Common use of Nonqualified Distributions Clause in Contracts

Nonqualified Distributions. If you do not meet the requirements for a qualified distribution, any earnings you withdraw from your Xxxx XXX will be included in your gross income and, if you are under age 59½, may be subject to an early distribution penalty. Nonqualified distribution of conversion contributions and rollover contributions from employer-sponsored retirement plans distributed within a five-year period beginning with the year in which the conversion or employer-sponsored plan rollover occurred may be subject to an early distribution penalty. When you take a distribution from your Xxxx, the amounts are treated as coming from the following categories, in the following order.

Nonqualified Distributions. If you do not meet the requirements for a qualified distribution, any earnings you withdraw from your Xxxx XXX will be included in your gross income and, if you are under age 59½59½ (or meet certain other exceptions), may be subject to an early distribution penalty. Nonqualified distribution of conversion contributions and rollover contributions from employer-sponsored retirement plans distributed within a five-year period beginning with the year in which the conversion or employer-sponsored plan rollover occurred may be subject to an early distribution penalty. When you take a distribution from your Xxxx, the amounts are treated as coming from the following categories, in the following orderorder (disregarding, for these purposes, rollover contributions from other Xxxx IRAs).