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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.

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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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