Sentences with phrase «ordinary income unless»

They're taxable as ordinary income unless they're qualified dividends.

Not exact matches

Premature distributions (before age 59 1/2) are taxed as ordinary income and will carry an IRS penalty of 10 % of the distribution amount unless an allowable exception, like purchasing a first home or paying for higher education, applies.

Short - term capital gain is taxed at the same rate as ordinary income (like wages and interest income), unless you have a capital loss that eliminates it.

Otherwise, withdrawals of earnings continue to be taxable as ordinary income and, unless an exception applies, subject to the 10 % early withdrawal penalty.

If withdrawn before the first day of the fifth year after the year you first established a Roth IRA, taxable as ordinary income; also subject to the 10 % early withdrawal penalty if you're under age 59 1/2 unless an exception applies.

Here's what they say about years after the first: «After first year - the marginal rate is applied to taxable income unless the user selects an optional rate for ordinary items and for equity accounts.»

Ordinary dividends are taxed at ordinary income rates (unless qualified - see below), just like wages and most other income, as opposed to lower, capital gains taOrdinary dividends are taxed at ordinary income rates (unless qualified - see below), just like wages and most other income, as opposed to lower, capital gains taordinary income rates (unless qualified - see below), just like wages and most other income, as opposed to lower, capital gains tax rates.

Take out funds without meeting those conditions, and get docked a 10 % penalty PLUS ordinary income tax owed on the proceeds (unless it's a Roth IRA, in which case the penalty applies only to pre-mature access of the gains in the account.).

Distributions from traditional IRAs and most employer - sponsored retirement plans are taxed as ordinary income, except for any after - tax contributions you've made, and the taxable portion may be subject to 10 % federal income tax penalty if taken prior to reaching age 59 1/2 (unless an exception applies).

«there may be significant accrued gains in a Swap held by an ETF which, unless its term is extended, will be realized by the ETF as ordinary income in any year that the Swap matures or is otherwise settled.

This retirement income is then usually taxed at ordinary income rates, but the point is that there are no 10 % penalties (unless you withdraw more than the calculated amounts).

At your age, any withdrawal from the 401k that is not rolled over into another deferred account (IRA or another 401k) will be taxed at ordinary income tax rates and a 10 % penalty applied, unless an exception applies (as noted in the article).

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

These sheets were added to show the long - term results of investing in them, given the fact that they are still popular and have three unique characteristics: Insured safety of principal, all interest is taxed annually at ordinary income rates (unless it's a Roth IRA), and there are never any dividends, realized or unrealized capital gains or losses to account for.

Dividends and capital gains distributions received from the fund will generally be taxable as ordinary income or capital gains, unless you are investing through an IRA, 401 (k) or other tax - advantaged account.

Any pretax contributions and associated earnings will be taxed as ordinary income, plus you may be subject to an early withdrawal tax of 10 % if you are under age 59 1/2 (unless an exception applies).

Early withdrawals and other distributions of taxable amounts may be subject to ordinary income tax, a surrender charge, and if taken prior to age 59 1/2, an IRS 10 % premature distribution penalty tax unless an exception applies.

«The gains, however, are taxed at ordinary income rates, unless you take them out as a loan,» Silverberg cautions.

If the policy is a MEC, all distributions (withdrawals or loans) are taxed as ordinary income to the extent of gain in the policy, and may also be subject to an additional 10 % premature distribution penalty prior to age 59 1/2, unless certain exceptions are applicable.