855.873.5873

info@thesolomonfoundation.org

General Investments FAQ

Custodial Investments FAQ

What is The Solomon Foundation?

The Solomon Foundation is a Church Extension Fund and a registered 501 (c)3 non-profit. We sell investments to the people who attend Christian Churches and Churches of Christ, which are part of the Restoration Movement, and offer loans to these same churches to help them grow their ministry and their building.

What is the Restoration Movement?

The restoration movement is an affiliation of churches seeking to break down the walls of denominationalism and sim­ply be known as Christians only. Beginning in the late 1700’s, this movement patterns itself after the early church found in the New Testament book of Acts. Restoration movement churches, often known as Christian Churches and Churches of Christ, follow the Bible as their only rule offaith and practice, and have no creed but Christ. Churches in the restoration movement are autonomous, in that each congregation is locally led. They baptize by immersion and participate in communion on a weekly basis.
Today, more than two million people are part of these congregations as they continue advancing the cause of Christ.

How do I open a new investment?

To create a new investment, you will need to complete our Purchase Application, which is available on our website and may be completed electronically or printed and completed by hand. If you are opening the investment on behalf of an organization, you will also need to complete a Corporate Resolution. To fund your new investment, you will have a chance to provide your bank account information during our online application process. You may also complete an EFT/Bank Account Authorization Form or send a check made out to The Solomon Foundation. We accept new applications via our website, email, fax, UPS, Fed-Ex or the postal service.

What is a Custodial Investment?

A custodial investment allows you to invest for the future of a child in your life. The investment is opened under the name and Social Security Number of the minor until they reach the age 21, per the Colorado Uniform Transfers to Minors Act (UTMA). The minor is the legal owner of the funds in the investment, but at least one person over the age of 21 must be listed as a custodian on the investment.

Do you offer 529 College Savings Plans or Coverdell ESA's?

We offer Custodial Investments in lieu of these plans.

How do I fill out the Purchase Application for a Custodial Investment?

You may complete the Purchase Application electronically on our website and indicate “Youth” as the Ownership Type. You may also complete a physical Purchase Application, which is available on our website. If you are completing a physical form, then the adult’s information would be filled out in Section 1 and the minor child’s information would be placed under the “Custodial” area in Section 2.

How do I fill out the Purchase Application to open an investment under my trust?

You may complete the Purchase Application electronically on our website and indicate ‘Trust” as the Ownership Type. You may also complete a physical Purchase Application, which is available on our website. If you are completing a physical form, then the trust information would be placed under the “Trust Agreement” area in Section 2. We also need a copy of the entire trust.

How do I receive online access to my investment?

After your investment is opened, you may call our office during business hours to request online access and we will be happy to help you set this up over the phone. This will allow you to view your investment 24 hours a day, 7 days a week.

Will I receive checks or a debit card for my investment?

Because we are not a bank and our products are not bank accounts, this is not a service that we are able to offer.

How do I add to my current investment?

You may add to your existing investment electronically via your online login. We also off our Investment Addition Form on our website and this form may be submitted via email, fax, UPS, Fed-Ex or the postal service. You may also send a check, referencing your investment number, if you prefer.

Will I receive a confirmation for my deposits?

You will receive an Investment Confirmation in the mail for your initial investment amount when the investment is opened. Thereafter, if you have online access, you will be able to see all investment activity online. All activity is also shown on our quarterly statements; these are available online or via the postal service.

Can I make recurring deposits to my investment?

Yes! If you are setting up a new investment, you may request to add to your investment monthly, weekly, or bi-weekly on the Purchase Application. If you would like to set this up on an existing investment, you can set this up via your online login. You may also make this request via our Investment Addition Form. This form may be submitted via email, fax, UPS, Fed-Ex or the postal service.

Can I set up direct deposit into my investment from my employer?

No. Because this is an investment, not a bank account, your investment does not have a routing number to have funds sent directly into it from your employer. However, we can set up a recurring addition from your bank account to your TSF investment on your pay date, so your funds are being automatically invested.

Can I add funds to someone else's investment? Can someone else add to my investment?

Yes, but we would need written permission from the investment owner, giving permission for you to do so. We also require written acknowledgment from the person adding funds, stating that they understand that once the funds are placed in the investment, they will have no rights or claims to those funds.

I have a check that was written to me. Can I sign it over and send it to add to my investment?

No, unfortunately we are unable to accept any third-party checks. You will need to cash the check and either write a
check made out to TSF, or you can request to have us pull the funds from your checking account electronically.

How do I withdraw funds from an investment?

You may request to take funds out of your existing investment via your online login or by using our Investment Distribution Form. This form may be submitted via email, fax, UPS, Fed-Ex or the postal service.

I would like my interest paid out to me. What do I need to do?

If you are setting up a new investment of $5,000 or more, you may request to have your interest paid to your bank account on a monthly or quarterly basis on our Purchase Application. If this option is chosen, interest will be paid out by the 5th day of the new month following the end of the month/quarter in which the interest was earned. (i.e., for someone set up to receive interest quarterly, the interest earned from January- March will be paid out by April 5th.) If you would like to set this up on an existing investment, you can make this request via your online login, or by completing the Investment Distribution Form. That may be submitted via email, fax, UPS, Fed-Ex or the postal service. Interest distributions are not subject to penalty.

What are the penalties for early withdrawal?

Penalties are calculated based on the following percentage of the principle distributed:

Initial Term of Certificate:

Up to 24 months – Penalty 1 % of the amount redeemed

Over 24 months, up to 36 months – Penalty 2% of the amount redeemed

Over 36 months – Penalty 3% of the amount redeemed

What is The Solomon Foundation?

The Solomon Foundation is a Church Extension Fund and a registered 501 (c)3 non-profit. We sell investments to the people who attend Christian Churches and Churches of Christ, which are part of the Restoration Movement, and offer loans to these same churches to help them grow their ministry and their building.

What is the Restoration Movement?

The restoration movement is an affiliation of churches seeking to break down the walls of denominationalism and sim­ply be known as Christians only. Beginning in the late 1700’s, this movement patterns itself after the early church found in the New Testament book of Acts. Restoration movement churches, often known as Christian Churches and Churches of Christ, follow the Bible as their only rule offaith and practice, and have no creed but Christ. Churches in the restoration movement are autonomous, in that each congregation is locally led. They baptize by immersion and participate in communion on a weekly basis.
Today, more than two million people are part of these congregations as they continue advancing the cause of Christ.

What is a Custodial Investment?

A Custodial Investment is an investment that is owned by a minor child, with an adult (typically a grandparent, parent or
guardian) as the custodian of the investment. Our Custodial Investments are issued under the Colorado Uniform
Transfers to Minors Act (UTMA). The UTMA allows for real or personal property to be transferred to a custodian for the
benefit of a minor. The investment belongs to the minor but is managed by the custodian, until the minor reaches the
age of termination, which is 21 pursuant to the Colorado UTMA.

When would the Minor have access to the funds?

Per the Colorado UTMA, the custodian will be required to transfer ownership of the investment to the minor when
he/she reaches the age of 21.

What if the Minor needs the funds before they turn 21?

Under the Colorado UTMA, the custodian may request funds out of the investment to deliver or pay to the minor.

How do I fill out the Purchase Application for a Custodial Investment?

You may complete the Purchase Application electronically on our website and indicate “Youth” as the Ownership Type. You may also complete a physical Purchase Application, which is available on our website. If you are completing a physical form, then the adult’s information would be filled out in Section 1 and the minor child’s information would be placed under the “Custodial” area in Section 2.

I have another child for which I would like to have Custodial Investment. Can I take funds out of one Custodial Investment and put them in another Custodial Investment for a different child?

No. The Colorado UTMA requires that a transfer be made for one minor with one custodian.

How can I control what the Minor uses the funds for?

Until the minor reaches the age of 21, the minor cannot directly access the investment funds. The custodian will be the
individual making all investment transactions. However, once the minor turns 21, the custodian is required to tum the
investment over to the sole ownership of the minor.

What happens if the custodian passes away? Who will manage the investment if the Minor is not yet 21?

The Solomon Foundation offers a place on our Purchase Application to indicate a Successor Custodian. This would
be the person the original custodian would want to manage the funds in the event of his or her passing. The
Successor Custodian would have no access to the investment prior to that time.

I have not named a Successor Custodian, or I did, but now I need to change it. Can I do that?

Yes! You may designate a new Successor Custodian or change or revoke an existing Successor Custodian at any time. Please contact The Solomon Foundation for assistance with this.

I placed an investment in the name of a minor. Can I take this back?

No. Once investment funds are placed under the name of the minor, that action is irrevocable, meaning the custodian or
anyone else cannot reclaim the funds for their own use.

What happens if the Minor passes away before reaching the age of 21?

Under the Colorado UTMA, the investment would pass to the minor’s heirs according to his or her estate plan or would
go through the probate process, which would differ depending on where the minor lived when he or she passed.
Please consult your estate planning professionals for advice regarding estate planning matters.

Do I have to pay taxes on the Custodial Investment?

Because the funds placed in the Custodial Investment are already taxed, those funds will not be taxed when they
are taken out of the investment. However, the interest earned on the investment could be taxable, depending on the
minor’s income. Please consult your tax advisor.