The IRS has implemented new rules that significantly limit IRA owner’s options when moving IRA assets between financial institutions.
We have amended your IRA documents to reflect the recent legislation that resulted in this IRA rule change. Below you will find links to amendments applicable to your disclosure statement.
Specifically, language has been added to the disclosure statement to explain a change to the rollover rule. Effective January 1, 2015, an IRA owner may complete only one IRA to IRA rollover in any 12-month period, regardless of the number and type of IRAs owned by the individual. The rule change applies to all IRAs—Traditional, Roth, and SIMPLE—as well as Coverdell education savings accounts (ESAs).
For Traditional and Roth IRAs, there has been legislation which allows more individuals to qualify for rollovers from bankrupt airlines. For Traditional IRAs, we have also added language to address qualifying longevity annuity contracts (QLACs) and required minimum distribution (RMD) calculations.
Please review the appropriate amendment(s) for your IRA(s) and keep this information with the materials that were provided when you opened your IRA.
You may wish to consult with a tax advisor to determine if the rule change for rollovers affects your tax situation.
If you have any questions around this amendment please call our Retirement Services department at 1-800-948-7200, Monday through Friday between 8 a.m. and 6 p.m. Eastern Time. Roth IRA Amendment Disclosure Coverdell ESA Amendment Disclosure