Docstoc

Traditional IRA Roth IRA Rollove

Document Sample
Traditional IRA Roth IRA Rollove Powered By Docstoc
					Saturna Capital Individual Retirement Plans




Traditional IRA
Individual Retirement Plan


Roth IRA
Individual Retirement Plan


Rollover IRA
Individual Retirement Plan
     The Saturna Advantage
     Open an IRA with Saturna to take advantage of:

     • A Wide Range of Investment Choices
        We offer a selection of Saturna no-load mutual funds with
        a variety of investment objectives. By investing in more
        than one fund, you can tailor your IRA to reflect your own
        risk and return objectives. Additionally, in a self-directed
        Brokerage IRA, you can purchase stocks, bonds, fixed
        income securities including CDs and U.S. Treasuries, plus a
        wide range of unaffiliated mutual funds.

     • Personalized Service
        At Saturna Capital, we help make investing for retirement
        easy. Our staff is dedicated to helping you with your
        retirement questions. Your trained account representative
        will help you customize your retirement account 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
        IRA portfolio.

     • No IRA Fees with Saturna’s No-Load Mutual
       Funds
        For IRAs invested in Saturna’s no-load mutual funds, there
        are no IRA fees. There is never a fee on IRA contributions
        or distributions. Trades using self-directed brokerage IRAs
        are subject to commissions (you can find the commission
        schedule at www.saturna.com/sbs/ and in the Saturna
        Brokerage Services brochure).




    Table of Contents

    Why invest in an IRA? ...............................................................3
    Choosing between a Traditional and a Roth IRA .....................5

    Traditional IRA Features ...........................................................6
    Traditional IRA Application ......................................................8
    IRS Form 5305 ..........................................................................9

    Converting From a Traditional IRA to a Roth IRA ..................11
    Early Withdrawal Penalty Exemptions ...................................11

    Roth IRA Features ..................................................................12
    Roth IRA Application ..............................................................14
    IRS Form 5305-R.....................................................................15

    Further Information About IRAs .............................................17

    Rolling Over Your IRA.............................................................18
    Asset Transfer Form ...............................................................19

2
Why invest in an IRA?
Saving through an Individual Retirement Account can have many benefits. In particular,
earnings on your contributions (money you put into your IRA) are always tax-deferred, and in
some cases tax-free. Having earnings which are tax-deferred means you have more money to
re-invest, which may lead to much greater capital appreciation over a long period of time. This
phenomenon is known as tax-deferred compounding.

Let’s look at a simple, real world example. If you were to contribute $400 at the beginning of
each month to an IRA, and assume an 5% rate of return for 30 years, your IRA would be worth
$332,903 at the end of year thirty. If you made the same investment in a non-tax deferred
environment (where the 5% is considered taxable income), assuming a 31% tax rate, it would be
worth $245,760 instead of $332,903. That is a difference of $87,143.

The sooner you begin, the more time your money has to grow. The important thing is to start
saving early. Today there are more choices than ever, including deciding whether you want to
defer tax on your IRA contributions by deducting them from your current income, or pay tax
on your contributions now and withdraw your earnings tax-free at a later date. Please use this
brochure to help make the best choice for your personal investment needs. Also, remember
that there is always an IRA specialist waiting to help you at Saturna Capital.

IRA Investments Have Flexibility
IRAs are not limited to investment in banks, CD’s or mutual funds. Few people realize they have
the option to self-direct their IRAs into stocks, bonds and even real estate (see Prohibited IRA
Transactions on page 17). Several IRA investment options are discussed in this brochure. If you
have further questions regarding IRA investment opportunities, please contact a Saturna Capital
representative.

IRA Contributions
The government periodically raises the limits on contributions to both Traditional IRAs and Roth
IRAs. The contribution limit for 2010 is $5,000. Any increases apply to all IRAs, including those
for spouses who do not have earned income. A married couple with one wage earner and one
person staying at home may be able to contribute a total of $10,000 to their two IRAs in 2010 (if
they file jointly).

                    Year                 Contribution Limit
                    2009                        $5,000
                    2010                        $5,000

Age 50+ IRA Contributions. Workers age 50 and older (as of the end of the year) are able to
make additional “catch up” contributions on a phased-in basis. For 2009 & 2010, the catch-up
contribution limit is $1,000.

Investing Your Contributions
Your contributions will be deposited in a separate IRA custodial account. The money you
contribute to your IRA may be invested in one or a combination of mutual funds for which
Saturna Trust Company, a wholly-owned subsidiary of Saturna Capital, provides custodial service
as a non-bank trustee.

There are no account charges or custodial fees to open an IRA with Saturna Capital. The annual
fee for IRAs invested only in affiliated mutual funds is paid by the Fund as part of its transfer
agent fees, and there are no charges to the individual account owners.




                                                                                                    3
    Quickstart                  To Open a New Saturna IRA:
                                1. Review this booklet and the prospectus of any mutual
       to retirement planning      fund(s) you have selected.
                                2. Remove and complete the Traditional IRA Application
                                   (page 8) or Roth IRA Application (page 14). Be sure to
                                   indicate your investment choice(s) and designate your
                                   beneficiary(ies).
                                3. Remove and complete IRS Form 5305 (page 9) or Form
                                   5305-R (page 15), as appropriate.
                                4. Mail with your check ($100 minimum), payable to
                                   Saturna Capital Trustee. Please indicate your tax year for
                                   which you are making the contribution.

                                If You Are Transferring Your IRA From Another
                                Institution:
                                1. Review this booklet and the prospectus of any mutual
                                   fund(s) you have selected.
                                2. Remove and complete the Traditional IRA Application
                                   (page 8) or Roth IRA Application (page 14), as
                                   appropriate. Check the “Direct Transfer” box on the
                                   Application.
                                3. Remove and complete IRS Form 5305 (page 9) or Form
                                   5305-R (page 15), as appropriate.
                                4. Complete the IRA Rollover/Asset Transfer form (page.
                                   19). If you are transferring a brokerage IRA, additional
                                   forms are required.

                                If You Have Received a Distribution from
                                a Former Plan and Wish to Reinvest it in a
                                Saturna IRA:
                                1. Review this booklet and the prospectus of any mutual
                                   fund(s) you have selected.
                                2. Remove and complete the Traditional IRA Application
                                   (page 8). Check the correct box under “Rollover from.”
                                3. Remove and complete IRS Form 5305 (page 9).
                                4. Mail your distribution check(s) payable (or endorse check
                                   from your old plan) to Saturna Trust Company.



                                If you are rolling over a distribution from an employer
                                plan: Be sure to keep your Rollover IRA funds separate
                                from your regular IRA assets or you will forfeit the ability to
                                invest your Rollover IRA in another qualified plan.

                                If you wish to purchase non-Saturna affiliated mutual funds,
                                stocks, bonds, or options for your IRA, be sure to fill out a
                                Saturna Brokerage Services application.




4
Choosing Between a Traditional and a Roth IRA

                                                     Traditional IRA                    Roth IRA

Tax-Free Withdrawals?                                      No                              Yes

Earnings Tax-Free?                                         No                              Yes

Contributions Tax-Deductible?                              Yes                             No

Maximum Annual Contribution?                             $5,000                          $5,000

Maximum Age Limit for Contributions?                      70 ½                       No Maximum

Early Withdrawal Penalty?                         10% penalty on most          10% penalty on earnings,
                                                    early withdrawals         no penalty on contributions
                                                    (see page 11 for               (see page 11 for
                                                      exemptions).                   exemptions).
Income Limits?                                  Yes (see chart on page 7)      Yes (see chart on page 13)

Required Minimum Distributions?                            Yes                             No




        By contributing to an IRA sooner rather than
        later, you give your money more time to grow.
        Federal law allows you to wait until April 15 of the following year to make a contribution
        for the prior tax year, but waiting until the deadline also means that you delay putting
        the power of tax-deferred compounding to work for you.




            You can establish a Saturna IRA with as little as $100.
           And, after your initial contribution, you can add to your
        investment directly from your bank account in increments as
        low as $25 using Saturna’s automatic investment plan (ACH).
            Call Saturna at 1-800-SATURNA for more information.




                                                                                                            5
                                    Contributions
                                    Tax Deductibility

    Traditional IRA
                                    In a Traditional IRA, eligible investors may deduct either some
                                    or all of their yearly allowable IRA contribution from their taxes.
    Individual Retirement Account   If you are not an active participant in an employer sponsored
                                    plan, such as a 401(k), your contributions are fully tax-deductible
                                    regardless of your income. If you are part of an employer-
                                    sponsored plan, adjusted gross income (AGI) may limit your
                                    tax-deductibility. Please see the accompanying chart on income
                                    limits (page 7) to determine the amount of limitation based on
                                    your AGI.
                                    Even if you cannot make deductible contributions you may
                                    still wish to make contributions to enjoy tax-deferred earnings
                                    on your investments. If you make a non-deductible IRA
                                    contribution, be sure to file IRS Form 8606 with your Form 1040
                                    tax return. Form 8606 accounts for the amount that is to be non-
                                    deductible. Failure to file Form 8606 may cause you to incur a
                                    penalty.
                                    Amount
                                    Eligible investors may contribute up to $5,000 or 100% of their
                                    taxable compensation, whichever is less, to their IRA each year.

                                    Spousal Considerations
                                    If you are married and your spouse either earns no income,
                                    or elects to be treated as having no taxable income for the
                                    year, you may make contributions to a separate IRA under
                                    your spouse’s name. You may contribute up to $5,000 to
                                    your spouse’s IRA, this in addition to the $5,000 you may still
                                    contribute to your own IRA. Contributions to your IRA and your
                                    spouse’s IRA may not exceed 100% of compensation or $10,000,
                                    whichever is less.
                                    If either you or your spouse are active participants in an
                                    employer-sponsored retirement program, and you file a joint
                                    tax return, your contribution’s tax-deductibility will be limited by
                                    your adjusted gross income. Please see the accompanying chart
                                    on income limits (page 7) to determine the amount of limitation
                                    based on your adjusted gross income.

                                    Time of Contributions
                                    You may make Traditional IRA contributions at any time up to
                                    and including the due date for filing your tax return (usually April
                                    15), not including extensions. Note that unless you specify
                                    otherwise, we will code contributions for the year in which we
                                    received them.

                                    Eligibility
                                    To be eligible for a traditional IRA you must be younger than
                                    age 70½, and you must have taxable compensation. If you are
                                    over age 70½ but your spouse is under age 70½, a spousal
                                    contribution can still be made to your spouse’s IRA.

                                    Contributing to a Saturna IRA
                                    All contributions to your Saturna IRA must be made in cash.
                                    Securities or other assets cannot be contributed to an IRA, but
                                    may be converted to cash and then contributed. No part of your
                                    contribution may be invested in life insurance contracts or mixed
                                    with other property.

6
Distributions
Age of Withdrawal                                                                        Early Withdrawals: Exemptions and Penalties
Upon reaching age 59½ you may withdraw money from                                        The right to withdraw money from a Traditional IRA
your Traditional IRA without penalty. You must begin to                                  before age 59½ is restricted. In all early withdrawals, you
have your Traditional IRA distributed no later than April                                must add the amount of the early withdrawal to your
1st of the year following the year in which you reach age                                gross income.
70½.                                                                                     Penalties on early withdrawals
                                                                                         You must pay a 10% federal penalty tax in addition to
Method of Distribution                                                                   your ordinary income tax on early withdrawals. You must
You have several choices for payment of distributions                                    file the IRS Form 5329 (Return for Individual Retirement
from your IRA. You may change the method of                                              Savings Arrangement).
distribution after payments have begun, so long as the
minimum distribution requirements are satisfied.                                         Exemptions from Penalties
   • A lump sum payment of your entire account.                                          There are situations in which early withdrawal penalties do
   • Monthly, quarterly or annual payments for a                                         not apply. Ordinary income tax on the early withdrawal,
     period not exceeding your life expectancy or the                                    however, will still apply. Exemptions from penalties for
     combined life expectancy of you and your spouse or                                  early withdrawal are the same for Roth and Traditional
     designated beneficiary.                                                             IRAs with a few exceptions. Please see the List of
   • A lump sum payment of part of your account, with                                    Exemptions on page 11.
     the balance either to be paid in installments or used                               Required Minimum Distributions
     to purchase an Individual Retirement Annuity.
                                                                                         You must begin receiving the assets in your regular IRA
   • In the form of an Individual Retirement Annuity. You
                                                                                         no later than April 1 following the year in which you reach
     may request that the balance of your account be
                                                                                         age 70½. The minimum amount that must be distributed
     used to purchase a single-premium annuity contract
                                                                                         each year is found by dividing the balance in your IRA on
     which qualifies as an Individual Retirement Annuity.
                                                                                         the last day of the prior year by your life expectancy, the
If you don’t request a method of payment before the end                                  joint life expectancy of you and your beneficiary, or the
of the taxable year in which you reach age 70½, we will                                  specified payments term, whichever is applicable. Saturna
make a lump-sum payment.                                                                 can help compute the minimum distribution requirement.
Installment payment amounts are determined by dividing                                   A federal tax penalty may be imposed against you if the
your IRA balance at the beginning of each year by                                        required minimum distribution is not made for the year
the number of installments chosen less the number of                                     you reach 70½ and for each year thereafter. The penalty is
installments already paid.                                                               equal to 50% of the amount which the actual distribution
                                                                                         is less than the required minimum.
Tax on Withdrawals
You must pay income tax at your current tax rate on
withdrawals of:
                                                                                                    Maximum income limits for deductible contributions
  • Tax-deductible contributions                                                                    to a Traditional IRA with employer-sponsored plan.
  • Earnings on those contributions                                                         Year              Single Filers                       Joint Filers
Unless you elect in writing not to have federal (and                                                     Full           Deductibility        Full          Deductibility
possibly state) income taxes withheld by completing a                                                 deductibility     phased out        deductibility    phased out
                                                                                                        up to:            up to:            up to:           up to:
an IRA Distribution Form and returning it to Saturna, the
                                                                                           2009         $55,000          $65,000           $89,000          $109,000
IRS requires Saturna to withhold 10% of any Traditional
IRA distributions which total over $200 in a calendar                                      2010         $56,000          $66,000           $89,000          $109,000
year. Distributions from an IRA are not eligible for the
special lump sum tax provision that applies to qualified
retirement plans.*




  *Non-deductible contributions made to your Traditional IRA are withdrawn on a prorated basis. The only tax due on these contributions will be on their earnings.
   If you have made nondeductible contributions to your IRA, a portion of distributions from your IRA may be exempt from tax. Each distribution from your IRA will
   consist of a nontaxable portion (the return of nondeductible contributions) and taxable portion (the return of deductible contributions and account earnings). The
   amount of any distribution excludable from income is the portion that bears the same ratio to the total distribution that your aggregate nondeductible contributions
   bear to the balance at the end of the year (calculated after adding back distributions during the year) of your IRA. For this purpose, all of your IRAs are treated as a
   single IRA. Furthermore, all distributions from an IRA during a taxable year are to be treated as one distribution. The aggregate amount of distributions excludable
   from income for all years is not to exceed the aggregate nondeductible contributions.


                                                                                                                                                                              7
                                                                                                                                                                   ✂
                                            Traditional IRA Application
    ➊ Account Owner (Grantor):                                         ❒ Mr. ❒ Mrs./Ms. ❒ Dr.
                                                                                                  IRA Type:
                                                                                                  ❒ New Individual IRA
        First Name                      M.I. Last Name                                            ❒ Direct Transfer (include Transfer Form on Page 19)
        Date of Birth:                               Social Security Number:
                                                                                                  Rollover from:
                 -       -                                        -           -                   ❒ Existing IRA (60 day)
        MM      DD      YYYY                                                                      ❒ Employer Plan (401k, SIMPLE, etc.)
        Street Address:                                    ❒ Single ❒ Married ❒ Widowed            Note: For Saturna Brokerage Accounts, a separate,
                                                                                                   additional application is required. Please see the Saturna
                                                                                                   Brokerage brochure for more details.


        City                                                          State       Zip                  Make sure to complete all            ➏
                                                                                                                                     steps or
        Email:                                                                                         your application cannot be processed.
                                                                                                     Incomplete applications will be returned.

        Daytime Telephone:                             Evening Telephone:
                                                                                                      Be sure to read the prospectus of any
        (            )         -                       (          )                -                         mutual fund you select.

    ➋ Primary Beneficiary:                                             ❒ Mr. ❒ Mrs./Ms. ❒ Dr.     Relationship:


        First Name                      M.I. Last Name                                            You may have some limits on choosing beneficiaries other
        Date of Birth:                               Social Security Number:                      than your spouse. If you live in one of the community property
                                                                                                  states, your spouse may have rights related to your IRA
                 -       -                                       -            -                   regardless of whether he or she is named as the primary
                                                                                                  beneficiary.
        MM      DD      YYYY
        Street Address:
                                                                                                        Initial Contribution for tax year 20 _________.


                                                                                                   ❒ Begin automatic investing (voided check attached):
                                                                                                    $25 Minimum Per Fund after initial contribution.
        City                                                         State        Zip
                                                                                                    ❒ Amana Income                    $
    ➌ Initial Investment Selection ($100 Minimum Per Fund):
                                                                                                    ❒ Amana Growth                    $
        ❒ Amana Income                  $
                                                                Please send separate                ❒ Amana Developing World          $
        ❒ Amana Growth                  $                       checks payable to
                                                                each fund selected.                 ❒ Sextant Growth                  $
        ❒ Amana Developing World        $
                                                                                                    ❒ Sextant International           $
        ❒ Sextant Growth                $
                                                                                                    ❒ Sextant Core                    $
        ❒ Sextant International         $
                                                                                                    ❒ Sextant Short-Term Bond         $
        ❒ Sextant Core                  $
                                                                                                    ❒ Sextant Bond Income             $
        ❒ Sextant Short-Term Bond       $
                                                                                                   every
        ❒ Sextant Bond Income           $                                                                     (Specify period & date: i.e. “month on 15th”)

    ➍   ▲ Identification.      Attach a legible photocopy of the Grantor’s driver’s license, passport or other government-issued identity document.

    ➎   Complete IRS Form 5305 on the next page. Please be sure to sign page 2. Application is incomplete if not included.
        Signature
    ➏   I have full right, power, and authority and legal capacity to establish an Individual Retirement Account and to make the investments selected.
        I understand and agree to all terms and conditions set forth in this Saturna Capital IRA Application. I have created the IRA by completing IRS
        Form 5305, which is attached to this Application. I acknowledge that I have read and received the current prospectus(es) of any Fund(s) being
        purchased. I understand no share certificates will be issued. I certify, under penalties of perjury, that I am not subject to backup withholding under
        the provisions of section 3406(a)(1)(C) of the Internal Revenue Code.


        Signed:                                                                                                   Date:
    Saturna Use Only
                                                       Accepted by:                                                              Date:
                                                  Mail completed forms and contributions to: Saturna Capital, P.O. Box N, Bellingham, WA 98227-0596
8
✂

        Form   5305                      Traditional Individual R etirement Trust Account
                                         Traditional Individual Retirement Trust Acco unt                                                  Do not file
        (Rev. March 2002)                                                                                                                  with the Internal
        Department of the Treasury                 (Under section 408(a) of the Internal Revenue Code)                                     Revenue Service
        Internal Revenue Service
        Name of grantor                                           Date of birth of grantor                                 Identifying number (see instructions)
    ➔                                                        ➔                                                        ➔
        Address of grantor
    ➔                                                                                                                      Check if amendment            �
        Name of trustee                                           Address or principal place of business of trustee

        Saturna Trust Company                                      1300 N. State Street, Bellingham, WA 98225
          The grantor named above is establishing a traditional individual retirement account under section 408(a) to provide for his or her retirement
        and for the support of his or her beneficiaries after death.
           The trustee named above has given the grantor the disclosure statement required by Regulations section 1.408-6.
           The grantor has assigned the trust                                                                         dollars ($                       ) in cash.
           The grantor and the trustee make the following agreement:

                                                                               Article I
           Except in the case of a rollover contribution described in section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), an employer contribution
        to a simplified employee pension plan as described in section 408(k) or a recharacterized contribution described in section 408A(d)(6), the
        trustee will accept only cash contributions up to $3,000 per year for tax years 2002 through 2004. That contribution limit is increased to $4,000
        for tax years 2005 through 2007 and $5,000 for 2008 and thereafter. For individuals who have reached the age of 50 before the close of the tax
        year, the contribution limit is increased to $3,500 per year for tax years 2002 through 2004, $4,500 for 2005, $5,000 for 2006 and 2007, and
        $6,000 for 2008 and thereafter. For tax years after 2008, the above limits will be increased to reflect a cost-of-living adjustment, if any.
                                                                               Article II
          The grantor’s interest in the balance in the trust account is nonforfeitable.
                                                                              Article III
          1. No part of the trust account funds may be invested in life insurance contracts, nor may the assets of the trust account be commingled with
        other property except in a common trust fund or common investment fund (within the meaning of section 408(a)(5)).
          2. No part of the trust account funds may be invested in collectibles (within the meaning of section 408(m)) except as otherwise permitted by
        section 408(m)(3), which provides an exception for certain gold, silver, and platinum coins, coins issued under the laws of any state, and certain
        bullion.
                                                                               Article IV
           1. Notwithstanding any provision of this agreement to the contrary, the distribution of the grantor’s interest in the trust account shall be made
        in accordance with the following requirements and shall otherwise comply with section 408(a)(6) and the regulations thereunder, the provisions of
        which are herein incorporated by reference.
           2. The grantor’s entire interest in the trust account must be, or begin to be, distributed not later than the grantor’s required beginning date,
        April 1 following the calendar year in which the grantor reaches age 701⁄2. By that date, the grantor may elect, in a manner acceptable to the
        trustee, to have the balance in the trust account distributed in:
           (a) A single sum or
           (b) Payments over a period not longer than the life of the grantor or the joint lives of the grantor and his or her designated beneficiary.
           3. If the grantor dies before his or her entire interest is distributed to him or her, the remaining interest will be distributed as follows:
           (a) If the grantor dies on or after the required beginning date and:
           (i) the designated beneficiary is the grantor’s surviving spouse, the remaining interest will be distributed over the surviving spouse’s life
        expectancy, as determined each year until such spouse’s death, or over the period in paragraph (a)(iii) below if longer. Any interest remaining
        after the spouse’s death will be distributed over such spouse’s remaining life expectancy as determined in the year of the spouse’s death and
        reduced by 1 for each subsequent year, or, if distributions are being made over the period in paragraph (a)(iii) below, over such period.
            (ii) the designated beneficiary is not the grantor’s surviving spouse, the remaining interest will be distributed over the beneficiary’s remaining
        life expectancy as determined in the year following the death of the grantor and reduced by 1 for each subsequent year, or over the period in
        paragraph (a)(iii) below if longer.
            (iii) there is no designated beneficiary, the remaining interest will be distributed over the remaining life expectancy of the grantor as
        determined in the year of the grantor’s death and reduced by 1 for each subsequent year.
            (b) If the grantor dies before the required beginning date, the remaining interest will be distributed in accordance with (i) below or, if elected or
        there is no designated beneficiary, in accordance with (ii) below:
            (i) The remaining interest will be distributed in accordance with paragraphs (a)(i) and (a)(ii) above (but not over the period in paragraph (a)(iii),
        even if longer), starting by the end of the calendar year following the year of the grantor’s death. If, however, the designated beneficiary is the
        grantor’s surviving spouse, then this distribution is not required to begin before the end of the calendar year in which the grantor would have
        reached age 701⁄2. But, in such case, if the grantor’s surviving spouse dies before distributions are required to begin, then the remaining interest
        will be distributed in accordance with (a)(ii) above (but not over the period in paragraph (a)(iii), even if longer), over such spouse’s designated
        beneficiary’s life expectancy, or in accordance with (ii) below if there is no such designated beneficiary.
            (ii) The remaining interest will be distributed by the end of the calendar year containing the fifth anniversary of the grantor’s death.
            4. If the grantor dies before his or her entire interest has been distributed and if the designated beneficiary is not the grantor’s surviving
        spouse, no additional contributions may be accepted in the account.
            5. The minimum amount that must be distributed each year, beginning with the year containing the grantor’s required beginning date, is
        known as the “required minimum distribution” and is determined as follows:
                                                                            Cat. No. 11810K                                            Form   5305   (Rev. 3-2002)


                                                                                                                                                                     9
                                                                                                                                                                        ✂
     Form 5305 (Rev. 3-2002)                                                                                                                                 Page   2
        (a) The required minimum distribution under paragraph 2(b) for any year, beginning with the year the grantor reaches age 70 ⁄2, is the grantor’s
                                                                                                                                                 1

     account value at the close of business on December 31 of the preceding year divided by the distribution period in the uniform lifetime table in
     Regulations section 1.401(a)(9)-9. However, if the grantor’s designated beneficiary is his or her surviving spouse, the required minimum
     distribution for a year shall not be more than the grantor’s account value at the close of business on December 31 of the preceding year divided
     Form 5305 (Rev. 3-2002)                                                                                                                           Page 2
     by the number in the joint and last survivor table in Regulations section 1.401(a)(9)-9. The required minimum distribution for a year under this
        (a) The (a) is determined distribution under (or, if applicable, any year, beginning with attained age (or ages) in the year.
     paragraphrequired minimum using the grantor’sparagraph 2(b) for the grantor and spouse’s) the year the grantor reaches age 701⁄2, is the grantor’s
        (b) The required minimum business on December 31 of the and 3(b)(i) for a year, beginning with the year following uniform of the table in
     account value at the close ofdistribution under paragraphs 3(a) preceding year divided by the distribution period in the the year lifetimegrantor’s
     Regulations year the grantor would have reached age 701 , if applicable under paragraph her surviving spouse, the required minimum
     death (or thesection 1.401(a)(9)-9. However, if the grantor’s⁄2designated beneficiary is his or 3(b)(i)) is the account value at the close of business
     distribution for a of the preceding year than the grantor’s account value at single life table in Regulations section 1.401(a)(9)-9) of year divided
     on December 31 year shall not be moredivided by the life expectancy (in thethe close of business on December 31 of the precedingthe individual
     by the number in the joint and last survivor table in Regulations section 1.401(a)(9)-9. The required minimum distribution for a year under this
     specified in such paragraphs 3(a) and 3(b)(i).
     paragraph (a) is determined using the grantor’s (or, if applicable, the grantor and spouse’s) attained age (or ages) in the year.
        (c) The required minimum distribution for the year the grantor reaches age 701⁄2 can be made as late as April 1 of the following year. The
        (b) The required minimum distribution under paragraphs 3(a) by 3(b)(i) for year, beginning with the year following the year of the grantor’s
     required minimum distribution for any other year must be madeand the end ofasuch year.
     death (or the year the grantor would have reached age 701⁄2, if applicable under paragraph 3(b)(i)) is the account value at the close of business
        6. The owner of two or more traditional IRAs by the life expectancy (in distribution requirements described above 1.401(a)(9)-9) of one individual
     on December 31 of the preceding year divided may satisfy the minimum the single life table in Regulations section by taking from the
     specified IRA the amount required to satisfy
     traditionalin such paragraphs 3(a) and 3(b)(i). the requirement for another in accordance with the regulations under section 408(a)(6).

                                                                           Article 70
        (c) The required minimum distribution for the year the grantor reaches age V 1⁄2 can be made as late as April 1 of the following year. The
     required minimum distribution for any other year must be made by the end of such year.
        1. The grantor agrees to provide the trustee with all information necessary to prepare any reports required by section 408(i) and Regulations
        6. The owner of two or more
     sections 1.408-5 and 1.408-6. traditional IRAs may satisfy the minimum distribution requirements described above by taking from one
     traditional IRA the amount required to satisfy the requirement for another in accordance with the regulations under section 408(a)(6).
        2. The trustee agrees to submit to the Internal Revenue Service (IRS) and grantor the reports prescribed by the IRS.
                                                                             Article V
                                                                             Article VI
       1. The grantor agrees to provide the trustee with all information necessary to prepare any reports required by section 408(i) and Regulations
       Notwithstanding any other articles which may be added or incorporated, the provisions of Articles I through III and this sentence will be
     sections 1.408-5 and 1.408-6.
     controlling. Any additional articles inconsistent with section 408(a) and the related regulations will be invalid.
       2. The trustee agrees to submit to the Internal Revenue Service (IRS) and grantor the reports prescribed by the IRS.
                                                                             Article VII
                                                                             Article VI
                                                                             Article VII
       The agreement will be amended as necessary to comply with the provisions provisions of Articles Ithe Agreement may conform with applicable
       This Custodian or Trustee may amend this Agreement in any respect (includingof the Code and the related regulations. Other amendments may
                                                                                       retroactively) so that through III and this sentence will be
        made with the any other the                                appear below. the
                                                                     incorporated,
     beNotwithstandingconsent of articles which may be added or other applicable law
     provisions of theadditional articlespersons whose signatures 408(a) and the related as in effect frombe invalid.
                                          inconsistent with with any
     controlling. Any Internal Revenue Code (“Code”), orsection                          regulations will time to time, or to make such other changes to
     this Agreement as the Custodian or Trustee deems advisable. Any amendment made to comply with the Code, or applicable law, does not require
                                                                           Article VIII
                                                                            Article VII
     the grantor’s consent. The grantor will be deemed to have consented to any other amendment unless, within 30 days from the date the Custodian or
                          be used for the additional provisions. If no other provisions will be added, draw a line through this and that the Account should
        Article VIII may amendment, any grantor notifies the Custodian or Trustee in writing that the grantor does not consentspace. If provisions are
              mails the
     Trusteeagreement will be amended as necessary to comply with the provisions of the Code and the related regulations. Other amendments may
        This
     added, they must comply with applicable requirements of state law and the Internal Revenue Code.
         made with the consent of the persons whose Custodian.
     be distributed or transferred to another Trustee or signatures appear below.
                                                                            Article VIII
                                                                            Article VIII
       The Trustee or be used for any additional or may resign at any time. As a will be added, draw a or through this space. Trustee or Custodian
       Article VIII mayCustodian may be removed provisions. If no other provisionscondition of resignation lineremoval, a successorIf provisions are
     added, appointed, provided that any such successor shall satisfy the requirements of the Code. Upon
     shall bethey must comply with applicable requirements of state law and the Internal Revenue Code. the successor’s acceptance of appointment,
     the assets of the Account(s) shall be transferred to the successor, provided, however, a portion of the Account(s) may be reserved for payment of
     any liabilities that may constitute a charge against the Account(s). Upon acceptance of appointment, the successor shall be vested with all power
     of the Custodian or Trustee pursuant to this Agreement. The Custodian or Trustee shall not be liable for the acts or omissions of any predecessor
     or successor to it. In the event that no successor accepts an appointment, the custodial or trusteed Account(s) shall be terminated, and the assets
     of the Account(s), reduced by the amount of any unpaid fees, liabilities or expenses, will be distributed to the grantor (or following the death of the
     Grantor’s beneficiary).
     grantor, thesignature                                                                                    Date

     Trustee’s signature                                                                                             Date

 ➔   Witness’ signature
     Grantor’s signature                                                                                             Date
                                                   (Use only if signature of the grantor or the trustee is required to be witnessed.)
     Trustee’s signature                                                                                             Date
     General Instructions                                Definitions                                                separate IRA trust account established by the
                                                                                                                    nonworking spouse.
     Witness’ signature to the Internal
     Section references are                              Trustee. The trustee must be a bank or
     Revenue Code unless otherwise noted.               savings and loan association, as defined in                 Specific Instructions
                                                   (Use only if signature of the grantor or the trustee is required to be witnessed.)
                                                         section 408(n), or any person who has the
     Purpose of Form                                     approval of the IRS to act as trustee.                     Article IV. Distributions made under this
     General a model trust account
     Form 5305 is Instructions                           Definitionsgrantor is the person who                       separate IRA trust account established by the
                                                                                                                    article may be made in a single sum, periodic
                                                         Grantor. The                                               nonworking a combination of both. The
                                                                                                                    payment, or spouse.
     Section references are to requirements of
     agreement that meets the the Internal               Trustee. The trustee must be
                                                         establishes the trust account. a bank or
                                                                                                                    distribution option should be reviewed in the
     section 408(a) and hasotherwise noted.
     Revenue Code unless been pre-approved by            savings and loan association, as defined in
                                                         Identifying Number
                                                         section 408(n), or any person who has the
                                                                                                                    Specific Instructions1⁄2 to ensure
                                                                                                                    year the grantor reaches age 70
     the IRS. A traditional individual retirement
     Purpose of Form                                                                                                that the requirements of section 408(a)(6)
                                                                                                                    Article IV. Distributions made under this
     account (traditional IRA) is established after      approval of the IRS security trustee.
                                                         The grantor’s social to act asnumber will
     the form is fully model trust account
                                                                                                                    have been be made in a single sum, periodic
                                                                                                                    article may met.
     Form 5305 is a executed by both the                 serve as the identifying number of his or her
                                                         Grantor. The grantor is the person who
     individual (grantor) andthe requirementsmust                                                                   Article VIII. a combination of both. follow it
                                                                                                                    payment, or Article VIII and any that The
     agreement that meets the trustee and of             IRA. An employer identification number (EIN)
                                                         establishes the trust account.
                                                                                                                    may incorporate additional provisions in the
                                                                                                                    distribution option should be reviewedthat are
     be completed and has been pre-approved
     section 408(a) no later than the due date by        is required only for an IRA for which a return
     (excluding extensions) of the individual’s          Identifying Number
                                                         is filed to report unrelated business taxable              agreed to by the grantor age trustee ensure
                                                                                                                    year the grantor reaches and 701⁄2 to to
     the IRS. A traditional individual retirement
     income tax return for theis established after                                                                  that the requirements of section 408(a)(6)
                                                                                                                    complete the agreement. They may include,
     account (traditional IRA) tax year. This            income. An EIN is required for a common
                                                         The grantor’s social security number will
     account must be created in the United States        fund created identifying number of his or her              have been met.
                                                                                                                    for example, definitions, investment powers,
     the form is fully executed by both the              serve as the for IRAs.
     individual (grantor) and of trustee and must
     for the exclusive benefitthe the grantor and        IRA. An employer identification number (EIN)
                                                                                                                    voting VIII. Article VIII and any that
                                                                                                                    Articlerights, exculpatory provisions,follow it
     his completed no later than the due date
     be or her beneficiaries.
                                                                               for Nonworking
                                                         Traditional IRA an IRA for which a return
                                                         is required only for
                                                                                                                    amendment and termination, removal that are
                                                                                                                    may incorporate additional provisions of the
       Do not extensions) of the the IRS.
     (excludingfile Form 5305 withindividual’s           Spouse report unrelated business taxable
                                                         is filed to
                                                                                                                    trustee, trustee’s fees, state trustee to
                                                                                                                    agreed to by the grantor andlaw
     Instead, tax return foryour tax year. This
     income keep it with the records.                    income. An may is required for a commonIRA                 complete the agreement.date of distributions,
                                                                                                                    requirements, beginning They may include,
                                                         Form 5305 EIN be used to establish the                     accepting only cash, treatment of excess
     account must be created in the United States        fund created for IRAs. spouse.                             for example, definitions, investment powers,
       For more information on IRAs, including the       trust for a nonworking                                     contributions, exculpatorytransactions with the
     for the exclusive benefit of the grantorgive the                                                               voting rights, prohibited provisions,
     required disclosures the trustee must and              Contributions to for Nonworking
                                                         Traditional IRAan IRA trust account for a                  amendment Attach additional pages
                                                                                                                    grantor, etc. and termination, removalifof the
     his or her beneficiaries.Individual Retirement
     grantor, see Pub. 590,                              nonworking spouse must be made to a                        necessary.
                                                                                                                    trustee, trustee’s fees, state law
       Do not file (IRAs).
     ArrangementsForm 5305 with the IRS.                 Spouse
                                                                                                                    requirements, beginning date of distributions,
     Instead, keep it with your records.                 Form 5305 may be used to establish the IRA                 accepting only cash, treatment of excess
       For more information on IRAs, including the       trust for a nonworking spouse.                                                     Form 5305 (Rev. 3-2002)
                                                                                                                    contributions, prohibited transactions with the
     required disclosures the trustee must give the         Contributions to an IRA trust account for a             grantor, etc. Attach additional pages if
     grantor, see Pub. 590, Individual Retirement        nonworking spouse must be made to a                        necessary.
     Arrangements (IRAs).

                                                                                                                                          Form   5305   (Rev. 3-2002)
10
Converting From a Traditional IRA to a Roth IRA
Eligibility
You may convert all or part of your Traditional IRA into a Roth IRA assuming you meet the
following requirements:

       • If married, you file a joint tax return
       • Your AGI (single or joint) for the year does not exceed $105,0001

Assets converted to a Roth IRA are subject to limitations and requirements, these include:

       • Assets converted must remain in the Roth IRA for five years before they can be
         withdrawn without penalty. To simplify the identification of converted assets, it is
         encouraged that you establish a separate Roth IRA for converted assets.
       • You may not contribute to a Roth IRA if your AGI (single or joint) is greater than
         $105,000.

Tax Treatment
Your conversion counts as a Traditional IRA distribution in the year it is completed, and as such
is subject to ordinary income taxes. Paying income taxes reduces your assets, which could
lessen the burden of estate taxes later.



1Plan ahead: the income restriction is lifted for 2010 allowing anyone to convert their Traditional
IRA to a Roth IRA regardless of income. Note that conversions will still be treated as taxable
events. However, a special rule applies to conversions made in 2010 that allows you to average
the taxable income between your 2011 and 2012 tax returns.




    Early Withdrawal Penalty Exemptions include:

       • Death or permanent disability

       • Medical expenses that exceed 7.5% of your adjusted gross income

       • Health insurance premiums for unemployed persons or their families

       • Qualified higher-education expenses for you, your spouse, or you or your spouse’s
         children or grandchildren (qualified higher-education expenses include: tuition, fees,
         books, supplies, and equipment required for the enrollee)

       • To buy, build, or rebuild a first home (up to a total of $10,000) that is the principal
         residence of yourself, your spouse, or you or your spouse’s child, grandchild, or
         ancestor

    Note: You must have established your Roth IRA for five years or more to take advantage of
    any of the above exemptions.




                                                                                                      11
                                     Contributions
                                     Tax Deductibility
     Roth IRA                        Contributions to a Roth IRA are not tax-deductible.

     Individual Retirement Account   Amount
                                     You can contribute $5,000 to a Roth IRA for any year
                                     in which your adjusted gross income (AGI) is less than
                                     $105,000. If AGI falls between $105,001 and $120,000, your
                                     ability to contribute to a Roth IRA is phased out gradually.
                                     Individuals with an AGI higher than $120,000 may not
                                     contribute to a Roth IRA.

                                     Spousal Considerations
                                     If you are married and your spouse either earns no income,
                                     or elects to be treated as having no taxable income for the
                                     year, you may make contributions to a separate Roth IRA
                                     under your spouse’s name. You may contribute up to $5,000
                                     to your spouse’s Roth IRA, this in addition to the $5,000
                                     you may still contribute to your own IRA. Contributions to
                                     your IRA and your spouse’s IRA may not exceed 100% of
                                     compensation or $10,000, whichever is less.
                                     Married couples filing joint tax returns may contribute to a
                                     Roth IRA as long as their combined AGI is $167,000 or less.
                                     If your AGI falls between $167,001 and $177,000 your ability
                                     to contribute to Roth IRA is phased out.

                                     Time of Contributions
                                     You may make Roth IRA contributions at any time up to and
                                     including the due date for filing your tax return (usually April
                                     15), not including extensions. Note that unless you specify
                                     otherwise, we will code contributions for the year in
                                     which we received them.

                                     Eligibility
                                     Contributions are allowed even after age 70½, if you are still
                                     employed.

                                     Contributing to a Saturna IRA
                                     All contributions to your Saturna IRA must be made in cash.
                                     Securities or other assets cannot be contributed to an IRA,
                                     but may be converted to cash and then contributed. No
                                     part of your contribution may be invested in life insurance
                                     contracts or mixed with other property.




12
Distributions                                                               Tax on Withdrawal
                                                                            Once past age 59½, all withdrawals from a Roth IRA
Age of Withdrawal                                                           established for more than five years are tax-free. The
You may withdraw contributions (not earnings) tax-free at                   earnings will be subject to regular income taxes if you
any age.                                                                    have not held your account for more than five years. In
                                                                            the case of the latter, unless you elect in writing not to
Once you are over the age of 59½ and have established
                                                                            have federal (and possibly state) income taxes withheld
your Roth IRA for five years or more, you may withdraw
                                                                            by completing an IRA Distribution Form and returning it
contributions and earnings tax-free.
                                                                            to Saturna, the IRS requires Saturna to withhold 10% of
There is no age at which you must begin taking required                     any taxable Roth IRA distributions which total over $200
minimum distributions.                                                      in a calendar year.
Method of Distribution                                                      Early Withdrawals: Exemptions and Penalties
You have several choices for payment of distributions                       The right to withdraw earnings money from a Roth IRA
from your IRA. You may change the method of                                 before age 59½ is restricted. In all early withdrawals
distribution after payments have begun.                                     of earnings, you must add the amount of the early
  • A lump sum payment of your entire account.                              withdrawal to your gross income. You may withdraw
  • Monthly, quarterly or annual payments.                                  your contributions at any time, tax-free.
  • A lump sum payment of part of your account, with
                                                                            Penalties on Early Withdrawals
    the balance either to be paid in installments or used
    to purchase an Individual Retirement Annuity.                           Accumulated earnings withdrawn before reaching the age
  • In the form of an Individual Retirement Annuity. You                    of 59½, regardless of how long your Roth IRA has been
    may request that the balance of your account be                         established, generally will be taxable and subject to a
    used to purchase a single-premium annuity contract                      10% penalty tax, normally levied on early withdrawals.
    which qualifies as an Individual Retirement Annuity.
                                                                            Exemptions from Penalties
              Income Limits for contributing to a Roth IRA                  There are situations in which early withdrawal penalties do
             Single Filers                         Joint Filers
                                                                            not apply. Ordinary income tax on the early withdrawal,
                                                                            however, will still apply to earnings. Exemptions from
  Full contributions   Contributions   Full contributions   Contributions
        below:         phased out up         below:         phased out up   penalties for early withdrawal are the same for Roth and
                            to:                                  to:        Traditional IRAs with a few exceptions. Please see the List
                  2009                                 2009                 of Exemptions on page 11.
     $105,000            $120,000         $166,000            $176,000
  Single filers whose AGI is           Joint filers whose combined AGI
  greater than $120,000 in 2009        is greater than $176,000 in 2009
  cannot contribute to a Roth IRA      cannot contribute to a Roth IRA
                  2010                                 2010
     $105,000            $120,000         $167,000            $177,000
  Single filers whose AGI is           Joint filers whose combined AGI
  greater than $120,000 in 2010        is greater than $177,000 in 2010
  cannot contribute to a Roth IRA      cannot contribute to a Roth IRA




                                                                                                                                          13
                                                                                                                                                                    ✂
                                             Roth IRA Application
     ➊ Account Owner (Grantor):                                         ❒ Mr. ❒ Mrs./Ms. ❒ Dr.
                                                                                                   IRA Type:
                                                                                                   ❒ New Roth IRA
         First Name                      M.I. Last Name                                            ❒ Roth Conversion IRA
         Date of Birth:                               Social Security Number:                      ❒ Direct Transfer (include Transfer Form on Page 19)

                  -       -                                        -           -                   Rollover from:
         MM      DD      YYYY                                                                      ❒ Existing IRA (60 day)
         Street Address:                                    ❒ Single ❒ Married ❒ Widowed
                                                                                                   Note: For Saturna Brokerage Accounts, a separate,
                                                                                                   additional application is required. Please see the Saturna
                                                                                                   Brokerage brochure for more details.


         City                                                          State       Zip                  Make sure to complete all            ➏
                                                                                                                                      steps or
         Email:                                                                                         your application cannot be processed.
                                                                                                      Incomplete applications will be returned.

         Daytime Telephone:                             Evening Telephone:
                                                                                                       Be sure to read the prospectus of any
         (            )         -                       (          )                -                         mutual fund you select.

     ➋ Primary Beneficiary:                                             ❒ Mr. ❒ Mrs./Ms. ❒ Dr.     Relationship:


         First Name                      M.I. Last Name                                            You may have some limits on choosing beneficiaries other
         Date of Birth:                               Social Security Number:                      than your spouse. If you live in one of the community property
                                                                                                   states, your spouse may have rights related to your IRA
                  -       -                                       -            -                   regardless of whether he or she is named as the primary
                                                                                                   beneficiary.
         MM      DD      YYYY
         Street Address:
                                                                                                         Initial Contribution for tax year 20 _________.


                                                                                                    ❒ Begin automatic investing (voided check attached):
                                                                                                     $25 Minimum Per Fund after initial contribution.
         City                                                         State        Zip
                                                                                                     ❒ Amana Income                    $
     ➌ Initial Investment Selection ($100 Minimum Per Fund):
                                                                                                     ❒ Amana Growth                    $
         ❒ Amana Income                  $
                                                                 Please send separate                ❒ Amana Developing World          $
         ❒ Amana Growth                  $                       checks payable to
                                                                 each fund selected.                 ❒ Sextant Growth                  $
         ❒ Amana Developing World        $
                                                                                                     ❒ Sextant International           $
         ❒ Sextant Growth                $
                                                                                                     ❒ Sextant Core                    $
         ❒ Sextant International         $
                                                                                                     ❒ Sextant Short-Term Bond         $
         ❒ Sextant Core                  $
                                                                                                     ❒ Sextant Bond Income             $
         ❒ Sextant Short-Term Bond       $
                                                                                                    every
         ❒ Sextant Bond Income           $                                                                     (Specify period & date: i.e. “month on 15th”)

     ➍   ▲ Identification.      Attach a legible photocopy of the Grantor’s driver’s license, passport or other government-issued identity document.

     ➎   Complete IRS Form 5305 on the next page. Please be sure to sign page 2. Application is incomplete if not included.
         Signature
     ➏   I have full right, power, and authority and legal capacity to establish an Individual Retirement Account and to make the investments selected.
         I understand and agree to all terms and conditions set forth in this Saturna Capital IRA Application. I have created the IRA by completing IRS
         Form 5305-R, which is attached to this Application. I acknowledge that I have read and received the current prospectus(es) of any Fund(s) being
         purchased. I understand no share certificates will be issued. I certify, under penalties of perjury, that I am not subject to backup withholding under
         the provisions of section 3406(a)(1)(C) of the Internal Revenue Code.


         Signed:                                                                                                   Date:
     Saturna Use Only
                                                        Accepted by:                                                              Date:
                                                   Mail completed forms and contributions to: Saturna Capital, P.O. Box N, Bellingham, WA 98227-0596
14
    Form   5305-R                      Roth Individual R eirement Trus t Ac c o
                                       R ot h I ndividua l Retirement Trust Account
                                                             t                  unt                                         Do not file
    (Rev. March 2002)                                                                                                       with the Internal
    Department of the Treasury              (Under Section 408A of the Internal Revenue Code)                               Revenue Service
    Internal Revenue Service
    Name of grantor                                      Date of birth of grantor                            Social security number
➔                                                   ➔                                                    ➔
    Address of grantor

➔
                                                                                                             Check if amendment
    Name of trustee                                      Address or principal place of business of trustee

     Saturna Trust Company                                1300 N. State Street, Bellingham, WA 98225
      The grantor named above is establishing a Roth individual retirement account (Roth IRA) under section 408A to provide for his
    or her retirement and for the support of his or her beneficiaries after death.
       The trustee named above has given the grantor the disclosure statement required by Regulations section 1.408-6.
       The grantor has assigned the trust     $
       The grantor and the trustee make the following agreement:

                                                                     Article I
      Except in the case of a rollover contribution described in section 408A(e), a recharacterized contribution described in section
    408A(d)(6), or an IRA Conversion Contribution, the trustee will accept only cash contributions up to $3,000 per year for tax years
    2002 through 2004. That contribution limit is increased to $4,000 for tax years 2005 through 2007 and $5,000 for 2008 and
    thereafter. For individuals who have reached the age of 50 before the close of the tax year, the contribution limit is increased to
    $3,500 per year for tax years 2002 through 2004, $4,500 for 2005, $5,000 for 2006 and 2007, and $6,000 for 2008 and
    thereafter. For tax years after 2008, the above limits will be increased to reflect a cost-of-living adjustment, if any.
                                                                     Article II
       1. The annual contribution limit described in Article I is gradually reduced to $0 for higher income levels. For a single grantor,
    the annual contribution is phased out between adjusted gross income (AGI) of $95,000 and $110,000; for a married grantor filing
    jointly, between AGI of $150,000 and $160,000; and for a married grantor filing separately, between AGI of $0 and $10,000. In
    the case of a conversion, the trustee will not accept IRA Conversion Contributions in a tax year if the grantor’s AGI for the tax
    year the funds were distributed from the other IRA exceeds $100,000 or if the grantor is married and files a separate return.
    Adjusted gross income is defined in section 408A(c)(3) and does not include IRA Conversion Contributions.
       2. In the case of a joint return, the AGI limits in the preceding paragraph apply to the combined AGI of the grantor and his or
    her spouse.
                                                                    Article III
       The grantor’s interest in the balance in the trust account is nonforfeitable.
                                                                     Article IV
      1. No part of the trust account funds may be invested in life insurance contracts, nor may the assets of the trust account be
    commingled with other property except in a common trust fund or common investment fund (within the meaning of section
    408(a)(5)).
      2. No part of the trust account funds may be invested in collectibles (within the meaning of section 408(m)) except as
    otherwise permitted by section 408(m)(3), which provides an exception for certain gold, silver, and platinum coins, coins issued
    under the laws of any state, and certain bullion.
                                                                     Article V
      1. If the grantor dies before his or her entire interest is distributed to him or her and the grantor’s surviving spouse is not the
    designated beneficiary, the remaining interest will be distributed in accordance with (a) below or, if elected or there is no
    designated beneficiary, in accordance with (b) below:
      (a) The remaining interest will be distributed, starting by the end of the calendar year following the year of the grantor’s death,
    over the designated beneficiary’s remaining life expectancy as determined in the year following the death of the grantor.
       (b) The remaining interest will be distributed by the end of the calendar year containing the fifth anniversary of the grantor’s death.
      2. The minimum amount that must be distributed each year under paragraph 1(a) above is the account value at the close of
    business on December 31 of the preceding year divided by the life expectancy (in the single life table in Regulations section
    1.401(a)(9)-9) of the designated beneficiary using the attained age of the beneficiary in the year following the year of the
    grantor’s death and subtracting 1 from the divisor for each subsequent year.
      3. If the grantor’s surviving spouse is the designated beneficiary, such spouse will then be treated as the grantor.
                                                                    Article VI
      1. The grantor agrees to provide the trustee with all information necessary to prepare any reports required by sections 408(i)
    and 408A(d)(3)(E), Regulations sections 1.408-5 and 1.408-6, or other guidance published by the Internal Revenue Service (IRS).
      2. The trustee agrees to submit to the IRS and grantor the reports prescribed by the IRS.

                                                                  Cat. No. 25093N                                   Form   5305-R   (Rev. 3-2002)




                                                                                                                                                    15
        Form 5305-R (Rev. 3-2002)                                                                                                                                Page   2

                                                                          Article VII
          Notwithstanding any
        Form 5305-R (Rev. 3-2002) other articles which may be added or incorporated, the provisions of Articles I through IV and this Page 2
        sentence will be controlling. Any additional articles inconsistent with section 408A, the related regulations, and other published
        guidance will be invalid.
                                                                          Article VII
                                                                          Article VIII
          Notwithstanding any other articles which may be added Article VIII
                                                                   or incorporated, the provisions of Articles I through IV and this
          The Custodian or Trustee Any additional Agreement in any respect (including retroactively) so related Agreement and conform
          This agreement will be amended as necessary to comply with the section 408A, the related regulations, and other published
        sentence will be controlling.may amend thisarticles inconsistent with provisions of the Code, the that theregulations, may other
        guidance guidance. Other amendments may be made with the consent of the persons whose signatures appear below.
        published will be invalid.
        with applicable provisions of the Internal Revenue Code (“Code”), or with any other applicable law as in effect from time to time, or
                                                                      Article IX
                                                                     Article VIII
        to make such other changes to this Agreement as the Custodian or Trustee deems advisable. Any amendment made to comply with
           Article or applicable law, does additional provisions. If no with the provisions of be deemed to a line consented to and other
                                    for any not necessary to comply other provisions will be added, the have regulations, any other
        the Code,IX may be used amended asrequire the grantor’s consent. The grantor willthe Code,drawrelatedthrough this space. If
           This agreement will be
        published are added, they must comply with applicable requirements of mails the amendment, the grantor Code.
        amendment unless, within 30 days from the date the Custodian or Trusteestate law and the Internal Revenue notifies the Custodian
        provisions guidance. Other amendments may be made with the consent of the persons whose signatures appear below.
        or Trustee in writing that the grantor does not consent and that the Account should be distributed or transferred to another Trustee
        or Custodian.
                                                                      Article IX
           Article IX may be used for any additional provisions. If no other provisions will be added, draw a line through this space. If
                                                                       Article IX
        provisions are added, they must comply with applicable requirements of state law and the Internal Revenue Code.
          The Trustee or Custodian may be removed or may resign at any time. As a condition of resignation or removal, a successor
        Trustee or Custodian shall be appointed, provided that any such successor shall satisfy the requirements of the Code. Upon the
        successor’s acceptance of appointment, the assets of the Account(s) shall be transferred to the successor, provided, however, a
        portion of the Account(s) may be reserved for payment of any liabilities that may constitute a charge against the Account(s). Upon
        acceptance of appointment, the successor shall be vested with all power of the Custodian or Trustee pursuant to this Agreement.
        The Custodian or Trustee shall not be liable for the acts or omissions of any predecessor or successor to it. In the event that no
        successor accepts an appointment, the custodial or trusteed Account(s) shall be terminated, and the assets of the Account(s),
        reduced by the amount of any unpaid fees, liabilities or expenses, will be distributed to the grantor (or following the death of the
        Grantor’s signature                                                                          Date
        grantor, the beneficiary).

        Trustee’s signature                                                                                          Date
     ➔ Grantor’s signature                                                                                      ➔   Date
        Witness’ signature                                                                                          Date
                                                  (Use only if signature of the grantor or the trustee is required to be witnessed.)
        Trustee’s signature                                                                                          Date


        General Instructions
        Witness’ signature                              Definitions                                                Article V. This article describes how
                                                                                                                     Date
                                                                                                                    distributions     be made from the Roth
                                                  (Use only if signature of the grantor or the trustee is required to be witnessed.) will
        Section references are to the Inter nal          IRA Conversion Contributions. IRA                         IRA after the grantor’s death. Elections
        Revenue Code unless otherwise noted.             Conversion Contributions are amounts                      made pursuant to this article should be
                                                         rolled over, transferred, or considered
        General Instructions
        Purpose of Form                                 Definitions a nonRoth IRA to a
                                                         transferred from
                                                                                                                   reviewed This article to ensure how
                                                                                                                   Article V. periodically describes they
                                                         RothConversion Contributions. IRA
                                                                                                                   correspond will be made from the Roth
                                                                                                                   distributionsto the grantor’s intent. Under
        Section references are to the account
        Form 5305-R is a model trust Inter nal           IRA IRA. A nonRoth IRA is an individual                   paragraph 3 grantor’s death. Elections
                                                                                                                   IRA after the of Article V, the grantor’s
                                                         Conversion Contributions are described
                                                         retirement account or annuity amounts
        Revenue Code meets the requirements
        agreement that unless otherwise noted.
                                                         in section 408(a) or 408(b),considered a
                                                                                                                   spouse is treated this article should be
                                                                                                                   made pursuant to as the owner of the
        of section 408A and has been                     rolled over, transferred, or other than                   Roth IRA upon the death of the grantor,
                                                                                                                   reviewed periodically to ensure they
                                                         Roth IRA. from a nonRoth IRA to a
        Purpose of the IRS.
        pre-approved byForm A Roth                       transferred                                               rather than to the grantor’s intent. Under
                                                                                                                   correspond as the beneficiary. If the
        individual retirement account account
        Form 5305-R is a model trust(Roth IRA)
                                                         Roth IRA. A trustee IRA be a bank or
                                                        Trustee. ThenonRothmust is an individual                   spouse is 3 be treated the grantor’s
                                                                                                                   paragraph to of Article V,as the
        is established after the form is fully           retirement account or annuity described
                                                        savings and loan asociation, as defined                    beneficiary, and not the owner of
                                                                                                                   spouse is treated as the owner, an the
        agreement that meets the requirements
        executed by both the individual (grantor)
        of section 408A and has been
                                                         in section 408(a) or any person than a
                                                        in section 408(n), or 408(b), otherwho has                 Roth IRA provision should the grantor,
                                                                                                                   overridingupon the death ofbe added to
        and the trustee. This IRS. A Roth be             Roth IRA.
                                                        the approval of the IRS to act as trustee.                 rather IX.
                                                                                                                   Article than as the beneficiary. If the
        pre-approved by the account must
        individual the United States (Roth
        created in retirement account for the IRA)      Trustee.
                                                        Grantor. The trustee must be a bank or
                                                                        grantor is the person who                  spouse is Article IX and any that follow
                                                                                                                   Article IX.to be treated as the
        is established after the grantor and
        exclusive benefit of the form is fully his      establishes loan asociation, as
                                                        savings andthe trust account. defined                      beneficiary, and not the owner, an
                                                                                                                   it may incorporate additional provisions
        or her beneficiaries. individual (grantor)
        executed by both the                            in section 408(n), or any person who has                   overriding provision should be added
                                                                                                                   that are agreed to by the grantor and to
        and the trustee. This account must be
           Do not file Form 5305-R with the IRS.        Specific Instructions
                                                        the approval of the IRS to act as trustee.                 Article to
                                                                                                                   trustee IX. complete the agreement. They
        created keep United States for the
        Instead, in the it with your records.           Grantor. The grantor may person who
                                                        Article I. The grantor is thebe subject to                 may include, for example, definitions,
                                                                                                                   Article IX. Article IX and any that follow
           Unlike benefit of the grantor and
        exclusivecontributions to traditional his       establishes the trust account.
                                                        a 6% tax on excess contributions if                        investment powers, voting rights,
                                                                                                                   it may incorporate additional provisions
        or her beneficiaries.
        individual retirement arrangements,             (1) contributions to other individual                      exculpatory provisions, amendment and
                                                                                                                   that are agreed to by the grantor and
           Do not file Form 5305-R are the
        contributions to a Roth IRA with not IRS.       Specific Instructions
                                                        retirement arrangements of the grantor                     trustee to complete of agreement.
                                                                                                                   termination, removalthe the trustee, They
        deductible from withgrantor’s gross
        Instead, keep it the your records.              have been made for the samesubject to                      trustee’s fees, state law requirements,
                                                                                                                   may include, for example, definitions,
                                                        Article I. The grantor may be tax year,                    beginning date of distributions,
        income; and distributions traditional
           Unlike contributions to after 5 years        (2) thetax on excess contributions if
                                                        a 6% grantor’s adjusted gross income                       investment powers, voting rights,
                                                        exceeds the applicable limits in Article II                accepting only cash, treatment of
                                                                                                                   exculpatory provisions, amendment and
        that are made when the grantor is
        individual retirement arrangements,59 ⁄2
                                                1
                                                        (1) contributions to other individual                      excess contributions, prohibited
        contributions or older or IRA account of
        years of age to a Roth on are not               for the tax year, or (3) the grantor’s and
                                                        retirement arrangements of the grantor                     termination, removal of the trustee,
                                                                                                                   transactions with the grantor, etc. Attach
                                                                                                                   trustee’s fees, state law requirements,
        deductible from the the purchase of a
        death, disability, or grantor’s gross           spouse’s compensation same than the
                                                        have been made for the is less tax year,
        home by a first-time homebuyer years
        income; and distributions after 5 (limited      amount contributed by or on behalf of
                                                        (2) the grantor’s adjusted gross income
                                                                                                                   additional date of necessary.
                                                                                                                   beginning pages ifdistributions,
        that are made when includible in is 591⁄2
        to $10,000), are not the grantor gross          them for the tax year. The grantor should
                                                        exceeds the applicable limits in Article II                accepting only cash, treatment of
        years of For more information on Roth
        income. age or older or on account of           see the disclosure (3) the grantor’s and
                                                        for the tax year, or statement or Pub.                     excess contributions, prohibited
        IRAs, including the required disclosures
        death, disability, or the purchase of a         590 for more information.
                                                        spouse’s compensation is less than the                     transactions with the grantor, etc. Attach
        the trustee first-time homebuyer (limited
        home by a must give the grantor, see            amount contributed by or on behalf of                      additional pages if necessary.
        Pub. 590, Individual includible in gross
        to $10,000), are not Retirement                 them for the tax year. The grantor should
        Arrangements (IRAs).
        income. For more information on Roth            see the disclosure statement or Pub.
        IRAs, including the required disclosures        590 for more information.
        the trustee must give the grantor, see
        Pub. 590, Individual Retirement                                                                                                     Form   5305-R   (Rev. 3-2002)
        Arrangements (IRAs).

16                                                                                                                                          Form   5305-R   (Rev. 3-2002)
Further Information About IRAs
Excess Contributions                                          Fees & Commissions
Any contribution in excess of the limits stated for Roth      There are no fees or commissions when your investments
or Traditional IRAs are subject to an annual 6% excise        are solely in mutual funds administered by Saturna
tax. This tax is non-deductible. You can avoid the tax        Capital. Trades using Self-Directed Brokerage IRAs are
by removing the excess (and any earnings on it) before        subject to commissions (you can find the commission
the due date for filing your return for that taxable year     schedule at www.saturna.com/sbs and in the Saturna
(including extensions). No income tax deduction is            Brokerage Services brochure). On 60 days’ written notice
allowed for the excess. Also, you must include earnings       to you, we can charge such fees for establishing and
on the excess in your income for the taxable year in          maintaining your IRA as we deem reasonable.
which the contribution was made.
If you do not remove the excess contribution, you
                                                              You Can Cancel Your IRA
                                                              You can cancel this Account, but only if you had not
may apply it against the allowable contribution for the
                                                              received this Disclosure Statement seven calendar days
following year. If so applied, you will avoid the 6% excise
                                                              prior to the establishment of this IRA. This is done by
tax for future years.
                                                              mailing or delivering your written request to cancel to
Beneficiaries                                                 Saturna Capital Corporation within seven days after the
You should designate your beneficiary or beneficiaries        Account is opened. Should you cancel the Account, you
on the Adoption Agreement. If you don’t designate             will get back the full amount you invested.
a beneficiary, your IRA may go into your estate, and
become subject to both income and estate taxes. A
                                                              Self-Directed Brokerage IRA
                                                              If you wish to purchase unaffiliated mutual funds, stocks,
designation won’t be valid unless you sign and date it,
                                                              bonds, limited partnerships, or write covered call options
and we acknowledge it, before your death.
                                                              on stocks you own as part of your IRA investments, a
Unless otherwise stated on the designation, amounts           Self-Directed Brokerage IRA is also available. A Self-
payable because of your death:                                Directed Brokerage IRA is a special Saturna Brokerage
  • will be paid to your primary beneficiaries who survive    Services account enabling you to purchase and sell a
     you, in equal shares;                                    variety of securities for your IRA. A regular brokerage
  • if no primary beneficiary survives you, will be paid      statement is provided showing each security in your IRA
     to your contingent beneficiaries who survive you, in     and its current value. The account is subject to normal
     equal shares; or                                         brokerage commission and other possible charges (see
  • if no designated beneficiary survives you, will be paid   the commission schedule at www.saturna.com/sbs and in
     to your estate.                                          the Saturna Brokerage Services brochure).
You can change your beneficiary designation at any            Prohibited IRA Transactions
time. The most current designation filed with your            The Internal Revenue Code sets out certain prohibited
trustee revokes all prior designations. This provision, and   transactions. If you (or your beneficiary) do these, your
the rights of persons claiming under your beneficiary         IRA will lose its tax exemption and its fair market value
designation, are governed by the IRA Adoption                 must be included in gross income for that year. The
Agreement you signed.                                         amount of a prohibited transaction may be subject to a
                                                              15% penalty tax.
Inheriting an IRA
If you inherit an IRA, that IRA becomes subject to special    Note that:
rules. As a surviving spouse, you can treat an inherited        • IRA assets may not be invested in life insurance
IRA as your own, continuing to make contributions.                or commingled with other property except in a
Other beneficiaries cannot make contributions (including          common trust fund or mutual fund.
rollover contributions) to the IRA and cannot roll it over.     • Transactions between yourself (or your beneficiary)
But, like the original owner, you generally will not owe          and the assets held in the account are not allowed.
tax on the IRA's assets until you receive distributions.          The specific prohibited transactions include selling or
                                                                  exchanging property with the account, or borrowing
IRS Approval                                                      from the account.
Form 5305 and 5305-R are a model trust account                  • You may not pledge or use your IRA as security for a
agreements that meet the requirements of section 408(a)           loan.
and 408A and have been automatically approved by the
IRS.




                                                                                                                            17
                                               Moving Your Assets To A Saturna IRA
                                               As someone who already knows the value of setting aside
                                               money for retirement, you may be interested in finding out
                                               how easy it is to move your IRA to Saturna where you can
     IRA Rollovers                             take advantage of benefits like investment flexibility and easy
                                               account access.

     & Asset Transfers                         Rollover IRA
                                               In a rollover, you take control of your retirement assets (from a
                                               previous IRA, 401(k) or employer sponsored plan) in the form
     5 Easy Steps For A Successful Rollover/   of a cash withdrawal before transferring them to an IRA. The
     Transfer:                                 custodian firm currently holding your account and distributing
                                               your assets must withhold 10% of your distribution unless you
     1: Complete the Traditional IRA           indicate otherwise. Generally, if you intend to roll over the
        Application on Page 8 to establish     distribution to another IRA within 60 days, you should ask the
        your Saturna account.                  distributing custodian to waive this withholding. Any amount
                                               distributed from the account and not rolled over will be
     2: Complete IRS Form 5305 on Page         considered taxable income.
        9-10.
                                               Once your previous custodian has distributed your assets, you
     3: Complete the Rollover/Transfer         must deposit the full value of the assets into your new IRA
        Form on Page 19.                       within 60 days. Any assets not deposited in an IRA after 60 days
                                               will be subject to ordinary income tax, and, if you are 59½ or
     4: Complete any forms your current        younger, a 10% penalty tax.
        custodian firm may require.
                                               After completing your rollover, you must report the transaction
     5: Send completed forms to Saturna        on IRS Form 1040 of your personal income tax return. You may
        Capital along with a copy of your      not deduct your rollover contribution from your taxes.
        most recent account statement.
                                               Finally, the distributing custodian will issue you the IRS Form
                                               1099-R, Distributions From Pensions, Annuities, Retirement or
                                               Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to assist
                                               you in preparing your tax return.

                                               Direct Transfer
                                               A direct transfer allows you to move your IRA assets directly to
                                               Saturna from your current custodian. The advantages of a direct
                                               transfer include no tax liabilities on the transfer and no tax
                                               reporting requirements.

                                               It is important to remember when transferring your assets
                                               directly that your information on your IRA registration at
                                               Saturna must exactly match the information given your current
                                               IRA or retirement plan custodian.

                                               Direct transfers of non-Saturna mutual funds, stocks or bonds
                                               require a Saturna Brokerage account.

                                               Current Custodian
                                               Many firms require their own forms to be filled out in addition
                                               to Saturna’s. It is a good idea to contact your current firm to
                                               learn their requirements for distributions or transfers.


                                               Note: Rollovers from a Traditional IRA, 401(k) or retirement
                                               plan into a Roth IRA are subject to the same rules as converting
                                               a Traditional IRA to a Roth IRA. Please see page 11 for more
                                               information on converting from a Traditional to a Roth IRA.



18
✂
        IRA Rollover / Asset Transfer
    If you wish to transfer an existing IRA to Saturna Capital, please complete this form. Attach a copy of 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 the Transfer of Assets form (in the brokerage brochure) as well as the
    Saturna Brokerage Account Application.
    Mail completed form(s) and other documents to: Saturna Capital, P.O. Box N, Bellingham, WA 98227-0596


    Description of IRA to be transferred:
    Account Name:                                                                   To Current Custodian:

                                                                                    I authorize you to (choose only one option):
    Address:
                                                                                    ❒ Liquidate (sell) ALL Assets
                                                                                    ❒ Liquidate (sell) PART   $

                                                                                    ❒ Transfer ALL shares in kind*
    Primary Social Security or Tax ID Number:                                       ❒ Transfer PART   #                   or         % of shares in kind*

                                                                                    of                                                (fund name or symbol)
    Account Number:
                                                                                    to the Saturna Capital IRA I have established with Saturna Trust
                                                                                    Company (EIN 26-3918998), a qualified Non-Bank Trustee under
                                                                                    IRS Regulation 1.401-12(n). Please identify to Saturna the amount of
    Name of Custodian Firm currently holding your account:                          contributions made for the current year (if any).
                                                                                    Note: Liquidation for rollover/transfer is a non-taxable event.
                                                                                    Proceeds should be mailed to Saturna Trust Company as Trustee.
    Custodian Firm’s Address:
                                                                                    *Brokerage account required for non-Saturna mutual funds.

                                                                                    Signature:

    Custodian Firm’s Phone Number:
                                                                                    Account Owner                                                 Date
    (            )          -
    Type of existing IRA:
                                                                                         MEDALLION SIGNATURE GUARANTEE
    ❒ Individual           ❒ Employer Plan

    ❒ Roth IRA             ❒ Roth Conversion IRA


    Investment Instructions:                                                        Allocation:
    ❒ Open a new Saturna Capital IRA for me. I have completed                       ❒ Amana Income                   $                 or                   %
      the Saturna IRA Application and enclosed a copy of a recent
      statement of the account to be transferred.                                   ❒ Amana Growth                   $                 or                   %

    ❒ Consolidate my IRAs by depositing proceeds from this                          ❒ Amana Developing World         $                 or                   %
      transfer to my existing Saturna Capital IRA.
                                                                                    ❒ Sextant Growth                 $                 or                   %
    ❒ One time transfer to my Saturna Capital HSA.
                                                                                    ❒ Sextant International          $                 or                   %
    Saturna Account Number (if available):                                          ❒ Sextant Core                   $                 or                   %

                                                                                    ❒ Sextant Short-Term Bond        $                 or                   %

                                                                                    ❒ Sextant Bond Income            $                 or                   %

                                                                                    ❒ Saturna Brokerage*             $                 or                   %
                                                                                                                                   *Requires brokerage account.

    Custodian Acceptance:
    Saturna Trust Co. is willing to accept the assets described herein and credit them to the selected Saturna Capital IRA for which we are Trustee/Custodian.
    Please liquidate and transfer from fiduciary to fiduciary as authorized above.
    Mail check to: Retirement Plans, Saturna Capital, Box N, Bellingham WA 98227-0596.

        Saturna Use Only

                                                              Accepted by:                                                            Date:


                                                                                                                                                                  19
           Employer-Sponsored IRAs

Saturna Capital also offers employer-sponsored IRAs:

Simplified Employee Pension Plan
A Simplified Employee Pension Plan or SEP-IRA allows
an employer to make deductible contributions to
separate IRA accounts established for each eligible
employee.

SIMPLE IRA
A Savings Incentive Match Plan allows employees to
make salary deferral contributions to an IRA.

To find out more about these plans, please contact
Saturna Capital for a free copy of the Employer-
Sponsored IRAs brochure or speak to a retirement plan
specialist.


          Education Savings Accounts

Saturna Capital offers Coverdell Education Savings
Accounts (previously known as Education IRAs). To find
out more about these plans, please contact Saturna
Capital for a free copy of the Education Savings
Account brochure.


            Health Savings Accounts

Saturna Capital offers Health Savings Accounts. To find
out more about these plans, please contact Saturna
Capital for a free copy of the Health Savings Account
brochure.




                                 1300 N. State Street
                                 Bellingham, WA 98225-4730
                                 www.saturna.com
                                 ira@saturna.com


1-800-SATURNA (1-800-728-8762)
For automated assistance, including mutual fund prices:
1-888-732-6262


Please consider an investment’s objectives, risks, charges and expenses
carefully before investing. To obtain free prospectuses on Saturna’s
mutual funds which you should read and consider carefully, please visit
www.saturna.com or call toll-free 800/SATURNA. Saturna’s mutual
funds are distributed by Saturna Brokerage Services, a wholly-owned
subsidiary of Saturna Capital Corporation and member FINRA/SIPC.
                                                                          IRA-20100101-B

				
DOCUMENT INFO