| IRA Rollovers
About Rollover IRA's Trigger Situations Moving Employer-Sponsored Retirement Plan Funds Eligible Distributions Establishing a Direct Rollover Rolling Over Part of Employer-Sponsored Retirement Plan Funds Moving Your IRA to a New Huntington Funds IRA Tax Reporting Investment Options More Information on Direct Rollovers Capital Gains Children's Mutual Fund Investments and Taxes Miscellaneous Portfolio Diversification Huntington Funds Who manages Huntington Funds? What is the minimum initial investment to open an account in Huntington Funds? What are Class A Shares and Class B Shares (Retail shares), and how do they differ? Can I access information about Huntington Funds over the telephone? Do you offer checkwriting privileges on Money Market Funds? What is a Rollover IRA? A Rollover IRA holds only funds originating from an employer-sponsored retirement plan. This can include rollover IRA funds from another financial institution that originated from an eligible employer-sponsored retirement plan. Eligible plans include qualified pension and profit sharing plans, such as 401(k) plans, Keogh plans and employee stock ownership plans (ESOPs), as well as Section 403(b) tax-sheltered annuities (TSAs) for employees of schools and certain tax-exempt organizations. TOP What situations trigger a rollover? Several situations may trigger a distribution from an employer-sponsored retirement plan - a change of employer, retirement, disability, divorce, or termination of your employer's plan. Additionally, your plan may allow you to take distributions when you reach age 55. If you already have a contributory IRA, you should open a separate rollover IRA if you intend to roll your distribution funds back to another employer-sponsored retirement plan in the future. TOP How can I move my funds to a Huntington Funds IRA from my employer-sponsored retirement plan? You can choose a Direct Rollover or an Indirect Rollover to move your funds from an employer-sponsored retirement plan to an IRA. If you choose a Direct Rollover, you arrange with your employer to move your distribution from the company's plan directly into an IRA on your behalf. The check (or securities) should be payable to Huntington Funds as custodian for your IRA plan. This avoids mandatory tax withholding. With an Indirect Rollover, the plan's trustee pays out the distribution to you. You actually receive a check payable to you or securities registered in your name. Before choosing an Indirect Rollover, keep in mind that the trustee is required to withhold 20% as federal income tax and pay it directly to the Internal Revenue Service (IRS) on your behalf. The trustee may also withhold an additional amount for state income tax. Then you'll have 60 calendar days to deposit the funds into your IRA. You'll have to pay federal and state income taxes, plus possible tax penalties for early withdrawal, on any part of your distribution which you do not roll over. This includes the 20% withheld and not paid over to you. You can avoid current income taxes and penalties only if you replace the amount withheld with money from other sources. This money must also be deposited into your IRA within 60 days to avoid these taxes and penalties. (In all cases, you'll receive credit for the amount withheld when you file your tax return.) A Direct Rollover, in contrast, allows you to move 100% of your distribution from an employer-sponsored retirement plan without withholding. A Direct Rollover is more practical for many people because there's no need to add cash to make up the difference or to wait for a tax refund. TOP Are all distributions from an employer-sponsored retirement plan eligible for a rollover into an IRA? No. When you receive your distribution, you should also receive written information that specifies the exact amount you're receiving and the amount that's eligible for a rollover. You're responsible for determining whether your distribution qualifies as a rollover. Before opening your IRA, make sure your transaction meets all the requirements. If you have questions about your individual situation, contact your plan administrator or a personal adviser, such as an accountant, attorney or other tax professional. TOP How do I establish a Direct Rollover to avoid mandatory federal tax withholding? Before you receive a distribution from your employer-sponsored retirement plan, notify your plan administrator that you want a direct rollover from the plan to an IRA. If your company issues your distribution to you as a check, the check should be payable to the IRA institution ("Huntington Funds as Custodian of IRA Plan for [your name]"). It should include your Social Security number and specify "Direct Rollover." You can then use that check to open your IRA account. If your company can send the funds directly to Huntington Funds, the process can be even easier. Complete an application and open your IRA account first. Then supply your plan administrator with the appropriate copy of the Huntington Funds form. The administrator should send your funds as specified on the form. TOP Can I roll over only part of the money I receive from my employer-sponsored retirement plan to an IRA? Yes. You may roll over all or any part of the eligible amount you receive from your employer-sponsored retirement plan. However, if you roll over only a portion, the remainder that's not rolled over will generally be taxed as ordinary income and, if you're age 55 (or under age 59 1/2 and not retiring), may also be subject to federal and state tax penalties. In addition, it will generally be subject to mandatory federal income tax withholding at a 20% rate. TOP Can I use a Direct Rollover to move my IRA at another financial institution to a new Huntington Funds IRA? No. You can't use a Direct Rollover in this case. If you want a rollover but would rather not take possession of your funds, you can simply request a custodian/trustee transfer. TOP When I roll over my money into an IRA, is any tax reporting required? When you roll over eligible funds from another IRA or an employer plan, you must report on your tax return (Form 1040 or 1040A) the dollar amount received and also the taxable amount. For example, if you rolled over the entire amount into an IRA within 60 days, then your taxable amount is zero. If you rolled over only a part of the money you received, the remainder you didn't roll over is taxed as ordinary income and may also be subject to federal and state tax penalties for premature distributions, unless you're age 55 (or under age 59 1/2 and not retiring). TOP What investment options are available for my rollover from Huntington Funds? The Huntington Funds family offers a wide range of investment options. Working with an investment representative, you can create a well thought out plan of action that is both flexible and manageable. TOP How do I find out more about a Direct Rollover of my employer-sponsored plan to Huntington Funds? For more complete information, including charges and expenses, call Huntington Funds at 1-800-253-0412 for a free prospectus or view a prospectus online. Please read the prospectus carefully before you invest. The Huntington National Bank serves as the Investment Adviser, Administrator and Custodian to the Huntington Funds. The Funds are distributed by Unified Financial Securities, Inc. (Member FINRA) an affiliate of The Huntington National Bank. This brochure is not intended as tax advice. You should consult with your tax adviser regarding the tax consequences of any investment. TOP Do parents and/or grandparents have to pay capital gains taxes on their children's mutual fund investments if their children have no source of income? They might. According to the Internal Revenue Service (IRS), part of a child's 1997 investment income may be subject to capital gains tax at the parents' or guardians' tax rate if the child meets several criteria:
The child's investment income was more than $1,300. The child is required to file a tax return for 1997. TOP I'm an investor shopping around for a less risky portfolio in light of the U.S. stock market's recent volatility and the international markets' decline. Would diversifying my portfolio be a wise strategy? Diversifying your portfolio is a good idea under any type of market conditions. Generally, it is better not to "put too many eggs in one basket." Do not rely on strong performance from only one or two industries or stock classes. Research has shown that portfolio performance is driven by a diversified allocation among asset classes rather than by selection of individual goals and time horizon, along with your overall financial status. TOP Who manages Huntington Funds? Advisers manage the Huntington Funds. They are some of the most focused, research driven and experienced managers you'll find anywhere. They are focused on meeting or exceeding their clients' long-term investment objectives by providing a comprehensive array of investment services and products, characterized by enduring client relationships and competitive investment results. Each manager buys and sells securities based on up-to-the-minute, sophisticated research and analysis, and is dedicated to monitoring market conditions and economic trends. They average over 19 years in the investment business and over seven years with The Huntington National Bank. Huntington Asset Advisors, Inc. is the Investment Advisor of Huntington Funds. TOP What is the minimum initial investment to open an account in Huntington Funds? The minimum initial investment for A and Class B Shares is $1000, and $100 for each subsequent investment. This minimum initial investment for either type of account is reduced to $50 if you open an account through the Systematic Investment Program (SIPS). SIPS allows investors to automatically add to their Class A Shares or Class B Shares on a regular basis. $50 or more can be automatically withdrawn from a shareholder's checking or savings account to purchase additional investment A or Class B Shares. For more complete information on this feature, please call 1-800-253-0412 and ask for a free prospectus. Please read carefully before investing TOP What are Class A Shares and Class B Shares, and how do they differ? Class A Shares of the Funds are sold subject to a front-end sales charge. Class B Shares of the Funds are sold subject to a back-end sales charge. This back-end sales charge declines over time and is known as a Contingent Deferred Sales Charge. Before choosing between A and Class B Shares of the Funds, an investor should read the prospectus carefully to determine which would be best based upon individual investing objectives, time horizon and risk tolerance. TOP Can I access information about Huntington Funds over the telephone? Huntington Funds has an Interactive Voice Response System that is available 24 hours a day, 7 days a week. By calling 1-800-253-0412, you may access current fund prices, yields and total returns and dividend and capital gain information. If you have an established account with a Personal Identification Number (PIN), you may also access your account information using this automated service. TOP Do you offer checkwriting privileges on Money Market Funds? Yes, no-fee checkwriting is available for Huntington Money Market Funds (Class A Shares only). Shareholders may write a check in the amount of $250 or more. These checks represent requests to redeem shares from your Huntington Funds Money Market account. To obtain checks an investor must complete section 7 (Checkwriting Service) of the account application. To establish this checkwriting service after opening a Huntington Funds Money Market account, shareholders should call 1-800-253-0412 to request a Checkwriting Signature Card. TOP |
