|
|
Penalty clause |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Penalty clauseA clause found in contract agreements that provides for a penalty in the event of default.Penalty clause Similar MatchesExtended redemption penaltyExtended redemption penaltyThis is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place. Penalty taxPenalty taxA federal tax that can be applied if a plan holder does not meet certain requirements when making withdrawals from a tax-advantaged retirement plan (for instance, if the plan holder has not reached age 59-1/2). This penalty tax is owed in addition to any income taxes due. Marriage penaltyMarriage penaltyA tax that has the effect of penalizing a married couple because they pay more tax on a joint tax return than they would if they file tax returns individually. Prepayment penaltyPrepayment penaltyA fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. Early withdrawal penaltyEarly withdrawal penaltyA charge imposed on holders of fixed term investments in the event of withdrawal prior to maturity. Further SuggestionsOverhanging redemption penaltyPrepayment penalty Redemption penalty overhang Early withdrawal penalty |
|
|
|