IRA Distribution Request Form - Franklin Templeton Investments

RIRA FDIST 04/16
Franklin Templeton
IRA Distribution Request Form
Use this form to request a distribution from a Traditional IRA, Roth IRA, SEP IRA or SIMPLE IRA for which Fiduciary Trust International of the South
(“FTIOS”) serves as custodian. Do not use this form for beneficiary distributions, corrections of excess c­ ontributions or recharacterizations. Go to
franklintempleton.com for additional resources and forms.
­­If com­­pleting by hand, please print clearly in CAPITAL LETTERS using blue or black ink.
1
ACCOUNT OWNER INFORMATION
Name
Mailing address
Social Security number
check here if new address1
Date of birth (mm/dd/yyyy)
City
Primary phone number
StateZIP
Alternate phone number
( ) ( )
2
IRA INFORMATION
SELECT ONLY ONE type of IRA below. Complete a separate distribution request form if distributing from different IRA plan types.
Traditional IRA or Rollover IRA SEP IRA Roth IRA or Roth Conversion IRA* SIMPLE IRA** SARSEP IRA
* ROTH IRA AND ROTH CONVERSION: If you have participated in the Roth plan for at least 5 years since your first contribution year, check here: ** SIMPLE IRA: If you have participated in the SIMPLE IRA plan for at least 2 years, check here: 3
TYPE OF DISTRIBUTION
REQUIRED: Select only one option below:
A
­­ ge 591⁄2 or Older: Includes Required Minimum Distributions (RMDs).
U
nder Age 591⁄2: A federal tax penalty of 10%, or as much as 25% if from a SIMPLE IRA, may apply. Special rules apply to Roth distributions and, if elected,
IRC 72(t)(2)(A)(iv). See IRA Distribution Guide for further information.
P
ermanent & Total Disability: Please complete the certification listed in Section A on page 4.
D
ivorce Transfer: The following court-issued divorce paperwork is also required: 1) Title page with name of plaintiff and respondent, 2) Section referencing the
Franklin Templeton retirement account(s) and the amount/percentage awarded, 3) Section stating divorce is final, and 4) Section with judge’s signature/stamp.
Instructions for the divorce transfer must be provided in Section 8. See Section D for additional information.
4
ONE-TIME DISTRIBUTION
Fund name or fund-account number
$ $ 5
$ Shares
2,3
OR
2,3
OR
2,3
OR
%
OR
%
OR
%
OR
SYSTEMATIC DISTRIBUTION OPTIONS
COMPLETE ONLY 5A OR 5B.
• Allow up to 3 business days from the withdrawal day for electronic transfers to a bank account or up to 10 calendar days for a check sent to an address. When
indicating a start date, please note that it may take up to 15 days for Franklin Templeton to establish your automatic withdrawal and your first distribution may be
sent by check while bank information is established on your account.
• If frequency and withdrawal date are not selected, we will default to monthly on the 20th.
• If the Withdrawal Date falls on a weekend or holiday, the transaction will be made on the following business day.
• January RMD may be delayed if the 1st or 5th is chosen.
­5A. PERIODIC DISTRIBUTIONS (Do not complete for Required Minimum Distributions and 72(t) Distributions).
Fund name or fund-account number
Shares
$ $ $ Start month (mm/yyyy)
FREQUENCY (select one)
monthly quarterly semiannually annually
3
3
3
OR
OR
OR
WITHDRAWAL DATE (select one)
1st 5th 10th 15th 20th 25th
OR (Systematic Distribution Options continued on next page.)
1. Signature Guarantee required for distributions to a new address.
2. Unless the annual maintenance fee has already been paid, it will be assessed if you are closing a fund-account, even if other fund-accounts remain open within the same account type.
3. If the amount requested is greater than the balance of the account at the time of the redemption, we will redeem 100% of the account.
Questions? Please call your financial advisor or Franklin Templeton Retirement Services at (800) 527-2020.
page 1 of 6
5
SYSTEMATIC DISTRIBUTION OPTIONS­ (cont’d.)
5B. REQUIRED MINIMUM DISTRIBUTIONS AND 72(t) DISTRIBUTIONS
Fund name or fund-account number
Provide distribution amount
only if you select “Distribution
of a Fixed Amount” below
Start month/year (mm/yyyy )
FREQUENCY (select one)
monthly quarterly semiannually annually
$
$
WITHDRAWAL DATE (select one)
1st 5th 10th 15th 20th 25th
Choose your life expectancy method or fixed amount to be distributed. Select only one option below.
If you do not indicate a method, Franklin Templeton will default to the life expectancy method based on your age.
Required Minimum Distribution if you are 70½ or older and would like Franklin Templeton to calculate and distribute your RMD each year by using the IRS
Uniform Lifetime Table, unless you qualify for the spousal exception and provide your spouse’s information here.
Name of spousal beneficiary (of record)
Social Security number
Date of birth (mm/dd/yyyy)
72(t) Distribution if you are younger than 59½ and would like Franklin Templeton to calculate your distributions each period based on your single life expectancy.
istribution of a Fixed Amount for each period. Please provide distribution amounts above. Note: if you specify an amount, you are responsible for accuracy of the
D
calculation and the amount you request to be distributed. Based on your age, you will be deemed to have elected RMD or 72(t). See IRA Distribution Guide.
6
DIVIDENDS AND CAPITAL GAINS
Please change my dividend and/or capital gains distribution and payment options as identified below.
Fund-account number(s)
Check only one option for each
Dividends:
Reinvest, Pay in cash,4 or Direct to my Franklin Templeton account number5
Capital gains:
Direct to my Franklin Templeton account number­­5
7
Reinvest, Pay in cash,4 or WITHHOLDING ELECTION
Please complete the withholding elections below. With the exception of Roth IRA, if no election is made, federal taxes will be withheld at a rate of 10% and, when
applicable, the minimum required state taxes will be withheld.
• You are responsible for paying any tax due on the taxable portion of your distribution, regardless of your withholding election.
• You may be subject to penalty taxes if federal and state taxes are due and either your estimated tax payments or the amount of tax you have withheld is
­insufficient under IRS rules or your state’s rules.
FEDERAL TAX WITHHOLDING
Please read the Withholding Election Notice on page 5, Section E.
1.
Withhold NO federal tax on my IRA distribution. 2.
Withhold federal taxes from my distribution at the rate of % (minimum 10%).
STATE TAX WITHHOLDING POLICY—This service is only available to residents of CA, VT, UT and VA. If you have questions regarding state withholding, please
consult with a tax advisor or your state’s taxing authority.
If you are a resident of:
State tax withholding policy:
CALIFORNIA or VERMONT
If federal tax is withheld, state tax is withheld unless you
specifically elect not to have state taxes withheld by checking this box:
NO state tax withholding on my distributions
UTAH or VIRGINIA
State tax is permitted whether or not federal tax is withheld. You may
elect to have state tax withheld from your distribution by checking this box:
YES withhold state tax on my distributions
8
PAYMENT, ROLLOVER AND DIVORCE TRANSFER OPTIONS
PAYMENT OPTIONS Choose one option below.
Deposit into an existing non-retirement Franklin Templeton account:
Fund–account number
NOTE: Deposit into a non-retirement Franklin Templeton account is
a taxable distribution.
Deposit into a new non-retirement Franklin Templeton account. Please attach a completed Franklin Templeton Account Application.
Send money to my bank account via electronic funds transfer. Bank information must be provided in Section 9.
Send check(s) to the address of record.
Send check(s) to the alternate payee/an alternate address. ( Check here if this is your new address. A signature guarantee is required to send distribution
checks to an alternate address. See Section 10, Certification & Authorization.)
Payee
Address
City
StateZIP
(Payment, Rollover and Divorce Transfer Options continued on next page.)
4. IMPORTANT: If you choose to have dividends or capital gains paid in cash, we will send the proceeds electronically to the bank account you provide in Section 9 or to a pre-established bank account if one
exists. If you do not provide bank information, already have a pre-established bank account on file, or choose to direct payments to your existing Franklin Templeton account, we will send the proceeds to
you by check, to your current mailing address. Please allow up to 3 business days if the proceeds are being sent electronically or up to 10 calendar days to receive a check. For electronic transfers, your first
distribution may be sent by check to your address of record while bank information is established on your account.
5. You may only reinvest distributions in the same class of shares, except that Class C distributions may be reinvested in Class A shares of any Franklin money fund, and Advisor Class and Class Z d­ istributions
may be reinvested in Class A shares. You may reinvest Class Z distributions in Advisor Class shares of another fund if you qualify to buy that fund’s Advisor Class shares.
page 2 of 6
Questions? Please call your financial advisor or Franklin Templeton Retirement Services at (800) 527-2020.
8
PAYMENT, ROLLOVER AND DIVORCE TRANSFER OPTIONS (cont’d.)
ROLLOVER OPTIONS
NOTE: A letter of acceptance or signature guarantee is required for direct transfers or
rollovers to a new custodian or trustee. See Section 10, Certification & Authorization.
Direct rollover to a non-Franklin Templeton IRA or Qualified Plan:
To an IRA
To a Qualified Plan
Custodian/Trustee
Account number
Phone number
( )
Address
City
State
DIVORCE TRANSFER OPTIONS (SEE SECTION 3 AND SECTION D FOR ADDITIONAL INFORMATION)
Choose one option below to request a transfer due to divorce.
ZIP
NOTE: A signature guarantee in Section 10 is required for divorce transfers
over $100,000.
Transfer to former spouse’s existing Franklin Templeton IRA6 (If you are also electing to distribute the funds, check here
Fund-account number
and complete Section 7).
Transfer to a new Franklin Templeton IRA for former spouse. Attach a completed Franklin Templeton IRA Application.6
Transfer to an IRA for former spouse at another institution. Former spouse must provide a completed IRA Transfer form from the successor custodian and a letter
of acceptance from the custodian.
9
BANK INFORMATION/ELECTRONIC SERVICES AUTHORIZATION
If you would like your distributions to be sent to a bank account, please select one of the options below.
1. Use Existing Bank Account. Check here to send the proceeds to the bank account currently linked to your Franklin Templeton account.
2. Add a New Bank Account: Check here to send the proceeds to a new bank account listed below and to establish/change electronic transfers to or from the
new bank account. Only one bank account can be linked to your Franklin Templeton account(s) for purchases and redemptions. NOTE: If you previously declined
the Telephone Redemption Privilege but would like Telephone Purchases, you understand and agree that Telephone Purchases and Telephone Redemptions via
electronic funds transfers between your Franklin Templeton account(s) and your linked bank account are operationally connected. If you select this option, you
authorize all electronic services on your account(s) and these bank instructions will be established for purchases, automatic investment plan transfers, redemptions
and any pre-established systematic withdrawals or dividend/capital gain payments.
All bank account owner(s) not listed on the Franklin Templeton fund account(s) must sign in this section and you, as the Franklin Templeton fund account owner,
must sign in Section 10. Additionally, if the Franklin Templeton fund account(s) and the bank account identified below DO NOT include at least one common
owner, all bank account owners must have their signatures guaranteed below and you must also have your signature guaranteed in Section 10.
Check here if the new bank account provided below should NOT be retained for additional use as described in option 2 above and should only be used for this
one-time distribution.
If you’ve selected option 2, please provide your bank information below.
Checking
Savings
Bank name
9-­digit ABA bank routing number
Bank account number
IMPORTANT: Requests to send proceeds electronically within 15 days of establishing or changing bank instructions must be signature guaranteed, otherwise proceeds will be
sent by check to your address of record.
SIGNATURE OF BANK ACCOUNT OWNER
Date
SIGNATURE OF BANK ACCOUNT OWNER
Date
X
X
SIGNATURE GUARANTEE STAMP (IF REQUIRED PER THE ABOVE INSTRUCTIONS)7
Tape a preprinted, voided
check or preprinted
savings account deposit
slip here.
Bank account registration
information (your name
and address) cannot be
blank or handwritten.
Do not staple.
SIGNATURE GUARANTEE STAMP (IF REQUIRED PER THE ABOVE INSTRUCTIONS)7
J. A. Sample
123 Street
Anywhere, USA 00000
DED
I
O
D, V LIP
E
T
S
N
PRI POSIT
E
R
H P OR DE
C
A
ATT HECK
C
6. If your former spouse is electing to distribute the funds, he or she must complete a separate IRA Distribution Request Form.
7. If a signature guarantee is required, A NOTARY SEAL IS NOT ACCEPTABLE. Please have each signature separately guaranteed by a bank, savings and loan association, trust company, credit union, brokerdealer, or any other “eligible guarantor institution” as defined under the rules adopted by the Securities and Exchange Commission. These institutions often participate in signature guarantee medallion
programs such as the Securities Transfer Agent Medallion Program (STAMP). A notary public cannot provide signature guarantee.
Questions? Please call your financial advisor or Franklin Templeton Retirement Services at (800) 527-2020.
page 3 of 6
10
CERTIFICATION & AUTHORIZATION
I hereby acknowledge that I have received and read the IRA Distribution Guide. I expressly assume full responsibility for all tax implications of this distribution. I certify
under penalty of perjury that all information contained herein, including my Social Security number (above), is true and correct. I further certify that I am a U.S. person
(including a U.S. resident alien). (Nonresident aliens should cross out the preceding sentence and, if claiming treaty benefits, attach a completed Form W-8BEN.)
I authorize Franklin Templeton Investor Services, LLC (“Franklin Templeton”) to initiate electronic debits from and/or credits to the Bank Account identified in Section 9
(if one is provided), when instructed to do so by me or by my authorized representative (and to make, if necessary, adjusting transfers if any amounts are transferred
in error). If the Franklin Templeton account(s) and Bank Account include at least one common owner, I certify that the signature of the Franklin Templeton account
owner is sufficient to authorize debits from the referenced Bank Account.
I understand and agree that this authorization will remain in full force and effect until Franklin Templeton has received notification (whether by telephone or in writing)
from me or my authorized representative, that this authorization is terminated, and Franklin Templeton and the financial institution have had a reasonable opportunity to
act on the notification. I also agree that Franklin Templeton may make additional attempts to debit/credit the Bank Account if the initial attempt fails, and if a transfer
is denied by the bank for any reason, Franklin Templeton will discontinue this authorization.
I have requested options for transfers to or from my bank account in Section 9 and if there are no common owners between that bank account and my Franklin Templeton
fund account, my signature below is signature guaranteed.
SIGNATURE OF FRANKLIN TEMPLETON ACCOUNT OWNER
Date
X
SIGNATURE GUARANTEE STAMP (IF REQUIRED)*
*Your signature must be guaranteed if your distribution will be:­­
• over $100,000
• sent to a new address or any address other than the address of record
• made payable to a third party
• sent electronically within 15 days of establishing or changing bank instructions in Section 9
• sent electronically to a new bank account and you are not listed as an owner of that bank account
A NOTARY SEAL IS NOT ACCEPTABLE
Please have each signature separately guaranteed by a bank, savings and loan association, trust company, credit
union, broker-dealer, or any other “eligible guarantor institution” as defined under the rules adopted by the Securities
and Exchange Commission. These institutions often participate in signature guarantee medallion programs such as
the Securities Transfer Agent Medallion Program (STAMP). A notary public cannot provide a signature guarantee.
BEFORE YOU SUBMIT...
SECTION 1
SECTION 9
If any options selected require bank information, did you include a preprinted
voided check for your checking account or a preprinted deposit slip for your
savings account in Section 9?
Did you provide your name and Social Security number?
SECTION 2
Did you indicate the IRA type for your transaction?
SECTION 3
SECTION 10
Did you indicate a distribution event for your transaction?
If you are requesting that your distribution be sent to a new address, an
address other than the address of record or a new/changed bank account, did
you provide a signature guarantee?
SECTION 7
Did you complete your withholding election?
Please mail to:
Overnight
WEST COAST
EAST COAST
FTIOS
c/o Franklin Templeton Investor Services, LLC
P.O. Box 997153
Sacramento, CA 95899-7153
FTIOS
c/o Franklin Templeton Investor Services, LLC
P.O. Box 33033
St. Petersburg, FL 33733-8033
3344 Quality Drive
Rancho Cordova, CA 95670-7313
100 Fountain Parkway St. Petersburg, FL 33716-1205
Additional Information
A
CERTIFICATION OF PERMANENT AND TOTAL DISABILITY
One of the following must be provided as proof of your Permanent and Total Disability.
1.
2.
Copy of your valid Social Security Award Certificate
The certification below, completed by your physician
PHYSICIAN’S CERTIFICATION OF PERMANENT AND TOTAL DISABILITY I hereby certify that the Participant named on the reverse side has become unable
to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that is expected to last at least
12 months, and will be permanent and continuous during the remainder of his/her lifetime. I understand that this will serve as proof of Permanent and
Total Disability of the Participant, in order for his/her distributions to be exempt from the IRS’ 10% early distribution excise tax.
PHYSICIAN’S SIGNATURE
X
Name (please print or type)
Name of hospital/clinic
Street address
City
3.
Certification was previously provided to Franklin Templeton and I certify that it is still valid. Approximate date submitted (Month/Year):
page 4 of 6
Date
State
Questions? Please call your financial advisor or Franklin Templeton Retirement Services at (800) 527-2020.
ZIP
B
FIRST-TIME HOMEBUYER EXPENSE EXCEPTION
Internal Revenue Code (IRC) §72(t)(2)(F) provides for a penalty-free IRA distribution for qualified first-time home purchases. In order for this distribution to qualify
as penalty-free, all of the following conditions must be met:
• Neither you nor your spouse (if married) has owned a home in the past two years.
• The distribution will be used within 120 days of receipt for the acquisition (or construction) of your principal residence.
• The amount you have designated on the reverse side does not exceed your lifetime “first-time homebuyer” cap of $10,000.
If you intend to distribute money from your IRA under this provision and are under age 59½, please note that Franklin Templeton is required to code the distribution as
a premature distribution. If you qualify, you may report this distribution amount as penalty-free when filing your taxes, consistent with Instructions for IRA Form 1040.
Please consult a tax advisor for additional information.
C
HIGHER EDUCATION EXPENSES (FOR PARTICIPANT OR DEPENDENT)
IRC §72(t)(2)(E) provides for a penalty-free IRA distribution for qualified higher education expenses. In order for this distribution to qualify as penalty-free, all of the
following conditions must be met:
• The education expenses are incurred (no earlier than 1998) by the Participant, his or her spouse, child, or grandchild.
• The distribution is used to pay for a qualifying education expense as defined in IRC §529(e)(3), which includes tuition, books, fees, school supplies and
equipment, and room and board (provided the student is at least a half-time student).
• The school being attended must be an eligible educational institution as defined in IRC §529(e)(5), which generally includes colleges, universities, vocational
schools, or certain other post-secondary educational institutions.
If you intend to distribute money from your IRA under this provision and are under age 59½, please note that Franklin Templeton is required to code the distribution as
a premature distribution. If you qualify, you may report this distribution amount as penalty-free when filing your taxes, consistent with Instructions for IRA Form 1040.
Please consult a tax advisor for additional information.
D
DIVORCE TRANSFER INFORMATION
A Divorce Transfer of IRA plan assets pursuant to a court-approved divorce decree or property settlement is not a taxable distribution event [IRC §408 (d)(6)].
Assets awarded to the former spouse must be transferred to an IRA in the former spouse’s name. A new IRA account application must be submitted if an account
for the former spouse is not already established and assets are to be transferred to an FTIOS account for the former spouse. If the assets are to be transferred to
a new custodian, please provide a trustee acceptance letter from the new custodian. The former spouse may request from his/her IRA an immediate distribution by
completing an IRA Distribution Form. Additional paperwork is required; see Section 3. Section 8 must also be completed.
Please keep your beneficiary designation current. If you would like to restate your beneficiary designation, please provide Franklin Templeton with a completed and signed
Franklin Templeton Designation of Beneficiary Form, which can be found at franklintempleton.com or by calling (800) 527-2020.
E
WITHHOLDING ELECTION NOTICE
If you elect not to have federal income tax withheld, you are still liable for payment of federal income tax on the taxable portion of your distribution. Penalties under
the estimated tax payments rules may also apply if your payments of estimated tax withholding, if any, are not adequate. If you elect to have federal income tax
withheld, a minimum of 10% of the amount of the gross distribution must be withheld. You may choose to have an additional percentage or dollar amount withheld,
if you ­wish.
You are required to elect out of withholding in order for no withholding to apply to your distribution. If no election is made, federal taxes will be withheld at a rate of
10%. If you are a Roth IRA owner, you may elect to have withholding applied to your distribution; however, it is not required [IRC §3405(e)(1)(B) as amended by the
2001 Consolidated Appropriations Act].
For periodic payments, your election will remain in effect until you revoke it. You may change or revoke your withholding election by sending a signed letter to FTIOS
at least 15 days prior to the date on which you wish the change to take effect. Alternatively, you may change your withholding status by completing IRS Form ­W-­4P,
referencing the appropriate retirement plan account and sending it to FTIOS. You may change or revoke your withholding election as often as you ­wish.
Unless you are a nonresident alien, federal tax withholding at a rate of 10% is required on any distribution delivered to you outside of the United States or its
possessions. You cannot choose not to have income tax withheld on line 1 of Form W-­4P.
IRA distributions to nonresident aliens, nonresident alien beneficiaries, and foreign estates generally are subject to a 30% ­foreign-­person withholding tax on the
taxable portion of the distribution. However, many income tax treaties provide that IRAs are eligible for a reduced rate or exemption from withholding and tax. If
you are a nonresident alien, you should submit Form ­W-­8BEN, Certificate of Beneficial Owner for United States Tax Withholding, to FTIOS before receiving any
payments. The Form ­­W-­8BEN must contain a U.S. taxpayer identification number (TIN) if you are claiming benefits under a tax t­reaty.
IRA Distribution Guide
The Internal Revenue Code (IRC) provides several complex rules relating to the taxation of your IRA distributions. This notice contains important information
you should know when receiving benefits from your IRA. (Distributions from a Roth IRA or Roth Conversion IRA are discussed on the reverse side.) For further
information, refer to IRS Publication 590, Individual Retirement Arrangements on the IRS website, IRS.gov.
I
EARLY DISTRIBUTION PENALTY TAX
If you are under age 59½ and do not roll over your distribution within 60 days of receipt, the IRS may impose a federal excise tax of 10% on the taxable portion
of the distribution. The excise tax is increased to 25% if the distribution is taken from a SIMPLE IRA within the first two years of plan participation. However,
a distribution may not be subject to this premature penalty tax if it is:
1. On account of the Participant’s permanent and total disability [as defined under IRC §72(m)(7)];
2. One of a series of periodic payments over the Participant’s single or joint life expectancy that continues for a minimum period of five years and through age 59½
[IRC §72(t)(2)(A)(iv)];*
(Early Distribution Penalty Tax continued on next page.)
*A modification of the payment schedule may result in the retroactive application of the penalty tax on all pre-age 59½ payments. Further guidance is provided in IRS Notice 89-25, which also permits
“annuitization” of the account balance using an assumed rate of return. Those electing payments under this exception take full responsibility for monitoring and proper reporting of such payments. Requests
to adjust fixed payment amounts must be in writing.
page 5 of 6
Questions? Please call your financial advisor or Franklin Templeton Retirement Services at (800) 527-2020.
I
EARLY DISTRIBUTION PENALTY TAX (cont’d.)
3. Used towards the purchase, construction, or reconstruction of the Participant’s
first home within 120 days of such acquisition (subject to a lifetime cap of
$10,000);
4. Used towards a qualifying educational expense of the Participant, his
spouse, child, or grandchild;
5. Used to pay for deductible medical expenses [i.e., those in excess of 7.5%
of adjusted gross income (AGI)];
6. Used to pay health insurance premiums if unemployment compensation is
received for at least 12 consecutive weeks; or
7. Paid to a designated beneficiary upon the Participant’s death.
An exception to the penalty tax may be claimed by filing Form 5329. Obtain IRS Form 5329 and its instructions for further information from the IRS website, IRS.gov.
II
QUESTIONS & ANSWERS ON IRA REQUIRED MINIMUM DISTRIBUTIONS
(Not applicable to Roth IRAs or Roth Conversion IRAs)
Q-1 When must I begin receiving distributions from my IRA?
A-1Distributions must start no later than April 1 following the year you attain age 70½ (your “70½ year”). However, you must take your second distribution by
December 31 of the year following your 70½ year and a minimum distribution must be taken every year thereafter. A 50% IRS penalty tax may be imposed
on the amount you fail to withdraw by your required deadline.
Q-2 How is my required minimum distribution calculated?
A-2Your Required Minimum Distribution (“RMD”) is based upon a uniform distribution period that is determined by using a single table and using your actual
age attained in the distribution year and without regard to whether or not you have named a beneficiary (see table below for spousal beneficiary who is more
than 10 years younger). The IRS table used for determining your distribution period is the Uniform Lifetime Table. To calculate your RMD, the prior year-end
(Decem­ber 31) balance of your account is divided by the applicable divisor in the current Uniform Lifetime Table. The current Table may be found in IRS
Publication 590, Individual Retirement Arrangements on the IRS website, IRS.gov.
Q-3If I have designated my three children as primary beneficiaries of my IRA, can the minimum distribution amount be based on the joint life expectancy of
myself and the youngest of my three children?
A-3No. According to the final IRS RMD regulations, even when multiple primary beneficiaries are designated, only your age is used to calculate your RMD by using
a divisor that is the same as the divisor in the current Uniform Lifetime Table.
If your beneficiary designation is:
Refer to
A. Your Spouse who is sole primary beneficiary for the entire year.
The current Uniform Lifetime Table using your actual age attained in each distribution year.
For an i­ndividual age 70, the applicable divisor is 27.4 years.
However, if your spouse is more than 10 years younger, refer to the Joint Life Expectancy Tables
to find the new life expectancy factor each year by using the actual ages of you and your spouse in
the distri­bution year.
B. Non-spouse beneficiary or spouse who is not the sole beneficiary.
The current Uniform Lifetime Table using your actual age attained in each distribution year.
C. Entity (Non-individual).
The current Uniform Lifetime Table using your actual age attained in each distribution year.
Q-4Am I allowed to aggregate the minimum distribution amount of each of my IRAs held at different institutions, and then withdraw that total amount from
one of my IRAs?
A-4Yes, according to IRS Notice 88-38, you may satisfy the minimum distribution requirements by calculating the balance of each IRA separately, adding
together the RMD amounts of all IRAs, and withdrawing the total amount from any one or more of your IRAs.
Taxation of Distributions from a Roth IRA or Roth Conversion IRA
I.In order for a distribution from a Roth IRA or a Roth Conversion IRA to be “tax free,” two conditions must be met: (1) the distribution must occur after
the fifth year the account has been in existence and (2) one of the following four qualifying events must be met:
1. The Participant’s attainment of age 59½.
2. The Participant’s permanent and total disability [defined under IRC §72(m)(7)].
3. The distribution will be used towards the purchase, construction, or reconstruction of the Participant’s first home (up to a lifetime limit of
$10,000) within 120 days of each acquisition.
4. The distribution is made to the designated beneficiary upon the Participant’s death.
II.
If the five-year period has not elapsed (or none of the qualifying events listed in Section I above has been met), distributions may be subject to taxes
and penalties.
The information above is designed to provide accurate information as of the printing date of this form; however, it should not be relied upon as tax or legal
advice. For tax or legal advice, the services of a tax or legal professional should always be sought.
© 2016 Franklin Templeton Investments. All rights reserved.
RIRA FDIST 04/16