No Special Tax Treatment. Xxxx XXX distributions are not eligible for special tax treatments, such as ten year averaging, that may apply to other employer-sponsored retirement plan distributions. Estate and Gift Tax. The designation of a beneficiary to receive Xxxx XXX distributions upon your death will not be considered a transfer of property for federal gift tax purposes. Upon your death, the value of all assets remaining in your Xxxx XXX will usually be included in your gross estate for estate tax purposes, regardless of the named beneficiary or manner of distribution. There is no specific estate tax exclusion for assets held within a Xxxx XXX. After your death, beneficiaries should pay careful attention to the rules for the disclaiming any portion of your Xxxx XXX under IRC Section 2518. Annual Statements. Each year we will furnish you and the IRS with statements reflecting the activity, including rollovers, conversions, and recharacterizations, in your Xxxx XXX. You and the IRS will receive IRS Forms 5498 and 1099-R. IRS Form 5498 or an appropriate substitute indicates the fair market value of the account, including Xxxx XXX contributions, for the year. IRS Form 1099-R reflects your Xxxx XXX distributions for the year. Federal Tax Penalties and IRS Form 5329. Several tax penalties may apply to your various Xxxx XXX transactions, and are in addition to any federal, state, or local taxes. Federal penalties and excise taxes are generally reported and remitted to the IRS by completing IRS Form 5329, and attaching the form to your federal income tax return. The penalties may include any of the following taxes:
Appears in 4 contracts
Samples: Customer Agreement, Customer Agreement, Customer Agreement
