What is a Custodial Agreement?

The role of a custodian is diverse:

the safekeeping of assets such as

equities and bonds; the settlement of

any purchases and sales of such

securities; and the distribution of

income from such assets.

The custodian is the financial institution responsible for safeguarding a firm’s or an individual’s financial
assets. If you have a retirement plan, then you have a custodian. These institutions do not “own” your
account — they are trustees of assets that are held in your name. These assets may include cash,
bonds, mutual fund shares and stocks.

WHY YOU SHOULD CARE
Your custodial agreement sets the rules by which you will accumulate your savings balance and how that
savings balance will later be distributed to you and/or your heirs. Unfortunately, a custodial agreement can often be a hefty contract full of legalese. Few IRA owners ever take the time to fully review the provisions and exceptions in these critical documents. As a result, you may be surprised to learn that most of these agreements will make the Federal Government the primary beneficiary of your retirement account!

A SOLUTION IS AVAILABLE
Your America’s Tax Solutions retirement distribution specialist is an expert on custodial documents
and can help you create an IRA distribution strategy that protects your nest egg from excessive and
needless taxation. A comprehensive review of your custodial agreement is a crucial step in determining
whether your IRA is an IOU to the IRS.