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. within 180 days of its receipt. Movement of Assets Between Traditional and Xxxx IRAs.

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. within 180 days of its receipt. Movement of Assets Between Traditional and Xxxx IRAs.