Qualified Withdrawals definition

Qualified Withdrawals. Withdrawals from an Account that are used to pay the Qualified Higher Education Expenses of the Designated Beneficiary. Unless otherwise indicated, reference to withdrawals used to pay for “Qualified Higher Education Expenses of the Designated Beneficiary” includes withdrawals to repay qualified education loans of the Designated Beneficiary’s sibling in the limited circumstances that such repayments may be treated as Qualified Higher Education Expenses.
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Qualified Withdrawals. The earnings portion of qualified withdrawals are federal income tax free if used to pay for Qualified Education Expenses, including: tuition, fees, and the costs of textbooks, supplies, and equipment required for the enrollment or attendance of a Beneficiary at an Eligible Educational Institution; certain costs of room and board of a Beneficiary for any academic period during which the Beneficiary is enrolled at least half‐time at an Eligible Educational Institution; expenses for “special needs” services needed by a special needs Beneficiary which must be incurred in connection with the Beneficiary’s enrollment or attendance at an Eligible Educational Institution; expenses for the purchase of computer or peripheral equipment (as defined in section 168(i)(2)(B) of the Code), computer software (as defined in section 197(e)(3)(B) of the Code), or Internet access and related services, if the equipment, software, or services are to be used primarily by the Beneficiary during any of the years the Beneficiary is enrolled at an Eligible Educational Institution; K-12 Tuition; Apprenticeship Program Expenses; and Education Loan Repayments. (See “FEDERAL AND STATE TAX TREATMENT.”) If your Beneficiary decides not to go to college: You may change your Beneficiary to a new Beneficiary who is a Member of the Family of the original Beneficiary, and that transfer will not be subject to federal income tax or penalty. You also may make withdrawals from the Account or close the Account by notifying Wealthfront. Any non- qualified withdrawals will be subject to federal and state taxes as well as a 10% federal tax penalty on earnings.
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Qualified Withdrawals. The earnings portion of withdrawals from an Account will not be includable in the federal taxable income of the recipient (or deemed recipient) of the withdrawals as long as the withdrawals are used for the Beneficiary’s Qualified Higher Education Expenses. Hope Scholarship or Lifetime Learning Credits: The use of a Hope Scholarship tax credit or Lifetime Learning tax credit by a qualifying Account Owner and Beneficiary will not affect participation in or benefits from an Account, so long as the Account assets are not used for the same expenses for which the credit was claimed. However, if the Account assets are used for the same expenses for which the tax credit was claimed, the amount of the Beneficiary’s Qualified Higher Education Expenses will be reduced by the amount of those expenses. As a result of the reduction, the earnings portion of the Account withdrawal for those expenses may be subject to federal and state income tax (but not the Additional Tax).
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Examples of Qualified Withdrawals in a sentence

  • A CDSC is not assessed on Qualified Withdrawals or withdrawals made within one year of the death or permanent disability of the Beneficiary or due to receipt of a scholarship by the Beneficiary.

  • Federal Qualified Withdrawals from your Account are generally free from federal and Illinois state income tax, but a Federal Qualified Withdrawal that is also an Illinois Nonqualified Withdrawal may trigger recapture of any Illinois income tax deduction claimed for Contributions to the Account.

  • Impact on Other Federal Means-Tested Benefits Programs Contributions to your STABLE Account, balances in your STABLE Account, and Qualified Withdrawals from your STABLE Account are all generally disregarded for purposes of determining your eligibility to receive, and the amount of, any assistance or benefit provided to you through a means-tested federal program.

  • While Qualified Withdrawals are exempt from federal income tax, the earnings portion of Non-Qualified Withdrawals will generally be subject to federal income tax, including a 10% additional federal tax on earnings.

  • Qualified Withdrawals and Qualified Rollovers are not subject to federal income tax.

  • Contributing to Your Account, page 24 Qualified Withdrawals Qualified Withdrawals are withdrawals you take to pay for Qualified Disability Expenses.

  • Page 18 Qualified Withdrawals Assets in an Account that are used to pay for Qualified Higher Education Expenses (as defined herein, which term includes a limited amount of expenses for primary or secondary school tuition) of the Designated Beneficiary (or sibling of the Designated Beneficiary with respect to the repayment of qualified education loans.) Qualified Higher Education Expenses may differ for federal and state income tax purposes.

  • The earnings portion of withdrawals, other than Qualified Withdrawals, will be included in the taxable income of the distributee and will be subject to Wisconsin income tax.

  • Contributions to your STABLE Account, balances in your STABLE Account, and Qualified Withdrawals from your STABLE Account are all disregarded for purposes of determining your eligibility to receive, and the amount of, any assistance or benefit provided to you through a means-tested public assistance program funded only with Ohio state, Ohio local, or Ohio state and local funds.

  • There is no Arizona state income tax on Qualified Withdrawals, Rollovers, or Program-to- Program Transfers, to the extent such transactions are exempt from U.S. federal income taxation under Section 529A.


More Definitions of Qualified Withdrawals

Qualified Withdrawals. A withdrawal from an Account that is not one of the following: • A New York Qualified Withdrawal; • A withdrawal because of the death or Disability of your Beneficiary; • A withdrawal because of the receipt of a Qualified Scholarship or attendance at a military academy by your Beneficiary (to the extent the amount withdrawn does not exceed the amount of the scholarship or the cost of attendance); • An ABLE Rollover Distribution; or • A transfer of assets to the credit of another Beneficiary within the Program, as long as the other Beneficiary is a Member of the Family of the prior Beneficiary. Note for New York State taxpayers: a Federal Qualified Withdrawal where the proceeds are used to pay K-12 Tuition Expenses, Apprenticeship Program Expenses, or to make a Qualified Loan Repayment is considered a New York Non-Qualified Withdrawal and the withdrawal will require the recapture of any New York State tax benefits that have accrued on contributions. New York Qualified Withdrawal: A withdrawal from an Account that is used to pay the Qualified Higher Education Expenses of a Beneficiary.
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Related to Qualified Withdrawals

  • Qualified withdrawal means a withdrawal from an account to pay the qualified disability expenses of the designated beneficiary of the account.

  • Nonqualified withdrawal means a withdrawal from an account that is not:

  • Cash Withdrawal means a disbursement of funds in any currency from any Account out of the balance in your favour (whether or not in the form of cash) made or obtained through or in connection with any Citibank ATM/ Debit Card.

  • Voluntary Withdrawal means a Member’s dissociation with the Company by means other than by a Transfer or an Involuntary Withdrawal.

  • Involuntary Withdrawal means, with respect to any Member, the occurrence of any of the following events:

  • Elective Deferral Account means the account established hereunder to which Elective Deferrals (including a separate accounting for Catch-Up Contributions) are allocated. Amounts in the Participant's Elective Deferral Account are nonforfeitable when made and are subject to the distribution restrictions of Section 12.2(e). The Elective Deferral Account may consist of the

  • Suspension/Withdrawal Event means, in respect of the Benchmark:

  • Excess Withdrawal is a withdrawal of Account Value that exceeds the Free Withdrawal Amount. This term may not apply to your Contract.

  • Rollover Contributions means, for any Participant, his rollover contributions as provided in Section 7.1.

  • Qualified Nonelective Contributions means contributions of the Plan Sponsor or an Affiliate, other than Matching Contributions or Elective Deferrals, which are nonforfeitable when made, and which would be nonforfeitable regardless of the age or service of the Employee or whether the Employee is employed on a certain date, and which may not be distributed, except upon one of the events described under Code Section 401(k)(2)(B) and the regulations thereunder.

  • Rollover Contribution Account means the separate Account maintained for a Member to record such Member's share of the Trust Fund attributable to any Rollover Contribution made to the Plan on his behalf.

  • Catch-Up Contributions means Salary Reduction Contributions made to the Plan that are in excess of an otherwise applicable Plan limit and that are made by Participants who are Age 50 or over by the end of their taxable years. An “otherwise applicable Plan limit” is a limit in the Plan that applies to Salary Reduction Contributions without regard to Catch-up Contributions, such as the limits on Annual Additions, the dollar limitation on Salary Reduction Contributions under Code Section 402(g) (not counting Catch-up Contributions) and the limit imposed by the Actual Deferral Percentage (ADP) test under Code Section 401(k)(3). Catch-up Contributions for a Participant for a taxable year may not exceed the dollar limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) for the taxable year. The dollar limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) is $1,000 for taxable years beginning in 2002, increasing by $1,000 for each year thereafter up to $5,000 for taxable years beginning in 2006 and later years. After 2006, the $5,000 limit will be adjusted by the Secretary of the Treasury for cost-of-living increases under Code Section 414(v)(2)(C). Any such adjustments will be in multiples of $500.

  • Hardship Distribution means a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of his or her dependent (as defined in Section 152(a) of the Code), loss of a Participant’s property due to casualty, or other similar or extraordinary and unforseeable circumstances arising as a result of events beyond the control of the Participant. The circumstances that would constitute an unforseeable emergency will depend upon the facts of each case, but, in any case, a Hardship Distribution may not be made to the extent that such hardship is or may be relieved (i) through reimbursement or compensation by insurance or otherwise, (ii) by liquidation of the Participant’s assets, to the extent the liquidation of assets would not itself cause severe financial hardship, or (iii) by cessation of deferrals under this Plan.

  • Qualified Matching Contributions means Matching Contributions which are immediately nonforfeitable when made, and which would be nonforfeitable, regardless of the age or service of the Employee or whether the Employee is employed on a certain date, and which may not be distributed, except upon one of the events described under Section 401(k)(2)(B) of the Code and the regulations thereunder.

  • Member contributions means all amounts paid to ASRS by a member.

  • Accumulated contributions means the sum of all

  • Suspension/Withdrawal Event means, in respect of the Benchmark:

  • Excess Contributions means, with respect to any Plan Year, the excess of:

  • Regular election means an election held on a regular election date to elect an individual to, or nominate an individual for, elective office in the regular course of the terms of that elective office.

  • Deferral Account means the Company's accounting of the Director's accumulated Deferrals plus accrued interest.

  • Employer Contribution Account means, for any Participant, the account established by the Administrator or Trustee to which Employer Contributions made under Section 3.5 for the Participant's benefit are credited.

  • Rollover Contribution means any rollover contribution to the Plan made by a Participant as may be permitted under Article V.

  • Qualified Non-Elective Contribution means any Employer contributions made pursuant to Section 4.1(c) and Section 4.6(b) and Section 4.8(f). Such contributions shall be considered an Elective Contribution for the purposes of the Plan and may be used to satisfy the "Actual Deferral Percentage" tests or the "Actual Contribution Percentage" tests.

  • Unforeseeable Emergency means a severe financial hardship of the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, the Participant’s Beneficiary, or the Participant’s dependent (as defined in Code Section 152, without regard to Code section 152(b)(1), (b)(2) and (d)(1)(B); loss of the Participant’s property due to casualty; or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

  • Rollover Account means the account established hereunder to which amounts transferred from a qualified plan or individual retirement account in accordance with Section 4.6 are allocated.

  • Qualified Nonelective Contribution (QNEC) means the Employer's contributions to the Plan that are made pursuant to Sections 12.1(a)(4), 12.5 and 12.7 or pursuant to any other Plan provision which provides for such contributions.