XXX TREATMENT OF INVESTMENTS AND WITHDRAWALS Sample Clauses

XXX TREATMENT OF INVESTMENTS AND WITHDRAWALS. General The following section is a summary of certain aspects of U.S. federal taxation of contributions to and withdrawals from Section 529 programs. It is not exhaustive and is not intended as tax or legal advice. It is based on our understanding of current law and regulatory interpretations relating to 529 plans generally and is meant to provide 529 plan participants with general background about the tax characteristics of these programs. Neither this Tax Treatment of Investments and Withdrawals section nor any other information provided throughout this Plan Description is intended to constitute, nor does it constitute, legal or tax advice. This Plan Description was developed to support the marketing of the USAA 529 Education Savings Plan and cannot be relied upon for purposes of avoiding the payment of federal tax penalties. You should consult your legal or tax adviser about the impact of these and other applicable rules on your individual situation. This tax and legal description are based on the Code, Proposed Regulations as of the date of this Plan Description, and other guidance issued by the IRS under Section 529. It is possible that Congress, the Treasury Department, the IRS, or federal or state courts may take action that will affect Section 529, the Proposed Regulations, or the tax treatment of 529 plan contributions, earnings, withdrawals, or the availability of state tax deductions. An individual state’s legislation also may affect the state tax treatment of the Plan for residents of that state. Federal Taxation of 529 Plan Contributions and Withdrawals Contributions to 529 plans are not deductible for federal income tax purposes. However, any earnings on contributions generally are not subject to federal income tax, until such earnings are withdrawn, if at all. Qualified withdrawals may be made federal income tax free. The earnings portion of non-qualified withdrawals from 529 plans will be subject to all applicable federal and state taxes including an additional 10 percent federal tax penalty on earnings. As described above on page 70, there are seven exceptions to the additional 10 percent federal tax penalty on earnings required under Section 529 of the Code:
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Related to XXX TREATMENT OF INVESTMENTS AND WITHDRAWALS

  • Treatment of Investments 1. Each Contracting Party shall grant to investors of the other Contracting Party treatment no less favorable than that it grants, in like circumstances, to its own investors or to investors of a third party with respect to management, maintenance, use, sale, or other disposition of investments in its territory, whichever is more favourable.

  • Treatment of Investment 1. Each Member State shall accord to covered investments of investors of any other Member State, fair and equitable treatment and full protection and security.

  • Commingling, Exchange and Investment of the Contributions 2.1. The Contributions shall be accounted for as a single trust fund and shall be kept separate and apart from the funds of the Bank. The Contributions may be commingled with other trust fund assets maintained by the Bank.

  • Deposits and Withdrawals Each person when depositing such securities or similar investments in or withdrawing them from a Securities Depository or when ordering their withdrawal and delivery from the safekeeping of the Custodian, shall comply with the requirements of Rule 17f-2(e).

  • Protection and Treatment of Investments 1. Each Contracting Party shall protect within its territory investments made in accordance with its laws and regulations by investors of the other Contracting Party and shall not impair by unreasonable or discriminatory measures the management, maintenance, use, enjoyment, extension, sale and should it so happen, liquidation of such investments.

  • 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.)

  • Distribution of Financial Contribution The financial contribution of the Funding Authority to the Project shall be distributed by the Coordinator according to: - the Consortium Plan - the approval of reports by the Funding Authority, and - the provisions of payment in Section 7.3. A Party shall be funded only for its tasks carried out in accordance with the Consortium Plan.

  • How Are Contributions to a Xxxxxxxxx Education Savings Account Reported for Federal Tax Purposes? Contributions to a Xxxxxxxxx Education Savings Account are reported on IRS Form 5498-ESA.

  • Repatriation of Investments and Returns (1) Each Contracting Party shall guarantee to the investors of the other Contracting Party the transfer out of its territory without delay in any freely convertible currency of:

  • Investment of Contributions At the direction of the Designated Beneficiary (or the direction of the Depositor or the Responsible Individual, whichever applies) the Custodian shall invest all contributions to the account and earnings thereon in investments acceptable to the Custodian, which may include marketable securities traded on a recognized exchange or "over the counter" (excluding any securities issued by the Custodian), covered call options, certificates of deposit, and other investments to which the Custodian consents, in such amounts as are specifically selected and specified in orders to the Custodian in such form as may be acceptable to the Custodian, without any duty to diversify and without regard to whether such property is authorized by the laws of any jurisdiction as a custodial account investment. The Custodian shall be responsible for the execution of such orders and for maintaining adequate records thereof. However, if any such orders are not received as required, or, if received, are unclear in the opinion of the Custodian, all or a portion of the contribution may be held uninvested without liability for loss of income or appreciation, and without liability for interest pending receipt of such orders or clarification, or the contribution may be returned. The Custodian may, but need not, establish programs under which cash deposits in excess of a minimum set by it will be periodically and automatically invested in interest-bearing investment funds. The Custodian shall have no duty other than to follow the written investment directions of the Designated Beneficiary (or the Depositor or Responsible Individual), and shall be under no duty to question said instructions and shall not be liable for any investment losses sustained by the Designated Beneficiary.

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