Nonperiodic Distribution
 |
Definition of 'Nonperiodic Distribution'A type of employee retirement-plan distribution that is not considered a periodic distribution. Periodic distributions would include monthly payments, while nonperiodic payments would be one-time lump-sum payments.Nonperiodic distributions that are paid directly to the employee will be subject to a 10% withholding tax unless the beneficiary elects to have no taxes withheld. |
 |
Investopedia explains 'Nonperiodic Distribution'Nonperiodic distributions do not include IRA transfers and/or rollovers, systematic withdrawals or required minimum distributions. Only taxable distributions that are taken in cash are subject to the withholding tax.The withholding rule is intended to discourage employees from raiding their retirement assets before they are retired. |
Related Definitions
Articles Of Interest
-
Avoiding Too Much Tax On Your Distributions
IRA assets can't be taxed twice - find out how to avoid paying the second time around. -
9 Penalty-Free IRA Withdrawals
If you need to take early distributions, find out which exemptions allow you to avoid expensive consequences. -
3 Retirement Account Rules To Know
Stay up-to-date on regulation amendments to avoid penalties as well as take advantage of new opportunities. -
I've heard that workers who don't roll over their 401(k)s after retiring face some problems related to estate planning. I was told it was some type of final 2002 government regulation. Is this true?
I am not sure to which government regulation your contact was referring. However, here is what I can tell you. In 2002, the IRS issued final required minimum distribution (RMD) regulations affecting ... -
My husband has a 401(k) account which is 100% vested with an $8,000 balance. We are in foreclosure and need a hardship withdrawal. The investment management company which handles my husband's account says we can't withdraw anything because we have not con
Unfortunately, the conditions under which hardship withdrawals can be made from a qualified plan, including a 401(k) plan, are determined by the provisions in the plan document (as elected by ... -
What are the rules and reporting requirements for a rollover of a required minimum distribution (RMD)?
An RMD may be transferred between IRAs, but it may not be rolled over once distributed. If the RMD amount is rolled over to an IRA, it will be treated as an ineligible rollover contribution and ... -
How To Start Saving For Retirement
If you establish these money-saving habits and patiently allow your wealth to build, you will be taking some huge steps forward in making your financial future more secure. -
An Introduction To The Keogh Retirement Plan
Learn more about this popular defined-contribution retirement plan that many business owners, proprietors, and self-employed people can benefit from. -
How To Buy Annuities (And When Not To)
Annuities are complicated products that require some basic homework to be done before requesting quotes. Retirees will want to think about how they envisage their lifestyle and even their potential ... -
How To Profit From Risk
CDs may look safe and attractive but considering most pay a rate that is less than the rate of inflation seniors today risk actually losing money with CDs. We need to be our own money managers ...
Free Annual Reports
