Common use of Repayment of a Distribution for Terminal Illness Clause in Contracts

Repayment of a Distribution for Terminal Illness. You may take a distribution if you have been certified by a physician as having a terminal illness. Such a distribution may be repaid any time during the 3-year period beginning on the day after the date on which the distribution was received. Movement of Assets Between SIMPLE and Xxxx IRAs. SIMPLE IRA to Xxxx XXX Conversions. You may convert all or a portion of your SIMPLE IRA assets to a Xxxx XXX, including XXX Xxxx and SIMPLE Xxxx IRAs. Your conversion assets are subject to federal income tax. Your conversion must be reported to the IRS. You may not convert SIMPLE IRA assets to a Xxxx XXX until the two-year holding period has expired. The 10 percent early-distribution penalty tax does not apply to conversions. If you elect to convert your assets using a rollover transaction, the 60-day rule applies. The one per 1-year limitation does not apply to conversions.