Common use of Distribution of Nondeductible and Nontaxable Contributions Clause in Contracts

Distribution of Nondeductible and Nontaxable Contributions. If over will be subject to taxation and considered an excess any of your traditional IRAs contain nondeductible contributions, contribution until corrected. rollovers of nontaxable distributions from employer-sponsored 6. Transfers of RMDs. Transfers are not considered distributions. eligible retirement plans, or other nontaxable basis amounts, any You can transfer any portion of your traditional IRA or SIMPLE distributions you take from any of your traditional IRAs or SIMPLE IRA at any time during the year provided you satisfy your aggregate IRAs, that are not rolled over, will return to you a proportionate RMDs before the end of the distribution year. share of the taxable and nontaxable balances in all of your 7. Qualifying Longevity Annuity Contract (QLAC). The fair market traditional IRAs and SIMPLE IRAs at the end of the tax year of value of any QLAC you hold in this IRA is not included in your distributions. IRS Form 8606, Nondeductible IRAs, has been determining your adjusted account balance when calculating your specifically designed to calculate this proportionate return. You must RMD. If however, you make an excess premium payment (premium complete IRS Form 8606 each year you take distributions under payment that causes you to exceed the $200,000 (as adjusted)) and these circumstances and attach it to your tax return for that year to the excess premium is returned to the non-QLAC portion of your validate the taxable portion of your SIMPLE IRA distributions IRA after the valuation date to determine the next year's RMD, such reported for that year. amount is added to the adjusted account balance used for the year of