Common use of Tax Credit for Contributions Clause in Contracts

Tax Credit for Contributions. You may be eligible to receive a tax credit for your Traditional IRA contributions. This credit will be allowed in addition to any tax deduction that may apply, and may not exceed $1,000 in a given year. You may be eligible for this tax credit if you are • age 18 or older as of the close of the taxable year, • not a dependent of another taxpayer, and • not a full-time student. The credit is based upon your income (see chart below), and will range from 0 to 50 percent of eligible contributions. In order to determine the amount of your contributions, add all of the contributions made to your Traditional IRA and reduce these contributions by any distributions that you have taken during the testing period. The testing period begins two years prior to the year for which the credit is sought and ends on the tax return due date (including extensions) for the year for which the credit is sought. In order to determine your tax credit, multiply the applicable percentage from the chart below by the amount of your contributions that do not exceed $2,000. 2020 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–39,000 $1–29,250 $1–19,500 50 $39,001–42,500 $29,251–31,875 $19,501–21,250 20 $42,501–65,000 $31,876–48,750 $21,251–32,500 10 Over $65,000 Over $48,750 Over $32,500 0 *Adjusted gross income (AGI) includes foreign earned income and If you make nondeductible contributions for a particular tax year, you must report the amount of the nondeductible contribution along with your income tax return using IRS Form 8606. Failure to file IRS Form 8606 will result in a $50 per failure penalty. 2019 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–38,500 $1–28,875 $1–19,250 50 $38,501–41,500 $28,876–31,125 $19,251–20,750 20 $41,501–64,000 $31,126–48,000 $20,751–32,000 10 Over $64,000 Over $48,000 Over $32,000 0 If you overstate the amount of designated nondeductible contributions for any taxable year, you are subject to a $100 penalty unless reasonable cause for the overstatement can be shown.

Tax Credit for Contributions. You may be eligible to receive a tax credit for your Traditional IRA contributions. This credit will be allowed in addition to any tax deduction that may apply, and may not exceed $1,000 in a given year. You may be eligible for this tax credit if you are • age 18 or older as of the close of the taxable year, • not a dependent of another taxpayer, and • not a full-time student. The credit is based upon your income (see chart below), and will range from 0 to 50 percent of eligible contributions. In order to determine the amount of your contributions, add all of the contributions made to your Traditional IRA and reduce these contributions by any distributions that you have taken during the testing period. The testing period begins two years prior to the year for which the credit is sought and ends on the tax return due date (including extensions) for the year for which the credit is sought. In order to determine your tax credit, multiply the applicable percentage from the chart below by the amount of your contributions that do not exceed $2,000. 2020 2017 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–39,000 1–37,000 $1–29,250 1–27,750 $1–19,500 1–18,500 50 $39,001–42,500 37,001–40,000 $29,251–31,875 27,751–30,000 $19,501–21,250 18,501–20,000 20 $42,501–65,000 40,001–62,000 $31,876–48,750 30,001–46,500 $21,251–32,500 20,001–31,000 10 Over $65,000 62,000 Over $48,750 46,500 Over $32,500 31,000 0 *Adjusted gross income (AGI) includes foreign earned income and If you make nondeductible contributions for a particular tax year, you must report the amount of the nondeductible contribution along with your income tax return using IRS Form 8606. Failure to file IRS Form 8606 will result in a $50 per failure penalty. 2019 2018 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–38,500 1–38,000 $1–28,875 1–28,500 $1–19,250 1–19,000 50 $38,501–41,500 38,001–41,000 $28,876–31,125 28,501–30,750 $19,251–20,750 19,001–20,500 20 $41,501–64,000 41,001–63,000 $31,126–48,000 30,751–47,250 $20,751–32,000 20,501–31,500 10 Over $64,000 63,000 Over $48,000 47,250 Over $32,000 31,500 0 If you overstate the amount of designated nondeductible contributions for any taxable year*Adjusted gross income (AGI) includes foreign earned income and income from Guam, you America Samoa, North Mariana Islands, and Puerto Rico. AGI limits are subject to a $100 penalty unless reasonable cause for the overstatement can be showncost-of-living adjustments each year.

Tax Credit for Contributions. You may be eligible to receive a tax credit for your Traditional IRA contributions. This credit will be allowed in addition to any tax deduction that may apply, and may not exceed $1,000 in a given year. You may be eligible for this tax credit if you are • age 18 or older as of the close of the taxable year, • not a dependent of another taxpayer, and • not a full-time student. The credit is based upon your income (see chart below), and will range from 0 to 50 percent of eligible contributions. In order to determine the amount of your contributions, add all of the contributions made to your Traditional IRA and reduce these contributions by any distributions that you have taken during the testing period. The testing period begins two years prior to the year for which the credit is sought and ends on the tax return due date (including extensions) for the year for which the credit is sought. In order to determine your tax credit, multiply the applicable percentage from the chart below by the amount of your contributions that do not exceed $2,000. 2020 2017 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–39,000 1–37,000 $1–29,250 1–27,750 $1–19,500 1–18,500 50 $39,001–42,500 37,001–40,000 $29,251–31,875 27,751–30,000 $19,501–21,250 18,501–20,000 20 $42,501–65,000 40,001–62,000 $31,876–48,750 30,001–46,500 $21,251–32,500 20,001–31,000 10 Over $65,000 62,000 Over $48,750 46,500 Over $32,500 31,000 0 *Adjusted gross income (AGI) includes foreign earned income and If you make nondeductible contributions for a particular tax year, you must report the amount of the nondeductible contribution along with your income tax return using IRS Form 8606. Failure to file IRS Form 8606 will result in a $50 per failure penalty. 2019 2018 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–38,500 1–38,000 $1–28,875 1–28,500 $1–19,250 1–19,000 50 $38,501–41,500 38,001–41,000 $28,876–31,125 28,501–30,750 $19,251–20,750 19,001–20,500 20 $41,501–64,000 41,001–63,000 $31,126–48,000 30,751–47,250 $20,751–32,000 20,501–31,500 10 Over $64,000 63,000 Over $48,000 47,250 Over $32,000 31,500 0 If you overstate the amount of designated nondeductible contributions for any taxable year, you are subject to a $100 penalty unless reasonable cause for the overstatement can be shown.*Adjusted gross income (AGI) includes foreign earned income and

Tax Credit for Contributions. You may be eligible to receive a tax credit for your Traditional IRA contributions. This credit will be allowed in addition to any tax deduction that may apply, and may not exceed $1,000 in a given year. You may be eligible for this tax credit if you are • age 18 or older as of the close of the taxable year, • not a dependent of another taxpayer, and • not a full-time full‐time student. The credit is based upon your income (see chart below), and will range from 0 to 50 percent of eligible contributions. In order to determine the amount of your contributions, add all of the contributions made to your Traditional IRA and reduce these contributions by any distributions that you have taken during the testing period. The testing period begins two years prior to the year for which the credit is sought and ends on the tax return due date (including extensions) for the year for which the credit is sought. In order to determine your tax credit, multiply the applicable percentage from the chart below by the amount of your contributions that do not exceed $2,000. 2020 2017 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–39,000 1–37,000 $1–29,250 1–27,750 $1–19,500 1–18,500 50 $39,001–42,500 37,001–40,000 $29,251–31,875 27,751–30,000 $19,501–21,250 18,501–20,000 20 $42,501–65,000 40,001–62,000 $31,876–48,750 30,001–46,500 $21,251–32,500 20,001–31,000 10 Over $65,000 62,000 Over $48,750 46,500 Over $32,500 31,000 0 *Adjusted gross income (AGI) includes foreign earned income and If you make nondeductible contributions for a particular tax year, you must report the amount of the nondeductible contribution along with your income tax return using IRS Form 8606. Failure to file IRS Form 8606 will result in a $50 per failure penalty. 2019 2018 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–38,500 1–38,000 $1–28,875 1–28,500 $1–19,250 1–19,000 50 $38,501–41,500 38,001–41,000 $28,876–31,125 28,501–30,750 $19,251–20,750 19,001–20,500 20 $41,501–64,000 41,001–63,000 $31,126–48,000 30,751–47,250 $20,751–32,000 20,501–31,500 10 Over $64,000 63,000 Over $48,000 47,250 Over $32,000 31,500 0 If you overstate the amount of designated nondeductible contributions for any taxable year, you are subject to a $100 penalty unless reasonable cause for the overstatement can be shown.*Adjusted gross income (AGI) includes foreign earned income and

Tax Credit for Contributions. You may be eligible to receive a tax credit for your Traditional IRA contributions. This credit will be allowed in addition to any tax deduction that may apply, and may not exceed $1,000 in a given year. You may be eligible for this tax credit if you are • age 18 or older as of the close of the taxable year, • not a dependent of another taxpayer, and • not a full-time full‐time student. The credit is based upon your income (see chart below), and will range from 0 to 50 percent of eligible contributions. In order to determine the amount of your contributions, add all of the contributions made to your Traditional IRA and reduce these contributions by any distributions that you have taken during the testing period. The testing period begins two years prior to the year for which the credit is sought and ends on the tax return due date (including extensions) for the year for which the credit is sought. In order to determine your tax credit, multiply the applicable percentage from the chart below by the amount of your contributions that do not exceed $2,000. 2020 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–39,000 $1–29,250 $1–19,500 50 $39,001–42,500 $29,251–31,875 $19,501–21,250 20 $42,501–65,000 $31,876–48,750 $21,251–32,500 10 Over $65,000 Over $48,750 Over $32,500 0 *Adjusted gross income (AGI) includes foreign earned income and If you make nondeductible contributions for a particular tax year, you must report the amount of the nondeductible contribution along with your income tax return using IRS Form 8606. Failure to file IRS Form 8606 will result in a $50 per failure penalty. 2019 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–38,500 $1–28,875 $1–19,250 50 $38,501–41,500 $28,876–31,125 $19,251–20,750 20 $41,501–64,000 $31,126–48,000 $20,751–32,000 10 Over $64,000 Over $48,000 Over $32,000 0 If you overstate the amount of designated nondeductible contributions for any taxable year, you are subject to a $100 penalty unless reasonable cause for the overstatement can be shown.. 2020 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–39,000 $1–29,250 $1–19,500 50 $39,001–42,500 $29,251–31,875 $19,501–21,250 20 $42,501–65,000 $31,876–48,750 $21,251–32,500 10 Over $65,000 Over $48,750 Over $32,500 0 G. Taxation of Distributions – The taxation of IRA distributions depends on whether or not you have ever made nondeductible IRA contributions. If you have only made deductible contributions, all IRA distribution amounts will be included in income. If you have ever made nondeductible contributions to any IRA, the following formula must be used to determine the amount of any IRA distribution excluded from income. (Aggregate Nondeductible Contributions) x (Amount Withdrawn) income from Guam, America Samoa, North Mariana Islands, and Puerto Rico. AGI limits are subject to cost‐of‐living adjustments each year. Aggregate IRA Balance = Amount Excluded From Income

Tax Credit for Contributions. You may be eligible to receive a tax credit for your Traditional IRA contributions. This credit will be allowed in addition to any tax deduction that may apply, and may not exceed $1,000 in a given year. You may be eligible for this tax credit if you are • age 18 or older as of the close of the taxable year, • not a dependent of another taxpayer, and • not a full-time student. The credit is based upon your income (see chart below), and will range from 0 to 50 percent of eligible contributions. In order to determine the amount of your contributions, add all of the contributions made to your Traditional IRA and reduce these contributions by any distributions that you have taken during the testing period. The testing period begins two years prior to the year for which the credit is sought and ends on the tax return due date (including extensions) for the year for which the credit is sought. In order to determine your tax credit, multiply the applicable percentage from the chart below by the amount of your contributions that do not exceed $2,000. 2020 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–39,000 $1–29,250 $1–19,500 50 $39,001–42,500 $29,251–31,875 $19,501–21,250 20 $42,501–65,000 $31,876–48,750 $21,251–32,500 10 Over $65,000 Over $48,750 Over $32,500 0 *Adjusted gross income (AGI) includes foreign earned income and If you make nondeductible contributions for a particular tax year, you must report the amount of the nondeductible contribution along with your income tax return using IRS Form 8606. Failure to file IRS Form 8606 will result in a $50 per failure penalty. 2019 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–38,500 $1–28,875 $1–19,250 50 $38,501–41,500 $28,876–31,125 $19,251–20,750 20 $41,501–64,000 $31,126–48,000 $20,751–32,000 10 Over $64,000 Over $48,000 Over $32,000 0 If you overstate the amount of designated nondeductible contributions for any taxable year, you are subject to a $100 penalty unless reasonable cause for the overstatement can be shown.. 2020 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–39,000 $1–29,250 $1–19,500 50 $39,001–42,500 $29,251–31,875 $19,501–21,250 20 $42,501–65,000 $31,876–48,750 $21,251–32,500 10 Over $65,000 Over $48,750 Over $32,500 0 G. Taxation of Distributions – The taxation of IRA distributions depends on whether or not you have ever made nondeductible IRA contributions. If you have only made deductible contributions, all IRA distribution amounts will be included in income. If you have ever made nondeductible contributions to any IRA, the following formula must be used to determine the amount of any IRA distribution excluded from income. (Aggregate Nondeductible Contributions) x (Amount Withdrawn) income from Guam, America Samoa, North Mariana Islands, and Puerto Rico. AGI limits are subject to cost-of-living adjustments each year. Aggregate IRA Balance = Amount Excluded From Income