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What
is a Rollover IRA?
A Rollover IRA
holds only funds originating from an employer-sponsored retirement plan.
This can include rollover IRA funds from another financial institution
that originated from an eligible employer-sponsored retirement plan.
Eligible plans include qualified pension and profit sharing plans, such
as 401(k) plans, Keogh plans and employee stock ownership plans (ESOPs),
as well as Section 403(b) tax-sheltered annuities (TSAs) for employees
of schools and certain tax-exempt organizations.
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What
situations trigger a rollover?
Several situations
may trigger a distribution from an employer-sponsored retirement plan
- a change of employer, retirement, disability, divorce, or termination
of your employer's plan. Additionally, your plan may allow you to take
distributions when you reach age 55. If you already have a contributory
IRA, you should open a separate rollover IRA if you intend to roll your
distribution funds back to another employer-sponsored retirement plan
in the future.
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How
can I move my funds to an Armada Funds IRA from my employer-sponsored retirement
plan?
You can choose
a Direct Rollover or an Indirect Rollover to move your funds from an
employer-sponsored retirement plan to an IRA. If you choose a Direct
Rollover, you arrange with your employer to move your distribution from
the company's plan directly into an IRA on your behalf. The check (or
securities) should be payable to Armada Funds as custodian for your
IRA plan. This avoids mandatory tax withholding.
With an Indirect
Rollover, the plan's trustee pays out the distribution to you. You actually
receive a check payable to you or securities registered in your name.
Before choosing
an Indirect Rollover, keep in mind that the trustee is required to withhold
20% as federal income tax and pay it directly to the Internal Revenue
Service (IRS) on your behalf. The trustee may also withhold an additional
amount for state income tax. Then you'll have 60 calendar days to deposit
the funds into your IRA. You'll have to pay federal and state income
taxes, plus possible tax penalties for early withdrawal, on any part
of your distribution which you do not roll over. This includes the 20%
withheld and not paid over to you. You can avoid current income taxes
and penalties only if you replace the amount withheld with money from
other sources. This money must also be deposited into your IRA within
60 days to avoid these taxes and penalties. (In all cases, you'll receive
credit for the amount withheld when you file your tax return.)
A Direct Rollover,
in contrast, allows you to move 100% of your distribution from an employer-sponsored
retirement plan without withholding. A Direct Rollover is more practical
for many people because there's no need to add cash to make up the difference
or to wait for a tax refund.
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Are
all distributions from an employer-sponsored retirement plan eligible
for a rollover into an IRA?
No. When you receive
your distribution, you should also receive written information that
specifies the exact amount you're receiving and the amount that's eligible
for a rollover.
You're responsible
for determining whether your distribution qualifies as a rollover. Before
opening your IRA, make sure your transaction meets all the requirements.
If you have questions about your individual situation, contact your
plan administrator or a personal adviser, such as an accountant, attorney
or other tax professional.
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How
do I establish a Direct Rollover to avoid mandatory federal tax withholding?
Before you receive
a distribution from your employer-sponsored retirement plan, notify
your plan administrator that you want a direct rollover from the plan
to an IRA.
- If your company
issues your distribution to you as a check, the check should be payable
to the IRA institution ("Armada Funds as Custodian of IRA Plan for
[your name]"). It should include your Social Security number and specify
"Direct Rollover." You can then use that check to open your IRA account.
- If your company
can send the funds directly to Armada Funds, the process can be even
easier. Complete an application and open your IRA account first. Then
supply your plan administrator with the appropriate copy of the Armada
Funds form. The administrator should send your funds as specified
on the form.
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Can
I roll over only part of the money I receive from my employer-sponsored
retirement plan to an IRA?
Yes. You may roll
over all or any part of the eligible amount you receive from your employer-sponsored
retirement plan. However, if you roll over only a portion, the remainder
that's not rolled over will generally be taxed as ordinary income and,
if you're age 55 (or under age 59 1/2 and not retiring), may also be
subject to federal and state tax penalties. In addition, it will generally
be subject to mandatory federal income tax withholding at a 20% rate.
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Can
I use a Direct Rollover to move my IRA at another financial institution
to a new Armada Funds IRA?
No. You can't
use a Direct Rollover in this case. If you want a rollover but would
rather not take possession of your funds, you can simply request a custodian/trustee
transfer.
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When
I roll over my money into an IRA, is any tax reporting required?
When you roll
over eligible funds from another IRA or an employer plan, you must report
on your tax return (Form 1040 or 1040A) the dollar amount received and
also the taxable amount. For example, if you rolled over the entire
amount into an IRA within 60 days, then your taxable amount is zero.
If you rolled over only a part of the money you received, the remainder
you didn't roll over is taxed as ordinary income and may also be subject
to federal and state tax penalties for premature distributions, if you're
age 55 (or under age 59 1/2 and not retiring).
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What
investment options are available for my rollover from Armada Funds?
Armada Funds offer
a wide range of investment options. Working with an investment counselor,
you can create a well thought out plan of action that is both flexible
and manageable.
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How
do I find out more about a Direct Rollover of my employer sponsored plan
to Armada Funds?
For more complete
information, including information on charges and expenses, call Armada
Funds at 1-800-622-FUND (3863) for a free prospectus. Please read the prospectus
carefully before you invest. National City Bank serves as investment
advisor and custodian to The Armada Funds. Armada Funds are distributed
by SEI Investments Distribution Co., which is not affiliated with National
City Bank.
This brochure
is not intended as tax advice. You should consult with your tax advisor
regarding the tax consequences of any investment.
NOT FDIC INSURED.
May Lose Value.
No Bank Guarantee.
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I'm
a working man in my mid-thirties who has been investing in the Armada
International Growth Fund for about five years, with no immediate plans
to change my financial status or goals. Should I keep investing in this
fund in spite of uncertainties about the Asian Market?
By investing in
an international fund, you're already using an important investment
fundamental: diversification. You now have the option to exercise another:
discipline. Assuming you want to continue working toward your financial
goals until retirement, you'll probably want to hold on to your investments
through the inevitable ups and downs as part of a long-term plan. Some
investors have pulled back on their commitments in Asia because of weak
markets and currencies, and economic turmoil in some countries in that
region. But conditions vary significantly from one Asian country to
the next, and individual companies are affected differently by what's
going on there. Our international fund managers and advisors have been
monitoring and responding to changing conditions very carefully, adjusting
the proportion of Asian equities to those from other regions of the
world.
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What's
a "euro" and how will it affect investments in Europe?
Just as corporations
merge in order to gain greater strength in the marketplace, some countries
of Europe are aligning with each other in order to thrive in a changing
world. Trading among themselves has always been complicated by the need
to juggle ever-changing currency exchange rates, so one of the first
orders of business for a new Europe is the creation of a single, common
currency - the euro. On January 1, 1999, countries across the Continent,
from Finland to Portugal, will recognize the euro as legal tender, along
with their existing currency. The plan is for all national currencies,
including bills and coins, to be completely phased out by June 30, 2002.
This historic change will impact each country in a unique way, but overall
it is expected to streamline trade between participating nations, help
governments to balance budgets, reduce unemployment, reduce interest
rates, increase capitalization for business growth and ease tax burdens.
We believe that the move to a common currency will fuel economic growth
throughout Europe. In the short term, American investors will see a
reduction in exchange-rate hassles. In the longer term, Europe will
probably play an even greater role in energizing international investment
portfolios.
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Do
parents and/or grandparents have to pay capital gains taxes on their children's
mutual fund investments if their children have no source of income?
They might. According
to the Internal Revenue Service (IRS), part of a child's 1997 investment
income may be subject to capital gains tax at the parents' or guardians'
tax rate if the child meets several criteria:
The child was
under age 14 on January 1, 1998.
The child's
investment income was more than $1,300.
The child is
required to file a tax return for 1997.
Always check with
the IRS or your tax advisor if you have specific questions about capital
gains taxes or other tax issues.
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I'm
a 27-year-old woman who got married two years ago. Before I got married,
I made annual deductible contributions to my employer-sponsored IRA, but
last year I couldn't because my husband had an employer-sponsored pension
plan. If I file my taxes jointly, can I make a contribution now that the
Taxpayer Relief Act of 1997 has gone into effect?
Maybe, depending
on your combined income. One of the benefits of the Taxpayer Relief
Act of 1997 for married taxpayers, aside from the creation of Roth IRAs,
is the lifting of some restrictions on IRA contributions for married
couples who file jointly. Beginning in Tax Year 1997, each spouse can
contribute up to $2,000 to his or her IRA, even if one spouse participates
in an employer-sponsored retirement plan and as long as their combined
income is less than $160,000. So, the total combined contributions that
can be made to both IRAs can be up to $4,000 for the year, assuming
the Modified Adjusted Gross Income (MAGI) does not exceed $150,000 (as
the amount of the allowable deductible contribution phases out at between
$150,000 and $160,000). Previously, if one spouse participated in an
employer-sponsored retirement plan, the total combined contributions
to both IRAs could not be more than $2,250.
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Who
manages Armada Funds?
National City Investment
Management Company (IMC) manages Armada Funds. IMC has over $20 billion
in assets under management, and is dedicated to attaining client investment
objectives by providing a broad array of specialized investment products.
IMC is organized among highly specialized investment style teams. Each
team member shares an expertise in a particular sector or style of investment.
Participants from each of the specialized management teams convene on
a monthly basis to discuss strategy and to analyze and interpret data
concerning the economic outlook and the allocation of assets. On a weekly
basis, the same team members meet to discuss equity and fixed income market
recommendations. IMC's team of professionals reflect an average individual
investment experience level of over 13 years.
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How
do I know which Armada Fund is right for me?
A NatCity Financial
Consultant can help you determine which Armada Funds are right for you
given your investment objectives, time horizon, and risk tolerance. For
personal service please call 1-888-4NATCITY to be referred to a Financial
Consultant in your area.
If you prefer to discuss Armada Funds over the telephone, you may
call 1-800-622-FUND (3863) to speak to an Investor Services representative
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What
is the minimum initial investment to open an account in Armada Funds?
The minimum initial
investment for A and B shares is $500 and there are no minimums for subsequent
investments. The minimum initial investment to open an Individual Retirement
Account (IRA) is $500 and the minimum for subsequent IRA investments is
$250.
This minimum initial investment for either type of account is reduced
to $50 if you open an account with the Planned Investment Program (PIP).
Under the PIP, Investors may add to their investments in A and B shares
of a Fund, in a consistent manner each month or quarter. Monies may
be automatically withdrawn from a shareholder's checking or savings
account. For more information on this feature please call 1-800-622-FUND
(3863) and ask for a free prospectus.
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What
are A Shares and B Shares (Retail shares), and how do they differ?
Both A and B shares
are sold on a continuous basis by the Trust's sponsor and distributor
(SEI Investments Distribution Co.), and are also sold to the public
primarily through financial institutions such as banks, brokers and
dealers. Investors may purchase A or B shares directly or through a
financial institution. A shares of the Funds are sold subject to a front-end
sales charge. B shares of the Funds are sold subject to a back-end sales
charge. This back-end sales charge declines over time and is known as
a "contingent deferred sales charge". Before choosing between A and
B shares of the Funds, an investor should read the prospectus carefully
to determine which would be best based upon individual investing objectives,
time horizon and risk tolerance.
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What
are I Shares (Institutional Shares)?
I shares, or Institutional
shares, are sold primarily to banks and trust companies which are affiliated
with National City Corporation, National City Investment Management Corporation
customers that are large institutions, and registered investment advisers
and financial planners affiliated with National City Corporation who charge
an advisory, consulting or other fee for their services and buy shares
for their own accounts or the accounts of their clients.
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Can
I access information about Armada Funds over the telephone?
Armada Funds has an
Interactive Voice Response System that is available 24 hours a day, 7
days a week. By calling 1-800-622-FUND (3863) you may access current fund
prices, yields and total returns and dividend and capital gain information.
If you have an established account, you may also access your account information
using this automated service.
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Do
you offer check-writing privileges on Money Market Funds?
Yes, check-writing
privileges are offered on Money Market Funds, but only with A shares.
Currently, there is no charge for this service. Shareholders may write
a check in the amount of $100 or more. To obtain checks an investor must
complete the signature card that accompanies the account application.
To establish this check-writing service after opening a Money Market Fund
account, shareholders should call 1-800-622-FUND (3863) to request a signature
card.
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Do
you offer any investment products other than mutual funds?
In addition to the
Armada Funds, we also offer FutureQuest, an asset allocation program.
This personalized investment strategy is built around your goals, time
frame, and tolerance for market risk, and offers access to the world's
most talented money managers. Armada Funds also offers Armada Plus 401K
Plan, No-Fee Traditional and Roth IRA accounts and NatCity Investments
Cash Management Account. To learn more about these investment programs
which are designed to help you reach your financial goals, please call
1-888-4NATCITY to be referred to a Financial Consultant.
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I'm
interested in opening an IRA. Do you have any fees? Do you offer a Roth
IRA?
Armada Funds offer
no-fee IRAs- both Traditional and Roth. You can call 1-800-622-FUND
(3863) to request a free IRA kit and more information about Armada
Funds IRAs, or you may order the kit via this website.
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Who
do I call if I want to work with a Financial Consultant?
You may call the
NatCity Investments Resource Center toll-free at 1-888-4NATCITY. A representative
there can help you locate your financial consultant, or refer you to
someone in your area that would be able to assist you in meeting your
financial needs.
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