Common use of Excess Accumulation Penalty Tax Clause in Contracts

Excess Accumulation Penalty Tax. Any portion of an RMD that is not distributed to your beneficiary by its deadline is subject to a 50 percent excess accumulation penalty tax. The IRS may waive this penalty upon proof of reasonable error and that reasonable steps were taken to correct the error, including remedying the shortfall. A beneficiary should review IRS Form 5329 instructions when requesting a waiver. FINANCIAL DISCLOSURE IRS regulations require us to provide you with a financial projection of the (c) any portion of your contributions, if any, which may be used for the growth of your Xxxx XXX account based upon certain assumptions where purchase of life insurance.

Excess Accumulation Penalty Tax. Any portion of an RMD that is not distributed to your beneficiary by its deadline is subject to a 50 percent excess accumulation penalty tax. The IRS may waive this penalty upon proof of reasonable error and that reasonable steps were taken to correct the error, including remedying the shortfall. A beneficiary should review IRS Form 5329 instructions when requesting a waiver. FINANCIAL DISCLOSURE IRS regulations require us to provide you with a financial projection of the (c) any portion of your contributions, if any, which may be used for the growth of your Xxxx XXX Roth IRA account based upon certain assumptions where purchase of life insurance.