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What are the tax consequences of cash withdrawals and/or settlements from the awarded contracts?

April 26, 2017cash consequences contracts settlements tax withdrawals

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What are the tax consequences of cash withdrawals and/or settlements from the awarded contracts?

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All withdrawals or settlements by the alternate payee will be subject to ordinary income taxation. Withdrawals initiated prior to the alternate payee attaining age 59½ are not subject to the 10 percent early withdrawal penalty.