Sec 72(t) Penalty Tax

A 10% penalty for premature ditsributions from a tax-advantaged or qulified plan.

Substantially Equal Periodic Payments Exception

Under this exception to the 10% penalty tax for premature plan withdrawals, payments can begin at any age to meet ongoing financial needs as long as certain requirements are met.

Eligible Rollover Distribution

The term used to describe a distribution from a qualified plan that qualifies for rollover treatment.

Rollover

A payment made to a participant from one type of tax-advantaged retirement plan that is subsequently deposited within 60 days into another tax-advantaged retirement plan.

Direct Rollover

A distribution from a qualified plan that is transferred, at the request of the participant, directly to an IRA or othe qualified plan. 

Net Unrealized Appreciation

NUA

The portion of a distribution that may not be subject to current income tax treatment when employer securities are part of a lump-sum distribution made to a participant.

Lump-sum Distribution

A distribution from a qualified plan that is eligible for special income tax treatment.