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Periodic Payments

   Also found in: Legal 0.01 sec.
Periodic payments
A series of payments from an annuity, qualified retirement plan, or 403(b)(7) account made over a certain term of years. A payment from an IRA, even if over a period of years, is not considered a periodic payment for tax purposes.

Periodic Payments
Payments that an account holder makes to a retirement plan each month or year over a period of time. Periodic payments are normally made over the course of one's working life in preparation for withdrawals after retirement. Periodic payments are common for many annuities as well as a variety of retirement options, including IRA, 401(k), and 403(b) plans.


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The IRS argued in Tax Court that a taxpayer who elects a series of substantially equal periodic payments is not allowed any further distributions within the first five years of the election irrespective of whether the distribution would qualify for another statutory exception to the section 72(t) tax, unless the employee dies or becomes disabled.
According to Georgia law, in order to state a claim for the modification of alimony payments the petitioner must demonstrate to the court that (1) the final decree awarded permanent alimony payments payable by (or to) the petitioner, and (2) the permanent alimony payments are payable in periodic payments rather than in a fixed or lump sum award (which is not subject to modification).
Insurance firms typically guarantee these periodic payments for a defined length of time such as 20 years, your entire life, or the lifetime of you and your spouse.
 
 
 
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