Common use of Qualified Distributions Clause in Contracts

Qualified Distributions. Qualified distributions from your ▇▇▇▇ ▇▇▇ (both the contributions and earnings) are not included in your income. A distribution is qualified only if it is made after the expiration of the five (5) year period beginning January 1 of the first year for which you made a contribution to any ▇▇▇▇ IRA1 (a distribution which includes amounts converted from a traditional IRA or pretax contributions rolled over from a qualified plan is subject to a separate five (5) year period if the conversion or rollover is not the first contribution made to any of your ▇▇▇▇ IRAs), and in addition at the time of the distribution at least one of the following must apply: • you have attained age 59½, or • it is used toward the expenses of a first-time home purchase subject to a lifetime limit of $10,000, or • made because you are disabled (within the meaning of section 72(m)(7) of the Internal Revenue Code) or • made to your beneficiary due to your death. 1 If your first contribution to a ▇▇▇▇ ▇▇▇ is made for the 2020 tax year, the five-year period is satisfied as of January 1, 2025. Please be aware we do not report a Qualified Distribution on form 1099 R if your ▇▇▇▇ ▇▇▇ with the program has been opened for less than five (5) years, however if you have satisfied the five (5) year period you may report it as a Qualified Distribution by filing IRS Form 5329 along with your income tax return to the IRS. Distribution for expenses of a first- time home purchase are not reported as a Qualified Distribution by your ▇▇▇▇ ▇▇▇ custodian, you are required to file IRS Form 5329 along with your income tax return to the IRS to report it as a Qualified Distribution.

Qualified Distributions. Qualified distributions from your ▇▇▇▇ ▇▇▇ (both the contributions and earnings) are not included in your income. A distribution is qualified only if it is made after the expiration of the five (5) year period beginning January 1 of the first year for which you made a contribution to any a ny ▇▇▇▇ IRA1 (a distribution which includes amounts converted from a traditional IRA or pretax contributions rolled over from a qualified plan is subject to a separate five (5) year period pe riod if the conversion or rollover is not the first contribution made to any of your ▇▇▇▇ IRAs), and in addition at the time of the distribution at least one of the following must apply: • you have attained age 59½, or • it is used toward the expenses of a first-time home purchase subject to a lifetime limit of $10,000, or • made because you are disabled (within the meaning of section 72(m)(7) of the Internal Revenue Code) or • made to your beneficiary due to your death. 1 If your first contribution to a ▇▇▇▇ ▇▇▇ is made for the 2020 tax year, the five-year period is satisfied as of January 1, 2025. Please be aware we do not report a Qualified Distribution on form 1099 R if your ▇▇▇▇ ▇▇▇ with the program has been opened for less than five (5) years, however if you have ha ve satisfied the five (5) year period you may report it as a Qualified Distribution by filing IRS Form 5329 along with your income tax return to the IRS. Distribution for expenses of a first- first-time home purchase are not reported as a Qualified Distribution by your ▇▇▇▇ ▇▇▇ custodian, you are required to file IRS Form 5329 along with your income tax return to the IRS to report it as a Qualified Distribution.