Common use of EXCESS CONTRIBUTION PENALTY Clause in Contracts

EXCESS CONTRIBUTION PENALTY. An excise tax of 6 percent is imposed upon any excess contribution made to a Xxxxxxxxx ESA. This tax will apply each year in which an excess remains in the Xxxxxxxxx ESA. An excess contribution is any contribution amount which exceeds the contribution limit, excluding rollover and direct transfer amounts. The contribution limit is $2,000 per Designated Beneficiary per year. The contribution limit may be further limited by the Depositor’s MAGI as discussed previously. The excess contribution should be removed by the Responsible Individual and made payable to the Designated Beneficiary.

EXCESS CONTRIBUTION PENALTY. An excise tax of 6 six percent is imposed upon any excess contribution made to a Xxxxxxxxx ESA. This tax will apply each year in which an excess remains in the Xxxxxxxxx ESA. An excess contribution is any contribution amount which that exceeds the contribution limit, excluding rollover and direct transfer amounts. The contribution limit is $2,000 per Designated Beneficiary per year. The contribution limit may be further limited by the DepositorGrantor’s MAGI as discussed previously. The excess contribution should be removed by the Responsible Individual and made payable to the Designated Beneficiary.

EXCESS CONTRIBUTION PENALTY. An excise tax of 6 percent is imposed upon any excess contribution made to a Xxxxxxxxx ESA. This tax will apply to each year in which an excess remains in the Xxxxxxxxx ESA. An excess contribution is any contribution amount which exceeds the contribution limit, excluding rollover and direct transfer amounts. The contribution limit is $2,000 per Designated Beneficiary per year. The contribution limit may be further limited by the Depositor’s MAGI as discussed previously. The excess contribution should be removed by the Responsible Individual and made payable to the Designated Beneficiary.is