Common use of EXCESS CONTRIBUTIONS AND PENALTY Clause in Contracts

EXCESS CONTRIBUTIONS AND PENALTY. An additional tax of six percent is imposed upon any excess contribution you make to your Xxxx XXX which is not removed timely. This additional tax will apply each year in which an excess remains in your Xxxx XXX and not removed timely. An excess contribution is any amount that is contributed to your Xxxx XXX that exceeds the amount that you are eligible to contribute. An excess contribution may be corrected by withdrawing the excess amount, along with the earnings, attributable to the excess, before your tax filing deadline, including extensions, for the year for which the excess contribution was made. You must include the earnings attributable to the excess in your taxable income in the year in which the contribution was made and the six percent excess contribution penalty tax will be avoided. However, if you are correcting an excess contribution after your tax filing deadline, including extensions, remove only the amount of the excess contribution. The six percent excess contribution penalty tax will be imposed on the excess contribution for each year it remains in the Xxxx XXX Account. An excess withdrawal under this method will only be taxable to you if the total contributions made in the year of the excess exceed the annual applicable contribution limit. If you do not withdraw the excess contribution, you can carry forward the contribution for a subsequent tax year and you can under-contribute for that tax year on your tax return. The six percent excess contribution penalty tax will be imposed on the excess amount for each year that it remains as an excess contribution at the end of the year.

EXCESS CONTRIBUTIONS AND PENALTY. An additional tax of six percent is imposed upon any excess contribution you make to your Xxxx XXX IRA which is not removed timely. This additional tax will apply each year in which an excess remains in your Xxxx XXX IRA and not removed timely. An excess contribution is any amount that is contributed to your Xxxx XXX IRA that exceeds the amount that you are eligible to contribute. An excess contribution may be corrected by withdrawing the excess amount, along with the earnings, attributable to the excess, before your tax filing deadline, including extensions, for the year for which the excess contribution was made. You must include the earnings attributable to the excess in your taxable income in the year in which the contribution was made and the six percent excess contribution penalty tax will be avoided. However, if you are correcting an excess contribution after your tax filing deadline, including extensions, remove only the amount of the excess contribution. The six percent excess contribution penalty tax will be imposed on the excess contribution for each year it remains in the Xxxx XXX IRA Account. An excess withdrawal under this method will only be taxable to you if the total contributions made in the year of the excess exceed the annual applicable contribution limit. If you do not withdraw the excess contribution, you can carry forward the contribution for a subsequent tax year and you can under-contribute for that tax year on your tax return. The six percent excess contribution penalty tax will be imposed on the excess amount for each year that it remains as an excess contribution at the end of the year.

EXCESS CONTRIBUTIONS AND PENALTY. An additional tax of six percent is imposed upon any excess contribution you make to your Xxxx XXX IRA which is not removed timely. This additional tax will apply each year in which an excess remains in your Xxxx XXX IRA and not removed timely. An excess contribution is any amount that is contributed to your Xxxx XXX IRA that exceeds the amount that you are eligible to contribute. An excess contribution may be e corrected by withdrawing the excess amount, along with the earnings, attributable to the excess, before your tax filing deadline, including extensions, for the year for which the excess contribution was made. You must include the earnings attributable to the excess in your taxable income in the year in which the contribution was made and the six percent excess contribution penalty tax will be avoided. However, if you are correcting an excess contribution after your tax filing deadline, including extensions, remove only the amount of the excess contribution. The six percent excess contribution penalty tax will be imposed on the excess contribution for each year it remains in the Xxxx XXX IRA Account. An excess withdrawal under this method will only be taxable to you if the total contributions made in the year of the excess exceed the annual applicable contribution limit. If you do not withdraw the excess contribution, you can carry forward the contribution for a subsequent tax year and you can under-under- contribute for that tax year on your tax return. The six percent excess contribution penalty tax will be imposed on the excess amount for each year that it remains as an excess contribution at the end of the year.