Premature Distribution
A withdrawal prior to the age 59 1/2 from a qualified retirement plan. There are certain circumstances that will allow the distribution if specific requirements are met.
Premature distribution
Definition: [crh] A distribution from an IRA before the owner reaches age 59-1/2. Generally, a 10% penalty tax is owed on such a distribution. Also known asDefinition: an early distribution or an early withdrawal.
Premature Distribution
(Premature Distribution Penalty.) Withdrawals made from certain tax-favored plans may be subject to an additional 10% federal income tax if the withdrawal is made before the contract owner reaches age 59 1/2.
PREMATURE DISTRIBUTIONS: Withdrawals of earnings from an annuity made before the contract owner is age 591/2.
PREMIUM BONUS: Additional money credited to the annuity by the company as a percentage of the amount deposited.
Premature distributions. Withdrawals from company retirement plans subject to a 10% penalty if you're under age 55 (if you've left the job) or under age 59 1/2 (if you're still employed).
See: Premature distribution Early Exercise (assignment)
The exercise or assignment of an option contract before its expiration date.
Early withdrawal
See: Premature distribution
Early withdrawal penalty ...
Early distribution See: Premature distribution Early Exercise (assignment) The exercise or assignment of an option contract before its expiration date.
Early distribution See: Premature distribution Early withdrawal See: Premature distribution Early withdrawal penalty Penalty paid by the holder of a fixed-term investment penalizing an investor who withdraws money before the agreed-upon ...
receives disability or death benefits rather than a normal distribution, the 1099-R Box 7 frequently shows a distribution code 1, (rather than a 3 or 4) which means the distribution generally is subject to the 10 percent premature distribution ...
If premature distributions are taken before the employee reaches age 59½ and during the first two years after the employee starts participating in the plan, the penalty is 25%, not the usual 10%.
If you owe only the extra 10 percent tax on premature distributions, and distribution code 1 is shown in Box 7 of your 1099-R, you can simply enter 10 percent of your taxable distribution on Line 55 of Form 1040.
Early withdrawal
See: Premature distribution
Early withdrawal penalty
Penalty paid by the holder of a fixed-term investment penalizing an investor who withdraws money before the agreed-upon maturity date.
premature distribution The withdrawal before the age of 59 ½, from a qualified retirement plan; generally accompanied by a penalty. premise The underlying rationale or basis for an argument.
 See also: Compensation, Expense, Early withdrawal, Banks, Early distribution
  
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