|
|
Penalty tax |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Penalty 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.Penalty tax Similar MatchesRedemption penalty overhangRedemption penalty overhangThis 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. 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 penaltyPenalty paid by the holder of a fixed-term investment penalizing an investor who withdraws money before the agreed-upon maturity date. Prepayment penaltyPrepayment penaltyLenders can impose a penalty on a borrower who pays a loan off before its expected end date. 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. Further SuggestionsExtended redemption penaltyOverhanging redemption penalty Penalty clause early withdrawal penalty |
|
|
|