Minimum Distribution to Pay Tax Clause Samples

Minimum Distribution to Pay Tax. Within 90 days after the close of each Taxable Year, the Company will distribute to each Member an amount equal to the product of the Tax Percentage and the Profit allocated to the Member for the Taxable Year.
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Minimum Distribution to Pay Tax. Within 90 days after the close of each taxable year of the Company, so long as the Board has not determined in good faith that a distribution would be prohibited or create a default or event of default under the Act or any agreement to which the Company is subject, the Company will distribute an amount of cash to the Members (reduced for any prior distributions to such Members in respect of such taxable year), in proportion to their respective Membership Units, sufficient to pay the federal and state income taxes on the Profits and other items of Company income and gain (for the avoidance of doubt, taking into account any (i) allocations with respect to “section 704(c) property” and (ii) “reverse section 704(c) allocations” (within the meaning of Regulation Section 1.704-3(a)(6))) allocated to the Members in such taxable year (or with respect to such fiscal quarter, taking into account items of Profit and Loss of the Company for such taxable year through the end of such fiscal quarter), based on the highest combined marginal federal and state tax rate applicable to any Member for the taxable year (“Tax Distributions”). Tax Distributions shall be treated as an advance against distributions pursuant to Sections 4.1.2.5., 4.1.2.6, and 4.2.2.6(d). If the Board reasonably determines that the Company does not have sufficient cash (taking into account factors such as other obligations of the Company, requirements of the Act and the terms of any agreement to which the Company is subject, and the necessity or desirability to establish reserves) to make in full the Tax Distribution to all Members, then the Board shall distribute the cash available for distribution as a Tax Distribution to the Members pro rata in accordance with their respective Membership Units. For the avoidance of doubt, all Tax Distributions are required to be made to the Members pro rata in accordance the Members’ Membership Units even though one or more Members may have Company taxable income in excess of the Company taxable income allocable to other Members. Notwithstanding anything to the contrary in this Agreement, any mandated Tax Distributions shall be treated as being made in priority to all other distributions to be made pursuant to this Agreement.
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Related to Minimum Distribution to Pay Tax

  • Required Minimum Distributions You are required to take minimum distributions from your IRA at certain times in accordance with Treasury Regulation 1.408-8. Below is a summary of the IRA distribution rules. 1. If you were born before July 1, 1949, you are required to take a minimum distribution from your IRA for the year in which you reach age 70½ and for each year thereafter. You must take your first distribution by your required beginning date, which is April 1 of the year following the year you attain age 70½. If you were born on or after July 1, 1949, you are required to take a minimum distribution from your IRA for the year in which you reach age 72 and for each year thereafter. You must take your first distribution by your required beginning date, which is April 1 of the year following the year you attain age 72. The minimum distribution for any taxable year is equal to the amount obtained by dividing the account balance at the end of the prior year by the applicable divisor. 2. The applicable divisor generally is determined using the Uniform Lifetime Table provided by the IRS. If your spouse is your sole designated beneficiary for the entire calendar year, and is more than 10 years younger than you, the required minimum distribution is determined each year using the actual joint life expectancy of you and your spouse obtained from the Joint Life Expectancy Table provided by the IRS, rather than the life expectancy divisor from the Uniform Lifetime Table. We reserve the right to do any one of the following by your required beginning date. (a) Make no distribution until you give us a proper withdrawal request (b) Distribute your entire IRA to you in a single sum payment (c) Determine your required minimum distribution each year based on your life expectancy calculated using the Uniform Lifetime Table, and pay those distributions to you until you direct otherwise If you fail to remove a required minimum distribution, an additional penalty tax of 50 percent is imposed on the amount of the required minimum distribution that should have been taken but was not. You must file IRS Form 5329 along with your income tax return to report and remit any additional taxes to the IRS.

  • Early Distribution Penalty Tax If you receive a Traditional IRA distribution or a nonqualified ▇▇▇▇ ▇▇▇ distribution before you attain age 59½, an additional early distribution penalty tax of 10 percent generally will apply to the taxable amount of the distribution unless one of the following exceptions apply.

  • Adjustment of Minimum Quarterly Distribution and Target Distribution Levels (a) The Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution, Third Target Distribution, Common Unit Arrearages and Cumulative Common Unit Arrearages shall be proportionately adjusted in the event of any distribution, combination or subdivision (whether effected by a distribution payable in Units or otherwise) of Units or other Partnership Securities in accordance with Section 5.10. In the event of a distribution of Available Cash that is deemed to be from Capital Surplus, the then applicable Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution and Third Target Distribution, shall be adjusted proportionately downward to equal the product obtained by multiplying the otherwise applicable Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution and Third Target Distribution, as the case may be, by a fraction of which the numerator is the Unrecovered Capital of the Common Units immediately after giving effect to such distribution and of which the denominator is the Unrecovered Capital of the Common Units immediately prior to giving effect to such distribution. (b) The Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution and Third Target Distribution, shall also be subject to adjustment pursuant to Section 6.9.

  • How are Required Minimum Distributions Computed A required minimum distribution (“RMD”) is determined by dividing the account balance (as of the prior calendar year end) by the distribution period. For lifetime RMDs, there is a uniform distribution period for almost all IRA owners of the same age. The uniform distribution period table is based on the joint life and last survivor expectancy of an individual and a hypothetical beneficiary 10 years younger. However, if the IRA owner’s sole beneficiary is his/her spouse and the spouse is more than 10 years younger than the account owner, then a longer distribution period based upon the joint life and last survivor life expectancy of the IRA owner and spouse will apply. An IRA owner may, however, elect to take more than his/her RMD at any time.

  • Interim Distributions At such times as may be determined by it in its sole discretion, the Trustee shall distribute, or cause to be distributed, to the Beneficiaries, in proportion to the number of Trust Units held by each Beneficiary relating to the Trust, such cash or other property comprising a portion of the Trust Assets as the Trustee may in its sole discretion determine may be distributed without detriment to the conservation and protection of the Trust Assets in the Trust.