Form 5305-SA

(Rev. April 2017) 

Department of the Treasury 

Internal Revenue Service 

SIMPLE Individual Retirement Custodial Account 

(Under section 408(p) of the Internal Revenue Code) 

Do not file 

with the Internal 

Revenue Service 

Name of participant Date of birth of participant 

Address of participant Check if transfer SIMPLE IRA . ▶

Check if amendment . . . . ▶

Name of custodian Address or principal place of business of custodian

The participant named above is establishing a savings incentive match plan for employees of small employers individual retirement account 

(SIMPLE IRA) under sections 408(a) and 408(p) to provide for his or her retirement and for the support of his or her beneficiaries after death. 

The custodian named above has given the participant the disclosure statement required by Regulations section 1.408-6. 

The participant and the custodian make the following agreement. 

Article I 

The custodian will accept cash contributions made on behalf of the participant by the participant’s employer under the terms of a SIMPLE IRA plan 

described in section 408(p). In addition, the custodian will accept transfers or rollovers from other SIMPLE IRAs of the participant and, after the 2-year 

period of participation defined in section 72(t)(6), transfers or rollovers from any eligible retirement plan (as defined in section 402(c)(8)(B)) other than a 

Roth IRA or a designated Roth account. No other contributions will be accepted by the custodian.

Article II 

The participant’s interest in the balance in the custodial account is nonforfeitable. 

Article III 

1. No part of the custodial account 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 or common investment fund (within the meaning of section 408(a)(5)). 

2. No part of the custodial account funds may be invested in collectibles (within the meaning of section 408(m)) except as otherwise permitted 

by section 408(m)(3), which provides an exception for certain gold, silver, and platinum coins, coins issued under the laws of any state, and 

certain bullion. 

Article IV 

1. Notwithstanding any provision of this agreement to the contrary, the distribution of the participant’s interest in the custodial account shall 

be made in accordance with the following requirements and shall otherwise comply with section 408(a)(6) and the regulations thereunder, the 

provisions of which are herein incorporated by reference. 

2. The participant’s entire interest in the custodial account must be, or begin to be, distributed not later than the participant’s required 

beginning date, April 1 following the calendar year in which the participant reaches age 701/2. By that date, the participant may elect, in a 

manner acceptable to the custodian, to have the balance in the custodial account distributed in: 

(a) A single sum or 

(b) Payments over a period not longer than the life of the participant or the joint lives of the participant and his or her designated beneficiary. 

3. If the participant dies before his or her entire interest is distributed to him or her, the remaining interest will be distributed as follows. 

(a) If the participant dies on or after the required beginning date and: 

(i) The designated beneficiary is the participant’s surviving spouse, the remaining interest will be distributed over the surviving spouse’s life 

expectancy as determined each year until such spouse’s death, or over the period in paragraph (a)(iii) below if longer. Any interest remaining 

after the spouse’s death will be distributed over such spouse’s remaining life expectancy as determined in the year of the spouse’s death and 

reduced by 1 for each subsequent year, or, if distributions are being made over the period in paragraph (a)(iii) below, over such period. 

(ii) The designated beneficiary is not the participant’s surviving spouse, the remaining interest will be distributed over the beneficiary’s 

remaining life expectancy as determined in the year following the death of the participant and reduced by 1 for each subsequent year, or over 

the period in paragraph (a)(iii) below if longer. 

(iii) There is no designated beneficiary, the remaining interest will be distributed over the remaining life expectancy of the participant as 

determined in the year of the participant’s death and reduced by 1 for each subsequent year. 

(b) If the participant dies before the required beginning date, the remaining interest will be distributed in accordance with paragraph (i) below or, if 

elected or there is no designated beneficiary, in accordance with paragraph (ii) below. 

(i) The remaining interest will be distributed in accordance with paragraphs (a)(i) and (a)(ii) above (but not over the period in paragraph (a)(iii), 

even if longer), starting by the end of the calendar year following the year of the participant’s death. If, however, the designated beneficiary is 

the participant’s surviving spouse, then this distribution is not required to begin before the end of the calendar year in which the participant 

would have reached age 701/2. But, in such case, if the participant’s surviving spouse dies before distributions are required to begin, then the 

remaining interest will be distributed in accordance with paragraph (a)(ii) above (but not over the period in paragraph (a)(iii), even if longer), over such 

spouse’s designated beneficiary’s life expectancy, or in accordance with paragraph (ii) below if there is no such designated beneficiary. 

(ii) The remaining interest will be distributed by the end of the calendar year containing the fifth anniversary of the participant’s death. 

4. If the participant dies before his or her entire interest has been distributed and if the designated beneficiary is not the participant’s surviving 

spouse, no additional contributions may be accepted in the account. 

5. The minimum amount that must be distributed each year, beginning with the year containing the participant’s required beginning date, is 

known as the “required minimum distribution” and is determined as follows. 

Cat. No. 23698C Form 5305-SA (Rev. 4-2017) 

Account number 
Form 5305-SA (Rev. 4-2017) Page 2 

(a) The required minimum distribution under paragraph 2(b) for any year, beginning with the year the participant reaches age 701/2, is the 

participant’s account value at the close of business on December 31 of the preceding year divided by the distribution period in the uniform 

lifetime table in Regulations section 1.401(a)(9)-9. However, if the participant’s designated beneficiary is his or her surviving spouse, the required 

minimum distribution for a year shall not be more than the participant’s account value at the close of business on December 31 of the preceding 

year divided by the number in the joint and last survivor table in Regulations section 1.401(a)(9)-9. The required minimum distribution for a year 

under this paragraph (a) is determined using the participant’s (or, if applicable, the participant and spouse’s) attained age (or ages) in the year. 

(b) The required minimum distribution under paragraphs 3(a) and 3(b)(i) for a year, beginning with the year following the year of the 

participant’s death (or the year the participant would have reached age 701/2, if applicable under paragraph 3(b)(i)) is the account value at the 

close of business on December 31 of the preceding year divided by the life expectancy (in the single life table in Regulations section 

1.401(a)(9)-9) of the individual specified in such paragraphs 3(a) and 3(b)(i). 

(c) The required minimum distribution for the year the participant reaches age 701/2 can be made as late as April 1 of the following year. The 

required minimum distribution for any other year must be made by the end of such year. 

6. The owner of two or more IRAs (other than Roth IRAs) may satisfy the minimum distribution requirements described above by taking from 

one IRA the amount required to satisfy the requirement for another in accordance with the regulations under section 408(a)(6). 

Article V 

1. The participant agrees to provide the trustee with all information necessary to prepare any reports required by sections 408(i) and 

408(l)(2) and Regulations sections 1.408-5 and 1.408-6. 

2. The custodian agrees to submit to the Internal Revenue Service (IRS) and participant the reports prescribed by the IRS. 

3. The custodian also agrees to provide the participant’s employer the summary description described in section 408(l)(2) unless this SIMPLE 

IRA is a transfer SIMPLE IRA. 

Article VI 

Notwithstanding any other articles which may be added or incorporated, the provisions of Articles I through III and this sentence will be 

controlling. Any additional articles inconsistent with sections 408(a) and 408(p) and the related regulations will be invalid. 

Article VII 

This agreement will be amended as necessary to comply with the provisions of the Code and the related regulations. Other amendments may 

be made with the consent of the persons whose signatures appear below. 

Article VIII 

Article VIII may be used for any additional provisions. If no other provisions will be added, draw a line through this space. If provisions are 

added, they must comply with applicable requirements of state law and the Internal Revenue Code and may not imply that they have been reviewed or 

pre-approved by the IRS. 

Participant’s signature Date 

(If an individual other than the participant signs this form for the participant, indicate the individual’s relationship to the participant.) 

Custodian’s signature Date 

Witness’ signature 

(Use only if signature of the participant or the custodian is required to be witnessed.) 

Date 

General Instructions 

Section references are to the Internal 

Revenue Code unless otherwise noted. 

Purpose of Form 

Form 5305-S is a model custodial account 

agreement that meets the requirements of 

sections 408(a) and 408(p). However, only 

Articles I through VII have been reviewed by 

the IRS. A SIMPLE individual retirement 

account (SIMPLE IRA) is established after the 

form is fully executed by both the individual 

(participant) and the custodian. This account 

must be created in the United States for the 

exclusive benefit of the participant and his or 

her beneficiaries. 

Do not file Form 5305-S with the IRS. 

Instead, keep it with your records. 

For more information on SIMPLE IRAs, 

including the required disclosures the 

custodian must give the participant, see 

Pub. 590-A, Contributions to Individual 

Retirement Arrangements (IRAs); Pub. 590-B,

Distributions from Individual Retirement 

Arrangements (IRAs); and Pub 560,

Retirement Plans for Small Business (SEP, 

SIMPLE, and Qualified Plans).

Definitions 

Participant. The participant is the person 

who establishes the custodial account. 

Custodian. The custodian must be a bank or 

savings and loan association, as defined in 

section 408(n), or any person who has the 

approval of the IRS to act as custodian. 

Transfer SIMPLE IRA 

This SIMPLE IRA is a “transfer SIMPLE IRA” 

if it is not the original recipient of 

contributions under any SIMPLE IRA plan. 

The summary description requirements of 

section 408(l)(2) do not apply to transfer 

SIMPLE IRAs. 

Specific Instructions 

Article IV. Distributions made under this 

article may be made in a single sum, periodic 

payment, or a combination of both. The 

distribution option should be reviewed in the 

year the participant reaches age 701/2 to 

ensure that the requirements of section 

408(a)(6) have been met. 

Article VIII. Article VIII and any that follow it 

may incorporate additional provisions that are 

agreed to by the participant and custodian to 

complete the agreement. They may include, 

for example, definitions, investment powers, 

voting rights, exculpatory provisions, 

amendment and termination, removal of the 

custodian, custodian’s fees, state law 

requirements, beginning date of distributions, 

accepting only cash, treatment of excess 

contributions, prohibited transactions with the 

participant, etc. Attach additional pages if 

necessary. 

Form 5305-SA (Rev. 4-2017)