State Codes and Statutes
Statutes > Rhode-island > Title-42 > Chapter-42-116 > 42-116-12-1SECTION 42-116-12.1
§ 42-116-12.1 Distribution of funds inindividual retirement accounts. – (a) Prior to the distribution of depositors' funds in individual retirementaccounts in accordance with § 42-116-12, the corporation shall providedepositors with the option of receiving the funds on deposit or transferringthe funds to a federally insured institution or other individual retirementaccount that meets the Internal Revenue Code, 26 U.S.C. § 1 et seq., inaccordance with applicable federal tax law and regulations.
(b) The corporation shall mail a form to all depositors withfunds on deposit in individual retirement accounts thirty (30) days prior tothe distribution of the funds in accordance with § 42-116-12. The formshall include: a statement that under current federal law, an account holderwho receives proceeds from an individual retirement account, prematurely, priorto age fifty-nine (59) years, six (6) months, generally pays a ten percent(10%) penalty; an election by the depositor to receive the funds in accordancewith the schedule of payments in § 42-116-12 or have the funds transferredto an institution designated by the depositor, and shall provide that thesignature of the depositor shall constitute an authorization to transfer funds.The corporation shall also mail a copy of the form authorization to thedesignated financial institution.
