Scheduled ACH IRA Distribution Form

Important IRA Distribution Information:

What is a distribution? A distribution is a withdrawal or removal of cash or in-kind assets from your IRA account. Distributions from an IRA are reported to the IRS on tax form 1099-R and may be taxable depending on your age, IRA type, tax status, who the funds are going to, etc. Solera National Bank does not provide tax advice nor can confirm if this transaction will be taxable. We highly recommend you consult your tax advisor before proceeding.

Can I take a distribution from my LLC/Trust checking account? Solera National Bank is unable to report any checking account transactions to the IRS on tax forms 1099-R and 5498. If you issue funds from your checking account as a distribution you may be required to submit additional paperwork to your tax advisor. To ensure it is coded through your IRA by Solera National Bank please submit the distribution form to our IRA Team for further processing of the distribution and our team will confirm with you when complete. Then, Solera National Bank will report the distribution to the IRS on your behalf on tax form 1099-R.

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Requirement Number One: Full Amount of Funds Available

The withdrawal of funds will automatically be done based on the schedule you provide. To prevent overdrafts in your IRA, the full amount of the funds must currently be available to cover the scheduled ACH withdrawals. The full amount of the funds will be on hold in your IRA for the scheduled ACH withdrawals. For example, if you are scheduling monthly distributions of $100 for 5 months, $500 needs to be available in your account at the time of your request. We will hold the full amount of $500 in your iRA and $100 will automatically be withdrawan for the next 5 months.

Requirement Number Two: Schedule is Within the Same Calendar Year

The withdrawal schedule for your ACH IRA Distributions must be within the same calendar year. You cannot request distributions for the upcoming year. A new form will need to be submitted at the start of the new year if you wish to schedule ACH IRA Distributions for that year.

By continuing, you are requesting to move the following assets (cash and/or in-kind) from the IRA-owned entity checking account to the IRA to complete your distribution request. 

Please provide a signed, detailed schedule that includes the exact dates and exact amounts for the scheduled ACH IRA Distributions. See the examples below for reference. You can also submit the ACH IRA Distribution Schedule Addendum.

The distributions you receive from your individual retirement account are subject to federal income tax withholding unless you elect not to have withholding apply. You may elect not to have withholding apply to your distribution payments by completing the “Withholding Election” section below.

If you elect to not have withholding, or if you do not have enough federal incoming tax withheld from your distribution, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient.

If you elect to withhold, you must withhold at least 10% of the distributions total value. An additional fee of $25 will be incurred if you elect to withhold unless you are taking a Required Minimum Distribution.

International distributions may have additional requirements.

State withholding is not supported. Speak with your tax professional for guidance.

I certify that I am the IRA account owner, the beneficiary, or individual legally authorized to complete this form and the proper party to receive payment(s) from the IRA. I certify that all information provided on this form is true and accurate. I acknowledge that I have read the above Tax Withholding Notice and have completed the withholding election above, which will remain in effect until revoked. I understand that I am responsible for any consequences resulting from this distribution, including taxes and penalties owed. I also accept responsibility for maintaining the appropriate cash balance for any recurring distributions. I understand that processing this request may result in applicable fees and account termination. By signing below, I certify that the valuation provided separately to Solera National Bank for any in-kind assets is true and correct to the best of my knowledge and that Solera may rely on the valuation for reporting purposes. I accept all responsibilities regarding this valuation. I certify that Solera National Bank has not provided me with tax, investment, or legal advice; and I will indemnify Solera National Bank, its affiliates, successors, and assignors, from all liability arising from this distribution request. I agree that all decisions regarding this are my own and assume responsibility for any consequences that may arise. My signature serves as legal authorization granting Solera National Bank authority to process this distribution request.