Qualified Withdrawals and the Additional Tax. General — A “Non-Qualified Withdrawal” is any withdrawal from an Account other than a Qualified Withdrawal or a qualifying rollover. The earnings portion of a Non-Qualified Withdrawal is subject to federal and applicable state and/or local income tax and, in many cases, a 10% additional federal tax on earnings. A Qualified Withdrawal for federal tax purposes may be a Non- Qualified Withdrawal for state tax purposes, depending on state law.
Appears in 4 contracts
Samples: Participation Agreement, Participation Agreement, Participation Agreement
