Get Bank Of America Beneficiary Form

Get Bank Of America Beneficiary Form

The Bank of America Beneficiary Form is a crucial document for individuals designated as beneficiaries of a Traditional or Roth IRA account. This form collects essential information about both the deceased account holder and the beneficiary, ensuring compliance with federal regulations. Completing this form is vital for beneficiaries to receive their entitled distributions, so take a moment to fill it out by clicking the button below.

Structure

The Bank of America Beneficiary Form is a crucial document for individuals who find themselves as beneficiaries of a Traditional or Roth IRA after the death of the account holder. This form collects essential information about both the deceased depositor and the beneficiary, including names, social security numbers, and addresses. It also requires details regarding the beneficiary’s relationship to the deceased and their source of income. Compliance with the USA PATRIOT ACT mandates that the bank verifies and records this information to help prevent illegal activities. Beneficiaries must make important decisions regarding the distribution of the IRA funds, with options ranging from a lump sum payment to various installment plans. Additionally, the form addresses tax withholding requirements, advising beneficiaries on federal and state tax implications. Timely submission of the form is critical, as beneficiaries must elect how to receive the proceeds by September 30 of the year following the depositor's death. Understanding the structure and requirements of this form can help ensure a smooth transition of assets and compliance with applicable laws.

Bank Of America Beneficiary Preview

BANK OF AMERICA, N.A. (THE “BANK”)

Traditional/Roth IRA Plan

Beneficiary Distribution Election Form

1. DECEASED DEPOSITOR INFORMATION

Depositor’s Name

Date of Birth

Date of Death

Social Security Number

Plan Number

Plan Type

Traditional IRA Roth IRA

Bank of America, like all financial institutions, is required by the USA PATRIOT ACT to obtain, verify, and record information that identifies each beneficiary of an IRA account with us. When you are a beneficiary of an IRA account with us, we will ask you for your name, address and other information that will allow us to identify you. The information we gather is for your protection and the country’s against terrorist activity and illegal money laundering schemes.

2. BENEFICIARY INFORMATION

Beneficiary Name

Daytime Telephone Number

 

Date of Birth

 

 

 

 

 

 

Physical Street Address, City, State, Zip

 

 

 

 

 

 

 

 

Mailing Address (If different)

 

 

 

 

 

 

 

 

Country of Citizenship

 

Country of Residency

 

 

 

Social Security Number

Relationship to Depositor

Source of Income:

Employment

Investment

 

Inheritance

Retirement/Social Security

 

 

 

Employer Name (If Employment Selected)

 

 

 

 

Occupation (If Employment Selected)

Non U.S. Citizen Required Information

#of Days Present in U.S. This Year

#of Days Present in the U.S. Last Year

#of Days Present in the U.S. During Previous Year

Senior Political Figure and Politically Exposed Persons

Have you or any of your immediate family ever been elected, appointed or assumed any political position in

a National, State, or Provincial government? (Y/N)

 

If yes, describe the position.

3. DISTRIBUTION INSTRUCTIONS

BANK OF AMERICA RECOMMENDS YOU CONTACT YOUR TAX ADVISOR BEFORE MAKING YOUR ELECTION

A beneficiary of an IRA Plan should elect how to receive the proceeds of the IRA Plan no later than 09/30 of the year following the year of the IRA Plan Depositor’s death. Any separate beneficiary accounts must be established by 12/31 of the year following the IRA Plan Depositor’s death. Available options depend on the age of the IRA Plan Depositor, the relationship of the beneficiary to the IRA Depositor, and the type of IRA Plan.

SELECT ONLY ONE OF THE PAYMENT OPTIONS BELOW.

Lump Sum Distribution I elect to receive my entire portion of the IRA Plan in a single lump sum payment.

 

 

Deposit into my Bank of America

Checking

Savings

 

 

 

 

 

 

Life Expectancy

Mail check to the address above.

 

 

 

 

 

 

 

 

State

Option A.

I elect to receive my entire portion of the IRA Plan by taking payments over the longer of my own life

Payments

expectancy or the remaining life expectancy of the deceased IRA Plan Depositor.

 

 

 

 

Always

Specific Amount

I elect to receive my entire portion of the IRA Plan by taking payments of

 

 

 

 

 

Available

 

 

 

 

Specific Term

I elect to receive my entire portion of the IRA Plan by taking payments over

 

 

 

 

year

 

 

 

 

 

 

5-Year Payout

I elect to receive my entire portion of the IRA Plan by 12/31 of the year containing the 5th anniversary

 

of the IRA Plan Depositor’s death. (Only available if the deceased IRA Plan Depositor was under the

 

 

 

 

age of 70½ on the date of death)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Option B.

Spouse Treat as Own

I am the spouse of the deceased IRA Plan Depositor and I elect to treat the assets of the IRA Plan as

my own IRA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional Options

Spousal Exception

I am the spouse of the deceased IRA Plan Depositor and I elect to delay taking distributions until the

for Spouse Only

 

year my spouse would have reached age 70½. Date:

 

 

 

 

 

 

 

 

 

NOTE: Under both options, additional amounts may be withdrawn at any time.

4. RMD PAYMENT INSTRUCTIONS

You are responsible for taking your annual Required Minimum Distribution (RMD) from the IRA Plan. The Bank will not distribute your RMD unless you give the Bank timely written distribution instructions. The Specific Start Date is limited to any date between January 7th and December 28th. If date selected is a non-business day, the distribution will be processed on the first business day following the date.

Select One:

Monthly

Quarterly

Semi-Annually

Annually

Specific Start Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Select One:

Mail check to the address above.

Deposit into my Bank of America

Checking

Savings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Form 00-59-1289NSBW–Version 051712

5. TAX WITHHOLDING ELECTION

Notice of Withholding Election: Distributions you receive from your Individual Retirement Account are subject to Federal income tax withholding and may be subject to State income tax withholding and/or Local income tax withholding based on your state and municipality of residence unless you elect not to have withholding apply.

You are liable for Federal, and applicable State and Local income taxes on the taxable portion of your distribution. If you elect not to have withholding apply to your distribution, or if you do not have enough tax withheld from your distribution, you may be responsible for payment of estimated taxes. You may also incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient.

Withholding Election: You MUST indicate your withholding election below.

Complete if you are providing a U.S. Address:

Federal Withholding:

Important: Please note that if you do not make a withholding election, federal income tax will be automatically withheld from your distribution at a rate of 10%.

Do not withhold federal income tax from my distribution.

Withhold federal income tax from my distribution (check one):

At a rate of 10%

At a rate of

 

% (must be greater than 10%)

State Withholding:

Important: State withholding may also be required in certain states when you elect federal income tax withholding. North Carolina residents are required to use form NC-4P (Withholding Certificate for Pension or Annuity Payments) for all North Carolina state withholding elections.

The minimum required for the state of

 

 

 

is

 

.

 

 

 

 

Do not withhold state income tax from my distribution.

from my distribution at the rate of

 

%, or amount of $

 

.

Withhold state income tax for the state of

 

 

 

Local Withholding:

Important: Local withholding may also be required in certain states.

The minimum required for the municipality of

 

 

 

is

 

.

 

 

 

 

 

 

 

 

 

 

 

 

Do not withhold local income tax from my distribution.

 

 

 

 

 

 

 

 

Withhold local income tax for the municipality of

 

from my distribution at the rate of

 

%, or amount of $

 

.

Complete if you are providing a Foreign Address:

Important: If you are a U.S. citizen or a Resident Alien with a foreign address, you may not waive the Federal withholding requirement and you must complete Form W-9. If you are a Non-Resident Alien, all IRA distributions are subject to a tax treaty rate or 30% tax withholding and you must complete Form W-8BEN.

I am a U.S. Citizen or Resident Alien living abroad (check one)

Withhold:

At a rate of 10%

At a rate of

 

% (must be greater than 10%)

6. BENEFICIARY’S ACKNOWLEDGMENT

I acknowledge that I have read and completed this Form. I further acknowledge that neither the Bank nor its agents or employees have made any representations to me regarding tax or any other effects of my elections/instructions on this Form, and the Bank has advised me to speak to my tax advisor regarding my elections/instructions. I direct the Bank to effect the elections/instructions I have made on this Form and agree that the Bank and its agents and employees have no liability for any action or inaction taken by them in reliance upon such elections/instructions.

BENEFICIARY SIGNATURE (REQUIRED)

 

DATE

Form 00-59-1289NSBW – Version 042412

BANK OF AMERICA, N.A. (THE “BANK”)

Traditional/Roth IRA Plan

Beneficiary Distribution Election Form

Informational Sheet

BANK OF AMERICA RECOMMENDS YOU CONTACT YOUR TAX ADVISOR BEFORE MAKING YOUR ELECTION

A beneficiary of an IRA Plan should elect how to receive the proceeds of the IRA Plan no later than 09/30 of the year following the year of the IRA Plan Depositor’s death. Any separate beneficiary accounts must be established by 12/31 of the year following the IRA Plan Depositor’s death. Available options depend on the age of the IRA Plan Depositor, the relationship of the beneficiary to the IRA Depositor, and the type of IRA Plan.

Complete, sign and send the distribution form:

To your Local Bank of America Banking Center

Or, mail to the following address:

Bank of America, N.A.

Mail code: TX2-979-02-14

P.O. Box 619040

Dallas, TX 75261-9943

1. DECEASED DEPOSITOR INFORMATION

Depositor’s Name — Enter the deceased person’s name

Social Security Number — Enter the deceased person’s social security number

Date of Birth — Enter the deceased person’s Date of Birth

Plan Number — Enter the deceased person’s Plan Number that is being processed

Date of Death — Enter the date of death for the account owner (deceased person

Plan type — Select the plan type of the deceased account holder

2. BENEFICIARY INFORMATION

Bank of America, like all financial institutions, is required by the USA PATRIOT ACT to obtain, verify, and record information that identifies each beneficiary of an IRA account with us. When you are a beneficiary of an IRA account with us, we will ask you for your name, address and other information that will allow us to identify you. The information we gather is for your protection and the country’s against terrorist activity and illegal money laundering schemes.

Beneficiary Name — Enter the name of the beneficiary for the plan identified in the Plan Number section

Social Security Number — Enter the Social Security Number for the beneficiary listed in the Beneficiary Name section. If the beneficiary is an entity, enter the Employer Identification Number (EIN)

Daytime Telephone Number — Enter the best contact number that you can be reach at during the day

Date of Birth — Date of birth for the person listed in the Beneficiary Name section. If the beneficiary is an Entity, please list the Date of Birth for the decedent

Relationship to the Depositor — Example, Daughter, Mother, or Father. If the beneficiary is an Entity please leave this field blank

Physical Street Address, City, State, Zip — Enter the street address for the beneficiary listed in the Beneficiary Name section. Please note: This must be a physical address to comply with the USA Patriot ACT.

Source of Income — Select the appropriate option from the list provided. If the beneficiary is an Entity, please select Inheritance.

Mailing Address — Complete only if different from the Physical Address listed.

Employer Name — List the beneficiary’s current employer

Country of Citizenship — Enter the Country that the Beneficiary is a citizen

Country of Residency — Enter the Country the Beneficiary resides in

OccupationEnter the Beneficiary’s current occupation or job ONLY if employment was selected as Source of Income

Non U. S. Citizen Required Information

of Days Present in the U.S. This Year — Enter the number of days that the beneficiary has been present in the U. S. for the current year

of Days Present in the U.S. Last Year — Enter the number of days that the beneficiary was in the U.S. during the last calendar year

of Days Present in the U.S. Prior to the Last Year — Enter the number of days that the beneficiary was in the U.S. Prior to the last full calendar year

Senior Political Figure and Politically Exposed Person

Indicate if you should be identified as a senior political figure or politically exposed person. Provide details on the position held or relationship.

3. DISTRIBUTION INSTRUCTIONS

Please ensure that you select only one of the payment options from the list. Selecting multiple options can delay the processing of your request.

Option A:

Lump Sum Distribution — Available to all beneficiaries. This option would be a single lump sum payment of the funds directly to the beneficiary

Life Expectancy — Payments would be made over the life expectancy of the beneficiary list in the Beneficiary Name section Specific Amount — Payment amounts would be disbursed as specified by the beneficiary (the beneficiary will be responsible to ensure that their disbursement amount meets IRS requirements)**

Specific Term — Payments will be disbursed over a specified term as elected by the beneficiary (the beneficiary will be responsible to ensure that their disbursement amount meets IRS requirements)**

5-year Payout — Payments will be disbursed by 12/31 of the 5th year post the year of death of the IRA Plan holder**

Option B (Spousal Options):

Spouse Treat as Own — An IRA plan honoring the deceased depositor’s existing IRA Plan terms would be established for the spouse, and the account would be treated as their own.

Spousal Exception — The spouse elects to delay taking distributions until the deceased account holder would have reached 70½

**Under these methods denoted above, additional amounts may be withdrawn at any time.

Please note: If you selected any option except Lump Sum, please ensure Section 4 is completed (if applicable).

4. RMD PAYMENT INSTRUCTIONS

The Beneficiary is responsible for taking their annual Required Minimum Distribution (RMD) from the IRA Plan. The Specific Start Date is limited to any date between January 7th and December 28th. If date selected is a non-business day, the distribution will be processed on the first business day following the date.

Please review the options carefully and select the appropriate distribution for the beneficiary.

5. TAX WITHHOLDING ELECTION

Notice of Withholding Election: Distributions you receive from your Individual Retirement Account are subject to Federal income tax withholding and may be subject to State income tax withholding and/or Local income tax withholding based on your state and municipality of residence unless you elect not to have withholding apply.

You are liable for Federal, and applicable State and Local income taxes on the taxable portion of your distribution. If you elect not to have withholding apply to your distribution, or if you do not have enough tax withheld from your distribution, you may be responsible for payment of estimated taxes. You may also incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient.

You MUST indicate your withholding election on the form provided.

Federal Withholding:

Important: Please note that if you do not make a withholding election, federal income tax will be automatically withheld from your distribution at a rate of 10%.

State Withholding:

Important: State withholding may also be required in certain states when you elect federal income tax withholding. Note that North Carolina residents must use Form NC-4P (Withholding Certificate for Pension or Annuity Payments) to elect or waive North Carolina state withholding.

Local Withholding:

Important: Local withholding may also be required in certain states.

Complete denoted section if you are providing a Foreign Address:

Important: If you are a U.S. citizen or a Resident Alien with a foreign address, you may not waive the Federal withholding requirement and you must complete Form W-9. If you are a Non-Resident Alien, all IRA distributions are subject to a tax treaty rate or 30% tax withholding and you must complete Form W-8BEN.

For additional questions, please contact your local Bank of America Banking Center or our customer service associates are available toll-free at 1.888.827.1812 to answer questions and provide additional information.

Document Data

Fact Name Description
Form Purpose This form allows beneficiaries to elect how to receive distributions from a deceased depositor's Traditional or Roth IRA account.
Identification Requirement Under the USA PATRIOT ACT, the Bank must verify and record information about each beneficiary to prevent illegal activities.
Deadline for Election Beneficiaries must make their distribution election by September 30 of the year following the depositor's death.
Separate Accounts Any separate beneficiary accounts must be established by December 31 of the year following the depositor's death.
Payment Options Beneficiaries can choose from several options including Lump Sum, Life Expectancy, Specific Amount, Specific Term, or 5-Year Payout.
Spousal Options Spouses may elect to treat the IRA as their own or delay distributions until the deceased would have reached age 70½.
Required Minimum Distribution (RMD) Beneficiaries are responsible for taking their annual RMD, with specific start dates limited to January 7 through December 28.
Tax Withholding Distributions are subject to federal and possibly state and local income tax withholding unless the beneficiary opts out.
State-Specific Forms North Carolina residents must use Form NC-4P for state withholding elections, as required by state law.

How to Use Bank Of America Beneficiary

Completing the Bank of America Beneficiary form is an important step in managing the distribution of an IRA account after the account holder's passing. This process involves providing necessary information about both the deceased account holder and the beneficiary. Once the form is filled out accurately and submitted, the bank will process the beneficiary's election regarding the distribution of the IRA funds.

  1. DECEASED DEPOSITOR INFORMATION
    • Enter the deceased person's name.
    • Provide the deceased person's social security number.
    • Input the deceased person's date of birth.
    • Enter the plan number associated with the deceased person's account.
    • Specify the date of death for the account owner.
    • Select the type of plan (Traditional IRA or Roth IRA).
  2. BENEFICIARY INFORMATION
    • Enter the beneficiary's name.
    • Provide the beneficiary's social security number or Employer Identification Number (EIN) if applicable.
    • Input the beneficiary's daytime telephone number.
    • Enter the beneficiary's date of birth.
    • Specify the beneficiary's relationship to the deceased depositor (e.g., Daughter, Mother).
    • Provide the physical street address, city, state, and zip code for the beneficiary.
    • Complete the mailing address if it differs from the physical address.
    • Select the source of income from the provided options.
    • List the beneficiary's current employer if employment is selected as the source of income.
    • Enter the country of citizenship and residency for the beneficiary.
    • Input the beneficiary's occupation if employment was selected.
    • For non-U.S. citizens, provide the number of days present in the U.S. for the current year, last year, and the year before that.
    • Indicate if the beneficiary or any immediate family members have held a political position.
  3. DISTRIBUTION INSTRUCTIONS
    • Select one payment option for the distribution.
    • If choosing a lump sum, specify how to receive the funds (e.g., check, deposit).
    • For other options, ensure to provide the necessary details regarding payment terms.
  4. RMD PAYMENT INSTRUCTIONS
    • Select the frequency of the Required Minimum Distribution (RMD): Monthly, Quarterly, Semi-Annually, or Annually.
    • Choose a specific start date for the RMD.
    • Indicate how to receive the RMD funds (check or deposit).
  5. TAX WITHHOLDING ELECTION
    • Indicate whether to withhold federal income tax from the distribution.
    • Specify state and local withholding preferences if applicable.
    • If providing a foreign address, complete the necessary tax forms as required.
  6. BENEFICIARY’S ACKNOWLEDGMENT
    • Sign and date the form to acknowledge completion and understanding of the information provided.

After filling out the form, review all entries for accuracy. Once confirmed, submit the completed form to your local Bank of America Banking Center or mail it to the designated address provided in the form. Ensure that you keep a copy for your records. If you have any questions during this process, don't hesitate to reach out to Bank of America's customer service for assistance.

Key Facts about Bank Of America Beneficiary

What is the purpose of the Bank of America Beneficiary form?

The Bank of America Beneficiary form is designed for individuals who are beneficiaries of a Traditional or Roth IRA account. It allows them to elect how they wish to receive the proceeds from the IRA following the death of the account holder. The form collects necessary information to ensure compliance with legal regulations and to protect against fraudulent activities.

What information is required about the deceased depositor?

When filling out the form, you must provide specific details about the deceased depositor. This includes their name, date of birth, date of death, Social Security number, plan number, and the type of IRA (Traditional or Roth). This information helps the bank identify the account and process the distribution correctly.

What information do I need to provide as a beneficiary?

As a beneficiary, you will need to submit your name, Social Security number, date of birth, daytime telephone number, physical address, mailing address (if different), country of citizenship, and country of residency. Additionally, you must indicate your relationship to the deceased depositor and provide information regarding your source of income.

What are the distribution options available to beneficiaries?

Beneficiaries have several options for receiving distributions from the IRA. They can choose a lump sum distribution, payments over their life expectancy or the deceased's life expectancy, specific amounts, or a term payout over a set number of years. Spouses have additional options, such as treating the IRA as their own or delaying distributions until a certain age.

What is the deadline for making a distribution election?

Beneficiaries must elect how to receive the proceeds of the IRA by September 30 of the year following the year of the depositor's death. Additionally, any separate beneficiary accounts must be established by December 31 of the same year to ensure compliance with IRS regulations.

What are Required Minimum Distributions (RMDs) and how do they apply?

Required Minimum Distributions (RMDs) are mandatory withdrawals that beneficiaries must take from the IRA once they reach a certain age. The beneficiary is responsible for ensuring that RMDs are taken annually, and they must provide written distribution instructions to the bank. The start date for RMDs can be selected between January 7th and December 28th of each year.

How does tax withholding work for distributions from the IRA?

Distributions from an IRA are subject to federal income tax withholding, and state or local taxes may also apply based on your residence. Beneficiaries can choose to have taxes withheld at a specified rate or opt out of withholding. If no election is made, federal tax will automatically be withheld at a rate of 10%.

What if I have questions about completing the form?

If you have questions or need assistance while completing the Bank of America Beneficiary form, you can reach out to your local Bank of America Banking Center. Additionally, customer service representatives are available at 1.888.827.1812 to provide further guidance and answer any questions you may have.

What should I do once I have completed the form?

Once you have filled out and signed the Beneficiary form, you should submit it either in person at your local Bank of America Banking Center or mail it to the specified address provided on the form. Ensure that you keep a copy for your records before submitting it.

Common mistakes

Filling out the Bank of America Beneficiary form can be a straightforward process, but there are common mistakes that individuals often make. One significant error is failing to provide complete deceased depositor information. This section requires accurate details such as the depositor’s name, social security number, date of birth, and date of death. Omitting any of this information can delay the processing of the form.

Another frequent mistake involves the beneficiary's information. Beneficiaries sometimes neglect to include their social security number or provide incorrect contact details. This information is essential for identification and communication purposes. Without it, the bank may face challenges in processing the request.

In addition, beneficiaries often select multiple payment options when they should only choose one. Selecting more than one option can lead to confusion and delays in processing the distribution. It is crucial to read the instructions carefully and make a clear selection to avoid this pitfall.

Tax withholding elections can also be a source of errors. Many beneficiaries either fail to make a selection or mistakenly believe that withholding is optional. If no election is made, the bank will automatically withhold federal income tax at a rate of 10%. Understanding the tax implications is vital to avoid unexpected tax liabilities.

Beneficiaries sometimes overlook the Required Minimum Distribution (RMD) instructions. It is the beneficiary's responsibility to ensure that RMDs are taken on time. Failing to do so can result in penalties. Therefore, it is essential to understand the RMD requirements and select an appropriate start date for distributions.

Another common mistake is not providing a physical address. The form requires a physical street address to comply with regulations. Using a P.O. Box or failing to include an address can lead to processing issues.

Many individuals also fail to check the box regarding their status as a senior political figure or politically exposed person. This information is necessary for compliance with the USA PATRIOT ACT. Not disclosing this can lead to complications in processing the form.

Finally, beneficiaries may forget to sign and date the form. A missing signature can render the form invalid, resulting in delays. It is crucial to double-check that all required fields are completed, including the acknowledgment section.

By being aware of these common mistakes, beneficiaries can ensure that their forms are filled out correctly and submitted promptly, facilitating a smoother distribution process.

Documents used along the form

When dealing with the Bank of America Beneficiary form, there are several other forms and documents that may be needed to ensure a smooth process. Each of these documents plays a crucial role in managing the distribution of an IRA account. Here’s a brief overview of some commonly used forms:

  • Form W-9: This form is used by U.S. citizens or resident aliens to provide their taxpayer identification number to the financial institution. It is essential for tax reporting purposes.
  • Form W-8BEN: Non-resident aliens use this form to certify their foreign status and claim any applicable tax treaty benefits. It helps determine the correct withholding tax rate on distributions.
  • NC-4P: This is a North Carolina-specific form for withholding elections related to pension or annuity payments. Residents must complete this if they want to elect or waive state withholding.
  • Beneficiary Designation Form: This document allows account holders to specify who will inherit their assets upon their passing. It is crucial for ensuring that the right beneficiaries are named.
  • Death Certificate: A certified copy of the deceased's death certificate is often required to process the beneficiary claim and validate the account holder's passing.
  • Tax Withholding Election Form: This form allows beneficiaries to choose how much tax, if any, should be withheld from their distributions. It is important for managing tax liabilities.
  • RMD Distribution Request Form: If a beneficiary is required to take a Required Minimum Distribution (RMD), this form is necessary to specify the amount and timing of those distributions.
  • Power of Attorney (POA): If a beneficiary is unable to act on their own behalf, a POA document may be needed to allow another person to manage the IRA account and make decisions regarding distributions.
  • Trust Documentation: If the IRA is held in a trust, relevant trust documents may be necessary to verify the trustee’s authority to manage the account and distribute assets.

Having these forms ready can significantly streamline the process of claiming benefits from an IRA account. It’s always advisable to consult with a tax advisor or financial professional to ensure that all necessary documentation is in order. This preparation can help avoid delays and ensure that beneficiaries receive their rightful assets in a timely manner.

Similar forms

  • Life Insurance Beneficiary Designation Form: Similar to the Bank of America Beneficiary form, this document identifies who will receive the life insurance benefits upon the policyholder's death. It collects information about the beneficiary, including their relationship to the policyholder and their contact details.
  • Retirement Plan Beneficiary Designation Form: This form is used for various retirement plans, such as 401(k)s. It specifies who will inherit the retirement account after the account holder passes away, similar to how the Bank of America form designates IRA beneficiaries.
  • Will: A will outlines how a person's assets will be distributed after their death. While the Bank of America form focuses on specific financial accounts, a will serves a broader purpose and can include multiple assets and beneficiaries.
  • Trust Document: A trust document establishes a trust to manage assets for beneficiaries. Like the Bank of America form, it requires detailed information about the beneficiaries and their relationship to the trust creator, ensuring proper distribution of assets.
  • Power of Attorney: This document allows someone to act on behalf of another person in financial matters. While it does not designate beneficiaries, it shares a similar purpose of managing financial affairs, especially in the event of incapacity or death.

Dos and Don'ts

When filling out the Bank of America Beneficiary form, it is important to follow specific guidelines to ensure accuracy and compliance. Here is a list of ten things you should and shouldn't do:

  • Do provide accurate information for the deceased depositor, including their name, date of birth, and social security number.
  • Don't leave any required fields blank. Incomplete forms can delay processing.
  • Do ensure that the beneficiary's physical address is a valid street address.
  • Don't select more than one payment option. Only one choice is allowed to avoid confusion.
  • Do consult with a tax advisor before making any elections regarding distributions.
  • Don't forget to sign and date the form. An unsigned form will not be processed.
  • Do indicate your tax withholding preferences clearly to avoid automatic deductions.
  • Don't use abbreviations or nicknames for names; full legal names are required.
  • Do keep a copy of the completed form for your records.
  • Don't submit the form to an incorrect address. Ensure it is sent to the designated Bank of America location.

Misconceptions

Misconceptions about the Bank of America Beneficiary Form

  • Anyone can be named as a beneficiary. Many believe that any individual can be designated as a beneficiary. However, the form requires specific information about the beneficiary, including their relationship to the deceased depositor. This ensures proper identification and compliance with regulations.
  • There is no deadline for making beneficiary elections. Some individuals think they can take their time with these decisions. In reality, beneficiaries must elect how to receive proceeds by September 30 of the year following the depositor's death. Delays can complicate the process.
  • Tax withholding is optional for all beneficiaries. A common misconception is that beneficiaries can choose whether or not to have taxes withheld from their distributions. In fact, federal income tax withholding is automatically applied unless the beneficiary explicitly opts out on the form.
  • All distribution options are available to every beneficiary. Many assume that all beneficiaries can choose any distribution method. However, the available options depend on factors like the age of the deceased and the beneficiary's relationship to them. Understanding these nuances is critical.
  • Beneficiaries don’t need to provide extensive information. Some may think minimal details are sufficient. The form requires comprehensive information, including citizenship status and income sources, to comply with regulations. Failing to provide complete information can delay processing.

Key takeaways

Filling out the Bank of America Beneficiary form can feel overwhelming, but understanding the key points can help simplify the process. Here are some important takeaways:

  • Complete Required Information: Ensure you fill in all necessary details about both the deceased account holder and yourself as the beneficiary. This includes names, dates of birth, and social security numbers.
  • Deadline Awareness: Make your election on how to receive the IRA proceeds by September 30 of the year following the account holder's death. Separate beneficiary accounts must be established by December 31 of that same year.
  • Payment Options: Choose only one payment option from the list provided. Options include lump sum distributions, life expectancy payments, or specific term payments.
  • Tax Considerations: Understand that distributions may be subject to federal and state tax withholding. You can choose whether or not to withhold taxes, but not making an election may result in automatic withholding.
  • Required Minimum Distributions (RMD): As a beneficiary, you are responsible for taking your annual RMD. Ensure to select a start date for these distributions that falls between January 7 and December 28.
  • Consult a Tax Advisor: Bank of America recommends speaking with a tax advisor before making your election to understand the implications of your choices.
  • Verification Process: Be prepared to provide identification information as required by the USA PATRIOT ACT. This is to ensure your identity and protect against illegal activities.
  • Signature Required: Don’t forget to sign and date the form. Your acknowledgment of the information provided is crucial for processing your request.

Taking the time to understand these points can make filling out the form easier and help you make informed decisions regarding your inheritance.