Qualifying Longevity Annuity Contract (QLAC) Sample Clauses

Qualifying Longevity Annuity Contract (QLAC). The fair market his/her share of your SIMPLE IRA and roll it over to an IRA of value of any QLAC you hold in this IRA is not included in his/her own, less that year's RMD.
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Qualifying Longevity Annuity Contract (QLAC). The terms of a QLAC you hold in this SIMPLE IRA may or may not provide a death benefit. The QLAC may permit death benefits in the form of a life annuity or a return of premiums. If your QLAC has a return of premium feature as a death benefit, the premium returned to your beneficiary is the RMD amount if your death occurs after the RBD. The return of premium amount is the difference between the premiums paid for the QLAC and the amounts paid to you. The return of premium amount must be distributed to the beneficiary by the end of the calendar year following the year of death. If your death occurs before the RBD, a return of premium death benefit will be added to your SIMPLE IRA and must be taken in accordance with the beneficiary rules described earlier. If the death benefit under the terms of the QLAC is a life annuity, your beneficiary will receive annuity payments for life. 10 percent penalty tax are distributions due to death, disability, first-time home purchase, eligible higher education expenses, medical expenses exceeding a certain percentage of adjusted gross income, health insurance premiums due to your extended unemployment, a series of substantially equal periodic payments, IRS levy, Xxxx XXX conversions, qualified birth or adoption distributions, and qualified reservist distributions. Properly completed rollovers and transfers are not subject to the 10 percent penalty tax. The 10 percent penalty tax is increased to 25 percent until two-year holding period has expired.
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Qualifying Longevity Annuity Contract (QLAC). The terms of a QLAC you hold in this IRA may or may not provide a death benefit. If your QLAC has a return of premium feature as a death benefit, the premium returned to your beneficiary(ies) is the RMD amount if your death occurs after the RBD. The return of premium amount is the difference between the premiums paid for the QLAC and the amounts paid to the IRA owner or spouse beneficiary (annuitant) if less. The return of premium amount must be distributed to the beneficiary by the end of the calendar year following the year of death. If your death occurs before the RBD, a return of premium death benefit will be added to your IRA and must be taken in accordance with the beneficiary rules described earlier. If the death benefit under the terms of the QLAC is a life annuity, your beneficiary will receive annuity payments for life. Federal Income Tax Status of Distributions.
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Qualifying Longevity Annuity Contract (QLAC). The fair market value of any QLAC you hold in this IRA is not included in determining your adjusted account balance when calculating your RMD. If however, you make an excess premium payment (premium payment that causes you to exceed the $125,000 (as adjusted) or 25% of balance limitations) and the excess premium is returned to the non-QLAC portion of your IRA after the valuation date to determine the next year's RMD, such amount is added to the adjusted account balance used for the year of the return to calculate your RMD. RMDs For Your Beneficiaries. Your beneficiaries will generally have until December 31 of the year following your death year to begin RMDs unless they elect the five-year rule. Exceptions exist for your surviving spouse and for any beneficiary who must distribute or chooses to distribute his/her share of your traditional IRA within a five-year period. If your death occurs on or after your RBD, your beneficiaries must withdraw any of your RMD that you had not received during the year of your death.
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Qualifying Longevity Annuity Contract (QLAC). A QLAC is necessary to cover any fees and expenses, taxes, or investment an investment vehicle and payout option we may choose to allow penalties. or purchase on your behalf. In summary, a QLAC is an annuity Our Resignation. We can resign at any time by providing you with contract purchased from an insurance company that provides a 8.17 30 days written notice prior to the resignation date, or within five delayed annuity payment starting date which will be after your days of our receipt of your written objection to an amendment. In the required beginning date but must begin no later than the first day event you materially breach this agreement, we can terminate this of the month following your 85th birthday. Premiums paid from agreement by providing you with five days prior written notice. your IRA to purchase a QLAC are limited to the lesser of: Upon our resignation, you must appoint a qualified successor $155,000 (subject to annual cost-of-living adjustments) or 25% of custodian or trustee. Your SIMPLE IRA assets will be transferred to your aggregated traditional (including SEP) and SIMPLE IRA the successor custodian or trustee once we have received appropriate balances. The $155,000 limit is also reduced by the amount of direction. Transfers will be completed within a reasonable time premium you paid from an employer-sponsored retirement plan following our resignation notice and the payment of your remaining (i.e., 401(k) plan) to purchase a QLAC. We may rely on your SIMPLE IRA fees or expenses. At the time of resignation we may representations that premiums paid for your QLAC(s) in other retain the sum necessary to cover any fees and expenses, taxes, or IRAs or employer plans do not exceed the $155,000 limit nor investment penalties. If you fail to provide us with acceptable exceed 25% of aggregated IRA balances. Please refer to the transfer direction within 30 days from the date of the notice, we can Disclosure Statement for additional QLAC information. transfer the assets to a successor custodian or trustee of our choice,
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Qualifying Longevity Annuity Contract (QLAC). An annuity contract that is purchased from an insurance company for a Participant and that satisfies the requirements under Treas. Reg. §1.401(a)(9)-6, Q&A-17.
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Related to Qualifying Longevity Annuity Contract (QLAC)

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You are also treated as an “active participant” if you make a voluntary or mandatory contribution to any type of plan, even if your employer makes no contribution to the plan. If you are not married (including a taxpayer filing under the “head of household” status), the following rules apply: • If you are not an “active participant” in an employer- sponsored retirement plan, you may make a contribution to a Traditional IRA (up to the contribution limits detailed in Section 3). • If you are single and you are an “active participant” in an employer-sponsored retirement plan, you may make a fully deductible contribution to a Traditional IRA (up to the contribution limits detailed in Section 3), but then the deductibility limits of a contribution are related to your Modified Adjusted Gross Income (AGI) as follows: Year Eligible to Make a Deductible Contribution if AGI is Less Than or Equal to: Eligible to Make a Partially Deductible Contribution if AGI is Between: Not Eligible to Make a Deductible Contribution if AGI is Over: 2020 $65,000 $65,000 - $75,000 $75,000 2021 & After - subject to COLA increases $66,000 $66,000 - $76,000 $76,000 If you are married, the following rules apply: • If you and your spouse file a joint tax return and neither you nor your spouse is an “active participant” in an employer-sponsored retirement plan, you and your spouse may make a fully deductible contribution to a Traditional IRA (up to the contribution limits detailed in Section 3). • If you and your spouse file a joint tax return and both you and your spouse are “active participants” in employer- sponsored retirement plans, you and your spouse may make fully deductible contributions to a Traditional IRA (up to the contribution limits detailed in Section 3), but then the deductibility limits of a contribution are as follows: Year Eligible to Make a Deductible Contribution if AGI is Less Than or Equal to: Eligible to Make a Partially Deductible Contribution if AGI is Between: Not Eligible to Make a Deductible Contribution if AGI is Over: 2020 $104,000 $104,000 - $124,000 $124,000 2021 & After - subject to COLA increases $105,000 $105,000 - $125,000 $125,000 • If you and your spouse file a joint tax return and only one of you is an “active participant” in an employer- sponsored retirement plan, special rules apply. 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Conversely, if you are an “active” participant” and your spouse is not, a contribution to your Traditional IRA will be deductible if your combined modified adjusted gross income does not exceed the amounts listed above. • If you are married and file a separate return, and neither you nor your spouse is an “active participant” in an employer-sponsored retirement plan, you may make a fully deductible contribution to a Traditional IRA (up to the contribution limits detailed in Section 3). If you are married, filing separately, and either you or your spouse is an “active participant” in an employer-sponsored retirement plan, you may not make a fully deductible contribution to a Traditional IRA. Please note that the deduction limits are not the same as the contribution limits. You can contribute to your Traditional IRA in any amount up to the contribution limits detailed in Section 3. 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