IRA / HSA / ESA Library
Advanced intelligence in compliance documentation
CSi’s IntelleDoc Solutions™ for Tax-Favored Accounts (TFA) automatically address the compliance challenges associated with IRA, HSA, and ESA transactions. Based on information provided about the customer, financial institution, and transaction, CSi IntelleDocs automatically select the correct document and only the relevant information appears on the IntelleDoc.
Warranted in all fifty states, CSi’s Tax-Favored Account Library provides comprehensive, extremely flexible documentation unmatched in the industry. CSi’s five TFA IntelleDocs support Traditional/SEP, Roth and SIMPLE IRAs; Health Savings Accounts (HSAs); and Coverdell ESAs. In the static document environment, other providers require institutions to manage over 100 documents to support the same transactions IntelleDocs support with just five dynamic documents. The five IntelleDocs for Tax-Favored Accounts are summarized below.
TFA Plan Agreement
Governing the contractual relationship between the TFA owner and the financial institution, the Plan Agreement is a key account establishment document. Based on the IRS Model 5305 series of documents, CSi adds proprietary language that addresses additional provisions including investment responsibilities, authorized agents, operational procedures, notice requirements, fees and charges, resignation procedures, plus other key rights and responsibilities under the Agreement. IntelleDocs also permit financial institutions to easily add additional language to the Agreement as they deem necessary. The IntelleDoc Plan Agreement accommodates both Trust and Custodial versions and includes all ten Agreements used to support Traditional, Roth and SIMPLE IRAs, Coverdell ESAs, and HSAs.
Disclosures
Disclosure Statements are plain language explanations of the IRA, ESA, or HSA rules and operational issues and are used in the account opening process. Where applicable, Disclosure Statements also explain the 7-day revocation process. The IntelleDoc Disclosure accommodates both Trust and Custodial versions and includes disclosures for Traditional, Roth and SIMPLE IRAs, Coverdell ESAs, and HSAs.
The IntelleDocs also incorporate the financial disclosure requirements based on specific IRS guidelines. The assumptions incorporate the specific characteristics of the financial institution’s investment products (e.g., compounding method, interest rate, etc.) used to fund the IRA.
Contribution Document
The Contribution Document accommodates all transactions involving money being placed in an IRA, ESA, or HSA. Based on the information provided about the transaction, the IntelleDocs select the correct text to assemble a document for an application, rollover, transfer, conversion, contribution, or recharacterization. The IntelleDoc contains the correct reporting information, certifications, elections, investment information, and strong indemnification and acknowledgement statements that pertain to the specific type of transaction. Although Simplified Employee Pension (SEP) Plan contributions are made by employers to employees’ Traditional IRAs, the IntelleDocs permit separate tracking of SEP activity.
Distribution Document
The Distribution Document accommodates all transactions involving money being withdrawn from an IRA, ESA, or HSA. Based on information provided about the distribution, the IntelleDoc selects the correct text to assemble an accurate distribution document. The Distribution IntelleDoc accommodates various requestors (e.g., owner, beneficiary, responsible individual, etc.) and contains correct reporting information, asset liquidation instructions, distribution methods, elections, withholding information, and strong indemnification and acknowledgement statements that pertain to the specific type of distribution.
Account Maintenance Document
The Account Maintenance Document is used to add, change, or delete parties to the Agreement, such as death beneficiaries, or certain Coverdell ESA parties, such as the Designated Beneficiary or Successor Responsible Individual. In states where applicable, spousal consent language is included and strong indemnification and acknowledgement statements pertaining to the specific designation completes each document.
Contact CSi today at info@compliancesystems.com to learn how CSi IntelleDoc Solutions for Tax-Favored Accounts can help your institution meet its business challenges.
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