Common use of Eligible Distributions Clause in Contracts

Eligible Distributions. Not all distributions from an ERP are eligible for rollover to a Xxxx XXX. The most common amounts which are not eligible for rollover include required minimum distributions, defaulted loans, substantially equal periodic payments defined in IRC Section 402(c)(4)(A), and hardship distributions. Your employer determines which assets may not be rolled over and must provide you with an IRC Section 402(f) notice of taxation which explains the tax issues and rollover eligibility concerning the distribution.

Eligible Distributions. Not all distributions from an ERP are eligible for rollover to a Xxxx XXX. The most common amounts which are not eligible for rollover include required minimum distributionsRMDs, defaulted loans, substantially equal periodic payments defined in IRC Section 402(c)(4)(A), and hardship distributions. Your employer determines which assets may not be rolled over and must provide you with an IRC Section 402(f) notice of taxation which explains the tax issues and rollover eligibility concerning the distribution.employer