Common use of Nonqualified Distributions Clause in Contracts

Nonqualified Distributions. If you receive a distribution from your Xxxx XXX that does not constitute a qualified distribution, a portion of it may be taxable and may be subject to the 10% premature distribution penalty tax (if you do not qualify for an exception). You must apply the special “ordering” rules discussed above to determine whether part of your nonqualified distribution represents a taxable amount. Nonqualified distributions of conversion amounts distributed within five years of the conversion may be subject to the 10% premature distribution penalty tax, explained below. Distributions Prior to Age 59½ Exempt from 10% Penalty Tax. The 10% penalty tax on premature distributions does not apply to distributions made to you before you attain age 59½ for any of the following reasons:

Nonqualified Distributions. If you receive a distribution from your Xxxx XXX that does not constitute a qualified distribution, a portion of it may be taxable and may be subject to the 10% premature distribution penalty tax (if you do not qualify for an exception). You must apply the special “ordering” rules discussed above to determine whether part of your nonqualified distribution represents a taxable amount. Nonqualified distributions of conversion amounts distributed within five years of the conversion may be subject to the 10% premature distribution penalty tax, explained below. Distributions Prior to Age 59½ Exempt from 10% Penalty Tax. : The 10% penalty tax on premature distributions does not apply to distributions made to you before you attain age 59½ for any of the following reasons:

Nonqualified Distributions. If you receive a distribution from your Xxxx XXX that does not constitute a qualified distribution, a portion of it may be taxable and may be subject to the 10% premature distribution penalty tax (if you do not qualify for an exception). You must apply the special “orderingordering rules” rules discussed above to determine whether part of your nonqualified distribution represents a taxable amount. Nonqualified distributions of conversion amounts and amounts rolled over from employer retirement plans distributed within five years of the conversion may be subject to the 10% premature distribution penalty tax, explained below. Distributions Prior to Age 59½ Exempt from 10% Penalty Tax. The 10% penalty tax on premature distributions does not apply to distributions made to you before you attain age 59½ for any of the following reasons: