Common use of Inherited Xxxx IRAs Clause in Contracts

Inherited Xxxx IRAs. Except for direct rollovers of designated Xxxx assets from a deceased participant’s 401(k) plan(s), 403(b) arrangement(s), governmental 457(b) plan(s), qualified rollover contributions from inherited eligible retirement plan(s) other than a Xxxx XXX, direct transfers from another Inherited Xxxx XXX and certain recharacterized contributions from Inherited Traditional IRAs, no other contribution types are allowed to be contributed to the Inherited Xxxx XXX, unless otherwise permitted under the Internal Revenue Code or regulations. Eligible rollover distributions of designated Xxxx assets from a deceased participant’s Xxxx 401(k) plan(s), Xxxx 403(b) arrangement(s), or Xxxx 457(b) plan(s) may be rolled over by a nonspouse beneficiary to an Inherited Xxxx XXX. Rollovers to an Inherited Xxxx XXX must be sent directly from the plan administrator to the Inherited Xxxx XXX custodian. The nonspouse beneficiary may not have constructive receipt of the assets. The nonspouse beneficiary is solely responsible for tracking the basis and earnings of the assets rolled over. If a nonqualified distribution is rolled over from Xxxx 401(k), Xxxx 403(b), or Xxxx 457(b) to a Xxxx XXX, the basis and earnings must still be tracked. If a qualified distribution from a Xxxx 401(k), Xxxx 403(b), or Xxxx 457(b) is rolled over, the entire amount of the rollover contribution is considered basis in the Xxxx XXX. If current eligibility requirements as defined by the Internal Revenue Code and regulations are met, a nonspouse beneficiary may make a qualified rollover contribution to a Xxxx XXX from an eligible retirement plan other than a Xxxx XXX. A qualified rollover contribution must be sent in a direct trustee-to- trustee transaction from the distributing plan to the Inherited Xxxx XXX. The nonspouse beneficiary may not have constructive receipt of the assets. For assistance in determining qualified rollover contribution eligibility and the tax consequences of such a transaction, consult a tax advisor.

Inherited Xxxx IRAs. Except for direct rollovers of designated Xxxx assets from a deceased participant’s 401(k) plan(s), 403(b) arrangement(s), governmental 457(b) plan(s), qualified rollover contributions from inherited eligible retirement plan(s) other than a Xxxx XXX, direct transfers from another Inherited Xxxx XXX and certain recharacterized contributions from Inherited Traditional IRAs, no other contribution types are allowed to be contributed to the Inherited Xxxx XXX, unless otherwise permitted under the Internal Revenue Code or regulations. Eligible rollover distributions of designated Xxxx assets from a deceased participant’s Xxxx 401(k) plan(s), Xxxx 403(b) arrangement(s), or Xxxx 457(b) plan(s) may be rolled over by a nonspouse non-spouse beneficiary to an Inherited Xxxx XXX. Rollovers to an Inherited Xxxx XXX must be sent directly from the plan administrator to the Inherited Xxxx XXX custodian. The nonspouse non-spouse beneficiary may not have constructive receipt of the assets. The nonspouse non-spouse beneficiary is solely responsible for tracking the basis and earnings of the assets rolled over. If a nonqualified distribution is rolled over from Xxxx 401(k), Xxxx 403(b), or Xxxx 457(b) to a Xxxx XXX, the basis and earnings must still be tracked. If a qualified distribution from a Xxxx 401(k), Xxxx 403(b), or Xxxx 457(b) is rolled over, the entire amount of the rollover contribution is considered basis in the Xxxx XXX. If current eligibility requirements as defined by the Internal Revenue Code and regulations are met, a nonspouse non-spouse beneficiary may make a qualified rollover contribution to a Xxxx XXX from an eligible retirement plan other than a Xxxx XXX. A qualified rollover contribution must be sent in a direct trustee-to- to-trustee transaction from the distributing plan to the Inherited Xxxx XXX. The nonspouse non-spouse beneficiary may not have constructive receipt of the assets. For assistance in determining qualified rollover contribution eligibility and the tax consequences of such a transaction, consult a tax advisor. A non-spouse beneficiary ineligible to make a qualified rollover contribution to a Xxxx XXX may be eligible to recharacterize such contribution pursuant to the Code and regulations. Distributions to Inherited Xxxx XXX Owners. A non-spouse Beneficiary (including a Beneficiary of a Xxxx XXX that was established with a rollover of inherited employer plan assets) must withdraw required distributions as prescribed by the Internal Revenue Code and regulations. Generally, if PRIOR to January 1, 2020 you inherited assets from someone other than your spouse, or you are the spouse beneficiary of these assets and you choose not to treat this account as your own, you are generally required to take a minimum distribution from the inherited account by December 31 of each year. The required minimum distribution (RMD) amount is generally based on the IRS Single Life Expectancy (SLE) table. Alternatively, you can choose to distribute the balance of your inherited retirement account within five years of the owner’s death. However, if you inherited retirement assets ON OR AFTER January 1, 2020, you may be subject to the 10-year distribution rule (i.e., that you must take all distributions within 10 years of the death of the Xxxx XXX owner). Exceptions, including inheritance by spouses, do apply and you would continue to be subject to RMDs over your lifetime. If you do not take enough to satisfy the requirement, the IRS may impose a 25% excise tax on the shortfall. Due to the complexity of RMD requirements for inherited accounts, you should speak with your tax professional regarding the options available to you.

Inherited Xxxx IRAs. Except for direct rollovers of designated Xxxx assets from a deceased participant’s 401(k) plan(s), 403(b) arrangement(s), governmental 457(b) plan(s), qualified rollover contributions from inherited eligible retirement plan(s) other than a Xxxx XXX, direct transfers from another Inherited Xxxx XXX and certain recharacterized contributions from Inherited Traditional IRAs, no other contribution types are allowed to be contributed to the Inherited Xxxx XXX, unless otherwise permitted under the Internal Revenue Code or regulations. Eligible rollover distributions of designated Xxxx assets from a deceased participant’s Xxxx 401(k) plan(s), Xxxx 403(b) arrangement(s), or Xxxx 457(b) plan(s) may be rolled over by a nonspouse non spouse beneficiary to an Inherited Xxxx XXX. Rollovers to an Inherited Xxxx XXX must be sent directly from the plan administrator to the Inherited Xxxx XXX custodian. The nonspouse non spouse beneficiary may not have constructive receipt of the assets. The nonspouse non spouse beneficiary is solely responsible for tracking the basis and earnings of the assets rolled over. If a nonqualified distribution is rolled over from Xxxx 401(k), Xxxx 403(b), or Xxxx 457(b) to a Xxxx XXX, the basis and earnings must still be tracked. If a qualified distribution from a Xxxx 401(k), Xxxx 403(b), or Xxxx 457(b) is rolled over, the entire amount of the rollover contribution is considered basis in the Xxxx XXX. If current eligibility requirements as defined by the Internal Revenue Code and regulations are met, a nonspouse non spouse beneficiary may make a qualified rollover contribution to a Xxxx XXX from an eligible retirement plan other than a Xxxx XXX. A qualified rollover contribution must be sent in a direct trustee-to- to-trustee transaction from the distributing plan to the Inherited Xxxx XXX. The nonspouse non spouse beneficiary may not have constructive receipt of the assets. For assistance in determining qualified rollover contribution eligibility and the tax consequences of such a transaction, consult a tax advisor. A non spouse beneficiary ineligible to make a qualified rollover contribution to a Xxxx XXX may be eligible to recharacterize such contribution pursuant to the Code and regulations. Distributions to Inherited Xxxx XXX Owners. A non spouse Beneficiary (including a Beneficiary of a Xxxx XXX that was established with a rollover of inherited employer plan assets) must withdraw required distributions as prescribed by the Internal Revenue Code and regulations. Generally, if PRIOR to January 1, 2020 you inherited assets from someone other than your spouse, or you are the spouse beneficiary of these assets and you choose not to treat this account as your own, you are generally required to take a minimum distribution from the inherited account by December 31 of each year. The required minimum distribution (RMD) amount is generally based on the IRS Single Life Expectancy (SLE) table. Alternatively, you can choose to distribute the balance of your inherited retirement account within five years of the owner’s death. However, if you inherited retirement assets ON OR AFTER January 1, 2020, you may be subject to the 10-year distribution rule (i.e., that you must take all distributions within 10 years of the death of the Xxxx XXX owner). Exceptions, including inheritance by spouses, do apply and you would continue to be subject to RMDs over your lifetime. If you do not take enough to satisfy the requirement, the IRS may impose a 50% excise tax on the shortfall. Due to the complexity of RMD requirements for inherited accounts, you should speak with your tax professional regarding the options available to you.