Common use of Non-Qualified Distributions Clause in Contracts

Non-Qualified Distributions. Amounts distributed from a ▇▇▇▇ 403(b) Contributions Account that are not “Qualified Distributions” as defined in Section 10.3(a), may be distributed from a ▇▇▇▇ 403(b) Contributions Account subject to the distribution rules applicable to Elective Deferrals as described in Section 5.1. Such nonqualified distributions shall be subject to federal income tax to the extent that the amount distributed exceeds the value of the ▇▇▇▇ 403(b) Contributions.