Certificate Fees and Qualified Distribution
Fees
| IRS Penalty | Broadview Penalty | |
|---|---|---|
| Early Withdrawal | Additional IRS penalties may apply. | Penalty for breaking the Certificate, based on amount withdrawn and the original term length; exceptions are made for withdrawals intended to cover a required minimum distribution. |
| Early Redemption | Additional IRS penalties may apply. | Distributions are usually subject to a Broadview penalty; exceptions are made in the case of the member having died |
Qualified Distributions List
| Item | IRS Penalty |
|---|---|
| IRA owner will be at least 59 ½ years old in the applicable tax year | None |
| IRA owner becomes disabled or has died | None |
| Funds used for qualified higher education expenses | None |
|
Funds are used for a “first-time” home purchase “first-time” home purchase means:
|
None |
| Funds are used for medical insurance premiums, provided the IRA owner has been receiving unemployment insurance payments for at least 12 weeks | None |
| Funds are used to pay the portion of unreimbursed medical expenses in excess of 7.5% of the owner’s adjusted gross income | None |
| A withdrawal program has been set up as a series of “Substantially Equal Periodic Payments” that are taken over the owner’s life, and are based on the owner’s life expectancy | None |
| Once this program is set up, it cannot be changed for five years | None |
| All other withdrawals | Generally, 10% of the withdrawal |
