ACCOUNT LOGIN
User ID
User ID / Password Help

Getting Online Guide

Card Services


divder_line
<br>

divder_line divder_line divder_line
sidebar_background_extend

Safe Harbor IRA




What is a Safe Harbor IRA?

A Safe Harbor IRA is a type of individual retirement account in which assets of an automatically rolled over small balance or terminated retirement plan are maintained by a custodian. A Safe Harbor IRA is established by the plan’s sponsor for the benefit of the ex-plan participant until the latter provides proof of identity to the Safe Harbor IRA custodian and asserts ownership of the account. A Safe Harbor IRA is a limited purpose, non-transactional account to which additional contributions cannot be made and an investment other than the stable-value investment vehicle offered by the custodian cannot be selected. There are two types of Safe Harbor IRAs: (i) Safe Harbor Individual Retirement Account and (ii) Safe Harbor Roth Individual Retirement Account.


I never authorized a rollover. Why was my money transferred to The Bancorp Bank?

Under United States Department of Labor (DOL) rules, retirement plan sponsors may remove small balance accounts of former employees or remove terminated retirement plans. When you accepted the terms and conditions of your plan, you agreed that if certain circumstances occurred, your plan provider had the right to transfer your plan balance to a Safe Harbor IRA. When those circumstances occurred, your plan provider transferred the account to The Bancorp Bank (“Bank”). The Bancorp Bank is one of several banks in the U.S. offering a Safe Harbor IRA program.


Who is The Bancorp?

The Bancorp, Inc. (NASDAQ: TBBK) is a financial services company headquartered in Wilmington, Delaware. The company’s only subsidiary, The Bancorp Bank, is a state-chartered bank, Member FDIC, Equal Housing Lender. For more information, please visit www.thebancorp.com.


What options do I have regarding my Safe Harbor IRA?

Until you successfully identify yourself and assert control over the account, The Bancorp Bank (“Bank”) will maintain the Safe Harbor IRA with no tax penalties to you.

Option 1. You have the right to revoke the Safe Harbor IRA. The right of revocation must be exercised within seven (7) days of the “Opening Date” (described below) or ten (10) days from the date we first mailed the Welcome Kit, whichever is later. Full instructions appear in Part 5 of the Safe Harbor IRA Application, Adoption Agreement, and Distribution Form. If you exercise your revocation right, the Bank will return any funds in the Safe Harbor IRA to you after you submit the necessary documents and they are verified by the Bank. If you do not exercise your right of revocation, it is assumed you have accepted the terms and conditions of the Safe Harbor IRA, including the fees and any such stable-value investment as determined by the Bank to be a “qualified investment” for a Safe Harbor IRA under Department of Labor regulations.

The “Opening Date” appears in the letter included in the original Welcome Kit, or it can be determined by calling Customer Care toll-free at 866.540.9364. Representatives are available 24/7 to assist you.

Option 2. To assert control over the Safe Harbor IRA, complete and return the notarized Safe Harbor IRA Application, Adoption Agreement, and Distribution Form (“Adoption Agreement”) to us so we can verify your identity. Until you decide what to do about the account, your funds held at the Bank are FDIC-insured up to $250,000. Refer to Checklist 1 of the Adoption Agreement to ensure all documents are complete before submitting them to the Bank.

Option 3. To close the Safe Harbor IRA, complete and return the notarized Safe Harbor IRA Application, Adoption Agreement, and Distribution Form (“Adoption Agreement”) to us. Refer to Checklists 1 and 2 of the Adoption Agreement to ensure all documents are complete before submitting them to the Bank.


How do I close my Safe Harbor IRA?

You may close the Safe Harbor IRA by submitting a completed and notarized Safe Harbor IRA Application, Adoption Agreement, and Distribution Form (“Adoption Agreement”). A copy of the Adoption Agreement is included in the Welcome Kit we mail to each new customer.  The Safe Harbor Roth IRA and Safe Harbor IRA Adoption Agreements are available for downloading and printing at www.thebancorpbank.com. You may also call Customer Care toll-free at 866.540.9364 to have the appropriate Adoption Agreement mailed or faxed to you. Representatives are available 24/7 to assist you.


Why do I need to fill out forms to close my Safe Harbor IRA?

In addition to The Bancorp Bank (“Bank”) using the notarized Safe Harbor IRA Application, Adoption Agreement, and Distribution Form (“Adoption Agreement”) to confirm your identity, the completed document will include your designation of beneficiaries and confirmation of your Taxpayer Identification Number (“TIN”). Because the account was rolled over to the Bank and you did not initially open the account with us, we must perform this due diligence to protect you and your account, i.e., this process satisfies our legal requirements under the USA PATRIOT Act and the rules of the Bank’s Customer Identification Program (CIP). Additionally, when the account was rolled over to us, any prior beneficiary designations you made were nullified. The Adoption Agreement will provide us with information about where you wish to send your account balance.


Am I required to send a copy of a photo I.D., such as a driver’s license?

No, you are not required to enclose a copy of your driver’s license or other government-issued photo I.D. with your completed and notarized Safe Harbor IRA Application, Adoption Agreement, and Distribution Form. However, in some cases, we may need to ask for a copy of a photo I.D. If we do, the closure process will be delayed until the requested I.D. verification document(s) is submitted, reviewed, and approved.


What kinds of documentation might I be required to submit, if requested?

Please click here to see a complete list of acceptable customer I.D. verification documents. 


How long will it take to close my Safe Harbor IRA?

If submitting an online closure request, allow up to 10 business days for us to review your completed documents and process your closure request. If submitting a mail/fax closure request, allow 14 to 20 business days for us to review your completed documents and process your closure request. For all requests, please allow an additional 7 to 10 business days’ mailing time for a distribution check, or 2 to 3 business days to process an ACH (electronic) payment. 


The account owner is deceased and I am the beneficiary. How do I access the Safe Harbor IRA?

To assert ownership of the account as a beneficiary, please follow these steps:

  1. On the Safe Harbor IRA Application, Adoption Agreement, and Distribution Form (“Adoption Agreement”):
    1. Select the beneficiary option in Part 1
    2. Complete the beneficiary information in Parts 1B, 6, and 10
    3. Select ‘Inherited IRA distribution’ in Part 7 and provide the Safe Harbor IRA owner’s name and Social Security number.
       
  2. Provide these documents:
    1. If you are the surviving spouse: We require the Safe Harbor IRA owner’s death certificate and a marriage certificate, in addition to the Adoption Agreement.
    2. If you are a beneficiary who is not a spouse: We require beneficiary documentation, such as a) a letter testamentary; b) a letter of administration; c) a probate letter; d) a short certificate; or e) a court affidavit, in addition to the Adoption Agreement.

As a beneficiary, you must ensure that the Adoption Agreement you send to us is signed in the presence of a notary public.


How do I find my Safe Harbor IRA account number?

The Safe Harbor IRA account number is used for internal purposes only. We can look up account details using your name and Social Security number, so you do not need to include an account number on the documents you send to us.


What fees are associated with my Safe Harbor IRA?

As of November 16, 2017, fees charged for the Account are:

  • A Maintenance Fee of $35.00 applies if your notice of revocation of the Account is not timely received within the revocation period described in ARTICLE 1 of the Disclosure Statement. This is a one-time fee.
  • An Annual Fee of $35.00 is charged on each one-year anniversary date. The Annual Fee is not prorated if the Account or the IRA is closed for any reason prior to the next anniversary date.
  • An Account Closing Fee of $25.00 is charged if the Account is closed any time after the expiration of the revocation period described in ARTICLE 1 of the Disclosure Statement. As described below, an additional fee may apply depending on which method of distribution or rollover of funds you choose and/or delivery option you select.
  • The following fees apply for specific methods of distribution or rollover of funds and expedited delivery: fee for electronic funds transfer (ACH): $5.00; fee for treasurer’s check made payable to another financial institution: $12.00 (costs of transfer paperwork, if required by receiving institution are included); and fee for expedited overnight U.S. delivery: $50.00. There is no fee when the distribution is provided by check made payable to you and sent by first-class mail.
  • A Legal Processing Fee of $100.00 applies if the Bank receives and processes any legal service of process with respect to the Account, such as a subpoena, garnishment, levy or citation to discover assets.

Once the Account has been established, all fees can be changed from time to time without notice to you.


How are Safe Harbor IRA funds currently invested?

Safe Harbor IRA funds are invested in an FDIC-insured Money Market Account or other stable-value investment as determined by the Bank to be a “qualified investment” under Department of Labor regulations. For rate information, please see the letter included in the Welcome Kit we sent you when your account was transferred to us or visit our customer website at www.thebancorpbank.com.


Can I get online access to my Safe Harbor IRA?

The Bank does not offer online access for Safe Harbor IRAs. For current account information, please call Customer Care toll-free at 866.540.9364. Representatives are available 24/7 to assist you.


How long have you had my Safe Harbor IRA?

We regularly receive new Safe Harbor IRAs from plan providers. We may have recently received your account, or it’s possible we have maintained yours for a longer period. The letter included in the Welcome Kit we sent you when your account was transferred to us indicates the opening date of your Safe Harbor IRA. In addition, the Annual Fee Notice will indicate the opening date.


Will you accept a rush request to close my Safe Harbor IRA?

Requests to close Safe Harbor IRAs are processed in order of the date we receive them. We do not expedite the process by individual request. However, we will rush the closure process if it is delayed due to our error. We offer expedited delivery (overnight delivery) for a fee, currently $50. The full Schedule of Fees appears on our customer website at www.thebancorpbank.com.


What is a Form 5305?

There are two types of this form. Form 5305-R pertains to the Safe Harbor Roth IRA and Form 5305 pertains to the Safe Harbor IRA.  Both forms provide information on what the account is, the Bank’s rights as Trustee, and your rights as the Grantor.


How did you obtain my most recent address?

In order to obtain current address information, we use a third-party service provider that maintains a comprehensive database of public records.




Return to Top