Common use of Distribution and Taxation Clause in Contracts

Distribution and Taxation. I understand that I may not take distributions from the Plan prior to my separation from service, except for the occurrence of an unforeseeable emergency as determined by the Board, qualification under the De Minimus account provision, or for the purchase of service credits in a governmental defined benefit Plan. I am aware that all pre-tax payments will be subject to taxation as ordinary income in the year received and those payments are subject to applicable federal and state tax withholding requirements. I am aware that a Xxxx after-tax distribution taken before the end of the required 5-year holding period and prior to age 59½ is considered a “non-qualified” distribution. Any earnings are taxed as ordinary income; however, the contribution portion of the distribution is tax-free since taxes were already paid.

Distribution and Taxation. I understand that I may not take distributions from the Plan prior to my separation from service, except for the occurrence of an unforeseeable emergency as determined by the Board, qualification under the De Minimus account provision, or for the purchase of service credits in a governmental defined benefit Plan. I am aware that all pre-tax payments will be subject to taxation as ordinary income in the year received and those payments are subject to applicable federal and state tax withholding requirements. I am aware that a Xxxx after-tax distribution taken before the end of the required 5-year holding period and prior to age 59½ is considered a “non-qualified” distribution. Any earnings are taxed as ordinary income; however, the The contribution portion of the distribution is tax-free since taxes were already paid; however, any earnings are taxed as ordinary income.