Common use of Qualified Charitable Distributions Clause in Contracts

Qualified Charitable Distributions. If you have attained age 70½, you are eligible to make a “qualified charitable distribution” of up to $100,000 per year from all of your Traditional and Xxxx IRAs. A qualified charitable distribution is not subject to federal income tax and no deduction is allowed for the contribution. Qualified charitable distributions are allowed only for tax years 2006 and 2007 unless extended by Congress to later years. A qualified charitable distribution must be distributed directly from the IRA Trustee to a qualified charitable organization as defined by the Code. For assistance in determining to what extent you may be eligible to make a qualified charitable distribution from your IRA, consult your tax advisor. DISTRIBUTIONS TO YOUR BENEFICIARIES WHEN YOU DIE Designated Beneficiary. A "designated beneficiary" is determined based on the beneficiary(ies) designated as of the date of your death and who remains your beneficiary(ies) on September 30th of the calendar year following the calendar year of your death. If You Die Before RMDs Are Required To Begin. Generally, if you die before April 1 following the year you reach age 70½ and your designated beneficiary(ies) is an individual, he or she may elect a distribution method. Your beneficiary(ies) may elect to deplete the IRA by the end of the fifth calendar year following your death or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, he or she may delay the first distribution until December 31 of the year you would have attained age 70½ if later, or elect to treat your IRA as his or her own IRA.

Qualified Charitable Distributions. If you have attained age 70½, you are may be eligible to make a “qualified charitable distribution” of up to $100,000 per year from all of your Traditional and and/or Xxxx IRAs. A qualified charitable distribution is not subject to federal income tax and no tax deduction is allowed for the charitable contribution. Qualified charitable distributions are allowed only for tax years 2006 and 2007 through 2013 unless extended by Congress to later years. A qualified charitable distribution must be distributed directly from the IRA Trustee Custodian to a qualified charitable organization as defined by the Code. For assistance in determining to what extent whether you may be are eligible to make a qualified charitable distribution from your IRA, consult your tax advisor. DISTRIBUTIONS TO YOUR BENEFICIARIES WHEN YOU DIE Designated Beneficiary. A "designated beneficiary" is determined based on the beneficiary(ies) designated as of the date of your death and who remains your beneficiary(ies) on September 30th of the calendar year following the calendar year of your death. If You Die Before RMDs Are Required To Begin. Generally, if you die before April 1 following the year you reach age 70½ and your designated beneficiary(ies) is an individual, he or she may elect a distribution method. Your beneficiary(ies) may elect to deplete the IRA by the end of the fifth calendar year following your death or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, he or she may delay the first distribution until December 31 of the year you would have attained age 70½ if later, or elect to treat your IRA as his or her own IRA.

Qualified Charitable Distributions. If you have attained age 70½, you are eligible to make a “qualified charitable distribution” of up to $100,000 per year from all of your Traditional and Xxxx IRAs. A qualified charitable distribution is not subject to federal income tax and no deduction is allowed for the contribution. Qualified charitable distributions are allowed only for tax years 2006 and 2007 unless extended by Congress to later years. A qualified charitable distribution must be distributed directly from the IRA XXX Trustee to a qualified charitable organization as defined by the Code. For assistance in determining to what extent you may be eligible to make a qualified charitable distribution from your IRAXXX, consult your tax advisor. DISTRIBUTIONS TO YOUR BENEFICIARIES WHEN YOU DIE Designated Beneficiary. A "designated beneficiary" is determined based on the beneficiary(ies) designated as of the date of your death and who remains your beneficiary(ies) on September 30th of the calendar year following the calendar year of your death. If You Die Before RMDs Are Required To Begin. Generally, if you die before April 1 following the year you reach age 70½ and your designated beneficiary(ies) is an individual, he or she may elect a distribution method. Your beneficiary(ies) may elect to deplete the IRA XXX by the end of the fifth calendar year following your death or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, he or she may delay the first distribution until December 31 of the year you would have attained age 70½ if later, or elect to treat your IRA XXX as his or her own IRAXXX.

Qualified Charitable Distributions. If you have attained age 70½, you are may be eligible to make a “qualified charitable distribution” of up to $100,000 per year from all of your Traditional and and/or Xxxx IRAs. A qualified charitable distribution is not subject to federal income tax and no tax deduction is allowed for the charitable contribution. Qualified charitable distributions are allowed only for tax years 2006 and 2007 through 2013 unless extended by Congress to later years. A qualified charitable distribution must be distributed directly from the IRA Trustee Custodian to a qualified charitable organization as defined by the Code. For assistance in determining to what extent whether you may be are eligible to make a qualified charitable distribution from your IRA, consult your tax advisor. DISTRIBUTIONS TO YOUR BENEFICIARIES WHEN YOU DIE Any amounts remaining in your IRA at your death will be paid to your beneficiary(ies). When you die, the rules determining the distribution of your IRA balance depend on a number of factors. These include whether you had a "designated beneficiary," your relationship to the beneficiary (spouse or nonspouse) and whether you died before or after RMDs were required to begin. Designated Beneficiary. A "designated beneficiary" is determined based on the beneficiary(ies) designated as of the date of your death and who remains your beneficiary(ies) on September 30th of the calendar year following the calendar year of your death. If You Die Before RMDs Are Required To Begin. Generally, if you die before April 1 following the year you reach age 70½ and your designated beneficiary(ies) is an individual, he or she may elect a distribution method. Your beneficiary(ies) may elect to deplete the IRA by the end of the fifth calendar year following your death or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, he or she may delay the first distribution until December 31 of the year you would have attained age 70½ if later, or elect to treat your IRA as his or her own IRA. If your surviving spouse is the sole designated beneficiary of your IRA, he or she may elect to treat your IRA as his or her own IRA by redesignating your IRA as his or her own IRA, failing to take a required distribution as a beneficiary, or by making a contribution. Regardless of whether your spouse is the sole designated beneficiary, he or she may roll distributions from your IRA into his or her own IRA within 60 days of receipt. If your designated beneficiary is not an individual (e.g., a charity, your estate, etc.), your IRA must be distributed by the end of the fifth calendar year following your death. Generally, each beneficiary may elect the timing and manner regarding the distribution of his or her portion of the IRA. Elections must generally be made by December 31 of the year following your death. If timely elections are not made, your beneficiary is required to take distributions according to the applicable default provision. The default distribution option for designated beneficiaries who are individuals is the life expectancy option and the default distribution option for designated beneficiaries that are not individuals is the 5-year method. If your beneficiary(ies) does not withdraw the required amount within the prescribed timeframe, he or she may be subject to the 50% excess accumulation penalty tax on the amount that should have been withdrawn but was not distributed. If You Die On or After RMDs Are Required to Begin. If you die on or after April 1 following the year you attain age 70½, the designated beneficiary(ies) must continue taking distributions from your IRA. The longest timeframe for receiving payouts is over the remaining life expectancy of the applicable designated beneficiary or based on your remaining life expectancy factor, had you not died, whichever period is longer. Distributions must commence by December 31 of the calendar year following your death. If your designated beneficiary is not an individual (e.g., a charity, your estate, etc.), your IRA must be distributed using your single life expectancy (had you not died) reduced by one each year. If your surviving spouse is the sole designated beneficiary of your IRA, he or she may elect to treat your IRA as his or her own IRA by redesignating your IRA as his or her own IRA, failing to take a required distribution as a beneficiary, or by making a contribution. Regardless of whether your spouse is the sole beneficiary, he or she may roll distributions from your IRA into his or her own IRA within 60 days of receipt. TAX WITHHOLDING Distributions from your IRA, except certain transfers or any recharacterization, are subject to 10% Federal income tax withholding. You may elect in writing not to have withholding apply to your IRA distribution in most cases. If you elect not to have withholding applied, or if you do not have enough Federal income tax withheld from your IRA distribution, you may be responsible for payment of estimated tax. You may be subject to penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. In addition to Federal income tax withholding, distributions from IRAs may also be subject to state income tax withholding. CORRECTION OF EXCESS CONTRIBUTIONS Any amount you contribute for a tax year that exceeds the allowable contribution amount is an excess contribution and subject to a 6% penalty tax each year it remains in the IRA. You may avoid the penalty tax if you remove the excess contribution along with the net income attributable to the excess before your tax return due date, plus extensions. For assistance in calculating the net income attributable to an excess contribution using an IRS-approved method, refer to IRS Notice 2000- 39, IRS Publication 590 and your tax advisor. The net income must be included in your taxable income. If you are under age 59½ and do not qualify for an exception, the net income is also subject to the IRS 10% premature distribution penalty. File IRS Form 5329 to pay any penalty taxes. To correct an excess contribution after your tax filing due date (plus extensions), you may withdraw the excess amount (no earnings need to be withdrawn.) Alternatively, if you are eligible to contribute in a subsequent year, you may correct the excess amount by redesignating the amount to a subsequent year. To redesignate a contribution, you under contribute in a subsequent year and claim the original contribution amount when you file your income taxes for that subsequent year. The original amount is either deducted on Form 1040 or claimed as a nondeductible contribution on Form 8606. Regardless of which method you use to correct the excess after your tax return due date, plus extensions, the 6% penalty is required for each year it remained in the IRA.

Qualified Charitable Distributions. If you have attained age 70½, you are may be eligible to make a “qualified charitable distribution” of up to $100,000 per year from all of your Xxxx and/or Traditional and Xxxx IRAs. A qualified charitable distribution is not subject to federal income tax and no tax deduction is allowed for the charitable contribution. Qualified charitable distributions are allowed only for tax years 2006 and 2007 through 2013 unless extended by Congress to later years. A qualified charitable distribution must be distributed directly from the IRA Trustee XXX Custodian to a qualified charitable organization as defined by the Code. For assistance in determining to what extent whether you may be are eligible to make a qualified charitable distribution from your IRAXXX, consult your tax advisor. DISTRIBUTIONS TO YOUR BENEFICIARIES WHEN YOU DIE Designated BeneficiaryAny amounts remaining in your Xxxx XXX at your death will be paid to your beneficiary (ies). Distributions to your beneficiary (ies) within the 5-year holding period may be taxed as ordinary income. The 10% penalty tax for premature distributions does not apply to distributions due to death. The period of time over which your Xxxx XXX balance may be distributed to your beneficiary (ies) depends on whether you had a “designated beneficiary,” and your relationship to the beneficiary (spouse or non-spouse). A "“designated beneficiary" ” is determined based on the beneficiary(ies) designated as of the date of your death and who remains remain(s) your beneficiary(ies) on September 30th of the calendar year following the calendar year of your death. If You Die Before RMDs Are Required To BeginFive-Year Holding Period. Generally, if you die before April 1 following Beneficiaries must ensure the five-year you reach age 70½ and your designated beneficiary(ies) is an individual, he or she may elect a distribution method. Your beneficiary(ies) may elect to deplete the IRA by the end of the fifth calendar year following your death or holding period has been satisfied to receive payments based on qualified distributions. The years you were alive are credited toward the designated beneficiary(ies)’s life expectancyfive-year waiting period. If life expectancy payments are electedThat is, the payments must begin by December 31 five-year waiting period is not “re-set” upon your death. The period begins January 1 of the first calendar year following your death. Howeverfor which you made a regular contribution, if your surviving spouse is your sole designated beneficiary, he a conversion or she may delay the first distribution until December 31 of the year an employer plan rollover to any Xxxx XXX you would have attained age 70½ if later, or elect to treat your IRA as his or her own IRAown.

Qualified Charitable Distributions. If you have attained age 70½, you are may be eligible to make a “qualified charitable distribution” of up to $100,000 per year from all of your Traditional and and/or Xxxx IRAs. A qualified charitable distribution is not subject to federal income tax and no tax deduction is allowed for the charitable contribution. Qualified charitable distributions are allowed only for tax years 2006 and 2007 through 2013 unless extended by Congress to later years. A qualified charitable distribution must be distributed directly from the IRA Trustee XXX Custodian to a qualified charitable organization as defined by the Code. For assistance in determining to what extent whether you may be are eligible to make a qualified charitable distribution from your IRAXXX, consult your tax advisor. DISTRIBUTIONS TO YOUR BENEFICIARIES WHEN YOU DIE Any amounts remaining in your XXX at your death will be paid to your beneficiary(ies). When you die, the rules determining the distribution of your XXX balance depend on a number of factors. These include whether you had a "designated beneficiary," your relationship to the beneficiary (spouse or nonspouse) and whether you died before or after RMDs were required to begin. Designated Beneficiary. A "designated beneficiary" is determined based on the beneficiary(ies) designated as of the date of your death and who remains your beneficiary(ies) on September 30th of the calendar year following the calendar year of your death. If You Die Before RMDs Are Required To Begin. Generally, if you die before April 1 following the year you reach age 70½ and your designated beneficiary(ies) is an individual, he or she may elect a distribution method. Your beneficiary(ies) may elect to deplete the IRA XXX by the end of the fifth calendar year following your death or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, he or she may delay the first distribution until December 31 of the year you would have attained age 70½ if later, or elect to treat your IRA XXX as his or her own IRAXXX. If your surviving spouse is the sole designated beneficiary of your XXX, he or she may elect to treat your XXX as his or her own XXX by redesignating your XXX as his or her own XXX, failing to take a required distribution as a beneficiary, or by making a contribution. Regardless of whether your spouse is the sole designated beneficiary, he or she may roll distributions from your XXX into his or her own XXX within 60 days of receipt. If your designated beneficiary is not an individual (e.g., a charity, your estate, etc.), your XXX must be distributed by the end of the fifth calendar year following your death. Generally, each beneficiary may elect the timing and manner regarding the distribution of his or her portion of the XXX. Elections must generally be made by December 31 of the year following your death. If timely elections are not made, your beneficiary is required to take distributions according to the applicable default provision. The default distribution option for designated beneficiaries who are individuals is the life expectancy option and the default distribution option for designated beneficiaries that are not individuals is the 5-year method. If your beneficiary(ies) does not withdraw the required amount within the prescribed timeframe, he or she may be subject to the 50% excess accumulation penalty tax on the amount that should have been withdrawn but was not distributed. If You Die On or After RMDs Are Required to Begin. If you die on or after April 1 following the year you attain age 70½, the designated beneficiary(ies) must continue taking distributions from your XXX. The longest timeframe for receiving payouts is over the remaining life expectancy of the applicable designated beneficiary or based on your remaining life expectancy factor, had you not died, whichever period is longer. Distributions must commence by December 31 of the calendar year following your death. If your designated beneficiary is not an individual (e.g., a charity, your estate, etc.), your XXX must be distributed using your single life expectancy (had you not died) reduced by one each year. If your surviving spouse is the sole designated beneficiary of your XXX, he or she may elect to treat your XXX as his or her own XXX by redesignating your XXX as his or her own XXX, failing to take a required distribution as a beneficiary, or by making a contribution. Regardless of whether your spouse is the sole beneficiary, he or she may roll distributions from your XXX into his or her own XXX within 60 days of receipt. TAX WITHHOLDING Distributions from your XXX, except certain transfers or any recharacterization, are subject to 10% Federal income tax withholding. You may elect in writing not to have withholding apply to your XXX distribution in most cases. If you elect not to have withholding applied, or if you do not have enough Federal income tax withheld from your XXX distribution, you may be responsible for payment of estimated tax. You may be subject to penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient.. In addition to Federal income tax withholding, distributions from IRAs may also be subject to state income tax withholding. CORRECTION OF EXCESS CONTRIBUTIONS Any amount you contribute for a tax year that exceeds the allowable contribution amount is an excess contribution and subject to a 6% penalty tax each year it remains in the XXX. You may avoid the penalty tax if you remove the excess contribution along with the net income attributable to the excess before your tax return due date, plus extensions. For assistance in calculating the net income attributable to an excess contribution using an IRS-approved method, refer to IRS Notice 2000-39, IRS Publication 590 and your tax advisor. The net income must be included in your taxable income. If you are under age 59½ and do not qualify for an exception, the net income is also subject to the IRS 10% premature distribution penalty. File IRS Form 5329 to pay any penalty taxes. To correct an excess contribution after your tax filing due date (plus extensions), you may withdraw the excess amount (no earnings need to be withdrawn.) Alternatively, if you are eligible to contribute in a subsequent year, you may correct the excess amount by redesignating the amount to a subsequent year. To redesignate a contribution, you under contribute in a subsequent year and claim the original contribution amount when you file your income taxes for that subsequent year. The original amount is either deducted on Form 1040 or claimed as a nondeductible contribution on Form 8606. Regardless of which method you use to correct the excess after your tax return due date, plus extensions, the 6% penalty is required for each year it remained in the XXX.