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What happens in the event of death or disability of the beneficiary?

April 26, 2017Beneficiary death disability event happens

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What happens in the event of death or disability of the beneficiary?

3 Answers

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If the distribution is made due to the death or disability of the beneficiary, the earnings portion of such a withdrawal is subject to federal income tax but is not subject to a 10% additional federal tax. No Michigan income tax is due on such a distribution.

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If the distribution is made due to the death or disability of the beneficiary, the earnings portion of such a withdrawal is subject to federal income tax but is not subject to a 10% additional federal tax.

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Posted

If the distribution is made due to the death or disability of the beneficiary, the earnings portion of such a withdrawal is subject to federal income tax but is not subject to a 10% additional federal tax. No Vermont income tax is due on such a distribution.