Safe Harbor Information

The account that we hold for you was established with a rollover contribution from a 401(k) or other retirement account that you were enrolled in previously. MG Trust co. dba Matrix Trust (“Matrix Trust”) acts as the custodian of this Individual Retirement Account (IRA).

When the administrator of an employer-sponsored retirement plan is unable or unwilling to maintain a small residual balance for a former employee, or if the plan itself is terminating, if they are unable to contact a plan participant, or they do not receive a response from an attempt to contact, they can send these funds to a third-party custodian (like Matrix Trust) to establish a mandatory-rollover, or “Safe Harbor” IRA.

Any investment positions that were held in the originating plan have been liquidated, and the proceeds are now held in this IRA, as an FDIC-insured, interest-bearing money-market fund at JP Morgan Chase or a like institution.

If the employer-sponsored retirement plan you were previously enrolled in included a “Roth” component (such as a Roth 401(k) or Roth 403(b)) you may have both a Traditional IRA and a Roth IRA at Matrix Trust. Unlike traditional retirement plan contributions, Roth funds are contributions that were made after taxes. Therefore they must be separated from the traditional funds when being rolled over to Safe Harbor IRAs. Generally, distributions from a Roth IRA are not subject to ordinary income tax, although there may be a penalty for the earnings that have accrued, if any, on your original deposit, unless the funds have been held in the Roth IRA for 5 years or more, and you have reached the age of 59 ½, or another exception applies. (See IRS Publication 590 for more information about Roth IRA distributions, penalties and exceptions)

You can take full or partial, taxable distribution from your account at any time. Or you can avoid the taxes and penalties of a distribution by transferring your balance to another IRA, or by rolling it over into your current employer’s retirement plan. (Note: Roth IRA funds are not eligible to be rolled over to another Roth 401(k) or Roth 403(b) account. Funds from a Roth account may only be distributed or transferred to another Roth IRA).

In order to take any funds out of your account, you must complete all three of the forms linked on this page: The IRA Application (“Simplifier”), Customer Identification Form, and IRA Distribution Form. See the instruction documents for each of these forms for more information. If you have a Roth, rather than a Traditional IRA, you will need to complete the Roth Simplifier and Simplifier forms; if you have both Traditional and Roth accounts, you will need to complete both forms. You may return the forms to Matrix Trust via fax (303-893-0688), e-mail (mscsiraservice@broadridge.com) or regular mail (Matrix Trust, IRA Dept. 717 17th St., Ste 1300, Denver CO 80202).

This account was originally established for you by a third party, without your authorization, or your signature on our Plan and Trust agreement at that time. In order for us to accept any instruction from you now—including instructions to close the account—we must complete the process of legally opening it. By signing and returning the first page of the IRA Simplifier (and/or Roth IRA Simplifier), you are simply acknowledging the terms of the IRA, and recognizing Matrix Trust as the custodian of the account. We must have this on file in order to proceed with your disbursement request.

The Customer Identification Form satisfies our legal requirement under the USA PATRIOT Act and the Banking Secrecy Act, which mandates that we are able to verify the identity of our clients. Please provide the requested information from your current driver’s license, or other form of state or federal government-issued ID. Please attach a legible copy of your ID document.

If the funds in this account are sent to you directly, or deposited into a bank account in your name, the amount will be reported as taxable income on IRS Form 1099-R, which will be mailed at the time of your distribution. You will include this form with your other tax documents when you file after the end of the year. If you choose to have state and/or federal income tax withheld from your distribution, this will also be reported on this form.

If the funds in this account are sent to you directly, or deposited into a bank account in your name, the amount will be reported as taxable income on IRS Form 1099-R, which will be mailed at the time of your distribution. You will include this form with your other tax documents when you file after the end of the year. If you choose to have state and/or federal income tax withheld from your distribution, this will also be reported on this form.

If you choose to have your funds sent via Federal Funds Wire, we will collect a $20 fee for this service. There is no fee for a check or direct deposit (ACH) into your personal bank account.

When establishing a new account there is a $35 annual administration fee, which is collected at the end of the first month your account is funded, and every year at the end of the same month. If your account is over $10,000 there is no annual fee.

There is a $20 fee for distribution processing.