Sentences with phrase «triggering ordinary income tax»

The combination of an increasing loan balance and deductions for contract charges and fees may cause the policy to lapse, triggering ordinary income tax on the outstanding loan balance to the extent it exceeds the cost basis in the policy.

Not exact matches

So, a divestment of his specific blend of ownership assets and deferred liabilities would trigger not only a huge tax bill, but, also result in the taxation at ordinary income tax rates.

A regular withdrawal (before age 65) from your 401k will automatically trigger a 10 % penalty plus taxes at your ordinary income rate, so this should be avoided at all costs.