Traditional IRA Custodial Agreement - Effective 2026

Printable PDF Version - https://ndtco.com/2026-traditional-custodial-agreement/

Form 5305-A (Rev. April 2017) 
Department of the Treasury 
Internal Revenue Service DO NOT FILE with the Internal Revenue Service

The depositor (herein referred to as “Depositor”) is establishing, or has had established on their behalf, a traditional individual retirement account (“IRA”) under Internal Revenue Code (“IRC”) section 408(a). New Direction Trust Company, a limited purpose non-fiduciary trust company chartered under the laws of the state of Kansas (herein referred to as “NDTCO” or “Custodian”), is hereby contracted by the Depositor and is named herein as the custodian for the Depositor.

Depositor’s account may be referred to herein as the “Custodial Account,” and assets held in the Custodial Account may be referred to herein as “Custodial Assets.” All Custodial Assets shall be titled in the name of NDTCO or its designee, which includes New Direction IRA, as administrator (herein referred to as “NDIRA” or “Administrator,” as more fully described below) and shall evidence the fact that the asset is being held by NDTCO, the Administrator, or such other designee for the benefit of the Depositor hereunder.

The Custodian named above has given the Depositor the disclosure statement required by Treasury Regulations section 1.408-6.The Depositor and the Custodian make the following agreement (this “Agreement” or “Account Agreement”). Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Master Definitions supplied herewith, as the same may be amended from time to time. 

Article I

Except in the case of a rollover contribution described in section 402(c), 403(a)(4), 403(b)(8), 
408(d)(3), or 457(e)(16), an employer contribution to a simplified employee pension plan as 
described in section 408(k) or a recharacterized contribution described in section 408A(d)(6), the custodian will accept only cash contributions up to $5,500 per year for 2013 through 2017. For individuals who have reached the age of 50 by the end of the year, the contribution limit is increased to $6,500 per year for 2013 through 2017. For years after 2017, these limits will be increased to reflect a cost-of-living adjustment, if any.

Article II

The depositor’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 
depositor’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 grantor’s entire interest in the custodial account must be, or begin to be, distributed not later than the depositor’s required beginning date, April 1 following the calendar year in which the depositor reaches age 70½. By that date, the depositor 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 depositor or the joint lives of the depositor and his or her designated beneficiary.

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

(a)If the depositor dies on or after the required beginning date and:
(i)The designated beneficiary is the depositor’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 depositor’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 depositor 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 depositor as determined in the year of the depositor’s death and reduced by 1 for each subsequent year.

(b)If the depositor 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 depositor’s death. If, however, the designated beneficiary is the depositor’s surviving spouse, then this distribution is not required to begin before the end of the calendar year in which the depositor would have reached age 701/2. But, in such case, if the depositor’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 depositor’s death.

4.If the depositor dies before his or her entire interest has been distributed and if the designated beneficiary is not the depositor’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 depositor’s required beginning date, is known as the “required minimum distribution” and is determined as follows.

(a)The required minimum distribution under paragraph 2(b) for any year, beginning with the year the depositor reaches age 70½, is the depositor’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 depositor’s designated beneficiary is his or her surviving spouse, the required minimum distribution for a year shall not be more than the depositor’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 depositor’s (or, if applicable, the depositor 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 depositor’s death (or the year the depositor would have reached age 70½, 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 depositor reaches age 70½ 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 traditional IRAs may satisfy the minimum distribution requirements described above by taking from one traditional IRA the amount required to satisfy the requirement for another in accordance with the regulations under section 408(a)(6).

Article V

1.The depositor agrees to provide the custodian with all information necessary to prepare any 
reports required by section 408(i) and Regulations sections 1.408-5 and 1.408-6.

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

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 section 408(a) 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 hereon.

Article VIII

1. Administrator for the Depositor’s Account 
The Custodian (New Direction Trust Company, or “NDTCO”) has appointed an “Administrator” to act as agent for Custodian for the purpose of performing certain administrative or other custodialrelated services with respect to the account created hereunder (the “Account” or “Custodial Account”) for which the Custodian otherwise has or may have responsibility under this agreement (this “Custodial Account Agreement”). Depositor acknowledges and consents to such delegation. Depositor further acknowledges and agrees that all limitations on powers or duties (to or in respect of the Depositor or otherwise), and all waivers, releases, indemnifications and other protections of every kind and description given to or for the benefit of the Custodian by or on behalf of the Depositor or any other person in this Custodial Account Agreement or in any other instrument executed and delivered in respect of the Custodial Account shall apply equally to and for the benefit of the Administrator. The Administrator may perform duties on behalf of the Custodian which include, but are not limited to, executing applications or adoption agreements, transfers, stock powers, escrow accounts, purchase agreements, notes, deeds, conveyances, liens, placing assets or liabilities in the Administrator’s name for the benefit of the Depositor, depositing contributions and income, paying liabilities and distributions, and government reporting for Depositors who have established a Custodial Account with NDTCO. The initial Administrator appointed by NDTCO is New Direction IRA, Inc. NDTCO reserves the right, in its sole discretion, to change the Administrator and will only do so upon 30 days’ notice to the Depositor.

2. Non-Fiduciary Passive Custodian
By entering into this Custodial Account Agreement, the Depositor creates a tax advantaged 
account in which NDTCO acts as a directed, passive, non-fiduciary custodian, subject to this 
Custodial Account Agreement, and executes transactions solely at the direction of the Depositor or the Depositor’s authorized agent. Additionally, NDTCO has no authority to take any action regarding Depositor’s investments acquired by, or held in, the Custodial Account without the express direction of the Depositor or an agent designated by the Depositor in accordance herewith. Depositor exercises exclusive direction and control over investment decisions for the Custodial Account. Depositor acknowledges that self-directed IRAs necessarily involve dual roles in that Depositor exercises exclusive direction and control over investment decisions for the custodial account and bears sole responsibility for such decisions while also receiving the benefits under the plan as beneficiary. The relationship between NDTCO and Depositor is confined to NDTCO’s execution of the transactions selected by Depositor. NDTCO has absolutely no responsibility to advise Depositor regarding the wisdom of the Depositor’s investment choices. NDTCO assumes no responsibility for rendering advice with respect to the investment or reinvestment of the Custodial Account, shall not be liable for any Losses (as defined below) which result from the Depositor’s exercise of control over the Custodial Account, and shall not have any duty to question Depositor’s investment directives or those made on Depositor’s behalf. As used in this Custodial Account Agreement, the term “Loss” or “Losses” means any and all claims, damages, liabilities, costs, expenses, settlement payments, or judgments, including reasonable attorneys’ fees and costs, incurred in connection with the Custodial Account, the Custodial Assets, this Custodial Account 
Agreement or the Account Agreement executed by Depositor and Custodian in connection 
herewith (the “Account Agreement”) or any matter related thereto. Depositor recognizes and agrees that certain investment directions may result in penalties, charges, other Losses, potential distribution delays, loss of equity or other consequences adverse to the Custodial Account or Custodial Assets, and NDTCO is fully relieved from responsibility therefor. Notwithstanding the foregoing, NDTCO reserves the right to refuse to fund investments that are not administratively feasible and/or would place an undue financial or administrative burden on it or on the Administrator. 

2A. Prohibited Transactions, Disqualified Persons 
Depositor expressly affirms the following, on which NDTCO and Administrator are relying: (i) No investment directed for the Custodial Account, and no use of any Custodial Asset, constitutes or will constitute a prohibited transaction under Internal Revenue Code §4975 or any successor provision. (ii) No Custodial Asset will be used directly or indirectly for the benefit of a “disqualified person,” including the Depositor, any family member, fiduciary, or related entity. (iii) Depositor has not relied and will not rely on NDTCO or the Administrator to determine compliance with prohibited transaction rules. Instead, Depositor affirms that Depositor has engaged independent legal counsel or tax advisors to assess whether any investment is a prohibited transaction, and that NDTCO and Administrator may rely upon representations from the Depositor that an investment is not a prohibited transaction. (iv) NDTCO and Administrator shall have not duty to investigate, monitor, or verify compliance with prohibited transaction rules and may conclusively rely on depositor’s representations. Discovery or awareness by NDTCO or the Administrator of facts that could indicate a potential prohibited transaction shall not impose any duty to act, advise, or remediate, and Depositor releases NDTCO and the Administrator from any duties associated with the Depositor’s decision to execute a potential prohibited transaction. 

2B. Administrative Feasibility, Asset Reconciliations 
NDTCO reserves the right, in its sole discretion and without assuming any fiduciary obligation, to; (a) decline to accept, hold, or process transactions involving any Custodial Asset or any asset class deemed administratively infeasible, unduly burdensome, or operationally impracticable; (b) impose additional documentation, valuation, or procedural requirements on any Custodial Asset or asset class; or (c) require the orderly transfer or liquidation of Custodial Assets that NDTCO determines it can no longer administer. Such determinations may be made based on a specific Custodial Asset or on asset-class basis, and such determinations shall not constitute any investment advice, recommendation, or determination of asset suitability.

3. No Duty to Monitor Contributions                                                                                            NDTCO shall not be responsible in any way for determining the amount or validity of the rollover contribution from any retirement plan. NDTCO shall not be responsible for determining whether contributions to the Custodial Account are within limits prescribed by the then-prevailing IRC or for any excise tax that may be imposed for excess contributions. Further, NDTCO shall not be responsible for ensuring that contributions are made to the Custodial Account.

4. Agent/Representative 
By notifying NDTCO on a form it designates, and with any supporting documentation acceptable to it, the Depositor may delegate investment responsibility for the Custodial Account to an investment adviser registered under the Investment Advisers Act of 1940 or another authorized agent. NDTCO may rely on the Depositor’s representation that such agent is at all times authorized and otherwise qualified to act in that capacity. Depositor further represents that the agent possesses the authority to direct the investment and/or manage the trading of the Custodial Account until three Business Days (defined as any day other than a Saturday, Sunday, or federal holiday on which banking institutions in the State of Kansas are open for business) following the date that (a) NDTCO receives written notification from Depositor, delivered in accordance with the requirements herein, that such agent’s authority has been terminated and that the Depositor has appointed another agent, or that the Depositor has assumed sole responsibility for directing investment of the Custodial 
Account and Custodial Assets; or (b) NDTCO receives formal written notification of the death of the Depositor. The Depositor specifically acknowledges that any agent the Depositor appoints is exclusively the Depositor’s agent and is not in any way an agent of NDTCO. The Depositor further acknowledges that NDTCO does not endorse or perform any due diligence with respect to the Depositor’s selection of an agent. By appointing an agent pursuant to this paragraph, the Depositor acknowledges and confirms that it is not relying on any representation by NDTCO regarding the Depositor’s selected agent. In connection with certain investments, the Depositor may execute certain ancillary documents. If the Depositor has agreed to provide services or has appointed an agent to provide services pursuant to such ancillary documents, NDTCO shall not have any responsibility for the performance or non-performance of those services.

5. Registration of Custodial Assets 
All Custodial Assets shall be registered in the name of NDTCO or its designee (including the 
Administrator) or of a suitable nominee. The same nominee may be used with respect to assets of other investors whether held under agreements like this one or in any capacity whatsoever. However, each depositor's account shall be a separate and distinct account maintained by NDTCO, and the assets thereof shall be held by NDTCO in individual or bulk segregation. Depositor acknowledges that the registered owner of any asset held in the Custodial Account is NDTCO or its designee as Custodian of the Custodial Account, and not Depositor individually. Therefore, Depositor agrees not to invest any funds into or receive or withdraw any funds from the Custodial Account other than through NDTCO, and NDTCO is authorized to take any action necessary to provide that any investment directed to be purchased by Depositor, or Depositor’s authorized agent, is correctly documented as being purchased in and owned by the Custodial Account.

6. Enterprise Risk Assessment Only; No Due Diligence on Custodial Assets or Asset 
Provider(s) 
NDTCO may periodically conduct an enterprise risk assessment. Such assessments and 
integrations are conducted solely for NDTCO administrative feasibility and operational purposes and do not constitute due diligence, monitoring, or oversight of any asset, asset class, authorized agent, sponsor, or service provided. This assessment is to evaluate the risks associated with NDTCO’s operations and to analyze NDTCO’s business goals and the risks impacting them only and shall not be deemed a due diligence review of the Depositor’s chosen Custodial Asset, Custodial Asset provider(s) or sponsors, authorized agent, or service providers. Depositor specifically acknowledges that this review is for the benefit of NDTCO’s assessment of administrative feasibility only, and that the Depositor is not entitled to rely, and is in no way relying, on such review for any reason.

7. No Liability for Third-Party Conduct 
NDTCO shall not be liable for the acts or omissions of any asset sponsor or of any former trustee, custodian, or administrator (any former trustee, custodian, administrator, plan sponsor or other person performing a similar function, a “Predecessor”), or any of their respective agents, or of the Depositor or any of the Depositor’s agents. NDTCO shall not have any responsibility or liability for any loss of income or of capital or any other Losses relating to any investment, or to the sale or exchange of any asset that a Predecessor, the Depositor, or any agent of Depositor directs NDTCO to make or that is made or held under this Custodial Account Agreement or the Account Agreement, including without limitation the initial investment of the Custodial Assets at the direction of a Predecessor, if applicable. NDTCO is not, and will not act as, an investment advisor to the Depositor or in respect of the Custodial Account and has no duty to question, review, or investigate the Depositor’s or the Depositor’s agents’ directions regarding the purchase, retention, or sale of any asset for the Custodial Account. NDTCO does not assume or incur any liability by reason of, or have any duty or responsibility to inquire into, or take action with respect to, any acts performed or omitted or to be performed by any asset sponsor or by any Predecessor that has transferred any assets to the Custodian or the Custodial Account. Where the Depositor and NDTCO have agreed that the Depositor may give investment instructions for execution directly to a broker, any issues that arise with the broker shall be handled directly by the Depositor. NDTCO shall not be 
liable to the Depositor for any statements, representations, actions or inactions of any investment sponsor, authorized agent, broker, or other salesperson or principal in respect of any investment purchased for the Custodial Account, and such sponsors, authorized agents, brokers, or other salespersons or principals are not agents of NDTCO and have no authority to speak or act on behalf of NDTCO. NDTCO shall not be liable to the Depositor for any statements, representations, actions or inactions of any agent of the Depositor.

8. Depositor’s Representations 
Depositor represents and warrants that any information or instruction given or that will be given by or on behalf of Depositor with respect to the Custodial Account is complete and accurate. Further, Depositor agrees that any directions Depositor or Depositor’s agent(s) give NDTCO, or any actions Depositor or Depositor’s agent(s) take hereunder will be proper under this Custodial Account Agreement and that NDTCO is entitled to rely upon any such information or directions without further inquiry. NDTCO shall not be responsible for Losses of any kind that may result from such directions to NDTCO or from Depositor’s actions, or the Depositor’s agent’s actions, or failures to act of either or both. Depositor agrees to reimburse NDTCO for any Losses that NDTCO may incur as a result of such directions, actions, or failures to act. Without limiting the generality of the foregoing, Depositor and each beneficiary agree to be responsible for all tax consequences arising from contributions to and distributions from the Custodial Account and acknowledge that no tax, legal, or financial advice has been provided by or on behalf of NDTCO or the Administrator.

9. Reliance 
NDTCO and the Administrator will not be required to determine the validity of any receipt, affidavit, notice or other paper, document or agreement delivered or required to be delivered to it under this Custodial Account Agreement, and NDTCO and the Administrator are relieved of any liability or responsibility for the sufficiency thereof as long as it purports on its face to be such receipt, affidavit, notice or other paper, document or agreement and purports to be executed by such person as required by this Custodial Account Agreement, the Account Agreement, or under applicable law.

10. Fraud Liability; Lost or Stolen Login, Password or Identity Theft 
(a) Depositor agrees to safeguard Depositor’s Custodial Account information, including the 
Depositor's username and password. The Depositor agrees to notify NDTCO and the Administrator immediately, but not later than 48 hours after, any loss or compromise of login credentials or password, compromise of email or Custodial Account information, or other circumstances that may allow any unauthorized person to gain access to the Custodial Account or Custodial Assets. The Depositor agrees to indemnify NDTCO and the Administrator and hold them harmless from and against any and all Losses sustained as a result of the Depositor’s delayed notification and for any Losses related to the unauthorized use of or access to the Custodial Account or Custodial Assets arising from or related to any compromise described in this section. NDTCO and the Administrator shall not be liable for any losses, damages, or claims arising out of or relating to the unauthorized access to or use of the account.

(b) Duty to Safeguard Credentials. Depositor is solely responsible for safeguarding all login 
credentials, authentication factors, devices, email accounts, and all other mechanisms associated with accessing the Custodial Account. Depositor acknowledges that compromise of any such credentials may permit unauthorized access to the Custodial Account, for which Depositor alone bears responsibility for any Losses.

(c) Notice requirement. Depositor must notify NDTCO and/or the Administrator in writing of any suspected or actual unauthorized access, transaction, instruction, credential compromise, identity theft, or other security incident affecting the Custodial Account immediately upon discovery, and in no event later than 48 hours days after such discovery (“Security Notice”). Oral notice, standing alone, shall not be sufficient. 

(d) Allocation of Losses.

(i) Depositor shall bear all losses arising from or related to unauthorized activity occurring prior to NDTCO’s or the Administrator’s actual receipt of Security Notice. 

(ii) Following NDTCO’s or the Administrator’s actual receipt of Security Notice, NDTCO and the 
Administrator shall use commercially reasonable efforts to prevent further unauthorized activity but do not guarantee prevention of additional Losses. 

(iv) NDTCO and the Administrator shall not be responsible for any losses resulting from credential compromise, social engineering, phishing, malware, SIM-swap attacks, or access via Depositor’s email, devices, or third-party service providers. 

(v) Cyber Events. Depositor acknowledges that cybersecurity incidents, including third-party 
platform breaches, cloud services outages, or payment network companies, may occur despite commercially reasonable safeguards. NDTCO and the Administrator do not insure Custodial 
Assets against cyber-related losses and make no representation that such losses will be 
recoverable. 

(vi) Recovery efforts. Upon receipt of a Security Notice, NDTCO or the Administrator may, but are not obligated to, attempt recalls, reversals, freezes, or other recovery 
actions deemed commercially reasonable. Depositor acknowledges that recovery efforts may be unsuccessful and shall not create any duty or liability on the part of NDTCO or the Administrator. 

(vii) Indemnification. Depositor agrees to indemnify and hold harmless NDTCO and the 
Administrator from any losses arising from unauthorized activity, except to the extent caused solely by NDTCO’s or the Administrator’s gross negligence or willful misconduct.

11. Designation of Beneficiary 
(a) Except as may be otherwise required by applicable law, in the event of Depositor's death, the balance in the Custodial Account shall be paid to the beneficiary or beneficiaries designated by Depositor on a beneficiary designation form acceptable to and filed with NDTCO. Depositor may change Depositor's beneficiary or beneficiaries at any time by filing a new beneficiary designation with NDTCO. If no beneficiary designation is in effect, if none of the named beneficiaries survive Depositor, or if NDTCO cannot locate any of the named beneficiaries after reasonable search, any balance in the Custodial Account will be payable to Depositor's estate or as otherwise may be required under applicable law.

(b) If NDTCO permits, in the event of Depositor's death, any beneficiary may name a subsequent receive the balance of the Custodial Account to which such beneficiary is entitled 
upon the death of the original beneficiary by submitting a subsequent beneficiary designation form acceptable to and filed with NDTCO. Payments to such subsequent beneficiary shall be distributed in accordance with the payment schedule applicable to the original beneficiary or more rapidly if the subsequent beneficiary requests. In no event can any subsequent beneficiary be treated as a designated beneficiary of the Depositor. The preceding sentence shall not apply with respect to the subsequent beneficiary, if any, designated by the original spouse beneficiary where the Depositor dies before their required beginning date. In this case, the original spouse beneficiary is treated as the depositor. If the balance of the Custodial Account has not been completely distributed to the original beneficiary and such beneficiary has not named a subsequent beneficiary or no named subsequent beneficiary is living on the date of the original beneficiary's death, such balance shall be payable to the estate of the original beneficiary.

12. Death Benefit Provisions 
(a) If the Depositor dies before their required beginning date and the beneficiary does not select a method of distribution described in Article IV by the December 31st following the year of the Depositor's death, then distributions will be made pursuant to the single life expectancy of the Designated Beneficiary determined in accordance with IRS regulations. However, no payment will be paid until the beneficiary provides NDTCO with a proper distribution request acceptable to NDTCO and such other documentation as it may require. A beneficiary may at any time request a complete distribution of their remaining interest in the Custodial Account. NDTCO reserves the right to require a minimum balance in the Custodial Account to make periodic payments therefrom.

(b) If Depositor dies on or after their required beginning date, distribution shall be in accordance with Article IV. However, no payment will be paid until the beneficiary provides NDTCO with a proper distribution request acceptable to NDTCO and any other documentation that NDTCO may require. A beneficiary may at any time request a complete distribution of their remaining interest in the Custodial Account. NDTCO reserves the right to request a minimum balance in the Custodial Account to make periodic payments therefrom.

(c) If for any reason NDTCO is not certain as to who is entitled to receive all or part of the Custodial Assets, NDTCO reserves the right to withhold any payment from the Custodial Account, to request a court ruling to determine the disposition of the Custodial Assets, and to charge the Custodial Account for any expenses (including reasonable attorneys’ fees) incurred in obtaining such legal determination.

13. Custodian and Administrator’s Fees and Expenses 
(a) The Depositor agrees to pay NDTCO all fees specified in the then-current published fee 
schedule (the “Fee Schedule”) for establishing and maintaining the Custodial Assets and the 
Custodial Account, and for executing any transactions initiated with respect thereto, including any fees for distributions from, transfers from, and terminations of the Custodial Account. Depositor acknowledges that Depositor has had the opportunity to review the current Fee Schedule for the Custodial Account. The Custodian may amend the Fee Schedule by providing notice as provided herein. Any such amendment shall be deemed effective on the date stated in such amendment, unless the Depositor objects thereto by notifying the Custodian, in writing, within thirty (30) calendar days from the date the notice of amendment is delivered or deemed delivered, in which case, the Depositor and Custodian agree that the Custodial Account will be closed. If the Depositor does not object in writing within thirty (30) calendar days from the date the notice is delivered or deemed delivered, the Depositor shall be deemed to have consented to such Fee Schedule amendment. Notice of amendments may be provided electronically, provided that Depositor has consented to electronic delivery thereof. Otherwise, notice of amendments will be sent to Depositor at the address designated by Depositor for such purpose. 

(b) The Depositor agrees to pay any expenses incurred by the Custodian in the performance of its contractual responsibilities in connection with the Custodial Account. Such expenses include, but are not limited to, expenses incurred in connection with any transactions effectuated in the Custodial Account, administrative expenses, such as legal and accounting fees, valuation fees (including any such fees for services from a qualified independent third-party appraiser), fees incurred by the Administrator, and any taxes of any kind whatsoever that may be levied or assessed with respect to the Custodial Account or the Custodial Assets.

(c) All fees and other outstanding expenses are due prior to the execution of any transaction in the Custodial Account and shall be collected either from the Custodial Assets or charged to the credit card or bank account designated by the Depositor for such purposes. Depositor specifically authorizes Custodian to charge such card or debit such bank account, as applicable, any and all fees and expenses as provided herein on the NDTCO Fee Schedule: https://ndtco.com/fees/. All fees are due upon invoicing or, if earlier, upon consummation of any transaction pursuant to which such fees and expenses are assessed. Custodian reserves the right to refuse to process any requested transactions unless payment or satisfactory provision for payment of fees and expenses is made in advance thereof. If Depositor’s designated payment method fails, NDTCO reserves the right to apply other available payment methods to pay fees and expenses without prior notice to Depositor. Depositor acknowledges that credit card fees and other terms in accordance with the card issuer’s agreement governing use of a credit card account apply to charges by the Custodian. In the case of a bank account, there may be charges or fees involved with debiting such bank account pursuant to the terms that govern the use of the bank account. If such credit card account expires or otherwise ceases to be valid, or if the designated bank account is closed or unavailable for any reason, the Depositor shall immediately so inform the Custodian and shall provide the Custodian with either a valid credit card account or the required information to debit another of the Depositor’s bank accounts, and the Custodian will be authorized to charge or debit such credit card account or bank account for all fees and reimbursable expenses. If a charge or debit cannot be consummated, the Custodian may take such amount from the cash then held in the Custodial Account or take any other authorized action herein. Depositor specifically acknowledges that Custodial Assets may be liquidated, without notice, for any outstanding fee or expense that has not been paid when due. Fees and expenses hereunder, including the Annual Administration Fees, are charged and due based upon the services provided and are not dependent upon the Custodial Assets’ performance. Invoices and fees will be deemed accepted by the Depositor if the Depositor does not object in writing within 30 days of invoice date.

(d) If any fees or expenses are not paid within thirty (30) days of the date when due hereunder, NDTCO may avail itself of all remedies here under or under applicable law, including closing the Custodial Account. Any Custodial Asset distributed directly to the Depositor as part of closing the Custodial Account will be reported to the IRS and may subject the Depositor to taxes and/or penalties. Custodial Accounts with past due fees or expenses will continue to incur fees as provided in the Fee Schedule until Depositor closes the Custodial Account, or until NDTCO closes the Custodial Account and/or resigns.

14. Miscellaneous Expenses
In addition to those expenses specifically set out in this Custodial Account Agreement, Depositor agrees to pay any and all expenses incurred by NDTCO in connection with the investment of the Custodial Account, including expenses of preparation and filing any returns and reports with regard to unrelated business income, including taxes and estimated taxes, as well as any transfer taxes incurred in connection with the investment or reinvestment of the Custodial Assets. Depositor also agrees to pay all expenses related to the valuation of the Custodial Account.

15. Cash Management
(a) Depositor hereby acknowledges and agrees that NDTCO will deposit all cash within the 
Custodial Account for which the Depositor has not provided any investment direction (“Undirected Cash)” into pooled demand deposit accounts or certificates of deposit at one or more FDIC or other United States government insured institutions not affiliated with NDTCO, or invest such Undirected Cash into United States government securities or in securities that are insured or guaranteed by the United States government, pending further investment direction by Depositor. Depositor authorizes NDTCO to transfer any such Undirected Cash into any such account or investment without any further approval or direction by the Depositor.

(b) Depositor acknowledges and agrees that NDTCO shall be entitled to receive compensation 
equal in amount to all income that is generated from any Undirected Cash which has been 
deposited or invested by NDTCO as provided in the immediately preceding Section 15(a). The 
compensation is paid by each eligible institution on aggregate deposits of Undirected Cash, and varies from eligible institution to eligible institution, based on the prevailing interest rate 
environment. The cash management activities for which NDTCO is compensated hereunder 
include, but are not limited to, account maintenance, depository bank selection, transaction 
processing, sub-accounting, record keeping, and other services (collectively, the “Cash 
Management Program”) performed under the terms of the Account Agreement and this Custodial Account Agreement in connection with such Cash Management Program. The Depositor agrees that this compensation may be retained by NDTCO for services provided in respect of the Cash Management Program. NDTCO retains the right in its sole discretion but does not have the obligation to reduce this fee by rebating a portion into the Custodial Account. 

(c) Depositor acknowledges and agrees that NDTCO administers and manages Undirected Cash with the objectives of preserving capital, maximizing safety and the availability of deposit insurance up to applicable limits, and maintaining timely liquidity. In doing so, NDTCO may allocate Undirected Cash among one or more eligible depository institutions and short-duration instruments consistent with NDTCO’s cash management policies. 
Depositor further acknowledges that (i) interest earned or undirected Cash is credited to the 
Depositor’s Custodial Account; (ii) is compensated by Cash Management Fees charged to the 
Depositor for administering the program; (iii) NDTCO does not receive compensation from eligible depository institutions in connections with such placements. 
NDTCO assumes the operational, liquidity and administrative risks of the Cash Management 
Program, including obligations associated with meeting liquidity needs and fees, charges, or 
penalties imposed under agreements with eligible depository institutions. To the extent applicable law or regulatory guidance requires current fair market value recognition of program holdings within the Custodial Account, NDTCO rather than the depositor will bear any shortfall between such current fair market value and the dollar amount allocated to Undirected Cash, so that amount available to the Depositor as Undirected Cash are not reduced below the dollar amount contributed or allocated to Undirected Cash (net fees, distributions, and other adjustments authorized by this Custodial Account Agreement). This provision does not guarantee any rate of return and applies only to Undirected Cash managed under the Cash Management Program; it does not apply to any Depositor-directed investments outside the program.

(d) The Depositor acknowledges that they have reviewed NDTCO’s direct and indirect 
compensation, as disclosed and described in this Section [15], including Cash Management fees charged to the Depositor in connection with administration of the Cash Management Program. Depositor acknowledges and agrees that such compensation is reasonable in light of the services provided by NDTCO, including the management of Undirected Cash to preserve principal, enhance safety and availability of applicable deposit insurance, maintain liquidity, and assume operational, liquidity, and valuation risks associated with the Cash Management Program. Depositor further acknowledges that the services described in this Section [15] are necessary to establish, operate, and maintain the Cash Management Program and that the Cash Management Program provides a material and ongoing benefit to the Depositor in connection with the maintenance of the Custodial Account. 

16. Withdrawal Requests 
All requests for withdrawals from the Custodial Account shall be in writing and otherwise in form and substance satisfactory to NDTCO. Such written directions must also contain the reason for the withdrawal and the method of distribution requested. The Custodian shall not be liable for any payment made in good faith without actual knowledge of any changed condition or status of any person receiving such payment hereunder. NDTCO reserves the right to reject any withdrawal request to the extent it may deem appropriate and may, but is not obligated to, apply to a court of competent authority to make any necessary determinations with respect to the proper party eligible to receive any distribution from the Custodial Account. NDTCO reserves the right, in its sole and absolute discretion, to reject, decline, delay, or refuse to process any personal distribution request for any reason or no reason, including any request made within sixty (60) days of account opening. All withdrawals shall be subject to all applicable tax and other laws and regulations including any applicable early withdrawal taxes and penalties.

17. Unrelated Business Income Tax (“UBIT”) 
If Depositor directs investment of any Custodial Assets in any investment which results in unrelated business taxable income, it shall be the responsibility of the Depositor to either (a) file Form 990-T (or other applicable forms) in respect thereof; or (b) advise NDTCO and provide it with all information necessary to prepare and file any required returns or reports for the Custodial Account. If Depositor submits this information to the Custodian for filing, or directs the submission to Custodian on Depositor’s behalf, Depositor agrees that Custodian is under no obligation or duty to verify the accuracy of the information provided. As NDTCO may deem necessary, and at Depositor's expense, NDTCO may request a taxpayer identification number for the Custodial Account, file any returns, reports, and applications for extension, and pay any taxes or estimated taxes owed with respect to the Custodial Account. NDTCO may retain suitable accountants, attorneys, or other agents to assist it in performing such responsibilities and charge the Depositor a fee to complete the necessary work for the UBIT filing. If Depositor fails to make appropriate filings in a timely manner and pay any UBIT or fails to timely request that the Custodian make such filings on the Depositor’s behalf and pay the UBIT, the Depositor agrees to indemnify the Custodian for any liability incurred due to such failure.

18. Yearly Valuation of Custodial Account 
For Custodial Assets comprised of securities or precious metals that have publicly available 
quoted prices, the Custodian will use such quoted prices to determine the fair market value 
(“FMV”) for such securities or precious metals. Although such prices are obtained from quotation services and other sources the Custodian believes to be reliable, the Custodian cannot and does not guarantee their accuracy and shall not be liable for its good-faith reliance on these quotation services. Where a brokerage account is held as a Custodial Asset, the FMV shall reflect only the total value of the brokerage account as reported by the brokerage firm to the Custodian. For all other Custodial Assets, Depositor must furnish NDTCO in writing the FMV of each Custodial Asset annually by the 15th day of each January, and within twenty days of any other written request from NDTCO, valued as of the date specified in such request. Depositor acknowledges, understands, and agrees that the statement that the FMV is undeterminable, or that cost basis should be used, is not acceptable. The Depositor agrees that the FMV furnished to NDTCO will be typically obtained from the issuer or sponsor of the Custodial Asset (which includes the general partner or managing member thereof); such issuer or sponsor, or any appraiser performing valuation services hereunder may be referred to herein as a “Valuation Agent”. The Depositor shall cooperate with the Custodian to cause each Valuation Agent to certify such documents as the Custodian shall deem appropriate or necessary to confirm the understanding and agreement of the Valuation Agent to its obligation to provide such valuation annually to the Custodian by the date required herein. Failure of any Valuation Agent to provide a timely valuation shall be the sole responsibility of the Depositor, and the Custodian and Administrator shall not be required to take any steps to secure an updated valuation for the Custodial Account or any Custodial Asset held therein, nor shall the Custodian or Administrator be responsible for any Losses or consequences associated with the failure to timely provide a valuation. The Depositor acknowledges, understands, and agrees that if the Custodial Asset is one for which there is no issuer or sponsor (such as real estate), or if the issuer or sponsor is unable or unwilling to provide an FMV, Depositor shall obtain the FMV from an independent, qualified appraiser and the valuation shall be furnished on the letterhead of the person providing the valuation. Depositor acknowledges, understands and agrees that NDTCO shall have no obligation to investigate or determine whether the FMV so furnished is the correct FMV (without regard to any actual or constructive knowledge that NDTCO or the Administrator may otherwise have), but if NDTCO otherwise has a different value for such Custodial Asset, NDTCO may use such other value in its reports to the Depositor and to the IRS if NDTCO (in its sole discretion) so chooses. Depositor acknowledges, understands, and agrees that NDTCO shall rely upon Depositor’s continuing attention, and timely performance, of this responsibility. Depositor acknowledges, understands, and agrees if NDTCO does not receive a fair market value annually when such valuation is due hereunder, NDTCO may distribute the Custodial Asset to the Depositor 
and issue an IRS Form 1099–R for the last available value of the Custodial Asset. Custodian shall have no responsibility or liability for acting in reliance on a valuation reported by the Depositor or any Valuation Agent or for the accuracy of a required minimum distribution calculated based upon any valuation furnished to Custodian hereunder. Depositor shall indemnify and hold the Custodian harmless from any Losses, damages, tax or other consequences to the Depositor or the Custodial Account arising from or relating to the valuation of any Custodial Asset, including the Custodian’s accepting, reporting and acting upon any valuation supplied by the Depositor or any Valuation Agent hereunder, or for using the last available value as provided in this Custodial Account Agreement. Depositor further acknowledges and agrees that, if any valuation required hereunder is not provided to Custodian when due, Custodian may, but shall not be obligated to, obtain a valuation from an independent third-party Valuation Agent, with the cost thereof to be paid by the Depositor or from the Custodial Assets. The Custodian and the Administrator shall have no liability 
for acting in reliance on any valuation so obtained.

19. Asset Reports
NDTCO and the Administrator from time to time may receive various Asset Reports related to the Custodial Assets. It shall be Depositor’s responsibility to obtain such Asset Reports from a source other than NDTCO or the Administrator. NDTCO or the Administrator may, but shall not be obligated to, forward any Asset Reports to Depositor. Depositor agrees that it is the responsibility of the Depositor to (i) review such Asset Reports, (ii) know what Asset Reports are due and when in respect of each Custodial Asset in the Custodial Account, and (iii) follow up with the sponsor of the Custodial Asset whenever an Asset Report is not provided in a timely manner to Depositor. Depositor acknowledges that neither NDTCO nor the Administrator has a duty to (i) request Asset Reports or (ii) review any Asset Report for accuracy or content or otherwise.

20. Annual Accounting 
NDTCO shall, at least annually, provide the Depositor, the Depositor’s designated agent, or the beneficiary (in the case of death) with an accounting of the Custodial Account. Such accounting shall be deemed to be accepted and accurate by the Depositor, their designated agent, or their beneficiary if they do not object in writing within 30 days after such accounting statement has been transmitted to Depositor or their representative. Depositor agrees that NDTCO and the Administrator shall have no liability for and will be held harmless by Depositor from and against any errors, omissions, or other Losses that are apparent on an accounting statement unless the Depositor objects in writing to the contents of the accounting statement within 30 days after the statement has been transmitted to the Depositor, their authorized agent, or beneficiary, with such written objection stating specifically the portion of the accounting in dispute.

21. Forwarding Records 
Depositor acknowledges and agrees that, unless required by applicable law, NDTCO and the 
Administrator are not responsible for communicating, forwarding or notifying any party, including the Depositor, with respect to any communication or matter that comes to the attention of or is received by NDTCO or the Administrator with respect to the Custodial Account, Custodial Assets, sponsor, advisor, or authorized agent. Depositor is responsible in all instances for making separate arrangements for receiving such communications. NDTCO or the Administrator may, but shall not be obligated to, deliver to Depositor, or cause to be delivered to Depositor, any notices, prospectuses, financial statements, proxies, and proxy soliciting materials relating to Custodial Assets and that are directed to NDTCO or the Administrator. Depositor agrees that NDTCO and the Administrator have no duty to inform Depositor of any information related to any Custodial Asset, sponsor, advisor, or authorized agent, including information NDTCO may have learned in connection with another account or client or from any other source.

22. Resignation and Removal of NDTCO as Custodian
(a) NDTCO may resign as Custodian by giving the Depositor (or, if the Depositor is then deceased, to the beneficiary(ies)) written notice at least 30 days prior to the effective date of such resignation. If the Depositor or such beneficiary fails to appoint a Successor Custodian or direct a distribution of the entire balance of the Custodial Account within such 30-day period, then the Custodian is hereby authorized to (i) distribute the Custodial Account to the Depositor or the beneficiaries regardless of any possible tax consequences; or (ii) appoint a Successor Custodian and distribute the Custodial Assets to such Successor Custodian. The Successor Custodian or any successor to Administrator hereunder may rely on any information, including beneficiary designations, previously provided by the Depositor to NDTCO. The Depositor agrees that NDTCO will not be responsible for any tax consequences or any Losses that result from any action taken pursuant to this section.

(b) The Depositor may at any time remove NDTCO and replace it with a Successor Custodian of the Depositor's choice by giving 30 days’ notice of such removal and replacement. Without limiting the generality of the foregoing, Depositor shall substitute another custodian or trustee in place of NDTCO upon receipt of notice from the Commissioner of the IRS or their delegate that such substitution is required because NDTCO has failed to comply with the requirements of Treasury Regulations Section 1.408-2(e), or is not keeping such records, making such returns, or rendering such statements as are required by applicable law, regulations, or other rulings. Depositor is responsible for ensuring that any Successor Custodian so appointed by the Depositor shall be a person approved by the Secretary of the Treasury of the United States to hold and administer assets in an Individual Retirement Account. Upon receipt by NDTCO of written acceptance by Depositor’s chosen Successor Custodian, Custodian shall transfer and pay over the Custodial Assets to such Successor Custodian (less amounts retained pursuant to this Article VIII). If the Depositor designates a Successor Custodian and provides NDTCO evidence of the Successor Custodian's acceptance of appointment and qualification within such 30-day period, NDTCO shall then deliver all of the Custodial Assets (whether in cash or personal or real property, wherever located, and regardless of value) to the Successor Custodian. If the Depositor does not notify NDTCO of the appointment of a Successor Custodian within such 30-day period, then NDTCO may distribute all of the Custodial Assets (whether in cash or personal or real property, wherever located, and regardless of value) to the Depositor, outright and free of trust, and the Depositor shall be wholly 
responsible for the tax consequences of or any Losses arising from such distribution.

(c) NDTCO may expend any Custodial Assets to pay expenses of transfer (including re-registering the assets and preparation of deeds, assignments, and other instruments of transfer or conveyance) to the Successor Custodian or as the Successor Custodian may direct, or to any other successor, including the Depositor or, if applicable, a trustee designated by the Depositor. In addition, NDTCO may in its sole discretion retain a portion of the Custodial Assets as a reserve for payment of any anticipated remaining fees and expenses. The Custodian specifically reserves the right to withhold reasonable fees and expenses for handling assets that it may receive after the Custodial Account has been closed or transferred. Upon satisfaction of all such fees and expenses, NDTCO shall pay over any remainder of the reserve to the Successor Custodian, any trustee designated by the Depositor, or to the Depositor, as the case may be. The Depositor or the Successor Custodian shall reimburse the Custodian for any deficiency in the amounts so withheld if they prove to be insufficient for the settlement of accounts contemplated hereby.

(d) The transfer and delivery of the Custodial Assets to the Successor Custodian shall constitute a full and complete discharge of liability for the Custodian with respect to the Custodial Account, the Custodial Assets, the Depositor, or any Successor Custodian unless Custodian is notified by the Depositor or the Successor Custodian in writing within 30 days from the date of resignation or removal of irregularities in its custodianship.

22A. Conditions of Transfers, Fee and Compliance Holds 
Notwithstanding any provision to the contrary, NDTCO shall have no obligations to process any transfer, rollover, resignation, or distribution of Custodial Assets unless and until; (a) fees, 
expenses, taxes, and other amounts owed to NDTCO or the Administrator are paid in full; (b) all required valuations, documentation, instructions, and compliance items have been received in form and substance by NDTCO and (c) the Custodial Account is otherwise in good standing. NDTCO may delay, suspend, or refuse any transfer or distribution while any such conditions remain unsatisfied, without liability. Any delay resulting from such conditions shall not constitute negligence, breach of contract, or fiduciary conduct. 

23. Indemnification 
Depositor acknowledges that it is solely their responsibility to direct the investment of the 
Custodial Assets and that neither NDTCO or the Administrator will have any responsibility or 
involvement in evaluating or selecting any assets for acquisition or disposition and shall have no liability for any Losses or other damages that may result from or be associated with any requested investment transaction. Acceptance of a Custodial Asset by NDTCO or the Administrator shall not be construed as a favorable opinion as to the prudence or suitability of the investment for the Depositor’s IRA. NDTCO’s or the Administrator’s review of any asset the Depositor desires to purchase and hold in their Custodial Account should in no way be construed as a “due diligence” review by NDTCO or the Administrator, and Depositor agrees that they are not relying on such a review by NDTCO or the Administrator in any way. In other words, Depositor acknowledges that NDTCO and the Administrator are not, nor is any person or entity acting on NDTCO’s or the Administrator’s behalf, a fiduciary with respect to the Depositor, the Custodial Account, or Custodial Assets. The Depositor and their beneficiaries, for themselves and on behalf of their respective representatives, heirs, successors and assigns, hereby agrees at all times to indemnify and hold harmless NDTCO, the Administrator, their respective affiliates, and their respective directors, officers, employees and agents, successors and assigns (who may be referred to herein as an “Indemnitee” or the “Indemnitees”), from and against any and all Losses incurred by, or entered against any of them as the result of or related to any threatened or asserted claim against any Indemnitee or any person or entity acting on its behalf that pertains in any way to any Indemnitee’s activities with respect to the Depositor, their investments, any circumstance or matter associated with the Custodial Account or Custodial Assets, or that in any way relates to the Depositor, the Custodial Account, Custodial Assets, or this Custodial Account Agreement. The Depositor’s indemnification obligations also include the responsibility to reimburse Indemnitees for all attorneys’ fees and costs incurred by or on behalf of any of them in responding to actual or 
threatened claims by any party, and in prosecuting, including on appeal, a claim or counterclaim against the Depositor requesting payment of the indemnification obligations set forth herein or otherwise in respect of this Custodial Account Agreement. The Depositor’s indemnification obligation also applies to any threatened or asserted claims brought by the Depositor against any Indemnitee resulting from negligent or wrongful conduct by any representative or third-party appointed by, selected by, or approved by the Depositor, including but not limited to fraud, forgery, or any other illegal act engaged in by any representative or other agent retained by or on behalf of the Depositor. The Depositor agrees to indemnify and hold the Indemnitees harmless from and against all Losses asserted against or incurred by any of them as a result of, or in any way relating to, any action requested or directed by the Depositor or any of the Depositor’s representative(s). Each Indemnitee shall be entitled to seek the advice of legal counsel in connection with any matter relating to the Depositor, the Custodial Account or any Custodial Assets and may in good faith rely upon that advice. Any Indemnitee may at its election, when deemed by counsel as appropriate, respond and participate in any bankruptcy or receivership proceeding, or other litigation to which 
any Indemnitee or the Custodial Account or any Custodial Assets have been made a party or by which any of them may be affected. In such a case the Depositor shall fully indemnify the 
Indemnitees from, and hold them harmless from and against, any Losses arising from or related to any action taken by any Indemnitee in good faith. Should the Depositor refuse to comply with any Indemnitee’s demand for payment of any Losses, including reasonable attorneys’ fees, NDTCO and the Administrator reserve the right to liquidate or direct the liquidation of some or all of the Custodial Assets to satisfy the obligations set forth herein. NDTCO and the Administrator shall not be responsible for any taxes, penalties, judgments, investment losses, and expenses incurred by the Custodial Account. The indemnification obligations of the Depositor will survive the termination of this Custodial Account Agreement and the Account Agreement. Notwithstanding any provision herein, potentially to the contrary, the indemnification obligations set forth herein will not extend to Losses caused solely by NDTCO’s or any of its agents’ gross negligence or willful misconduct. 

24. ARBITRATION OF ALL CLAIMS—ARBITRATION OF DISPUTES. PLEASE READ THE 
FOLLOWING ARBITRATION PROVISIONS CAREFULLY. THEY PROVIDE THAT ANY CONTROVERSY 
OR DISPUTE RELATED TO THE CUSTODIAL ACCOUNT OR THIS CUSTODIAL ACCOUNT 
AGREEMENT MAY BE RESOLVED BY BINDING ARBITRATION. ARBITRATION REPLACES THE 
RIGHT TO GO TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL AND THE RIGHT TO 
PARTICIPATE IN A CLASS ACTION OR SIMILAR PROCEEDING.

25. Agreement to Arbitrate 
The Depositor and their representatives and agents or beneficiaries and the Custodian and/or the Administrator must first attempt in good faith to resolve by negotiation any dispute that in any way arises out of or relates to the Custodial Account, the Custodial Assets, this Custodial Account Agreement, or the Account Agreement. If the parties are unable to resolve their dispute by negotiation then, upon demand by any of Depositor, Custodian or the Administrator, any controversy, claim, counterclaim, cross claim, or other dispute arising out of or relating to the Custodial Account, the Custodial Assets, this Custodial Account Agreement, or the Account Agreement, or the breach, termination, interpretation or validity thereof, including any challenge to the making of this Custodial Account Agreement or the Account Agreement or the determination of the scope or applicability or enforceability of this agreement to arbitrate, whether sounding in tort, contract, equity, statute or otherwise, must be settled by individual, confidential, binding arbitration before a sole arbitrator, in accordance with the laws of the State of Kansas for agreements made in and to be performed in Kansas. ARBITRATION MEANS DEPOSITOR WAIVES THE RIGHT TO A JURY TRIAL. 

26. Claims Subject to Arbitration 
Include but are not limited to any and all claims or controversies that arise from or relate in any way to the Custodial Account, to the Custodial Assets, to this Custodial Account Agreement, to the Account Agreement, to the Depositor’s relationship with NDTCO and/or the Administrator; or any actions taken by the Depositor, their agent, or NDTCO and/or the Administrator. 

27. Arbitration Location; Finality; Procedures; Waiver of Jury Trial, Class Action or any 
Representative Action; Related Matters

(a) The Depositor agrees that Arbitration shall only occur in Johnson County, Kansas, to the exclusion of all other venues (unless the parties elect a different venue in writing), and shall be administered by a single arbitrator in a confidential proceeding. Any arbitration will be administered by Judicial Arbitration and Mediation Services (“JAMS”) pursuant to its Comprehensive Arbitration Rules and Procedures, as may be in effect from time to time (“JAMS Rules”). The parties acknowledge that the Depositor is an investor, not a consumer, and this Custodial Account Agreement concerns investment transactions in an account that is controlled by the Depositor. Therefore, the parties specifically agree and acknowledge that the JAMS Consumer Arbitration Minimum Standards do not and shall not apply to any arbitration that arises from this Custodial Account Agreement. This includes, but is not limited to, any provisions of the JAMS Consumer Arbitration Minimum Standards that allocate the costs and fees associated with the arbitration, that set the venue for the arbitration, or any other provision of those Standards that conflicts with the terms of this Custodial Account Agreement. 

(b) By agreeing to arbitration, the Depositor and NDTCO and/or the Administrator are voluntarily waving their right to seek remedies in court, including their right to a jury trial. The parties agree that the Depositor cannot bring any claims addressed herein as part of a class action or in any other representative action, and the arbitration of such claims must proceed on an individual, non-class, and non-representative, basis. The Depositor specifically waives their right to bring any claim related in any way to the Custodial Account, the Custodial Assets, this Custodial Account Agreement, or the Account Agreement or any other matter addressed herein on a class, mass, collective, consolidated or any other representative basis. If the Depositor, NDTCO and/or the Administrator, or any other party requires arbitration of a particular claim, neither party nor any other person may pursue the claim in any litigation, whether as an individual action, class action, private attorney general action, or any other representative action. 

(c) In the event of an arbitration, certain fees, expenses and costs will be required to be paid by the Depositor based on the JAMS Rules. Disputes will not be resolved in any other forum or venue. The parties agree that any arbitration will be conducted by a retired judge who is experienced in dispute resolution. Pre- arbitration discovery will be limited to the greatest extent provided by the JAMS Rules and discovery protocols of JAMS. Motions for summary disposition of a particular claim or issue will be permitted to the greatest extent allowed by the JAMS Rules.

(d) Any arbitration award will not include factual findings or conclusions of law, and no 
consequential, punitive, indirect, incidental, exemplary or special damages will be awarded unless otherwise required under applicable law. The arbitrator will not have any power or authority to render any award or issue any order at any time except as permitted in this Custodial Account Agreement. The award of the arbitrator will be binding on both parties, is not appealable, and may not be disputed in any court. Notwithstanding any other rules, no arbitration proceedings brought against NDTCO or the Administrator will be consolidated with any other arbitration proceeding without such party’s written consent. Judgment may be entered upon any award granted in any arbitration in any court of competent jurisdiction in Johnson County, Kansas, or in any other court having jurisdiction for this limited purpose only. The arbitrator will have the authority to award reasonable attorneys’ fees and costs, including the costs of the arbitration, to the prevailing party. The prevailing party in any judicial motion to confirm or enforce an arbitration award rendered pursuant to this paragraph shall be entitled to reimbursement of its reasonable attorneys’ fees and costs from the non-moving party.

(e) If any portion of this arbitration provision is deemed invalid or unenforceable, the remaining portions will nevertheless remain in force.

28. LIMITATION ON LIABILITY; WAIVER OF PUNITIVE DAMAGES. IN NO EVENT SHALL ANY PARTY (Including NDTCO and the Administrator) HAVE A REMEDY OF OR BE LIABLE TO ANY OTHER PARTY OR TO ANY OTHER PERSON FOR, (1) INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY DAMAGES. THE PARTIES HEREBY EXPRESSLY WAIVE ANY RIGHT OR CLAIM TO INDIRECT, SPECIAL, CONSEQUENTIAL, OR PUNITIVE OR EXEMPLARY DAMAGES THEY MAY SEEK OR WHICH MAY ARISE IN CONNECTION WITH ANY PROCEEDING, CLAIM OR CONTROVERSY ARISING IN CONNECTION WITH THIS CUSTODIAL ACCOUNT AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

29. One (1) Year Claims Limitation 
Any claim, action, or proceeding alleging breach of contract, negligence, misrepresentation, fraud, or any other controversy arising out of or in connection with any acts or omissions of NDTCO and/or the Administrator or otherwise that in any way relates to or arises from the parties’ relationship, the Custodial Account, the Custodial Assets, this Custodial Account Agreement, or the Account Agreement, including any acts or omissions authorized by Depositor or any of Depositor’s agents, must be filed within one (1) year of the occurrence of the facts or circumstances that gave rise to the potential causes of action. Any claims that are not brought within the applicable time shall be forever barred without regard to any other limitations period set forth by law or statute.

30. Choice of Law
The parties agree that this Custodial Account Agreement, their relationship, and any and all claims that arise from or in any way relate to this Custodial Account Agreement, the Account Agreement, their relationship, the Custodial Account, or the Custodial Assets shall be governed by the laws of the State of Kansas, without regard to its choice of law rules.

31. Important Clarification Regarding Pending Litigation; No Waiver of Existing Claims
This provision is prospective only. Nothing in this provision (including any dispute resolution terms, arbitration provision, class action waiver, jury trial waiver, limitation of liability, or other remedial, procedural, or substantive term) is intended to, and will not be construed to, directly or indirectly:  (a) release, waive, limit, impair, or otherwise affect any claim, right, remedy, or cause of action that is or may be asserted in any pending litigation or putative class action, in each case to the extent based on conduct, events, omissions, or circumstances occurring before the effective date of this provision; or

(b) affect, restrict, or otherwise impair the ability of any account holder to assert, pursue, 
participate in, opt into, opt out of, or obtain relief in connection with any claim that is or may be asserted in any pending litigation or putative class action, in each case to the extent based on conduct, events, omissions, or circumstances occurring before the effective date of this provision.  For clarity, and without limiting the foregoing, (i) this provision does not create any admission of liability or wrongdoing by the Custodian, and (ii) this provision does not change the non-fiduciary, self-directed nature of the Account or the Custodian’s role, as described elsewhere in this Custodial Account Agreement.

32. Amendment to this Custodial Account Agreement 
The Depositor irrevocably delegates to NDTCO and the Administrator the right and power to amend this Custodial Account Agreement. Except as hereafter provided, NDTCO and/or the Administrator will give the Depositor 30 days’ prior written notice of any amendment. In case of a retroactive amendment required by law, NDTCO and/or NDIRA will provide written notice to the Depositor of the amendment within 30 days after the amendment is made, or if later, by the time that notice of the amendment is required to be given under regulations or other guidance provided by the IRS. The Depositor shall have consented to any such amendment unless the Depositor provides written notice of the contrary to NDTCO and/or the Administrator within 30 days after notice to the Depositor and requests a distribution or transfer of the balance in the Custodial Account.

33. Severability 
If any part of this Custodial Account Agreement or the Account Agreement is held to be illegal, 
unenforceable, or invalid, the remaining parts will not be affected and will remain in full force and effect. Neither the Depositor’s nor NDTCO’s and/or the Administrator’s failure to enforce at any time or for any period of time any of the provisions of this Custodial Account Agreement or the Account Agreement shall be construed as a waiver of such provisions, or of NDTCO’s and/or the Administrator’s right thereafter to enforce each and every such provision.

34. Notices and Change of Address                                                                                                     Any required notice regarding the Custodial Account or any Custodial Assets will be considered sent and effective at the earlier of (a) NDTCO and/or the Administrator sends said written notice to the Depositor’s last known address within NDTCO’s and/or the Administrator’s records; or (b) NDTCO and/or the Administrator post the notice to the Custodial Account via the online client portal. Any notice given to NDTCO and/or the Administrator will be considered effective only upon actual receipt at NDTCO’s or the Administrator’s place of business. The Depositor and the Depositor’s representatives or agents must notify NDTCO and/or the Administrator of any change of address or email address immediately but no later than within 30 days of the change of address. If the Depositor or the Depositor’s representative or agent fails to timely update their address or email address, the Depositor agrees to indemnify and hold the Indemnitees harmless from and against any liability or causes of action that may arise because of their failure to timely update their 
address. NDTCO and/or the Administrator shall not be liable for its good faith reliance on an 
address, or any information with respect thereto, provided by any commercial address locator service. For all purposes of this Custodial Account Agreement, an email transmission is deemed to be in writing, and the term “address” includes a party’s email address. NDTCO and the Administrator are entitled to rely on the information disclosed to them until they have received written notice of a change in such information and have had a reasonable period of time to react thereto. If the Depositor has consented to the terms and conditions of NDTCO’s and/or the Administrator’s consent to conduct transactions electronically and to receive electronic delivery of notices and disclosures, as may be in effect from time to time, (the “Electronic Disclosure”), or if the Depositor accesses the Custodial Account through its online account access and has instructed NDTCO and/or the Administrator to deliver notices and disclosures electronically, the Depositor has agreed that: (a) all Custodial Account statements, disclosures, Depositor’s directions and transactions, and notices to the Depositor will be provided electronically as described in the Electronic Disclosure; and (b) the Depositor’s or the Depositor’s authorized agent’s use of an electronic signature serves as an “original” signature and will bind the Depositor to the terms of any document executed with an electronic signature. The Depositor agrees that NDTCO and the Administrator shall be entitled to rely on any signature or completed form that purports to be transmitted from the Depositor or its authorized agent, and NDTCO and the Administrator shall be held harmless for their reliance on such materials. The Depositor and NDTCO and/or the Administrator retain their respective rights as provided in the Electronic Disclosure. If the Depositor has not consented to the Electronic Disclosure or later withdraws consent, then any notice provided by NDTCO and/or the Administrator to the Depositor for any circumstance shall be sent to the Depositor’s address by regular mail or as otherwise permitted by applicable law, and for purposes of this Custodial Account Agreement shall be considered delivered as provided in this 
section.

35. Electronic Signature and Recordkeeping 
By having a Custodial Account, Depositor acknowledges and agrees to the terms outlined in 
NDTCO’s terms outlined in Electronic Communications Disclaimer; //https: knowledge.ndtco.com/ electronic-communications-policy. This includes Depositor’s consent to conduct all business electronically, receive disclosures and communications in electronic format, and utilize secure electronic signature technology. These terms are consistent with applicable federal and state laws, including Kansas Uniform Electronic Transactions Act (K.S.A. 16-1605, 16-1607, 16-1612, as amended from time to time) and federal ERISA regulations (29 CFR § 2520.107-1, as amended from time to time). 

36. Electronic Signatures in Global Commerce Act. 
By providing Depositor’s electronic signature, Depositor affirms Depositor’s intent to be legally bound by this Custodial Account Agreement and all related account opening documents for the Custodial Account. Pursuant to the Kansas Uniform Electronic Transactions Act (K.S.A. 16-1605 and 16-1607, as amended from time to time), Depositor’s electronic signature shall not be denied legal effect or enforceability solely because it is in electronic form. Depositor consents to receive all disclosures, agreements, notices, and other documents related to the Custodial Account electronically, and acknowledges that if a law requires a record to be in writing, an electronic record satisfies that requirement under Kansas law (K.S.A. 16-1607(c), as amended from time to time). Depositor acknowledges that Clicking “I Agree” constitutes a clear affirmative action indicating Depositor’s agreement to conduct business electronically and to open a Custodial Account under the terms provided. Depositor confirms that Depositor’s identity has been verified through secure authentication methods and that Depositor is authorized to act on behalf of the retirement account titled as: New Direction Trust Company FBO [Depositor Full Name] IRA. Depositor understands that this Custodial Account Agreement may require signatures from Depositor, any beneficial owner, 
and any fiduciary of your Custodial Account, as well as the Custodian who legally holds the 
account. A copy of Depositor’s electronically signed documents will be retained and made 
accessible through the Custodial Account’s secured client portal or upon request. Electronic 
signatures are captured using secure technology, including timestamping, device identification, and encryption, to ensure authenticity and integrity. Depositor may withdraw consent to use electronic signatures or request paper copies at any time by contacting New Direction Trust Company at info@ndtco.com or by calling 877.742.1270 Monday – Friday 8:30 AM to 5:00 PM Mountain Time Zone. Please note that withdrawal may delay or prevent account opening or transaction processing. Depositor agrees that this acknowledgement is consistent with applicable federal and Kansas statutes, including the Kansas Uniform Trust Code and Kansas Uniform Electronic Transactions Act (K.S.A. 16-1605, 16-1607, as amended from time to time), which recognize the legal effect of electronic records and signatures. 

37. Biometric and Device-Based Authentication 
Certain features may utilize biometric authentication (e.g. fingerprint or facial recognition) and device-based security measures. By enabling these features, Depositor consents to their use for their secure access and transaction authorization. 

38. Push Notifications and In-App Messaging 
Depositor may receive push notifications or in-app related messages related to account activity, disclosures, or service updates. Depositor can manage notification preferences within the app settings. 

39. Third-Party Services and Integrations 
From time to time, NDTCO or the Administrator may offer access to or integrate with third-party services, platforms, or technologies (“Third-Party Services”) to enhance the functionality, 
convenience, or accessibility of the Custodial Account. These may include, but are not limited to, payment processors, investment platforms, custodial tools, identity verification services, and data aggregation providers. By using these Third-Party Services through NDTCO or the Administrator, Depositor acknowledges and agrees to the following:

1. Independent Terms and Policies. Depositor’s use of any Third-Party Service is subject to the terms, conditions, and privacy policies of the respective provider. Neither NDTCO nor the Administrator control and are not responsible for the content, functionality, or data practices of these services. 

2. No Endorsement or Warranty. Neither NDTCO nor the Administrator endorse, guarantee, or make any representations or warranties regarding the reliability, security, or performance of Third-Party Services. Use of such services is at Depositor’s own risk. 

3. Data Sharing and Authorization. Depositor authorizes NDTCO and the Administrator to share necessary Custodial Account information with Third-Party Services solely for the purpose of facilitating requested transactions or services. All data sharing will comply with applicable privacy laws and NDTCO’s Privacy Policy.

4. Limitation of Liability. Neither NDTCO nor the Administrator shall be liable for any loss, damage, delay, or disruption caused by the use or failure of any Third-Party Service, including but not limited to service outages, data breaches, or transaction errors. 

5. Revocation of Access. Depositor may revoke access to Third-Party Services at any time by contacting NDTCO or the Administrator. However, doing so may limit or disable certain features or services available through the Custodial Account. 

40. Cloud and Third-Party Provider Outages

(a) Excused Non-Performance. Except for the Depositor’s obligation to pay amounts due, neither NDTCO nor its Affiliates shall be liable for any delay or failure to perform any obligation under this Custodial Account Agreement to the extent caused by a Force Majeure Event, being any event beyond NDTCO’s and its affiliates reasonable control, including acts of God, natural disasters, war, terrorism, civil or military disturbances, epidemics/pandemics, governmental orders, labor disputes, failures of utilities or telecommunications, widespread cyber-attacks, Domain Name System (DNS) resolution failures, or outage/degradation of third-party cloud or hosting providers (including Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform), data centers, payment networks, or internet infrastructure.

(b) No Liability for Depositor’s Inability to Transact. Depositor acknowledges that a Force Majeure Event may prevent access to NDTCO’s online or API channels, resulting in temporary inability to initiate, authorize, or settle transactions, or view balances or statements. Neither NDTCO nor the Administrator shall have any liability for Depositor’s lost revenues, trading opportunities, consequential damages, or other direct or indirect Losses arising therefrom.

(c) Notice & Mitigation. NDTCO will (i) provide commercially reasonable notice of a Force Majeure Event and its anticipated impact/extent, and (ii) use commercially reasonable efforts to mitigate and restore service, including activating business-continuity procedures, alternate processing sites, and region failovers where available.

(d) Duration; Termination Right. If a Force Majeure Event materially impairs a material service for more than 48 consecutive hours/2 days, either party may terminate the affected service(s) upon written notice, without penalty; provided that Depositor remains responsible for all amounts accrued prior to termination.

(e) Allocation of Risk; Credits at NDTCO’s Sole Discretion; Exclusive Remedy.
NDTCO and the Administrator have no obligation to provide any service-level credits for downtime or unavailability. Any credits that NDTCO or the Administrator may choose to offer, if any, shall be issued solely at NDTCO’s and the Administrator’s discretion and may be granted, withheld, or modified in their sole judgment. Any such discretionary credit, if offered, shall constitute the Depositor’s sole and exclusive monetary remedy for downtime or unavailability, and all other remedies or damages of any kind are excluded to the fullest extent permitted by law.

(f) To the fullest extent permitted by law, NDTCO and the Administrator shall not be liable for 
indirect, special, incidental, punitive, or consequential damages (including lost profits, trading 
losses, loss of data, or business interruption) arising from or related to service unavailability or degradation caused by a Force Majeure Event, and NDTCO’s and the Administrator’s total aggregate liability for direct damages under this Custodial Account Agreement shall not exceed the fees paid by Depositor for the affected service(s) during the twelve (12) months preceding the event.

Traditional IRA Disclosure Statement

This disclosure statement will provide Depositor (“you”) with information about your Account and your requirements for managing the Account. Additional information about Traditional IRAs and Roth IRAs can be obtained from IRS Publications 590-A and 590-B, which are available from any IRS district office, at the IRS website (www.irs.gov) or by calling 1-800-TAX-FORM.

The Account is treated as approved, as to the form, by the IRS since it utilizes the precise language of Form 5305-A, currently provided by the IRS, plus additional language permitted by such form. The IRS approval is a determination only as to the form of the Account and does not represent a determination of the merits of the Account. The SECURE 2.0 Act of 2022 (“SECURE 2.0”) was signed into law on December 29, 2022 and was effective after December 29, 2022, builds on the changes included in the Setting Every Community Up for Retirement Enhancement Act (“SECURE Act”), signed into law on December 20, 2019, and effective January 1, 2020, which changed some of the rules affecting IRAs. Please note that while the new rules are currently effective, the custodial agreements governing your accounts at Custodian don’t yet reflect the SECURE Act and SECURE 2.0 changes because we are awaiting further information from the IRS. We will notify you regarding access to updated custodial agreements when they have been amended to reflect the new rules.

1.Right to Revoke Account
You have the right to revoke this Account within seven (7) days of the date that this Account was established. If you exercise this right you are entitled to a return of the amount contributed to the Account without adjustment for such items as sales commissions, administrative expenses or fluctuation in market value. To revoke this Account, mail a written notice to:1070 West Century Drive, Louisville CO 80027. If mailed, it will be deemed mailed on the date of postmark (or if sent by certified or registered mail, the date of certification or registration) if it is deposited in the mail in the United States in an envelope, or other appropriate wrapper, first class postage prepaid, properly addressed.

2.IRA Contributions 
You may establish and/or contribute to a traditional IRA if, at the end of a tax year, you (or your spouse (filing jointly) have received compensation from employment for that year. Generally, compensation includes salary, wages, commissions, fees, tips and other income you (or your spouse if filing jointly) receive for your personal services. It does not include items such as earnings and dividends on investments, deferred compensation or monies from retirement plans or annuities.

The total annual contributions allowed to all of your traditional and Roth IRAs is the lesser of the compensation you and your spouse receive for that year (less any traditional and Roth IRA contributions made by or on behalf of your spouse) or the maximum amount as determined by federal tax laws. Refer to the IRS Publication 590-A or www.irs.gov or current contribution limits. Unless otherwise specified, for purposes of explaining how much you may contribute to a traditional IRA, this disclosure statement assumes that you will not make contributions to a Roth IRA.

If neither you, nor your spouse is an “active participant” in an employer-sponsored retirement plan, you may make and deduct the maximum contribution to your IRA and the maximum contribution to your spouse’s IRA, as long as the total contributions to both IRAs do not exceed 100% of your compensation for the year. 

If you are an “active participant” but have a modified adjusted gross income (“MAGI”) below a 
certain level, you may make a deductible contribution. If, however, you or your spouse are an active participant and your MAGI is at or above the specified level, the amount of the deductible contribution you may make to a traditional IRA is phased out and eventually eliminated.

The determination of active participation is made separately for you and your spouse. However, if you are not an “active participant,” but your spouse is an “active participant,” your maximum deduction for IRA contributions may be limited depending on your MAGI. 

You may be eligible for a nonrefundable tax credit of “qualified retirement savings contributions,” provided that your adjusted gross income is within specified limits. “Qualified retirement savings contributions” include contributions to a traditional IRA, Roth IRA, elective deferrals to a qualified retirement plan, elective deferrals under an eligible deferred compensation plan maintained by a state or local government, and voluntary employee contributions to an qualified retirement plan. 
You can obtain additional information on this tax credit in IRS Publication 590-A. Beginning after 2026, this credit will be replaced with the Saver’s Match.

Even if you are above the threshold level to make a deductible contribution, you may still 
contribute, subject to the applicable contribution limits. If you make a nondeductible contribution to a traditional IRA, you must report the amount by filling IRS Form 8606 Nondeductible IRAs with your tax return for the year for which the contribution is made.

3.Excess Contributions
If you contribute more than your allowable amount in any one year, you generally will be subject to a 6% tax on the excess contribution. You must file a Form 5329 with the IRS reporting the 6% tax. If you withdraw the excess amount plus any other income on the excess before your tax return due date (including extensions), the excess contribution will not be subject to the 6% tax. You must include the earnings on the excess contribution in income. You do not have to include the excess contribution in income and you cannot deduct the excess contribution.

If you withdraw the excess amount after the due date for your tax return (including extensions), you generally must include it in your gross income and you will have to pay the 6% tax on the excess amount. Any earnings on the excess amount will remain in the IRA. Consult your tax advisor for special rules for when the withdrawn excess contribution would not be includible in your income. You can also apply the excess amount to contributions for a later year and contribute less than the maximum amount allowed to your IRA in the later year. You will be required to pay the 6% tax on the amount of the excess contribution for the year in which the excess contribution was made. If you decide to apply the excess contribution over several years, you will pay the 6% tax on the amount of the excess contribution that remains after each year.

4.Rollovers and Transfers
A rollover is the distribution of funds from your retirement plan or IRA to you, which you 
subsequently roll over to another retirement plan or IRA. A rollover contribution to an IRA is not subject to the annual contribution limits and you may not deduct it on your tax return. The Custodian shall not be responsible for determining whether you made a proper rollover 
contribution, but the Custodian may request a certification that the funds represent a qualified rollover to ensure the accuracy of the Custodian’s records. You also may transfer amounts tax-free from one IRA directly to another IRA in a “trustee-to-trustee” transfer. These transfers are not subject to the 60-day and 12-month limits described below.

(1) Rollover from a Traditional IRA to another Traditional IRA. You can withdraw all or part of your traditional IRA and roll over all or part of the amount withdrawn to another traditional IRA. The amount rolled over will not be subject to federal income tax (or the 10% additional tax) if you complete the rollover within sixty (60) days after the withdrawal. You may only make one rollover from one IRA to another IRA (including Roth IRAs) in a 12-month period.

(2) Rollover from a Traditional IRA to a Roth IRA. You can convert amounts from a traditional IRA (including a SEP IRA) to a Roth IRA by withdrawing all or part of your traditional IRA and rolling it over into a Roth IRA within sixty (60) days of receipt. In the year of the conversion, you will owe taxes on the portion of the conversion that represents the earnings and contributions distributed from the traditional IRA that were not previously taxed. Roth IRA conversions may not be recharacterized. The 10% additional tax generally does not apply to the amount converted unless you take a distribution within five (5) years of the conversion.

(3) Rollovers to and from Employer-Sponsored Plans. Subject to certain restrictions, a distribution from an IRA (other than a distribution of after-tax amounts) may be rolled over or transferred directly tax-free to an employer’s qualified plan. You also may roll over or transfer directly certain distributions from a qualified retirement plan to an IRA. Such rollovers to an IRA must be made within sixty (60) days of receipt of the distribution. Rollovers from employer- sponsored plans may be made by rolling the same property into the IRA or liquidating the property and rolling over the proceeds. You should seek advice from your tax advisor if you would like to roll over to or from an employer’s qualified plan.

5.IRA Distributions
Distributions from your IRA are generally includible in gross income as ordinary income. If there are after-tax amounts, such as non-deductible contributions, special rules apply to determine the portion that is taxable and the portion that is non-taxable. If, however, you take distributions before age 59½, you may be subject to a 10% additional tax on the amounts distributed, unless an exception applies. The 10% additional tax is on top of the income taxes on the taxable amount distributed. For more information regarding exceptions to the 10% additional tax, consult your tax advisor and IRS Publication 590-B at www.irs.gov. 

Federal tax laws require us to generally withhold 10% of each distribution by you for payment of your federal income taxes, unless you instruct us in writing not to withhold. Some states require us to withhold state income tax. Please consult your state tax authority to determine if your state requires withholding.

No distribution can qualify for capital gains treatment or for the five-year or ten-year averaging that is available with respect to certain lump sum distributions from other types of retirement plans. You should consult with your tax advisor regarding the tax treatment of distributions from your IRA.

6.Required Minimum Distributions (“RMDs”)
You may incur an excise tax if you do not start taking distributions by April 1st following the year you attain your “RMD age.” Your RMD age is age 70½ if you were born before July 1, 1949, age 72 if you were born between July 1, 1949 and December 31, 1950, age 73 if you were born between January 1, 1951 and December 31, 1959, and otherwise age 75. Before that date, you must either distribute the balance from your account or begin taking periodic distributions that are at least as great as the minimum amount you are required to distribute for that year under federal laws. You may elect to receive the minimum amount that applies to this traditional IRA from another traditional IRA. If you make this election, you should notify us. The federal excise tax is 25% of the difference between the minimum amount you are required to distribute and the amount you actually distributed in that year. This excise tax is reduced to 10% if a distribution of the shortfall is made within two years and prior to the date the excise tax is assessed or imposed by the IRS. 

Generally, after reaching RMD age, the minimum amount you must distribute each year to avoid the 25% excise tax is based on the account balance of your traditional IRA on December 31 from the prior year divided by a factor determined by your age published by the IRS on the Uniform Life Expectancy Table. If you name your spouse as the sole primary beneficiary of your traditional IRA for the entire year and your spouse is more than 10 years younger than you, the appropriate factor is found in the IRS’s Joint Life and Last Survivor Expectancy Table, which will further reduce the amount of your RMD. IRS Publication 590-B explains the rules for determining the minimum amounts you must distribute. 

It is your responsibility to notify us of the dollar amount that you wish to receive as a RMD and when you wish to receive it. If the balance in your traditional IRA at the time set for distribution is less than the distribution amount you have specified, we may only distribute that balance or ask that you take additional action. Except as provided below, we are not responsible for determining the RMD amount. We will provide you with a notice by January 31 of each year that either (a) indicates the RMD and deadline for distribution or (b) notifies you that a RMD is due and the deadline for such distribution and offer to calculate the RMD upon your written request. Also, if an RMD is due, you will be advised by January 31 of that year in the December 31 IRA fair market value statement. The IRS will be advised on Form 5498 if an RMD is due from your traditional IRA. These reporting requirements only apply to you (or to your eligible spouse who elects to treat the traditional IRA as their own). We may, but are not required to provide such reports to your beneficiary.

Upon your death, the traditional IRA is subject to RMD rules. Non-spouse individual beneficiaries (with limited exceptions for “eligible designated beneficiaries”) must withdraw the full inherited IRA account balance by the end of the 10th year after your death, regardless of whether your death occurs before or after RMDs have begun. However, if your death occurs on or after RMDs have begun, annual distributions are required during this 10-year period. A spouse beneficiary and certain non-spouse beneficiaries who meet the definition of an “eligible designated beneficiary”, may generally spread the distribution of the inherited IRA over the beneficiary’s life or life expectancy, if payments begin by the end of the calendar year following your death. Special rules apply for minors and beneficiaries that are not individuals (e.g., trusts, estates). 

If your sole beneficiary is your spouse, your surviving spouse may treat the IRA as their own. 
Beginning after 2023, a surviving spouse who is the sole beneficiary of the IRA, and who does not elect to treat the IRA as their own, may be able to elect to have RMDs they would take as a 
beneficiary determined under the Uniform Lifetime Table rather than the Single Life Table.
If your beneficiary fails to withdraw the RMD for a year, they will have to pay an excise tax. The excise tax is 25% of the difference between the RMD and the actual withdrawals during a year. This excise tax is reduced to 10% if a distribution of the shortfall is made within two years and prior to the date the excise tax is assessed or imposed by the IRS. A tax or financial advisor should be consulted because it is the beneficiary’s responsibility to make sure that this RMD requirement is met. The Custodian will process a withdrawal from your IRA only in accordance with your or your beneficiary’s specific instructions.

7.Prohibited Transactions (see IRS Publication 590 for further information)
You understand and acknowledge that should you direct your Account to engage in a prohibited transaction, the Account will incur a taxable distribution as well as possible penalties. Prohibited transactions are defined in IRC section 4975. You acknowledge to Custodian and confirm that you have consulted with, and in each successive investment will again consult with, your own legal and accounting advisor(s) to ensure that the investment(s) you make do(es) not constitute a prohibited transaction, and that the investment(s) you make comply with all applicable federal and state laws, regulations, and requirements, including but not limited to you determining that each interested entity and/or individual in your investment is not a “disqualified person” under IRC section 4975 (e) (2), nor a “party in interest” as defined in ERISA section 3(14).

You understand and acknowledge that your Account can lose its exemption from federal income tax if the individual establishing the Account or any beneficiary engages in a “prohibited transaction.” If any other “disqualified person” engages in a prohibited transaction with your Account, he or she will be subject to an excise tax equal to 15% of the amount involved each year (or part thereof) until the transaction is corrected.

A Disqualified Person may include, without limitation, any of the following:

• You, the owner of the plan (account);

• A member of your family (i.e., your spouse, ancestors, lineal descendants and their spouses);

• The custodian of the plan.

• Any person providing services or is a fiduciary to the plan.

• Any corporation, partnership, trust, or estate in which you own (either directly or 

  indirectly) 50% or more; or

• An officer, director, 10% or more shareholder, or highly compensated employee of any of the foregoing.

Prohibited transactions generally include, but are not limited to, any direct or indirect:

• Sale, exchange, or lease of any property between the Account and a disqualified person.

• Lending of money or any other extension of credit between the Account and a disqualified person.

• Furnishing of goods, services, or facilities between the Account and a disqualified person.

• Transfer to or use for the benefit of a disqualified person the income or assets of the Account.

• Act by a disqualified person who is a fiduciary whereby they deal with the income or assets of the Account in their own interest or for their own account; and,

• Receipt of any consideration for the personal account of any disqualified person who is a fiduciary dealing with the Account in connection with a transaction involving the income or asset of the Account.

If the Account loses its tax exemption because of a prohibited transaction, the fair market value of the Account assets (net of any nondeductible contributions remaining in the Account) as of the first day of the year of the transaction must be included in your gross income for the taxable year in which the loss of exemption occurs. If this takes place before you have attained age 59½, you will also be subject to the 10% premature distribution penalty tax on the amount so included in gross income unless there is an applicable exception. If you pledge any part of your account as security for a loan, the part so pledged will be treated as a distribution in the taxable year in which the pledging occurs and will be taxed accordingly.

Financial Disclosure

The fees associated with the Custodial Account are described in the Fee Schedule. As provided above, Depositor agrees to pay the fees set forth in the Fee Schedule. Growth in value of the Custodial Account is neither guaranteed nor projected and depends entirely on the success of Depositor’s investment strategy. Therefore, no projection for the growth of the Custodial Account can reasonably be shown, projected, or guaranteed.