Common use of What If I Engage in a Prohibited Transaction Clause in Contracts

What If I Engage in a Prohibited Transaction. If you engage in a “prohibited transaction,” as defined in Section 4975 of the Internal Revenue Code, your account will be disqualified, and the entire balance in your account will be treated as if distributed to you and will be taxable to you as ordinary income. Examples of prohibited transactions are: a. the sale, exchange, or leasing of any property between you and your account; b. the lending of money or other extensions of credit between you and your account; or c. the furnishing of goods, services, or facilities between you and your account. If you are under age 59½, you may also be subject to the 10% penalty tax on early distributions in addition to ordinary income taxes.

What If I Engage in a Prohibited Transaction. If you engage in a “prohibited transaction,” as defined in Section 4975 of the Internal Revenue Code, your account will be disqualified, and the entire balance in your account will be treated as if distributed to you and will be taxable to you as ordinary income. Examples of prohibited transactions aretransactionsare: a. the sale, exchange, or leasing of any property between you and your account; b. the lending of money or other extensions of credit between you and your account; or c. the furnishing of goods, services, or facilities between you and your account. If you are under age 59½, you may also be subject to the 10% penalty tax on early distributions in addition to ordinary income taxes.

What If I Engage in a Prohibited Transaction. If you engage in a “prohibited transaction,” as defined in Section section 4975 of the Internal Revenue Code, your account will be disqualified, and the entire balance in your account will be treated as if distributed to you and will be taxable to you as ordinary income. Examples of prohibited transactions are: a. (a) the sale, exchange, or leasing of any property between you and your account;, b. (b) the lending of money or other extensions of credit between you and your account; or, c. (c) the furnishing of goods, services, or facilities between you and your account. If you are under age 59½591⁄2 , you may also be subject to the 10% penalty tax on early distributions in addition to ordinary income taxes.