Common use of Constructive Receipt Clause in Contracts

Constructive Receipt. In the event that it is determined by the IRS that the retirement benefit listed in this Article is constructively received by the individual employee in the year that the employee first becomes eligible to receive the benefit (and not in the year that the person retires), the School District agrees to the following: Subdivision 1. The School District will withhold from the imputed income and transmit to the IRS the amount necessary to comply with normal tax withholding standards under IRS rules in the year that the income is constructively received. Subdivision 2. The remaining portion of the retirement benefit will be paid out in accordance with the terms of this Agreement.

Constructive Receipt. In the event that it is determined by the IRS that the retirement benefit listed in this Article is constructively received by the individual employee in the year that the employee first becomes eligible to receive the benefit (and not in the year that the person retires), the School District agrees to the following: Subdivision 1. The School District employer will withhold from the imputed income and transmit to the IRS the amount necessary to comply with normal tax withholding standards under IRS rules in the year that the income is constructively received. Subdivision 2. The remaining portion of the retirement benefit will be paid out in accordance with the terms of this Agreement.