Taxes and Treatment of Qualified Rollover Contributions. The rollover and direct rollover contribution amounts from an eligible retirement plan are referred to as "qualified rollover contributions." The taxable portion that is rolled or directly rolled over to a Xxxx XXX is subject to federal income tax. The 10 percent early-distribution penalty tax does not apply to these taxable amounts. However, if the taxable portion of the qualified rollover contribution is distributed from the Xxxx XXX within five years and an exception does not apply, the 10 percent penalty tax would apply in this later year. With respect to subsequent distributions from this Xxxx XXX that are nonqualified distributions, the qualified rollover contribution amount is considered as part of the nontaxable conversion category for purposes of the ordering rules.
Appears in 7 contracts
Samples: Customer Agreement, Customer Agreement, www.sbhfunds.com
Taxes and Treatment of Qualified Rollover Contributions. The rollover and direct rollover contribution amounts from an eligible retirement plan are referred to as "qualified rollover contributions." The taxable portion that is rolled or directly rolled over to a Xxxx XXX is subject to federal income tax. The 10 percent earlypremature-distribution penalty tax does not apply to these taxable amounts. However, if the taxable portion of the qualified rollover contribution is distributed from the Xxxx XXX within five years and an exception does not apply, the 10 percent penalty tax would apply in this later year. With respect to subsequent distributions from this Xxxx XXX that are nonqualified distributions, the qualified rollover contribution amount is considered as part of the nontaxable conversion category for purposes of the ordering rules.
Appears in 4 contracts
Samples: Customer Agreement, Customer Agreement, Customer Agreement
