Skip to main content
No. of Recommendations: 0
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.


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.


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.