Traditional IRA and Xxxx XXX Recharacterizations Sample Clauses

Traditional IRA and Xxxx XXX Recharacterizations. You may you are not an eligible individual for the entire testing period, unless recharacterize, or choose to treat all or a portion of your regular you die or become disabled, the amount of the distribution made (including catch-up) traditional IRA contribution as a regular Xxxx under this provision will be includable in gross income for the tax IRA contribution. Similarly, you may recharacterize your regular year of the month you are not an eligible individual, and is subject (including catch-up) Xxxx XXX contribution as a regular traditional to a 10 percent penalty tax.
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Traditional IRA and Xxxx XXX Recharacterizations. You may recharacterize, or choose to treat all or a portion of your regular (including catch-up) traditional IRA contribution as a regular Xxxx XXX contribution. Similarly, you may recharacterize all or a portion of your regular (including catch-up) Xxxx XXX contribution as a regular traditional IRA contribution. A recharacterization election is irrevocable. You must complete a recharacterization no later than your federal income tax-filing due date, including extensions, for the year you make the initial contribution. If you timely file your federal income tax return, you may still recharacterize your contribution as late as October 15 for calendar year filers. Recharacterizations must occur by transfer, which means that the assets, adjusted for gains and losses on the recharacterized amount, must be transferred into another IRA. The recharacterized contribution is treated as though you deposited it into the second IRA on the same day you actually deposited it in the first IRA. Recharacterization transactions are reported to the IRS. The election to recharacterize may be completed on your behalf after your death. A written notice of recharacterization is required for recharacterization transactions. Movement of Other Assets to Xxxx IRAs. 1. Conversions from SIMPLE IRAs. You may not convert assets from a SIMPLE IRA to a Xxxx XXX until two years have passed since the date on which you first participated in an employer's SIMPLE IRA plan, which is the initial contribution date. If you participated in SIMPLE IRA plans of different employers, the initial contribution date and two-year period are determined separately for SIMPLE IRA assets from each employer.
Sample 1
Traditional IRA and Xxxx XXX Recharacterizations. You may recharacterize, or choose to treat all or a portion of your regular (including catch-up) traditional IRA contribution as a regular Xxxx XXX contribution. Similarly, you may recharacterize all or a portion of your regular (including catch-up) Xxxx XXX contribution as a regular traditional IRA contribution. You may cancel a conversion through a recharacterization of all or a portion of the amount converted from a traditional IRA to a Xxxx XXX. You may also recharacterize the amount rolled or directly rolled over to a Xxxx XXX from an eligible retirement plan, or other recharacterization, as provided by law. A recharacterization election is irrevocable. You must complete a recharacterization no later than your federal income tax filing due date, including extensions, for the year you make the initial contribution. If you timely file your federal income tax return, you may still recharacterize as late as October 15 for calendar year filers. Recharacterizations must occur by transfer, which means that the assets, adjusted for gains and losses on the recharacterized amount, must be transferred into another IRA. The recharacterized contribution is treated as though you deposited it into the second IRA on the same day you actually deposited it in the first IRA. Recharacterization transactions are reported to the IRS. The election to recharacterize may be completed on your behalf after your death. A written notice of recharacterization, as defined in Treasury Regulation 1.408A-5, Q&A 6(a) is required for recharacterization transactions.
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Traditional IRA and Xxxx XXX Recharacterizations. You may recharacterize, or choose to treat all or a portion of your regular (including catch-up) traditional IRA contribution as a regular Xxxx XXX contribution. Similarly, you may recharacterize your regular (including catch-up) Xxxx XXX contribution as a regular traditional IRA contribution. A recharacterization election is irrevocable. You must complete a recharacterization no later than your federal income tax-filing due date, including extensions, for the year you make the
Sample 1
Traditional IRA and Xxxx XXX Recharacterizations. You may income taxes on distributions. You may make up the 20 percent recharacterize, or choose to treat all or a portion of your regular withholding from your own funds at the time you deposit the (including catch-up) traditional IRA contribution as a regular Xxxx distribution into a Xxxx XXX. If you are younger than age 59 1/2, IRA contribution. Similarly, you may recharacterize all or a portion you are subject to a 10 percent early-distribution penalty tax on of your regular (including catch-up) Xxxx XXX contribution as a the taxable amount of the distribution that is not rolled over, regular traditional IRA contribution. A recharacterization election is unless a penalty tax exception applies. Your eligible distribution irrevocable. You must complete a recharacterization no later than may be contributed to a Xxxx XXX during the 60 days following your federal income tax-filing due date, including extensions, for the your receipt of a plan distribution. There may be exceptions to year you make the initial contribution. If you timely file your federal completing the rollover within 60 days. For example, exceptions income tax return, you may still recharacterize your contribution as for making a late rollover are available for rolling over the return late as October 15 for calendar year filers. Recharacterizations must of an improper tax levy as well as for rolling over qualified plan occur by transfer, which means that the assets, adjusted for gains and loan offset amounts. Generally, these exceptions permit amounts
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Related to Traditional IRA and Xxxx XXX Recharacterizations

  • How Are Contributions to a Xxxx XXX Reported for Federal Tax Purposes You must file Form 5329 with the IRS to report and remit any penalties or excise taxes. In addition, certain contribution and distribution information must be reported to the IRS on Form 8606 (as an attachment to your federal income tax return.)

  • How Are Distributions from a Xxxx XXX Taxed for Federal Income Tax Purposes Amounts distributed to you are generally excludable from your gross income if they (i) are paid after you attain age 59½, (ii) are made to your beneficiary after your death, (iii) are attributable to your becoming disabled, (iv) subject to various limits, the distribution is used to purchase a first home or, in limited cases, a second or subsequent home for you, your spouse, or you or your spouse’s grandchild or ancestor, or (v) are rolled over to another Xxxx XXX. Regardless of the foregoing, if you or your beneficiary receives a distribution within the five-taxable-year period starting with the beginning of the year to which your initial contribution to your Xxxx XXX applies, the earnings on your account are includable in taxable income. In addition, if you roll over (convert) funds to your Xxxx XXX from another individual retirement plan (such as a Traditional IRA or another Xxxx XXX into which amounts were rolled from a Traditional IRA), the portion of a distribution attributable to rolled-over amounts which exceeds the amounts taxed in connection with the conversion to a Xxxx XXX is includable in income (and subject to penalty tax) if it is distributed prior to the end of the five-tax-year period beginning with the start of the tax year during which the rollover occurred. An amount taxed in connection with a rollover is subject to a 10% penalty tax if it is distributed before the end of the five-tax-year period. As noted above, the five-year holding period requirement is measured from the beginning of the five-taxable-year period beginning with the first taxable year for which you (or your spouse) made a contribution to a Xxxx XXX on your behalf. Previously, the law required that a separate five-year holding period apply to regular Xxxx XXX contributions and to amounts contributed to a Xxxx XXX as a result of the rollover or conversion of a Traditional IRA. Even though the holding period requirement has been simplified, it may still be advisable to keep regular Xxxx XXX contributions and rollover/ conversion Xxxx XXX contributions in separate accounts. This is because amounts withdrawn from a rollover/conversion Xxxx XXX within five years of the rollover/conversion may be subject to a 10% penalty tax. As noted above, a distribution from a Xxxx XXX that complies with all of the distribution and holding period requirements is excludable from your gross income. If you receive a distribution from a Xxxx XXX that does not comply with these rules, the part of the distribution that constitutes a return of your contributions will not be included in your taxable income, and the portion that represents earnings will be includable in your income. For this purpose, certain ordering rules apply. Amounts distributed to you are treated as coming first from your non-deductible contributions. The next portion of a distribution is treated as coming from amounts which have been rolled over (converted) from any non-Xxxx IRAs in the order such amounts were rolled over. Any remaining amounts (including all earnings) are distributed last. Any portion of your distribution which does not meet the criteria for exclusion from gross income may also be subject to a 10% penalty tax. Note that to the extent a distribution would be taxable to you, neither you nor anyone else can qualify for capital gains treatment for amounts distributed from your account. Similarly, you are not entitled to the special five- or ten- year averaging rule for lump-sum distributions that may be available to persons receiving distributions from certain other types of retirement plans. Rather, the taxable portion of any distribution is taxed to you as ordinary income. Your Xxxx XXX is not subject to taxes on excess distributions or on excess amounts remaining in your account as of your date of death. You must indicate on your distribution request whether federal income taxes should be withheld on a distribution from a Xxxx XXX. If you do not make a withholding election, we will not withhold federal or state income tax. Note that, for federal tax purposes (for example, for purposes of applying the ordering rules described above), Xxxx IRAs are considered separately from Traditional IRAs.

  • What Forms of Distribution Are Available from a Xxxxxxxxx Education Savings Account Distributions may be made as a lump sum of the entire account, or distributions of a portion of the account may be made as requested.

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