Sentences with phrase «nonqualified distributions»

Also, all qualified distributions are tax - free, but as with any other retirement plans, nonqualified distributions from a Roth IRA may be subject to a penalty upon withdrawal.

Nonqualified distributions from this plan are included in Illinois taxable income to the extent of prior Illinois deductions.

And remember, even nonqualified distributions will be taxed (and possibly penalized) only on the investment earnings portion of the distribution, and then only to the extent that your distribution exceeds the total amount of all contributions that you have made.

Nonqualified distributions are distributions that are not being used to cover educational expenses.

Effective January 1, 2009, nonqualified distributions from this plan are included in Illinois taxable income to the extent of prior Illinois deductions.

For nonqualified distributions, earnings are taxable and may be subject to a 10 % early withdrawal penalty.

One can also take a nonqualified distribution.

In most cases this will not present a problem because the rules for Roth IRAs allow you to withdraw your basistax - free even when you take a nonqualified distribution.

Your basis is the amount you contributed to the designated Roth account if your rollover is a nonqualified distribution.

Even though you've had the Roth 401k account more than five years, this is a nonqualified distribution if you aren't over 59 1/2 or disabled.

When you take a nonqualified distribution from this account, you have to report taxable income in proportion to the account's earnings when you take a distribution.

The earnings portion of a nonqualified distribution is subject to ordinary income tax and a 10 % tax penalty, unless an exception applies.

Not exact matches

In addition to capital gains distributions, fund distributions may include nonqualified ordinary dividends (taxed at ordinary income tax rates), qualified dividends (taxed at rates applicable to long - term capital gains if holding period and other requirements are met), exempt - interest dividends (not subject to regular federal income tax) and nondividend, or return of capital, distributions, which are not subject to current tax.

Distributions for nonqualified expenses or to schools that are not qualified educational institutions, may be subject to a 10 % early distribution penalty on any earnings.

If there are distributions for nonqualified expenses or to schools that are not qualified educational institutions, the distribution may be subject to a 10 % penalty.

Withdrawals from Roth IRAs can be either qualified, one of which that provides for tax - free distribution of earnings, or nonqualified, in which earnings are subject to tax.

With a nonqualified, you avoid taxes until you start getting distributions.