Quantcast

IRS Form 5305-R is one of the required forms that a financial institution will ask you to complete when you open a Roth IRA. According to Dan Harding, CEO of Retirement Administration, Inc., the form is used to document the creation of a Roth IRA that meets the requirements of Internal Revenue Code section 408A. A Roth IRA can be set up once the form is completed.

Because only approved financial institutions can hold retirement account funds, the person opening the IRA, called the “grantor,” must name the financial institution as the trustee of the account. This form is the acknowledgement of that relationship. Both parties, grantor and trustee, complete and sign the form.

Many financial institutions create their own version of the form with all of the same IRS language but naming themselves as the trustee, or holder, of the account. No version of this form gets filed with the IRS. Instead, the grantor should keep a copy of the form in his or her files as long as the Roth IRA exists.