Federal Qualified Withdrawal definition

Federal Qualified Withdrawal means a withdrawal from an Account that is used to pay the Federal Qualified Higher Education Expenses of the Beneficiary. A Federal Qualified Withdrawal generally is not subject to federal or Illinois state income tax, but a Federal Qualified Withdrawal that is also an Illinois Nonqualified Withdrawal may trigger recapture of any Illinois income tax deduction claimed for Contributions to the Account. Fee Structure A or C means the fee structure selected by Account Owners who establish an Account with the involvement of a broker or financial advisor as described in the Participation Agreement. Fee Structure E means the Fee Structure available to Account Owners contributing through an employer-sponsored option. Fee Structure F means the fee structure available only to Account Owners who establish an Account through registered investment advisors or other financial advisors who are not compensated through commissions, but rather through payment of an hourly fee or a percentage of assets under management. Fee Structure G is closed to new investors. Only Account Owners who purchased Units prior to July 23, 2007 and whose broker of record remains Citigroup Global Market Inc. or ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ LLC are eligible to purchase Class G Units on or after July 23, 2007 in existing Accounts. If an Account Owner’s broker of record changes, that Account Owner is no longer eligible to hold Class G Units in his or her Account. Fee Structure H is closed to new investors. Only Account Owners who purchased Units prior to July 23, 2007 through brokers other than Citigroup Global Market Inc.’s ▇▇▇▇▇ ▇▇▇▇▇▇ division may purchase Class H Units on or after July 23, 2007 in existing accounts. Illinois Nonqualified Withdrawal means any withdrawal from an Account to the extent it is not (i) used for Illinois Qualified Expenses for the Beneficiary, (ii) resulting from the Beneficiary’s death or disability, (iii) a rollover to another account in the Pool or

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Federal Qualified Withdrawal. A withdrawal from an Account that is used to pay Qualified Higher Education Expenses, K-12 Tuition Expenses (up to

Federal Qualified Withdrawal means a withdrawal from an account that is used to pay the Federal Qualified Higher Education Expenses of the Beneficiary.

Examples of Federal Qualified Withdrawal in a sentence

Under current law, federal income taxes on investment earnings are deferred while in an Account, and such earnings are free from federal and Illinois state income tax if they are distributed as part of a Federal Qualified Withdrawal.
The Account Owner or Beneficiary is responsible for determining whether a distribution from an Account is a Federal Qualified Withdrawal, a Federal Nonqualified Withdrawal and/or an Illinois Nonqualified Withdrawal and for paying any applicable taxes or penalties.
The account owner or Beneficiary, not the Plan nor the Program Manager, is solely responsible for determining if a withdrawal is Federal Qualified Withdrawal or Federal Non-Qualified Withdrawal and whether a federal penalty applies.
Federal Qualified Withdrawals from your Account are generally free from federal and Illinois state income tax, but a Federal Qualified Withdrawal that is also an Illinois Nonqualified Withdrawal may trigger recapture of any Illinois income tax deduction claimed for Contributions to the Account.
A Federal Qualified Withdrawal may be distributed as follows: Because money in your account may be withdrawn free from federal income tax only if it is used to pay the Beneficiary’s Federal Qualified Higher Education Expenses, you should retain documentation of all of the Beneficiary’s Federal Qualified Higher Education Expenses for your records.
Therefore, if a withdrawal is made for such purposes, although it is a Federal Qualified Withdrawal, it will be treated as a Nebraska Non-Qualified Withdrawal and may result in the recapture of a previously claimed Nebraska state income tax deduction, and the earnings portion will be subject to Nebraska state income tax.
There are three main Nebraska income tax advantages to investing in the Plan: A Federal Qualified Withdrawal is a withdrawal that is solely used to pay the Federal Qualified Higher Education Expenses of the Beneficiary.
If a Federal Qualified Withdrawal is made from an account, no portion of the distribution is includable in the federal gross income of the account owner or the Beneficiary.
There are two primary federal income tax advantages to investing in a 529 qualified tuition program, such as the Plan: The federal tax treatment of a withdrawal from an account will vary depending on the nature of the withdrawal, that is, whether the withdrawal is a Federal Qualified Withdrawal or a Federal Non-Qualified Withdrawal.
If a Federal Qualified Withdrawal is also used for Nebraska Qualified Expenses, no portion of the distribution is subject to state income tax.

More Definitions of Federal Qualified Withdrawal

Federal Qualified Withdrawal means a withdrawal from an account that is used to pay the Federal Qualified Higher Education Expenses of the Beneficiary. FINRA means the Financial Industry Regulatory Authority, Inc. Investment Option means any of the Investment Options available under the Plan. An account owner must designate an Investment Option or Options on the Enrollment Form for each account. The Plan currently has Age-Based and Static Investment Options. See “Part 6 – Investment Options Overview.”

Federal Qualified Withdrawal means a withdrawal from an account that is used to pay the Federal Qualified Higher Education Expenses of the Beneficiary. FINRA means the Financial Industry Regulatory Authority, Inc. Individual Fund Investment Option means an Investment Option that invests in a single Underlying Investment. Account owners do not own shares of the Underlying Investment but, rather, own an interest in the Investment Option means any of the Investment Options available under the Plan. An account owner must designate an Investment Option or Options on the Enrollment Form for each account. The Plan currently has Age-Based, Static and Individual Fund Investment Options. See “Part 6 – Investment Options Overview.”