ADDITIONAL TAXES AND PENALTIES. If you are under age 59½ and receive a nonqualified premature distribution from your Xxxx XXX, an additional 10% income tax will apply on the taxable amount of the distribution (generally the earnings portion only), unless an exception under Section 72(t) applies. A 10% additional tax will be assessed if you are under age 59½ if you are deemed to withdraw any portion of a conversion that you made to your Xxxx XXX before five years have lapsed from the conversion year, even if such distribution is otherwise nontaxable. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess which remains in your account. If you should die, and the appropriate required death distributions are not made from your Xxxx XXX, an excise tax of 50% is assessed to your beneficiary based upon the difference between the amount that should have been distributed and the amount that was actually distributed. You may be required to file IRS Form 5329 with the Internal Revenue Service for any year an additional tax is due.
ADDITIONAL TAXES AND PENALTIES. If you are under age 59 1/2 and receive a nonqualified premature distribution from your Xxxx XXX, an additional 10% income tax will apply on the taxable amount of the distribution (generally the earnings portion only), unless an exception under Section 72(t) applies. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess which remains in your account. If you should die, and the appropriate required death distributions are not made from your Xxxx XXX, an excise tax of 50% is assessed to your beneficiary based upon the difference between the amount that should have been distributed and the amount that was actually distributed. You must file Form 5329 with the Internal Revenue Service for any year an additional tax is due.
ADDITIONAL TAXES AND PENALTIES. If you are under age 59 1/2 and receive a nonqualified premature distribution from your Xxxx XXX, an additional 10% income tax will apply on the taxable amount of the distribution (generally the earnings portion only), unless an exception under Section 72(t) applies.
ADDITIONAL TAXES AND PENALTIES. If you are under age 59½ and receive a premature distribution from your IRA, an additional 10% income tax will apply on the taxable amount of the distribution unless an exception applies. If you make an excess contribution to your IRA and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess which remains in your account. If you are age 70½ or over or if you should die, and the appropriate required minimum distributions are not made from your IRA, an additional tax of 50% is imposed upon the difference between what should have been distributed and what was actually distributed. You may be required to file IRS Form 5329 with the Internal Revenue Service for any year an additional tax is due. You may be required to file IRS Form 8606 for any year you make a nondeductible IRA contribution, rollover after-tax employee contributions from your employer’s plan, repay a Qualified Reservist Distribution, convert from your traditional IRA to a Xxxx XXX or recharacterize a contribution to your traditional IRA.
ADDITIONAL TAXES AND PENALTIES. If you are under age 591/2 and receive a nonqualified premature distribution from your Xxxx XXX, an additional 10% income tax will apply on the taxable amount of the distribution (generally the earnings portion only), unless an exception under Section 72(t) applies. A 10% additional tax will be assessed if you are under age 591/2 if you are deemed to withdraw any portion of a conversion that you made from your traditional IRA to your Xxxx XXX before five years have lapsed from the conversion year, even if such distribution is otherwise nontaxable. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess which remains in your account. If you should die, and the appropriate required death distributions are not made from your Xxxx XXX, an excise tax of 50% is assessed to your beneficiary based upon the difference between the amount that should have been distributed and the amount that was actually distributed. You may be required to file IRS Form 5329 with the Internal Revenue Service for any year an additional tax is due. iNcOME TAX WiTHHOlDiNG All withdrawals from your Xxxx XXX (except the earnings attributable to a return of excess contributions) are not subject to Federal income tax withholding TRANSFERS A direct transfer of all or a portion of your funds is permitted from this Xxxx XXX to another Xxxx XXX or visa versa. Transfers do not constitute a distribution since you are never in receipt of the funds. The monies are transferred directly to the new trustee or custodian. Transfers are neither subject to the 12-month restriction nor the 60-day rollover period usually associated with rollovers. If you should transfer all or a portion of your Xxxx XXX to your former spouse’s Xxxx XXX under a divorce decree (or under a written instrument incident to divorce) or separation instrument, you will not be deemed to have made a taxable distribution, but merely a transfer. The portion so transferred will be treated at the time of the transfer as the Xxxx XXX of your spouse or former spouse. If your spouse is the beneficiary of your Xxxx XXX, in the event of your death, your spouse may “assume” your Xxxx XXX. The assumed Xxxx XXX is then treated as your surviving spouse’s Xxxx XXX. Qualified Charitable Distributions - If a Xxxx XXX owner is exactly age 701/2 or over, the Xxxx XXX owner may direct the Xxxx XXX tru...
