ACCOUNT DISCLOSURE STATEMENT 

(Under section 408(a) of the Internal Revenue Code) 

PURPOSE OF THIS DISCLOSURE STATEMENT 

The Internal Revenue Code (Code) requires that Digital Trust, LLC (Custodian) provide individuals establishing a SIMPLE Individual Retirement Account (SIMPLE IRA) with the information contained in this Disclosures document. This Disclosure document is intended to provide information to help you understand your IRA Account. This Disclosure document cannot cover every rule in the IRS Code and Custodian encourages you to refer to IRA Publications 590-A and 590-B and consult with a tax professional when necessary. Publications 590-A and 590-B will also provide insight to changes for the upcoming tax year.

You should read and complete the SIMPLE IRA Application (Application) which includes the Account Agreement provisions above along with the IRA Account Application, the Fee Schedule and the SIMPLE IRA Custodial Account Disclosures documents together as one which have been presented to the Account Owner prior to executing the Application. The IRS requires your Custodian to provide you, the Account Owner, with this Disclosure document.

DISCLOSURES 

1. Information.

You can set up a SIMPLE IRA with a bank or other financial institution, life insurance company, mutual fund or stockbroker. The firm that sets up your SIMPLE IRA is your Custodian. Digital Trust, LLC is the only Custodian of this IRA Account you are establishing.

2. Important Information About Procedures for Opening a New Account.

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

3. Revocation of SIMPLE IRA.

You have the right to revoke this SIMPLE IRA Account within seven (7) days of the date your SIMPLE IRA Account is established. If you exercise this right you are entitled to a return of the amount contributed to the IRA without penalty, service charge or administrative expenses. Please note, as Custodian, we must report on the appropriate IRS form both the contributions made to the account and the amount returned to you, however, this is not required if funded by a non-reportable transfer. If you do not exercise this right within seven (7) days of the date your SIMPLE IRA Account is established, it is assumed that you will have accepted the terms and conditions of the IRA you have established. If you choose to initiate an Investment Direction prior to the expiration of the seven (7) day period, this will signify you have declined this revocation right. Notice should be provided to the Custodian in writing through first class mail and must be postmarked within seven (7) days of the Account establishment date if you decide to revoke your Account. Revocation Notices can be mailed to: Digital Trust, LLC, 7336 W. Post Road, Ste 111, Las Vegas, NV 89113

4. Contributions.

a. Compensation. In order to contribute to an IRA, you must have earned income/compensation. According to the IRS, wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. An amount you receive that is a percentage of profits or sales price is compensation. For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. If you were a member of the U.S. Armed Forces, compensation includes any nontaxable combat pay you received.

b. SIMPLE IRA Account. Form 5304-SIMPLE or Form 5305-SIMPLE is used by an employer to make an agreement to provide benefits to all eligible employees under a SIMPLE described in section 408(p). FORM 5304-SIMPLE is used if the employer wants to allow each employee to select the financial institution for receiving plan contributions. Form 5305-SIMPLE is used if the employer wants to require that all plan contributions initially go to the same financial institution. Your SIMPLE IRA Account is set up for your employer to make contributions to. Your employer is generally required to make either matching contributions or nonelective contributions to your plan every year.

c. Contribution Limits For 2025.

• i. Salary Reduction Contributions. The contribution limit is $16,500 ($20,000 if you are age 50 or older*). Pursuant to a change made in SECURE 2.0, individuals can contribute a higher amount to certain applicable SIMPLE retirement accounts. For 2025, this higher amount remains $17,600. Under a change made in SECURE 2.0, a different catch-up limit applies for employees aged 50 and over who participate in certain applicable SIMPLE plans. For 2025, this limit remains $3,850. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans. For 2025, this higher catch-up contribution limit is $5,250. If you participate in any other qualified plan during the year and you have a salary reduction contribution for that plan, your SIMPLE contributions count towards the annual overall limit of $20,000. This contribution limit is subject to an annual cost-of-living adjustment by the IRS from year to year and you should check the IRS site for updated information each year. * The IRS allows for a “catch up contribution” of $3,500 only for taxpayers aged 50 or over. However, the catch up contribution you can make for a year cannot exceed the lesser of 1) The catch up contribution limit. 2) The excess of your compensation over the salary reduction contributions that are not catch up contributions.
• ii. Employer Matching Contributions. Employers are generally required to match your salary reduction contributions on a dollar-for-dollar basis up to 3% of your compensation. This only applies if you have elected to make contributions. Employers may choose a lower matching contribution percentage. However, the amount must be at least 1% and the employer must notify you of the lower match within a reasonable period of time before the 60-day election period for the calendar year.
• iii. Nonelective Contributions. Instead of matching contributions, an employer may make nonelective contributions of 2% of your compensation as long as your compensation is at least $5,000. Only $350,000 of your compensation can be taken into account to figure the contribution limit.

d. Tax Treatment of Contributions. Employer contributions to your SIMPLE IRA can be excluded from your gross income. However, salary reduction contributions are subject to social security, Medicare, and FUTA taxes. Matching and nonelective contributions aren’t subject to these taxes. 

e. Contribution Deadline. The employer must deposit salary reduction contributions no later than 30 days after the end of the month in which you would have received the funds. Employers must deposit matching contributions or nonelective contributions no later than the due date (including extensions) of the employer’s federal income tax return deadline.

5. Distributions.

a. Distributions Generally. Distributions from your SIMPLE IRA will be processed by the Custodian upon direction from the Account Owner in a manner that is acceptable to the Custodian. Custodian is not responsible for acting on instructions that were provided in error or that do not provide all the required information. If you direct the Custodian to distribute from your SIMPLE IRA Account before you have reached the age of 59½, the IRS describes these as “premature” or “early” distributions. These distributions are subject to a 10% early withdrawal tax which is in addition to the income tax that must be paid on the distribution. There are a number of exceptions to this 10% early withdrawal tax. For example, individuals that are disabled or first-time homebuyers or a qualified reservist are among those not subject to this additional tax. Please consult with a tax advisor for guidance on your distribution situation. Taxable distributions from your IRA are taxed as ordinary income. You can elect to have Federal Tax withheld at the time of distribution. State taxes will be withheld for the required states according to the state’s guidelines. The Custodian’s distribution form will provide the elections available.

b. Required Minimum Distributions. For IRAs (including SEP and SIMPLE IRAs) you must start taking distributions from your IRA by April 1 of the year following the calendar year in which you reach age 73. For each year after your required beginning date, you must withdraw your RMD by December 31st. If you take your initial RMD between January 1st and April 1st, you will have two required distributions for the year as the second RMD is due by December 31st. To avoid having to report two distributions for the same tax year, you can take your first RMD by December 31st of the year you turn 73. If you do not take any distributions, or if the distributions are not large enough to satisfy the requirement, you may have to pay a 50% excise tax on the amount not distributed as required. If you have more than one IRA that is subject to the RMD rule, you can satisfy the requirement by taking the distribution out of one of the IRAs or multiple IRAs as long as the required distribution will be satisfied. For additional information including the amount required to be distributed, please see IRS Publication 590- B. The SIMPLE Individual Retirement Custodial Account Agreement also had additional information on RMDs in Section IV.

c. Distributions Under Divorce, Levys and Similar Court Directives. In the event that the Custodian is presented with a Court Order to distribute all or part of your IRA due to divorce, Custodian will transfer the assets into an IRA account of the receiving spouse. The portion or amount transferred will have no tax implications to you if the Court Order is received and acceptable to the Custodian. The Custodian reserves the right to request additional information from you or your former spouse to carry out such orders. In some instances, such as a levy or a court order, the Custodian may make a distribution from the IRA Account without instruction from the Account Owner. In those cases, the distribution may be reportable to the IRS as a taxable event.

d. Rollovers. Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute to another retirement plan. This rollover must be completed within sixty (60) days from the date you received the payment or distribution. There are several exceptions to this sixty (60) day rule; however, you are required to provide your Custodian with a certification, meeting the IRS requirements, indicating you are eligible for one or more of these exceptions. The contribution to the second retirement plan is called a “rollover contribution.” Common rollovers to a SIMPLE IRA come from: a.) A traditional IRA. b.) An employer’s qualified retirement plan for its employees. c.) A deferred compensation plan of a state or local government (section 457 plan). d.) A tax-sheltered annuity plan (section 403 plan). NOTE: Rollovers from Traditional IRAs or SEP-IRAs into or out of a SIMPLE IRA can only take place after two (2) years. The 2-year period begins on the first day on which your employer deposits contributions in your SIMPLE IRA. Rollovers between two SIMPLE IRAs are not subject to the two (2) year waiting period. Rollovers from Traditional IRAs, SEP-IRAs and SIMPLE IRAs into Roth IRAs must be included in your income for that year. The SIMPLE IRAs are subject to the two (2) year waiting period. Amounts that must be distributed during a particular year under the RMD rules (discussed in Pub. 590-B) aren’t eligible for rollover treatment.

e. One-rollover-per-year limitation. You can make only one rollover from an IRA to another (or the same) IRA in any 1-year period regardless of the number of IRAs you own. The limit will apply by aggregating all of an individual’s IRAs, including SEP and SIMPLE IRAs as well as traditional and Roth IRAs, effectively treating them as one IRA for purposes of the limit. However, trustee-to-trustee transfers between IRAs aren’t limited and rollovers from traditional IRAs to Roth IRAs (conversions) aren’t limited. The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA.

f. Property Rolled Over. If property is distributed to you from your IRA and you complete the rollover by contributing property to an IRA, your rollover is tax free only if the property you contribute is the same property that was distributed to you. For example: if you received cash from your IRA and roll it over to an eligible account, the rollover contribution into the eligible account must be in cash.

g. Partial rollovers. If you withdraw assets from a SIMPLE IRA, you can roll over part of the withdrawal tax free and keep the rest of it. The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). The amount you keep may be subject to the 10% additional tax on early distributions as described above.

6. Investments.

a. Investments-No Duty to Review or Monitor Investments. The Custodian shall have no duty or responsibility to review any investment held in the IRA Account or any investment under consideration by the Account Owner or any purchase directed by the Account Owner with respect to any issue, including but not limited to, its safety, risk, suitability or whether or not it should be registered as a security with the appropriate government agencies and shall have no liability with respect to its safety, risk, suitability or whether or not it should be registered as a security with the appropriate government agencies. The Custodian shall not be responsible to investigate or perform any due diligence on any investment, investment sponsor or any principal involved with any investment. Further, the Custodian has no duty to monitor any investment held in the IRA Account. Under this agreement the Custodian provides Custody Services for the assets selected by the Account Owner. Custodian acts on the Investment Directions provided by the Account Owner and has no responsibility for the performance or suitability of the assets selected by the Account Owner. Acting on the Account Owner’s Investment Direction in no way implies endorsement by the Custodian of the assets selected by the Account Owner. The Custodian has no responsibility, authority, or discretion for the selection, purchase, sale, monitoring, or continued holding of any investment in the IRA Account. At its sole discretion, the Custodian can refuse to act as Custodian on any asset selected by the Account Owner.

b. IRA Owner Investment Responsibility. The Account Owner has the full responsibility to review and investigate the assets they direct the Custodian to invest in for their IRA Account. It is the Account Owner’s responsibility, not the Custodian’s, to select and monitor the investments in the IRA Account. The Account Owner has the sole responsibility, authority and discretion for the selection of any and all investments in the IRA Account and accepts full and sole responsibility for such selection. Further, the Account Owner is fully and solely responsible for monitoring any and all investments in the IRA Account and accepts full and sole responsibility for the success or failure of such investments. The Custodian has no responsibility, authority, or discretion for the selection, purchase, sale, monitoring, or continued holding of any investment in the IRA Account. It is the Account Owner’s responsibility to investigate and understand the nature of the investments and risks involved with the investments chosen by the Account Owner.

c. Pledging IRA Assets. If you use (pledge) a part of your SIMPLE IRA account as security for a loan, that part is treated as a distribution and is included in your gross income. You may have to pay the 10% additional tax on early distributions discussed in item 8.) above and in IRS Publication 590-B.

d. Prohibited Investments. The IRS Code does not permit IRA funds to be invested in life insurance or collectibles. The IRS considers the following items as collectibles: artwork, rugs, antiques, metals, gems, stamps, coins, alcoholic beverages, and certain other tangible personal property. The IRS has indicated that there are some exceptions as noted here: Roth IRAs can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or one-ounce silver coins minted by the Treasury Department. It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. If you invest your Roth IRA in collectibles, the amount invested is considered distributed in the year invested and you may have to pay a 10% additional tax on early distributions.

e. Prohibited Transactions. Generally, a prohibited transaction is any improper use of your SIMPLE IRA account by you, your beneficiary, or any disqualified person. Disqualified persons include members of your family (spouse, ancestor, lineal descendant, and any spouse of a lineal descendant). If you or your beneficiary engages in a prohibited transaction in connection with your IRA account at any time during the year, the account stops being an IRA as of the first day of the year in which the prohibited transaction occurs. The IRA Account is treated as distributing all its assets to the Account Owner at their fair market value(s) on the first day of the year in which the prohibited transaction occurs. If the IRA Account ceases to qualify as an IRA because of a prohibited transaction by you or your beneficiary, you may have a taxable gain that is reportable as income. In addition, you or your beneficiary may have to pay other taxes. Some examples of prohibited transactions include buying property within your IRA Account for personal use, using the IRA Account as security for a loan and borrowing money from your IRA. Prohibited transactions are described in Internal Revenue Code (IRC) Section 4975. It is the Account Owner’s responsibility and not the Custodian’s responsibility to determine if a transaction constitutes a prohibited transaction. The Custodian reserves the right to request a certification from the Account Owner that the direction provided by the Account Owner does not create a prohibited transaction, however, if a certification is not requested that does not indicate a transaction is not prohibited. Custodian reserves the right to take any action necessary, within its discretion, which may include resigning from the IRA Account.

7. Inherited IRAs/Beneficiaries.

Account Owner’s should review and update their IRA Account beneficiaries by providing the Custodian with a completed Beneficiary Designation Form. This is especially important after life changes such as marriage, divorce, death, and birth or adoption of children. If you inherit an IRA, you are called a beneficiary. A beneficiary can be any person or entity the Account Owner chooses to receive the benefits of the IRA after he or she dies. Beneficiaries of the IRA must include in their gross income any taxable distributions they receive.

a. Inherited From Spouse. If you inherit a SIMPLE IRA from your spouse, you generally have the following three choices. You can do one of the following: a.) Treat it as your own IRA by designating yourself as the Account Owner b.) Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). c.) Treat yourself as the beneficiary rather than treating the IRA as your own. If you make contributions (including rollover contributions) to the inherited IRA or if you don’t take the RMD for a year as the beneficiary of the IRA, you will be considered to have chosen to treat the IRA as your own. You will only be considered to have chosen to treat the IRA as your own if: a.) You are the sole beneficiary of the IRA, and b.) You have an unlimited right to withdraw from it. However, if you receive a distribution from your deceased spouse’s IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution isn’t an RMD, even if you aren’t the sole beneficiary of your deceased spouse’s IRA. See Publication 590-B for more information on RMDs.

b. Inherited From Someone Other Than Spouse. If you inherit a SIMPLE IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. This means that you can’t make any contributions to the IRA. It also means you can’t roll over any amounts into or out of the inherited IRA. However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. See Pub. 590-B for more information. Like the original owner, you generally won’t owe tax on the assets in the IRA until you receive distributions from it. You must begin receiving distributions from the IRA under the rules for distributions that apply to beneficiaries. Beneficiaries of an inherited IRA must generally begin receiving required minimum distributions by December 31 of the year following the year of the deceased person’s death.

8. No Tax, Legal or Investment Advice.

In its role as Custodian, Digital Trust, LLC does not provide any tax, legal or investment advice. It is your responsibility as the Account Owner to consult with your investment or tax advisor. The Custodian shall act on the Account Owners directions for transfers, investments and distributions of Fiat when the Account Owner has submitted directions in the manner required by Custodian. The Custodian is not responsible for losses or damages resulting from the delay of acting on a direction if the direction is unclear, incomplete and not in acceptable form to the Custodian. Additionally, the Custodian is not responsible for the performance of the assets selected by the Account Owner. Under this agreement the Custodian provides Custody Services for the assets selected by the Account Owner. Custodian acts on the Investment Directions provided by the Account Owner and has no responsibility for the performance or suitability of the assets selected by the Account Owner.