Common use of Taxation of Distributions Clause in Contracts

Taxation of Distributions. The taxation of your Xxxx XXX your beneficiary is an eligible designated beneficiary who is your distribution, which is not rolled over, is dependent upon whether minor child, he/she must remove all assets from the Xxxx XXX by your distribution is a qualified distribution or nonqualified the tenth anniversary of the date the minor attains the age of distribution and is subject to the ordering rules. Xxxx XXX majority, even if such minor child initially chose to receive life distributions are generally not subject to federal income tax expectancy payments. withholding. You may be subject to state or local taxes on your Xxxx