Ivy Funds Remediation

CLOSE OF DISTRIBUTION UPDATE (January 30, 2024)

FINAL UPDATE: The distribution phase is now completed. The distribution administrator can no longer issue or make payments from the Ivy Funds Remediation distribution.

Please NOTE: The distribution call center is now closed. If you have additional questions please contact Macquarie using the phone number located on your account statement.

DISTRIBUTION UPDATE (November 27, 2023)

ATTENTION: The Ivy Funds Remediation distribution is closing soon. If you need to have your check reissued, please contact the Administrator on or before December 19, 2023 at 866-511-6017, Monday through Friday, between 9:00 AM and 6:00PM ET. Please cash your original or reissued check before January 22, 2024 otherwise you will forfeit this payment.

NOTE: Please DO NOT try to negotiate your original or reissued check(s) after January 22, 2024 as the payment will no longer be valid and your banking institution may charge you a fee for presenting a stale dated check. Neither Waddell & Reed Services Company nor the Administrator will be responsible for fees that your bank may charge for presenting a check(s) after January 22, 2024.

What are the tax ramifications of this distribution?

Waddell & Reed Services Company retained Miller Kaplan Arase, LLP (MKA) to provide tax advice relating to the Ivy Funds Remediation, including regarding its information return reporting and withholding obligations. In addition, MKA prepared the “Statement to Shareholder Recipients,” or Statement.

The Statement is not, and is not intended to be, tax advice to the affected investors. The Statement does describe the tax reporting positions taken by the Ivy Funds Remediation and points out some issues affected investors may wish to consider, along with their tax advisors.

Statement to Shareholder Recipients.pdf

CAUTION: YOU SHOULD NOT RELY ON THIS STATEMENT AS TAX ADVICE RELATED TO YOUR PERSONAL CIRCUMSTANCES. CONSULT WITH YOUR TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF THE DISTRIBUTION PAYMENT, INCLUDING THE EFFECTS OF U.S. FEDERAL, STATE, LOCAL AND NON-U.S. TAX RULES AND THE EFFECT OF POSSIBLE CHANGES IN LAWS.

Will I receive a Form 1099 to use when filing my taxes?

You will receive a Form 1099-INT for the distribution if you cash the check, are a U.S. person and the interest portion of your distribution is $600 or more and the payment is being made to you as opposed to a retirement account or plan.
You will receive a Form 1042-S if you cash the check and:

You are a Non-Resident Alien;
We do not have a W-8 and W-9 to prove your tax status; or
You are subject to FATCA reporting.

The Ivy Funds Remediation is not a Qualified Settlement Fund (QSF) under the Internal Revenue Code.

The 1099-INT or 1042-S will be produced and mailed under separate cover by Miller Kaplan Arase, LLP (MKA); and
Reported to the IRS for the tax year in which the payment is made.

You may also receive a Form 1099-R if you ask to have a check payable to an IRA or a retirement plan re-issued to you personally depending on a number of facts.

NOTE: You may wish to consult with your tax advisor with respect to the tax consequences of the distribution payment, including the effects of U.S. Federal, State, Local, and Non-U.S. tax rules and the effect of possible changes in laws.

Additional information on the possible tax treatment of this distribution is available on the IRS website: www.irs.gov

For additional questions related to your payment, re-issuing payments to or from IRA accounts, or if you are the beneficiary of a payment made to a deceased shareholder, please Contact Us for further information.

Reissue Forms

Reissue IRA to Individual Distribution Form: REISSUE IRA TO INDIVIDUAL DISTRIBUTION FORM.pdf
For use by individuals who received a check written to their IRA and no longer maintain an IRA.

Reissue IRA to Beneficiary Distribution Form: REISSUE IRA TO BENEFICIARY DISTRIBUTION FORM.pdf
For use by beneficiaries or guardians who received a check written to an individual’s IRA and it should be reissued to the beneficiary or guardian.

Reissue Non-IRA Distribution Form: REISSUE NON-IRA TO INDIVIDUAL DISTRIBUTION FORM.pdf
For use by individuals who received a check as part of a Retirement Plan or a Defined Benefit Plan and the Plan or employer no longer exists.

Reissue Beneficiary Non-IRA Distribution Form: REISSUE NON-IRA TO BENEFICIARY DISTRIBUTION FORM.pdf
For use by beneficiaries or guardians who received a check written to an individual as part of a Retirement or a Defined Benefit Plan and it should be reissued to the beneficiary or guardian.

Abandoned Plan Affidavit Form: Abandoned Plan Affidavit Form.pdf
For use by individuals who received a check as part of a Retirement Plan or a Defined Benefit Plan and the Plan or employer no longer exists.

Substitute Form W-9: Substitute Form W-9.pdf
For use by beneficiaries who received a check written to an individual that was not an IRA, Retirement or Defined Benefit Plan and it should be reissued to the beneficiary.

Final Form 5500
If your plan is no longer active or has been abandoned, you may find the final form 5500 for your former Tax-Qualified Retirement Plan on www.freeerisa.com.

NOTE: You should consult with your tax advisor to determine any federal, state, local, non-US or other tax issues you may need to address regarding the distribution.