Rollover And Withholding Rules For Qualified Plan Distributions
Definition of "Rollover and withholding rules for qualified plan distributions"
Rules stating that every administrator of a qualified pension plan, profit sharing plan, section 401 (K) plan salary reduction plan), section 403(b) plan, and stock bonus plan must provide the employee the option to directly roll over all or part of that employee's distribution to an individual retirement account (IRA) or to another qualified plan. Any part of the distribution that has not been directly transferred to another qualified plan is subject to a mandatory 20% withholding subject to federal income taxes. Employees have 60 days within which to directly transfer their distribution to another qualified plan. The only distributions that may not be rolled over are the following: periodic payments that continue for at least ten years; minimum required distribution amounts paid to employees who are at least age 70'A; and periodic payments made at least annually and based upon the life or joint lives of the employee and the employee's designated beneficiary.
Popular Insurance Terms
Federal statute that permits the self-employed a 100% tax deduction for the family health care expenses to include health insurance premiums, disability INCOME insurance premiums, and ...
One that combines the two forms of ownership, stock and mutual. A stock insurance company is owned by stockholders, whereas a mutual insurance company is owned by its policyholders. A mixed ...
Method for triennial examination of insurance companies as established by the national association of insurance commissioners (NAIC). Teams are composed of representatives from several ...
In some states, principle of tort law providing that in the event of an accident each party's negligence is based on that party's contribution to the accident. For example, if in an auto ...
Addition to the pure cost of insurance that reflects agent commissions, premium taxes, administrative costs associated with putting business on an insurance company's books, and ...
1% of the loan amount paid to the lender for making a loan. ...
Assumption of total disability when an insured loses sight, hearing, speech, or a limb. When such a loss occurs to an insured with disability income insurance, the insurer often assumes ...
Single limit insurance program remaining in force for several years as compared with traditional insurance programs where there is a series of annual limits. The LUMP insurance program is ...
Removal of money from an individual life insurance policy or an employee benefit plan. A cash withdrawal from a life insurance policy reduces the death benefit by the amount of the ...
Have a question or comment?
We're here to help.