Definitions

• An IRA customer agreement, also referred to as the "custodial agreement," is a legally binding contract between the individual investor and the IRA provider. Because the investor makes deposits to the IRA and the IRA provider manages the account, the IRA provider, such as the financial services firm, is referred to as the "custodian" and the investor is referred to as the "depositor."
  
  

Provisions Regarding Contributions

• The Fidelity IRA custodial agreement specifies contribution limits, contribution deadlines and the rights of the depositor as they relate to contributions. It also explains how the custodian approaches the investment of contributions, which investments it offers and those it cannot hold. It explains the guidelines for minimum investment amounts, specified by various mutual fund companies. The Fidelity custodial agreement spells out how the contributions by divorced or separated spouses are treated and how to initiate transfers and rollovers.
  
  

Provisions Regarding Distributions

• The Fidelity IRA custodial agreement further stipulates how to make the distributions from the account, which Internal Revenue Service rules affect distributions and how the contributions to the account are "recharacterized."
  
  

Other Provisions

• Other provisions in the Fidelity IRA custodial agreement explain how to reinvest the earnings, how to designate the beneficiaries, and what fees to charge the depositor. The provisions regarding the agreement itself outline how to amend the agreement, what actions the custodian takes in the absence of instructions and how to terminate the agreement.
  
  The depositor may also incorporate the spendthrift provision and other optional provisions.