SEP IRA Simplified Employee Pension Plan. SIMPLE IRA Savings Incentive Match Plan for Employees of Small Employers

Transcription

1 Saturna Capital Employer-Sponsed IRAs SEP IRA Simplified Employee Pension Plan SIMPLE IRA Savings Incentive Match Plan f Employees Small Employers

2 Table Contents Which plan is best f your company?...3 Comparing Your Choices...5 SEP Features...6 Step by Step Setting Up a SEP...7 Saturna Capital SEP-IRA Application...8 IRS Fm IRS Fm 5305-SEP Saturna SEP Allocation Fm Saturna IRA Transfer Fm...15 SIMPLE Features...16 Step by Step Setting Up a SIMPLE...17 Saturna Capital SIMPLE-IRA Application...18 IRS Fm 5305-SA IRS Fm 5305-SIMPLE Employer Plans 2

3 The Saturna Advantage Open your IRA with Saturna and take advantage : A Wide Range Investment Choices We fer a selection Saturna no-load mutual funds with a variety investment objectives. By investing in me than one fund, you can tail your retirement account to reflect your own risk and return objectives. In addition, in a self-directed Saturna Brokerage account, you can purchase stocks, bonds, fixed income securities including CDs and US Treasurys, plus a wide range unaffiliated mutual funds. Personalized Service At Saturna Capital, we help make saving f retirement easy. Our staff is dedicated to helping you with your retirement questions. Your trained account representative will help you customize your retirement savings strategy. You can even invest automatically from your bank account to your Saturna mutual fund IRA. Any way you choose to invest, you ll get one consolidated statement to track your retirement ptfolio. IRAs with Saturna s No-Load Mutual Funds If you invest in any Saturna s affiliated no-load mutual funds, we will not charge you any account opening, maintenance, custodial fees on your IRA account (mutual fund expenses do apply). Investments in mutual funds are subject to ongoing expenses that shareowners pay indirectly. Please consult a fund s prospectus summary prospectus f me details. Self-Directed Brokerage Option If you wish to purchase non-saturna mutual funds, stocks, bonds, limited partnerships, write covered call options on stocks you own as part your retirement investments, we fer Self-Directed brokerage accounts. Self-Directed brokerage accounts are special Saturna Brokerage Services accounts enabling you to purchase and sell a variety securities f your retirement plan. A regular brokerage statement is provided showing each security in your account and its current value. Self- Directed brokerage accounts are subject to nmal brokerage commissions and or possible charges (see commission schedule f details). To Open a New Saturna SEP-IRA Adopt a SEP IRA by filling out IRS Fm SEP (pg. 11) included with this package. Then, return completed fm to Saturna and keep a copy in your files; you don t need to file it with IRS. Establish Saturna IRAs f yourself and f each covered employee. If you need me Saturna SEP- IRA Applications (pg. 8), call us at , and we ll send m to you right away. (Or just make photocopies one that you have, and we ll be glad to accept m.) We ll also be pleased to send you prospectuses and or infmation about various Saturna funds f you to distribute to your employees. Make your contribution, using Saturna SEP Contribution Allocation Fm (pg. 13), directly to your Saturna IRA and to Saturna IRAs your covered employees. F me details, see page 6 To Open a New Saturna SIMPLE-IRA Adopt a SIMPLE-IRA by filling out 5305-SIMPLE (pg. 21) and returning it to Saturna. Be sure to keep a copy f your recds. Establish Saturna IRAs f yourself and f each covered employee. If you need me Saturna SIMPLE-IRA Applications (pg. 18), call us at , and we ll send m to you right away. (Or just make photocopies one that you have, and we ll be glad to accept m.) We ll also be pleased to send you prospectuses and or infmation about various Saturna funds f you to distribute to your employees. Each employee will also need to fill out and sign Fm 5305-SA (pg. 19) and a Notification to Eligible Employees (pg. 23). F me details, see page 16 3

4 Which plan is best f your company? Comparing Your Choices: Small business owners have a number retirement plan options to choose from. At Saturna, we believe SEP and SIMPLE IRA plans fer employers great Value f Your Money because ir low cost and easy operation. The two plans have a few maj distinctions: The SEP-IRA is funded by employer contributions only, and is simplest plan to implement. The business contributes same percentage compensation f all eligible employees. The SIMPLE-IRA is funded by employee elective deferrals and optional employer contributions. Employees have an opptunity to defer part ir salary to fund ir retirement plans on a taxadvantaged basis. In determining which se retirement plans is most appropriate f your business, you ll want to consider a few key questions, including: 1. How much, if any, responsibility do you want business to have f contributing to employee retirement plans? 2. What percentage compensation do you want employees to be able to contribute each year? 3. Do you want to require business to contribute to plan on behalf employees? To help you compare answers to se questions f all your plan options, we have developed chart on following page. Review it to see which plan combines features that may be most appropriate f your business. Employer Plans 4

5 Eligibility SEP-IRA Any self-employed individual, business owner, individual who earns a minimum $600 self-employed income SIMPLE-IRA Businesses with 100 fewer eligible employees and who do not currently maintain any or retirement plan Key Advantages Easy to set up and maintain, flexible annual funding requirements Salary deferral plan with less administration Funding Responsibility Employer contributions only (optional) Funded by employee salary reduction contributions and employer contributions (required) Annual Contribution Per Participant Up to 25 annual compensation ( 25 self-employed income), up to a maximum $53,000 Employee: up to 100 compensation, up to a maximum $12,500 f 2015 and 2016 plan year, employees age 50 may make catch-up contributions an additional $3,000 Employer: Eir match employee contributions dollar f dollar up to 3 compensation (maximum $12,500 f 2015 and 2016 plan year); can be reduced to as low as 1 in any 2 out 5 yrs Or contribute 2 each eligible employee s compensation, up to $5,300 Access to Assets Or Plans Administrative Responsibilities Withdrawals at any time Withdrawals are subject to current federal income taxes and a possible 10 penalty if participant is under age 59½ Employer can fer in addition to or qualified plans Employees can contribute to Traditional Roth IRAs No employer tax filings Employee notification employer s contribution, if made Withdrawals at any time, but may be subject to a 25 penalty if taken within first two years beginning participation and a possible 10 penalty if taken after that time period if under 59½ Must be employer s only retirement plan Employees can also contribute to anor Traditional Roth IRA No employer tax filings Certain annual employee notifications 5

6 SEP-IRA Simplified Employee Pension Plan A Simplified Employee Pension Plan, commonly known as a SEP-IRA, is a retirement plan specifically designed f selfemployed people and small-business owners. Its key features are highlighted below. When establishing a SEP-IRA plan f your business, you and any eligible employees establish your own separate SEP-IRA; employer contributions are n made into each eligible employee s SEP-IRA. Plan Eligibility You can establish a SEP-IRA if you: are a sole propriet, in a partnership, a business owner ( eir an unincpated incpated business, including Subchapter S cpations); earn a minimum $600 self-employed income by providing a service, eir full-time part-time, even if you are already covered by a retirement plan at your full-time job. Tax Advantages Tax-deductible contributions Up to 25 compensation, as much as $53, Tax-deferred growth potential Any investment earnings grow tax-deferred until withdrawn. SEP-IRA Deadline The deadline to open and contribute to a SEP-IRA is your tax filing deadline (including any extensions). F most selfemployed individuals and small-business owners, that deadline is usually April Contribution Flexibility No annual contribution required Contribution percentage can vary each year, from 0-25 compensation, up to $53,000 per participant f 2015 and 2016 plan year. 1 All SEP-IRA contributions must be made by employer, and same percentage compensation must be contributed f each eligible employee (based on W-2 wages) including employer. Employer Plans Or Key Advantages No complicated fms to fill out. No annual repts f you to file with IRS. Contributions are not mandaty each year. Ability to fer anor qualified retirement plan in addition to SEP-IRA. 1 The maximum compensation on which contributions can be based is $265,000. F self-employed individuals, maximum contribution is 25 earned income. 2 Per IRS instructions, Saturna Capital is required to rept all SEP contributions accding to calendar year in which y are received. However, you can still claim contribution f pri year. F example, if you make a 2015 contribution to your SEP IRA on March 1, 2016, Saturna Capital is required to rept contribution to IRS f 2016, however you can still claim contribution on your 2015 tax return, assuming all or requirements are met. 6

7 Step by Step: Setting Up a SEP-IRA Employer The following steps need to be completed: 1. Fill out and sign IRS Fm 5305-SEP (pg. 11) This is fundamental fm SEP plan as it certifies and recds your decisions in fmation your SEP plan. Give each eligible employee a copy your completed Fm 5305-SEP, and or infmation listed in fm s instructions. This fm does not need to be filed with IRS, only kept f your, and Saturna s, recds. 2. Have each employee in plan fill out and sign a Saturna SEP-IRA Application (pg. 8) This document establishes IRA with Saturna that is contributed to by both employer and employee. It allows f employee to choose how y would like ir IRA to be invested, and to indicate beneficiaries. The employee should retain Saturna IRA Brochure, as it includes valuable infmation regarding our plans. This application needs to be signed and returned to Saturna Capital Cpation. Employee The following steps need to be completed: 1. Fill out and sign SEP-IRA Application (pg. 8) r Enter Name, Address, DOB, SSN. r Indicate Primary Beneficiary Designation. r Choose a fund(s) to invest in. r Include Photo ID. r Sign and Date. 2. Fill out and sign IRS Fm 5305 (pg. 9) r Name, Address, DOB, and SSN info in boxes. r Sign fm. 3. Return all documents to your company s administrat 3. Have each employee in plan fill out and sign a IRS Fm 5305 (pg. 9) This document establishes employee s IRA with IRS. This document needs to be signed and returned to Saturna Capital Cpation. 4. Fill out Saturna SEP Contribution Allocation Fm (pg. 13) This fm designates amount your contribution and percentage ( amount) f your participating employees. 7

8 SEP-IRA Application ➊ Account Owner (Grant): First Name Date Birth (MM-DD-YYYY): M.I. Single Married Divced Widowed Last Name Mr. Mrs./Ms. Dr. Social Security Number: To be completed by each eligible participating employee. Return completed fms and contributions to your company s plan administrat. ➋ Physical / Street Address (required): City State Zip Mailing Address (optional): City State Zip Designated Primary Beneficiary: Daytime Telephone: ( ) - ➏ Make sure to complete all steps your application cannot be processed. Incomplete applications will be returned. Be sure to read prospectus any mutual fund you select. Relationship: ➌ First Name Street Address: M.I. Last Name City State Zip Investment Selection ($100 Minimum Per Fund): Date Birth (MM-DD-YYYY): Social Security Number: Sextant Growth $ Amana Income Invest $ Sextant International $ Sextant Ce $ Amana Growth Invest $ Amana Developing Wld Invest $ Sextant Global High Income $ Amana Participation Invest $ ➍ ➎ ➏ Sextant Sht-Term Bond $ Sextant Bond Income $ Saturna Sustainable Equity $ Saturna Sustainable Bond $ Saturna Brokerage* *Note: Saturna Brokerage Account required $ $100,000 Minimum Per Fund Amana Income Institutional $ Amana Growth Institutional $ Amana Developing Wld Institutional $ Amana Participation Institutional $ Identification: (You must establish your identity by attaching a legible photocopy Grant s driver s license, passpt or government-issued identity document.) Complete IRS Fm 5305 on next page. Please be sure to sign fm. Application is incomplete if not included. Signature I have full right, power, and authity and legal capacity to establish an Individual Retirement Account and to make investments selected. I understand and agree to all terms and conditions set fth in this Saturna Capital IRA Application. I have created IRA by completing IRS Fm 5305, which is attached to this Application. I acknowledge that I have read and received current pro spec tus(es) any Fund(s) being purchased. I understand no share certificates will be issued. I certify, under penalties perjury, that I am not subject to backup withholding under provisions section 3406(a)(1)(C) Internal Revenue Code. Signed: Date: 8

9 5305 Fm (Rev. March 2002) Department Treasury Internal Revenue Service Traditional Individual Retirement Trust Account (Under section 408(a) Internal Revenue Code) Check if amendment Do not file with Internal Revenue Service Name grant Date birth grant Identifying number (see instructions) Address grant Name trustee Address principal place business trustee Saturna Trust Company 1300 N. State Street, Bellingham, WA The grant named above is establishing a traditional individual retirement account under section 408(a) to provide f his her retirement and f suppt his her beneficiaries after death. The trustee named above has given grant disclosure statement required by Regulations section The grant has assigned trust dollars ($ ) in cash. The grant and trustee make following agreement: Article I Except in case a rollover contribution described in section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), 457(e)(16), an employer contribution to a simplified employee pension plan as described in section 408(k) a recharacterized contribution described in section 408A(d)(6), trustee will accept only cash contributions up to $3,000 per year f tax years 2002 through That contribution limit is increased to $4,000 f tax years 2005 through 2007 and $5,000 f 2008 and reafter. F individuals who have reached age 50 befe close tax year, contribution limit is increased to $3,500 per year f tax years 2002 through 2004, $4,500 f 2005, $5,000 f 2006 and 2007, and $6,000 f 2008 and reafter. F tax years after 2008, above limits will be increased to reflect a cost--living adjustment, if any. Article II The grant s interest in balance in trust account is nonffeitable. Article III 1. No part trust account funds may be invested in life insurance contracts, n may assets trust account be commingled with or property except in a common trust fund common investment fund (within meaning section 408(a)(5)). 2. No part trust account funds may be invested in collectibles (within meaning section 408(m)) except as orwise permitted by section 408(m)(3), which provides an exception f certain gold, silver, and platinum coins, coins issued under laws any state, and certain bullion. Article IV 1. Notwithstanding any provision this agreement to contrary, distribution grant s interest in trust account shall be made in accdance with following requirements and shall orwise comply with section 408(a)(6) and regulations reunder, provisions which are herein incpated by reference. 2. The grant s entire interest in trust account must be, begin to be, distributed not later than grant s required beginning date, April 1 following calendar year in which grant reaches age By that date, grant may elect, in a manner acceptable to trustee, to have balance in trust account distributed in: (a) A single sum (b) Payments over a period not longer than life grant joint lives grant and his her designated beneficiary. 3. If grant dies befe his her entire interest is distributed to him her, remaining interest will be distributed as follows: (a) If grant dies on after required beginning date and: (i) designated beneficiary is grant s surviving spouse, remaining interest will be distributed over surviving spouse s life expectancy, as determined each year until such spouse s death, over period in paragraph (a)(iii) below if longer. Any interest remaining after spouse s death will be distributed over such spouse s remaining life expectancy as determined in year spouse s death and reduced by 1 f each subsequent year,, if distributions are being made over period in paragraph (a)(iii) below, over such period. (ii) designated beneficiary is not grant s surviving spouse, remaining interest will be distributed over beneficiary s remaining life expectancy as determined in year following death grant and reduced by 1 f each subsequent year, over period in paragraph (a)(iii) below if longer. (iii) re is no designated beneficiary, remaining interest will be distributed over remaining life expectancy grant as determined in year grant s death and reduced by 1 f each subsequent year. (b) If grant dies befe required beginning date, remaining interest will be distributed in accdance with (i) below, if elected re is no designated beneficiary, in accdance with (ii) below: (i) The remaining interest will be distributed in accdance with paragraphs (a)(i) and (a)(ii) above (but not over period in paragraph (a)(iii), even if longer), starting by end calendar year following year grant s death. If, however, designated beneficiary is grant s surviving spouse, n this distribution is not required to begin befe end calendar year in which grant would have reached age But, in such case, if grant s surviving spouse dies befe distributions are required to begin, n remaining interest will be distributed in accdance with (a)(ii) above (but not over period in paragraph (a)(iii), even if longer), over such spouse s designated beneficiary s life expectancy, in accdance with (ii) below if re is no such designated beneficiary. (ii) The remaining interest will be distributed by end calendar year containing fifth anniversary grant s death. 4. If grant dies befe his her entire interest has been distributed and if designated beneficiary is not grant s surviving spouse, no additional contributions may be accepted in account. 5. The minimum amount that must be distributed each year, beginning with year containing grant s required beginning date, is known as required minimum distribution and is determined as follows: Cat. No K Fm 5305 (Rev ) 9 9

10 Fm 5305 (Rev ) Page 2 Fm 5305 (Rev ) Page 2 (a) The required minimum distribution under paragraph 2(b) f any year, beginning with year grant reaches age 70 (a) The required minimum distribution under paragraph 2(b) f any year, beginning with year grant reaches age , is grant s account value at close business on December 31 preceding year divided by distribution period in unifm lifetime 1 2, is table grant s in Regulations account value section at 1.401(a)(9)-9. close business However, on December if grant s 31 designated preceding beneficiary year divided is his by her distribution surviving spouse, period in required unifm minimum lifetime table in distribution Regulations section 1.401(a)(9)-9. However, if grant s designated beneficiary is his her surviving spouse, required minimum Fm distribution 5305 (Rev. f a f ) year shall not be me than grant s account value at close business on December 31 preceding year divided a year shall not be me than grant s account value at close business on December 31 preceding year Page divided 2 by Fm 5305 number (Rev. in ) joint and last surviv table in Regulations section 1.401(a)(9)-9. The required minimum distribution f a year under this Page 2 paragraph by (a) The number required (a) is determined in minimum joint and using distribution last surviv grant s under table paragraph (, in if Regulations applicable, 2(b) f section any grant year, 1.401(a)(9)-9. beginning and spouse s) with The required attained year age minimum grant ( ages) distribution reaches in age year. f 70 a year under this paragraph (a) The required (a) is determined minimum using distribution grant s under paragraph (, if applicable, 2(b) f any grant year, beginning and spouse s) with attained year age grant ( ages) reaches in age year , is grant s account 1 2, is grant s account (b) The value (b) The value required at required at minimum close minimum close distribution business on distribution business on under December under December paragraphs 31 paragraphs 31 3(a) preceding 3(a) and preceding 3(b)(i) year f and 3(b)(i) year a divided year, f a divided beginning by distribution year, beginning by distribution with year period with year period following in following unifm unifm year lifetime year lifetime grant s table in grant s table in death Regulations death Regulations ( section ( section year 1.401(a)(9)-9. year 1.401(a)(9)-9. grant would However, grant would However, have reached if grant s have reached if grant s age 70 age , designated 1 2, designated if applicable beneficiary if applicable beneficiary under paragraph is his under paragraph is his 3(b)(i)) her surviving 3(b)(i)) her surviving is account spouse, is account spouse, value required value required at close minimum at close minimum business on distribution business on distribution December f December f 31 a year 31 a year shall shall preceding not be me preceding not be year me divided than year divided than by grant s by grant s life expectancy account value life expectancy account value (in at (in at single close single close life life table business table business Regulations on December in Regulations December section 31 section (a)(9)-9) preceding 1.401(a)(9)-9) preceding year year individual divided individual divided specified by number specified by number in such in in such in paragraphs joint and paragraphs joint and 3(a) last 3(a) last and surviv and surviv 3(b)(i). table in Regulations section 1.401(a)(9)-9. The required minimum distribution f a year under this paragraph (a) is determined using grant s 3(b)(i). table (, in if Regulations applicable, section grant 1.401(a)(9)-9. and spouse s) The required attained age minimum ( ages) distribution in year. f a year under this paragraph (c) The required (a) is determined minimum distribution using grant s f year (, if applicable, grant reaches grant age 70 and spouse s) attained age ( ages) in year. (c) f year grant reaches age can be made as late as April 1 following year. The 1 2 required (b) The can made as late as April 1 following year. The required (b) The minimum required minimum required distribution minimum distribution distribution minimum distribution f any or under f any or under year paragraphs year paragraphs must be made 3(a) and must be made 3(a) by and 3(b)(i) by 3(b)(i) end f end f a such year, a such year, year. beginning with year following year grant s death ( year grant would have reached age 70 year. beginning with year following year grant s death 6. The ( owner year two grant me would traditional have IRAs reached may age satisfy , if applicable under paragraph 3(b)(i)) is account value at close business on December 1 2, if minimum applicable distribution under paragraph requirements 3(b)(i)) described is account above value by taking at from close one business traditional 6. December The owner 31 IRA 31 amount two preceding preceding required me traditional year divided year to satisfy divided IRAs by by may requirement satisfy life expectancy life expectancy f minimum (in anor (in in distribution single life accdance single life requirements table in Regulations table with in Regulations regulations described section section under above 1.401(a)(9)-9) section 1.401(a)(9)-9) by taking 408(a)(6). from oneindividual specified individual traditional in specified in IRA such such paragraphs paragraphs amount required 3(a) and 3(a) and to 3(b)(i). 3(b)(i). satisfy requirement f anor in accdance with regulations under section 408(a)(6). (c) The required minimum distribution f year grant reaches (c) The required minimum distribution f year grant reaches Article age Article age V70 V can be made as late as April 1 following year. The 1 2 required minimum distribution f any or year must be made by end such can year. be made as late as April 1 following year. The required 1. The grant minimum agrees distribution to provide f any or trustee year with must all infmation be made by necessary end to such prepare year. any repts required by section 408(i) and Regulations sections The grant agrees to provide trustee with all infmation necessary to prepare any repts required by section 408(i) and Regulations sections 6. The owner owner and two and two me traditional IRAs may satisfy minimum distribution requirements described above by taking from one traditional IRA amount required me traditional to satisfy IRAs may requirement satisfy f minimum anor in distribution accdance requirements with regulations described under above section by taking 408(a)(6). from one traditional 2. The trustee IRA agrees amount to submit required to to satisfy Internal Revenue requirement Service f (IRS) anor and in grant accdance repts with prescribed regulations by under IRS. section 408(a)(6). 2. The trustee agrees to submit to Internal Revenue Service (IRS) and grant repts prescribed by IRS. Article V Article VI V 1. The grant agrees to provide trustee with all infmation necessary Article to VIprepare any repts required by section 408(i) and Regulations sections Notwithstanding 1. The Notwithstanding grant and agrees any any or to provide articles which trustee may with be added all infmation incpated, necessary to provisions prepare any Articles repts I required through by III and section this 408(i) sentence and will Regulations be controlling. sections Any additional and or articles articles inconsistent which may with be section added 408(a) incpated, and related provisions regulations will Articles be invalid. I through III and this sentence will be controlling. 2. The trustee Any agrees additional to submit articles to inconsistent Internal with Revenue section Service 408(a) (IRS) and and related grant regulations repts will prescribed invalid. by IRS. 2. The trustee agrees to submit to Internal Revenue Service (IRS) and grant repts prescribed by IRS. Article VII Article VII This agreement will be amended as necessary to comply with provisions Code and related regulations. Or amendments may be Notwithstanding The This Custodian agreement will Trustee be amended may amend as necessary this Agreement to comply in any in with respect provisions (including retroactively) Code and so that related Agreement regulations. may confm Or amendments with applicable may provisions The made be Notwithstanding Custodian made with Internal consent any consent any Trustee or or Revenue may articles articles amend persons which Code persons which ( Code ), this whose may Agreement be whose may signatures added be signatures with added in any any appear incpated, appear or respect incpated, applicable below. (including provisions below. law provisions retroactively) Articles as in effect from Articles so that I time through I through to Agreement III and time, III to and may this make this confm sentence such sentence or with will will changes applicable be controlling. be to in to to to this provisions controlling. Agreement Any Any additional as additional Internal Custodian Revenue articles inconsistent articles Code inconsistent Trustee ( Code ), with deems with section advisable. with section any 408(a) 408(a) Any or and amendment applicable related and related regulations will be invalid. Article VIII made law as regulations to in comply effect from will be with time invalid. Code, to time, applicable to make such law, does or not changes require to VIII to this grant s Agreement consent. as The Custodian grant will Trustee be deemed deems to advisable. have consented Any amendment Article to Article to any or made to VII amendment to comply unless, with within Code, 30 days applicable from law, date does not Custodian require Trustee Article grant s Article mails VIII may consent. VIII may amendment, be used The f grant any be used f any grant additional will be deemed additional notifies provisions. provisions. to have Custodian If consented no or If no or Trustee provisions to any in or writing will amendment be in will be that added, added, grant draw unless, a line through this space. If provisions are added, draw a does within line through not 30 consent days from this and space. that date If provisions Account Custodian are should This agreement added, This y agreement must comply will be amended y must comply will be with amended applicable as necessary with applicable as necessary requirements to comply requirements comply state with state with law law and provisions and provisions Internal Internal Revenue Code and Revenue Code and Code. related regulations. Or amendments may Trustee distributed mails transferred amendment, to anor grant Trustee notifies Custodian. Custodian Trustee in writing that grant Code. does related not regulations. consent and Or that amendments Account should be made with consent persons whose signatures appear below. may be distributed made with transferred consent to to anor persons Trustee whose Custodian. signatures appear below. Article VIII Article VIII Article The Article Trustee VIII may VIII may Custodian be used f be used f may any any be additional additional removed provisions. provisions. may resign If no If at or no any or time. provisions provisions As condition will be added, will be added, resignation draw a line draw a line removal, through through this this success space. If space. Trustee provisions If provisions Custodian are are shall added, The added, be Trustee y appointed, must Custodian comply y must comply provided with may with that applicable be applicable any removed such requirements success may resign requirements shall state satisfy any law state law time. and and requirements As a Internal condition Internal Revenue Revenue Code. resignation Code. Code. Upon removal, success s a success acceptance Trustee appointment, Custodian shall assets be appointed, Account(s) provided shall that be any transferred such success to shall success, satisfy provided, requirements however, ption Code. Upon Account(s) success s may be acceptance reserved f payment appointment, to any assets liabilities that Account(s) may constitute shall be charge transferred against to Account(s). success, Upon provided, acceptance however, a appointment, ption Account(s) success may shall be be reserved vested f with payment all power all any liabilities Custodian that may Trustee constitute pursuant a charge to this against Agreement. Account(s). The Custodian Upon acceptance Trustee shall not appointment, be liable f success acts omissions shall be vested any with predecess all power to success Custodian to it. In Trustee event pursuant that no to success this Agreement. accepts The an Custodian appointment, Trustee custodial shall not trusteed be liable Account(s) f acts shall omissions be terminated, any and predecess assets to it. In success Account(s), to it. reduced In event by that amount no success any unpaid accepts fees, an appointment, liabilities expenses, custodial will be distributed trusteed Account(s) to grant shall be ( terminated, following and death assets Grant s signature Date to grant, Account(s), Grant s beneficiary). reduced by amount any unpaid fees, liabilities expenses, will be distributed to grant ( following death grant, signature beneficiary). Date Trustee s signature Date Trustee s signature Date Grant s Witness Grant s signature signature Date Witness signature Date (Use only if signature grant trustee is required to be witnessed.) (Use only if signature grant trustee is required to be witnessed.) Trustee s signature Date Trustee s signature Date General General Instructions Definitions separate IRA trust account established by Instructions Definitions nonwking separate IRA spouse. trust account established by Witness Section references Section references signatureare to Internal Trustee. The trustee must be a bank nonwking spouse. are to Internal Trustee. The trustee must be a bank Revenue Witness Code signature unless orwise noted. (Use only savings Revenue Code unless orwise noted. savings if signature and loan and loan association, association, grant as as trustee defined defined is required in in to Specific be witnessed.) Specific Instructions (Use section only if signature 408(n), any grant person who trustee has is required to be witnessed.) Instructions Purpose Fm Purpose Fm approval section 408(n), IRS any to act person as trustee. who has Article IV. Distributions made under this approval IRS to act as trustee. article Article may IV. be Distributions made in a made single under sum, periodic this Fm General article may be made in a single sum, periodic Fm General 5305 is Instructions a 5305 is Instructions model trust account Grant. Definitions separate IRA trust account established by a model trust account Grant. Definitions The grant is person who separate IRA trust account established by The grant is person who payment, nonwking spouse. a combination both. The agreement Section payment, a combination both. The agreement references that meets that meets are to requirements requirements Internal establishes Trustee. The trustee account. must be a bank nonwking spouse. Section references are to Internal establishes Trustee. The trustee account. must be a bank distribution option should be reviewed in section Revenue 408(a) distribution option should be reviewed in section 408(a) Code and unless has and has orwise been pre-approved been pre-approved noted. by savings and loan association, as defined in Revenue Code unless orwise noted. by savings and loan association, as defined in year year grant reaches age to ensure IRS. A traditional individual retirement Identifying Number Specific grant Instructions reaches age to ensure IRS. A traditional individual retirement Identifying Number Specific Instructions section 408(n), any person who has section 408(n), any person who has that requirements section 408(a)(6) account Purpose that requirements section 408(a)(6) account Purpose (traditional Fm (traditional Fm IRA) is established after The approval grant s social IRS to security act as number trustee. will Article IV. Distributions made under this IRA) is established after The approval grant s social IRS to security act as number trustee. will have Article been IV. met. Distributions made under this fm is fully executed by both serve as identifying number his her article have been may be met. made in a single sum, periodic Fm fm 5305 is is fully a model executed trust by account both Grant. serve Grant. as The grant The identifying is grant is number person person who his wh her article may be made in a single sum, periodic individual Fm 5305 (grant) is a model and trust trustee account and must IRA. An employer identification number (EIN) payment, Article VIII. Article a combination VIII and any both. that The follow it agreement individual (grant) that meets and requirements trustee and must establishes IRA. An employer trust identification account. number (EIN) payment, Article VIII. Article a combination VIII and any both. that The follow it be agreement completed that no meets later than requirements due date is establishes required only f trust an account. IRA f which a return distribution may incpate option additional should be provisions reviewed that in are section be completed 408(a) and no later has been than pre-approved due date by is required only f an IRA f which a return distribution may incpate option additional should be provisions reviewed that in are (excluding section 408(a) extensions) and has been individual s pre-approved by is (excluding extensions) individual s is filed to rept unrelated business taxable year agreed to grant by reaches grant and age 70 trustee 1 2 to to ensure IRS. A traditional individual retirement Identifying filed to rept Number unrelated business taxable year agreed to grant by reaches grant and age 70 trustee 1 2 to to ensure IRS. A traditional individual retirement Identifying Number income tax return f tax year. This income. An EIN is required f a common that complete requirements agreement. section They may 408(a)(6) include, account income (traditional tax return f IRA) is tax established year. This after The income. grant s An EIN social is required security f number a common will that complete requirements agreement. section They may 408(a)(6) include, account must (traditional be created IRA) is in established United States after fund The created grant s f social IRAs. security number will have f example, been met. definitions, investment powers, account fm is must fully be executed created by in both United States serve fund as created identifying f IRAs. number his her have f example, been met. definitions, investment powers, f fm exclusive is fully benefit executed by both grant and serve as identifying number his her voting rights, exculpaty provisions, individual f exclusive (grant) benefit and trustee grant and must and voting rights, exculpaty provisions, individual (grant) and trustee and must Traditional IRA. An employer Article VIII. Article VIII and any that follow it his her beneficiaries. his her beneficiaries. Traditional IRA. An employer IRA identification IRA identification f Nonwking number (EIN) Article VIII. Article VIII and any that follow it f Nonwking number (EIN) amendment and termination, removal be completed no later than due date is required only f an IRA f which a return may amendment incpate and additional termination, provisions removal that are be completed no later than due date is required only f an IRA f which a return may incpate additional provisions that are Spouse trustee, trustee s fees, state law (excluding Do not file extensions) Fm 5305 with individual s IRS. is Spouse filed to rept unrelated business taxable agreed trustee, to trustee s by grant fees, state and trustee law to (excluding Do not file extensions) Fm 5305 with individual s IRS. is filed to rept unrelated business taxable requirements, agreed to by beginning grant date and trustee distributions, to Instead, income tax keep return it with f your tax recds. year. This income. requirements, beginning date distributions, Instead, income tax keep return it with f your tax recds. year. This Fm income An complete agreement. They may include, Fm 5305 An may EIN is may EIN be required is be required used to f establish a common complete agreement. They may include, used to f establish a common IRA IRA accepting only cash, treatment excess account accepting only cash, treatment excess account F me must F me must infmation be created infmation be created on in on in IRAs, United IRAs, including States United including States trust fund created f example, definitions, investment powers, trust fund f created a nonwking f IRAs. f example, definitions, investment powers, f a nonwking f IRAs. spouse. spouse. contributions, prohibited transactions with required f exclusive contributions, prohibited transactions with required f exclusive disclosures benefit disclosures benefit trustee grant trustee grant must give and voting rights, exculpaty provisions, must give and voting rights, exculpaty provisions, Traditional Contributions to an IRA trust account f a grant, etc. Attach additional pages if grant, his her Traditional Contributions IRA IRA to an f f IRA Nonwking Nonwking trust account f a grant, etc. Attach additional pages if grant, his her see beneficiaries. amendment and termination, removal see beneficiaries. Pub. 590, Individual Retirement amendment and termination, removal Pub. 590, Individual Retirement nonwking spouse must be made to a necessary. Arrangements (IRAs). Spouse nonwking spouse must be made to a trustee, necessary. trustee s fees, state law Do not file Fm 5305 with IRS. Arrangements (IRAs). Spouse trustee, trustee s fees, state law Do not file Fm 5305 with IRS. requirements, beginning date distributions, Instead, keep it with your recds. requirements, beginning date distributions, Instead, keep it with your recds. Fm 5305 may be used to establish IRA Fm 5305 may be used to establish IRA accepting only cash, treatment excess F me infmation on IRAs, including trust f a nonwking spouse. accepting only cash, Fm treatment 5305 (Rev. excess ) F me infmation on IRAs, including trust f a nonwking spouse. contributions, prohibited Fm transactions 5305 (Rev. with ) required disclosures trustee must give contributions, prohibited transactions with required disclosures trustee must give Contributions to an IRA trust account f a grant, etc. Attach additional pages if grant, see Pub. 590, Individual Retirement Contributions to an IRA trust account f a grant, etc. Attach additional pages if grant, see Pub. 590, Individual Retirement nonwking spouse must be made to a necessary. Arrangements (IRAs). nonwking spouse must be made to a necessary. Arrangements (IRAs). Fm 5305 (Rev ) Fm 5305 (Rev ) 10 10

11 Fm 5305-SEP (Rev. December 2004) Department Treasury Internal Revenue Service Simplified Employee Pension Individual Retirement Accounts Contribution Agreement (Under section 408(k) Internal Revenue Code) OMB No Do not file with Internal Revenue Service makes following agreement under section 408(k) (Name employer) Internal Revenue Code and instructions to this fm. Article I Eligibility Requirements (check applicable boxes see instructions) The employer agrees to provide discretionary contributions in each calendar year to individual retirement account individual retirement annuity (IRA) all employees who are at least years old (not to exceed 21 years old) and have perfmed services f employer in at least years (not to exceed 3 years) immediately preceding 5 years. This simplified employee pension (SEP) includes does not include employees covered under a collective bargaining agreement, includes does not include certain nonresident aliens, and includes does not include employees whose total compensation during year is less than $450*. Article II SEP Requirements (see instructions) The employer agrees that contributions made on behalf each eligible employee will be: A. Based only on first $205,000* compensation. B. The same percentage compensation f every employee. C. Limited annually to smaller $41,000* 25 compensation. D. Paid to employee s IRA trustee, custodian, insurance company (f an annuity contract). Instructions Employer s signature and date Section references are to Internal Revenue Code unless orwise noted. Purpose Fm Fm 5305-SEP (Model SEP) is used by an employer to make an agreement to provide benefits to all eligible employees under a simplified employee pension (SEP) described in section 408(k). Do not file Fm 5305-SEP with IRS. Instead, keep it with your recds. F me infmation on SEPs and IRAs, see Pub. 560, Retirement Plans f Small Business (SEP, SIMPLE, and Qualified Plans), and Pub. 590, Individual Retirement Arrangements (IRAs). Instructions to Employer Simplified employee pension. A SEP is a written arrangement (a plan) that provides you with an easy way to make contributions toward your employees retirement income. Under a SEP, you can contribute to an employee s traditional individual retirement account annuity (traditional IRA). You make contributions directly to an IRA set up by f each employee with a bank, insurance company, or qualified financial institution. When using Fm 5305-SEP to establish a SEP, IRA must be a Model traditional IRA established on an IRS fm a master prototype traditional IRA f which IRS has issued a favable opinion letter. You may not make SEP contributions to a Roth IRA a SIMPLE IRA. Making agreement on Fm 5305-SEP does not establish an employer IRA described in section 408(c). When not to use Fm 5305-SEP. Do not use this fm if you: 1. Currently maintain any or qualified retirement plan. This does not prevent you from maintaining anor SEP. 2. Have any eligible employees f whom IRAs have not been established. 3. Use services leased employees (described in section 414(n)). 4. Are a member an affiliated service group (described in section 414(m)), a controlled group cpations (described in section 414(b)), trades businesses under common control (described in sections 414(c) and 414(o)), unless all eligible employees all members such groups, trades, businesses participate in SEP. 5. Will not pay cost SEP contributions. Do not use Fm 5305-SEP f a SEP that provides f elective employee contributions even if contributions are made under a salary reduction agreement. Use Fm 5305A-SEP, a nonmodel SEP. Note. SEPs permitting elective deferrals cannot be established after Eligible employees. All eligible employees must be allowed to participate in SEP. An eligible employee is any employee who: (1) is at least 21 years old, and (2) has perfmed service f you in at least 3 immediately preceding 5 years. You can establish less restrictive eligibility requirements, but not me restrictive ones. Service is any wk perfmed f you f any period time, however sht. If you are a member an affiliated service group, a controlled group cpations, trades businesses under common control, service includes any wk perfmed f any period time f any or member such group, trades, businesses. Excludable employees. The following employees do not have to be covered by Name and title SEP: (1) employees covered by a collective bargaining agreement whose retirement benefits were bargained f in good faith by you and ir union, (2) nonresident alien employees who did not earn U.S. source income from you, and (3) employees who received less than $450* in compensation during year. Contribution limits. You may make an annual contribution up to 25 employee s compensation $41,000*, whichever is less. Compensation, f this purpose, does not include employer contributions to SEP employee s compensation in excess $205,000*. If you also maintain a salary reduction SEP, contributions to two SEPs toger may not exceed smaller $41,000* 25 compensation f any employee. You are not required to make contributions every year, but when you do, you must contribute to SEP-IRAs all eligible employees who actually perfmed services during year contribution. This includes eligible employees who die quit wking befe contribution is made. Contributions cannot discriminate in fav highly compensated employees. Also, you may not integrate your SEP contributions with, fset m by, contributions made under Federal Insurance Contributions Act (FICA). If this SEP is intended to meet top-heavy minimum contribution rules section 416, but it does not cover all your employees who participate in your salary reduction SEP, n you must make minimum contributions to IRAs established on behalf those employees. Deducting contributions. You may deduct contributions to a SEP subject to limits section 404(h). This SEP is maintained on a calendar year basis and contributions to * F 2005 and later years, this amount is subject to annual cost--living adjustments. The IRS announces increase, if any, in a news release, in Internal Revenue Bulletin, and on IRS website at F Paperwk Reduction Act Notice, see page 2. Cat. No J Fm 5305-SEP (Rev ) 11

12 Fm 5305-SEP (Rev ) Page 2 SEP are deductible f your tax year with within which calendar year ends. Contributions made f a particular tax year must be made by due date your income tax return (including extensions) f that tax year. Completing agreement. This agreement is considered adopted when:? IRAs have been established f all your eligible employees;? You have completed all blanks on agreement fm without modification; and? You have given all your eligible employees following infmation: 1. A copy Fm 5305-SEP. 2. A statement that traditional IRAs or than traditional IRAs into which employer SEP contributions will be made may provide different rates return and different terms concerning, among or things, transfers and withdrawals funds from IRAs. 3. A statement that, in addition to infmation provided to an employee at time employee becomes eligible to participate, administrat SEP must furnish each participant within 30 days effective date any amendment to SEP, a copy amendment and a written explanation its effects. 4. A statement that administrat will give written notification to each participant any employer contributions made under SEP to that participant s IRA by later January 31 year following year f which a contribution is made 30 days after contribution is made. Employers who have established a SEP using Fm 5305-SEP and have furnished each eligible employee with a copy completed Fm 5305-SEP and provided or documents and disclosures described in Instructions to Employer and Infmation f Employee, are not required to file annual infmation returns, Fms EZ f SEP. However, under Title I Employee Retirement Income Security Act 1974 (ERISA), this relief from annual repting requirements may not be available to an employer who selects, recommends, influences its employees to choose IRAs into which contributions will be made under SEP, if those IRAs are subject to provisions that impose any limits on a participant s ability to withdraw funds (or than restrictions imposed by Code that apply to all IRAs). F additional infmation on Title I requirements, see Department Lab regulation at 29 CFR Infmation f Employee The infmation below explains what a SEP is, how contributions are made, and how to treat your employer s contributions f tax purposes. F me infmation, see Pub Simplified employee pension. A SEP is a written arrangement (a plan) that allows an employer to make contributions toward your retirement. Contributions are made to a traditional individual retirement account/annuity (traditional IRA). Contributions must be made to eir a Model traditional IRA executed on an IRS fm a master prototype traditional IRA f which IRS has issued a favable opinion letter. An employer is not required to make SEP contributions. If a contribution is made, however, it must be allocated to all eligible employees accding to SEP agreement. The Model SEP (Fm 5305-SEP) specifies that contribution f each eligible employee will be same percentage compensation (excluding compensation greater than $205,000*) f all employees. Your employer will provide you with a copy agreement containing participation rules and a description how employer contributions may be made to your IRA. Your employer must also provide you with a copy completed Fm 5305-SEP and a yearly statement showing any contributions to your IRA. All amounts contributed to your IRA by your employer belong to you even after you stop wking f that employer. Contribution limits. Your employer will determine amount to be contributed to your IRA each year. However, amount f any year is limited to smaller $41,000* 25 your compensation f that year. Compensation does not include any amount that is contributed by your employer to your IRA under SEP. Your employer is not required to make contributions every year to maintain a particular level contributions. Tax treatment contributions. Employer contributions to your SEP-IRA are excluded from your income unless re are contributions in excess applicable limit. Employer contributions within se limits will not be included on your Fm W-2. Employee contributions. You may make regular IRA contributions to an IRA. However, amount you can deduct may be reduced eliminated because, as a participant in a SEP, you are covered by an employer retirement plan. SEP participation. If your employer does not require you to participate in a SEP as a condition employment, and you elect not to participate, all or employees your employer may be prohibited from participating. If one me eligible employees do not participate and employer tries to establish a SEP f remaining employees, it could cause adverse tax consequences f participating employees. An employer may not adopt this IRS Model SEP if employer maintains anor qualified retirement plan. This does not prevent your employer from adopting this IRS Model SEP and also maintaining an IRS Model Salary Reduction SEP or SEP. However, if you wk f several employers, you may be covered by a SEP one employer and a different SEP pension prit-sharing plan anor employer. SEP-IRA amounts rollover transfer to anor IRA. You can withdraw receive funds from your SEP-IRA if, within 60 days receipt, you place those funds in same anor IRA. This is called a rollover and can be done without penalty only once in any 1-year period. However, re are no restrictions on number times you may make transfers if you arrange to have se funds transferred between trustees custodians so that you never have possession funds. Withdrawals. You may withdraw your employer s contribution at any time, but any amount withdrawn is includible in your income unless rolled over. Also, if withdrawals occur befe you reach age , you may be subject to a tax on early withdrawal. Excess SEP contributions. Contributions exceeding yearly limitations may be withdrawn without penalty by due date (plus extensions) f filing your tax return (nmally April 15), but are includible in your gross income. Excess contributions left in your SEP-IRA after that time may have adverse tax consequences. Withdrawals those contributions may be taxed as premature withdrawals. Financial institution requirements. The financial institution where your IRA is maintained must provide you with a disclosure statement that contains following infmation in plain, nontechnical language: 1. The law that relates to your IRA. 2. The tax consequences various options concerning your IRA. 3. Participation eligibility rules, and rules on deductibility retirement savings. 4. Situations and procedures f revoking your IRA, including name, address, and telephone number person designated to receive notice revocation. This infmation must be clearly displayed at beginning disclosure statement. 5. A discussion penalties that may be assessed because prohibited activities concerning your IRA. 6. Financial disclosure that provides following infmation: a. Projects value growth rates your IRA under various contribution and retirement schedules, describes method determining annual earnings and charges that may be assessed. b. Describes wher, and f when, growth projections are guaranteed, a statement earnings rate and terms on which projections are based. c. States sales commission f each year expressed as a percentage $1,000. In addition, financial institution must provide you with a financial statement each year. You may want to keep se statements to evaluate your IRA s investment perfmance. Paperwk Reduction Act Notice. You are not required to provide infmation requested on a fm that is subject to Paperwk Reduction Act unless fm displays a valid OMB control number. Books recds relating to a fm its instructions must be retained as long as ir contents may become material in administration any Internal Revenue law. Generally, tax returns and return infmation are confidential, as required by section The time needed to complete this fm will vary depending on individual circumstances. The estimated average time is: Recdkeeping Learning about law fm Preparing fm 1 hr., 40 min. 1 hr., 35 min. 1 hr., 41 min. If you have comments concerning accuracy se time estimates suggestions f making this fm simpler, we would be happy to hear from you. You can write to Internal Revenue Service, Tax Products Codinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, Washington, DC Do not send this fm to this address. Instead, keep it with your recds. 12

13 Saturna SEP Contribution Allocation Fm (Employers) Thank you f choosing a Saturna SEP. This fm should be filled out by employers to allocate employer contributions to employees IRAs. Please enclose Saturna IRA Applications f all employees who are opening new IRAs at this time. If you have any questions, please call us at Employer Infmation Company Name: Primary Contact Info: 2. Employer SEP Contributions Please tell us total amount contribution that you are sending with this fm. Contributions are coded f tax year in which we receive m. First Name Street Address: M.I. Last Name Total amount remitted : City State Zip $ Please enclose a check made payable to: Saturna Trust Company as Trustee Daytime Telephone: ( ) - Evening Telephone: ( ) - 3. Allocation SEP contribution to employees IRAs Please identify each employee who is covered by this contribution. Indicate amount total contribution that is allocated to each employee s IRA, along with investment instructions. If instructions are on employee s Saturna IRA Application (which needs to accompany this fm), check box A. If contribution is f employee s existing Saturna IRA, check box B and provide complete investment instructions. NOTE: Saturna cannot accept any contributions without investment instructions. (Even if you have a one person company, please complete Section 1 (Employer Infmation) above and this section, noting yourself as an employee.) 1. Employee Infmation First Name M.I. Last Name Date Birth: MM DD YYYY Investment Instructions (Check one.) A. r Employee Saturna IRA Application and investment instructions enclosed OR B. r Deposit to existing employee Saturna IRA as follows: Fund Name: Account Number: Amount: Social Security Number: Amount total SEP contribution to be credited to this employee s IRA: $ To allocate funds f me than one employee, please see reverse side. 13

14 Saturna SEP Contribution Allocation Fm (Continued) 2. Employee Infmation First Name M.I. Last Name Date Birth: MM DD YYYY Investment Instructions (Check one.) A. r Employee Saturna IRA Application and investment instructions enclosed OR B. r Deposit to existing employee Saturna IRA as follows: Fund Name: Account Number: Amount: Amount total SEP contribution to be credited to this employee s IRA: $ 3. Employee Infmation First Name M.I. Last Name Date Birth: MM DD YYYY Investment Instructions (Check one.) A. r Employee Saturna IRA Application and investment instructions enclosed OR B. r Deposit to existing employee Saturna IRA as follows: Fund Name: Account Number: Amount: Amount total SEP contribution to be credited to this employee s IRA: $ 4. Employee Infmation First Name M.I. Last Name Date Birth: MM DD YYYY Investment Instructions (Check one.) A. r Employee Saturna IRA Application and investment instructions enclosed OR B. r Deposit to existing employee Saturna IRA as follows: Fund Name: Account Number: Amount: Amount total SEP contribution to be credited to this employee s IRA: $ Attach additional sheets if necessary. 14 Please mail this fm (along with your check and any Saturna IRA Applications) to: Saturna Capital Cpation, P.O. Box N, Bellingham, Washington

15 IRA Asset Transfer If you wish to transfer an existing IRA to Saturna Capital, please complete this fm. Attach a copy your most recent statement from your existing IRA custodian. To transfer an IRA held by a brokerage firm to Saturna Brokerage Services, please also complete Transfer Assets fm (in brokerage brochure) as well as Saturna Brokerage Account Application. Mail completed fm(s) and or documents to: Saturna Capital, P.O. Box N, Bellingham, WA Description IRA to be transferred: Account Name: To Current Custodian: I authize you to (choose only one option): Address: Liquidate (sell) ALL Assets Liquidate (sell) PART $ Primary Social Security Tax ID Number: Account Number: Name Custodian Firm currently holding your account: to SEP/SIMPLE account I have established with Saturna Trust Company (EIN ), a qualified Trustee under IRS Regulation (n). Please make check payable to Saturna Trust Company FBO Account Holder. Note: Liquidation f rollover/transfer is a non-taxable event. Proceeds should be mailed to Saturna Trust Company as Trustee. Signature: Custodian Firm s Address: Account Owner Date Custodian Firm s Phone Number: ( ) - Type existing IRA: SEP SIMPLE MEDALLION SIGNATURE GUARANTEE Investment Instructions: Open a new Saturna Capital IRA f me. I have completed Saturna IRA Application and enclosed a copy a recent statement account to be transferred. Consolidate my IRAs by depositing proceeds from this transfer to my existing Saturna Capital IRA. Saturna Account Number (if available): Allocation: Amana Income Amana Growth Amana Developing Wld Amana Participation Sextant Growth Sextant International Sextant Ce Sextant Global High Income Sextant Sht-Term Bond Sextant Bond Income Saturna Sustainable Equity Saturna Sustainable Bond $ $ $ $ $ $ $ $ $ $ $ $ Saturna Brokerage* $ *Requires brokerage account. Custodian Acceptance: Saturna Trust Co. is willing to accept assets described herein and credit m to selected Saturna Capital IRA f which we are Trustee/Custodian. Please liquidate and transfer from fiduciary to fiduciary as authized above. Mail check to: Retirement Plans, Saturna Capital, Box N, Bellingham WA

16 SIMPLE-IRA Savings Incentive Match Plan f Employees Small Employers Employer Plans Designed to make it easier f small businesses to fer a taxadvantaged, company-sponsed retirement plan, SIMPLE IRA Plan is a flexible, easy to administer retirement plan f businesses with 100 fewer eligible employees. SIMPLE plans are funded by employer contributions and can be funded by elective employee salary deferrals. Plan Eligibility Generally, any small business that employs 100 fewer employees who earned at least $5,000 in preceding year can establish a SIMPLE-IRA plan, provided employer does not concurrently maintain any or employer-sponsed retirement plan. Once you know that your company can establish a SIMPLE-IRA plan, you need to determine employee eligibility. Eligible employees include those who have earned at least $5,000 in compensation from employer in any two preceding years (wher not consecutive), and are reasonably expected to earn $5,000 during current year. While employers cannot make se eligibility requirements me restrictive, y can generally liberalize m to include me employees. Tax Advantages As an employer, you may be able to deduct contributions you make on behalf your plan participants from your business expenses. As a participant, you and any eligible employees can elect to defer part your salary and direct that money into an individual SIMPLE-IRA. Because se contributions are deferred befe certain taxes are withheld, y actually reduce contributing participants taxable income. Any earnings within a SIMPLE-IRA enjoy tax-deferred growth until withdrawn. Establishment deadlines Employers who want to establish a SIMPLE-IRA plan f current tax year must set up plan and notify employees by October 1 current tax year. (An exception applies f businesses which are established after October 1). Contribution Flexibility Employee contributions - Eligible employees can elect to contribute up to 100 compensation up to a maximum $12,500 f 2015 and 2016 plan year through salary reduction. (The amount elected by employee may be expressed as a percentage compensation as a specific dollar amount.) Employees age 50 and over can make additional catch-up contributions up to $3,000. Employer contributions - Employers can choose from two different contribution methods - and can even switch between se options each year, provided certain notification requirements are met. 16

17 Step by Step: Setting Up a SIMPLE-IRA Employer The following steps need to be completed: 1. Fill out and sign IRS Fm 5305-SIMPLE (pg. 21) This fundamental fm f SIMPLE plan certifies and recds your decisions in fmation your SIMPLE plan. This fm does not need to be filed with IRS, only kept f your, and Saturna s, recds. 2. Complete Notice to Eligible Employees and have employees complete Salary Reduction Agreement (see examples on pg. 23) These documents allow employees to indicate how much ir salary y will contribute to ir IRA f course year. It also acts as your pro from employee that he/she wishes to have part ir salary directed to an IRA. This fm should be kept f your recds. 3. Have each employee in plan fill out and sign a Saturna SIMPLE-IRA Application (pg. 18) This document establishes IRA with Saturna that is contributed to by both employer and employee. It allows f employee to choose how y would like ir IRA to be invested, and to indicate beneficiaries. The employee should retain Saturna IRA Brochure, as it includes valuable infmation regarding our plans. This application needs to be signed and returned to Saturna Capital Cpation. Employee The following steps need to be completed: 1. Fill out and sign Salary Reduction Agreement (pg. 23) r Indicate Amount Elected Salary Reduction. r Indicate Date f Salary Reduction to Begin. r Sign and Date. 2. Fill out and sign SIMPLE-IRA Application (pg. 18) r Enter Name, Address, DOB, SSN. r Indicate Primary Beneficiary Designation. r Choose a fund(s) to invest in. r Include Photo ID. r Sign and Date. 3. Fill out and sign IRS Fm 5305-SA (pg. 19) r Put Name, Address, DOB, and SSN info in boxes. r Sign fm. 4. Return all documents to your company s administrat 4. Have each employee in plan fill out and sign a IRS Fm 5305-SA (pg. 19) This document establishes employee s IRA with IRS. This document needs to be signed and returned to Saturna Capital Cpation. Matching option - requires employer to match each participant s contributions dollar-f-dollar - up to 3 compensation but no me than $12,500 f 2015 and 2016 plan year. Also allows employer to reduce employer s match to as little as 1 each participant s compensation f any two years in a fiveyear period. Non-elective contribution option - requires employer to contribute 2 each eligible employee s compensation each year - up to a maximum $5,300 regardless wher participant contributes not ( maximum annual compensation on which contributions can be based is $265,000). Or Key Advantages Low cost and minimal administrative requirements No special plan-level tax repting is required f employer each year No discrimination testing required No need to track vesting, since all contributions are immediately 100 vested (which means each employee owns all assets in his her SIMPLE- IRA immediately and can take se assets with m if leaving company.) 17

18 SIMPLE-IRA Application ➊ Account Owner (Grant): First Name Date Birth (MM-DD-YYYY): M.I. Single Married Divced Widowed Last Name Mr. Mrs./Ms. Dr. Social Security Number: To be completed by each eligible participating employee. Return completed fms and contributions to your company s plan administrat. ➋ Physical / Street Address (required): City State Zip Mailing Address (optional): City State Zip Designated Primary Beneficiary: Daytime Telephone: ( ) - ➏ Make sure to complete all steps your application cannot be processed. Incomplete applications will be returned. Be sure to read prospectus any mutual fund you select. Relationship: ➌ First Name Street Address: M.I. Last Name City State Zip Investment Selection ($100 Minimum Per Fund): Date Birth (MM-DD-YYYY): Social Security Number: Sextant Growth $ Amana Income Invest $ Sextant International $ Sextant Ce $ Amana Growth Invest $ Amana Developing Wld Invest $ Sextant Global High Income $ Amana Participation Invest $ ➍ ➎ ➏ Sextant Sht-Term Bond $ Sextant Bond Income $ Saturna Sustainable Equity $ Saturna Sustainable Bond $ Saturna Brokerage* $ $100,000 Minimum Per Fund Amana Income Institutional $ Amana Growth Institutional $ Amana Developing Wld Institutional $ Amana Participation Institutional $ *Note: Saturna Brokerage Account required Identification: (You must establish your identity by attaching a legible photocopy Grant s driver s license, passpt or government-issued identity document.) Complete IRS Fm 5305-SA on next page. Please be sure to sign fm. Application is incomplete if not included. Signature I have full right, power, and authity and legal capacity to establish an Individual Retirement Account and to make investments selected. I understand and agree to all terms and conditions set fth in this Saturna Capital IRA Application. I have created IRA by completing IRS Fm 5305-SA, which is attached to this Application. I acknowledge that I have read and received current pro spec tus(es) any Fund(s) being purchased. I understand no share certificates will be issued. I certify, under penalties perjury, that I am not subject to backup withholding under provisions section 3406(a)(1)(C) Internal Revenue Code. Signed: Date: 18

19 ) Saturna Trust Company 1300 Nth State Street, Bellingham, WA

20 Article VII The Custodian Trustee may amend this Agreement in any respect (including retroactively) so that Agreement may confm with applicable provisions Internal Revenue Code ( Code ), with any or applicable law as in effect from time to time, to make such or changes to this Agreement as Custodian Trustee deems advisable. Any amendment made to comply with Code, applicable law, does not require grant s consent. The grant will be deemed to have consented to any or amendment unless, within 30 days from date Custodian Trustee mails amendment, grant notifies Custodian Trustee in writing that grant does not consent and that Account should be distributed transferred to anor Trustee Custodian. Article VIII The Trustee Custodian may be removed may resign at any time. As a condition resignation removal, a success Trustee Custodian shall be appointed, provided that any such success shall satisfy requirements Code. Upon success s acceptance appointment, assets Account(s) shall be transferred to success, provided, however, a ption Account(s) may be reserved f payment any liabilities that may constitute a charge against Account(s). Upon acceptance appointment, success shall be vested with all power Custodian Trustee pursuant to this Agreement. The Custodian Trustee shall not be liable f acts omissions any predecess success to it. In event that no success accepts an appointment, custodial trusteed Account(s) shall be terminated, and assets Account(s), reduced by amount any unpaid fees, liabilities expenses, will be distributed to grant ( following death grant, beneficiary). 20