Entity Accounts


Cooperatives use entity accounts for many different purposes, from establishing scholarship funds to funding future equipment purchases. The term “entity account” can be applied to many different types of account registrations, but generally it means an account owned by the cooperative.

Our Role

Entity accounts are nonqualified accounts that can be used by a variety of different organizations: 

  • S Corporations 
  • C Corporations
  • Limited Liability Companies 
  • Partnerships 
  • Tax-Exempt Organizations 
  • Charitable Organizations 
  • Foundations 

Entity accounts are established by cooperatives to meet a variety of funding goals, and any account administration needs are the responsibility of the cooperative. Homestead Funds acts as the investment vehicle for entity accounts. Once the account is open, you receive the same level of customer service as our other shareholders, and you have the same mutual fund choices available for your account. 

Establishing an Entity Account

You will need to complete the  Entity Account Application  to open the account. 

You may need to include corporate governance documents such as Articles of Incorporation, Corporate Resolution or Partnership Agreement depending on the type of account you are opening. 

Federal regulations require us to ask for beneficial ownership information for each entity account. Beneficial owners are defined as:

  • Owner – each individual, if any, who owns, directly or indirectly, 25% or more of the equity interests of the legal entity customer
  • Control – an individual with significant responsibility for managing the legal entity (e.g., a Chief Executive Officer, Chief Financial Officer, Chief Operation Officer, Managing Member, General Partner, President, Vice President or Treasurer).

You must include all Owners (if any) that meet the 25% criteria, and you must list at least one Control. If one individual satisfies Control and Ownership criteria, you can identify that on the application.

  • You may link a cooperative-owned bank account to your Entity Account by completing that section of the application.
  • The Authorized Agents listed on the application will be authorized to make investment decisions and transactions.

Making Transactions

Entity accounts may be funded by indicating your investment method on the application. Money can be submitted to Homestead Funds by check, ACH transfer or wire transfer. Please call 800.258.3030 for wire instructions.  

Rebalancing and Moving Money

Account rebalances or fund exchanges can be made over the phone by an Authorized Agent of the Entity Account if that option was selected on the application or online if login credentials have been established. If you did not elect telephone privileges, your request must come in writing. You may update your telephone transaction options at any time by submitting the  Account Services Form.

Rebalancing can entail transaction costs and tax consequences that should be considered when determining a rebalancing strategy.

Distributions

Account distributions by check, ACH transfer or wire transfer can be made over the phone or online by an Authorized Agent of the Entity Account. Telephone/online distributions can only be made if that option was elected on the application. If you did not elect telephone/online privileges, your request must come in writing with a  Medallion Signature Guarantee. You may update your telephone transaction options at any time by submitting the  Account Services Form.

If your distribution request is more than $50,000 in any one fund, or if you instruct us to send proceeds to an address, party or bank account that we do not have on file, the Authorized Agent must submit the request in writing on the Account Distribution Request Form  and include a Medallion Signature Guarantee.

Account Maintenance

To update the Authorized Agents on your Entity Account, complete the  Entity or Trust Account Authorization Form. Make sure to list all of the Inquiry-Only Agents and Full Account Access Agents on the form because the Agents listed on the form will replace prior Agents on file. The form must be signed by a Full Account Access Authorized Agent already on file (or one being added). You must include the entity documentation or trust documents showing the updated account signers.

To update account basics such as address, telephone/internet options, dividend and capital gains options, and bank information, use the  Account Services Form. Some updates may be able to be done online as well.



See Account Types

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