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Can someone please tell me what this form is and why I have to fill it out to open my Roth IRA with Datek? Who is the trustee? On the ask a foolish question board, they thought it had something to do with a SEP IRA, but it's only required by Datek for ROTH IRAs, not for traditional, rollover, or SEP IRAs. Thanks in advance for the help. I'm 26 and I should have started my IRA a few years ago, but it's better late than never.


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Greetings, jhjhjh8, and welcome. You asked:

<<Can someone please tell me what this form is and why I have to fill it out to open my Roth IRA with Datek? Who is the trustee? >>

Datek will be your custodian/trustee, and the form is simply a model Roth IRA agreement that has been approved by the IRS. For information on the form, go to the IRS site and look it up at http://www.irs.ustreas.gov/forms_pubs/forms.html.

Regards..Pixy
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<< ...Datek will be your custodian/trustee, and the form is simply a model Roth IRA agreement that has been approved by the IRS. For information on the form, go to the IRS site and look it up at http://www.irs.ustreas.gov/forms_pubs/forms.html.
Regards..Pixy >>

Hi, can someone tell me the difference between the 5305-R and the 5305-RA ? Both seem to be model IRA agreements, and virtually identical except that one establishes a trustee for the account while the other establishes a custodian. I don't understand the difference. I am in the process of opening a Roth IRA account with datek, and they require the 5305-R which establishes a "trustee". For my Waterhouse IRA, all off my statements are marked "TD Waterhouse Bank Custodian" , and I don't believe they had me fill out any kind of a 5305 form. I have a written "Custodial" agreement from Waterhouse, and I read a "Trust Agreement and Disclosure Statement" online when I filled out Datek's online application.

Should I be concerned that Waterhouse refers to itself as "Custodian", while Datek uses a form which appoints a "Trustee" for the account ? Whats the difference, and should I be worrried about this ?

One more thing : What does the form mean when it says "Check if Amendment ?". What is an amendment ?

Thanks in advance.
Tabletennis
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Tabletennis writes in part:

Hi, can someone tell me the difference between the 5305-R and the 5305-RA ? Both seem to be model IRA agreements, and virtually identical except that one establishes a trustee for the account while the other establishes a custodian.

<snip>

Should I be concerned that Waterhouse refers to itself as "Custodian", while Datek uses a form which appoints a "Trustee" for the account ? Whats the difference, and should I be worrried about this ?

One more thing : What does the form mean when it says "Check if Amendment ?". What is an amendment ?


For all intents and purposes, legally there is no real difference as far as you personally are concerned whether you have a trustee or a custodian. Both must exercise the same fiduciary responsibilities towards the account and you under the law. Essentially, a trustee administers the account of a grantor and a custodian holds the account of a depositor. You need not be concerned about the legal difference between the two as far as your assets go.

IIRC, the amendment block would be used in the event any additions or modifications to that IRS-preapproved form are made by the custodian/trustee.

Regards..Pixy

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Pixy,

Thanks for the info !
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