Common use of Premature Distributions Clause in Contracts

Premature Distributions. Before any distribution is made from the Custodial Account, except in the case of the Participant's death or disability (as defined in section 72(m) (7) of the Internal Revenue Code) or attainment of age 59 1/2, the Participant must furnish the Custodian with a declaration of his intentions as to the disposition of the amount to be distributed; however, the Custodian assumes no responsibility for the tax treatment of any distribution from the Custodial Account; such responsibility is solely that of the Participant ordering the distribution.