5.5 Investment Transactions in IRA Plans

This topic provides information on investment transactions in IRA plans details.

An investor who subscribes to a retirement plan subscribes an initial amount, which may or may not be increased during the tenor of the plan. Contributing additional investments during the tenor of the plan can increase in the investment amount, provided additional investments are allowed for the product in which the plan is purchased. If the product involves a product type for which premiums are also applicable, the investment can also be increased by premiums.

Therefore, the following inflow investments could occur into an IRA plan:

• An initial investment
• Additional investment (if allowed for the product in which the plan is subscribed)
• Premiums (if premiums are allowed for the product in which the plan is subscribed)

Earnings from the investment could be availed through partial or complete withdrawals, or through annuities, provided withdrawals and annuities are applicable for the product in which the plan is subscribed.

You can enter and process each of these transactions in the system.

Each of the transactions, when requested, could be directed into any of the funds opted for by the investor, in the product under which the plan was purchased. All the transaction processing guidelines specified for the product (and the plan) will be applied to the transaction. Also, the limits maintained for the fund in which the transaction is requested, will also be validated.

For further information refer to the Life and Endowment Product User Manual.