Individual Retirement Accounts
Reynolds Blue Chip Growth Fund offers three different types of IRAs. Upon creation of an IRA, you must designate whether the IRA will be a Traditional IRA, a Roth IRA, or an Education IRA. (In addition, there are SEP-IRAs and SIMPLE IRAs, which are discussed in the Disclosure Statement for Traditional IRAs in the IRA Info Kit.)
In a Traditional IRA, amounts contributed to the IRA may be tax deductible at the time of contribution. Distributions from the IRA will be taxed at distribution except to the extent that the distribution represents a return of your own contributions for which you did not claim (or where not eligible to claim) a deduction.
In a Roth IRA, amounts contributed to your IRA are taxed at the time of contribution, but distributions from the IRA are not subject to tax if you have held the IRA for certain minimum periods of time (generally, until age 59-1/2 but in some cases longer).
In an Education IRA, you contribute to an IRA maintained on behalf of a beneficiary and do not receive a current deduction. However, if amounts are used for certain educational purposes, neither you nor the beneficiary of the IRA are taxed upon distribution.
Each type of IRA is a custodial account created for the exclusive benefit of the beneficiary you (or your spouse) in the case of the Traditional IRA and Roth IRA, and a named beneficiary in the case of an Education IRA. U.S. Bancorp Fund Services, LLC serves as custodian of the IRA. Your, your spouse’s or your beneficiary’s (as applicable) interest in the account is nonforfeitable.
For more information, please download the IRA Information Kit.