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Direction of Investment Authorization (IRA LLC)
- I confirm that I am directing the Administrator (Alto Solutions, Inc. d/b/a ALTO IRA) to establish a limited liability company in which the Custodian for the benefit of my account shall be sole member (the "LLC") and to transfer such funds or other assets between my account and the LLC as I may further direct. I represent and agree that I understand the purposes for, and proper way to use and manage, the LLC
- I have thoroughly read, understand, approve and adopt the Operating Agreement of the LLC in the form furnished by the Administrator, or such other form as I have furnished or uploaded to the Administrator. To the fullest extent allowed under the law, I agree to hold the Custodian/Administrator harmless from any claims, liabilities, losses or expenses arising from their compliance with or performance of the terms of the Operating Agreement. I understand I may modify, replace or terminate the Operating Agreement in my discretion upon further written notice and direction to the Administrator.
- I assume sole responsibility for management of the LLC, including without limitation the following actions, acting as the Manager of the LLC:
I acknowledge and agree that the Administrator and Custodian assume no responsibility or liability for any the foregoing, or any tax or other consequences of any transaction that I direct by or between the LLC and my account.
- Opening and managing bank accounts in the name of the LLC
- Making and managing investments by or through the LLC
- Maintaining and paying expenses associated with assets held by the LLC
- Appointing the manager of the LLC (who shall be me or such other person named in the Operating Agreement), determining the manager's permitted activities and terms of the manager's relationship with the LLC
- Avoiding prohibited transactions through the LLC
- Determining when and how to fund the LLC
- Directing all transactions between my AltoIRA account and the LLC, and
- Directing all distributions or other fund transfers from the LLC to my account.
- I agree that neither the Administrator nor the Custodian endorses any investment products, or assumes any responsibility or liability for the acts or omissions of any provider or issuer of any investment or other third party Entity
- I agree that the roles of the Administrator and the Custodian are limited, and their responsibilities do not include investment advice, management of any asset held in my account or the LLC, or investment selection for my account. I agree that neither the Administrator nor the Custodian has provided or assumed responsibility for any tax, legal or financial advice with respect to formation or management of the LLC or any investment by my account, and I agree that they will not be liable for any loss which results from my decision to establish, maintain, use, manage or make any investment through the LLC. I agree that neither the Administrator nor the Custodian has reviewed or will review the merits, legitimacy, appropriateness or suitability of using the LLC or any activity by the LLC, or any transaction by the LLC or my account, and I certify that I have done my own due diligence investigation prior to instructing the Administrator to take these actions for my account.
- I agree that neither the Administrator nor the Custodian determines whether any investment is acceptable under the Employee Retirement Income Securities Act (ERISA), the Internal Revenue Code (IRC), or any applicable federal, state, or local laws, including securities laws. I agree that it is my responsibility to review any and all LLC and account transactions and investments to ensure compliance with these requirements. I agree that in processing any transaction the Administrator and the Custodian are only acting as my agent, and nothing will be construed as conferring fiduciary status on either the Administrator or the Custodian.
- I agree that the Administrator and the Custodian will not be liable for any investment losses sustained by me, the LLC or my account as a result of any transaction. To the fullest extent allowed under the Internal Revenue Code, without engaging in a prohibited transaction under section 4975 of the Code, I agree to indemnify and hold harmless the Administrator and the Custodian and their respective officers, directors, shareholders and employees, agents, and assigns, from any and all claims, actions, proceedings, damages, judgments, liabilities, costs and expenses (including reasonable attorneys’ fees) and any loss to my account as a result of any action I have directed or taken or failed to direct or take in connection with my account, including, without limitation, claims, actions, proceedings, damages, judgments, liabilities, costs and expenses (including reasonable attorneys’ fees) asserted by me.
- . I agree that if this Direction of Investment and any accompanying documentation are not received as required, or, if received, are unclear in the opinion of the Administrator, or if there is insufficient undirected cash in my account to fully comply with my instructions and to pay all fees, the Administrator may not process this transaction until proper documentation and/or clarification and/or funds are received, and the Administrator and Custodian will have no liability for loss of any opportunity, income or appreciation. I agree that all communications regarding this Direction of Investment must be in writing or entered electronically in a form approved by the Administrator, by me or by my authorized agent on my behalf, and that no oral modification of my instructions will be valid.
- I agree that my account is subject to the provisions of Internal Revenue Code (IRC) §4975, which defines certain prohibited transactions. I agree that it is my sole responsibility to review investments and other transactions involving my account and the LLC and to determine whether they are prohibited under §4975 or under any other federal, state or local law. I agree to seek the counsel from licensed attorneys, CPAs, and other professionals as to the legal, tax and financial ramifications from my use or management of the LLC and investments I direct. I certify that carrying out this Direction of Investment will not constitute a prohibited transaction and shall comply with all applicable federal, state, and local laws, regulations and requirements.
- I agree that I am responsible for confirming that no “disqualified person” with respect to my account will benefit from the formation, funding, management or activities of the LLC or investments thereof in any way which is prohibited by IRC §4975. I agree the Administrator and Custodian have no responsibility for determining or monitoring the relationship of the LLC or assets held by the LLC with any person.
- I understand that while the IRS will consider the LLC a disregarded entity, it is still fully subject to the rules of IRC §4975, and LLC officers, directors, managers and the like may become fiduciaries of my account. I represent I have consulted with competent legal counsel regarding these regulations and their potential application to the LLC prior to giving this Direction of Investment.
- I further agree that my account is subject to the provisions of IRC §§511-514 relating to Unrelated Business Taxable Income (UBTI) of tax-exempt organizations. If an investment generates UBTI, I agree that I will be responsible for reporting such income, and I agree to provide a fully completed 990T to the Administrator or Custodian for timely filing with the IRS. In the event such form or information is not provided 90 days before the deadline for filing the 990T I understand the Administrator or Custodian will take all steps necessary to provide the IRS with a valid return and I will reimburse them for all related expenses. I agree that neither the Administrator nor the Custodian makes any determination of whether or not investments in my AltoIRA account or the LLC generate UBTI.
- I agree that the assets in my account are required by the IRS to be valued annually as of the end of each calendar year. I agree to provide the prior year end value of my account's LLC interests by no later than January 15th of each year in writing or other form provided by the Administrator, with substantiation to support the value provided. I agree that the Administrator and the Custodian do not conduct appraisals and do not seek to verify values provided to it by myself or by any third party on my account’s behalf. However, if I do not provide a valuation and/or sufficient supporting documentation on a timely basis, I agree to reimburse the Administrator and Custodian for all expenses they incur in obtaining an accurate valuation to be filed with the IRS.
- I agree that with some types of accounts there are rules for Required Minimum Distributions (RMDs) from the account. If I am now subject to the RMD rules in my account, or if I will become subject to those rules during the term of this investment, I represent that I have verified either that the investment will provide income or distributions sufficient to cover each RMD, or that there are other assets in my account or in other accounts that are sufficiently liquid (including cash) from which I will be able to withdraw my RMDs. I agree that failure to take RMDs may result in a tax penalty of 50% of the amount I should have withdrawn.
- To the fullest extent allowed under the Internal Revenue Code, without engaging in a prohibited transaction under section 4975 of the Code, I agree to indemnify and hold harmless the Administrator and the Custodian and their respective officers, directors, shareholders, employees, agents, and assigns, from and against any and all liabilities, losses, costs and expenses arising from or relating to the performance of their services with respect to this investment or my account, including but not limited to any liability for taxes, penalties or other amounts because the LLC or an investment held therein (a) is or may be offered, issued, transferred, acquired or operated in violation of applicable law, (b) is or becomes a prohibited transaction under IRC §4975, (c) generates UBTI, or (d) results in a distribution of any value.
- I certify that I have examined this Direction of Investment and any accompanying documents or information, and to the best of my knowledge and belief, it is all true, correct and complete.