Traditional IRAs. (1) The Participant may begin to take money out of a Traditional IRA xxxhout tax penalty after the age of 59 1/2, but must begin receiving a distribution from the Account not later than the April 1 following the calendar year in which the Participant attains age 70 1/2 (required beginning date). At least 30 days prior to that date the Participant must elect to have the balance in the Account distributed in:
Traditional IRAs. General Provisions: Distributions you take from your Traditional IRA before attainment of age 59½, may be subject to a premature distribution penalty as defined in Code Section 72(t). In addition, certain distributions, which are known as “Required Minimum Distributions” or “RMDs” as previously noted, are required to be taken from an IRA, generally beginning with the year you attain age 72 (70½ if born before July 1, 1949) and each year thereafter. Certain distribution amounts are also required to be distributed to your Beneficiary(ies) upon your death. (See the sections entitled “Required Minimum Distributions at Age 72 (70½ if born before July 1, 1949)” and “Required Minimum Beneficiary Distributions” respectively that appear later in this Disclosure Statement.) Taxation of Distributions: Distributions from IRAs must generally be included in your gross income in the year you receive the distribution. There are some exceptions to this general rule including, but limited to the recovery of previously made nondeductible IRA contributions and distribution of amounts that are rolled over to another IRA (or the same IRA) or an employer sponsored retirement plan. In addition, note that the special tax provisions governing certain lump sum distributions from employer-sponsored retirement plans, as described in section 402 of the Code, do not apply to distributions from IRAs. Due to the complexity of the requirements applicable to IRA distributions, it is recommended that you consult with your tax advisor or attorney and/or review IRS Publication 590-A and IRS Publication 590-B for more guidance. Income Tax Withholding on Distributions: Federal income tax regulations generally require IRA trustees and custodians to withhold for federal income tax purposes, an amount equal to 10% of any IRA distribution unless you elect not to have withholding applied. Special withholding election rules apply to distributions that are to be delivered outside of the United States. State income tax withholding based on your state of primary residence may also apply. Recovery of Nondeductible and After Tax Contributions Previously Made to an IRA: A portion of any nondeductible IRA contribution you have made is recovered tax-free with each distribution you take until the total amount of all your nondeductible IRA contributions is fully recovered. The recovery of after tax contributions that you roll over to your IRA from an employer sponsored retirement plan is subject to somewhat dif...
Traditional IRAs. There are exceptions under Code section 72(t) for the payment of Benefits from the Account (i) after your dis- ability or death, (ii) in substantially equal periodic payments for your life (or life expectancy) or the joint lives (or life expectancies) of you and your Beneficiary, (iii) for health insurance premiums after at least 12 weeks of unemployment, (iv) as qualified first-time homebuyer distributions (up to $10,000), (v) for qualified higher education expenses, (vi) for unreimbursed medical expenses exceeding 7.5% of adjusted gross income, and (vii) as a result of a tax levy on the Account.
Traditional IRAs. Definition: A rollover is a transaction in which you deposit a distribution from one eligible retirement plan, such as a Traditional IRA, into another eligible retirement plan, such as another (or the same) Traditional IRA or an employer sponsored retirement plan, on a tax deferred basis. This means you do not include the amount you roll over in your taxable gross income for the year. Any election to make a rollover contribution must be in writing and is considered irrevocable when made. In addition, no tax deduction may be taken for a rollover contribution. Because the rules governing rollover can be complex, it is recommended that you consult with your attorney or tax advisor. General Provisions: You may roll over all or any part of a distribution you take from one Traditional IRA into another Traditional IRA (or the same Traditional IRA) or to a SIMPLE IRA that has been in existence for at least two years, provided you do so in a manner that complies with the general rollover requirements of the Code. You may roll over all or any part of a distribution from a Traditional IRA that would otherwise be taxable to you, to an employer sponsored retirement plan, but only if the plan provides for the acceptance of rollovers from Traditional IRAs.
Traditional IRAs. Definition: A rollover is a transaction in which you deposit a distribution from one eligible retirement plan, such as a Traditional XXX, into another eligible retirement plan, such as another (or the same) Traditional XXX or an employer sponsored retirement plan, on a tax deferred basis. This means you do not include the amount you roll over in your taxable gross income for the year. Any election to make a rollover contribution must be in writing and is considered irrevocable when made. In addition, no tax deduction may be taken for a rollover contribution. Because the rules governing rollover can be complex, it is recommended that you consult with your attorney or tax advisor. General Provisions: You may roll over all or any part of a distribution you take from one Traditional XXX into another Traditional XXX (or the same Traditional XXX) or to a SIMPLE XXX that has been in existence for at least two years, provided you do so in a manner that complies with the general rollover requirements of the Code. You may roll over all or any part of a distribution from a Traditional XXX that would otherwise be taxable to you, to an employer sponsored retirement plan, but only if the plan provides for the acceptance of rollovers from Traditional IRAs.
