Common use of Premature Distributions Clause in Contracts

Premature Distributions. In addition to any regular income tax that may be payable, distributions from your IRA xxxt occur before you reach age 59 1/2 (except in the event of disability, death, rollover, medical expenses in excess of 7.5% of adjusted gross income, medical insurance premiums in the event of unemployment or as a qualifying distribution of an excess contribution), will be assessed a 10% additional income tax on the amount distributed which is includible in your gross income. However, the additional 10% income tax will not be imposed if the distribution is one of a scheduled series of level payments to be made over your life or life expectancy or over the joint lives or joint life expectancies of you and your beneficiary. Amounts treated as distributions from the IRA xxxause of pledging the IRA xx described below, or prohibited transactions as described below, will also be considered premature distributions if they occur before you reach age 59 1/2 (assuming you are not disabled). (5) EXCESS DISTRIBUTIONS If the aggregate of your distributions from qualified plans and individual retirement accounts exceed a certain limit for any calendar year, a 15% excise tax will be imposed on such excess distributions. Generally, the limit is the greater of $150,000 (available only if a special grandfather provision is not elected on a return filed for a pre-1989 tax year) or $112,500 as adjusted for cost-of-living increases. For any such excess distributions prior to your attainment of age 59 1/2, the 15% excise tax will be offset by the 10% additional income tax on early distributions. (6)

Premature Distributions. In addition to any regular income tax that may be payable, distributions from your IRA xxxt that occur before you reach age 59 1/2 (except in the event of disabilityxxxability, death, rollover, medical expenses in excess of 7.5% of adjusted gross income, medical insurance premiums in the event of unemployment or as a qualifying distribution of an excess contribution), will be assessed a 10% additional income tax on the amount distributed which is includible in your gross income. However, the additional 10% income tax will not be imposed if the distribution is one of a scheduled series of level payments to be made over your life or life expectancy or over the joint lives or joint life expectancies of you and your beneficiary. Amounts treated as distributions from the IRA xxxause because of pledging the IRA xx as described below, or prohibited transactions txxxsactions as described belowbelxx, will also be considered premature distributions if they occur before you reach age 59 1/2 (assuming you are not disabled). (5) EXCESS DISTRIBUTIONS If the aggregate of your distributions from qualified plans and individual retirement accounts exceed a certain limit for any calendar year, a 15% excise tax will be imposed on such excess distributions. Generally, the limit is the greater of $150,000 (available only if a special grandfather provision is not elected on a return filed for a pre-1989 tax year) or $112,500 as adjusted for cost-of-living increases. For any such excess distributions prior to your attainment of age 59 1/2, the 15% excise tax will be offset by the 10% additional income tax on early distributions. (6)