Common use of Excess Contributions Clause in Contracts

Excess Contributions. Amounts contributed to your Xxxx XXX in excess of the allowable limit will be subject to a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penalty.

Excess Contributions. Amounts contributed to your Xxxx XXX traditional IRA in excess of the allowable limit will be subject to a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for distributions discussed in the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributionssection titled “Early Distributions from a Traditional IRA”. If you make an excess contribution to your Xxxx XXX IRA and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution contribution, if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX IRA during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus including extensions) will be considered corrected, thus avoiding an excess contribution penalty.

Excess Contributions. Amounts contributed to your Xxxx XXX traditional IRA in excess of the allowable limit will be subject to a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for distributions discussed in the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributionssection titled “Early Distributions from a Traditional IRA”. If you make an excess contribution to your Xxxx XXX IRA and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution contribution, if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX IRA during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus including extensions) will be considered corrected, thus avoiding an excess contribution penalty.

Excess Contributions. Amounts contributed If contributions to your Xxxx XXX IRA xxx in excess of the allowable limit limits stated in Part D above, you will be subject to assessed a non-deductible 6% nondeductible excise tax of 6% on such excess amounts. This tax is payable for each year until the excess is used up (as an allowable contribution permitted to remain in a subsequent year) or returned to youyour IRA. The 6% excise tax on excess contributions will not apply Xxwever, if the excess contribution has not been taken as a deduction, and if the excess and all earnings allocable to it thereon are distributed by returned before the due date for filing your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made, the 6% excise tax will not be assessed. Consult IRS Publication 590 The earnings on such excess contribution that are returned to you will be taxable as ordinary income and will be deemed to have been earned and taxable in the tax year during which the excess contribution was made. In addition, if you are not disabled or have not reached age 59 1/2, the earnings will be subject to the 10% premature withdrawal penalty discussed below. The 6% excess contribution tax may be eliminated for more information pertaining future tax years by withdrawing the excess contribution from your IRA xxxore the due date for filing your tax return for that year or by under-contributing for a subsequent year by an amount equal to the excess contributionscontribution. If the total contributions for the year to your IRA xxx $2,250 or less, and there are no employer contributions for the year, you may withdraw any excess contributions after the due date for filing your tax return, including extensions, and not include the amount withdrawn in your gross income. This applies only to the part of the excess that you did not take a deduction for. It is not necessary to withdraw the interest or other income earned on the excess. You will have to pay the 6% tax on the excess amount for each year the excess contribution was in the IRA. If the contributions to your IRA xxx any year are more than $2,250, you must include in your gross income any excess over $2,250, unless it is an excess rollover contribution attributable to erroneous information. You may also have to pay a 10% tax on premature distributions on the amount you withdraw, unless you are age 59 1/2 or disabled. If less than the maximum amount of contributions has been made in years before the year you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable prior year's difference may not be used to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held reduce the excess contribution. Please note that a negative NIA is permitted andQualified rollover contributions, if applicableas described in Part F below, will be deducted from the amount of the are not considered excess contributioncontributions. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penalty.4)

Excess Contributions. Amounts contributed Any contributions to your Xxxx XXX in IRA over and above the permissible limits are considered “excess of the allowable limit will be contributions” subject to a non-deductible an annual excise tax of 6% of the amount of the excess contributions for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your accountIRA. Earnings You must file IRS Form 5329 with your income taxes to report and pay any penalty taxes to the IRS. Excess Contribution Correction By Due Date of Tax Return: Excess contributions may be corrected (so that the 6% excise tax will be removed with not apply) by withdrawing the excess contribution if corrected contributions and related earnings, as determined by you, from the IRA on or before the due date (including extensions) for filing your federal income tax return for the year for which the contribution relates. If, however, you timely filed your federal tax return, you can still have the excess contribution and related earnings returned to you within six months of the due date of your tax return for which the contribution relates, excluding extensions. When the excess contribution is removed with the related earnings, the amount of the excess contribution will not be considered a premature distribution nor be taxed as ordinary income. However, any earnings withdrawn will be taxed as ordinary income. In addition, the 10% penalty tax generally imposed on premature distributions will apply to the withdrawal of the earnings unless you have attained the age of 59½ or meet another penalty exception. For assistance in calculating the earnings related to the excess contribution using the IRS-approved method, refer to Treasury Regulation 1.408-11, IRS Publication 590- A and your tax advisor. Excess Contribution Correction After Due Date of Tax Return: To correct an excess contribution after your tax filing due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings or after your six-month extension (if you are under age 59½. If you are subject to a timely filed your federal penalty tax due to an excess contributionreturn), you must file IRS Form 5329. For the purpose of may withdraw the excess contribution, we will calculate the net income attributable amount (no earnings need to that be withdrawn.) An excess contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted withdrawn from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income IRA after your tax return filing due date (plus extensions) will ), may be considered correctedtaxable to you. Alternatively, thus avoiding if you are eligible to contribute in a subsequent year, you may correct an excess contribution penaltyamount by redesignating the amount to a subsequent tax year. To redesignate an excess contribution for a subsequent year, you must under contribute in a subsequent tax year and carry forward the original contribution on your income tax records for that subsequent tax year. The original amount is either deducted on Form 1040 or claimed as a nondeductible contribution on Form 8606. Regardless of which method (i.e., removal or redesignation) you use to correct an excess contribution amount after your tax return due date including extensions or after your six-month extension (if you timely filed your federal tax return), the 6% penalty is required for each year it remained in the IRA.

Excess Contributions. Amounts contributed Any contributions to your Xxxx XXX in over and above the permissible limits are considered “excess of the allowable limit will be contributions” subject to a non-deductible an annual excise tax of 6% of the amount of the excess contributions for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your accountXXX. Earnings You must file IRS Form 5329 with your income taxes to report and pay any penalty taxes to the IRS. Excess Contribution Correction By Due Date of Tax Return: Excess contributions may be corrected (so that the 6% excise tax will be removed with not apply) by withdrawing the excess contribution if corrected contributions and related earnings, as determined by you, from the XXX on or before the due date (including extensions) for filing your federal income tax return for the year for which the contribution relates. If, however, you timely filed your federal tax return, you can still have the excess contribution and related earnings returned to you within six months of the due date of your tax return for which the contribution relates, excluding extensions. When the excess contribution is removed with the related earnings, the amount of the excess contribution will not be considered a premature distribution nor be taxed as ordinary income. However, any earnings withdrawn will be taxed as ordinary income. In addition, the 10% penalty tax generally imposed on premature distributions will apply to the withdrawal of the earnings unless you have attained the age of 59½ or meet another penalty exception. For assistance in calculating the earnings related to the excess contribution using the IRS-approved method, refer to Treasury Regulation 1.408-11, IRS Publication 590- A and your tax advisor. Excess Contribution Correction After Due Date of Tax Return: To correct an excess contribution after your tax filing due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings or after your six-month extension (if you are under age 59½. If you are subject to a timely filed your federal penalty tax due to an excess contributionreturn), you must file IRS Form 5329. For the purpose of may withdraw the excess contribution, we will calculate the net income attributable amount (no earnings need to that be withdrawn.) An excess contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx withdrawn from your XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by after your federal income tax return filing due date (plus extensions) will ), may be considered correctedtaxable to you. Alternatively, thus avoiding if you are eligible to contribute in a subsequent year, you may correct an excess contribution penaltyamount by redesignating the amount to a subsequent tax year. To redesignate an excess contribution for a subsequent year, you must under contribute in a subsequent tax year and carry forward the original contribution on your income tax records for that subsequent tax year. The original amount is either deducted on Form 1040 or claimed as a nondeductible contribution on Form 8606. Regardless of which method (i.e., removal or redesignation) you use to correct an excess contribution amount after your tax return due date including extensions or after your six-month extension (if you timely filed your federal tax return), the 6% penalty is required for each year it remained in the XXX.

Excess Contributions. Amounts contributed Any contributions to your Xxxx XXX in over and above the permissible limits are considered “excess of the allowable limit will be contributions” subject to a non-deductible an annual excise tax of 6% of the amount of the excess contributions for each year until in which the excess contribution remains in your IRA. You must file IRS Form 5329 with your income taxes to report and pay any penalty taxes to the IRS. Excess Contribution Correction By Due Date of Tax Return: Excess contributions may be corrected (so that the 6% excise tax will not apply) by withdrawing the excess contributions and related earnings, as determined by you, from the Xxxx XXX on or before the due date (including extensions) for filing your federal income tax return for the year for which the contribution relates. If, however, you timely filed your federal tax return, you can still have the excess contribution and related earnings returned to you within six months of the due date of your tax return for which the contribution relates, excluding extensions. When the excess contribution is used up removed with the related earnings, the amount of the excess contribution will not be considered a premature distribution nor be taxed as ordinary income. However, any earnings withdrawn will be taxed as ordinary income. In addition, the 10% penalty tax generally imposed on premature distributions will apply to the withdrawal of the earnings unless you have attained the age of 59½, or meet another penalty exception. For assistance in calculating the earnings related to the excess contribution using the IRS-approved method, refer to Treasury Regulation 1.408-11, IRS Publication 590-A and your tax advisor. Excess Contribution Correction After Due Date of Tax Return: To correct an excess contribution after your tax filing due date (as an allowable including extensions), or after your six-month extension (if you timely filed your federal tax return), you may withdraw the excess amount (no earnings need to be withdrawn.) An excess contribution withdrawn from your Xxxx XXX after your tax filing due date (plus extensions), is generally not taxable to you. Alternatively, if you are eligible to contribute in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the , you may correct an excess contribution amount by redesignating the amount to a subsequent tax year. To redesignate an excess contribution for a subsequent tax year, you must under contribute in a subsequent tax year and earnings allocable carry forward the original contribution on your income tax records for that subsequent tax year. Regardless of which method (i.e., removal or redesignation) you use to it are distributed by correct an excess contribution amount after your federal income tax return due date, including extensions. If such a distribution is made, only or after your six-month extension (if you timely filed your federal tax return), the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 106% penalty tax on early distributions. An IRS Form 1099-R will be issued is required for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for it remained in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penaltyXXX.

Excess Contributions. Amounts contributed Any contributions to your Xxxx XXX in over and above the permissible limits are considered “excess of the allowable limit will be contributions” subject to a non-deductible an annual excise tax of 6% of the amount of the excess contributions for each year until in which the excess contribution remains in your XXX. You must file IRS Form 5329 with your income taxes to report and pay any penalty taxes to the IRS. Excess Contribution Correction By Due Date of Tax Return: Excess contributions may be corrected (so that the 6% excise tax will not apply) by withdrawing the excess contributions and related earnings, as determined by you, from the Xxxx XXX on or before the due date (including extensions) for filing your federal income tax return for the year for which the contribution relates. If, however, you timely filed your federal tax return, you can still have the excess contribution and related earnings returned to you within six months of the due date of your tax return for which the contribution relates, excluding extensions. When the excess contribution is used up removed with the related earnings, the amount of the excess contribution will not be considered a premature distribution nor be taxed as ordinary income. However, any earnings withdrawn will be taxed as ordinary income. In addition, the 10% penalty tax generally imposed on premature distributions will apply to the withdrawal of the earnings unless you have attained the age of 59½, or meet another penalty exception. For assistance in calculating the earnings related to the excess contribution using the IRS-approved method, refer to Treasury Regulation 1.408-11, IRS Publication 590-A and your tax advisor. Excess Contribution Correction After Due Date of Tax Return: To correct an excess contribution after your tax filing due date (as an allowable including extensions), or after your six-month extension (if you timely filed your federal tax return), you may withdraw the excess amount (no earnings need to be withdrawn.) An excess contribution withdrawn from your Xxxx XXX after your tax filing due date (plus extensions), is generally not taxable to you. Alternatively, if you are eligible to contribute in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the , you may correct an excess contribution amount by redesignating the amount to a subsequent tax year. To redesignate an excess contribution for a subsequent tax year, you must under contribute in a subsequent tax year and earnings allocable carry forward the original contribution on your income tax records for that subsequent tax year. Regardless of which method (i.e., removal or redesignation) you use to it are distributed by correct an excess contribution amount after your federal income tax return due date, including extensions. If such a distribution is made, only or after your six-month extension (if you timely filed your federal tax return), the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 106% penalty tax on early distributions. An IRS Form 1099-R will be issued is required for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for it remained in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penaltyXXX.

Excess Contributions. Amounts contributed to your Xxxx XXX traditional IRA in excess of the allowable limit will be subject to a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for distributions discussed in the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributionssection titled “Early Distributions from a Traditional IRA”. If you make an excess contribution to your Xxxx XXX IRA and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution contribution, if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX IRA during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus including extensions) will be considered corrected, thus avoiding an excess contribution penalty. EARLY DISTRIBUTIONS FROM A TRADITIONAL IRA: Early Distribution Penalty Tax – If you are under age 59½ and receive a Traditional IRA distribution, an additional early distribution penalty tax of 10% generally will apply to the amount includible in income in the year of the distribution. However, the additional early distribution penalty tax of 10% generally will not apply if one of the following exceptions apply. The 10% penalty tax is in addition to any federal income tax that is owed at distribution.

Excess Contributions. Amounts contributed to your Xxxx XXX in excess of the allowable limit will be subject to a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penalty. EARLY DISTRIBUTIONS FROM A XXXX XXX: Early Distribution Penalty Tax – If you are under age 59½ and receive a nonqualified Xxxx XXX distribution, an additional early distribution penalty tax of 10% generally will apply to the amount includible in income in the year of the distribution. If you are under age 59½ and receive a distribution of conversion amounts or employer-sponsored retirement plan rollover amounts within the five-year period beginning with the year in which the conversion or employer-sponsored retirement plan rollover occurred, an additional early distribution penalty tax of 10% generally will apply to the amount of the distribution. The additional early distribution penalty tax of 10% generally will not apply if one of the following exceptions apply. The 10% penalty tax is in addition to any federal income tax that is owed at distribution.

Excess Contributions. Amounts contributed to your Xxxx XXX in excess Roth IRA xx xxxxss of the allowable limit will be subject to a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX and it Roth IRA xxx xx is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during Roth IRA xxxxxx the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penalty.

Excess Contributions. Amounts contributed to your GE Xxxx XXX in excess of the allowable limit (including any over-contributions resulting from contributions through a payroll deduction or systematic investment plan) will be subject to a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution (in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by the due date for your federal Federal income tax return due datereturn, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty excise tax on early distributionsdistributions discussed below. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. The 1099-R applies to amounts removed during the period January 1 through and including the due date of your Federal income tax return for the prior tax year. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX IRA and it is not corrected on a timely basis, an excise tax of 6% is 6%is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal the Federal income tax return due date tax-filing deadline (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Internal Revenue Service (“IRS”) Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "“NIA"”) using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX IRA during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal Federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penalty.

Excess Contributions. Amounts contributed If you contribute more to your Xxxx XXX in excess of the allowable limit will be subject to IRAs than is allowed as annual contributions or rollovers (all discussed earlier), a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on generally will apply for each year the excess contributions will not apply if contribution remains in your IRA(s). You can avoid the 6% excise tax by withdrawing the excess contribution and any earnings allocable to on it are distributed by before the due date for filing your federal income tax return due datereturn, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 If you timely filed your tax return for more information pertaining the year without reporting the withdrawal, you still may be able to make the election by filing a timely amended tax return. This timely withdrawal of the excess contributionscontribution also will not be taxable if you did not deduct the excess contribution on your tax return. The earnings you withdrew must be included in income for the year in which the excess contribution was made and may be subject to a 10% additional tax on early distributions. If you make are requesting the return of an excess contribution and you are asking X. Xxxx Price to your calculate the earnings or losses, all investments within the same type of IRA will be considered regardless of whether the excess contribution was actually invested in a particular investment in that type of IRA. X. Xxxx XXX Xxxxx will report the returned excess contributions and it is not corrected earnings to you and the IRS on Form 1099-R as a timely basis, return of an excess contribution and indicate the year in which the earnings are taxable. You can avoid the 6% excise tax of 6% is imposed for subsequent years by withdrawing the excess contribution or applying the excess contribution as an annual contribution for a subsequent year. You are not required to withdraw earnings on the excess amountcontribution in subsequent years. This If you withdraw excess contributions for a prior year, you must include such corrective distributions in your gross income and they may be subject to the 10% additional tax will apply each year to any part or all of on early distributions. If X. Xxxx Price is informed that the excess that remains in is not being returned prior to your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (date, including extensions), pursuant X. Xxxx Xxxxx will report the returned excess contribution to Internal Revenue Code Section 408(d)(4) you and the IRS Publication 590on Form 1099-R as either an early or normal distribution, depending upon your age. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file Use IRS Form 5329. For the purpose of the 5329 to figure your tax on excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penaltycontributions.

Excess Contributions. Amounts contributed Any contributions to your Xxxx XXX in IRA over and above the permissible limits are considered “excess of the allowable limit will be contributions” subject to a non-deductible an annual excise tax of 6% of the amount of the excess contributions for each year until the excess is used up (as an allowable contribution in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your accountIRA. Earnings You must file IRS Form 532e with your income taxes to report and pay any penalty taxes to the IRS. Excess Contribution Correction By Due Date of Tax Return: Excess contributions may be corrected (so that the 6% excise tax will be removed with not apply) by withdrawing the excess contribution if corrected contributions and related earnings, as determined by you, from the IRA on or before the due date (including extensions) for filing your federal income tax return for the year for which the contribution relates. If, however, you timely filed your federal tax return, you can still have the excess contribution and related earnings returned to you within six months of the due date of your tax return for which the contribution relates, excluding extensions. When the excess contribution is removed with the related earnings, the amount of the excess contribution will not be considered a premature distribution nor be taxed as ordinary income. However, any earnings withdrawn will be taxed as ordinary income. In addition, the 10% penalty tax generally imposed on premature distributions will apply to the withdrawal of the earnings unless you have attained the age of 5e½ or meet another penalty exception. For assistance in calculating the earnings related to the excess contribution using the IRS-approved method, refer to Treasury Regulation 1.408-11, IRS Publication 5e0- A and your tax advisor. Excess Contribution Correction After Due Date of Tax Return: To correct an excess contribution after your tax filing due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings or after your six-month extension (if you are under age 59½. If you are subject to a timely filed your federal penalty tax due to an excess contributionreturn), you must file IRS Form 5329. For the purpose of may withdraw the excess contribution, we will calculate the net income attributable amount (no earnings need to that be withdrawn.) An excess contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted withdrawn from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income IRA after your tax return filing due date (plus extensions) will ), may be considered correctedtaxable to you unless certain conditions are met. Alternatively, thus avoiding if you are eligible to contribute in a subsequent year, you may correct an excess contribution penaltyamount by redesignating the amount to a subsequent tax year. To redesignate an excess contribution for a subsequent year, you must under contribute in a subsequent tax year and carry forward the original contribution on your income tax records for that subsequent tax year. The original amount is either deducted on Form 1040 or claimed as a nondeductible contribution on Form 8606. Regardless of which method (i.e., removal or redesignation) you use to correct an excess contribution amount after your tax return due date including extensions or after your six-month extension (if you timely filed your federal tax return), the 6% penalty is required for each year it remained in the IRA.

Excess Contributions. Amounts contributed If contributions to your Xxxx XXX IRA are in excess of the allowable limit limits stated in Part D above, you will be subject to xxsessed a non-deductible 6% nondeductible excise tax of 6% on such excess amounts. This tax is payable for each year until the excess is used up (as an allowable contribution permitted to remain in a subsequent year) or returned to youyour IRA. The 6% excise tax on excess contributions will not apply However, if the excess contribution has not been taken as a dexxxtion, and if the excess and all earnings allocable to it thereon are distributed by returned before the due date for filing your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made, the 6% excise tax will not be assessed. Consult IRS Publication 590 The earnings on such excess contribution that are returned to you will be taxable as ordinary income and will be deemed to have been earned and taxable in the tax year during which the excess contribution was made. In addition, if you are not disabled or have not reached age 59 1/2, the earnings will be subject to the 10% premature withdrawal penalty discussed below. The 6% excess contribution tax may be eliminated for more information pertaining future tax years by withdrawing the excess contribution from your IRA before the due date for filing your tax return for that year or xx under-contributing for a subsequent year by an amount equal to the excess contributionscontribution. If the total contributions for the year to your IRA are $2,250 or less, and there are no employer contributions for xxe year, you may withdraw any excess contributions after the due date for filing your tax return, including extensions, and not include the amount withdrawn in your gross income. This applies only to the part of the excess that you did not take a deduction for. It is not necessary to withdraw the interest or other income earned on the excess. You will have to pay the 6% tax on the excess amount for each year the excess contribution was in the IRA. If the contributions to your IRA for any year are more thax $2,250, you must include in your groxx income any excess over $2,250, unless it is an excess rollover contribution attributable to erroneous information. You may also have to pay a 10% tax on premature distributions on the amount you withdraw, unless you are age 59 1/2 or disabled. If less than the maximum amount of contributions has been made in years before the year you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable prior year's difference may not be used to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held reduce the excess contribution. Please note that a negative NIA is permitted andQualified rollover contributions, if applicableas described in Part F below, will be deducted from the amount of the are not considered excess contributioncontributions. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penalty.4)

Excess Contributions. Amounts contributed to your Xxxx XXX in excess of the allowable limit (including any over-contributions resulting from contributions through a payroll deduction or systematic investment plan) will be subject to a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution (in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by the due date for your federal Federal income tax return due datereturn, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty excise tax on early distributionsdistributions discussed below. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. The 1099-R applies to amounts removed during the period January 1 through and including the due date of your Federal income tax return for the prior tax year. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX IRA and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal the Federal income tax return due date tax-filing deadline (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Internal Revenue Service (“IRS”) Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "“NIA"”) using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX IRA during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal Federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penalty.

Excess Contributions. Amounts contributed Any contributions to your Xxxx XXX in over and above the permissible limits are considered “excess of the allowable limit will be contributions” subject to a non-deductible an annual excise tax of 6% of the amount of the excess contributions for each year until in which the excess contribution remains in your XXX. You must file IRS Form 5329 with your income taxes to report and pay any penalty taxes to the IRS. Excess Contribution Correction By Due Date of Tax Return: Excess contributions may be corrected (so that the 6% excise tax will not apply) by withdrawing the excess contributions and related earnings, as determined by you, from the Xxxx XXX on or before the due date (including extensions) for filing your federal income tax return for the year for which the contribution relates. If, however, you timely filed your federal tax return, you can still have the excess contribution and related earnings returned to you within six months of the due date of your tax return for which the contribution relates, excluding extensions. When the excess contribution is used up removed with the related earnings, the amount of the excess contribution will not be considered a premature distribution nor be taxed as ordinary income. However, any earnings withdrawn will be taxed as ordinary income. In addition, the 10% penalty tax generally imposed on premature distributions will apply to the withdrawal of the earnings unless you have attained the age of 59½, or meet another penalty exception. For assistance in calculating the earnings related to the excess contribution using the IRS- approved method, refer to Treasury Regulation 1.408-11, IRS Publication 590-A and your tax advisor. Excess Contribution Correction After Due Date of Tax Return: To correct an excess contribution after your tax filing due date (as an allowable including extensions), or after your six-month extension (if you timely filed your federal tax return), you may withdraw the excess amount (no earnings need to be withdrawn.) An excess contribution withdrawn from your Xxxx XXX after your tax filing due date (plus extensions), is generally not taxable to you. Alternatively, if you are eligible to contribute in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the , you may correct an excess contribution amount by redesignating the amount to a subsequent tax year. To redesignate an excess contribution for a subsequent tax year, you must under contribute in a subsequent tax year and earnings allocable carry forward the original contribution on your income tax records for that subsequent tax year. Regardless of which method (i.e., removal or redesignation) you use to it are distributed by correct an excess contribution amount after your federal income tax return due date, including extensions. If such a distribution is made, only or after your six-month extension (if you timely filed your federal tax return), the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 106% penalty tax on early distributions. An IRS Form 1099-R will be issued is required for the year in which the distribution occurred, not the year in which the excess contribution was made. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX and it is not corrected on a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for it remained in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penaltyXXX.

Excess Contributions. Amounts contributed to your Xxxx XXX GE Traditional IRA in excess of the allowable limit (including any over-contribution resulting from contributions through a payroll deduction or systematic investment plan) will be subject to a non-deductible excise tax of 6% for each year until the excess is used up (as an allowable contribution (in a subsequent year) or returned to you. The 6% excise tax on excess contributions will not apply if the excess contribution and earnings allocable to it are distributed by the due date for your federal Federal income tax return due datereturn, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which the excess was contributed to the IRA. The return of earnings may also be subject to the 10% penalty excise tax on early distributionsdistributions discussed below. An IRS Form 1099-R will be issued for the year in which the distribution occurred, not the year in which the excess contribution was made. The 1099-R applies to amounts removed during the period January 1 through and including the due date of your Federal income tax return for the prior tax year. Consult IRS Publication 590 for more information pertaining to excess contributions. If you make an excess contribution to your Xxxx XXX IRA and it is not corrected on a timely basis, an excise tax of 6% is 6%is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal the Federal income tax return due date tax-filing deadline (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "“NIA"”) using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX IRA during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal Federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penalty.

Excess Contributions. Amounts contributed Contributions (including an improper rollover or a salary reduction contribution) to your Xxxx SIMPLE-XXX in which exceed the maximum allowable per tax year are considered excess of the allowable limit will be subject to a non-deductible contributions. An excise tax of 6% of the excess amount will be incurred for each calendar year until in which the excess is used up (as an allowable contribution remains in a subsequent year) or returned to youyour SIMPLE-XXX. The 6% excise tax on excess contributions will not apply if You may correct the excess contribution and earnings allocable avoid the 6% penalty tax for that year by withdrawing the excess contribution and its earnings, if any, from the SIMPLE-XXX by providing a request to it are distributed by the Custodian in a form and manner acceptable to the Custodian on or before the due date, including extensions, for filing your federal income tax return due date, including extensions. If such a distribution is made, only the earnings are considered taxable income for the tax year in which you made the excess was contributed contribution. Alternatively, your Employer may correct excess or erro- neous contributions made on your behalf by providing the Custodian a request in a form and manner acceptable to the IRACustodian requesting that the Custodian return the excess or erroneous contribution. Such request shall be deemed to be your instruction to the Custodian to correct the excess or erroneous contribution by withdrawing the excess or erroneous contribution and its earnings from your SIMPLE-XXX. The return amount of the excess contribution withdrawn will not be considered a prema- ture distribution nor (except in the case of a salary reduction contribution) be taxed as ordinary income, but any earnings may also be subject to the 10% penalty tax on early distributions. An IRS Form 1099-R such excess contribution which are withdrawn will be issued taxed as ordinary income to you for the year in which the distribution occurredwas made. In addition, income earned on such excess contribution may be subject to a 10% premature distribution penalty. This non-deductible penalty may be increased to 25% if the distribution occurs within a two-year period beginning on the date that you first received contributions in your SIMPLE-XXX under the SIMPLE Plan maintained by your Employer (“the two-year period”). Excess contributions attributable to salary reduction contributions are includible in your gross income in the calendar year of deferral. If you withdraw the excess con- tribution attributable to salary reduction contributions on or before April 15 follow- ing the calendar year to which the contribution relates, the allocable income is not subject to the 10% premature distribution penalty. The 6% penalty tax will be imposed on excess contributions for each year in which the excess contribution was maderemains in the SIMPLE-XXX. Consult IRS Publication 590 for more information pertaining It is your responsibility to see that excess contributions. If you make an excess contribution to your Xxxx XXX and it is not corrected on contributions are cor- rected in a timely basis, an excise tax of 6% is imposed on the excess amount. This tax will apply each year to any part or all of the excess that remains in your account. Earnings will be removed with the excess contribution if corrected before your federal income tax return due date (including extensions), pursuant to Internal Revenue Code Section 408(d)(4) and IRS Publication 590. The IRS may impose a 10% early distribution penalty on the earnings if you are under age 59½. If you are subject to a federal penalty tax due to an excess contribution, you must file IRS Form 5329. For the purpose of the excess contribution, we will calculate the net income attributable to that contribution (Net Income Attributable or "NIA") using the method provided for in the IRS Final Regulations for Earnings Calculation for Returned or Recharacterized Contributions. This method calculates the NIA based on the actual earnings and losses of the Xxxx XXX during the time it held the excess contribution. Please note that a negative NIA is permitted and, if applicable, will be deducted from the amount of the excess contribution. Excess contributions (plus or minus the NIA) that are distributed by your federal income tax return due date (plus extensions) will be considered corrected, thus avoiding an excess contribution penaltyproper manner.