Taxation of Xxxx XXX Distributions. Any distribution, or portion of any distribution, which consists of the return of contributions you made to your Xxxx XXX is not subject to federal income tax. For federal income tax purposes, contributions are presumed to be withdrawn first, then conversion contributions, then earnings. Qualified Distribution - The earnings on your contributions will not be subject to federal income tax or penalty if the assets being withdrawn have been in your Xxxx XXX for at least five (5) years (from the first taxable year in which your initial contribution, including rollover or conversion contribution, was made to the Xxxx XXX) in addition to any one of the following:
Appears in 16 contracts
Samples: Custodial Account Agreement, Ira Application and Adoption Agreement, Adoption Agreement
