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
Factor considered in determining amount of life insurance to purchase in order that funds will be available to pay for a child's education expenses in the event of the premature death of ...
Year in which an annually renewable insurance policy was first issued. ...
Individual who possesses a unique ability essential to the continued success of a business firm. For example, this individual might have the technical knowledge necessary for research and ...
form of BOILER AND MACHINERY INSURANCE that covers power generating plants. form of BUSINESS INCOME COVERAGE FORM that covers a utility customer's losses resulting from interruption of ...
Plan that combines a profit sharing plan with a money purchase plan. It permits the participant to maximize the flexible part of the combination (profit sharing plan) after satisfying the ...
Membership organization of companies, academics, and individuals in the insurance business whose interest is to further education and research in insurance and risk management. The ...
Coverage for a loss incurred by the insured resulting from an infringement of the insured's patent or coverage for a claim made against the insured resulting from infringement by the ...
Assistance program for the financially needy. Medicaid, also referred to as Title XIX of the Social Security Act, was enacted in 1965 at the same time as medicare. It is a joint ...
Clause in legal contracts that excuses a given party to the contract from liability for unintentional negligent acts and/or omissions. ...
Have a question or comment?
We're here to help.