An IRS Form 5498 reports the total annual contributions to an IRA account and identifies the type of retirement account you have, such as traditional, Roth, SEP or SIMPLE IRA. Form 5498 also tells you the fair market value of all the investments in your IRA account as of December 31st of the preceding year.

If you received a Form 5498 from PenChecks Trust, we are holding an IRA account for you. The short video above illustrates one of the most common ways PenChecks Trust comes to be the protector of automatic rollover accounts for people with unclaimed retirement funds.

An IRS Form 1099-R reports retirement benefit distributions (payments) from pensions, annuities, or other retirement plans. A Form 1099-R also indicates if your distribution was taxable and/or may be subject to any penalties.

Each year PenChecks is engaged by plan sponsors, third party administrators, and other financial institutions to process benefit payments to their retirement plan participants. You would have received a 1099-R if you got a distribution of $10 or more from a retirement plan during the year. The name of the retirement plan (or your former employer) that initiated the distribution for you will appear below your name on the Form 1099-R.

If your former employer could not locate you, as illustrated in the video above, they may have engaged PenChecks Trust to process a distribution out of your old retirement plan into an automatic rollover IRA for you. If so (and your IRA was still active on December 31st), you would have received both documents from PenChecks Trust:

• A Form 1099-R for the distribution out of your retirement plan
• A Form 5498 reporting the value of your IRA at the end of the year

If you received both forms, please follow the directions in the next section to ensure you take the appropriate action(s) regarding these forms.

If you received a Form 5498, you have three options with respect to your IRA account at PenChecks Trust:

1. You may leave your retirement funds in your IRA Account with PenChecks Trust. We will continue to provide custodial and record-keeping services, including the crediting of monthly interest. If you would like to diversify your investment choices from the current Federally-allowed default investments, we can assist you with this.
2. You may request a rollover distribution of your funds and have them transferred:

   a) to another existing IRA you currently own (if you do not have another IRA and would like to establish one, PenChecks Trust can help you with this), or

   b) to a new employer’s qualified plan that accepts the rollover of retirement funds.

3. You may request that your IRA funds be paid directly to you. If you choose this option, the funds will be subject to federal withholding and income taxes as well as state withholding taxes (if applicable).

If you choose to exercise options 2 or 3 above, you can request a distribution of your funds in one of two ways:

ONLINE

• Go to the following secure site: www.MyBenefitElection.com/MyIRA
• Select the “Inquiry” section
• Enter your first and last name (exactly as they appear on the Form 5498) and your social security number
• You will be able to enter benefit election details and submit the required information through the secure online portal

PHONE

• Call toll-free (844) 44-MY-IRA
• You will be able to request paper benefit election forms which may be completed and returned to us for processing.

If you have questions or would like further assistance, please contact us toll-free at (844) 44-MY-IRA or email myira@penchecks.com.

If you received a Form 1099-R from PenChecks Trust, you need to include this information with your personal tax filing for the tax year indicated on your Form 1099-R. The code in Box 7 on your Form 1099-R will determine if your distribution is taxable. The most common Box 7 codes are 1, 7 & G.

• Code 1 – Early Distribution: Typically a taxable distribution where the recipient is under age 59 ½ and may be subject to an additional early withdrawal tax of 10%.
• Code 7 – Normal Distribution: Typically a taxable distribution where the recipient is over age 59 ½.
• Code G – Direct Rollover: Regardless of age, is a distribution from a qualified plan to another eligible retirement plan. Typically there are no immediate tax consequences.

*For detailed information about all of the data contained on a 1099-R and its implications, see www.irs.gov/pub/irs-pdf/i1099r.pdf.

*Please note: You should always consult a tax professional for advice on your specific situation.

If you have questions about the distribution you received, your 1099-R from PenChecks Trust, or if you need a duplicate copy of your 1099-R, you can reach a Participant Services representative here:

• Phone: (800) 541-3938
• Email: info@penchecks.com

NOTICE TO ACCOUNT HOLDERS

In accordance with Section E.8 of the PenChecks Trust Company of America Automatic Rollover and Missing Participant Individual Retirement Account Custodial Agreement or PenChecks Trust Client Services Agreement and Statement of Services and Fees, please be advised of the following change:

Beginning February 15, 2021, PenChecks Trust is improving its Express, Enhanced, and Premier IRA Programs. PenChecks Trust will continue to provide its Bank Deposit Program (“BDP”) during the first twelve (12) months that an Automatic Rollover or Missing Participant IRA is with PenChecks Trust. After the first twelve (12) months, PenChecks Trust now offers the Stable Value Program (“SVP”). The SVP allows the Participant Account Holder or Sponsor to direct PenChecks Trust to invest the Automatic Rollover and Missing Participant IRA in the Guaranteed Fixed Income Fund offered by the Standard Insurance Company pursuant to the agreement between PenChecks Trust and The Standard.

PenChecks Trust shall receive the same fee within the SVP as it receives within the Bank Deposit Program. Each month, to the extent that the Standard Guaranteed Fixed Income Fund pays interest in amounts in excess of the National FDIC Jumbo Money Market rate for the applicable month, the SVP Fee shall be equal to the lesser of (i) 1/6 of 1% of the IRA account balance as of the end of the month or (ii) 1/12 of the annualized interest rate paid by the Standard Guaranteed Fixed Income Fund for the month in excess of the National FDIC Jumbo Money Market Rate.

If you do not wish to participate in the PenChecks Trust Stable Value Program, you must claim your account within 30 days after the one-year anniversary of your PenChecks Trust Automatic Rollover or Missing Participant IRA. Participants who fail to claim their account by the aforementioned date consent to this change.

For a full copy of the PenChecks Trust Company of America Automatic Rollover and Missing Participant Individual Retirement Account Custodial Agreement or Client Services Agreement, please contact PenChecks Trust at 800-541-3938.