Nonqualifying Distributions. If a designated beneficiary withdraws amounts from a Xxxxxxxxx ESA that exceed the qualified education expenses for the same year, or the distributions are not used for qualified education expenses, a portion of the distributions will be taxable. The amount in excess of the qualified education expenses is taxable pro rata, based on the earnings and the basis in the account. In most cases of a nonqualified distribution, the taxable portion of a Xxxxxxxxx ESA distribution is also subject to an additional 10 percent penalty tax. There are several exceptions to the 10 percent penalty tax including distributions made payable
Appears in 17 contracts
Samples: Coverdell Esa Custodial Account Agreement, www.transamerica.com, davisfunds.com
Nonqualifying Distributions. If a designated beneficiary Designated Beneficiary withdraws amounts from a Xxxxxxxxx ESA that which exceed the qualified education expenses for the same year, or the distributions are not used for qualified education expenses, a portion of the distributions will be taxable. The amount in excess of the qualified education expenses is taxable pro rata, based on the earnings and the basis in the account. In most cases of a nonqualified distribution, the taxable portion of a Xxxxxxxxx ESA distribution is also subject to an additional 10 percent penalty tax. There are several exceptions to the 10 percent penalty tax including distributions made payable
Appears in 4 contracts
Samples: Custodial Agreement, Custodial Agreement, Custodial Agreement
Nonqualifying Distributions. If a designated beneficiary Designated Beneficiary withdraws amounts from a Xxxxxxxxx ESA that exceed the qualified education expenses for the same year, or the distributions are not used for qualified education expenses, a portion of the distributions will be taxable. The amount in excess of the qualified education expenses is taxable pro rata, based on the earnings and the basis in the account. In most cases of a nonqualified distribution, the taxable portion of a Xxxxxxxxx ESA distribution is also subject to an additional 10 percent penalty tax. There are several exceptions to the 10 percent penalty tax tax, including distributions made payable:
Appears in 2 contracts
Samples: www.navyfederal.org, www.navyfederal.org
Nonqualifying Distributions. If a designated beneficiary Designated Beneficiary withdraws amounts from a Xxxxxxxxx ESA that which exceed the qualified education expenses for the same year, or the distributions are not used for qualified education expenses, a portion of the distributions will be taxable. The amount in excess of the qualified education expenses is taxable pro rata, based on the earnings and the basis in the account. In most cases of a nonqualified non-qualified distribution, the taxable portion of a Xxxxxxxxx ESA distribution is also subject to an additional 10 percent penalty 10% tax. There are several exceptions to the 10 percent penalty tax 10% tax, including distributions made payable:
Appears in 1 contract
Samples: www.stifel.com