Transfers Incident to Divorce. In a form and manner acceptable to the Custodian, under a valid divorce decree, separate maintenance decree, or other valid court order, all or part of your Xxxx XXX may be transferred to your ex-spouse or you may receive all or part of your ex-spouse’s Xxxx XXX.
Transfers Incident to Divorce. In a form and manner acceptable to the Custodian, under a valid divorce decree, separate maintenance decree, or other valid court order, all or part of your IRA may be transferred to your ex-spouse or you may receive all or part of your ex-spouse’s IRA.
Transfers Incident to Divorce. Under a valid divorce decree or separate maintenance decree, or a written document incident to such a decree, your Xxxx XXX may be transferred to your ex-spouse or you may receive all or part of your ex-spouse’s Xxxx XXX. TAX TREATMENT OF XXXX XXX CONTRIBUTIONS No Deduction. You may not take a tax deduction for Xxxx XXX contributions. Tax Credits for Contributions. You may be eligible to take a tax credit for your Xxxx XXX contribution. The maximum annual tax credit is $1,000 and, if you are eligible, the credit will reduce the federal income tax you owe dollar for dollar. You may be eligible for the tax credit if you are age 18 or older, not a dependent of another taxpayer, and not a full-time student. The tax credit is based on your adjusted gross income as defined by the Code. The credit ranges from 0% to 50% of the eligible contribution. DISTRIBUTIONS DURING YOUR LIFETIME You may withdraw any or all of your Xxxx XXX balance at any time. If you take a qualified distribution from your Xxxx XXX, neither the contributions nor the earnings are taxable. If your Xxxx XXX distributions are nonqualified distributions, certain taxes and penalties may apply. Due to the complexity of the Xxxx XXX distribution rules and tax ramifications, you should consult a tax advisor prior to taking distributions from your Xxxx XXX. Distribution Ordering Rules. The “ordering rules” treat distributions as coming from the following categories in the following order:
