Xxxxxxxxx Education Savings Accounts Sample Clauses

Xxxxxxxxx Education Savings Accounts on account of the disability (within the meaning of section The Code provides that for purposes of determining whether a 72(m)(7) of the Code) of the Designated Beneficiary; (iii) distribution from a Xxxxxxxxx ESA is includible in gross income, withdrawals made on account of a scholarship received by the any amount contributed to an Account may be treated as a Designated Beneficiary, provided withdrawals do not exceed the qualified education expense of the Designated Beneficiary. amount of the scholarship; (iv) withdrawals made on account of Therefore, amounts held in a Xxxxxxxxx ESA may be rolled over a reduction in the amount of Qualified Higher Education to an Account for the same Designated Beneficiary without Expenses solely because of expenses taken into account in subjecting the rollover amount to federal income tax or determining the Education Tax Credits allowed under federal penalties. Provided appropriate documentation is received by income tax law and (v) withdrawals made on account of the the Program Manager, the portion of the rollover representing attendance of the Designated Beneficiary at certain specified earnings in the Xxxxxxxxx ESA will be added to the earnings military academies. See “PARTICIPATION AND ACCOUNTS - portion of the Account and the portion representing contributions Non-Qualified Withdrawals and the Additional Tax.” will be added to the Contributions portion of the Account.
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Xxxxxxxxx Education Savings Accounts. Virginia529 will accept Contributions of funds from a Xxxxxxxxx Education Savings Account (Xxxxxxxxx ESA). If you are funding your Account with funds from a Xxxxxxxxx ESA, you must provide the breakdown of the amount you contributed (basis) and the amount of earnings (gains). The transfer is considered a nontaxable Withdrawal from the Xxxxxxxxx ESA. You will need to complete a Xxxxxxxxx/U.S. Savings Bond Transfer Form and an Account Application, and provide appropriate documentation from the trustee or custodian of the Xxxxxxxxx ESA that shows the earnings portion of the transfer, such as an account statement showing basis and earnings (or losses) in the account. If such documentation is not provided to Virginia529 within sixty (60) days of receiving the Contribution, the entire transfer will be treated as earnings, which may have tax consequences. Please consult the IRS (0-000-000-0000) or your legal, financial or tax advisor for more information.
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Xxxxxxxxx Education Savings Accounts. According to the FDIC, Xxxxxxxxx Education Savings Accounts will be treated as irrevocable trust accounts for deposit insurance purposes. In general, irrevocable trust accounts are insured for up to $250,000 for the interest of each beneficiary in the deposits of U.S. Bank provided that the beneficiary’s interest is non-con- tingent (i.e., capable of determination without evaluation of contingen- cies). The deposit insurance of each beneficiary’s interest in the deposits of U.S. Bank is separate from the coverage provided for other deposit accounts maintained by the beneficiary, the grantor, the trustee, or other beneficiaries at U.S.
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Xxxxxxxxx Education Savings Accounts. Xxxxxxxxx Education Savings Account (“Xxxxxxxxx ESA”) assets can be rolled over to an Account. In order to take advantage of a tax-free rollover from a Xxxxxxxxx ESA, the rollover Contribution must be to an Account for the same Designated Beneficiary and must be accompanied by an Incoming Rollover Form, if requested. An account statement issued by the financial institution that acted as trustee or custodian of the Xxxxxxxxx ESA that shows the principal and earnings portions of the rollover Contribution must also be provided to the Program Manager.
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Xxxxxxxxx Education Savings Accounts. An individual may contribute to, or withdraw money from, both a qualified tuition program account and a Xxxxxxxxx Education Savings Account in the same year. However, to the extent the total withdrawals from both accounts exceed the amount of adjusted Qualified Higher Education Expenses that qualify for tax-free treat- ment under Section 529 of the Code, the recipient must allocate his or her Qualified Higher Education Expenses between both such withdrawals in order to determine how much may be treated as tax-free under each program.
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Xxxxxxxxx Education Savings Accounts. An individual may contribute money to, or withdraw money from, both a 529 Plan account and a Xxxxxxxxx Education Savings Account in the same year. However, to the extent the total distributions from both accounts exceed the amount of the Qualified Expenses incurred, the recipient must allocate his or her Qualified Expenses between both such distributions in order to determine how much may be treated as tax-free under each program. Education Credits. The use of Education Credits by a qualifying Participant and Designated Beneficiary will not affect participation in or benefits from a 529 Plan account, so long as the 529 Plan assets are not used for the same expenses for which the Education Credit was claimed. Federal Gift and Estate Taxes Contributions (including certain rollover contributions) to a 529 Plan account generally are considered completed gifts to the Designated Beneficiary and are eligible for the applicable annual exclusion from gift and GST taxes ($16,000 for a single individual or $32,000 for a married couple making the proper election). Except in the situations described in the following paragraph, if the Participant were to die while assets remain in an Account, the value of the Account would not be included in the Participant’s estate. In cases where contributions to an Account exceed the applicable annual exclusion amount for a single Designated Beneficiary, the contributions may be subject to federal gift tax and possibly the GST tax in the year of contribution. However, in these cases, a contributor may elect to apply the contribution against the annual exclusion equally over a five (5) year period. This option is applicable only for contributions up to five (5) times the available annual exclusion amount in the year of the contribution. Once this election is made, if the contributor makes any additional gifts to the same Designated Beneficiary‌‌‌‌‌ in the same or the next four years, such gifts may be subject to gift or GST taxes in the calendar year of the gift. However, any excess gifts may be applied against the contributor’s lifetime gift or GST tax exclusions. If the Participant chooses to use the five (5) year forward election and dies before the end of the five (5) year period, the portion of the contribution allocable to the years remaining in the five (5) year period (beginning with the year after the Participant’s death) would be included in the Participant’s estate for federal estate or GST tax purposes. If the Designated B...
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Xxxxxxxxx Education Savings Accounts. An individual may contribute money to, or withdraw money from, both a 529 Plan account and a Xxxxxxxxx Education Savings Account in the same year. However, to the extent the total withdrawals from both accounts exceed the amount of the Qualified Higher Education Expenses incurred that qualifies for tax-free treatment under Section 529, the recipient must allocate his or her Qualified Higher Education Expenses between both such withdrawals in order to determine how much may be treated as tax-free under each program. Coordination With Other Higher Education Expense Benefit Programs The tax benefits afforded to 529 Plans must be coordinated with other programs designed to provide tax benefits for meeting higher education expenses in order to avoid the duplication of such benefits. The coordinated programs include the Xxxxxxxxx Education Savings Accounts under Section 530 of the Code and the Hope and Lifetime Learning Credits under Section 25A of the Code.
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Related to Xxxxxxxxx Education Savings Accounts

  • Disclosure Statement for Xxxxxxxxx Education Savings Accounts 1. Who is Eligible for a Xxxxxxxxx Education Savings Account? Anyone may contribute to a Xxxxxxxxx Education Savings Account regardless of his or her relationship to the beneficiary. The beneficiary of a Xxxxxxxxx Education Savings Account

  • When Must Distributions from a Xxxxxxxxx Education Savings Account Begin? Distribution of a Xxxxxxxxx Education Savings Account must be made (or otherwise will be deemed made) no later than 30 days from the earlier of the beneficiary’s death or attainment of age 30. A distribution from a Xxxxxxxxx Education Savings Account may be rolled over to another beneficiary’s Xxxxxxxxx Education Savings Account according to the requirements of Section (4). Note that the Economic Growth and Tax Relief Reconciliation Act of 2001 waives the distribution age limitation if the beneficiary of the Xxxxxxxxx Education Savings Account is a “Special Needs” student.

  • How Are Contributions to a Xxxxxxxxx Education Savings Account Reported for Federal Tax Purposes? Contributions to a Xxxxxxxxx Education Savings Account are reported on IRS Form 5498-ESA.

  • How Are Distributions from a Xxxxxxxxx Education Savings Account Taxed For Federal Income Tax Purposes? Amounts distributed are generally excludable from gross income if they do not exceed the beneficiary’s “qualified higher education expenses” for the year or are rolled over to another Xxxxxxxxx Education Savings Account according to the requirements of Section (4). “Qualified higher education expenses” generally include the cost of tuition, fees, books, supplies, and equipment for enrollment at (i) accredited post-secondary educational institutions offering credit toward a bachelor’s degree, an associate’s degree, a graduate-level or professional degree or another recognized post-secondary credential and (ii) certain vocational schools. In addition, room and board may be covered if the beneficiary is at least a “half-time” student. This amount may be reduced or eliminated by certain scholarships, qualified state tuition programs, HOPE, Lifetime Learning tax credits, proceeds of certain savings bonds, and other amounts paid on the beneficiary’s behalf as well as by any other deductions or credits taken for the same expenses. The definition of “qualified education expenses” includes expenses more frequently and directly related to elementary and secondary school education, including the purchase of computer technology or equipment or Internet access and related services. To the extent payments during the year exceed such amounts, they are partially taxable and partially non-taxable similar to payments received from an annuity. Any taxable portion of a distribution is generally subject to a 10% penalty tax in addition to income tax unless the distribution is (i) due to the death or disability of the beneficiary, (ii) made on account of a scholarship received by the beneficiary, or (iii) is made in a year in which the beneficiary elects the HOPE or Lifetime Learning credit and waives the exclusion from income of the Xxxxxxxxx Education Savings Account distribution. You may be allowed to take both the HOPE or Lifetime Learning credits while simultaneously taking distributions from Xxxxxxxxx Education Savings Accounts. However, you cannot claim a credit for the same educational expenses paid for through Xxxxxxxxx Education Savings Account distributions. To the extent a distribution is taxable, capital gains treatment does not apply to amounts distributed from the account. Similarly, the special five- and ten-year averaging rules for lump-sum distributions do not apply to distributions from a Xxxxxxxxx Education Savings Account. The taxable portion of any distribution is taxed as ordinary income. The IRS does not require withholding on distributions from Xxxxxxxxx Education Savings Accounts.

  • Health Savings Account (HSA) is a tax-exempt trust or custodial account established exclusively for the purpose of paying qualified medical expenses of the member who is covered under a high deductible health plan. The member must be covered under the HSA plan for the months in which contributions are made. HIGH DEDUCTIBLE HEALTH PLAN (HDHP) is a health plan that satisfies certain requirements with respect to deductibles and out-of-pocket expenses. The plan cannot provide payment for any covered healthcare service until the plan year deductible is satisfied, with the exception of preventive care services. HOSPITAL means a facility: • that provides medical and surgical care for patients who have acute illnesses or injuries; and • is either listed as a hospital by the American Hospital Association (AHA) or accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO).

  • Certain Savings Accounts 1. An account established and maintained in the Slovak Republic that satisfies any of the following:

  • What Forms of Distribution Are Available from a Xxxxxxxxx Education Savings Account Distributions may be made as a lump sum of the entire account, or distributions of a portion of the account may be made as requested.

  • Health Spending Account (HSA Wellness Spending Account (WSA)/Registered Retirement Savings Plan (RRSP) utilization rates;

  • Non-Retirement Savings Accounts An account maintained in the Cayman Islands (other than an insurance or Annuity Contract) that satisfies the following requirements under the laws of the Cayman Islands.

  • Health Spending Account contributions by the Executive will cease on the Effective Date. The Executive may submit claims against the balance accrued to the Effective Date, until the end of the calendar year in which the Effective Date occurs.

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