Nontaxable Distribution

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Dictionary Says

Definition of 'Nontaxable Distribution'

A type of dividend that is paid to shareholders of a corporation not as a result of earnings, but as a return of capital. Nontaxable distributions can also include stock received from a spinoff. Dividends paid to cash-value life insurance policyholders are also considered nontaxable returns of capital.
Investopedia Says

Investopedia explains 'Nontaxable Distribution'

Shareholders who receive nontaxable distributions must reduce the basis in their stock accordingly. Upon the sale of the stock, the resultant gain or loss will be calculated from the adjusted basis. Nontaxable distributions are generally reported in box 3 of the Form 1099-DIV.
Search results for

'Nontaxable Distribution'

  • Avoiding IRS Penalties On Your IRA Assets

    http://www.investopedia.com/articles/retirement/03/081303.asp
    ... Form 8606 serves to notify the IRS of the nondeductible contribution and helps
    you determine the portion of a distribution that is nontaxable. ...

  • It's December - Do You Know Where Your IRA Statements Are?

    http://www.investopedia.com/articles/retirement/04/010704.asp
    ... The instructions for Form 8606 include information to help you calculate and
    determine the taxable and nontaxable amount of your distribution. ...

  • Tax Treatment Of Roth IRA Distributions

    http://www.investopedia.com/articles/retirement/03/030403.asp
    ... contributions and from nontaxable conversions of a Traditional IRA can be taken
    at any time, tax and penalty free. A nonqualified distribution of taxable ...

  • Roth IRAs: Distributions | Investopedia

    http://www.investopedia.com/university/retirementplans/rothira/rothira3.asp
    ... in 2010 rather than 2007, so he cannot make a qualified distribution until January
    1 ... The $5,000 representing nontaxable conversion will be tax and penalty free. ...

  • Avoiding Too Much Tax On Your Distributions

    http://www.investopedia.com/articles/retirement/05/nondeductibleIRA.asp
    ... gains (if there are any). Therefore, each distribution is partly nontaxable
    and partly taxable. To calculate this, add the total ...

  • Asset Distributions A Key Consideration For Retirees

    http://www.investopedia.com/articles/retirement/08/qualified-plan-distributions.asp
    ... based on his or her cost basis to the retirement plan, can determine the nontaxable
    portion of each distribution in conjunction with the annuity schedule. ...

  • How After-Tax Rollovers Affect Your IRA

    http://www.investopedia.com/articles/retirement/04/092904.asp
    ... The instructions for filing Form 8606 explain the steps for determining the taxable
    and nontaxable portions of the distribution and/or Roth conversion amount. ...

  • 529 Plans: Distributions | Investopedia

    http://www.investopedia.com/university/retirementplans/529plan/529plan4.asp
    ... educational assistance; any other nontaxable payments (other than gifts, bequests
    or inheritances) received for education expenses. The distribution is included ...

  • Exceptions To The 60-Day Retirement Account Rollover Rule

    http://www.investopedia.com/articles/retirement/05/041105.asp
    ... year of the distribution; or your application for extension to the IRS was approved -
    you must report the amount on your tax return as nontaxable to exclude ...

  • Retirement Plan Tax Form 8606: When To File

    http://www.investopedia.com/articles/retirement/04/030304.asp
    ... to a traditional IRA and the rollover includes nontaxable amounts. In those situations,
    a Form 8606 is completed for the year you take a distribution from that ...

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