Federal Qualified Rollover Distribution Sample Clauses

Federal Qualified Rollover Distribution. The Account Owner may direct a transfer of money from the Account to an account in another 529 qualified tuition program for the same or another beneficiary. Alternatively, the Account Owner may make a withdrawal from the Account and re-deposit the withdrawn balance within sixty (60) days into an account in another 529 qualified tuition program for the same or another beneficiary. Such a rollover will be treated as a Federal Qualified Rollover Distribution provided that if the beneficiary remains the same, it has been more than twelve (12) months since any previous rollover for that beneficiary. If the beneficiary changes, the transfer will be treated as a Federal Qualified Rollover Distribution only if the new beneficiary is a Member of the Family of the former beneficiary. In addition, prior to January 1, 2026, a transfer of money from the Account to an ABLE account for the Beneficiary or a Member of the Family of the Beneficiary, is a Federal Qualified Rollover Distribution provided that the transfer when added to all other contributions made to the ABLE account in the taxable year, does not exceed the limitation in Section 529A(b)(2)(B)(i) of the Code. That Section of the Code limits aggregate contributions to an ABLE account during a tax year to the amount of the gift tax annual exclusion (for 2021 the annual exclusion is $15,000 and will increase to $16,000 in 2022). When Is the Contributions Portion of a Rollover Subject to Income Tax? Illinois law provides for the recapture of Illinois state tax benefits in the event of an Illinois Nonqualified Withdrawal from the Account. In the event of an Illinois Nonqualified Withdrawal, the adjusted gross income of an Illinois taxpayer who took an Illinois income tax deduction for a Contribution to the Account will be increased by an amount equal to the Contributions Portion of such Illinois Nonqualified Withdrawal that was previously deducted from federal adjusted gross income on the taxpayer’s Illinois tax return. Note that if the Illinois tax rate at the time of the Illinois Nonqualified Withdrawal exceeds the tax rate at the time of the original Contribution, the additional tax may exceed the amount of tax saved by the deduction. A rollover that is not a Federal Qualified Rollover Distribution will be an Illinois Nonqualified Withdrawal. Certain rollovers that are Federal Qualified Rollover Distributions, however, may be Illinois Nonqualified Withdrawals, including rollovers to out-of-state 529 programs an...
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Federal Qualified Rollover Distribution. The Account Owner may direct a transfer of money from the Account to an account in another 529 qualified tuition program for the same or another beneficiary. Alternatively, the Account Owner may make a withdrawal from the Account and re-deposit the withdrawn balance within sixty (60) days into an account in another 529 qualified tuition program for the same or another beneficiary. Such a rollover will be treated as a Federal Qualified Rollover Distribution provided that if (1) the beneficiary remains the same, it has been more than twelve (12) months since any previous rollover for that beneficiary and (2) if the beneficiary changes, the new beneficiary is a Member of the Family of the former beneficiary. In addition, prior to January 1, 2026, a transfer of money from the Account to an ABLE account for the Beneficiary or a Member of the Family of the Beneficiary, is a Federal Qualified Rollover Distribution provided that the transfer when added to all other contributions made to the ABLE account in the taxable year, does not exceed the limitation in Section 529A(b)(2)(B)(i) of the Code. That section of the Code limits aggregate contributions to an ABLE account during a tax year to the amount of the gift tax annual exclusion (for 2023 the annual exclusion is $17,000 and will increase to $18,000 in 2024). In addition, a Xxxx XXX Rollover is also a Federal Qualified Rollover Distribution. A Xxxx XXX Rollover is a direct transfer from an Account to a Xxxx XXX on or after January 1, 2024, that meets the following requirements: • The Account must have been maintained for the 15-year period ending on the date of the Xxxx XXX Rollover. • The Xxxx XXX Rollover must be made in a direct trustee-to-trustee transfer to a Xxxx XXX maintained for the benefit of the Beneficiary of the Account. • Each year, the 529-to-Xxxx XXX Rollover will be subject to annual IRA contribution limits, minus all other IRA contributions made during the year for the same designated beneficiary. In addition, such rollovers may not exceed the amount of compensation the designated beneficiary earned during the year. • The amount of the Xxxx XXX Rollover may not exceed the aggregate amount contributed to Account (and earnings attributable thereto) before the 5-year period ending on the date of the IRA Rollover. • The aggregate amount for all years of Xxxx XXX Rollovers for the same Beneficiary from all 529 qualified tuition programs may not exceed $35,000. Xxxx XXX Rollovers are subject to the a...
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Related to Federal Qualified Rollover Distribution

  • Qualified Reservist Distributions If you are a qualified reservist member called to active duty for more than 179 days or an indefinite period, the payments you take from your IRA during the active duty period are not subject to the 10 percent early distribution penalty tax. 10) Qualified birth or adoption. Payments from your IRA for the birth of your child or the adoption of an eligible adoptee will not be subject to the 10 percent early distribution penalty tax if the distribution is taken during the one-year period beginning on the date of birth of your child or the date on which your legal adoption of an eligible adoptee is finalized. An eligible adoptee means any individual (other than your spouse’s child) who has not attained age 18 or is physically or mentally incapable of self-support. The aggregate amount you may take for this reason may not exceed $5,000 for each birth or adoption. You must file IRS Form 5329 along with your income tax return to the IRS to report and remit any additional taxes or to claim a penalty tax exception.

  • How Are Distributions From a Traditional IRA Taxed for Federal Income Tax Purposes Amounts distributed to you are generally includable in your gross income in the taxable year you receive them and are taxable as ordinary income. To the extent, however, that any part of a distribution constitutes a return of your nondeductible contributions, it will not be included in your income. The amount of any distribution excludable from income is the portion that bears the same ratio as your aggregate non-deductible contributions bear to the balance of your Traditional IRA at the end of the year (calculated after adding back distributions during the year). For this purpose, all of your Traditional IRAs are treated as a single Traditional IRA. Furthermore, all distributions from a Traditional IRA during a taxable year are to be treated as one distribution. The aggregate amount of distributions excludable from income for all years cannot exceed the aggregate non-deductible contributions for all calendar years. You must elect the withholding treatment of your distribution, as described in paragraph 22 below. No distribution to you or anyone else from a Traditional IRA can qualify for capital gains treatment under the federal income tax laws. Similarly, you are not entitled to the special five- or ten-year averaging rule for lump-sum distributions that may be available to persons receiving distributions from certain other types of retirement plans. Historically, so-called “excess distributions” to you as well as “excess accumulations” remaining in your account as of your date of death were subject to additional taxes. These additional taxes no longer apply. Any distribution that is properly rolled over will not be includable in your gross income.

  • When Must Distributions from a Traditional IRA Begin You must begin receiving the assets in your account no later than April 1 following the calendar year in which you reach RMD age.

  • Sponsored Investment Entity and Controlled Foreign Corporation A Financial Institution described in subparagraph B(1) or B(2) of this section having a sponsoring entity that complies with the requirements of subparagraph B(3) of this section.

  • Qualified HSA Funding Distribution If you are eligible to contribute to a health savings account (HSA), you may be eligible to take a one-time tax-free HSA funding distribution from your IRA and directly deposit it to your HSA. The amount of the qualified HSA funding distribution may not exceed the maximum HSA contribution limit in effect for the type of high deductible health plan coverage (i.e., single or family coverage) that you have at the time of the deposit, and counts toward your HSA contribution limit for that year. For further detailed information, you may wish to obtain IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.

  • Qualified Distributions Qualified distributions from your Xxxx XXX (both the contributions and earnings) are not included in your income. A qualified distribution is a distribution which is made after the expiration of the five-year period beginning January 1 of the first year for which you made a contribution to any Xxxx XXX (including a conversion from a Traditional IRA), and is made on account of one of the following events. • Attainment of age 59½ • Disability • First-time homebuyer purchase • Death For example, if you made a contribution to your Xxxx XXX for 2007, the five-year period for determining whether a distribution is a qualified distribution is satisfied as of January 1, 2012.

  • Pension Contributions While on Short Term Disability Contributions for OMERS Plan Members When an employee/plan member is on short-term sick leave and receiving less than 100% of regular salary, the Board will continue to deduct and remit OMERS contributions based on 100% of the employee/plan member’s regular pay.

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