Common use of Substantially Equal Periodic Payments Clause in Contracts

Substantially Equal Periodic Payments. You are not subject to the additional 10% early withdrawal penalty tax if you are taking a series of substantially equal periodic payments (at least annual payments) over your life expectancy or the joint life expectancy of you and your beneficiary. You must continue these payments for the longer of five years or until you reach age 59½. If you take payments to pay for unreimbursed medical expenses exceeding 7.5% of your adjusted gross income, you will not be subject to the 10% early withdrawal penalty tax. The medical expenses may be for you, your spouse, or any dependent listed on your tax return. If you are unemployed and have received unemployment compensation for 12 consecutive weeks under a federal or state program, you may take payments from your ▇▇▇ to pay for health insurance premiums without incurring the 10% early withdrawal penalty tax.

Substantially Equal Periodic Payments. You are not subject to the additional 10% early withdrawal penalty tax if you are taking a series of substantially equal periodic payments (at least annual payments) over your life expectancy or the joint life expectancy of you and your beneficiary. You must continue these payments for the longer of five years or until you reach age 59½. If you take payments to pay for unreimbursed medical expenses exceeding 7.5% of your adjusted gross income, you will not be subject to the 10% early withdrawal penalty tax. The medical expenses may be for you, your spouse, or any dependent listed on your tax return. If you are unemployed and have received unemployment compensation for 12 consecutive weeks under a federal or state program, you may take payments from your ▇▇▇ IRA to pay for health insurance premiums without incurring the 10% early withdrawal penalty tax.