual is lawfully married to aother idividual, regardless of sex, both idividuals shall be treated as a spouse for federal tax purposes. Idividuals i a civil uio or domestic partership will ot be treated as spouses for federal tax purposes. SIMPLE IRA Distributios Due to Death If, prior to your death, you have ot started to take your required distributios ad you properly desigated a beeficiary(ies), the etire value of your SIMPLE IRA must be distributed to your beeficiaries withi five years after your death, uless the desigated beeficiary elects i writig, o later tha September 30 th of the year followig the year i which you die, to take distributios over their life expectacy. These distributios must commece o later tha December 31 st of the caledar year followig the caledar year of your death. However, if your spouse is your sole beeficiary, these distributios are ot required to commece util the December 31 st of the caledar year you would have attaied age 70½, if that date is later tha the required commecemet date i the previous setece. If you die before your required begiig date ad you do ot have a desigated beeficiary, the balace i your SIMPLE IRA must be distributed o later tha the December 31 st of the caledar year that cotais the fifth aiversary of your death. If you die o or after your required begiig date ad you have a desigated beeficiary, the balace i your SIMPLE IRA will be distributed to your beeficiary over the beeficiary s sigle life expectacy. These distributios must commece o later tha December 31 st of the caledar year followig the caledar year of your death. If you die o or after your required begiig date ad you do ot have a desigated beeficiary, the balace i your SIMPLE IRA must be distributed over a period that does ot exceed your remaiig sigle life expectacy determied i the year of your death. However, the required miimum distributio for the caledar year that cotais the date of your death is still required to be distributed. Such amout is determied as if you were still alive throughout that year. If your spouse is your sole beeficiary, your spouse may elect to treat your SIMPLE IRA as their ow SIMPLE IRA, whether you die before or after your required begiig date. If you die after your required begiig date ad your spouse elects to treat your SIMPLE IRA as his or her ow SIMPLE IRA, ay required miimum that has ot bee distributed for the year of your death must still be distributed to your survivig spouse ad the the remaiig balace ca be treated as your spouse s ow SIMPLE IRA. After your death, your desigated beeficiary may ame a subsequet beeficiary. Ay subsequet beeficiaries must take distributios at least as frequetly as the origial desigated beeficiary. If you do ot properly desigate a beeficiary, or all desigated beeficiaries have predeceased you, your spouse shall become the beeficiary or, if o survivig spouse or umarried, the distributio will be made to your estate. Cosult IRS Publicatio 590 for a complete discussio of rules goverig distributios due to death. Covertig to a Roth IRA You may also covert all or a portio of your SIMPLE IRA (after satisfyig the required two year holdig period) to a Roth IRA. You may ot

12 12 Logleaf Parters Fuds covert ay portio of a required miimum distributio (RMD). A coversio is a type of distributio ad is ot tax-free. Distributios are taxable as ordiary icome whe received, except the amout of ay distributio represetig the retur of o-deducted cotributios is ot taxed. The 10% pealty tax o early distributios does ot apply to coversio amouts uless a amout attributable to a coversio is distributed from the Roth IRA prior to five years from the date of the coversio. Your SIMPLE IRA may be coverted to a Roth IRA by meas of a ihouse direct trasfer (withi the same fiacial istitutio) or as a direct trasfer betwee two differet fiacial istitutios. A coversio is reported as a distributio from your SIMPLE IRA (IRS Form 1099-R) ad a coversio cotributio to your Roth IRA (IRS Form 5498). The rules regardig coversios to Roth IRAs are complex ad you should cosult a professioal tax advisor prior to a coversio. Recharacterizatio of Roth IRA Coversio is Now Prohibited (Correctio Process) Effective Jauary 1, 2018, a Roth IRA coversio caot be recharacterized back to a traditioal IRA, SEP or SIMPLE IRA. I additio, amouts cotributed to a employer sposored qualified pla that were coverted to a Roth IRA caot be recharacterized back to the employer pla. A Roth IRA coversio is ow deemed a irrevocable electio ad caot be reversed or corrected. Prior to Jauary 1, 2018, you could correct a Roth IRA coversio made i error by recharacterizig the coversio back to a traditioal IRA, SEP or SIMPLE IRA. The recharacterizatio had to take place prior to the due date, icludig extesios, for filig your federal icome tax retur for the tax year i which the coversio was origially made. Accordig to the IRS, you ca recharacterize a Roth IRA coversio that took place i tax year 2017, provided that the recharacterizatio is completed by October 15, For more iformatio, please visit the IRS web site usig the search term IRA FAQs Recharacterizatio of Roth Rollovers ad Coversios. Fees ad Charges There is o aual custodial maiteace fee for your SIMPLE IRA accout. Saver s Tax Credit: The Saver s Tax Credit rewards low to moderate icome taxpayers who cotribute toward their retiremet savigs with a o-refudable dollar for dollar tax credit that could reduce their federal icome tax liability. Eligibility to participate i the program is based o your filig status ad adjusted gross icome. For more iformatio about the Saver s Credit, check the IRS website uder the term Retiremet Savigs Cotributios Credit or Saver s Credit. Qualified Reservist Distributios Early distributios paid to certai military reservists called to active duty after September 11, 2001 ( Qualified Reservist Distributios ) are eligible to be repaid to a IRA withi a two-year period after the ed of active duty. This provisio applies to distributios made after September 11, Repaymets caot exceed the amout of your Qualified Reservist Distributios. Repaymet caot be made after the date that is two years after your active duty period eds. The repaymets are ot treated as rollovers.

13 Idividual Retiremet Accout (IRA) 13 Prohibited Trasactios If you or your beeficiary egages i ay prohibited trasactio as described i Iteral Reveue Code Sectio 4975(c) (such as ay sale, exchage, borrowig, or leasig of ay property betwee you ad your SIMPLE IRA; or ay other iterferece with the idepedet status of the accout), the accout will lose its exemptio from tax ad be treated as havig bee distributed to you i the tax year i which you or your beeficiary egaged i the prohibited trasactio. The distributio may also be subject to additioal pealties icludig a possible pealty tax if you have ot attaied age 59½. See IRS Publicatio 590 for further istructios o calculatig taxable gai, reportig amouts i icome ad prohibited trasactio pealty taxes. I additio, if you or your beeficiary use (pledge) all or ay part of your SIMPLE IRA as security for a loa, the the portio so pledged will be treated as if distributed to you, ad will be taxable to you. Your distributio may also be subject to a pealty tax if you have ot attaied age 59½ durig the year which you make such a pledge. Estate Tax Amouts payable to your spouse, as your amed beeficiary, may qualify for a marital tax deductio for federal estate tax purposes. Icome Tax Withholdig The Custodia is required to withhold federal icome tax from ay distributio from your SIMPLE IRA to you at the rate of 10% uless you choose ot to have tax withheld. You may elect out of withholdig by advisig the Custodia i writig, prior to the distributio, that you do ot wat tax withheld from the distributio. This electio may be made o ay distributio request form provided by the Custodia. If you do ot elect out of tax withholdig, you may direct the Custodia to withhold a additioal amout of tax i excess of 10%. State icome tax withholdig may also apply to distributios from your SIMPLE IRA whe federal icome tax is withheld. Please cotact your tax advisor or state tax authority for iformatio about your state s icome tax withholdig requiremets. Additioal Iformatio Distributios uder $10 will ot be reported o IRS Form 1099-R (as allowed uder IRS regulatios). However, you must still report these distributios to the IRS o your Form 1040 (as well as other forms that may be required to properly file your tax retur). For more detailed iformatio, you may obtai IRS Publicatio 560 Retiremet Plas for Small Busiess ad IRS Publicatio 590 Idividual Retiremet Arragemets (IRAs) from ay district office of the Iteral Reveue Service or by callig TAX-FORM. Ay SIMPLE IRA trasactio may have tax cosequeces; cosult your professioal tax advisor to obtai iformatio about the tax cosequeces i coectio with your particular circumstaces. IRS Approved Form Your SIMPLE IRA is the Iteral Reveue Service s model custodial accout cotaied i IRS Form 5305-SA. Certai additios have bee made i Article VIII of the form. By followig this form, your SIMPLE IRA meets the requiremets of the Iteral Reveue Code. However, the IRS has ot edorsed the merits of the ivestmets allowed uder the SIMPLE IRA. This form caot be used with Coverdell ESAs, Roth, SEP, or Traditioal IRAs.

14 14 Logleaf Parters Fuds SIMPLE Idividual Retiremet Custodial Accout Agreemet (Form 5305-SA April 2017) The participat is establishig a Savigs Icetive Match Pla for Employees of Small Employers Idividual Retiremet Accout ( SIMPLE IRA ) uder sectios 408(a) ad 408(p) of the Iteral Reveue Code to provide for his or her retiremet ad for the support of his or her beeficiaries after death. The Custodia has give the participat the disclosure statemet required uder Regulatios sectio The participat ad the Custodia make the followig agreemet: Article I The Custodia will accept cash cotributios made o behalf of the participat by the participat s employer uder the terms of a SIMPLE IRA pla described i sectio 408(p). I additio, the Custodia will accept trasfers or rollovers from other SIMPLE IRAs of the participat ad, after the 2-year period of participatio defied i sectio 72(t)(6), trasfers or rollovers from ay eligible retiremet pla (as defied i sectio 402(c)(8)(B)) other tha a Roth IRA or a desigated Roth accout. No other cotributios will be accepted by the Custodia. Article II The participat s iterest i the balace i the custodial accout is oforfeitable. Article III 1. No part of the custodial accout fuds may be ivested i life isurace cotracts, or may the assets of the custodial accout be commigled with other property except i a commo trust fud or commo ivestmet fud (withi the meaig of sectio 408(a)(5)). 2. No part of the custodial accout fuds may be ivested i collectibles (withi the meaig of sectio 408(m)) except as otherwise permitted by sectio 408(m)(3), which provides a exceptio for certai gold, silver, ad platium cois, cois issued uder the laws of ay state, ad certai bullio. Article IV 1. Notwithstadig ay provisio of this agreemet to the cotrary, the distributio of the participat s iterest i the custodial accout shall be made i accordace with the followig requiremets ad shall otherwise comply with sectio 408(a)(6) ad the regulatios thereuder, the provisios of which are icorporated by referece. 2. The participat s etire iterest i the custodial accout must be, or begi to be, distributed ot later tha the participat s required begiig date, April 1 followig the caledar year i which the participat reaches age 70½. By that date, the participat may elect, i a maer acceptable to the Custodia, to have the balace i the custodial accout distributed i: (a) A sigle sum, or (b) Paymets over a period ot loger tha the life of the participat or the joit lives of the participat ad his or her desigated beeficiary. 3. If the participat dies before his or her etire iterest is distributed to him or her, the remaiig iterest will be distributed as follows: (a) If the participat dies o or after the required begiig date ad: (i) the desigated beeficiary is the participat s survivig spouse, the remaiig iterest will be distributed over the survivig spouse s life expectacy as determied each year util such spouse s death, or over the period i paragraph (a)(iii) below if loger. Ay iterest remaiig after

15 Idividual Retiremet Accout (IRA) 15 the spouse s death will be distributed over such spouse s remaiig life expectacy as determied i the year of the spouse s death ad reduced by 1 for each subsequet year, or, if distributios are beig made over the period i paragraph (a)(iii) below, over such period. (ii) the desigated beeficiary is ot the participat s survivig spouse, the remaiig iterest will be distributed over the beeficiary s remaiig life expectacy as determied i the year followig the death of the participat ad reduced by 1 for each subsequet year, or over the period i paragraph (a) (iii) below if loger. (iii) there is o desigated beeficiary; the remaiig iterest will be distributed over the remaiig life expectacy of the participat as determied i the year of the participat s death ad reduced by 1 for each subsequet year. (b) If the participat dies before the required begiig date, the remaiig iterest will be distributed i accordace with (i) below or, if elected or there is o desigated beeficiary, i accordace with (ii) below: (i) The remaiig iterest will be distributed i accordace with paragraphs (a)(i) ad (a)(ii) above (but ot over the period i paragraph (a) (iii), eve if loger), startig by the ed of the caledar year followig the year of the participat s death. If, however, the desigated beeficiary is the participat s survivig spouse, the this distributio is ot required to begi before the ed of the caledar year i which the participat would have reached age 70½. But, i such case, if the participat s survivig spouse dies before distributios are required to begi, the the remaiig iterest will be distributed i accordace with (a) (ii) above (but ot over the period i paragraph (a)(iii), eve if loger), over such spouse s desigated beeficiary s life expectacy, or i accordace with (ii) below if there is o such desigated beeficiary. (ii) The remaiig iterest will be distributed by the ed of the caledar year cotaiig the fifth aiversary of the participat s death. 4. If the participat dies before his or her etire iterest has bee distributed ad if the desigated beeficiary is ot the participat s survivig spouse, o additioal cotributios may be accepted i the accout. 5. The miimum amout that must be distributed each year, begiig with the year cotaiig the participat s required begiig date, is kow as the required miimum distributio ad is determied as follows: (a) The required miimum distributio uder paragraph 2(b) for ay year, begiig with the year the participat reaches age 70½, is the participat s accout value at the close of busiess o December 31 of the precedig year divided by the distributio period i the uiform lifetime table i Regulatios sectio 1.401(a)(9)-9. However, if the participat s desigated beeficiary is his or her survivig spouse, the required miimum distributio for a year shall ot be more tha the participat s accout value at the close of busiess o December 31 of the precedig year divided by the umber i the joit ad last survivor table

16 16 Logleaf Parters Fuds i Regulatios sectio 1.401(a)(9)-9. The required miimum distributio for a year uder this paragraph (a) is determied usig the participat s (or, if applicable, the participat ad spouse s) attaied age (or ages) i the year. (b) The required miimum distributio uder paragraphs 3(a) ad 3(b)(i) for a year, begiig with the year followig the year of the participat s death (or the year the participat would have reached age 70½, if applicable uder paragraph 3(b)(i)) is the accout value at the close of busiess o December 31 of the precedig year divided by the life expectacy (i the sigle life table i Regulatios sectio 1.401(a)(9)-9) of the idividual specified i such paragraphs 3(a) ad 3(b)(i). (c) The required miimum distributio for the year the participat reaches age 70½ ca be made as late as April 1 of the followig year. The required miimum distributio for ay other year must be made by the ed of such year. 6. The ower of two or more IRAs (other tha Roth IRAs), may satisfy the miimum distributio requiremet described above, by takig from oe IRA the amout required to satisfy the requiremet for aother i accordace with the regulatios uder 408(a)(6). Article V 1. The participat agrees to provide the Custodia with all iformatio ecessary to prepare ay reports required by sectios 408(i) ad 408(I)(2) ad Regulatios sectios ad The Custodia agrees to submit to the Iteral Reveue Service (IRS) ad participat the reports prescribed by the IRS. 3. The Custodia also agrees to provide the participat s employer the summary descriptio described i sectio 408(l)(2) uless this SIMPLE IRA is a trasfer SIMPLE IRA. Article VI Notwithstadig ay other articles, which may be added or icorporated, the provisios of Articles I through III ad this setece will be cotrollig. Ay additioal articles that are ot cosistet with sectios 408(a) ad 408(p) ad the related regulatios will be ivalid. Article VII This agreemet will be ameded from time to time to comply with the provisios of the Code ad related regulatios. Other amedmets may be made with the coset of the persos whose sigature appears o the SIMPLE IRA Accout Applicatio ad Adoptio Agreemet. Article VIII 1. All fuds i the custodial accout (icludig earigs) shall be ivested i assets permissible uder the Code which have bee desigated by the Custodia as eligible for ivestmet ( Eligible Assets ) as directed by the participat i compliace with this Agreemet. Eligible Assets will be purchased at the prices determied i accordace with the market applicable to particular Eligible Assets. 2. The Custodia may hold all Eligible Assets i accouts registered to the Custodia or its omiee. Participat shall be the beeficial ower of all Eligible Assets held i the custodial accout otwithstadig such registratio. 3. The participat shall, from time to time, direct the Custodia to ivest fuds received by the Custodia uder this Agreemet. Ay fuds received by the Custodia uder this Agreemet for which the Custodia does ot receive ivestmet directios may, at the sole discretio

17 Idividual Retiremet Accout (IRA) 17 of the Custodia, be retured to the participat or held uivested util directio is received from the participat, i either case without such fuds beig deemed cotributed to the custodial accout. The participat shall be the beeficial ower of all Eligible Assets held i the custodial accout, ad the Custodia shall ot vote ay such shares except upo writte directio of the participat. 4. The Custodia agrees to forward, or to cause to be forwarded, to participat (i) the the-curret prospectus, if ay, applicable to each Eligible Asset held i the custodial accout, ad (ii) ay otices, proxies ad proxy solicitig materials received by it with respect to Eligible Assets held i the custodial accout. 5. The participat shall have the right by writte otice to the Custodia (i) to desigate oe or more beeficiaries to receive ay beefit to which the participat may be etitled i the evet of the participat s death prior to the complete distributio of such beefit, ad (ii) to desigate oe or more beeficiaries i replacemet of ay previously desigated beeficiaries. Ay such otice will be deemed to be i effect whe received i good order by the Custodia. If o such desigatio is i effect at the time of the participat s death, or if all desigated beeficiaries have predeceased the participat, the participat s survivig spouse shall become the participat s beeficiary, or, if the participat does ot have a survivig spouse at the time of death, the distributio will be made to the participat s estate. 6. (a) The Custodia shall have the right to receive rollover cotributios as described i Article I of this Agreemet. The Custodia reserves the right to refuse to accept ay property or cotributio which is ot i the form of cash. (b) The Custodia, upo writte directio of the participat ad after submissio to the Custodia of such documets as it may reasoably require, shall trasfer the assets held uder this Agreemet (reduced by (1) ay amouts referred to i paragraph 8 of this Article VIII ad (2) ay amouts required to be distributed durig the caledar year of trasfer) to a successor idividual retiremet accout, to a idividual retiremet auity for the Participat s beefit, or directly to the participat. Ay amouts received or trasferred by the Custodia uder this paragraph 6 shall be accompaied by such records ad other documets as the Custodia deems ecessary to establish the ature, value ad extet of the assets ad of the various iterests therei. 7. Without i ay way limitig the foregoig, the participat hereby irrevocably delegates to the Custodia the right ad power to amed at ay time ad from time to time the terms ad provisios of this Agreemet ad hereby cosets to such amedmets, provided they shall comply with all applicable provisios of the Code, the Treasury regulatios thereuder ad with ay other govermetal law, regulatio or rulig. Ay such amedmets shall be effective whe the otice of such amedmets is mailed to the address of the participat idicated by the Custodia s records. 8. Ay icome taxes or other taxes of ay kid whatsoever levied or assessed upo or i respect of the assets of the custodial accout or the icome arisig there from, ay trasfer taxes icurred, all other admiistrative expeses icurred, specifically icludig but ot limited to, admiistrative expeses icurred by the Custodia i the performace of its duties ad fees for legal services redered to the Custodia,