IRA Distributions
Amounts are withdrawn from IRAs. Distributions are included in the recipient’s income unless properly rolled over
Explore
Involuntary cash-out
Definition An involuntary distribution of a participant’s balance or $5,000 or less, under a qualified plan, 403(b) or 457(b) plan, which occurs when the participant
First-Time Homebuyer Distribution
Definition A distribution from an IRA used by a first-time homebuyer to buy, build, or rebuild a first home or first-time home. A first-time homebuyer
Fair Market Value (FMV)
Definition The market value of a retirement account as of a particular date. In general, the fair market value of a plan’s assets is the
Excess distribution
Definition The aggregate amount of the retirement distributions with respect to any individual during any calendar year to the extent such amount exceeds the greater
Excess accumulation estate tax
Definition 15 % tax that used to apply to excess distributions, which are defined as the aggregate amount of the retirement distributions with respect to
Excise Tax
Definition Also referred to by retirement plan practitioners as ‘penalty’. An excise tax is a penalty tax assessed by the IRS on certain transactions or
Eligible rollover distribution (ERD)
Definition A distribution that is eligible to be rolled over to an eligible retirement plan. Eligible rollover distributions include a participant’s balance in a qualified
Early Withdrawal Penalty
Definition A penalty that applies to certificates of deposit (CD)s ( or time deposits) from which withdrawals are made before the maturity date. The penalty
