Common use of Indirect Rollover and Withholding Clause in Contracts

Indirect Rollover and Withholding. An indirect rollover begins with a plan distribution made payable to you. If you receive distributions during the tax year totaling more than $200, your employer is required to withhold 20 percent on the taxable portion of your eligible rollover distribution as a prepayment of federal income taxes on distributions. You may make up the 20 percent withholding from your own funds at the time you deposit your distribution into an XXX, that portion is generally treated as taxable income. If you are younger than age 59 1/2, you are subject to a 10 percent early-distribution penalty tax on the taxable amount of the distribution that is not rolled over, unless a penalty tax exception applies. Your distribution is only eligible to be contributed to an XXX during the 60 days following your receipt of a plan distribution. Your decision to contribute the assets to the XXX as a rollover contribution is irrevocable. The one per 1-year limitation does not apply to rollovers from employer- sponsored eligible retirement plans. State withholding may apply to eligible rollover distributions. Movement of Assets Between Traditional and Xxxx IRAs. 1. Traditional XXX to Xxxx XXX Conversions. You may convert all or a portion of your traditional XXX assets to a Xxxx XXX. Your conversion assets (excluding prorated nondeductible contributions) are subject to federal income tax. Your conversion must be reported to the IRS. The 10 percent early-distribution penalty tax does not apply to conversions. The one per 1-year limitation does not apply to conversions. If you elect to convert your assets using a rollover transaction, the 60-day rule applies. 2. Traditional XXX and Xxxx XXX Recharacterizations. You may recharacterize, or choose to treat all or a portion of your regular (including catch-up) traditional XXX contribution as a regular Xxxx XXX contribution. Similarly, you may recharacterize your regular (including catch-up) Xxxx XXX contribution as a regular traditional XXX contribution. You may cancel a conversion through a recharacterization of all or a portion of the amount converted from a traditional XXX to a Xxxx XXX. You may also recharacterize the amount rolled or directly rolled over to a Xxxx XXX from an eligible retirement plan, or other recharacterization, as provided by law. A recharacterization election is irrevocable. You must complete a recharacterization no later than your federal income tax-filing due date, including extensions, for the year you make the initial contribution. If you timely file your federal income tax return, you may still recharacterize as late as October 15 for calendar year filers. Recharacterizations must occur by transfer, which means that the assets, adjusted for gains and losses on the recharacterized amount, must be transferred into another XXX. The recharacterized contribution is treated as though you deposited it into the second

Indirect Rollover and Withholding. An indirect rollover begins 1. Traditional IRA to Xxxx XXX Conversions. You may convert all with a plan distribution made payable to you. If you receive or a portion of your traditional IRA assets to a Xxxx XXX. Your distributions during the tax year totaling more than $200, your conversion assets (excluding prorated nondeductible contributions) employer is required to withhold 20 percent on the taxable are subject to federal income tax. Your conversion must be reported portion of your eligible rollover distribution as a prepayment of to the IRS. The 10 percent early-distribution penalty tax does not federal income taxes on distributions. You may make up the 20 apply to conversions. If you elect to convert your assets using a percent withholding from your own funds at the time you deposit rollover transaction, the 60-day rule applies. The one per 1-year the distribution into an IRA. If the 20 percent is not made up at limitation does not apply to conversions. the time you deposit your distribution into an XXXIRA, that portion is 2. Traditional IRA and Xxxx XXX Recharacterizations. You may generally treated as taxable income. If you are younger than age recharacterize, or choose to treat all or a portion of your regular 59 1/2, you are subject to a 10 percent early-distribution penalty tax on the taxable amount of the distribution that is not rolled over, unless a penalty tax exception applies. Your distribution is only eligible to be contributed to an XXX during the 60 days following your receipt of a plan distribution. Your decision to contribute the assets to the XXX as a rollover contribution is irrevocable. The one per 1-year limitation does not apply to rollovers from employer- sponsored eligible retirement plans. State withholding may apply to eligible rollover distributions. Movement of Assets Between Traditional and Xxxx IRAs. 1. Traditional XXX to Xxxx XXX Conversions. You may convert all or a portion of your traditional XXX assets to a Xxxx XXX. Your conversion assets (excluding prorated nondeductible contributions) are subject to federal income tax. Your conversion must be reported to the IRS. The 10 percent early-distribution penalty tax does not apply to conversions. The one per 1-year limitation does not apply to conversions. If you elect to convert your assets using a rollover transaction, the 60-day rule applies. 2. Traditional XXX and Xxxx XXX Recharacterizations. You may recharacterize, or choose to treat all or a portion of your regular (including catch-up) traditional XXX IRA contribution as a regular Xxxx XXX contribution. Similarly, you may recharacterize your regular you die or become disabled, the amount of the distribution made (including catch-up) Xxxx XXX contribution as a regular traditional XXX under this provision will be includable in gross income for the tax IRA contribution. You may cancel a conversion through a recharacterization of all or a portion of the amount converted from a traditional XXX to a Xxxx XXX. You may also recharacterize the amount rolled or directly rolled over to a Xxxx XXX from an eligible retirement plan, or other recharacterization, as provided by law. A recharacterization election is irrevocable. You year of the month you are not an eligible individual, and is subject must complete a recharacterization no later than your federal income to a 10 percent penalty tax-filing due date, including extensions, for the year you make the initial contribution. If you timely file your federal income tax return, you may still recharacterize as late as October 15 for calendar year filers. Recharacterizations must occur by transfer, which means that the assets, adjusted for gains and losses on the recharacterized amount, must be transferred into another XXX. The recharacterized contribution is treated as though you deposited it into the second.

Indirect Rollover and Withholding. An indirect rollover begins 1. Traditional IRA to Roth IRA Conversions. You may convert all with a plan distribution made payable to you. If you receive or a portion of your traditional IRA assets to a Roth IRA. Your distributions during the tax year totaling more than $200, your conversion assets (excluding prorated nondeductible contributions) employer is required to withhold 20 percent on the taxable are subject to federal income tax. Your conversion must be reported portion of your eligible rollover distribution as a prepayment of to the IRS. The 10 percent early-distribution penalty tax does not federal income taxes on distributions. You may make up the 20 apply to conversions. If you elect to convert your assets using a percent withholding from your own funds at the time you deposit rollover transaction, the 60-day rule applies. The one per 1-year the distribution into an IRA. If the 20 percent is not made up at limitation does not apply to conversions. the time you deposit your distribution into an XXXIRA, that portion is 2. Traditional IRA and Roth IRA Recharacterizations. You may generally treated as taxable income. If you are younger than age recharacterize, or choose to treat all or a portion of your regular 59 1/2, you are subject to a 10 percent early-distribution penalty tax on the taxable amount of the distribution that is not rolled over, unless a penalty tax exception applies. Your distribution is only eligible to be contributed to an XXX during the 60 days following your receipt of a plan distribution. Your decision to contribute the assets to the XXX as a rollover contribution is irrevocable. The one per 1-year limitation does not apply to rollovers from employer- sponsored eligible retirement plans. State withholding may apply to eligible rollover distributions. Movement of Assets Between Traditional and Xxxx IRAs. 1. Traditional XXX to Xxxx XXX Conversions. You may convert all or a portion of your traditional XXX assets to a Xxxx XXX. Your conversion assets (excluding prorated nondeductible contributions) are subject to federal income tax. Your conversion must be reported to the IRS. The 10 percent early-distribution penalty tax does not apply to conversions. The one per 1-year limitation does not apply to conversions. If you elect to convert your assets using a rollover transaction, the 60-day rule applies. 2. Traditional XXX and Xxxx XXX Recharacterizations. You may recharacterize, or choose to treat all or a portion of your regular (including catch-up) traditional XXX IRA contribution as a regular Xxxx XXX Roth IRA contribution. Similarly, you may recharacterize your regular you die or become disabled, the amount of the distribution made (including catch-up) Xxxx XXX Roth IRA contribution as a regular traditional XXX under this provision will be includable in gross income for the tax IRA contribution. You may cancel a conversion through a recharacterization of all or a portion of the amount converted from a traditional XXX to a Xxxx XXX. You may also recharacterize the amount rolled or directly rolled over to a Xxxx XXX from an eligible retirement plan, or other recharacterization, as provided by law. A recharacterization election is irrevocable. You year of the month you are not an eligible individual, and is subject must complete a recharacterization no later than your federal income to a 10 percent penalty tax-filing due date, including extensions, for the year you make the initial contribution. If you timely file your federal income tax return, you may still recharacterize as late as October 15 for calendar year filers. Recharacterizations must occur by transfer, which means that the assets, adjusted for gains and losses on the recharacterized amount, must be transferred into another XXX. The recharacterized contribution is treated as though you deposited it into the second.

Indirect Rollover and Withholding. An indirect rollover begins with a plan distribution made payable to you. If you receive distributions during the tax year totaling more than $200, your employer is required to withhold 20 percent on the taxable portion of your eligible rollover distribution as a prepayment of federal income taxes on distributions. You may make up the 20 percent withholding from your own funds at the time you deposit your distribution into an XXXIRA, that portion is generally treated as taxable income. If you are younger than age 59 1/2, you are subject to a 10 percent early-distribution penalty tax on the taxable amount of the distribution that is not rolled over, unless a penalty tax exception applies. Your distribution is only eligible to be contributed to an XXX IRA during the 60 days following your receipt of a plan distribution. Your decision There may be exceptions to 10. Repayment of a Qualified Birth or Adoption Distribution. You may take a distribution of up to contribute $5,000 for a qualified birth or adoption within one year of the assets birth or from when the adoption is finalized. Such a distribution may be repaid to the XXX as a rollover contribution is irrevocable. The one per 1-year limitation does not apply to rollovers from employer- sponsored eligible retirement plans. State withholding may apply to eligible rollover distributionsIRA. Movement of Assets Between Traditional and Xxxx IRAs. 1. Traditional XXX IRA to Xxxx XXX Conversions. You may convert all or a portion of your traditional XXX IRA assets to a Xxxx XXX. Your conversion assets (excluding prorated nondeductible contributions) are subject to federal income tax. Your conversion must be reported to the IRS. The 10 percent early-distribution penalty tax does not apply to conversions. The one per 1-year limitation does not apply to conversions. If you elect to convert your assets using a rollover transaction, the 60-day rule applies. 2. Traditional XXX IRA and Xxxx XXX Recharacterizations. You may recharacterize, or choose to treat all or a portion of your regular (including catch-up) traditional XXX IRA contribution as a regular Xxxx XXX contribution. Similarly, you may recharacterize your regular (including and catch-up) up Xxxx XXX contribution as a regular traditional XXX IRA contribution. You may cancel a conversion through a recharacterization of all or a portion of the amount converted from a traditional XXX to a Xxxx XXX. You may also recharacterize the amount rolled or directly rolled over to a Xxxx XXX from an eligible retirement plan, or other recharacterization, as provided by law. A recharacterization election is irrevocable. You must complete a recharacterization no later than your federal income tax-filing due date, including extensions, for the year you make the initial contribution. If you timely file your federal income tax return, you may still recharacterize as late as October 15 for calendar year filers. Recharacterizations must occur by transfer, which means that the assets, adjusted for gains and losses on the recharacterized amount, must be transferred into another XXX. The recharacterized contribution is treated as though you deposited it into the secondincome

Indirect Rollover and Withholding. An indirect rollover begins with a plan distribution made payable to you. If you receive distributions during the tax year totaling more than $200, your employer is required to withhold 20 percent on the taxable portion of your eligible rollover distribution as a prepayment of federal income taxes on distributions. You may make up the 20 percent withholding from your own funds at the time you deposit your distribution into an XXXIRA, that portion is generally treated as taxable income. If you are younger than age 59 1/2, you are subject to a 10 percent early-distribution penalty tax on the taxable amount of the distribution that is not rolled over, unless a penalty tax exception applies. Your distribution is only eligible to be contributed to an XXX IRA during the 60 days following your receipt of a plan distribution. Your decision to contribute the assets to the XXX IRA as a rollover contribution is irrevocable. The one per 1-year limitation does not apply to rollovers from employer- sponsored eligible retirement plans. State withholding may apply to eligible rollover distributions. Movement of Assets Between Traditional and Xxxx IRAs. 1. Traditional XXX IRA to Xxxx XXX Conversions. You may convert all or a portion of your traditional XXX IRA assets to a Xxxx XXX. Your conversion assets (excluding prorated nondeductible contributions) are subject to federal income tax. Your conversion must be reported to the IRS. The 10 percent early-distribution penalty tax does not apply to conversions. The one per 1-year limitation does not apply to conversions. If you elect to convert your assets using a rollover transaction, the 60-day rule applies. 2. Traditional XXX IRA and Xxxx XXX Recharacterizations. You may recharacterize, or choose to treat all or a portion of your regular (including catch-up) traditional XXX IRA contribution as a regular Xxxx XXX contribution. Similarly, you may recharacterize your regular (including catch-up) Xxxx XXX contribution as a regular traditional XXX IRA contribution. You may cancel a conversion through a recharacterization of all or a portion of the amount converted from a traditional XXX IRA to a Xxxx XXX. You may also recharacterize the amount rolled or directly rolled over to a Xxxx XXX from an eligible retirement plan, or other recharacterization, as provided by law. A recharacterization election is irrevocable. You must complete a recharacterization no later than your federal income tax-filing due date, including extensions, for the year you make the initial contribution. If you timely file your federal income tax return, you may still recharacterize as late as October 15 for calendar year filers. Recharacterizations must occur by transfer, which means that the assets, adjusted for gains and losses on the recharacterized amount, must be transferred into another XXXIRA. The recharacterized contribution is treated as though you deposited it into the second

Indirect Rollover and Withholding. An indirect rollover begins begins 2. Traditional IRA and Xxxx XXX Recharacterizations. You may with a plan distribution made payable to you. If you receive distributions during the tax year totaling more than $200In general, your recharacterize, or choose to treat all or a portion of your regular employer is required to withhold 20 percent on the taxable (including catch-up) traditional IRA contribution as a regular Xxxx portion of your eligible rollover distribution as a prepayment of federal IRA contribution. Similarly, you may recharacterize all or a portion income taxes on distributions. You may make up the 20 percent of your regular (including catch-up) Xxxx XXX contribution as a withholding from your own funds at the time you deposit your the regular traditional IRA contribution. A recharacterization election is distribution into an a Xxxx XXX, that portion is generally treated as taxable income. If you are younger than age 59 1/2, irrevocable. You must complete a recharacterization no later than you are subject to a 10 percent early-distribution penalty tax on the taxable amount of the distribution that is not rolled over, unless a penalty tax exception applies. Your distribution is only eligible to be contributed to an XXX during the 60 days following your receipt of a plan distribution. Your decision to contribute the assets to the XXX as a rollover contribution is irrevocable. The one per 1-year limitation does not apply to rollovers from employer- sponsored eligible retirement plans. State withholding may apply to eligible rollover distributions. Movement of Assets Between Traditional and Xxxx IRAs. 1. Traditional XXX to Xxxx XXX Conversions. You may convert all or a portion of your traditional XXX assets to a Xxxx XXX. Your conversion assets (excluding prorated nondeductible contributions) are subject to federal income tax. Your conversion must be reported to the IRS. The 10 percent early-distribution penalty tax does not apply to conversions. The one per 1-year limitation does not apply to conversions. If you elect to convert your assets using a rollover transaction, the 60-day rule applies. 2. Traditional XXX and Xxxx XXX Recharacterizations. You may recharacterize, or choose to treat all or a portion of your regular (including catch-up) traditional XXX contribution as a regular Xxxx XXX contribution. Similarly, you may recharacterize your regular (including catch-up) Xxxx XXX contribution as a regular traditional XXX contribution. You may cancel a conversion through a recharacterization of all or a portion of the amount converted from a traditional XXX to a Xxxx XXX. You may also recharacterize the amount rolled or directly rolled over to a Xxxx XXX from an eligible retirement plan, or other recharacterization, as provided by law. A recharacterization election is irrevocable. You must complete a recharacterization no later than your federal income tax-filing due date, including extensions, for the the taxable amount of the distribution that is not rolled over, year you make the initial contribution. If you timely file your federal unless a penalty tax exception applies. Your eligible distribution income tax return, you may still recharacterize your contribution as may be contributed to a Xxxx XXX during the 60 days following late as October 15 for calendar year filers. Recharacterizations must your receipt of a plan distribution. There may be exceptions to occur by transfer, which means that the assets, adjusted for gains and completing the rollover within 60 days. For example, exceptions losses on the recharacterized amount, must be transferred into another XXXfor making a late rollover are available for rolling over the return IRA. The recharacterized contribution is treated as though you of an improper tax levy as well as for rolling over qualified plan deposited it into the secondsecond IRA on the same day you actually loan offset amounts. Generally, these exceptions permit amounts deposited it in the first IRA. to be rolled over until the tax-filing due date of the year in which Recharacterization transactions are reported to the IRS. The election such amounts are, for example, returned or treated as to recharacterize may be completed on your behalf after your death. distributed. Your decision to contribute the assets to a Xxxx XXX A written notice of recharacterization is required for as a rollover contribution is irrevocable. The one per 1-year recharacterization transactions. limitation does not apply to rollovers from eligible retirement plans. State withholding may apply to eligible distributions.