What If I Pledge My Account?. If you use (pledge) all or part of your Traditional IRA as security for a loan, then the portion so pledged will be treated as if distributed to you and will be taxable to you as ordinary income during the year in which you make such pledge. The 10% penalty tax on early distributions may also apply in addition to ordinary income taxes.
Appears in 138 contracts
Samples: Custodial Account Agreement, Custodial Account Agreement, Custodial Account Agreement
What If I Pledge My Account?. If you use (pledge) all or part of your Traditional IRA XXX as security for a loan, then the portion so pledged will be treated as if distributed to you and will be taxable to you as ordinary income during the year in which you make such pledge. The 10% penalty tax on early distributions may also apply in addition to ordinary income taxes.
Appears in 89 contracts
Samples: Custodial Account Agreement, Custodial Account Agreement, Custodial Account Agreement
