Penalty tax

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Penalty tax

A 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

An excise tax imposed upon an unauthorized withdrawal from a retirement account, such as a 401(k) or an IRA. Most commonly, a penalty tax is assessed when one makes a withdrawal before the age of 59 1/2. See also: Hardship withdrawal.
References in periodicals archive ?
Of the tax cheating cases, 2,842 became subject to penalty taxes, the highest portion on record, pushing the amount of inheritance assets subject to penalty taxes 22.
Borrowing federal funds to pay unemployment benefits requires states to pay interest on the debt and employers in those states may have to pay additional penalty taxes to help retire the obligation to the federal government.
Top court nullifies penalty taxes on stock option income
Okamitsu has already submitted a revised income report to the tax bureau, agreeing to pay the additional and penalty taxes, they said.
has paid penalty taxes after being judged by taxation authorities to have hidden some 120 million yen in taxable revenues over seven years through March 2005, company officials said Friday.
Reminder: Neither of the penalty taxes is deductile.
to pay the unpaid tax on the rebate amount and penalty taxes.
However, Congress has also passed a variety of penalty taxes constraining these plans.
The profit fall was also blamed on penalty taxes slapped on Kyocera over transactions with overseas subsidiaries and the absence of extraordinary profit the company booked in fiscal 2003 by returning the portion of public pension assets it had managed on behalf of the government.
This will result in the Appeals Office considering the case from the agent's proposed adjustments, including the excise and penalty taxes.
said Monday it was the target of a tax audit and was ordered to pay 13 billion yen in penalty taxes over its alleged failure to pay taxes concerning transactions with overseas subsidiaries, but it will contest the order.
Such tax evaders can be subject to heavy penalty taxes.