Premature Distributions. In addition to any regular income tax that may be payable, distributions from your IRA xxxt occur before you reach age 59 1/2 (except in the event of disability, death, rollover, medical expenses in excess of 7.5% of adjusted gross income, medical insurance premiums in the event of unemployment or as a qualifying distribution of an excess contribution), will be assessed a 10% additional income tax on the amount distributed which is includible in your gross income. However, the additional 10% income tax will not be imposed if the distribution is one of a scheduled series of level payments to be made over your life or life expectancy or over the joint lives or joint life expectancies of you and your beneficiary. Amounts treated as distributions from the IRA xxxause of pledging the IRA xx described below, or prohibited transactions as described below, will also be considered premature distributions if they occur before you reach age 59 1/2 (assuming you are not disabled).
Premature Distributions. If you are under the age of 59½ and receive a nonqualified Xxxx XXX distribution, or if you receive a distribution of conversion amounts within the five-year period beginning with the year in which the conversion occurred, an additional tax of 10% will generally apply to the amount includible in income in the year of the distribution or conversion, unless the distribution is made on account of death, disability, a qualifying rollover, a transfer, the timely withdrawal of an excess contribution, or the distribution is part of a series of substantially equal periodic payments (at least annual payments) made over your life expectancy or the joint life expectancy of you and your beneficiary. Payments for medical expenses that exceed 7.5% of your AGI and distributions to pay for health insurance by an individual who has separated from employment and who has received unemployment compensation under a federal or state program for at least 12 weeks are also exempt from the 10% tax. Payments to cover certain qualified education expenses and distributions for first-home purchases (up to a lifetime maximum of $10,000) are exempt from the 10% tax. Distributions to satisfy a levy issued by the IRS, as well as distributions while in active military duty [see “Qualified Reservists Distribution” in Section 7(f) below] will also be exempt from the 10% tax.
Premature Distributions. If you are under age 59 1/2 and receive a distribution from your IRA account, a 10% additional income tax will apply to the taxable portion of the distribution unless the distribution is received due to death; disability; a series of substantially equal periodic payments at least annually over your life expectancy or the joint life expectancy of you and your designated beneficiary; medical expenses in excess of 7.5% (applies for 2017 and 2018) of your adjusted gross income; health insurance premiums paid by certain unemployed individuals; qualified acquisition costs of a first time homebuyer; qualified higher education expenses; a qualifying rollover distribution; the timely withdrawal of the principal amount of an excess or nondeductible contribution; due to an IRS levy; Qualified Hurricane Distributions; Qualified Wildfire Distributions and 2016 Disaster Distributions, or qualified reservist distributions. If you request a distribution in the form of a series of substantially equal payments and you modify the payments before 5 years have elapsed and before attaining age 59 1/2, the 10% additional income tax will apply retroactively to the year payments began through the year of such modification.
Premature Distributions. You can elect to receive distribution from your Account at any time. However, if you receive a distribution from your IRA before you attain the age of 59½, the distribution will be considered premature and subject to a 10% penalty tax on the taxable portion of the distributed amount unless one of the following exceptions applies:
Premature Distributions. Although you may elect to take distributions from your account at any time, if you are under age 59½ and receive a nonqualified Xxxx XXX distribution, an additional tax of 10 % will generally apply to the amount includible in income in the year of the distribution. If you are under age 59½ and receive a distribution of conversion amounts within the five‐year period beginning with the year in which the conversion occurred, an additional tax of 10% will generally apply to the amount of the distribution. The additional tax of 10% will generally not apply if a distribution is made on account of 1) you are totally and permanently disabled, 2) the timely withdrawal of an excess contribution, 3) a series of substantially equal periodic payments (at least annual payments) made over your life expectancy or the joint life expectancy of you and your beneficiary, 4) medical expenses which exceed 7.5% of your adjusted gross income, 5) paying medical insurance premiums during a period of unemployment, 6) certain qualified education expenses, 7) you use the distribution to buy, build, or rebuild a first home, 8) a levy issued by the IRS, 9) the distribution is a qualified reservist distribution, or 10) you are the beneficiary of a deceased IRA owner.
Premature Distributions. If you are under age 59 ½ and receive a “non- qualified” distribution from your Xxxx XXX, a 10% additional income tax will apply to the taxable portion (generally the earnings portion) of the distribu- tion unless the distribution is received due to death; disability; a qualifying rollover distribution; the timely withdrawal of the principal amount of an excess; substantially equal periodic payments; certain medical expenses; health insurance premiums paid by certain unemployed individuals; qualified higher education expenses; qualified first time homebuyer expenses; due
Premature Distributions. Before any distribution is made from the Custodial Account, except in the case of the Participant's death or disability (as defined in section 72(m) (7) of the Internal Revenue Code) or attainment of age 59 1/2, the Participant must furnish the Custodian with a declaration of his intentions as to the disposition of the amount to be distributed; however, the Custodian assumes no responsibility for the tax treatment of any distribution from the Custodial Account; such responsibility is solely that of the Participant ordering the distribution.
Premature Distributions. If you receive a payment from your XXX before you attain the age of 59 1/2, the payment will be considered a premature distribution, unless it falls under one of the following exceptions:
(1) distributions made due to your death;
(2) distributions made due to your disability;
(3) any distribution to an alternate payee under a qualified domestic relations order;
(4) a series of substantially equal periodic payments at least annually over a period not to exceed single or joint life expectancy;
(5) distributions made to pay for medical expenses that exceed 7.5% of your adjusted gross income; or
(6) distributions made to pay health insurance premiums by certain unemployed individuals;
(7) distributions made to pay for certain qualified higher education expenses;
(8) distributions made to pay for qualified first-time home purchases, not to exceed $10,000;
(9) a qualifying rollover distribution; or
(10) the timely withdrawal of the principal amount of an excess or nondeductible contribution. If you receive a premature distribution, the amount received is included in your gross income in the taxable year of receipt. In addition, your income tax liability for that tax year is increased by an amount equal to 10% of the premature distribution includible in your gross income. If your account is disqualified because you engaged in a prohibited transaction discussed above, the amount deemed distributed to you is included in your gross income. The premature distribution penalty tax (10% of the amount of the deemed distribution) will also apply if you had not attained the age of 59 1/2 before the beginning of such tax year. If you request a distribution in the form of a series of substantially equal payments, and you modify the payments before 5 years have elapsed and before attaining age 59 1/2, the 10% additional income tax will apply retroactively to the year payments began through the year of such modification.
Premature Distributions. If you receive distributions from your IRA before you reach age 59 1/2, and you are not disabled, you will be subject to a 10% penalty tax in addition to the ordinary income taxes you must pay on the distribution. The 10% penalty tax will also apply to any portion or all of your account which is treated as having been distributed to you because you engaged in a prohibited transaction or pledged your account as security for a loan. Proper rollovers into another IRA and proper withdrawal of excess contributions are not considered premature distributions. The penalty will also not apply if distribution begins before age 59 1/2 and is made in a series of substantially equal payments (not less frequently than annually) over your life expectancy or your and your designated beneficiary's joint life expectancy, and you do not attempt to alter the payment arrangement before the later of five years after payments begin or when you reach age 59 1/2, unless you die or become disabled before this time.
Premature Distributions. No part of a Participant's interest in the Custodial Account shall be distributed to such Participant prior to attaining the age of 59 1/2, except on account of disability, death of the Participant or rollover, unless such distribution is a part of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Participant or the joint lives (or joint life expectancies) of the Participant and his/her designated beneficiary. If a distribution is made prior to age 59 1/2, the Participant must notify the Custodian in writing of the intended disposition of such distribution.
