Investment and insurance products are not FDIC-insured. Check the background of Citizens Securities, Inc. onFINRA BROKERCHECK

Frequently Asked Questions: Investing and Retirement

Find out answers to popular questions about investing and retirement. If you prefer to contact us differently, visit Customer Service.

Customer Service

Account Information

Citizens Securities, Inc. offers you two account-opening options:
- Representative Assisted Accounts offer you the guidance of an experienced Financial Advisor helping you determine your short- and long-term investment goals. To open a Representative Assisted Account, please visit a Financial Advisor at your local Citizens Bank branch or contact us to arrange to speak with a Financial Advisor.
- Self-Directed Accounts enable you to develop your own investment strategy without the assistance of a Financial Advisor. With a Self-Directed Account you'll be able to process your own online trades. To open a Self-Directed Account, please contact us to have the forms mailed to you.
  Due to the passage of the "USA PATRIOT ACT" we are required to notify our customers of the following:
  
  Verification of Customer Identity - Federal laws and regulations require us to request information from you prior to opening an account or adding an additional signatory to an account. The information we request may vary depending on the circumstances, but at a minimum, will include your name, address, identification number such as your Social Security or taxpayer identification number, and for individuals, your date of birth. We are also required to verify the information you provide to us. This verification process may require you to provide us with supporting documentation that we deem appropriate. We may also seek to verify the information by other means. We reserve the right to request additional information and/or signatures from you from time to time. In all cases, the protection of our customer's identity and confidentiality is our pledge to you.
You can fund your accounts by linking it to one of your Citizens Bank accounts or via check.

If you'd like to make an additional purchase to an existing fund, please contact your Financial Advisor or contact us. If you prefer, you may mail a check ($U.S.) and a signed letter of instruction including your account number and fund information to the following address:

Citizens Securities, Inc.
JCB135
PO Box 42033
Providence, RI 02940

Please make your check payable to National Financial Services LLC.
In some cases, the check will be made payable directly to the annuity carrier. Please work with your Financial Advisor or contact us.

To wire funds to your Self-Directed Account, please have the wire addressed to:

JP Morgan Chase Bank, NY
One Chase Manhattan Plaza, New York City, NY
10005
ABA # 021000021
F/A/O NFS
A/C # 066-196-221
F/B/O Customer’s Name and "NFS A/C # XXX-XXXXXX"
To make a contribution to your existing Traditional IRA, Roth IRA, or SEP IRA, please work with your Financial Advisor or contact us. If you prefer, you may mail a check ($U.S.) made payable to “National Financial Services LLC” and a signed letter of instruction including your account number and purchase information to the following address:

Citizens Securities, Inc.
JCB135
PO Box 42033
Providence, RI 02940
You may request a distribution from your retirement account by completing the IRA Distribution Request Form that is available through a Financial Advisor at your local Citizens Bank branch or by contacting us. An IRA Distribution Request Form will be sent to you to complete and return to us. When Citizens Securities, Inc. has received the form, we will process the distribution per your request. Some IRA Distributions can be processed directly over the phone by contacting us.
Required minimum distributions from an IRA must begin by April 1 of the year following the year an individual turns 72. Required minimum distributions do not apply to Roth IRAs.

To set up a required minimum distribution from your IRA, please visit a Financial Advisor at your local Citizens Bank branch or contact us. A form will be sent to you to complete and return to us. When Citizens Securities, Inc. has received the form, we will calculate the required minimum distribution for you.
If you have a Representative Assisted Account, you may change or add a beneficiary(ies) to your IRA by completing the IRA Beneficiary Form that is available through a Financial Advisor at your local Citizens Bank branch, or contact us.

If you have a Self-Directed Account, you may change or add a beneficiary(ies) to your IRA by completing the IRA Beneficiary Form and mailing it to:

Citizens Securities, Inc.
JCB135
PO Box 42033
Providence, RI 02940
To roll over or transfer an existing account from another broker/dealer to your Representative Assisted Account, please visit a Financial Advisor at your local Citizens Bank branch or contact us to arrange to speak with a Financial Advisor.

To roll over an existing account from another broker/dealer or plan provider to your Self-Directed Account:

For 401(k)’s, 403(b)’s, etc., please complete the IRA Direct Rollover Authorization Form along with a most recent statement from the plan provider, and all plan provider paperwork. For IRA accounts, please complete the Transfer of Assets form and attach a current statement.

Mail the paperwork to:

Citizens Securities, Inc.
JCB1355
P.O. Box 42033
Providence, RI 02940

If you do not currently have an account with Citizens Securities, Inc., you will need to open an account prior to the transfer.
If you have a Representative Assisted Account, you may process a redemption or exchange funds through your Financial Advisor or by contacting us. One of our Financial Advisors will be able to assist you. All stock trades must be called into the Citizens Securities, Inc. Trade Desk 1-800-942-8300 option 2 by the client.

If you have a Self-Directed Account, you may process a redemption from your equity account, and exchange funds or place a stock trade from your IRA or equity account through our online trade service, by using our Automated Account Service, or by contacting us.
You can reinvest dividends on any United States stock or mutual fund held in your account at no charge. This service is available on all dividend-paying stocks and mutual funds listed on any exchange and any Nasdaq issue.

Your account will automatically be credited with cash in lieu of fractional shares. Dividend monies will be reinvested in the open market on your behalf by placing a market order prior to the opening on the dividend payable date.

You can set-up or make changes to your dividend reinvestment for any or all securities held in your account by contacting us .

Account Statements

Yes. Statements and trade confirmations are automatically available to you online in addition to a paper statement. To view the statements and trade confirmations, simply log in to your account and click on the Statement or Confirmation link under Account Info.

Also, if you choose to suppress paper statements and trade confirmations to receive online electronic delivery, simply login to your account and click on Document Delivery Instructions under the Service tab, and select the items that are desired to be received by e-delivery.

Automated Account Information

The Automated Account Service is a 24-hour automated system that allows you to use your phone to gather account information via voice recognition or by using your touch-tone keypad.

The Automated Account Service provides:
- Access to over 20,000 mutual funds and listed stocks on the NYSE, Amex, and Nasdaq
- Free access to real-time market quotes for stocks, mutual funds, and market indicators
- Total security through your confidential Password
- The ability to place buy or sell orders, market orders, and limit orders (Day or Good ’Til Canceled ("GTC")) for stocks or mutual funds on Self-Directed Accounts
- Ability to replace an existing order with a new order on Self-Directed Accounts
- Fast, convenient access to your account information
- A comprehensive demonstration program you can access at any time
- Simple to follow menus and "prompts"
- Immediate transfer to a customer service specialist during business hours
Please note: that certain features are not available to all account holders.

Tax Documents

Most tax forms are mailed by February 25th; however, due to extensions filed with the IRS by our clearing firm NFS this timeframe may be extended. If you don't receive your tax document or if your feel there is an error on it, please contact us and we will be happy to assist you.

For a guide to information on returns, please click here. Average cost basis is an accounting method used when an investor has made multiple purchases at different prices of the same security. The method averages the purchase prices to calculate an investor's cost basis in shares being liquidated. The difference between the average cost basis and the selling price determines the investor's tax liability.

Average cost information will appear on your account statement. Please note that these statements are generally produced for funds that originated with us. If you transferred an account to us from another broker that had cost basis records, the resigning broker may not have provided the average cost basis to us depending on when the transfer was processed. You may, however, contact us. to request a form to add the average cost basis to your account.

Contact Us

For additional information about our products and services, please contact us:

By telephone

Representative Assisted Accounts: 1-800-942-8300

Self-Directed Accounts: 1-800-456-0603

Our Investment Services Specialists are available Monday through Friday between 8:00 a.m. and 6:00 p.m. EST.

By mail

Citizens Securities, Inc.
JCB135
P.O. Box 42033
Providence, RI 02940

Please be sure to include your name, address, account number, telephone number, and signature/date on all correspondence.

Living In Retirement

Estate Planning typically has three stages: Accumulation, Preservation and Distribution. Generally speaking, the accumulation phase usually is considered your working years where you are building your estate, the preservation stage is your retirement years and you are living off your assets and the third stage involves distributing your estate to your heirs. It is recommended you engage an attorney who can draft the legal documents you may need like a will, power of attorney and trusts to address your goals.

Individual Retirement Accounts (IRAs)

There are many benefits to opening an IRA, including potential tax-deductible contributions, deferred taxes on earnings until you start making withdrawals, and the option to use your IRA to withdraw money (up to $10,000 penalty free) for a first-home down payment. Other penalty-free withdrawals include, but are not limited to, qualified higher education expenses, qualified first-home purchase (lifetime limit of $10,000), certain major medical expenses, certain long-term unemployment expenses, and disability or substantially equal periodic payments.
In addition to putting you in a position where you’re in complete control of your retirement, a Citizens Securities, Inc. Rollover IRA may increase your investment options, consolidates your assets for easier management, keeps your assets growing tax-deferred, and transfers funds tax-free and penalty-free from other retirement plans. For more information contact a Citizens Securities, Inc. Financial Advisor.
At any time, but the taxable portion of your withdrawal will become part of your income for the year. In most cases, if funds are withdrawn before age 59½, a 10% IRS tax penalty will be applied on the taxable portion of your withdrawal. Certain exemptions may apply, such as the purchase of a first home (up to $10,000), higher education expenses, or disability. Roth IRA accounts must remain open for at least five years and meet one of the exemptions in order to avoid tax penalties.

Annuities

An annuity can be an excellent complement to a well-rounded retirement portfolio because you can invest an unlimited amount of money typically without paying any current taxes as your invested money grows until you begin to make withdrawals. Also, when you invest in an annuity, you decide how long you want to receive income payments, how frequently you are paid, your risk tolerance of investing, and whether or not you want to provide income and benefits to loved ones.

529 Accounts

By opening a 529 account with Citizens Securities, Inc. you’ll receive one-on-one financial guidance and attention from a local Citizens Financial Advisor. Even if you have a relationship with another investment firm, have already started saving, need to discuss a possible student loan, or want to roll over your current 529 to Citizens Securities, Inc., a Financial Advisor can offer you a second look at your current plan to help ensure you are on track with your education planning goals.
Some advantages may include:
- No federal income tax on any investment earnings.
- Tax-free withdrawals for qualified education purposes.
- Typically the parent or grandparent is the account owner, not the child.
- Tax-deferred earnings.
- Contributions may be partially or fully deductible — up to $2,000 — from some state taxes. Check with your Financial Advisor to see if your state participates in this particular tax deduction.
- Anyone can contribute to the accounts.
Investment options can only be changed once per year with two exceptions: when you change beneficiaries or move the money to a different state’s plan.

*One should consider the investment objectives, risks, charges, and expenses carefully before investing in municipal fund securities. More information about municipal fund securities is available in the issuer's official statement. The official statement should be read carefully before investing.

Custodial Accounts

CSI FINRA/SIPC: Citizens Securities, Inc. is a member of FINRA and SIPC.

Citizens Securities, Inc. Business Continuity Plan
Citizens Securities, Inc. Managed Account Program Form ADV Disclosure Brochure
Citizens Securities, Inc. Digital Advisory Program Form ADV Disclosure Brochure
Quarterly Order Routing
Reg.BI Disclosure
Form CRS
Fiduciary Acknowledgement
Clarfeld Financial Advisors, LLC Form ADV Disclosure Brochure
Form CRS Clarfeld
Fiduciary Acknowledgment Clarfeld
CSI Deposit Sweep

Mutual Funds & Annuities: Mutual funds and variable annuities are sold by prospectus. To learn more about funds and variable annuities, including charges and expenses, please request a prospectus by calling 1-800-942-8300 and read it carefully before investing or sending money. Policy loans or withdrawals may involve costs such as surrender charges and there may be negative tax implications associated with a policy after substantial loans or withdrawals have been made. Withdrawals and loans made from life insurance policies classified as a "modified endowment contract" (MEC) are subject to income tax and may incur a 10% IRS penalty tax if taken prior to 59 1/2.

Variable Life: Variable life insurance policies are sold by prospectus. Please obtain a prospectus and read it carefully before investing or sending money.

Google Chrome: Google Chrome is a registered trademark of Google Inc.

Citizens Wealth Management: Citizens Wealth Management (in certain instances DBA Citizens Private Wealth) is a division of Citizens Bank, N.A. (“Citizens”). Securities, insurance, brokerage services, and investment advisory services offered by Citizens Securities, Inc. (“CSI”), a registered broker-dealer and SEC registered investment adviser - Member FINRA / SIPC. Investment advisory services may also be offered by Clarfeld Financial Advisors, LLC (“CFA”), an SEC registered investment adviser, or by unaffiliated members of FINRA and SIPC providing brokerage and custody services to CFA clients (see Form ADV for details). Insurance products may also be offered by Estate Preservation Services, LLC (“EPS”) or an unaffiliated party. CSI, CFA and EPS are affiliates of Citizens. Banking products and trust services offered by Citizens.

SECURITIES, INVESTMENTS AND INSURANCE PRODUCTS ARE SUBJECT TO RISK, INCLUDING PRINCIPAL AMOUNT INVESTED, AND ARE:
· NOT FDIC INSURED · NOT BANK GUARANTEED · NOT A DEPOSIT · NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY · MAY LOSE VALUE