Account Types
Individual
This is a personal account in the name of the individual who owns the account.
Joint with Right of Survivorship
This is an account owned by two or more individuals. If one dies, his
or her interest in the account automatically passes to the survivor(s)
(i.e., the other owner(s) of the account) at the time of death.
Percentage ownership interests in the account are equal between or among
the owners, and all ownership interests in the account must be created
at the same time. These rights are a matter of state law and vary from
state to state. You should consult a professional advisor if you are
uncertain about how to create accurately, and in the best manner, the
ownership interests in your account.
Joint as Tenants-in-Common
"Tenants in common" (sometimes referred to as "joint tenants in
common") means an account owned by two or more individuals. If one dies,
his or her portion of the account is transferred to his or her
designated beneficiary(ies) (and not to the other owner(s) of the
account). Percentage ownership interests in the account are presumed to
be equal unless otherwise specified. These rights are a matter of state
law and vary from state to state. You should consult a professional
advisor if you are uncertain about how to create accurately and in the
best manner the ownership interests in your account.
Traditional IRA (U.S. taxpayers only)
This is an individual retirement account. An IRA must comply with
federal law in order to be treated as such and receive applicable IRA
tax benefits. Please consult with your tax advisor if you are uncertain
about compliance with these laws in connection with opening and/or
maintaining your account as an IRA. You also need to review the
Individual Retirement Account Booklet made available to you on our Web
site or in your application package before opening this type of account.
Roth IRA (U.S. taxpayers only)
This is a specific type of individual retirement account created by
the Taxpayer Relief Act of 1997. A Roth IRA must comply with federal law
in order to be treated as such and receive applicable Roth IRA tax
benefits. Please consult with your tax advisor if you are uncertain
about compliance with these laws in connection with opening and/or
maintaining your account as a Roth IRA. You also need to review the
Individual Retirement Account Booklet made available to you on our Web
site or in your application package before opening this type of account.
Sep IRA (U.S. taxpayers only)
A Simplified Employee Pension (SEP) IRA is a written arrangement
where employers make contributions to traditional IRAs set up for
employees, subject to certain percentage-of-pay and dollar limits, as
well as federal laws. Please consult with your tax advisor if you are
uncertain about compliance with these laws in connection with opening
and/or maintaining your account as a SEP IRA. You also need to review
the Individual Retirement Account Booklet made available to you on our
Web site or in your application package before opening this type of
account
Simple IRA
A retirement plan that may be established by employers, including
self-employed individuals. The employer is allowed a tax deduction for
contributions made to the SIMPLE. The employer makes either matching or
non-elective contributions to each eligible employee's SIMPLE IRA and
employees may make salary deferral contributions. The employer has two
alternatives when it comes to making contributions. The first is to
match the amounts that each employee makes toward his or her own
elective-deferral contribution up to 3% of the employee's annual
compensation. The second alternative is for the employer to make a flat
2% non-elective contribution to all qualified employees, regardless of
whether the employee makes any contributions.
Corporate
This is an account owned by a corporation. The account must be in the
full, legal name of the corporation as set forth in its articles or
certificate of incorporation (as same may have been amended). Most
states require "Inc.," "Incorporated," "Corp.," "Corporation," "Co." or
"Company" at the end of a valid corporate name. Corporations are
creatures of state law and that law varies from state to state. Included
with the account opening forms are certifications on which you must set
forth the names of the officers or managers who are authorized to act
on behalf of the corporation with respect to the account.
General Partnership
This is an account owned by a general partnership. The account must
be in the full name of the partnership as set forth in the written
partnership agreement and/or the partnership's fictitious name filing or
certificate of general partnership (if any) (as same may have been
amended). General partnerships are creatures of state law and that law
varies from state to state. Included with the account opening forms are
certifications on which you must set forth the names of the general
partners who are authorized to act on behalf of the partnership with
respect to the account. If any of those general partners is a
corporation or limited liability company, certified resolutions that set
forth the names of the officers, members or managers who are authorized
to act on behalf of that corporation or limited liability company will
also be required.
Trust
A trust is a legal entity created by a grantor for the benefit of
designated beneficiaries and evidenced by a written document called the
"trust agreement." Trusts are creatures of state law and that law varies
from state to state. Accounts opened by a trust must be in the name of
the trust. That is, the full name of the trust (as set forth in the
trust agreement), must appear as the account title. Example: "The Joseph
Smith Revocable Trust dated (or UAD) January 3, 1999." Included with
the account opening forms are certifications on which you must set forth
the name of the trust and name(s) of the trustee(s) who is/are
authorized to act on behalf of the trust with respect to the account.
Limited Liability Company
This is an account owned by a limited liability company. The account
must be in the full, legal name of the limited liability company as set
forth in the articles or certificate of organization (as same may have
been amended). Most states require "LLC" or "LC" at the end of a valid
limited liability company name. Limited liability companies are
creatures of state law and that law varies from state to state. Included
with the account opening forms are certifications on which you must set
forth the names of the officers, members or managers who are authorized
to act on behalf of the limited liability company with respect to the
account.
Sole Proprietorship
A sole proprietorship is a business owned by one individual and
conducted under a company name (often called a "fictitious" name). An
example of how the name of a sole proprietorship is expressed is:
"Joseph Smith d/b/a ABC Company." The abbreviation "d/b/a" means "doing
business as." This is the form in which the name of the account should
be set forth. There is no entity of any kind associated with a sole
proprietorship; it is simply an individual owning 100% of a business.
Laws relating to sole proprietorships vary from state to state.
Custodial
An account created at a bank, brokerage firm, or mutual fund company
that is managed by an adult for a minor that is under the age of 18 to
21 (depending on state legislation). The transactions are settled on a
cash basis. The investments managed within a custodial account are
typically limited to mutual funds and other similar products offered by
regulated investment companies.
DVP/RVP
A DVP/RVP account is an equity account in which the buyer's payment
for securities is due at the time of delivery. Security delivery and
payment are simultaneous. This allows a client to trade with a broker
and give-up to the client's custodian. The client's buying power is
based on a percentage of the equity held at the custodian.