Common use of Indirect Rollover and Withholding Clause in Contracts

Indirect Rollover and Withholding. An indirect rollover begins 2. Traditional IRA and Xxxx XXX Recharacterizations. You may with a plan distribution made payable to you. In 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 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 the regular traditional IRA contribution. A recharacterization election is distribution into a Xxxx XXX. 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 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