Common use of Qualified Distributions Clause in Contracts

Qualified Distributions. Qualified distributions from your Xxxx XXX (both the contributions and earnings) are not included in your income. A distribution is qualified only if it is made after the expiration of the five (5) year period beginning January 1 of the first year for which you made a contribution to any Xxxx IRA1 (a distribution which includes amounts converted from a traditional IRA or pretax contributions rolled over from a qualified plan is subject to a separate five (5) year period if the conversion or rollover is not the first contribution made to any of your Xxxx IRAs), and in addition at the time of the distribution at least one of the following must apply: • you have attained age 59½, or • it is used toward the expenses of a first-time home purchase subject to a lifetime limit of $10,000, or • made because you are disabled (within the meaning of section 72(m)(7) of the Internal Revenue Code) or • made to your beneficiary due to your death. 1 If your first contribution to a Xxxx XXX is made for the 2020 tax year, the five-year period is satisfied as of January 1, 2025. Please be aware we do not report a Qualified Distribution on form 1099 R if your Xxxx XXX with the program has been opened for less than five (5) years, however if you have satisfied the five (5) year period you may report it as a Qualified Distribution by filing IRS Form 5329 along with your income tax return to the IRS. Distribution for expenses of a first- time home purchase are not reported as a Qualified Distribution by your Xxxx XXX custodian, you are required to file IRS Form 5329 along with your income tax return to the IRS to report it as a Qualified Distribution.

Qualified Distributions. Qualified distributions from your Xxxx XXX (both the contributions and earnings) are not included in your income. A distribution is qualified only if it is made after the expiration of the five (5) year period beginning January 1 of the first year for which you made a contribution to any a ny Xxxx IRA1 (a distribution which includes amounts converted from a traditional IRA or pretax contributions rolled over from a qualified plan is subject to a separate five (5) year period pe riod if the conversion or rollover is not the first contribution made to any of your Xxxx IRAs), and in addition at the time of the distribution at least one of the following must apply: • you have attained age 59½, or • it is used toward the expenses of a first-time home purchase subject to a lifetime limit of $10,000, or • made because you are disabled (within the meaning of section 72(m)(7) of the Internal Revenue Code) or • made to your beneficiary due to your death. 1 If your first contribution to a Xxxx XXX is made for the 2020 tax year, the five-year period is satisfied as of January 1, 2025. Please be aware we do not report a Qualified Distribution on form 1099 R if your Xxxx XXX with the program has been opened for less than five (5) years, however if you have ha ve satisfied the five (5) year period you may report it as a Qualified Distribution by filing IRS Form 5329 along with your income tax return to the IRS. Distribution for expenses of a first- first-time home purchase are not reported as a Qualified Distribution by your Xxxx XXX custodian, you are required to file IRS Form 5329 along with your income tax return to the IRS to report it as a Qualified Distribution.