Field

Description

Conduit/Rollover IRA

Mnemonic: DMCOND

Use this field to indicate whether the customer account is placed in a temporary "holding" status.

No other money can be commingled with the customer account, but it continues to earn interest while waiting to be rolled over into a new account. This action can only be performed with money from a qualified plan and can only be rolled over into another qualified plan. Product roll features can be adjusted for individual customer accounts on the Deposits > Account Information > Roll Schedules screen.

Either the Qualified Plan or SEP field below must be marked if the customer account is a Qualified, Simple (see below), or Conduit/Rollover type of account.

Simple Account

Mnemonic: DMSIMP

Use this field to indicate whether the customer account is a simple IRA.

The Simple IRA plan consists of a deferral program for employees and a mandatory contribution made by employers. The Simple IRA plan's availability is limited to employers with 100 or fewer employees who earned at least $5,000.00 in the previous calendar year.

Either the Qualified Plan or SEP field below must be marked if the customer account is a Qualified, Conduit/Rollover (see above), or Simple type of account.

Traditional

Mnemonic: DMRIRA

Use this field to indicate whether the customer account is a traditional IRA.

A traditional IRA is a personal savings plan that provides tax advantages for saving for retirement. Contributions to a traditional IRA may be tax deductible – either in whole or in part. Also, the earnings on amounts in an IRA are not taxed until they are distributed. The portion of the contributions that was tax deductible also does not get taxed until distributed.

In Periodic Distribution

Mnemonic: DMINPD

Use this field to indicate whether the customer account will be converted to a periodic distribution account.

IRA owners can contribute to retirement accounts until the age of 70.5 years. Once the contributor turns 70.5 years old, the account can only make periodic distributions at a Required Minimum Distribution (RMD) rate. This field provides the means for converting the retirement account into a distribution account.

This field is automatically updated when the RMD function is processed each year-end. All accounts for which the owner is 70.5 years or older will be updated accordingly.

Roth Account

Mnemonic: DMROTH

Use this field to indicate whether the customer account is a Roth IRA.

A Roth IRA is very similar to a Traditional IRA (see above). Contributions are never deductible, and qualified distributions are tax-free. A qualified distribution is one that is taken at least five years after the taxpayer establishes their first Roth IRA and when they are age 59.5, disabled, using the withdrawal to purchase a first home (limit $10,000), or deceased (in which case the beneficiary collects).

Qualified Plan

Mnemonic: DMRQLP

Use this field to indicate whether the customer account is part of a qualified retirement plan. If this field is marked, the Plan Description Code field must also be filled in.

Either this or the SEP field below must be marked if the customer account is a Qualified, Conduit/Rollover, or Simple account (see above).

ESA

Mnemonic: DMEDUC

Use this field to indicate whether the customer account is an Education IRA.

The Education IRA is a savings plan for higher education. Parents and guardians are allowed to make nondeductible contributions to an Education IRA for a child under the age of 18. The funds in an Education IRA can be withdrawn tax free when they are needed for educational purposes.

HSA

Mnemonic: DMRHSA

Use this field to indicate whether the customer account is a Health Savings Account (HSA).

HSAs are accounts set up to be used for health purposes (doctor bills, prescriptions, etc) that are approved by the government. After approval, an HSA can be used for the medical needs of an individual or their family. This account type can also be used with a checking account feature to allow check withdrawals and card transactions to be processed against the account.

SEP

Mnemonic: DMSEPP

Use this field to indicate whether the customer account is a Simplified Employee Pension (SEP) account. Either this or the Qualified Plan field above must be marked if the customer account is a Qualified, Conduit/Rollover, or Simple account (see above).

An SEP is a type of retirement plan that an employer (including self-employed individuals) can establish. The employer makes contributions to each eligible employee's SEP on a discretionary basis. Contributions to SEPs are immediately 100% vested, and the IRA owner directs the investments.