RSS
 

Posts Tagged ‘withdrawal’

401K to IRA to Withdrawal – Retired, Age 67?

20 May

Hello! My mom would like to help me buy my first house, but I do not want her to loose any $$ in the process. She is retired, age 67 and her money is still in a 401k from her old employer. She has no other income besides Social Security (under $1k/month). Depending on the answers, she may withdraw up to $60k.

The first question – should she rollover from the 401k to an IRA?

2nd question – if she withdraws money will she have to pay the 10% penalty?

3rd question – what are the chances of her having to pay no or little taxes on what she withdraws? (If she withdraws $60k, is it like her earning $60k in income that year? and that is how the tax is calculated?)

I have promised to pay her back any money she ends up paying in penalties or taxes, but she is worried that amount will be to much. Thanks all for your time and help. Me and mom appreciate it!!

 
3 Comments

Posted in Uncategorized

 

401K In-Service Withdrawal Into An IRA Rollover?

14 May

In 2006, I took a pre-approved In-Service withdrawal from my 401K in the amount of $28,000 and it was directly deposited into a Rollover IRA within 2 days. This allowed me greater flexibility with investment choices. What, if any, are the tax consequences? (Yes, I am asking after the fact!) Thank you in advance!

 
2 Comments

Posted in Uncategorized

 

Pre-tax 401K vs. After-tax IRA and the Early Withdrawal Penalty?

08 May

I was curious about something with regard to the 10% penalty for early withdrawals from an IRA. Let’s say someone had taken an early distribution from an IRA and did not qualify for any of the exceptions. That person is theoretically going to get hit with the 10% penalty on top of the 10% that was pre-emptively withheld as income tax when the distribution was paid out. However, let’s also say that some of the IRA was contributed to with after-tax income (a pre-tax 401K was rolled over into an IRA, into which ongoing contributions were made via after-tax income). Here are my questions:

- So, even though 10% was already taken out of the distribution as income tax, the person will still have to pay another 10% on the gross distribution amount as a penalty? So, in essence, the total penalty (not even including the fact that the distribution also counts as income) is 20% in this case?

- Why is the after-tax portion of the IRA treated as punitively as the pre-tax portion?

Thank you for your responses.

 
3 Comments

Posted in Uncategorized

 

How do you take out an early 401k withdrawal?

21 Apr

I see all over the internet people mentioning cashing in their 401k early to pay off debt. I just tried to do that exact same thing, yet according to my representative, (who put me on hold to verify with someone else) there is not one single legal way I can cash in my 401k early without qualifying for a Hardship Withdrawal and providing proof from a very limited list of acceptable documents for them to investigate.

Which is the truth here: Have people closed out their 401k early to pay off debt, or is there no legal way to do so?

 
7 Comments

Posted in Uncategorized

 

If rollover a 401k to a rollover IRA, when can I withdrawal from it after the rollover?

21 Apr

like if you have emergency and may need a large sum of money, can it be done?

 
3 Comments

Posted in Uncategorized

 

how do I make a withdrawal from my 401k/IRA and how long does it usually take?

21 Apr

I am not employed either. Do I get taxed or anything for taking money out? Is it considered a loan?

 
3 Comments

Posted in Uncategorized

 

401K and Roth IRA withdrawal tax implications?

19 Apr

I am age 61 and would like to use my 401K and Roth IRA money to buy a house. If I withdraw this money, it it considered income or can I just use it for the down payment and not owe any tax?

 
3 Comments

Posted in Uncategorized

 

what will be my (income) tax rate for 401K withdrawal after retirement?

16 Apr

Let’s say I’m 65 years old now, not yet retiring. My current income is about $200K, so my income tax rate is the highest (state & federal.)

In a few years, I will retire and plan to withdraw about $50K per year from my tax-deferred 401K account.

What will be my tax rate then?

 
6 Comments

Posted in Uncategorized

 

I am looking @ withdrawing from my IRA rollover from a previous 401k? Can I take a partial withdrawal or all?

16 Apr

Am in a situation where for piece of mind I would like to pay off some debts. I realize the taxing and what not and I am not yet eligible to start a 401k @ my new employer, however, I know i am still young, and can learn from this

 
4 Comments

Posted in Uncategorized

 

401K- Rollover or withdrawal?

09 Apr

I just recently got laid off from my job of 6 years. I invested in the companies 401K program and I see I have a nice amount saved in my 401k account. Since I am no longer an employee what should I do with this money. Right now im kinda ok on my feet but I know after the holidays come around im going to be broke and its hard to find a job in the mortgage industry. I kinda want to take the rest of the year off anyway. Should I pull out and take the 20% cut the feds will take. Should I rollover to an IRA (Whatever that is) or should I invest it in some other account? Im confused and need suggestions before I make the calls to the 401k people and my tax man.
No I already have a 401K.

 
7 Comments

Posted in 401k Rollover Tax

 

Would allowing a one time limited amount withdrawal from 401k plans without penalties be helpful to economy?

08 Apr

In the present economy, what would be the impact of allowing folk a one time withdrawal from their 401k plans without the penalties to pay down debt, catch up behind payments, do home repair or to make targeted purchases to help stimultate the economy. I’m thinking a maximun of 20% of their present balance. And write into law that this can only be done during national emergencies and only in 10 year time spans.

 
3 Comments

Posted in Uncategorized

 

Anyone make a hardship withdrawal from 401k with fidelity for home repairs…anyone been denied? if so, why?

04 Apr

We need a new furnace/air conditioner, the furnace is very old and is deemed dangerous by the furnace repair man that was here yesterday…We also have had a leaky pipe that damaged our kitchen, which will entail, drywall, new cabinets, flooring, etc…would these repairs be acceptable for the hardship withdrawal?

 
3 Comments

Posted in Uncategorized

 

How to Tap Your IRA or 401 and Escape Tax: The 60 Minute Guide to the Early Withdrawal Rules

27 Mar

Buy Cheap How to Tap Your IRA or 401 and Escape Tax: The 60 Minute Guide to the Early Withdrawal Rules

 
No Comments

Posted in Uncategorized

 

Did I do my taxes wrong? 401k rollover withdrawal?

24 Mar

I got laid off late last year and I withdrew my 401k money that went into a rollover IRA from my employer (it was only about $3000). When I did my taxes I said that I withdrew the money, but I also claimed that it was a rollover, because it was. I got a big tax refund back, but I was just talking to my mom and she said that I should have only done it as a withdrawal. Now I’m scared that the IRS will catch it and ask me for money. So, did I do my taxes wrong?

 
3 Comments

Posted in 401k Rollover Tax

 

What penalties would I incur if I withdrawal from my 401k after tax monies?

22 Mar

Here is my question. Say I want to withdrawal a certain amount of money from my 401k after tax money, would I have a penalty in doing so? I am not knowledgeable about this and looking for info.

 
5 Comments

Posted in Uncategorized