Sentences with phrase «federal tax penalties»

The earnings portion of a withdrawal that you don't use for qualified higher education expenses is subject to state and federal taxes and a 10 percent federal tax penalty.

If your clients withdraw money for something other than qualified higher education expenses, they will owe federal income tax and may face a 10 % federal tax penalty on earnings.

There is a 10 percent federal tax penalty if you withdraw money from your annuity before age 59 1/2 for reasons other than death or disability (similar to the tax penalty for premature withdrawals from IRAs).

Early withdrawals, those taken prior to age 59 1/2, may be subject to a 10 % early withdrawal federal tax penalty in addition to ordinary income taxes.

There are other costs, including surrender charges of as much as 10 %, and if you sell the annuity before you reach the age of 59 1/2 you will pay federal tax penalties.

In addition, if you withdraw funds before age 59 1/2 you could be subject to a 10 % federal tax penalty as well.

Withdrawals may be subject to ordinary income taxes, and if you are under age 59 1/2, you may pay a 10 % federal tax penalty also.

However, if you withdraw money from a 529 plan and do not use it on an eligible college expense, you generally will pay income tax and an additional 10 percent federal tax penalty on earnings.

* Withdrawals from your qualified plan are taxed as ordinary income and may be subject to a 10 % Federal tax penalty if taken prior to age 59 1/2.

Internal Revenue Service rules allow account owners to make a nonqualified withdrawal of funds up to the amount of the scholarship without being required to pay a 10 percent federal tax penalty on the portion of the withdrawal that is earnings.

Early withdrawals, those taken prior to age 59 1/2, may be subject to a 10 % federal tax penalty in addition to ordinary income taxes.

Federal income tax, a 10 % federal tax penalty and state income tax and penalties apply to non-qualified withdrawals of earnings.

The information provided is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties.

Withdrawals taken prior to age 59 1/2 may be subject to a 10 % federal tax penalty.

Variable annuities are designed to be retirement investments, and because of this tax - deferral feature, there is typically a 10 % federal tax penalty on earnings withdrawn before age 59 1/2.

Federal income tax, a 10 % federal tax penalty and state income tax penalties apply to non-qualified withdrawals of earnings.

If you use the money in your account for another purpose — such as paying debt or buying a house — not only do you have to pay taxes on the money you earned through your investment, but you will have to pay an additional 10 percent federal tax penalty.

Withdrawals before age 59 1/2 may be subject to a 10 % federal tax penalty.

Federal income tax, a 10 % federal tax penalty and state income tax and penalties apply to non-qualified withdrawals of earnings.

Keep in mind that withdrawals from an annuity prior to age 59 1/2 may be subject to a 10 % federal tax penalty.

Withdrawals made before age 59.5 will likely be taxable and may be subject to an additional 10 % federal tax penalty (although there are exceptions).

However, if the funds are not used for qualified higher education expenses, then the earnings will generally be subject to federal (and possibly state) income taxes and a 10 % federal tax penalty.

If the beneficiary receives a scholarship that covers the cost of qualified expenses, you can withdraw the funds from your account up to the amount of the scholarship without incurring the 10 % federal tax penalty on the earnings portion of the withdrawal, however, the earnings portion will be subject to federal and state income tax.

If early withdrawals occur penalties may apply and earnings are taxable as ordinary income and may be subject to a 10 % federal tax penalty if withdrawn prior to age 59 1/2.

In addition, withdrawals prior to age 59 1/2 may be subject to a 10 % Federal Tax Penalty.

In general, state or local government 457 plans are not considered qualified retirement plans and early distributions from these are not subject to a federal tax penalty (though there may be state penalties).

However, if 529 account withdrawals are not used for qualified higher education expenses, they will be subject to state and federal income taxes and an additional 10 % federal tax penalty on earnings.

Traditional IRA distributions are taxed as ordinary income and may be subject to a 10 % Federal tax penalty if distributions are taken prior to age 59 1/2.

Withdrawals that do not meet these qualifications will be subject to ordinary income taxes and a 10 % federal tax penalty.

The information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties.

If you withdraw money for reasons other than qualified higher education expenses, you must pay federal and state income tax on earnings, a 10 % federal tax penalty on earnings and possibly state penalties.

Federal income tax, a 10 % federal tax penalty, and state income tax and penalties may apply to nonqualified withdrawals of earnings.

This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties.

Typically withdrawals from tax - deferred investments are taxed as ordinary income and any withdrawals taken prior to age 59 1/2 may be subject to an additional 10 percent federal tax penalty.

In addition, there is a 10 % federal tax penalty on the earnings not used for Qualified Higher Education Expenses with certain exceptions for death, disability and scholarships (to the extent of the amount of the scholarship).

In addition, there is a 10 % federal tax penalty on the earnings not used for Qualified Higher Education Expenses with certain exceptions for death, disability and scholarships.

The information in this calculator is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties.

There may be a 10 % federal tax penalty on withdrawals before age 59 1/2.

Because IRAs are intended for retirement savings, if you withdraw the money before age 59 1/2 you will owe income taxes on the distribution and may be subject to a 10 % federal tax penalty.

If used for any other purpose, you may be subject to income taxes, plus an additional 10 percent federal tax penalty on your earnings.2 Keep in mind that you, the 529 plan owner, are the one subject to taxation and any penalties - not your beneficiary.

It may not be used for the purpose of avoiding any federal tax penalties.

Withdrawals and / or other distributions of taxable amounts, including death benefits, may be subject to ordinary income tax and a possible 10 % federal tax penalty if taken prior to age 59 1/2.

Withdrawals prior to age 59 1/2 may be subjected to a 10 % federal tax penalty.

However, if you take out that money before age 59 1/2, it is subject to a 10 percent federal tax penalty.

The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties.