IRA Adoption Agreement And Plan Document

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DEFINITION of 'IRA Adoption Agreement And Plan Document'

A contract between the owner of an individual retirement account and the financial institution where the account is held. The IRA adoption agreement and plan document must be signed by the account owner before the IRA can be valid. It contains basic personal information about the account holder (such as address, date of birth and Social Security number) and lays out the detailed rules regarding the retirement account.

BREAKING DOWN 'IRA Adoption Agreement And Plan Document'

The IRA adoption agreement and plan document explains the plan's annual contribution limits, how contributions may be invested, the types of investments that are prohibited (e.g., collectibles), how and when the account funds may be withdrawn, provisions regarding required distributions, under what conditions the account may be transferred, what will happen to the account if the owner (depositor) dies, and what fees and expenses are associated with the plan.

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RELATED FAQS
  1. Can an IRA beneficiary roll the IRA over into another account and designate another ...

    It depends on the provision of the IRA plan document. Some (though very few) do not allow the designation of successor beneficiaries. ... Read Full Answer >>
  2. Are mutual funds considered retirement accounts?

    Unlike a 401(k) or Individual Retirement Account (IRA), mutual funds are not classified as retirement accounts. Employers ... Read Full Answer >>
  3. Can my IRA be garnished for child support?

    Though some states protect IRA savings from garnishment of any kind, most states lift this exemption in cases where the account ... Read Full Answer >>
  4. Can I use my IRA savings to start my own savings?

    While there is no legal reason why you cannot withdraw funds from your IRA to start a traditional savings account, it is ... Read Full Answer >>
  5. Can creditors garnish my IRA?

    Depending on the state where you live, your IRA may be garnished by a number of creditors. Unlike 401(k) plans or other qualified ... Read Full Answer >>
  6. How does an IRA grow over time?

    Individual retirement account, or IRA, growth depends on many factors, including what types of investments are included in ... Read Full Answer >>

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