§ 42-116-12.1. Distribution of funds in individual retirement accounts.
(a) Prior to the distribution of depositors’ funds in individual retirement accounts in accordance with § 42-116-12, the corporation shall provide depositors with the option of receiving the funds on deposit or transferring the funds to a federally insured institution or other individual retirement account that meets the Internal Revenue Code, 26 U.S.C. § 1 et seq., in accordance with applicable federal tax law and regulations.
(b) The corporation shall mail a form to all depositors with funds on deposit in individual retirement accounts thirty (30) days prior to the distribution of the funds in accordance with § 42-116-12. The form shall include: a statement that under current federal law, an account holder who receives proceeds from an individual retirement account, prematurely, prior to age fifty-nine (59) years, six (6) months, generally pays a ten percent (10%) penalty; an election by the depositor to receive the funds in accordance with the schedule of payments in § 42-116-12 or have the funds transferred to an institution designated by the depositor, and shall provide that the signature of the depositor shall constitute an authorization to transfer funds. The corporation shall also mail a copy of the form authorization to the designated financial institution.
History of Section.
P.L. 1991, ch. 426, § 1.