Common use of Early Distribution Penalty Tax Clause in Contracts

Early Distribution Penalty Tax. If you take a distribution from your SIMPLE IRA before reaching age 59 1/2, you are subject to a 10 percent early-distribution penalty tax on the taxable portion of the distribution. However, certain exceptions apply. Exceptions to the 10 percent penalty tax are distributions due to death, disability,

Early Distribution Penalty Tax. If you take a distribution from for purposes of determining the appropriate distribution period. A your SIMPLE IRA before reaching age 59 1/2, you are subject to a 10 qualifying trust provides documentation of its beneficiaries to the percent early-distribution penalty tax on the taxable portion of the trustee. distribution. However, certain exceptions apply. Exceptions to the 10 percent penalty tax are distributions due to death, disability,the