Common use of Substantially Equal Payments Clause in Contracts

Substantially Equal Payments. If a taxpayer converts a traditional IRA to a ▇▇▇▇ ▇▇▇ where the traditional IRA was subject to the substantially equal periodic payment exception, the same periodic payments must continue from the ▇▇▇▇ ▇▇▇. However, for 1998 conversions where the taxpayer is using the 4-year spread rule, the payments from the ▇▇▇▇ ▇▇▇ will be subject to the income acceleration rule. Thus, in addition to the normal 1/4th amount, the substantially equal amount is also includible in the participant's gross income for each year until the full taxable conversion has been so included. This rule also applies to 2010 conversions subject to the 2-year income spread. Types of Plans Permitted to be Converted - Traditional regular IRAs, Rollover "conduit" IRAs, and SEP IRAs may be converted to a ▇▇▇▇ ▇▇▇, so long as the taxpayer meets the eligibility requirements until 2010 when the conversion eligibility rules are eliminated. A SIMPLE IRA may also be converted to a ▇▇▇▇ ▇▇▇, but only after such SIMPLE IRA is no longer subject to the 2-year holding period applicable to SIMPLE IRAs. Also, qualified plans §403(b) plans and governmental Required Minimum Distributions - Any required minimum amount must first be distributed before any of the remaining amounts can be converted to the ▇▇▇▇ ▇▇▇. Taxation of Distributions Qualified Distributions - A Qualified Distribution is one that is both made:

Substantially Equal Payments. If a taxpayer converts a traditional IRA to a ▇▇▇▇ ▇▇▇ where the traditional IRA was subject to the substantially equal periodic payment exception, the same periodic payments must continue from the ▇▇▇▇ ▇▇▇. However, for 1998 conversions where the taxpayer is using the 4-year spread rule, the payments from the ▇▇▇▇ ▇▇▇ will be subject to the income acceleration rule. Thus, in addition to the normal 1/4th amount, the substantially equal amount is also includible in the participant's gross income for each year until the full taxable conversion has been so included. This rule also applies to 2010 conversions subject to the 2-year income spread. Types of Plans Permitted to be Converted - Traditional regular IRAs, Rollover "conduit" IRAs, and SEP IRAs may be converted to a ▇▇▇▇ ▇▇▇, so long as the taxpayer meets the eligibility requirements until 2010 when the conversion eligibility rules are eliminated. A SIMPLE IRA may also be converted to a ▇▇▇▇ ▇▇▇, but only after such SIMPLE IRA is no longer subject to the 2-year holding period applicable to SIMPLE IRAs. Also, qualified plans §403(b) plans and governmental §457(b) plans may be converted to a ▇▇▇▇ ▇▇▇. Required Minimum Distributions - Any required minimum amount must first be distributed before any of the remaining amounts amount can be converted to the ▇▇▇▇ ▇▇▇. Taxation of Distributions Qualified Distributions - A Qualified Distribution is one that is both made:

Substantially Equal Payments. If a taxpayer converts a traditional IRA to a ▇▇▇▇ ▇▇▇ where the traditional IRA was subject to the substantially equal periodic payment exception, the same periodic payments must continue from the ▇▇▇▇ ▇▇▇. However, for 1998 conversions where the taxpayer is using the 4-year spread rule, the payments from the ▇▇▇▇ ▇▇▇ will be subject to the income acceleration rule. Thus, in addition to the normal 1/4th amount, the substantially equal amount is also includible in the participant's gross income for each year until the full taxable conversion has been so included. This rule also applies to 2010 conversions subject to the 2-year income spread. Types of Plans Permitted to be Converted - Traditional regular IRAs, Rollover "conduit" IRAs, and SEP IRAs may be converted to a ▇▇▇▇ ▇▇▇, so long as the taxpayer meets the eligibility requirements until 2010 when the conversion eligibility rules are eliminated. A SIMPLE IRA may also be converted to a ▇▇▇▇ ▇▇▇, but only after such SIMPLE IRA is no longer subject to the 2-year holding period applicable to SIMPLE IRAs. Also, qualified plans §403(b) plans and governmental Required Minimum Distributions - Any required minimum amount must first be distributed before any of the remaining amounts amount can be converted to the ▇▇▇▇ ▇▇▇. Taxation of Distributions Qualified Distributions - A Qualified Distribution is one that is both made: