Common use of Nondeductible Contributions Clause in Contracts

Nondeductible Contributions. You may make nondeductible contributions to your XXX to the extent that deductible contributions are not allowed. The total of your deductible and nondeductible XXX contributions cannot exceed your contribution limit (the lesser of the allowable contribution limit described previously, or 100% of compensation). You may elect to treat deductible XXX contributions as nondeductible contributions. If you make a nondeductible contribution to an XXX, you must report the amount of the nondeductible contribution to the IRS as a part of your tax return for the year using IRS Form 8606. You may withdraw an XXX contribution made for a calendar year any time before the due date (including extensions) for filing your federal income tax return for that year. If you do so, you must also withdraw the earnings attributable to that portion of the XXX and report the earnings as income for the year for which the contribution was made. Further, you must not take a deduction for the contributions you withdrew.

Nondeductible Contributions. You may make nondeductible contributions to your XXX IRA to the extent that deductible contributions are not allowed. The total of your deductible and nondeductible XXX IRA contributions cannot exceed your contribution limit (the lesser of the allowable contribution limit described previously, or 100% of compensation). You may elect to treat deductible XXX IRA contributions as nondeductible contributions. If you make a nondeductible contribution to an XXXIRA, you must report the amount of the nondeductible contribution to the IRS as a part of your tax return for the year using IRS Form 8606. You may withdraw an XXX IRA contribution made for a calendar year any time before the due date (including extensions) for filing your federal income tax return for that year. If you do so, you must also withdraw the earnings attributable to that portion of the XXX IRA and report the earnings as income for the year for which the contribution was made. Further, you must not take a deduction for the contributions you withdrew.