The Plan Sponsor of your former employer’s retirement plan established a Safe Harbor IRA on your behalf with the balance of your retirement plan account. The Safe Harbor IRA is an “automatic rollover IRA” which, under Department of Labor rules, permits a retirement plan sponsor to remove small account balances of former employees by creating and funding an IRA on the former employee’s behalf.
This Account is a limited purpose non-transactional IRA that does not permit additional contributions or selection by you of an alternative investment. The Safe Harbor IRA is subject to the information and disclosures provided below.
Please consult your tax advisor about your options regarding this account. Your decisions may affect the amount of income tax you owe or be subject to IRS penalties.
Assert Control of Your Safe Harbor IRA with The Bancorp Bank
Until you present yourself to us and assert control over your account, we will maintain your Safe Harbor IRA with The Bancorp Bank with no tax penalties. In order to assert control of your IRA with The Bancorp Bank, please download, sign, notarize, and mail the Safe Harbor IRA Application and Adoption Agreement to the address listed below. Completion of this form will help us verify your identity. You will then have the option of requesting a cash out distribution or a rollover into another retirement account that you may have. Until then, your deposits will be FDIC insured up to $250,000. The Schedule of Fees and rate information can be found below and additional information about your account and your options are included in the following webpages:
Traditional Safe Harbor Forms:
Traditional Safe Harbor IRA Application and Adoption Agreement
Traditional Safe Harbor IRA Disclosure Statement
Traditional Safe Harbor IRA Form 5305 Automatic Rollover Individual Retirement Trust Account
Roth Safe Harbor Forms:
Roth Safe Harbor IRA Application and Adoption Agreement
Roth Safe Harbor IRA Disclosure Statement
Roth Safe Harbor IRA Form 5305 Automatic Rollover Individual Retirement Trust Account
The Bancorp Consumer Privacy Notice
The Bancorp Bank
ATTN: Retail Operations
409 Silverside Rd. Suite 105
Wilmington, DE 19809
Rollover Funds/Distribute Funds
If, at the time you assert control over your account, or any time thereafter, you choose to have your funds distributed from your rollover IRA, please complete our IRA Request for Distribution Form. Using this form, you can have the funds transferred to another financial institution or distributed directly to you, the account holder. In order to help simplify and expedite this process, the form also includes our Checklist of Documents To Be Returned. The checklist provides the necessary documentation you will need to supply to us, as well as instructions for completing the IRA Request for Distribution Form.
Please complete all applicable sections of the IRA Request for Distribution Form and fax it to 302.791.5788. Processing begins upon receipt of all required documents.
Please note that the distribution of funds from your IRA will be reported to the Internal Revenue Service (IRS) on a Form 1099-R. In accordance with IRS regulations, you may be required to pay taxes and/or a penalty on withdrawn funds. For details on taxation and penalties, we recommend you contact a tax advisor or the IRS directly.
Right of Revocation
You have the right to revoke the Safe Harbor IRA as described in the Disclosure Statement and Safe Harbor IRA Application and Adoption Agreement. This revocation right must be exercised within seven (7) days of the “Opening Date” or ten (10) days from the date the original Welcome Kit was mailed to you, whichever is later. If you exercise your revocation right, the Bank may return any funds in the Safe Harbor IRA to you after you submit the necessary identification documents and they are verified by the Bank. If you do not exercise your revocation right, it is assumed that you have accepted the terms and conditions of the Account.
Below is the Schedule of Fees associated with the account:
Schedule of Fees
|Account Closing Fee
(Fee assessed when you distribute or rollover your balance and close the Safe Harbor IRA. This Fee will not be charged if you revoke the Safe Harbor IRA within seven (7) days of the Opening Date or ten (10) days from the date Bank mails your original Welcome Kit, whichever is later.)
(Fee assessed annually to maintain the Safe Harbor IRA account.)
(Fee assessed when the first deposit is made to the account. This Fee will be reimbursed if you revoke the Safe Harbor IRA within seven (7) days of the Opening Date or ten (10) days from the date Bank mails your original Welcome Kit, whichever is later.)
Legal Processing Fee
(for example, processing subpoenas, garnishments, levies)
|Lesser of $175.00 or the maximum permitted by law.
|Fees Related to Disbursement Methods (in addition to Account Closing Fee, if any):
| Check made payable to account holder
| Electronic funds transfer (ACH)
| Treasurer’s check to another financial institution (costs include transfer paperwork, if required by receiving institution)
| Expedited delivery services (overnight delivery)
|The Bancorp Bank Account Minimum Balance Requirements
|Default Investment Vehicle
||FDIC-insured Money Market Account
|Early Withdrawal Fee- Prior to age 59 1/2
||No Bank fees, but may be subject to IRS penalty and/or be subject to standard Federal withholding
|Customer Call Center
|Customer Web Site
The account is currently earning interest. Please see the interest information available below.