Common use of Conversion Contributions Clause in Contracts

Conversion Contributions. You may contribute all or any part of a distribution from an IRA, other than a Xxxx XXX including a SEP IRA, SARSEP IRA, or SIMPLE-IRA, to a Xxxx XXX (“conversion contribution”) within 60 days or by means of a trustee-to-trustee transfer, provided the amount is otherwise eligible to be rolled over. For these purposes, the one-rollover-per-year rule does not apply. You will be subject to income tax on the taxable portion of any conversion contribution, but the premature distribution penalty will not apply. Assets held in a SIMPLE-IRA may be converted to a Xxxx XXX only after the expiration of the two-year period beginning on the date your employer first made contributions to your SIMPLE-IRA maintained by your employer and as more fully described in Section 72(t)(6) of the Code. However, distributions from tax qualified plans (for example pension, profit- sharing and Xxxxx plans) may not be contributed directly to a Xxxx XXX. This taxable portion is the amount that would have been included in your income if you had actually taken a distribution from such IRA (the “conversion amount”). If taxes are withheld from your Xxxx XXX Conversion, the amount withheld may be subject to the 10% early withdrawal penalty unless an exception applies. In addition, the withholding amount may make you ineligible to convert as the withheld amounts are taken into account when determining your Adjusted Gross Income for Xxxx Conversion eligibility

Conversion Contributions. You may contribute all or any part of a distribution from an IRAXXX, other than a Xxxx XXX including a SEP IRAXXX, SARSEP IRAXXX, or SIMPLE-IRAXXX, to a Xxxx XXX (“conversion contribution”) within 60 days or by means of a trustee-to-trustee transfer, provided the amount is otherwise eligible to be rolled over. For these purposes, the one-rollover-per-year rule does not apply. You will be subject to income tax on the taxable portion of any conversion contribution, but the premature distribution penalty will not apply. Assets held in a SIMPLE-IRA XXX may be converted to a Xxxx XXX only after the expiration of the two-year period beginning on the date your employer first made contributions to your SIMPLE-IRA XXX maintained by your employer and as more fully described in Section 72(t)(6) of the Code. However, distributions from tax qualified plans (for example pension, profit- sharing and Xxxxx plans) may not be contributed directly to a Xxxx XXX. This taxable portion is the amount that would have been included in your income if you had actually taken a distribution from such IRA XXX (the “conversion amount”). If taxes are withheld from your Xxxx XXX Conversion, the amount withheld may be subject to the 10% early withdrawal penalty unless an exception applies. In addition, the withholding amount may make you ineligible to convert as the withheld amounts are taken into account when determining your Adjusted Gross Income for Xxxx Conversion eligibility