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These Terms of Use ("Terms of Use") are made between the undersigned user ("you") and Lord, Abbett & Co. ("we" or "us"). They become effective on the date that you electronically execute these Terms of Use ("Effective Date").

A. You are a successful financial consultant that markets securities, including the Lord Abbett Family of Funds;

B. We have developed the Lord Abbett Intelligence System (the "Intelligence System"), a state of the art information resource that we make available to a limited community of broker/dealers through the Internet at a secure Web site (the "LAIS Site"); and

C. We wish to provide access to the Intelligence System to you as an information tool responsive to the demands of your successful business pursuant to these Terms of Use. Accordingly, you and we, intending to be legally bound, hereby agree as follows:]

1. Overview. · Scope. These Terms of Use (which we may amend from time to time) govern your use of the Intelligence System. · Revisions; Changes. We may amend these Terms of Use at any time by posting amended Terms of Use ("Amended Terms of Use") on the LAIS Site. Any Amended Terms of Use will become effective immediately upon posting. Your use of the Intelligence System after any Amended Terms of Use become effective will be deemed to constitute your acceptance of those Amended Terms of Use.We may modify or discontinue the Intelligence System at any time, temporarily or permanently, with or without notice to you. Purpose of the Intelligence System. The Intelligence System is intended to be an information resource that you may use to contribute to your business research. The Intelligence System is for broker/dealer use only; it is not to be used with the public in oral, written or electronic form. The information on the Intelligence System and LAIS Site is for your information only and is neither the tax, legal or investment advice of Lord Abbett or its third-party sources nor their recommendation to purchase or sell any security.

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4. Your Conduct in the Use of the Intelligence System. You may access, search, view and store a personal copy of the information contained on the LAIS Site for your use as a broker/dealer. Any other use by you of the Intelligence System and the information contained on the LAIS Site these Terms of Use is strictly prohibited. Without limiting the preceding sentence, you will not: · Engage in or permit any reproduction, copying, translation, modification, adaptation, creation of derivative works from, distribution, transmission, transfer, republication, compilation or decompilation, reverse engineering, display, removal or deletion of the Intelligence System, any portion thereof, or any data, content or information provided by us or any of our third-party sources in any form, media or technology now existing or hereafter developed, that is not specifically authorized under these Terms of Use.

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THIS SECTION 6 SHALL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM..

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NONE OF THE MEMBERS OF THE LORD ABBETT GROUP WILL BE LIABLE TO YOU OR ANY OTHER PERSON FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES (INCLUDING LOSS OF PROFITS, LOSS OF USE, TRANSACTION LOSSES, OPPORTUNITY COSTS, LOSS OF DATA, OR INTERRUPTION OF BUSINESS) RESULTING FROM, ARISING OUT OF OR IN ANY WAY RELATING TO THE INTELLIGENCE SYSTEM, THE LAIS SITE OR YOUR USE THEREOF, EVEN IF THE LORD ABBETT GROUP HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS SECTION 7 WILL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM.

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· Governing Law. This Agreement will governed by and construed in accordance with the laws of the State of New York, without giving effect to applicable conflicts of law principles.

THE UNIFORM COMPUTER INFORMATION TRANSACTIONS ACT OR ANY VERSION THEREOF, ADOPTED BY ANY STATE, IN ANY FORM ("UCITA") WILL NOT APPLY TO THESE TERMS OF USE. TO THE EXTENT THAT UCITA IS APPLICABLE, THE PARTIES HEREBY AGREE TO OPT OUT OF THE APPLICABILITY OF UCITA PURSUANT TO THE OPT-OUT PROVISION(S) CONTAINED THEREIN.

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YOU HEREBY CONSENT TO THE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, LOCATED IN OR HAVING JURISDICTION OVER NEW YORK COUNTY, NEW YORK. YOU AGREE THAT YOU WILL NOT OBJECT TO A PROCEEDING BROUGHT IN YOUR LOCAL JURISDICTION TO ENFORCE AN ORDER OR JUDGMENT OBTAINED IN NEW YORK.

· Relationship of Parties. The parties to these Terms of Use are independent contractors and nothing in these Terms of Use will be construed as creating an employment relationship, joint venture, partnership, agency or fiduciary relationship between the parties.

· Notice. All notices provided under these Terms of Use will be in writing and will be deemed effective: (a) when delivered personally, (b) when received by electronic delivery, (c) one business day after deposit with a commercial overnight carrier specifying next day delivery, with written verification of receipt, or (d) three business days after having been sent by registered or certified mail, return receipt requested. We will only accept notices from you in English and by conventional mail addressed to: General Counsel Lord, Abbett & Co. 90 Hudson Street Jersey City, N.J. 07302-3973 We may give you notice by conventional mail or electronic mail addressed to the last mail or electronic mail address transmitted by you to us.

· Third-Party Beneficiaries. The members of the Lord Abbett Group are third-party beneficiaries of the rights and benefits provided to us under these Terms of Use. You understand and agree that any right or benefit available to us or any member of the Lord Abbett Group hereunder will also be deemed to accrue to the benefit of, and may be exercised directly by, any member of the Lord Abbett Group to the extent applicable.

· Survival. This Section 8 will survive any termination of these Terms of Use or your use of the Intelligence System. The undersigned hereby signs these Terms of Use. By electronically signing and clicking "Accept" below, these Terms of Use will be legally binding on me. To sign these Terms of Use, confirm your full name and enter your User ID and Password (as your electronic signature) in the fields indicated below and click the “I Accept” button.

 

Retirement Products

Traditional IRA

Traditional IRAs allow any individual who is under age 70 ½ and has earned income to save for retirement on a tax-deferred and possibly a tax-deductible basis. 

This material is intended as general information only and is not intended as legal or tax advice. Some of this information may be quite complex and we strongly suggest you consult with your advisor or tax professional based on your individual situation.

What is a Traditional IRA?

A traditional IRA is tax-deferred retirement account available to those individuals under age 70 ½ and have earned income.  

How does a Traditional IRA work?

In 2015, an individual may contribute up to $5,500 to a traditional IRA, plus a catch-up contribution of $1,000 for those individuals age 50 and older.  Contributions may be made at any time throughout the year and as late as the individual’s tax-filing deadline (generally April 15) for the prior year.

Traditional IRA contributions may be partially, fully, or non-tax-deductible, depending on a number of factors, including household income, marital and tax-filing status, and active participation in a workplace retirement plan (e.g. 401(k)). Investment gains are not subject to taxation until funds are withdrawn.  Traditional IRA withdrawals are taxed as ordinary income in the year received.  For additional information, see traditional IRA distributions tab above.

Who should consider a traditional IRA?

  •  An individual who does have access to a workplace retirement plan
  •  An individual who wants to supplement his/her workplace retirement plan.  An individual also can contribute to his/her workplace retirement plan (e.g. 401(k), 403(b), etc.) and an IRA
  • An individual seeking tax-deferred growth
  • A non-working spouse

What benefits does a traditional IRA offer?

  • Contributions may be tax deductible, reducing income.
  • Earnings are tax-deferred until withdrawn.  Minimum withdrawals are not required until the account owner reaches age 70½.
  • Flexible withdrawal options 
  • Bankruptcy protection
  • Assets can be converted to a Roth IRA regardless of income.

This material is intended as general information only and is not intended as legal or tax advice. Some of this information may be quite complex and we strongly suggest you consult with your advisor or tax professional based on your individual situation.Who is eligible to open a Traditional IRA? 

An individual is eligible to make contributions to a traditional IRA if the following criteria are satisfied:

  • Under age 70½
  • Have earned income
  • “Spousal IRA” -A working spouse can establish and contribute to a nonworking spouses IRA.  To qualify, the couple also must file a joint tax return. Spousal IRAs can be traditional or Roth IRAs. 

Regardless of income or participation in a workplace retirement plan anyone can fund an IRA.

Participating in your employer’s workplace retirement plan (e.g. 401(k), 403(b)) does not preclude an individual from contributing to an IRA.  Although workplace plan participation may affect an individual’s ability to make a tax deductible traditional IRA contribution

Traditional IRA Contribution Deductibility

An individual (or, if married, his/her spouse both) not covered by a workplace retirement plan, regardless of income, is eligible to make a fully deductible traditional IRA contribution in 2015 up to $5,500, plus a catch-up contribution of $1,000 for those individuals age 50 and older. 

Single:

Once workplace retirement plan participation extends to an individiual or his/her spouse, the deductibility rules change.  A single individual covered by a workplace retirement plan can fully deduct his/her traditional IRA contribution if there income is less than $60,000 in 2014 ($61,000 in 2015).  A partial deduction is available in 2014 if your income is above $60,000 but not more than $70,000 ($61,000-$71,000 in 2015).

Married (filing jointly): One spouse covered by a workplace retirement plan

A 2014 traditional IRA deductible contribution for a married couple filing jointly, where only one spouse is covered by a workplace retirement plan, the spouse not covered may deduct his/her full contribution if the couple's joint income is less than $181,000. Once joint income exceeds $181,000, but does not exceed $191,000, a partial deduction is allowed.  Once joint income exceeds $191,000, no deduction is allowed.  The income limits have been increased in 2015 to $183,000-$193,000.

Married (filing jointly): Both spouses covered by a workplace retirement plan

A 2014 traditional IRA contribution for a married couple filing jointly, where both spouses are covered by workplace retirement plan, may make a fully deductible traditional IRA contribution if joint income is less than $96,000.  A partial deduction is available if joint income is more than $96,000, but does not exceed $116,000; a deduction is not permitted if joint income exceeds $116,000.  The income limits have been increased in 2015, to $98,000-$118,000

Traditional IRA contribution deduction limits are summarized in this table:

If filing status is... And modified Adjusted Gross (AGI) 5 Income is... Then the individual may take...
Single or head of household $60,000 or less ($61,000 in 2015) A full deduction
More than $60,000, but less than $70,000 ($61,000-$71,000 in 2015) A partial deduction
 
$70,000 or more ($71,000 in 2015) No deduction
Married filing jointly or qualifying widow(er) and both covered by a plan $96,000 or less ($98,000 in 2015) A full deduction
More than $96,000, but less than $116,000 ($98,000-$118,000 in 2015) A partial deduction
$116,000 or more ($118,000 in 2015) No deduction
Married filing jointly and one covered by a plan Less than $181,000 ($183,000 in 2015) A full deduction for spouse not covered
More than $181,000, but less than $191,000 ($183,000-$193,000 in 2015) Partial deduction for spouse not covered
More than $191,000 ($193,000 in 2015) No deduction

This material is intended as general information only and is not intended as legal or tax advice. Some of this information may be quite complex and we strongly suggest you consult with your advisor or tax professional based on your individual situation.Who is eligible to open a Traditional IRA? 

How much can an individual contribute to a Traditional IRA?

In 2015, an individual may contribute up to $5,500 in a traditional IRA, plus a catch-up contribution of $1,000 for those individuals age 50 and older.

Year

Contribution Limit

Age 50 Catch-up Contribution

2014

$5,500

$1,000

2015

$5,500

$1,000

 

Can an individual contribute to both a Traditional and a Roth IRA?

Yes, assuming the individual meets Roth IRA eligibility requirements. However, an individual does have one combined contribution limit of $5,500 ($6,500 if age 50 or older).

When can I contribute to a Traditional IRA?

An individual can make traditional IRA contributions anytime throughout the year.  In addition, contributions for the prior year can be made as late as the individualr’s tax-filing due date (generally April 15) not including extensions. For example, an investor is eligible to make a 2014 IRA contribution as late as April 15, 2015.

What if the Traditional IRA contribution limit is exceeded?

An individual needs to remove the excess funds by his/her tax-filing deadline (April 15), plus extension, or face a 6% excise tax on the excess.

Why would an individual fund a Traditional IRA if the contribution is not tax deductible?

All Traditional IRA contributions earnings are tax-deferred until withdrawn. It may be to an individual’s advantage, then, to accumulate tax-advantaged funds, allowing the full amount invested plus earnings to compound tax deferred until withdrawn. Further, many individuals cannot fund a Roth IRA to due to eligibility restrictions. Therefore, there is an IRA savings option is to make nondeductible traditional IRA contributions.  Accumulating nondeductible funds positions the individual to convert his/her traditional IRA to a Roth IRA. (For more information, view our blog on this topic.)

This material is intended as general information only and is not intended as legal or tax advice. Some of this information may be quite complex and we strongly suggest you consult with your advisor or tax professional based on your individual situation.Who is eligible to open a Traditional IRA? 

What types of distribution can be taken from a Traditional IRA?

There are a number of different kinds of distributions that can be taken from a Traditional IRA.  We discuss each distribution type below:

  • Normal

  • Premature (without an exception)

  • Premature (with an exception)

  • Required Minimum Distribution (RMD)

  • Distributions due to death 

  • The 60-day rollover

What is a normal distribution from a Traditional IRA? 

A normal distribution from a traditional IRA occurs after the account owner attains age 59½. A normal distribution is generally subject to taxation in the year withdrawn (unless the withdrawal includes after-tax dollars); however the 10% early withdrawal penalty tax does not apply. 

All distributions are taxable, unless aftertax contributions were made, but there is no 10% penalty tax. If aftertax contributions were made to any IRA you owned, a pro-rata formula would apply to each distribution, allocating tax-free return of contributions and taxable gains and/or contributions regardless of whether the distribution comes from any one IRA or several.

What is a premature traditional IRA distribution (without an exception)?

A premature distribution (with an exception) from a Traditional IRA occurs upon the account owner withdrawing funds before age 59½ and having the distribution satisfy one of the statutory exceptions.  A premature distribution (with an exception) is subject to taxation but the 10%) early withdrawal penalty tax does not apply.

What is a premature distribution (with an exception)?

A premature distribution (with an exception) from a Traditional IRA occurs upon the account owner withdrawing funds before age 59½ and having the distribution satisfy one of the statutory exceptions. A premature distribution (with an exception) is subject to taxation, but the 10%) early withdrawal penalty tax does not apply.

A premature distribution (with an exception) occurs upon the Traditional IRA account owner satisfying any of the following situations:

  • Substantially equal periodic payments (“72(t)”) link:
  • Disability
  • Beneficiary (of a deceased SIMPLE-IRA owner)
  • Qualified higher education expenses–pay for tuition, fees, books, etc., for an individual or certain family members
  • Pay for health insurance premiums after individual has received unemployment for more than 12 weeks
  • Unreimbursed medical expenses (greater than 10% of adjusted gross income).  Individuals 65 and older can use the lower 7.5% threshold through 2016.
  • First-time home purchase (subject to a lifetime limit of $10,000, incudes buying or building a first home.
  • IRS levy 
What is a required minimum distribution (RMD) from a traditional IRA? 

A Traditional IRA account owner is required to take a minimum distribution the year he/she turns age 70½. The minimum distribution rules permit the initial or first minimum distribution to be deferred until April 1st of the following year.  Delaying an RMD require the account owner to take two RMDs the following year.

Example:  Jim turns 70½ in 2014. He either can take his RMD in 2014 or delay it until April 1, 2015. Assuming Jim elects to delay his 2014 RMD, he is required to take two RMDs in 2015: his 2014 deferred RMD and the 2015 RMD.  All subsequent RMDs must be taken by December 31.

If the full RMD is not taken in a given year, a 50% excess tax is assessed on the amount not taken. (See our calculator to determine your annual RMD amount.)

Tip: An individual 70½ or older is eligible to participate, assuming Traditional-IRA eligibility requirements have been satisfied.  However, the individual also must take minimum distributions. 

What are death benefits from a traditional IRA?

When a Traditional IRA account owner dies, an inherited or beneficial IRA is created.  However, the treatment of an inherited IRA differs, depending on who inherits the account.  Traditional IRAs inherited by a surviving spouse differ from a non-spouse beneficiary.

Spousal beneficiary:

A spousal beneficiary has the following options available upon inheriting a Traditional IRA:

  • Treat the account as his/her own
  • Rollover the IRA into his/her own IRA
  • Transfer the IRA to an employer sponsored plan in which he/she is a participant
  • Withdraw funds as needed.  Withdrawals would be taxable, but the 10% early withdrawal penalty tax would not apply.

Non-Spouse Beneficiary:

Inheriting a Traditional IRA from someone other than a spouse provides more limited options. Non-spouse beneficiary has the following options available upon inheriting a Traditional IRA:

  • Liquidate the entire account
  • Make withdrawals equaling the entire account value by the end of the fifth calendar following the account owners death
  • “Stretch” the withdrawals over the beneficiary's life expectancy

Tip: A non-spouse beneficiary is not permitted to roll over an inherited Traditional-IRA. 

What is a Stretch IRA? 

A Stretch IRA is a distribution strategy available to an IRA beneficiary. The beneficiary “stretches” withdrawals over the beneficiary’s life expectancy. We offer a calculator to assist in providing you minimum payout amounts.

What is the 60-day withdrawal and rollover rule?

Once in a 12-month period (not calendar year), an IRA account owner may withdraw any amount, for any reason, from any of his/her IRAs and repay the IRA within 60-days without being subject to taxation or an early withdrawal penalty. If not repaid within the allotted 60-day time frame, the account owner will be subject to potential taxation and penalties.

Recent IRS guidance made it clear that one IRA rollover per year now applies on a per-taxpayer basis, not per IRA. An individual can elect a single 60-day withdrawal and rollover in a 365-period, regardless of the number of IRAs he/she owns. 

Risks Involving the Stretch IRA Strategy:
Withdrawals by the account holder or beneficiaries in excess of the required minimum distribution (RMD) will exhaust the account at a faster pace, reducing or eliminating the effectiveness of the stretch strategy. Distributions greater than the RMD could subject the payment to higher federal and possibly state income taxes. When investing assets, which will be used to stretch IRA payments, the investor must be cognizant of any front-end or back-end sales charges that can reduce the assets available. During an extended period of declining investment returns, investors will experience income fluctuations that may cause additional withdrawals to be made that will exhaust the account at a more rapid rate. There can be no guarantee that a Stretch IRA strategy will be advantageous to your specific situation, and many of its benefits are based on current tax laws, which are subject to change. If these laws change in the future, an investors ability to maintain estimated distributions may be affected. Lengthy distribution periods, much like those involved in a Stretch IRA, expose an investor to significant market risk.

1 A Simplified Employee Pension Plan, commonly known as a SEP-IRA, is a retirement plan specifically designed for self-employed people and small business owners. When establishing a SEP-IRA plan for your business, you and any eligible employees establish your own separate SEP-IRA; employer contributions are then made into each eligible employees SEP-IRA.

2 A SIMPLE IRA plan is an IRA-based plan that gives small business employers a simplified method to make contributions toward their employees retirement and their own retirement. Under a SIMPLE IRA plan, employees may choose to make salary reduction contributions and the employer makes matching or non-elective contributions. All contributions are made directly to an Individual Retirement Account (IRA) set up for each employee (a SIMPLE IRA). SIMPLE IRA plans are maintained on a calendar-year basis.

IRA-Rollover-Video-Banner_RightRail

OPEN AN IRA

  1. Complete the writable IRA Application

  2. Print and send to Lord Abbett by mail, fax, email or use our Free FedEx shipping option

  3. You’ll receive a confirmation once your IRA is established

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