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Page 1 of 9MF1011 Ed. 3/2011
Prudential Mutual Fund Services LLC (PMFS),a Prudential Financial company
IRA, Roth IRA & SEP IRA ApplicationFor assistance:
Financial professionals: (888) 778-5471Clients: (800) 225-1852
Please print clearly, preferably in capital letters and black ink. Return completed application to Prudential Mutual Fund Services LLC.See page 9 for complete mailing instructions.
The annual maintenance fee is $15 per fund, with a $25 maximum for two or more funds.
USA Patriot Act requirements – To help the government fight the funding of terrorism and money laundering activities, PrudentialFinancial is required to obtain, verify, and record information on each person who opens an account.
Please be sure to review the Privacy Policy at the end of this application.
Important – The following information is required for each person associated with the account:
• Name • Residence address • Date of birth • Taxpayer ID number (SSN or EIN)
If this information is not provided, we will be unable to open the account. If we are unable to verify your identity, PrudentialFinancial reserves the right to close your account or take other steps we deem reasonable.
Instructions
Account Ownership1All information is required. If a minor IRA account is being setup, then please provide the information of the custodian/guardian,in the same format, on a separate sheet.
First name MI Last name
Social Security number Date of birth
Account mailing address
City State ZIP code 4-digit ext.
Residential/Permanent address (Complete if different from above or PO Box was provided for account mailing address.)
City State ZIP code 4-digit ext.
Home telephone number Daytime telephone number Extension
E-mail address (optional)
Citizenship
� U.S. Citizen � Nonresident alien*
� Resident alien Country of residence
*Nonresident aliens must attach the applicable Internal Revenue Service (IRS) Form W-8(BEN, ECI, EXP, IMY), which can beobtained at www.irs.gov. Also, nonresident aliens must cross out item 3 in section 12.
Marital Status �Married � Single �Widowed � Divorced Number of Dependents
Page 2 of 9MF1011 Ed. 3/2011
Beneficiary Designations2Those you designate as your primary beneficiaries will be the first to inherit your mutual fund assets upon your death. Secondarybeneficiaries will receive the balance of your mutual fund assets only after the primary beneficiary. Indicate the percentages foreach beneficiary. The primary and secondary beneficiary totals must each equal 100%. Spousal Consent - If you are a married person and have not designated your spouse as your sole primary beneficiary, your spousemust sign section 12.
A. Primary Beneficiaries (check all that apply)
� My Spouse (Select one only. Do not check both boxes.)
□ To the person I am married to at the time of my death
OR
□My spouse by name %Name (first, MI, last name) Date of birth (mm/dd/yyyy)
� My DescendantsIf you want your assets divided into unequal amounts to your descendants, then list the names and percentages of each person in the “Individual” section.
□ To my descendants who survive me, per stirpes %With per stirpes, your assets will be divided equally among your children. If a child is deceased, the entire portion due to that child will be divided equally among his or her children (if any). Note: Step children, foster children, etc are not included.
□ Equally to my grandchildren who survive me %
� IndividualsIf the Per Stirpes designation is checked and the named beneficiary does not survive the account owner, but leaves surviving descendants, then any share otherwise payable to such beneficiary shall instead be paid to such beneficiary’s surviving descendants, by right of representation. Note: If you need more space to list additional beneficiaries, provide all the information in the same format on a separate sheet with the date and your signature.
□ Name (first, MI, last name) Date of birth (mm/dd/yyyy)
%Relationship to owner ❍ Add a Per Stirpes designation
(optional designation)
□ Name (first, MI, last name) Date of birth (mm/dd/yyyy)
%Relationship to owner ❍ Add a Per Stirpes designation
(optional designation)
□ Name (first, MI, last name) Date of birth (mm/dd/yyyy)
%Relationship to owner ❍ Add a Per Stirpes designation
(optional designation)
� Trusts & Other Designations
□ Trust, Entity or Charitable Organization Name Date of Trust (mm/dd/yyyy) %
□My Estate ......................................................................................................................................................................................... %
%
}
1 0 0If the total does not equal 100%, Prudential will allocate equal percentages totaling 100% >
Page 3 of 9MF1011 Ed. 3/2011
Beneficiary Designations (continued)2B. Secondary Beneficiaries (check all that apply)
� My Spouse (Select one only. Do not check both boxes.)
□ To the person I am married to at the time of my death
OR
□My spouse by name %Name (first, MI, last name) Date of birth (mm/dd/yyyy)
� My DescendantsIf you want your assets divided into unequal amounts to your descendants, then list the names and percentages of each person in the “Individual” section.
□ To my descendants who survive me, per stirpes %With per stirpes, your assets will be divided equally among your children. If a child is deceased, the entire portion due to that child will be divided equally among his or her children (if any). Note: Step children, foster children, etc are not included.
□ Equally to my grandchildren who survive me %
� IndividualsIf the Per Stirpes designation is checked and the named beneficiary does not survive the account owner, but leaves surviving descendants, then any share otherwise payable to such beneficiary shall instead be paid to such beneficiary’s surviving descendants, by right of representation. Note: If you need more space to list additional beneficiaries, provide all the information in the same format on a separate sheet with the date and your signature.
□ Name (first, MI, last name) Date of birth (mm/dd/yyyy)
%Relationship to owner ❍ Add a Per Stirpes designation
(optional designation)
□ Name (first, MI, last name) Date of birth (mm/dd/yyyy)
%Relationship to owner ❍ Add a Per Stirpes designation
(optional designation)
□ Name (first, MI, last name) Date of birth (mm/dd/yyyy)
%Relationship to owner ❍ Add a Per Stirpes designation
(optional designation)
� Trusts & Other Designations
□ Trust, Entity or Charitable Organization Name Date of Trust (mm/dd/yyyy) %
□My Estate ......................................................................................................................................................................................... %
%
C. Minor Beneficiaries (optional)If any beneficiary named in this form is a minor, I hereby request that proceeds be paid to as custodian under the (name of state) UTMA (to the extent permitted by named state).
Important: The date of birth of the named minor is required in Section 2 (Individuals) for this designation to apply.
}
1 0 0If the total does not equal 100%, Prudential will allocate equal percentages totaling 100% >
Page 4 of 9MF1011 Ed. 3/2011
Account Type & Contribution Information3A. Account Type (Choose only one.)
� Traditional IRA � Roth IRA*(Establishment date)
� Rollover IRA � SEP IRA**(Employer name)
*The establishment date is the earliest date you either opened a Roth IRA or originally converted from a traditional IRA to a Roth IRA.This information is requested by the IRS and is needed to determine compliance with the taxable five-year holding period requirement.
**For SEP IRAs, the tax year for employer contributions is for your informational purposes only; all employer contributions arereported in the year received by Prudential Mutual Fund Services LLC (PMFS).
B. Inherited IRADecedent’s First name MI Last name
Decedent’s Date of death
Note: Please complete and attach the Request for IRA Beneficiary Distribution (Spouse and Non-Spouse) form (MF1024A) or theRequest for IRA Beneficiary Distribution (Entity) form (MF1024C) to establish required minimum distributions (RMD) from your newinherited IRA.
C. Contribution/Purchase Instructions
� Contributions (For SEP IRAs, input employee contributions as a Contribution.)Contribution for tax year Regular $ Catch-up $
Contribution for tax year Regular $ Catch-up $
Employer contribution for tax year Amount $ (SEP IRA only)
Employer contribution for tax year Amount $ (SEP IRA only)
� Rollover Purchase. Within 60 days of your receipt either from another like IRA (e.g. Roth IRA to Roth IRA or Traditional IRA toTraditional IRA) or an eligible rollover distribution from a retirement plan to a Traditional IRA, Rollover IRA or Roth IRA.
� Direct Rollover from an employer-sponsored retirement plan.Complete the Transfer/Direct Rollover/Conversion Authorization form (MF1012).
� Direct Rollover from a Roth 401(k) plan or Roth 403(b) plan.Complete the Transfer/Direct Rollover/Conversion Authorization form (MF1012).
� Transfer of an existing IRA, Roth IRA, SEP IRA, or SARSEP account from another custodian.Complete the Transfer/Direct Rollover/Conversion Authorization form (MF1012).
� Conversion from an existing Traditional IRA, SEP IRA, or SARSEP IRA account from another custodian into a Roth IRA.Complete the Transfer/Direct Rollover/Conversion Authorization form (MF1012).
Please make check payable to Prudential Mutual Fund Services.
Rollover check amount $
Estimated amount $
Estimated amount $
Estimated amount $
2 0
2 0
2 0
2 0
Estimated amount $
Page 5 of 9MF1011 Ed. 3/2011
Mutual Fund Selection & Allocation 4Please provide your investment selections by checking the box next to the fund number and indicate allocations as either a percentage (%) ordollar amount ($). If a fund offers a share class not listed, then write the fund number or share class in the ‘Other’ column next to the fund name.Refer to the fund’s prospectus for fund minimum and eligibility requirements.
Total: (100% or $)
Note: The total must equal 100% or the total dollar amount provided in section 3.
Fund Share Class Initial InvestmentFund Name Class A Class B Class C Other % $Prudential Asset Allocation Fund � 296 � 297 � 356 _____ % $Prudential Conservative Allocation Fund � 1509 � 1510 � 1511 _____ % $Prudential Growth Allocation Fund � 1501 � 1502 � 1503 _____ % $Prudential Moderate Allocation Fund � 1505 � 1506 � 1507 _____ % $Prudential Large-Cap Core Equity Fund � 533 � 534 � 369 _____ % $Prudential Stock Index Fund � 573 ---- � 379 _____ % $Prudential Strategic Value Fund � 586 � 587 � 383 _____ % $Prudential Jennison 20/20 Focus Fund � 515 � 516 � 362 _____ % $Prudential Jennison Blend Fund � 21 � 12 � 306 _____ % $Prudential Jennison Conservative Growth Fund � 560 � 561 � 373 _____ % $Prudential Jennison Growth Fund � 267 � 268 � 349 _____ % $Prudential Jennison Select Growth Fund � 576 � 577 � 381 _____ % $Prudential Jennison Value Fund � 26 � 19 � 307 _____ % $Prudential Mid-Cap Value Fund � 1756 � 1696 � 1634 _____ % $Prudential Small-Cap Value Fund � 566 � 567 � 376 _____ % $Prudential Jennison Mid-Cap Growth Fund � 298 � 299 � 357 _____ % $Prudential Jennison Small Company Fund � 25 � 18 � 316 _____ % $Prudential Global Real Estate Fund � 511 � 512 � 361 _____ % $Prudential International Real Estate Fund � 1040 � 1041 � 1042 _____ % $Prudential Jennison Equity Income Fund � 1760 � 1700 � 1638 _____ % $Prudential Jennison Equity Opportunity Fund � 285 � 286 � 354 _____ % $Prudential Financial Services Fund � 546 � 547 � 370 _____ % $Prudential Jennison Health Sciences Fund � 550 � 551 � 372 _____ % $Prudential Jennison Market Neutral Fund � 1010 � 1011 � 1012 _____ % $Prudential Jennison Natural Resources Fund � 32 � 39 � 312 _____ % $Prudential Jennison Utility Fund � 9 � 2 � 342 _____ % $Prudential Real Assets Fund � 1050 � 1051 � 1052 _____ % $Prudential US Real Estate Fund � 1030 � 1031 � 1032 _____ % $Prudential International Equity Fund � 574 � 575 � 380 _____ % $Prudential International Value Fund � 283 � 284 � 353 _____ % $Prudential Absolute Return Bond � 1044 ---- � 1045 _____ % $Prudential Floating Rate Income Fund � 1034 ---- � 1035 _____ % $Prudential Government Income Fund � 84 � 79 � 314 _____ % $Prudential High Yield Fund � 87 � 95 � 317 _____ % $Prudential Short-Term Corporate Bond Fund � 78 � 174 � 339 _____ % $Prudential Total Return Bond Fund � 264 � 265 � 347 _____ % $Prudential Global Total Return Fund � 272 � 273 � 351 _____ % $Prudential Emerge Mrkt Dbt Local Currency Fund � 1054 ---- � 1055 _____ % $Prudential California Muni Income Fund � 6 � 255 � 305 _____ % $Prudential Muni High Income Fund � 28 � 35 � 322 _____ % $Prudential National Muni Fund � 22 � 15 � 336 _____ % $
Prudential MoneyMart Assets ---- ---- ---- � 75 % $
Target Conservative Allocation Fund � 525 � 526 � 366 _____ % $Target Growth Allocation Fund � 529 � 530 � 368 _____ % $Target Moderate Allocation Fund � 527 � 528 � 367 _____ % $
OTHERFUNDS
EQUITYFUNDS
FIXEDINCOMEFUNDS
AssetAllocation
Large-CapStock
Small / Mid-CapStock
Specialty
InternationalStock
TaxableBond
MunicipalBond
MoneyMarket
AssetAllocation
Global Bond
Page 6 of 9MF1011 Ed. 3/2011
Letter of Intent & Rights of Accumulation5� Letter of Intent (LOI): Check here if establishing, complete the Letter of Intent form (MF230 PMFS), and include with this
application. Financial professionals can request a copy by calling (888) 778-5471.
� Rights of Accumulation: Check here and list account numbers below if you qualify for sales discounts on Class A shares.Please refer to the fund's prospectus and Statement of Additional Information to learn more about accounts that may beeligible. Indicate eligible accounts below. Note: All eligible funds may be aggregated for purposes of sales discounts on Class Ashares. If such funds are not held directly at PMFS, you should inform your sales professional in order to take advantage ofthese discounts.
Account Number Account Owner Name (first name, MI, last name) Relationship to You
Distribution Options6All dividends and capital gains will be reinvested if you do not make an election.
Dividends � Reinvest in shares � Pay in cash* � Send by ACH to the bank specified in section 9.Capital Gains � Reinvest in shares � Pay in cash* � Send by ACH to the bank specified in section 9.
*If the dividends and capital gains are to be distributed in cash or sent by ACH, please complete, sign and return IRS Form W-4Pwith this application.
Telephone/Online Exchange and Redemption Option7Your account will automatically be coded with the Telephone/Online Redemption and the Telephone/Online Exchange Privileges,unless you check the “No” box below.
� I do not want telephone exchange and redemption privileges.
Unless otherwise indicated above, you authorize the Fund’s distributor, Prudential Investment Management Services LLC (PIMS), toaccept telephone exchange and redemption instructions from any person identifying himself/herself as the owner of the account oras the owner’s dealer representative conveying instructions of the owner. PIMS and/or the Fund’s transfer agent, Prudential MutualFund Services LLC (PMFS), will employ reasonable procedures to confirm that such telephone instructions are genuine. Neither theFunds, PIMS nor PMFS shall be liable for any losses due to unauthorized or fraudulent instructions provided that such procedures arefollowed. Telephone exchanges and redemptions are subject to the procedures and conditions set forth in each Fund’s prospectus.
Page 7 of 9MF1011 Ed. 3/2011
Bank of Record*9Bank/Credit union name
Bank telephone number Bank routing number Bank account number
*To ensure accuracy, verify with your bank or credit union.Name of depositor on bank records (first, middle initial, last name) Bank type: � Checking � Savings
Name of joint depositor on bank records (first, middle initial, last name)
�
Attach voidedcheck here.
Name on bank account Check no. 1234
Street address
City, State ZIP
DATE
PAY TO THE ORDER OF $
DOLLARS
FOR _________________________________
555555 55555 1234123456789
Routing number (9 digits)
�
�
�
VOIDBank account number
Purchase Options (Check all that apply.)8A. � ACH Purchase Option: Check if you want the capability to make wire purchases, online or by telephone, upon demand, by
having the purchase amount debited from your bank account.
B. � Automatic Investment Plan (AIP): Set up recurring purchases into a fund and have the purchase amount debited from yourbank account. Note: All contributions will be processed as current year contributions and the total contributions may notexceed the maximum allowed per tax year.
Frequency (The minimum investment amount is $50 per fund.) :
�Weekly on __________(enter day of week e.g. Monday)�Monthly on the __________(enter a day of the month e.g. 15th)
Start date*
*If a specific day of the month is not listed above, debits will be made on or about the 15th of the month.
Share class Other$ into the Fund � A � B � C �
$ into the Fund � A � B � C �
$ into the Fund � A � B � C �
$ into the Fund � A � B � C �
$ into the Fund � A � B � C �
$ into the Fund � A � B � C �
$ Total amount (to be debited from bank/credit union account as specified in section 9)
Page 8 of 9MF1011 Ed. 3/2011
Financial Professional(s) Identification and Signature(s) (if applicable)11Broker/dealer name (Please print.)
Broker/dealer number Branch number Representative number*
*If more than one rep, use your joint rep number.
1. Financial professional (first name, MI, last name) (Please print.)
Financial professional’s signature X
Branch telephone number Alternate telephone number
2. Financial professional* (first name, MI, last name) (Please print.)
Financial professional’s signature X
Branch telephone number Alternate telephone number
e-Delivery and Mailing Preferences*10Why wait for the mail if you can get your account statements, confirmations, prospectuses, and fund reports faster by signing up fore-Delivery? By registering for this convenient and environmentally-friendly service, you will receive your Prudential mutual funddocuments online instead of in the mail. As new documents become available, you will receive an e-mail informing you of the newdocuments and instructions on how to view them online. You may change your e-mail address or cancel participation at any time byupdating your mailing preferences. Note: Certain entity and institutional accounts are not eligible for e-Delivery.
Account Statements: � e-Delivery � U.S. mail � e-Delivery and mail year-end statementConfirmations: � e-Delivery � U.S. mailProspectus, Fund Reports, and Proxy Mailings: � e-Delivery � U.S. mail
*All documents will be sent to you by U.S. Mail if you do not make a selection.
By enrolling for e-Delivery, you consent to receive online versions rather than paper copies of materials for your mutual fundaccounts at Prudential Mutual Fund Services LLC (PMFS). Once your account is established, PMFS will contact you by e-mail withinstructions to complete the online enrollment process and to log in to our website. We will only use your e-mail address to provideyou with the material you requested or to send important news about your account.
E-mail address for e-Delivery
Page 9 of 9MF1011 Ed. 3/2011
Signature and Tax Certification13The undersigned warrants that I have full authority and I am of legal age to purchase shares pursuant to this application. Further, Iacknowledge receipt of the prospectus(es) for the mutual fund(s) which I have selected, and agree to its/their terms. Iacknowledge receipt of the applicable Individual Retirement Custodial Account Agreement and Disclosure Statement and Iunderstand that there may be fees associated with this account.
I consent to the “householded” delivery of any mutual fund prospectuses, shareholder reports, or proxy statements. This meansPrudential Mutual Fund Services LLC (PMFS) will deliver a single copy of these documents to shareholders who share an address, evenif the accounts are registered in different names. My participation in this program will continue indefinitely unless I contact PMFS.
According to Federal law and/or state regulations, your account(s) may be subject to escheatment to your state of residency.Escheatment may be based on account inactivity and/or mail being returned by the post office (RPO). Check with your stateController’s office for additional guidance.
To help the government fight the funding of terrorism and money laundering activities, Prudential Financial is required to obtain,verify, and record information on each person who opens an account. This verification process will take place as we open youraccount. Once verification is completed, Prudential Financial will be able to fully service and maintain the account.
� Account Restriction: Check here if you would like PMFS to establish a restricted account from which funds shall be disbursedonly upon receipt of a valid court order or other document(s), as appropriate. A copy of the restriction (court order orotherwise), signed and dated on ________________________ has been provided with this mutual fund application. Therestriction shall continue until PMFS receives a valid court order or other written instruction as directed by PMFS, expresslyauthorizing the removal of the restriction.
The IRS does not require your consent to any provision of this documentother than the certification required to avoid backup withholding.
Owner’s signature X Date Sign here
Under penalties of perjury, I certify that:
(1) The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me),(2) I am not subject to backup withholding because: a) I am exempt from backup withholding; b) I have not been notified by the
Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest ordividends, or c) the IRS has notified me that I am no longer subject to backup withholding, and
(3) I am a U.S. person (including a U.S. resident alien).
You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholdingbecause of underreporting interest or dividends on your tax return. You must cross out item 3 if you are a not a U.S. person(including a U.S. resident alien).
Spousal Consent Authorization12Special laws apply to the designation of an IRA beneficiary by a married person residing in a "community property" state. If you aremarried and reside in a community property state and have not designated your spouse as your sole primary beneficiary in section 2,your spouse must sign this section. Your spouse's signature represents consent to the beneficiary designation.
First name MI Last name
Signature of spouse X Date (of IRA owner)
Sign here
Mailing Instructions for Mutual Fund Account Application
Standard Prudential Mutual Fund Services LLC mail to: PO Box 9658
Providence, RI 02940
Overnight Prudential Mutual Fund Services LLC mail to: 4400 Computer Drive
Westborough, MA 01581
Page 1 of 3MF1012 Ed. 3/2011
Prudential Mutual Fund Services LLC (PMFS),a Prudential Financial company
Transfer/Direct Rollover/Conversion Authorization
For assistance: Clients: (800) 225-1852
Pruco representatives: (800) 542-7117Financial professionals: (888) 778-5471
Submit a separate transfer form for each Resigning Custodian and each unique account type.
Instructions
Account Owner Information 1First name MI Last name
Social Security number PMFS account number (Required for existing accounts only.)
Account(s) to be Transferred to PMFS (Please attach copies of your most recent account statements.)2Complete all sections for your request to be processed. Note: Prudential Mutual Fund Services LLC cannot accept stock certificates.
A. Account types being transferred to PMFS
Transfer-in-Kind Instructions4Complete this section only if you have existing Prudential mutual funds and want to change your current Trustee/Custodian.Prudential shares will not be sold.
� Transfer my funds “in kind” immediately.
Important: Section 3 must be completed for any general securities to be liquidated. Otherwise, only Prudential positions will betransferred.
Transfer Instructions3All liquidations are done immediately unless special instructions are provided below. Check with your sending institution aboutfinancial penalties, suspensions, signature guarantees, or other restrictions that could affect the transfer of your account to PMFS.
A. Liquidate
� All $ (estimated value) � Partial % or $
B. Special instructions for CDs and certain annuity contracts
� Transfer immediately. I am aware of and acknowledge any penalty I may incur from an early withdrawal.
B. Account number(s) to be transferred
C. Resigning Custodian informationName of institution/employer-sponsored retirement plan from which the accounts in section B above will be transferred
Attention
Mailing address
City State ZIP code 4-digit ext.
Contact telephone number Extension Name of contact person or department
� Traditional IRA � Roth IRA � SEP-IRA � 403(b) Plan � Governmental 457 Plan� Roth 401(k) Plan � Roth 403(b) Plan � SIMPLE IRA� Employer-Sponsored 401(a) Retirement Plan (i.e., 401(k), pension or profit sharing plan, or defined benefit plan)
� Transfer at maturity (month, day, year): (Please submit 4 weeks prior to maturity date.)
Page 2 of 3MF1012 Ed. 3/2011
PMFS Account Type5The transferred proceeds will be invested into the following account type.
� Traditional IRA, Rollover IRA, or SEP IRA
� Roth IRA or Roth Conversion IRA Establishment date* � 403(b) Plan – You must have an existing account at PMFS. New accounts will not be accepted. *The date you originally contributed to a Roth IRA or converted from a traditional IRA to a Roth IRA. This information is required bythe IRS for compliance with the 5 tax-year holding period requirement.
Mutual Fund Selection and Allocation6
Withholding Election and Roth Conversion Disclosure7
Mailing Instructions for Resigning Custodian8
Federal tax law requires that income tax be withheld at a rate of 10% from the total amount of your IRA distribution/conversionunless you elect not to have tax withheld. Depending on your state of residence, state tax withholding may also apply.
If you do not want taxes withheld, proceed to the next section.
If you would like to have taxes withheld, please check the box below:
� I would like federal and applicable state income taxes withheld from my IRA distribution being converted to a Roth IRA. Iunderstand that, as a result, the portion of my IRA distribution that is withheld as income taxes will not be converted to myRoth IRA and may result in adverse tax consequences. (Please consult with your tax adviser.) If you would like more than 10% withheld, please indicate below:
Federal taxes State taxes* (Percentage or Dollars)
Percentage: % (minimum 10% distribution), or Percentage: %, or
Dollar amount $ (Amount cannot be less than 10% of distribution.) Dollar amount $
*Percentage/dollar amount cannot be less than the minimum required for your state.
Standard Prudential Mutual Fund Services LLC mail to: PO Box 9658
Providence, RI 02940
If you have any questions, please call PMFS at (800) 225-1852, Monday through Friday between 8 a.m. to 6 p.m. Eastern time.
Checks should be made payable to “PMFS for the benefit of (account owner).” Checks should be sent to:
Overnight Prudential Mutual Fund Services LLC mail to: 4400 Computer Drive
Westborough, MA 01581
� I am opening a new account and have attached a completed application. Allocation instructions are included in section 4 ofmy new account application.
� For this transfer request, invest the amount received into my existing account(s) (indicated in section 1) in the funds andallocations listed below.
Please provide investment fund selections and indicate allocations. Refer to the fund's prospectus for the fund minimum andeligibility requirements. Note: All allocations by percentage must total 100%.
Share class Fund name Fund number Percent AmountA B C Other
� � � % or $
� � � % or $
� � � % or $
� � � % or $
� � � % or $
� � � % or $
Total 1 0 0 % or $ Fund Holding Years. Indicate the number of years you intend to hold your mutual fund
Page 3 of 3MF1012 Ed. 3/2011
Authorization9For Traditional IRAs, Roth IRAs, SEP-IRAs, and 403(b) accounts. It is my intention to effect a transfer, without inclusion of theamount to be transferred in my gross income. You are directed to transfer all or a portion of the redemption value of the accountas identified in section 2 to an account established for me with Prudential Trust Company (PTC) as custodian. Accordingly, youare hereby directed to request on my behalf the transfer of my interest in the account referenced in section 2 for subsequentinvestment in Prudential Mutual Funds for investment in the custodial account(s) maintained for me. I hereby agree to the termsand conditions set forth in this Transfer/Direct Rollover/Conversion Authorization.
For direct rollover. This authorizes the employer-sponsored retirement plan designated in section 2 to distribute my eligiblerollover distribution directly from my retirement plan to PTC in accordance with the instructions in section 3.
I understand that the conversion of a traditional IRA to a Roth IRA will result in a taxable event which will be reported to the IRS.
If the account owner has attained the age of 70½ or older in the year of this transfer request, the required minimum distributionmust be removed prior to the transfer being made.
I understand that the Resigning Custodian may charge a closeout fee for IRA accounts. The default election is for the ResigningCustodian to redeem shares to cover charges.
� I authorize the Resigning Custodian to redeemshares to cover those charges.
Owner’s signature X Date
Signature Guarantee (If applicable, may be required by Resigning Custodian.)
Sign here
� I will arrange to cover those charges by other means. Important: If elected, any fees must be paid to the resigning custodian,prior to submitting this form, or they may deny the request.
Prudential Trust Company's Acceptance (To be completed by PMFS.)10Prudential Mutual Fund Services LLC, as agent for the Prudential Trust Company (PTC) which is custodian of the traditional IRA,Roth IRA, SEP IRA or 403(b) plan, hereby confirms its acceptance of the above mentioned transfer or rollover.
Authorized signature of Prudential Mutual Fund Services LLC (as agent for PTC)
X
Financial Professional Identification and Signature (if applicable)11Financial professional’s name (first name, MI, last name) (Please print.)
Financial professional’s signature X
Broker/Dealer’s name (Please print.)
Broker/Dealer number Branch/Agency number Rep./Contract number
Branch telephone number Alternate telephone number
Page 1 of 2MF1028 Ed. 3/2011
Prudential Mutual Fund Services LLC (PMFS),a Prudential Financial company
Authorization to Convert from a Traditional IRA to a Roth IRA
For assistance: Clients: (800) 225-1852
Pruco representatives: (800) 542-7117Financial professionals: (888) 778-5471
Use this form to request a distribution from your current PMFS traditional IRA and have the proceeds invested in a new or existingPMFS Roth IRA. Note: Conversion from a traditional IRA to a Roth IRA is a reportable, taxable event and may not be suitable foreveryone. You should consult with your tax adviser to review the consequences of this conversion.Please follow these steps:• Read the statement in section 6 and sign where indicated.• Make sure you have received and read a copy of the Roth IRA Custodial Agreement and Disclosure Statement included with
the IRA and Roth IRA Application.• If you would like to add or to change the beneficiary designation on your Individual Retirement Account (IRA), please complete
the MF 1001 Beneficiary Designation form.
Instructions
Method of Distribution3Please distribute the following amount from my traditional IRA (check one):
� Full distribution (100%)� Partial distribution in the amount of $ in cash� Partial distribution for shares
, .
Fund Allocation4I want the distribution indicated above to be invested into the following fund:
� Same fund as indicated in section 1 above
� New fund � Existing account: Fund number Account number
Mutual Fund Account Ownership Information1Name (first, MI, last name) �Mr. �Ms. �Mrs.
Mailing address
City State ZIP code 4-digit ext
Social Security number Date of birth
Fund name (Specify portfolio and class of shares, if applicable.)
Fund number Account number Daytime telephone number
Distribution Direction2Prudential Mutual Fund Services LLC is hereby directed to complete this distribution from a traditional IRA and apply the proceeds to a Roth IRA dated:
Note: The establishment date is the earliest date you either opened a Roth IRA or originally converted from a traditional IRA to aRoth IRA. This information is requested by the IRS for compliance with the 5-year IRS holding period requirement. Please be awarethat if you are requesting a conversion into an existing Roth IRA, a separate 5-year holding period applies to each conversion.PMFS will only track the holding period for the initial transaction that established the Roth IRA. It is your responsibility to track theholding period for each subsequent conversion.
Page 2 of 2MF1028 Ed. 3/2011
Withholding Election and Roth Conversion Disclosure5Federal tax law requires that income tax be withheld at a rate of 10% from the total amount of your IRA distribution/conversionunless you elect not to have tax withheld. Depending on your state of residence, state tax withholding may also apply.
If you do not want taxes withheld, sign the election form below. By signing this form, you elect not to have taxes withheld.
If you would like to have taxes withheld, please check the box below:
� I would like federal and applicable state income taxes withheld from my IRA distribution being converted to a Roth IRA. I understand that, as a result, the portion of my IRA distribution that is withheld as income taxes will not be converted to myRoth IRA and may result in adverse tax consequences. (Please consult with your tax adviser.) If you would like more than 10%withheld, please indicate below:
Federal taxes
Percentage: % (minimum 10% distribution), or
Dollar amount $ (Amount cannot be less than 10% of distribution.)
State taxes*
Percentage: %, or
Dollar amount $
*Percentage/dollar amount cannot be less than the minimum required for your state.
, .
, .
Signature6By signing below, I certify that:
• The information provided on this form regarding my status with respect to the account involved and all other aspects is correct.• I understand that converting from a traditional IRA to a Roth IRA is a taxable event which will be reported to the IRS and I will
be responsible for paying any income tax which might result from this conversion.• I have received and read a copy of the Roth Individual Retirement Custodial Account Agreement, Disclosure Statement and
applicable fund prospectuses.
X Date Sign here
Mailing Instructions for Mutual Fund Account Application
Standard Prudential Mutual Fund Services LLC mail to: PO Box 9658
Providence, RI 02940
Overnight Prudential Mutual Fund Services LLC mail to: 4400 Computer Drive
Westborough, MA 01581
Privacy NoticeThis notice is being provided on behalf of the companies listed in this Notice. It describes how information aboutyou is handled and the steps we take to protect your privacy. We call this information “customer data” or just“data.” If you have other Prudential products or relationships, you may receive a separate privacy notice describingthe practices that apply to those products or relationships. If your relationship with us ends, we will continue tohandle data about you the same way we handle customer data.
Protecting Customer DataWe maintain physical, electronic, and procedural safeguards to protect customer data. The only persons who areauthorized to have access to it are those who need access to do their jobs. We require them to keep the datasecure and confidential.
Information We CollectWe collect data you give us and data about the products and relationships you have with us, so that we can serveyou, including offering products and services to you. It includes, for example:
your name and address,income and Social Security number.
We also collect data others give us about you, for example:medical information for insurance applications,consumer reports from consumer reporting agencies, andparticipant information from organizations that purchase products or services from us for the benefitof their members or employees, for example, group life insurance.
Sharing DataWe may share data with affiliated companies and with other companies so that they can perform services for usor on our behalf. We may, for example, disclose data to other companies for customer service or administrativepurposes. We may disclose limited information such as:
your name,address, andthe types of products you own
to service providers so they can provide marketing services to us.
We may also disclose data as permitted or required by law, for example:to law enforcement officials,in response to subpoenas,to regulators, orto prevent fraud.
We do not disclose data to Prudential affiliates or other companies to allow them to market their products orservices to you. We may tell you about a product or service that a Prudential company or other companies offer.If you respond, that company will know that you were in the group selected to receive the information.
Annual NoticesWe will send notices at least once a year, as federal and state laws require. We reserve the right to modify thispolicy at any time.
If you have questions about Prudential’s Privacy Notice please call us. The toll-free number is (800) 236-6848.
Prudential, Prudential Financial and the Rock logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ and itsaffiliates. The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102-3777.Your Financial Security, Your Satisfaction & Your Privacy Privacy 0019 Ed. 1/2011
MUTU-D4413
Many Prudential Financial companies are required to send privacy notices to their customers. This notice is beingprovided to customers of the Prudential Financial companies listed below:
Insurance Companies and Separate AccountsPrudential Insurance Company of America, ThePrudential Annuities Life Assurance CorporationPruco Life Insurance CompanyPruco Life Insurance Company of New JerseyPrudential Retirement Insurance and Annuity Company (PRIAC)PRIAC Variable Contract Account ACG Variable Annuity Account I & II (Connecticut General)Pruco Insurance Company of IowaAll separate accounts that include the following names: Prudential, Pruco, and PRIAC
Insurance AgenciesPrudential Insurance Agency, LLC
Broker-Dealers and Registered Investment AdvisersAST Investment Services, Inc.Prudential Annuities Distributors, Inc.Global Portfolio Strategies, Inc.Prudential Bache Securities, LLCPruco Securities, LLCPrudential Investment Management, Inc.Prudential Investment Management Services LLCPrudential Investments LLC
Bank and Trust CompaniesPrudential Bank & Trust, FSBPrudential Trust Company
Investment Companies and Other Investment VehiclesAsia Pacific Fund, Inc., TheGreater China Fund Inc., ThePrudential Investments Mutual FundsPrudential Capital Partners, L.P.Target Portfolio Trust, ThePB Financial Services, Inc.Advanced Series TrustThe Prudential Series FundAll funds that include the Prudential name
Futures Commission MerchantPrudential Bache Commodities, LLC
MUTU-D4413
1
This Agreement governs the Participant'sPrudential Roth Individual RetirementCustodial Account ("IRA"), and is madebetween the Depositor and the Custodian toestablish a Roth Individual RetirementCustodial Account under section 408A of theInternal Revenue Code (the "Code") for theexclusive benefit of the Depositor and his orher beneficiaries. Actions by or for theCustodian shall also be deemed to includeactions by or for the Custodian's designee(herein Prudential Mutual Fund Services,LLC, also referred to as PMFS).
ARTICLE I—DEFINITIONS1. Application The application by which this Agreement, as it
may be amended from time to time, is accepted
by the Participant. The signed Application, and
the statements contained therein, are an integral
part of this Agreement.
2. Beneficiary The person or persons designated as such in
the Application or as indicated in the latest
subsequent written beneficiary designation
received by the Custodian from the Participant.
3. CodeThe Internal Revenue Code of 1986, as
amended from time to time.
4. Custodial AccountThe Individual Retirement Custodial Account
established under this Agreement. The account
is established for the exclusive benefit of the
individual or his or her beneficiaries. The interest
of an individual in the balance in his or her
account is nonforfeitable at all times.
5. Depositor Individual who makes contributions to this or
other Individual Retirement Accounts on his or
her own behalf.
6. DisabilityThe inability of an individual to engage in any
substantial gainful activity by reason of any
medically determined physical or mental
impairment, which can be expected to result in
death or to be of long, continued, and indefinite
duration. An individual shall not be considered to
be permanently and totally disabled unless he or
she furnishes proof of the existence thereof in
such form and manner, and at such times as the
Internal Revenue Service (IRS) may require.
7. Fund SharesMutual Fund Shares which are offered through
Prudential Mutual Fund Services LLC (PMFS)
for investment of Custodial Account assets.
8. ParticipantEach individual who has signed the Application
accompanying this Agreement and on whose
behalf contributions are made. This Agreement
governs the Participant's Prudential Mutual Fund
Individual Retirement Account ("IRA"), and is
made between the Participant and the
Custodian to establish an individual retirement
custodial account under Section 408(a) of the
Code for the exclusive benefit of the Participant
and his or her beneficiaries.
ARTICLE II1. Maximum permissible amountExcept in the case of a qualified rollover
contribution or a recharacterization (as defined
in II.4 below), no contribution will be accepted
unless it is in the form of a check or other
instrument acceptable by the Custodian. The
total of such contributions to all the Depositor's
Roth IRAs for a taxable year cannot exceed the
applicable amount (See Applicable Amount,
under II.2(c) below), or the Depositor's
compensation (as defined in II.6 below), if less,
for that taxable year. The contribution described
in the previous sentence that does not exceed
the lesser of the applicable amount or the
Depositor's compensation is referred to as a
"regular contribution". It is the responsibility of
the Depositor to determine whether any excess
contribution has been made, the amount of the
excess, the amount of any income earned on
the excess contribution, and for the timely
withdrawal or recharacterization of the
appropriate amounts.
A "qualified rollover contribution" is a
rollover contribution of a distribution from an IRA
that meets the requirement of Section 408(d)(3)
of the Code, except the one-rollover-per-year
rule of Section 408(d)(3)(B) does not apply if the
rollover contribution is from an IRA other than a
Roth IRA (a "non-Roth IRA"). "). For taxable
years beginning after 2005, a qualified rollover
contribution includes a rollover from a
designated Roth account described in Code
Section 402A; and for taxable years beginning
after 2007, a qualified rollover contribution also
includes a rollover from an eligible retirement
plan described in § 402(c)(8)(B). Contributions
may be limited under II.2 through II.3 below.
However, notwithstanding the dollar limits
on contributions, an individual may make a
repayment of a qualified reservist distribution
described in Section 72(t)(2)(G) during the 2-year
period beginning on the day after the end of the
active duty period or by August 17, 2008, if later.
2. Regular contribution limitIf (a) and/or (b) below apply, the maximum
regular contribution that can be made to all the
Depositor's Roth IRAs for a taxable year is the
smaller amount determined under (a) or (b),
as applied to the applicable amount under (c)
below. After 2006, the dollar amounts above will
be adjusted for cost-of-living increases under
Section 408(A)(c)(3). Such adjustments will be
in multiples of $1,000.
(a) The maximum regular contribution is phased
out ratably between certain levels of modified
adjusted gross income ("modified AGI,"
defined in (I.5) below) in accordance with the
following table:
If the Depositor's modified AGI for a taxable year
is in the phase-out range, the maximum regular
contribution determined under this table for that
taxable year is rounded up to the next multiple
of $10 and is not reduced below $200.
(b) If the Depositor makes regular contributions
to both Roth and non-Roth IRAs for a taxable
year, the maximum regular contribution that
can be made to all the Depositor's Roth IRAs
for that taxable year is reduced by the
regular contributions made to the Depositor's
non-Roth IRAs for the taxable year.
(c) Applicable Amount. The applicable amount
is determined under (1) or (2) below:
(1) If the Depositor will be under age 50
as of the end of the calendar year, the
applicable amount is $3,000 for 2002
through 2004; $4,000 for years 2005
through 2007; and $5,000 for 2008.
After 2008, the limit will be adjusted by
the Secretary of the Treasury for cost-
of-living increases under Code section
219(b)(5)(D). Such adjustments will
be in multiples of $500.
(2) If the Depositor will be 50 or older as
of the end of the calendar year, the
applicable amount is $3,500 for 2002
through 2004; $4,500 for 2005; $5,000
for 2006 and 2007; and $6,000 for
2008. After 2008, these limits will also
be adjusted by the Secretary of the
Treasury for cost-of-living increases
under Code section 219(b)(5)(C).
Such adjustments will be in multiples
of $500.
(3) If the individual was a participant in a
Section 401(k) plan of a certain
employer in bankruptcy described in
Section 219(c)(5)(c), then the
applicable amount under (1) above is
increased by $3,000 for taxable years
beginning after 2006 and before 2010
only. An individual who makes
contributions under this paragraph
may not also make contributions
under paragraph (2).
Filing Status
Single or Head ofHousehold
Joint Return or QualifyingWidow(er)
Married-SeparationReturn
Full Contribution
$95,000 or less
$150,000 or less
$0
Phase-out Range Modified AGI
Between $95,000 &$110,000
Between$150,000 &$160,000
Between $0 & $10,000
NoContribution
$110,000 or more
$160,000 or more
$10,000 or more
Roth Individual Retirement Custodial Account Agreement
3. Qualified rollover contribution limit A rollover from an eligible retirement plan other
than a Roth IRA or a designated Roth account
cannot be made to this IRA if, for the year the
amount is distributed from the other plan, (a) the
Depositor is married and files a separate return,
(b) the Depositor is not married and has
modified AGI in excess of $100,000 or (c) the
Depositor is married and the Depositor and the
Depositor's spouse have modified AGI in excess
of $100,000. For purposes of the preceding
sentence, a husband and wife are not treated as
married for a taxable year if they have lived
apart at all times during that taxable year and
file separate returns for the taxable year. For
taxable years beginning after 2009, the income
limits in this paragraph, do not apply to qualified
rollover contributions.
4. RecharacterizationA regular contribution to a non-Roth IRA may be
recharacterized pursuant to the rules in Section
1.408A-5 of the proposed regulations as a
regular contribution to this Roth IRA, subject to
the limits in (b) above.
5. Modified AGIFor purposes of I.2 and I.3 above, an
individual's modified AGI for a taxable year is
defined in Section 408A(c)(3)(C)(I) and does not
include any amount included in adjusted gross
income as a result of a rollover from an eligible
retirement plan other than a Roth IRA (a
"conversion").
6. CompensationFor purposes of (I.1) above, compensation is
defined as wages, salaries, professional fees or
other amounts derived from or received for
personal services actually rendered (including,
but not limited to, commissions paid salesmen,
compensation for services on the basis of a
percentage of profits, commissions on insurance
premiums, tips, and bonuses) and includes
earned income, as defined in Section 401(c)(2)
(reduced by the deduction the self-employed
individual takes for contributions made to a self-
employed retirement plan). For purposes of this
definition, Section 401(c)(2) shall be applied as if
the term trade or business for purposes of
Section 1402 included service described in
subsection (c)(6). Compensation does not
include amounts derived from or received as
earnings or profits from property (including, but
not limited to, interest and dividends) or amounts
not includible in gross income. Compensation
also does not include any amount received as a
pension or annuity or as deferred compensation.
The term "compensation" shall include any
amount includible in the individual's gross
income under Section 71 with respect to a
divorce or separation instrument described in
subparagraph (A) of Section 71(b)(2). In the
case of a married Depositor filing a joint return,
the greater compensation of his or her spouse is
treated as his or her own compensation, but only
to the extent that such spouse's compensation is
not being used for purposes of the spouse
making a contribution to a Roth IRA or a
nondeductible contribution to a non-Roth IRA.
ARTICLE IIINo contributions will be accepted under a
SIMPLE IRA plan established by any employer
pursuant to Section 408(p). Also, no transfer or
rollover of funds attributable to contributions
made by a particular employer under its
SIMPLE IRA plan will be accepted from a
SIMPLE IRA, that is, an IRA used in conjunction
with a SIMPLE IRA plan prior to the expiration of
the 2-year period beginning on the date the
individual first participated in that employer's
SIMPLE IRA plan.
ARTICLE IVThe Participant's interest in the balance in the
Custodial Account is nonforfeitable.
ARTICLE V1. No part of the custodial funds may be
invested in life insurance contracts, nor may
the assets of the Custodial Account be
commingled with other property except in a
common trust fund (within the meaning of
Section 408(a)(5)).
2. No part of the custodial funds may be
invested in collectibles (within the meaning of
Section 408(m)).
ARTICLE VI1. Distribution upon death--at the customer'srequest and direction:The distribution of the Participant's interest in
the account shall be made in accordance with
the requirements of Code Section 408(a)(6), as
modified by section 408A(c)(5), and the
underlying regulations, which provisions are
incorporated by reference.
Upon the death of the Participant, the
assets remaining in the Participant's Roth IRA
become the property of the Particpant's named
beneficiary. The Participant can name one or
more primary beneficiaries and contingent
beneficiaries, including individuals or entities,
such as trusts or the Participant's estate, to
receive any balance remaining in the Roth IRA
at the Participant's death. The contingent
beneficiaries named become beneficiaries of the
Participant's Roth IRA only if no primary
beneficiary survives the Participant, or if all
primary beneficiaries disclaim their interest in
the Account. If there is no designated
beneficiary, or if none of the beneficiaries that
are designated survive the Participant, then the
balance in the Roth IRA will be paid to the
Participant's surviving spouse or, if none, to the
Participant's estate.
Upon the death of the Participant, the
balance in the IRA must be distributed at least
as rapidly as follows:
(a) If the designated beneficiary is someone
other than the Participant's surviving spouse,
the entire interest will be distributed, starting
by December 31 of the year following the
year of the Participant's death. The
distributions would be made over the
remaining life expectancy of the designated
beneficiary. The designated beneficiary's life
expectancy would be determined by using
the age of the beneficiary as of his or her
birthday in the year following the year of the
Participant's death, or, if elected, in
accordance with paragraph (c) below.
(b) If the sole designated beneficiary is the
Participant's surviving spouse, the entire
interest will be distributed, starting by
December 31 of the year following the year
of the Participant's death (or by the end of
the calendar year in which the Participant
would have attained age 70 ½, if later). The
distributions would be made over such
spouse's life, or, if elected, in accordance
with paragraph (c) below. If the surviving
spouse dies before distributions are required
to begin, the remaining interest will be
distributed, starting by December 31 of the
year following the calendar year of that
spouse's death. The distributions would be
made over the spouse's designated
beneficiary's remaining life expectancy. This
would be determined by using the spouse's
designated beneficiary's age as of his or her
birthday in the year following the death of the
Participant's spouse, or, if elected, will be
distributed in accordance with paragraph (c)
below. If the Participant's surviving spouse
dies after distributions are required to begin,
any remaining interest will be distributed
over that spouse's remaining life expectancy
determined using the age as of his or her
birthday in the year of the spouse's death.
(c) If there is no designated beneficiary, or if
applicable by operation of paragraphs (a) or
(b) above, the entire interest will be distributed
by December 31 of the year containing the
fifth anniversary of the Participant's death (or
of the death of the Participant's spouse in the
case of the surviving spouse's death before
distributions are required to begin under
paragraph (b) above.
The amount to be distributed each year
under paragraph (a) or (b) is the amount
obtained by dividing the value of the IRA as
of the end of the preceding year by the
remaining life expectancy specified in such
paragraph. Life expectancy is determined
using the Single Life Table in Q&A-1 of
Section 1.401(a)(9)-9 of the Income Tax
Regulations. If distributions are being made
to a surviving spouse as the sole designated
beneficiary, such spouse's remaining life
expectancy for a year is a number in the
Single Life Table corresponding to such
spouse's age in the year, resulting in
recalculation of the spouse's life expectancy.
In all other cases, remaining life expectancy
2
Roth Individual Retirement Custodial Account Agreement
3
for a year is the number in the Single Life Table
corresponding to the beneficiary's age in the
year specified in paragraphs (a) or (b) and
reduced by one for each subsequent year.
2. No amount is required to be distributed prior
to the death of the Participant for whose
benefit the Custodial Account was originally
established.
3. The “value” of the IRA includes the amount
of any outstanding rollover, transfer and
recharacterization under Q&As-7 and -8 of
Section 1.408-8 of the Income Tax
Regulations.
4. If the sole designated beneficiary is the
individual’s surviving spouse, the spouse
may elect to treat the IRA as his or her own
IRA. This election will be deemed to have
been made if such surviving spouse makes
a contribution to the IRA or fails to take
required distributions as a beneficiary.
ARTICLE VII1. The Participant agrees to provide the
Custodian with information necessary for the
Custodian to prepare any reports required
under Sections 408(i) and 408A(d)(3)(D),
Regulation Sections 1.408-5, 1.408-6, and
any other appropriate sections, and under
guidance published by the Internal Revenue
Service.
2. The Custodian shall furnish annual calendar-
year reports concerning the status of the
Account and such information concerning
required minimum distributions as is
prescribed by the Commissioner of Internal
Revenue.
3. The Participant is responsible for making all
of the investment decisions relating to the
assets in the Account. The Participant will
direct us with regard to the investment and
reinvestment of the IRA contributions and
any investment earnings. The Participant
may change any investment direction at any
time. Upon the death of the Participant, the
Beneficiary is responsible for making
investment decisions for the Account.
The Participant acknowledges and agrees that
we, our agents, or employees do not have
discretionary authority over the Account, and
any investment decision is the sole responsibility
of the Participant. The Participant further
acknowledges and agrees that although we, our
agents, or employees may provide research and
other investment information from time to time
as part of the brokerage services for the
Account, such information does not affect the
Participant's responsibility for controlling the
investment decisions of the Account, nor does it
make us a fiduciary of the Account.
ARTICLE VIIINotwithstanding any other articles which may be
added or incorporated, the provisions of Articles
I through VI and this sentence will be controlling.
Any additional articles that are not consistent
with Section 408A, the related regulations, and
other published guidance will be invalid.
ARTICLE IXThis Agreement will be amended from time to
time to comply with the provisions of the Code,
related regulations, and other published
guidance. Other amendments may be made with
the consent of the persons whose signatures
appear on the application.
ARTICLE X1. Custodian Prudential Trust Company shall serve as the
custodian of the IRA.
2. AmendmentsThis Custodial Agreement is intended to be and
to remain a qualified Roth Individual Retirement
Account within the meaning of Section 408A of
the Code. For the purpose of insuring the
continued compliance of this Agreement with the
requirements of applicable law, or of conforming it
to statutory or regulatory changes in allowable
contribution limits, this Agreement may be
amended from time to time by written instrument
delivered to the Custodian without the consent of
the Participant. The Custodian also may make
such other amendments to this Agreement from
time to time as may be consistent with the
provisions of applicable law, which amendments
shall not be effective until the Custodian and the
Participant have consented thereto. With regard
to an amendment for which consent is required,
no amendment to this Agreement shall vest any
right or interest in the Custodial Account in any
party other than the Participant, his or her spouse
or beneficiaries, and any such amendments may
be effective retroactively, provided that such
amendment shall not deprive the Participant, his
or her spouse or beneficiary of any benefit to
which each may be entitled as a result of
contributions made prior to the amendment.
3. Fiduciary responsibilities(a) The Custodian shall be responsible for the
administration of the Custodial Account, shall
receive all contributions, shall make
distributions and pay benefits from the
Custodial Account, shall file such statements
or reports as may be required in the
administration of the Custodial Account, and
do other things as may be required in the
administration of the Custodial Account. The
Custodian shall maintain separate records for
the interest of each individual. The
Custodian, unless otherwise directed by the
Participant and accepted by the Custodian,
shall not make decisions with respect to the
investment of Custodial Account assets.
Unless otherwise directed, all dividends,
including capital gain dividends, paid on
Fund shares shall be reinvested in full and
fractional shares of the mutual fund paying
the dividend.
(b) The Custodian shall use reasonable care,
skill, prudence and diligence in the
administration and investment of the
Custodial Account and in executing any
written instructions by the Participant, and
shall be entitled to rely on information
submitted by the Participant to the
Custodian.
4. Termination by CustodianThe Custodian may resign as Custodian and
terminate this Agreement at any time upon 30
days' notice to the Participant. If no successor to
the Custodian is designated by the Custodian,
or if such successor is not acceptable to the
Participant, the Participant shall appoint a
qualified successor custodian or trustee. Upon
acceptance by the successor, the Custodian
shall pay, transfer and deliver to the successor
the balance of the Participant's Account after
deducting any fees payable and due. If no
successor has accepted its appointment at the
time the Custodian's resignation is to become
effective, the Custodian reserves the right to
pay, transfer and deliver such amount to the
Participant. The balance of any amount deemed
necessary by the Custodian to be held in
reserve to cover any expense or liability
constituting a charge against the account shall
not be so paid, transferred or distributed until
satisfaction of such charge.
5. Substitution of CustodianThe Custodian will substitute another custodian
or trustee if notified by the Commissioner of
Internal Revenue that such substitution is
required because the Custodian has failed to
comply with the requirements of Section 1.408-
2(e) of the Income Tax Regulations, or are not
keeping records, making returns, or rendering
statement as required by law.
ARTICLE XI1. Arbitration agreement
Please be aware of the following:
(a) Arbitration is final and binding on the
parties.
(b) The parties are waiving their rights to
seek remedies in court, including the
right to
jury trial.
(c) Pre-arbitration discovery is generally
more limited than and different from
court proceedings.
(d) The arbitrators' award is not required
to include factual findings or legal
reasoning, and any party's right to
appeal or to seek modification of
rulings by the arbitrators is strictly
limited.
(e) The panel of arbitrators will typically
include a minority of arbitrators who
were or are affiliated with the
securities industry.
Roth Individual Retirement Custodial Account Agreement
4
The Participant agrees that all
controversies that may arise between us
concerning any transaction relating to this
Agreement or the Participant's Account, to
transactions with or for the Participant's Account,
or any breach of this or any other agreement
between us (whether executed or to be
executed within or outside of the United States),
whether entered into prior, on, or subsequent to
the date indicated on the signature page of the
Prudential IRA Application shall be determined
by arbitration.
Such arbitration may be before either the
New York Stock Exchange, Inc. or the National
Association of Securities Dealers, as the
Participant may elect and shall be governed by
the laws of the State of New York. If the
Participant does not make such election by
registered mail addressed to Prudential, at
Prudential's main office within five (5) days after
demand by us that the Participant make such
election, then Prudential may make such
election. Any notice in connection with such
arbitration proceeding may be sent to the
Participant by mail, and the Participant hereby
waives personal service. Judgment upon any
award rendered by the arbitrators may be
entered in any court having jurisdiction, without
notice to the Participant.
No person shall bring a putative or certified
class action to arbitration, nor seek to enforce
any pre-dispute arbitration agreement against
any person who has initiated in court a putative
class action; or who is a member of a putative
class who has not opted out of the class with
respect to any claims encompassed by the
putative class action until: (i) the class
certification is denied; (ii) the class is decertified;
or (iii) the customer is excluded from the class
by the court. Such forbearance to enforce an
agreement to arbitrate shall not constitute a
waiver of any rights under this Agreement
except to the extent stated herein.
In witness whereof, the Participant hassigned the IRA Application for this RothIndividual Retirement Custodial Account toevidence their acceptance on the date and yearwritten on the IRA Application, which is madepart of this Agreement.
Roth Individual Retirement Custodial Account Agreement
5
Individual Retirement Custodial Account Agreement
ARTICLE I—DEFINITIONS1. ApplicationThe application by which this Agreement, as it
may be amended from time to time, is accepted
by the Participant. The signed Application, and
the statements contained therein, are an integral
part of this Agreement.
2. BeneficiaryThe person or persons designated as such in
the Application or as indicated in the latest
subsequent written beneficiary designation
received by the Custodian from the Participant.
3. CodeThe Internal Revenue Code of 1986, as
amended from time to time.
4. CompensationWages, salaries, professional fees or other
amounts derived from or received for personal
service actually rendered (including, but not
limited to, commissions paid to salesmen,
compensation for services on the basis of a
percentage of profits, commissions on insurance
premiums, tips and bonuses) and includes
earned income as defined in Section 401(c)(2)
(reduced by the deduction the self-employed
individual takes for contributions made to a self-
employed retirement plan). For purposes of this
definition, Section 401(c)(2) shall be applied as
if the term trade or business for purposes of
Section 1402 included service described in
subsection (c)(6). Compensation does not
include amounts derived from or received as
earnings or profits from property (including, but
not limited to, interest and dividends) or amounts
not includible in gross income. Compensation
also does not include any amount received as a
pension or annuity or as deferred compensation.
The term "compensation" shall include any
amount includible in the individual's gross
income under Section 71 with respect to a
divorce or separation instrument described in
subparagraph (A) of Section 71(b)(2).
5. CustodianThe Custodian will be Prudential Trust
Company. Actions by or for the Custodian shall
also be deemed to include actions by or for the
Custodian's designee (herein Prudential Mutual
Fund Services, LLC, also referred to as PMFS).
6. Custodial AccountThe Individual Retirement Custodial Account
established under this Agreement. The account
is established for the exclusive benefit of the
individual or his or her beneficiaries. The interest
of an individual in the balance in his or her
account is nonforfeitable at all times.
7. Depositor Individual who makes contributions to this or
other Individual Retirement Accounts on his or
her own behalf.
8. DisabilityThe inability of an individual to engage in any
substantial gainful activity by reason of any
medically determined physical or mental
impairment, which can be expected to result in
death or to be of long, continued, and indefinite
duration. An individual shall not be considered to
be permanently and totally disabled unless he or
she furnishes proof of the existence thereof in
such form and manner, and at such times as the
Internal Revenue Service (IRS)
may require.
9. Fund SharesMutual Fund Shares which are offered through
Prudential Mutual Fund Services LLC (PMFS)
for investment of Custodial Account assets.
10. ParticipantEach individual who has signed the Application
accompanying this Agreement and on whose
behalf contributions are made. This Agreement
governs the Participant's Prudential Mutual Fund
Individual Retirement Account ("IRA"), and is
made between the Participant and the
Custodian to establish an individual retirement
custodial account under Section 408(a) of the
Code for the exclusive benefit of the Participant
and his or her beneficiaries.
ARTICLE II-CONTRIBUTIONS1. ContributionsThe general rule is that each year, regular
contributions to a Depositor's traditional IRA are
the smaller of the maximum contribution amount
allowed by law or 100% of compensation.
(a) Except in the case of a rollover contribution
(as permitted by Sections 402(c), 403(a)(4),
403(b)(8), or 408(d)(3)) or a contribution
made in accordance with the terms of a
Simplified Employee Pension (SEP) as
described in Section 408(k), no contributions
will be accepted unless they are in the form
of a check or other instrument acceptable by
the Custodian. The total of such contributions
shall not exceed:
$3,000 for any taxable year beginning
in 2002 through 2004;
$4,000 for any taxable year beginning
in 2005 through 2007; and
$5,000 for any taxable year beginning
in 2008 and years thereafter.
After 2008, the limit will be adjusted by the
Secretary of the Treasury for cost-of-living
increases under Code section 219(b)(5)(C).
Such adjustments will be in multiples of $500.
(b) In the case of an individual who is 50 or
older, the annual cash contribution limit is
increased by:
$500 for any taxable year beginning in
2002 through 2005; and $1,000 for
any taxable year beginning in 2006
and years thereafter.
(c) No contributions will be accepted under a
SIMPLE IRA plan established by any
employer pursuant to Section 408(p). Also, no
transfer or rollover of funds attributable to
contributions made by a particular employer
under its SIMPLE IRA plan will be accepted
from a SIMPLE IRA, that is, an IRA used in
conjunction with a SIMPLE IRA plan, prior to
the expiration of the two-year period beginning
on the date the individual first participated in
that employer's SIMPLE IRA plan.
It is the responsibility of the Depositor to
determine whether any excess contribution has
been made, the amount of the excess, the
amount of any income earned on the excess
contribution, and for the timely withdrawal or
recharacterization of the appropriate amounts.
2. TransfersAssets held on behalf of the Participant in
another IRA may be transferred to the Custodian
in a form or manner acceptable to the
Custodian, to be held in the Custodial Account
for the Participant under this Agreement. Assets
held on behalf of the Participant in the Custodial
Account may be transferred directly to a trustee
or custodian of another IRA established for the
Participant, if so directed by the Participant and
the other custodian or trustee, and in a form or
manner acceptable to the Custodian. In
accepting or making any such direct transfer of
assets, the Custodian assumes no responsibility
for the tax consequences of the transfer.
If the Participant directs us to transfer or
rollover assets to a trustee or custodian of
another IRA established for the Participant and
the Participant has established a systematic
withdrawal for his or her minimum distribution (as
described in Article VI, Section 2 below), and the
minimum distribution has not been satisfied for
that year, a check for amount necessary to satisfy
the minimum distribution will be mailed directly to
the Participant. The remainder of the assets will
be sent to the new trustee or custodian.
ARTICLE III—INVESTMENTS1. Application of Contributions
Each contribution to the Custodial Account
shall be applied by the Custodian to the
purchase of Fund shares as directed by the
Participant. The Custodian shall be under no
duty to question any investment direction of the
Participant or to review the appropriateness or
quality of the investments.
No part of the Custodial Account will be
invested in life insurance contracts, and the
assets in the Custodial Account will not be
commingled with other property, except in a
common trust fund or common investment fund.
All dividends, including capital gain
distributions, paid on Fund shares shall be
reinvested in full and fractional shares of the
mutual fund paying the distribution in the
manner specified in the prospectus of the
mutual fund, and such distributions shall be
credited to the Participant's Custodial Account.
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The Participant may direct the Custodian to
redeem any or all Fund shares held in the
Participant's Custodial Account and to invest the
proceeds in any other Fund shares to be held in
the Custodial Account subject, however, to the
applicable terms and conditions of the prospectus
for each mutual fund involved. All Fund shares
acquired by the Custodian shall be registered in
the name of the Custodian or its nominee.
After the Participant's death, the
Participant's Beneficiary shall be considered the
Participant for purposes of Custodial Account
investment matters.
2. Investment AdvisersRegardless of any other provision of this
Agreement to the contrary, the Participant may
also appoint an investment adviser or other
person to act as the Participant's representative
with authority to direct the Custodian with respect
to the investment of assets in the Custodial
Account. The appointment, however, will be
effective only if (a) the Custodian has received a
signed copy of an agreement between the
Participant and the representative in a form
acceptable to the Custodian, which specifies the
authority of the representative to act on behalf of
the Participant, and (b) the Custodian does not
object to acting on the directions of that person,
which objection the Custodian may assert for any
reason at any time. If the Participant appoints a
representative, as provided for above, references
to the "Participant" are also to that
representative. However, all references in this
Agreement to the individual whose Custodial
Account is involved and to the making of
contributions and the receipt of distributions are
only to the Participant.
ARTICLE IV—ADMINISTRATION1. Record Keeping and ReportingSeparate records shall be maintained for the
interest of each individual Participant. The
Custodian shall maintain records of receipts,
investments, disbursements, distributions, and
other transactions with respect to the
Participant's Custodial Account. The Custodian
shall forward to the Participant confirmations of
each purchase and sale within the Custodial
Account as soon as practicable after each such
transaction. The Custodian shall provide the
Participant with all tax forms or other
information, which it may be required by law to
provide, including such information regarding
required minimum distributions as is prescribed
by the Commissioner of Internal Revenue.
The Custodian shall provide an annual report
setting forth total contributions to and distributions
from the Custodial Account during the calendar
year involved, and the calendar year-end values
of assets then held in the account, within 120 days
after the close of the year.
In the absence of the filing of objections or
exceptions to the report with the Custodian in
writing by the Participant within 60 days after the
making of such report, the Participant shall be
deemed to have approved such report, and the
Custodian shall be discharged, released, and
relieved from all liability to anyone, including any
beneficiary, with respect to any matters contained
in the report, as though such account had been
settled by a court of competent jurisdiction.
2. AccountingNo person other than the Participant or his or
her legal representative may require an
accounting of the Participant's Custodial Account
or bring any action against the Custodian with
respect to his Custodial Account. The Custodian
shall have the right to apply to a court of
competent jurisdiction for judicial settlement of
its accounts should any dispute arise.
ARTICLE V—FEES AND EXPENSES1. Custodial FeesThe Participant's Custodial Account shall be
charged by the Custodian for its services
hereunder in accordance with the current fee
schedule of the Custodian as it may be in effect
from time to time or as it may be amended by
the Custodian. Any administrative expenses,
including fees for legal and/or accounting
services incurred by the Custodian at the
request of or necessitated by the actions of a
Participant or Beneficiary, that are over and
above the services set forth in the Custodian's
fee schedule shall be paid by the Participant and
the Participant hereby covenants and agrees to
pay the same. Fees or other administrative
expenses not paid by the Participant directly to
the Custodian when due may be charged to the
Custodial Account. The Custodian reserves the
right to liquidate any assets of the Custodial
Account to collect any charge for which payment
may at any time be past due.
2. TaxesAny income, transfer or other taxes of any kind
whatsoever that may be levied or assessed
upon any Custodial Account or that the
Custodian may otherwise be charged with the
responsibility of collecting shall be paid from the
assets of the Custodial Account involved.
3. Fees Relating to Fund SharesFund shares carry their own fees and expenses,
which may include management fees, Rule 12b-
1 fees and/or other fees and expenses, which
are described in detail in each Fund's
prospectus. Individuals who invest in Fund
shares will, as shareholders of those Funds,
bear their pro-rata portion of each Fund's fees
and expenses.
ARTICLE VI—DISTRIBUTIONS1. Methods of DistributionA Participant may withdraw all or part of his or
her Custodial Account balance at any time upon
prior written notice acceptable to the Custodian
in either of the following ways:
In a single payment;
In periodic monthly, quarterly,
semiannual or annual installments; or
Any combination thereof.
Any payment must be taken in cash through
check or electronic funds transfer..
2. Distributions Before DeathThe entire balance of the Custodial Account of
the individual for whose benefit the account is
maintained is required to be distributed, or
commence to be distributed, no later than the
first day of April following the calendar year in
which such individual attains age 70½ (required
beginning date). The minimum amount that
must be withdrawn is equal to the balance in the
Participant's IRA as of December 31 of the prior
year divided by the factor for the Participant's life
expectancy (from a table which assumes a
designated beneficiary is 10 years younger than
the Participant). Calculations must use tables
published by the IRS (found in Q&A-2 of Section
1.401(a)(9)-9 of the Income Tax Regulations,
using the Participant's age as of his or her
birthday in the year) to find the applicable life
expectancy divisor. However, if the sole
designated beneficiary is the Participant's
surviving spouse and such spouse is more than
10 years younger than the Participant, then the
distribution period is determined under the Joint
and Last Survivor Table in Q&A-3 of Section
1.401(a)(9)-9, using the Participant's and the
spouse's birthdays in the year. However, if the
first required distribution is delayed until the year
after the Participant reaches age 70½, then the
first and second required distributions must both
be taken in that year, and the IRA balance used
to determine the amount of both the first and
second required distributions must be adjusted.
The amount of the first required distribution is
determined by using the IRA balance as of
December 31 of the year prior to the year the
Participant attained age 70½, not the year prior
to the year in which the Participant is taking the
distribution. A special calculation must be used
to determine the amount of the second required
distribution that must take by December 31 of
that same year. This calculation reduces the
account balance as of December 31 of the first
distribution year by the amount of the first
required distribution that was delayed until as
late as April 1 of the following year.
The Participant is responsible for
determining his or her minimum distribution
amount and for notifying the Custodian, or the
Custodian's designee, as to when the
distribution is to be made each year. If the
Participant fails to take a distribution that
satisfies the minimum distribution requirements,
we will assume that the Participant has elected
to satisfy minimum distribution requirements
from another source.
The Participant may withdraw more in any
year than the minimum amount required for that
year, but there is no credit for the additional
amount withdrawn in determining the required
minimum distribution for future years. However,
any amount distributed in the year the Participant
reaches age 70½ will be credited toward the
amount required to be distributed by April 1 of
the following year.
Individual Retirement Custodial Account Agreement
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If the designated IRA beneficiary is not the
Participant's spouse or no IRA beneficiary has
been designated, use the "Minimum Distribution
Incidental Benefit" (MDIB) table found in Q&A-2
of Section 1.401(a)(9)-9 of the Income Tax
Regulations to determine joint life expectancy.
This table assumes that the designated
beneficiary is 10 years younger than the
Participant and recalculates life expectancy
annually. If the designated beneficiary is the
Participant's spouse who is more than 10 years
younger than the Participant, then tables located
in Q&A-3 of Section 1.401(a)(9)-9 for the joint
life expectancy of the Participant's spouse may
be used.
Required minimum distributions must be
calculated separately for each IRA owned by the
Depositor (excluding Roth IRAs). However, the
minimum distribution requirement for this
Prudential IRA may be satisfied by taking a
larger distribution from one or more of any other
IRAs owned by the Depositor (but not from a
Roth IRA).
3. Distributions Upon DeathUpon the death of the Participant the assets
remaining in the Participant's IRA become the
property of the named beneficiary. The
Participant can name one or more primary
beneficiaries and contingent beneficiaries,
including individuals or entities, such as trusts or
the Participant's estate, to receive any balance
remaining in the IRA upon the death of the
Participant. The contingent beneficiaries named
become beneficiaries of the IRA only if no
primary beneficiary survives the Participant, or if
all primary beneficiaries disclaim their interest in
the Account. If no beneficiary has been
designated, or if none of the beneficiaries that
were designated survive the Participant, then
the balance in the IRA will be paid to the
Participant's surviving spouse or, if none, to the
Participant's estate.
The named beneficiary of the IRA may
designate his or her own beneficiary to continue
receiving payments from the IRA after the
named beneficiary's death, if such designation is
permitted by the estate and trust laws of the
named beneficiary's state of residence. After the
named beneficiary's death, the distribution
election in effect at the time of his or her death
must remain in effect.
(a) Distributions Beginning Before Death. If the
individual dies after distribution of his or her
interest has begun, the remaining portion
of such interest will continue to be distributed
at least as rapidly as follows:
(1) If the designated beneficiary is
someone other than the Participant's
spouse, the remaining interest will be
distributed over the remaining life
expectancy of the designated
beneficiary, with such life expectancy
determined using the beneficiary's age
as of his or her birthday in the year
following the year of the Participant's
death, or over the period described in
paragraph (3) below if longer.
(2) If the sole designated beneficiary is
the Participant's surviving spouse, the
remaining interest will be distributed
over such spouse's life or over the
period described in paragraph (3) if
longer. Any interest remaining after
such spouse's death will be distributed
over such spouse's remaining life
expectancy determined using the
spouse's age as of his or her birthday
in the year of the spouse's death, or if
the distributions are being made over
the period described in paragraph (3)
below, over such period.
(3) If there is no designated beneficiary, or
if applicable by operation of
paragraphs (1) or (2) above, the
remaining interest will be distributed
over the Participant's remaining life
expectancy determined in the year of
the Participant's death.
(4) The amount to be distributed each
year under (1), (2) or (3) above,
beginning with the calendar year
following the calendar year of the
Participant's death is the amount
obtained by dividing the value of the
IRA as of the end of the preceding
year by the remaining life expectancy
specified in such paragraph. Life
expectancy is determined using the
Single Life Table in Q&A-1 of Section
1.401(a)(9)-9 of the Income Tax
Regulations.
(5) If distributions are being made to a
surviving spouse as the sole designated
beneficiary, such spouse's remaining life
expectancy for a year is the number in
the Single Life Table corresponding to
such spouse's age in the year, resulting
in recalculation of life expectancy. In all
other cases, remaining life expectancy
for a year is the number in the Single
Life Table corresponding to the
beneficiary's or the Participant's age in
the year specified in paragraphs (1), (2)
or (3) and reduced by 1 for each
subsequent year.
(b) Distributions Beginning After Death. If the
individual dies before distribution of his or
her interest begins, distribution of the
individual's entire interest shall be at least as
rapidly as follows:
(1) If the designated beneficiary is
someone other than the Participant's
surviving spouse, the entire interest
will be distributed, starting by
December 31 of the year following the
year of the Participant's death, over
the remaining life expectancy of the
designated beneficiary, with such life
expectancy determined using the age
of the beneficiary as of his or her
birthday in the year following the year
of the Participant's death, or, if
elected, in accordance with paragraph
(3) below.
(2) If the sole designated beneficiary is
the Participant's surviving spouse, the
entire interest will be distributed,
starting by December 31 of the year
following the year of death of the
Participant (or by the end of the
calendar year in which the Participant
would have attained age 70 ½, if
later), over such spouse's life, or, if
elected, in accordance with paragraph
(3) below. If the surviving spouse dies
before distributions are required to
begin, the remaining interest will be
distributed, starting by December 31
of the year following the calendar year
of the surviving spouse's death, over
the spouse's designated beneficiary's
remaining life expectancy determined
using such beneficiary's age as of his
or her birthday in the year following
the death of the surviving spouse, or,
if elected, will be distributed in
accordance with paragraph (3) below.
If the Participant's surviving spouse
dies after distributions are required to
begin, any remaining interest will be
distributed over his or her remaining
life expectancy determined using the
surviving spouse's age as of his or her
birthday in the year of the surviving
spouse's death.
(3) If there is no designated beneficiary,
or if applicable by operation of
paragraphs (1) or (2) above, the entire
interest will be distributed by
December 31 of the year containing
the fifth anniversary of the death of the
Participant (or of the Participant's
spouse's death in the case of the
surviving spouse's death before
distributions are required to begin
under paragraph (2) above.
(4) The amount to be distributed each
year under paragraph (1) or (2) is the
amount obtained by dividing the value
of the IRA as of the end of the
preceding year by the remaining life
expectancy specified in such
paragraph. Life expectancy is
determined using the Single Life Table
in Q&A-1 of Section 1.401(a)(9)-9 of
the Income Tax Regulations. If
distributions are being made to a
surviving spouse as the sole
designated beneficiary, such spouse's
remaining life expectancy for a year is
a number in the Single Life Table
corresponding to such spouse's age in
the year, resulting in recalculation of
the spouse's life expectancy. In all
other cases, remaining life expectancy
for a year is the number in the Single
Life Table corresponding to the
beneficiary's age in the year specified
in paragraphs (1) or (2) and reduced
by one for each subsequent year.
Individual Retirement Custodial Account Agreement
(c) Distributions under this section are
considered to have begun if the distributions
are made on account of the individual
reaching his or her required beginning date. If
the individual receives distributions prior to
the required beginning date and the individual
dies, distributions will not be considered to
have begun.
(d) The “value” of the IRA includes the amount
of any outstanding rollover, transfer and
recharacterization under Q&As-7 and -8 of
Section 1.408-8 of the Income Tax
Regulations.
(e) If the sole designated beneficiary is the
individual’s surviving spouse, the spouse
may elect to treat the IRA as his or her own
IRA. This election will be deemed to have
been made if such surviving spouse makes a
contribution to the IRA or fails to take
required distributions as a beneficiary.
4. BeneficiariesIf there is no beneficiary designation on file with
the Custodian, or if the designated beneficiary
has not survived the Participant, the Custodian
shall distribute the entire account balance to the
Participant's surviving spouse or, if none, the
Participant's estate.
5. Other Distribution ProvisionIf a distribution is payable from a Custodial
Account to a person with a legal disability or to a
minor, the Custodian may pay the amount
involved to the legal guardian of the individual or,
if none, to an individual who is permitted to
receive such a payment by the laws of the state
in which the disabled individual or minor lives.
Such payment shall fully discharge the Custodian
from further liability on account thereof.
6. LiabilityThe Custodian shall not be responsible for the
purpose, sufficiency or appropriateness of any
distribution. The Custodian is only authorized to
make distributions in accordance with written
instructions of the Participant or, after his or her
death, the Participant's beneficiary or as
otherwise provided for in this Agreement.
ARTICLE VII—POWERS ANDRESPONSIBILITIES OF CUSTODIAN1. In GeneralThe Custodian acts only as a passive Custodian
and shall have only such powers and
responsibilities with respect to the Custodial
Account as are set forth in this Agreement.
2. Written InstructionsAny written instructions required in this
Agreement must be in a form acceptable to the
Custodian. The Custodian shall be fully
protected in acting upon any written instruction
from the Participant or any other notice, request,
consent, certificate or other instrument or paper
believed by it to be genuine or properly
executed, or to take or omit any action, so long
as the Custodian acts in good faith.
3. Investment InstructionsInvestment instructions of the Participant shall
be accepted by the Custodian in accordance
with its established procedures.
4. RecordsThe Custodian shall keep accurate records of all
receipts, investments, distributions,
disbursements, and other transactions with
respect to the Custodial Account.
5. Proxies and Voting of SharesThe Custodian shall deliver or cause to be
delivered to the Participant all notices,
prospectuses, financial statements, proxies, and
proxy solicitations relating to Fund shares held
in the Participant's Custodial Account. Fund
shares held in the Participant's Custodial
Account shall be voted by, or in accordance
with, the instructions of that Participant.
6. AppointmentsThe Custodian may appoint agents, including
PMFS and persons in its employ, to perform its
ministerial acts hereunder, including, but not
limited to, the acceptance and investment of
contributions to the Custodial Account,
acceptance of transfers from other custodians,
maintenance of account records and beneficiary
designations, and collection and remittance of the
Custodian's fees and payment of distributions.
7. IndemnificationAny provision of this Agreement to the contrary
notwithstanding, the Participant shall duly
indemnify and hold harmless the Custodian, its
successors and assigns from any and all liability
which may arise with respect to the Custodial
Account, except liability arising from the gross
negligence or willful misconduct of the Custodian.
ARTICLE VIII—AMENDMENT ANDTERMINATION OF AGREEMENT1. AmendmentThe Participant hereby delegates to the
Custodian the power to amend this Agreement,
in whole or in part, to meet the requirements of
Section 408 of the Code or for any other
purpose. The Participant shall receive a copy of
any such amendment. This Agreement may not
be amended to cause any part of the Custodial
Account or any benefit to be derived therefrom
to be diverted for any purpose other than the
exclusive benefit of the Participant or his
beneficiary unless such amendment is
necessary to comply with the applicable law. No
amendment shall be made that is contrary to
Section 408 of the Code.
2. Termination by ParticipantA Participant may terminate his or her Custodial
Account at any time. The Custodian shall
distribute or transfer the account balance in
accordance with the Participant's written
instructions and in accordance with this
Agreement. The Custodian may reserve such
amount, in cash or in kind, as it may deem
necessary to cover its fees or any other expense
or liability constituting a charge against the
Account. The balance of any such reserve shall
be paid, distributed or transferred upon
satisfaction of any such charge. The Custodian
shall have no duty to ascertain whether any
payment, distribution or transfer as directed by
the Participant is proper under the provisions of
the Code, this Agreement or otherwise.
3. Termination by CustodianThe Custodian may resign as Custodian and
terminate this Agreement at any time upon 30
days' notice to the Participant. If no successor to
the Custodian is designated by the Custodian,
or if such successor is not acceptable to the
Participant, the Participant shall appoint a
qualified successor custodian or trustee. Upon
acceptance by the successor, the Custodian
shall pay, transfer and deliver to the successor
the balance of the Participant's Account after
deducting any fees payable and due. If no
successor has accepted its appointment at the
time the Custodian's resignation is to become
effective, the Custodian reserves the right to
pay, transfer and deliver such amount to the
Participant. The balance of any amount deemed
necessary by the Custodian to be held in
reserve to cover any expense or liability
constituting a charge against the Account shall
not be so paid, transferred or distributed until
satisfaction of such charge.
4. Substitution of CustodianThe Custodian shall substitute another trustee or
custodian in place of the Custodian if the
Custodian receives notice from the
Commissioner of Internal Revenue that such
substitution is required because it has failed to
comply with the requirements of Section 1.408-
2(e) of the Income Tax Regulations.
ARTICLE IX—MISCELLANEOUS1. Alienation and AssignmentThe Participant's Custodial Account balance and
any benefit with respect thereto shall not be
subject to alienation, assignment, garnishment,
attachment, execution or levy of any kind except
as may be required by law.
2. Community PropertyThe terms and conditions of this Agreement
shall be applicable without regard to the
community property laws of any state.
3. Applicable LawThe provisions of this Agreement shall be
interpreted under the laws of the State of New
York.
4. TerminologyMasculine pronouns, whenever used herein,
shall be deemed to include the feminine and
whenever the context of this Agreement so
indicates, the singular shall so read as the plural
and vice versa.14
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Individual Retirement Custodial Account Agreement
5. ArbitrationPlease be aware of the following:
(a) Arbitration is final and binding on the
parties.
(b) The parties are waiving their rights to
seek remedies in court including the
right to jury trial.
(c) Pre-arbitration discovery is generally
more limited than and different from
court proceedings.
(d) The arbitrators' award is not required
to include factual findings or legal
reasoning and any party's right to
appeal or to seek modification of
rulings by the arbitrators is strictly
limited.
(e) The panel of arbitrators will typically
include a minority of arbitrators who
were or are affiliated with the
securities industry.
The Participant agrees that all
controversies that may arise between us
concerning any transaction relating to this
Agreement or the Participant's Account, to
transactions with or for the Participant's Account,
or any breach of this or any other agreement
between us (whether executed or to be
executed within or outside of the United States),
whether entered into prior, on, or subsequent to
the date indicated on the signature page of the
Prudential IRA Application shall be determined
by arbitration.
Such arbitration may be before either the
New York Stock Exchange, Inc. or the National
Association of Securities Dealers, as the
Participant may elect and shall be governed by
the laws of the State of New York. If the
Participant does not make such election by
registered mail addressed to Prudential, at
Prudential's main office within five (5) days after
demand by us that the Participant make such
election, then Prudential may make such
election. Any notice in connection with such
arbitration proceeding may be sent to the
Participant by mail, and the Participant hereby
waives personal service. Judgment upon any
award rendered by the arbitrators may be
entered in any court having jurisdiction, without
notice to the Participant.
No person shall bring a putative or certified
class action to arbitration, nor seek to enforce
any pre-dispute arbitration agreement against
any person who has initiated in court a putative
class action; or who is a member of a putative
class who has not opted out of the class with
respect to any claims encompassed by the
putative class action until: (i) the class
certification is denied; (ii) the class is decertified;
or (iii) the customer is excluded from the class by
the court. Such forbearance to enforce an
agreement to arbitrate shall not constitute a
waiver of any rights under this Agreement except
to the extent stated herein.
9
Individual Retirement Custodial Account Agreement
10
Individual Retirement Account Disclosure Statement
GENERAL
The following information is being provided in
accordance with the requirements of the Internal
Revenue Service (IRS) and should be read
together with the Prudential Mutual Fund
Individual Retirement Custodial Account
Agreement ("IRA") or the Roth Individual
Retirement Custodial Account Agreement ("Roth
IRA"), whichever is applicable. You should
consult your tax adviser for guidance on tax
matters involving your account. The state and
local income tax treatment of your IRA may differ.
Right of RevocationYou have the right to revoke your IRA or Roth
IRA and have the entire amount of your
contribution returned to you by notifying
Prudential Mutual Fund Services LLC (PMFS) in
writing within seven days of the date of
establishment. Your contribution will be refunded
without adjustment for such items as sales
commissions, administrative expenses or
fluctuations in market value. If you should
decide to revoke, your notice of revocation must
be delivered or mailed to:
Prudential Mutual Fund Services LLC
PO Box 9658
Providence, RI 02940
A mailed notice will be deemed given on the
date that it is postmarked or, if sent by certified
or registered mail, on the date of certification or
registration. For additional information on the
circumstances under which you may revoke your
account and the procedure therefore, you may
call PMFS at (800) 225-1852.
As with most other laws that provide
favorable tax treatment, there are certain
restrictions and limitations connected with IRAs.
SETTING UP AN IRAYou can set up an IRA if you have taxable
compensation during the year and have not
reached age 70½ by the end of the year.
Compensation includes wages, salaries, tips,
commissions, fees, bonuses, and taxable
alimony and separate maintenance payments.
You can have an IRA whether or not you
are an active participant in (covered by) any
other retirement plan. However, you may not be
able to deduct all of your contributions if you or
your spouse is covered by an employer
retirement plan.
You may be eligible to set up and
contribute to an IRA for your spouse, whether or
not he or she received compensation. This is
called a spousal IRA and is generally set up for
a nonworking spouse. To contribute to a
spousal IRA:
You must be married at the end of the
tax year.
Your spouse must be under age 70½ at
the end of the tax year.
You must file a joint return for the tax
year.
You must have taxable compensation
for the year.
You cannot set up one IRA that you and
your spouse own jointly. You and your spouse
must use separate IRAs. You cannot roll over
assets from your account to your spouse's
account. However, each spouse may be named
as beneficiary and receive the other spouse's
IRA when that spouse dies.
The most that you can contribute for any
year to your IRA is the smaller of the following
amounts:
Your compensation that you must
include in income for the year, or
The maximum contribution amount
allowed by law. For individuals under
age 50, the maximum contribution
amount allowed by law for 2008 is
$5,000. Individuals age 50 or over may
make additional catch-up contributions
of $1,000. The Disclosure Statement
describes the maximum contribution
amount allowed by law for 2008 and
future years.
After 2008, the limit will be adjusted by the
Secretary of the Treasury for cost of-living
increases under Code section 219(b)(5)(D).
Such adjustments will be in multiples of $500.
If you were a participant in a Section 401(k)
plan of a certain employer in bankruptcy
described in Code Section 219(b)(5)(C), then
the applicable maximum contribution amount
described above is increased by $3,000 for
taxable years beginning after 2006 and before
2010 only. If you make an increased contribution
under this paragraph you cannot also take
advantage of the over age 50 catch-up
contribution described above.
This is the most you can contribute
regardless of whether your contributions are to
one or more IRAs or whether all or part of your
contributions are non-deductible.
However, notwithstanding the dollar limits
on contributions, an individual may make a
repayment of a qualified reservist distribution
described in Section 72(t)(2)(G) during the 2-
year period beginning on the day after the end
of the active duty period or by August 17, 2008,
if later.
The total combined contributions you can
make each year to your IRA and spousal IRA
(discussed earlier) are the smaller of:
Twice the maximum contribution
amount allowed by law, or
Your taxable compensation for the year.
You can divide your IRA contributions
between your IRA and the spousal IRA in any
way you choose, as long as you do not
contribute more than the maximum contribution
amount allowed by law to either IRA.
SETTING UP A ROTH IRAYou can establish a Roth IRA if you meet
certain income limits discussed below. You can
contribute up to the maximum contribution
amount allowed by law annually if you are
single, and twice that amount if
you are married filing jointly (but no more than
the maximum contribution amount allowed by
law to each Roth IRA). Your contributions to a
Roth IRA are not tax deductible, but your
distributions, including earnings on your
contributions, may be tax and penalty free if they
meet certain requirements.
A distribution from a Roth IRA is income tax
free and not subject to the 10% penalty on
premature withdrawals if made at least five
years after you first contribute to your Roth IRA
and made:
Upon death;
After age 59½;
Due to your disability; or
To help purchase your first home or the
first home of your spouse, children,
grandchildren or ancestors (up to
$10,000 during your lifetime).
The amount you can contribute to a Roth
IRA may be limited depending on your income
level. Your maximum contribution is gradually
phased out if you are single and have an
Adjusted Gross Income (AGI) between $95,000
and $110,000, or if you are married filing jointly
and have an AGI between $150,000 and
$160,000. You cannot make any contribution to
a Roth IRA if you are single and your AGI is
$110,000 or more, or if you are married filing
jointly and your AGI is $160,000 or more. After
2006, the dollar amounts above will be adjusted
for cost-of-living increases under Section
408(A)(c)(3). Such adjustments will be in
multiples of $1,000.
You may roll over or convert assets from an
IRA to a Roth IRA if your AGI is $100,000 or
less and you file a single or joint tax return. If
you are married and file separate returns, you
may not roll over IRA assets to a Roth IRA.
Although amounts rolled over from an IRA to a
Roth IRA are not subject to the 10% early
withdrawal tax, they are subject to income tax at
the time of the rollover. For taxable years
beginning after 2009, the income limits in this
paragraph, do not apply to conversions to a
Roth IRA.
The maximum amount that you can
contribute each year to both a Roth IRA and a
traditional IRA (assuming you have established
both types of IRAs) is capped at the lesser of
your earned income or the maximum
contribution amount allowed by law for an
individual and twice that amount for a married
couple filing jointly (the maximum contribution
amount allowed by law each).
WHEN TO CONTRIBUTEYou can make contributions for a year at any time
during the year or by the due date for filing your
return for that year, not including extensions. For
most people, this means that contributions must
be made by April 15.
If you contribute between January 1 and
April 15, you must tell the Custodian or the
Custodian's designee (herein, PMFS) which
year the contribution is for. If you do not specify
which year it is for, the Custodian or the
Custodian's designee must assume, for
reporting to the IRS, that the contribution is for
the year the Custodian or the Custodian's
designee received it.
DEDUCTING CONTRIBUTIONS TO YOUR IRAGenerally, you can take a deduction for the
contributions that you are allowed to make to
your IRA. However, if you or your spouse is
covered by an employer retirement plan at any
time during the year, the allowable IRA
deduction may be less than your allowable
contributions. Your allowable deduction may be
reduced or eliminated, depending on the amount
of your income and your filing status.
The Form W-2, Wage and Tax Statement,
you receive from your employer includes a box
to indicate whether or not you are covered for
the year. The form should have a mark in the
"Pension Plan" box if you are covered.
If you are not certain whether you are
covered by your employer's retirement plan, you
should ask your employer.
Although your deduction for IRA contributions
may be reduced or eliminated because of the AGI
limitation, you can still make contributions to your
IRA of up to the maximum contribution amount
allowed by law (twice that amount for a regular
and a spousal IRA combined) or 100% of
compensation, whichever is less. The difference
between your total permitted contributions and
your total deductible contributions, if any, is your
nondeductible contribution.
As long as your contributions are within the
contribution limits just discussed, none of the
earnings on any contributions (deductible or
nondeductible) will be taxed until they are
distributed.
REPORTING CONTRIBUTIONS TO YOUR IRAYou do not have to itemize deductions to
claim your deduction for IRA contributions.
Deductions are claimed on Form 1040 or
1040A. Form 1040EZ does not provide for IRA
deductions.
By May 31 (or next business day if May 31
is a weekend or holiday) we will mail you Form
5498, or a similar statement from plan sponsors,
showing all the contributions made to your IRA
for the prior year.
You must report nondeductible
contributions, but you do not have to designate
a contribution as nondeductible until you file
your tax return. When you file, you can even
designate otherwise deductible contributions as
nondeductible.
To designate contributions asnondeductible, you must file Form 8606,
Nondeductible IRAs. You must file Form 8606 to
report nondeductible contributions even if you do
not have to file a tax return for the year.17
File Form 8606 if:You made nondeductible contributions
to your IRA for the year, or
You received IRA distributions in the
year and you have at any time made
nondeductible contributions to any of
your IRAs.
If you do not report nondeductible
contributions, all of your IRA contributions will be
treated as deductible. Thus, when you make
withdrawals from your IRA, the amounts you
withdraw will be taxed unless you can show,
with satisfactory evidence, that nondeductible
contributions were made.
If you overstate the amount of your
nondeductible contributions on your Form 8606
for any tax year, you must pay a penalty of $100
for each overstatement, unless it was due to
reasonable cause.
You will have to pay a $50 penalty if you do
not file a required Form 8606, unless you can prove
that the failure was due to reasonable cause.
EXCESS CONTRIBUTIONS TO YOUR IRAGenerally, an excess contribution is the amount
contributed to your IRA(s) that is more than the
smaller of the following amounts:
Your taxable compensation for the year,
or
The maximum contribution amount
allowed by law.
The taxable compensation limit applies
whether your contributions are deductible or
nondeductible.
Contributions to an IRA for the year you
reach age 70½ and any later year are also
excess contributions.
An excess contribution could be the result
of your contribution, your spouse's contribution,
your employer's contribution to a SEP (described
later), or an improper rollover contribution.
If the excess contribution for a year is not
withdrawn by the date your return for the year is
due (including extensions) as explained later,
you are subject to a 6% tax each year on
excess amounts that remain in your IRA at the
end of your tax year. The excess is taxed for the
year of the excess contribution and for each
year after that, until you correct it.
You will not have to pay the 6 percent tax if
you withdraw an excess contribution made
during a tax year and interest or other income
earned on it by the date your tax return for that
year is due, including extensions.
It is your responsibility as the Participant to
determine whether any excess contribution has
been made, the amount of the excess, the
amount of any income earned on the excess
contribution, and for the timely withdrawal or
recharacterization of the appropriate amounts.
You must include in your gross income the
interest or other income that was earned on the
withdrawn excess contribution. Report it on your
return for the year in which the excess
contribution was made. Your withdrawal of
interest or other income may be subject to an
additional 10 percent tax on early withdrawals,
discussed later.
If the total contributions (other than rollover
contributions or transfers) for the year to your
IRA are more than the maximum contribution
amount allowed by law, you can withdraw any
excess contribution after the due date for filing
your tax return for that year, including
extensions, and not include the amount
withdrawn in your gross income. This applies
only to the part of the excess for which you did
not take a deduction. The 6 percent tax applies
to the excess contribution amount that remains
in your IRA at the end of a year (this includes
the year of the contribution and any later year).
If an excess contribution in your IRA is the
result of a rollover, and the excess occurred
because you had incorrect information required
to be supplied by the plan, you can withdraw the
excess contribution.
You can reduce an excess by applying it
against a later year in which less than the
maximum amount allowable is contributed.
This method lets you avoid making a
withdrawal. It does not, however, let you avoid
the 6 percent tax on any excess contributions
remaining at the end of the year.
SIMPLIFIED EMPLOYEE PENSION (SEP)Under a SEP plan, your employer can make
contributions to your IRA up to 25 percent of
your compensation subject to a limit or $4,000
(2008 limit, indexed for inflation), whichever is
less.
Unlike your contributions to IRAs,
contributions to your IRA by your employer are
excluded from your income rather than deducted
from it. Your employer's contributions to your
IRA should not be included in your wages,
unless the contributions are in excess of the
applicable limit.
A SEP may include a salary reduction
arrangement (SARSEP). Under the arrangement,
you can elect to have your employer contribute
part of your pay to your IRA. The tax on the
contribution is deferred. Thus, this choice is
called an elective deferral. No new SARSEP may
be established after 1996.
IRA-TO-IRA ROLLOVERYou may withdraw, tax free, all or part of the
assets from one IRA if you reinvest them within
60 days in another IRA. Because this is a
rollover, you cannot deduct the amount that you
reinvested in the new IRA.
You can take (receive) a distribution from an
IRA and make a rollover contribution (of all or
part of the amount received) to another IRA only
once in any one-year period. The one-year
period begins on the date you receive the IRA
distribution, not on the date you roll it over into
another IRA.11
Individual Retirement Account Disclosure Statement
12
Later distributions from an IRA within a
one-year period will not qualify as rollovers.
They are taxable and may be subject to the 10
percent tax on premature distributions.
You must roll over into a new IRA the same
property you received from your old IRA.
If you withdraw assets from an IRA, you
may roll over part of the withdrawal tax free into
another IRA and keep the rest of it. The amount
you keep will generally be taxable (except to the
extent it is a return of nondeductible
contributions) and may be subject to the 10
percent tax on premature distributions.
Amounts that are required to be distributed
during a particular year under the required
distribution rules are not eligible for rollover
treatment.
Report any rollovers from one IRA to
another IRA on Form 1040 or 1040A.
ROLLOVER FROM EMPLOYER’S PLAN INTOAN IRAIf you or your surviving spouse receives a
distribution, other than a required minimum
distribution, from your employer's qualified
pension, profit-sharing or stock bonus plan,
annuity plan, tax-sheltered annuity plan (403(b)
plan), or governmental 457(b) plan, you may be
able to roll over all or part of it into an IRA or
another eligible retirement plan (employer
qualified plan that accepts rollovers). For taxable
years beginning after 2005, you can do a
rollover from a designated Roth account
described in Code Section 402A; and for taxable
years beginning after 2007 funds from an
eligible retirement plan described in §
402(c)(8)(B). can also be rolled over to a Roth
IRA, subject to the $100,000 income limit
described above (repealed after 2009).
Generally, the distributions that you cannot
roll over are:
The nontaxable part of a distribution;
(does not apply to direct rollover of
contributions from a Roth 401(k) or
Roth 403(b) account to a Roth IRA);
Required minimum distributions;
Substantially equal periodic distributions
paid at least once a year over your
lifetime or life expectancy, or the
lifetimes or life expectancies of you and
your beneficiaries; and
Certain other distributions, such as
returns of excess contributions and
excess deferrals under 401(k) plans.
For eligible rollover distributions that are
reasonably expected to total $200 or more for a
year, your employer's plan must give you the
option to have any part of the distribution paid
directly to an eligible retirement plan. Under this
option, all or part of the distribution can be paid
directly to an IRA or another eligible retirement
plan that accepts rollovers.
If you choose the direct rollover option, no
tax is withheld from any part of the distribution
that is directly paid to the trustee of the other
plan. If any part is paid to you, the payer must
withhold 20 percent of that part's taxable amount.
If an eligible rollover distribution is paid to
you, the full amount is treated as distributed to
you even though what you actually received has
been reduced by the amount of tax withheld.
You must include in income any taxable part of
the full amount (including the part withheld) that
you do not roll over to an IRA or another eligible
retirement plan. The most you can roll over is
the part of the distribution that would be included
in income if it were not rolled over. In other
words, the most you can roll over is the fair
market value of the assets that you receive as
your share from your employer's plan, minus
any nondeductible contributions you made to
your employer's plan.
You must generally complete the rollover
within 60 days after the day you receive the
lump-sum distribution. Under certain hardship
situations, the IRS has the authority to waive
the60-day limit for rollover of contributions. IRS
Revenue Procedure 2003-16 provides guidance
on when the 60-day limit may be waived and
how to request the waiver.
You can make more than one rollover of
employer plan distributions within a year. The
once-a-year limit on IRA-to-IRA rollovers does
not apply to these distributions.
If you are under age 59½ when a
distribution is paid to you, you may have to pay
a 10 percent tax, in addition to the regular
income tax, on the taxable part of the distribution
(including an amount equal to any tax withheld)
that you do not roll over.
AGE 59½ RULEGenerally, you cannot withdraw assets (money
or other property) from your IRA or Roth IRA
without having to pay a 10 percent additional tax
(that is, a 10 percent tax on the taxable
distribution in addition to any regular income tax
that might apply), until you reach age 59½ (and
in the case of a Roth IRA, the account has been
established for five tax years). Use Form 5329
to figure the tax on any premature distributions.
The following exceptions apply to the tax
on premature distributions from IRAs and
Roth IRAs:
Death;
Disability;
Rollovers; and
Annuity distributions.
Additional exceptions may apply.
Under the annuity exception, you can
receive distributions from your IRA that are part
of a series of substantially equal payments over
your life (or your life expectancy), or over the
lives of you and your beneficiary (or your joint
life expectancies), without having to pay the 10
percent additional tax, even if you receive such
distributions before you are age 59½. You must
use an IRS-approved distribution method and
you must take at least one distribution annually
for this exception to apply.
If you receive a distribution from an IRA
that includes a return of nondeductible
contributions, the additional tax does not apply
to the portion of the distribution that is
considered to be nontaxable.
REQUIRED DISTRIBUTIONS—AGE 70½RULE FOR IRAYou must receive the entire balance in your IRA
or start receiving periodic distributions from your
IRA by April 1 of the year following the year in
which you reach age 70½.
You are responsible for determining the
minimum distribution amount and for notifying
the Custodian or the Custodian's designee as to
when the distribution is to be made each year. If
you fail to take a distribution that satisfies the
minimum distribution requirements, we will
assume that you have elected to satisfy
minimum distribution requirements from another
source.
If you choose to receive periodic
distributions, you must receive at least a
minimum amount for each year starting with the
year you reach age 70½ (your 70½ year).
Periodic distributions must be made over one of
the following periods:
Your life and an assumed designated
beneficiary (defined later) who is 10
years younger than you;
The lives of you and your spouse who
is your designated beneficiary and
who is more than 10 years younger
than you;
A period that does not extend beyond
your life expectancy; or
A period that does not extend beyond
the joint life and last survivor
expectancy of you and your
designated beneficiary.
Figure your required minimum distribution
for each year by dividing the IRA account
balance as of the close of business on
December 31 of the preceding year by the
applicable factor. If you have a nonspouse
beneficiary, a spouse beneficiary who is less
than 10 years younger than you, or have not yet
designated a beneficiary, the required distribution
is determined using tables specified in IRS
regulations. If you have a spouse beneficiary
who is more than 10 years younger than you,
alternate tables may be used which provide for a
lower required minimum distribution.
If you have more than one IRA, you must
determine the required minimum distribution
separately for each IRA; however, you can total
these minimum amounts and take the total from
any one or more of the IRAs.
If distributions are less than the required
minimum distribution for the year, you may have
to pay a 50 percent excise tax for the year on
the amount not distributed as required. (This is
referred to as an excess accumulation.)
Individual Retirement Account Disclosure Statement
Use Form 5329 to report the tax on excess
accumulations. If the excess accumulation is due
to reasonable error, and you have taken, or are
taking, steps to remedy the insufficient distribution,
you can request that the tax be excused.
The Required Minimum Distribution rules do
not apply to Roth IRAs during the owner’s lifetime.
How to File the Request. File Form 5329 with your Form 1040. Attach your
explanation for the excess accumulation and
show when you removed the excess or what you
have done that will result in its withdrawal. As of
2008, you are no longer required to remit the tax
prior to requesting a waiver.
If the IRS approves your request, the
excise tax penalty will be waived .
DISTRIBUTIONSIf only deductible contributions were made to
your IRA (or IRAs, if you have more than one)
since it was set up, you have no basis in your
IRA. Because you have no basis in your IRA,
any distributions are fully taxable as ordinary
income when received.
If you made nondeductible contributions to
your IRA, you have a cost basis (investment in
the contract) to the extent of those contributions.
These nondeductible contributions are not taxed
when they are distributed to you. They are a
return of your investment in your IRA.
Once nondeductible contributions have
been made, distributions consist partly of
nondeductible contributions (basis) and partly of
deductible contributions, earnings or gains.
Thus, until you run out of basis, each distribution
is partly taxable and partly nontaxable.
You must complete, and attach to your
return, Form 8606 if you receive an IRA
distribution and, at any time, have made
nondeductible IRA contributions. Using the form,
you will figure the nontaxable distributions and
your total IRA basis.
In figuring your tax, you cannot use the
special averaging or capital gain treatment that
applies to lump-sum distributions from qualified
employer plans. If you receive a distribution from
your IRA, you will receive Form 1099-R,
Distribution From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc., or a similar statement.
BENEFICIARIESThe requirements for withdrawing the IRA funds
differ, generally depending on whether the IRA
owner designated a beneficiary.
If the IRA owner designated a beneficiary,
then that beneficiary can elect to take required
distributions using the beneficiary's age in the
year following the IRA owner's death and
reducing the life expectancy factor by 1 for each
subsequent year.
Exception This rule does not apply if the designated
beneficiary is the owner's surviving spouse who
becomes the new owner by choosing to treat the
IRA as his or her own IRA. In that case, the
surviving spouse can choose to follow the
required distribution rules for IRA owners in the
preceding discussion.
If the owner dies without a designated
beneficiary the entire interest must be distributed
by December 31 of the fifth year following the
year of the owner's death.
PROHIBITED TRANSACTIONSThe tax advantages of using IRAs for retirement
savings can be offset by additional taxes and
penalties if either you or your beneficiary, as the
case may be, engages in a prohibited
transaction described in section 4975 of the
Internal Revenue Code. Some examples of
prohibited transactions with an IRA are:
Borrowing money from it;
Selling property to it;
Receiving unreasonable
compensation for managing it; and
Using it as security for a loan.
Generally, if you or your beneficiary
engages in a prohibited transaction in
connection with your IRA account at any time
during the year, it will not be treated as an IRA
as of the first day of the year. If you or your
beneficiary engages in a prohibited transaction
in connection with your IRA account at any time
during the year, you (or your beneficiary) must
include the fair market value of all (or part, in
certain cases) of the IRA assets in your gross
income for that year. You may also have to pay
the 10 percent tax on premature distributions
discussed earlier.
MISCELLANEOUSSome states and localities may have tax,
community property or other laws that are
different from the federal laws for IRAs. Those
laws are not covered in this Disclosure
Statement.
The Participant's Custodial Account will be
charged fees as set forth in the fee schedule
contained in the Mutual Fund IRA Application.
The fee schedule may be amended from time to
time by the Custodian. In addition to the
custodial fee, the Fund shares held in the
Custodial Account carry their own fees and
expenses, which may include management fees,
Rule 12b-1 fees and/or other fees and
expenses, which are described in detail in each
Fund's prospectus. Individuals who invest in one
or more of the Funds will, as shareholders of
those Funds, bear their pro-rata portion of each
Fund's fees and expenses. Because the
investment of the assets of your IRA is self-
directed by you, it is not possible to guarantee
the growth in value thereof. The value of your
IRA will increase depending upon the amount of
your contributions, the length of time over which
you contribute, and the performance of the
investments you make.
IRS APPROVALThe Prudential Mutual Fund Individual
Retirement Account Custodial Agreement and
the Roth Individual Retirement Custodial
Account Agreement have been approved as to
form by the IRS. The IRS approval does not
represent a determination as to the Account. A
copy of the determination letter is in the back of
this booklet.
ADDITIONAL INFORMATIONYou may obtain additional information about
IRAs in general from any district office of the
IRS or in a copy of IRS Publication 590 entitled
"Individual Retirement Arrangements (IRAs)."
13
Individual Retirement Account Disclosure Statement
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