Federal penalty tax definition

Federal penalty tax means a 10 percent additional federal tax imposed on the earnings portion of certain nonqualified withdrawals.
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Federal penalty tax means the additional federal tax imposed on the earnings portion of certain nonqualified withdrawals.
Sample 1Sample 2Sample 3

Examples of Federal penalty tax in a sentence

  • Certain states have adopted provisions similar to Section 409A under state tax law, and for option holders subject to income taxation in such states, the total penalty tax could be up to 40% (a 20% Federal penalty tax and up to a 20% state penalty tax).

  • Withdrawals taken under the systematic withdrawal plan may be subject to the 10% Federal penalty tax on early withdrawals and to income taxes.

  • If you receive a payment before age 59-1/2 (55 if you have terminated employment), you also may have to pay an additional 10% Federal penalty tax for early withdrawal (plus any applicable state penalty tax for early withdrawal).

  • The individual acknowledges that this withdrawal may involve a 10% Federal penalty tax on the taxable amount withdrawn, in addition to the inclusion of the taxable amount in income for the year the withdrawal is received.

  • You may be subject to a 10% Federal penalty tax if you make withdrawals or surrender your annuity before age 59½.

  • Subject to certain exceptions, distributions from the Plan made before you attain age 59½ are subject to regular income taxes plus a 10% Federal penalty tax.

  • Finally, to the extent that the recipient of a Financial Hardship distribution has not attained age 59 1/2 prior to receipt of such distribution, then the payment will likely be subject to the ten percent (10%) Federal penalty tax on premature distributions under Code Section 72(t).

  • In no event will the Cash Surrender Value be less than the Minimum Guaranteed Contract Value or greater than the Accumulation Value.Tax Treatment – You may be subject to a 10% Federal penalty tax if you make withdrawals or surrender your annuity before age 59½.If this is a qualified annuity, all distributions may be taxable.

Related to Federal penalty tax

  • Federal poverty level means the poverty guidelines published annually in the federal register by the United States department of health and human services under its authority to revise the poverty line under section 673(2) of subtitle B of title VI of the omnibus budget reconciliation act of 1981, Public Law 97-35, 42 USC 9902.

  • Federal Bankruptcy Code means Title 11 of the United States Code entitled “Bankruptcy,” as amended and any successor statute thereto.

  • Use tax means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax.

  • Federal program means any of the following:

  • Medicare Levy Surcharge means an extra charge payable by high income earners beyond the standard Medicare Levy if they do not have qualifying private hospital insurance coverage. This charge is assessed as part of an individual or family’s annual tax return.

  • Title XIX means title XIX of the social security act, 42 USC 1396

  • Property Tax means the general property tax due and paid as set

  • Covered Servicemember means: 1) a current member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness; or 2) a veteran who is undergoing medical treatment, recuperation, or therapy, for a serious injury or illness and who was a member of the Armed Forces, including a member of the National Guard or Reserves, at any time during the period of five years preceding the date on which the veteran undergoes that medical treatment, recuperation, or therapy. (29 CFR § 825.102 & 825.122.)