Common use of Are There Different Types of IRAs or Other Tax Deferred Accounts? Clause in Contracts

Are There Different Types of IRAs or Other Tax Deferred Accounts?. Yes. Upon creation of a tax deferred account, you must designate whether the account will be a Traditional ▇▇▇ or a ▇▇▇▇ ▇▇▇, . (In addition, there are Simplified Employee Pension Plan (“SEP”) IRAs and Savings Incentive Matched Plan for Employees of Small Employers (“SIMPLE”) IRAs, which are discussed in the Disclosure Statement for Traditional IRAs). • In a Traditional ▇▇▇, amounts contributed to the ▇▇▇ may be tax deductible at the time of contribution. Distributions from the ▇▇▇ will be taxed upon distribution except to the extent that the distribution represents a return of your own contributions for which you did not claim (or were not eligible to claim) a deduction. • In a ▇▇▇▇ ▇▇▇, amounts contributed to your ▇▇▇ are taxed at the time of contribution, but distributions from the ▇▇▇ are not subject to tax if you have held the ▇▇▇ for certain minimum periods of time (generally, until age 59½ but in some cases longer). Each type of account is a custodial account created for the exclusive benefit of the beneficiary – you (or your spouse) in the case of the Traditional ▇▇▇ and ▇▇▇▇ ▇▇▇. U.S. Bank, National Association serves as Custodian of the account. Your, your spouse’s or your beneficiary’s (as applicable) interest in the account is nonforfeitable.