May 23rd, 2009
fairyplant77 asked: I converted my 401k into a Roth IRA and made some early withdrawals. What version of TaxCut/TurboTax will I need to use? Can I still use the “free” versions?
John
Tags: 401k, Taxcut, Turbotax
Posted in Other - Taxes | 3 Comments »
May 23rd, 2009
jeremy283 asked: hardship withdrawal 401(k) plan
Vanessa
Tags: 401 K Plan, 401k Hardship, 401k Plan
Posted in Investing | 1 Comment »
May 16th, 2009
David T asked: A penalty free one time withdrawal allowance from your personal retirement plan be it a 401k or IRA. The amount would be limited to say, 10% or $10,000 whichever is smaller of the employee portion of the contributions to prevent those that don’t really need it from floating themselves an interest-free loan.
The payback period would be extended for a period of time before it would considered a taxable distribution to allow those that can, pay it back without having to pay taxes on it.
This would allow hardworking people to access they’re own funds to get out of whatever mess they are currently in due to the “credit crunch” and housing problems which are currently affectng the economy.
Any thoughts… Pros/Cons?
Thank you..Good responses so far. for me it would make it easier to replace my gas-guzzling SUV…
Andy -What you say is true, however there are many being penalized now just to stay afloat due to our current state. Besides penalty-free distributions are currently allowed via SEPPs. This would just be another option….
Juan
Tags: Interest Free Loan, Ira, Taxable Distribution
Posted in Government | 5 Comments »
May 15th, 2009
kellymi asked: My soon to be ex husband was a police officer and participated in a mandatory private retirement plan (worth about 90k) instead of putting into social security. I worked for a private high tech company and contributed to social security. His plan is a defined contribution plan and he can take hardship withdrawals from it. My social security isn’t accessible to me and not sure it will be when I’m 65 they way things are going. He also has a defined benefit retirement plan worth 64k. I have an ESPP worth 64k and 401k worth 61k. We live in WA if that helps. Can he say that my social security and his city plan equal out each other? How do I put a value on my Social security if so?
Gilbert
Tags: Defined Benefit Retirement Plan, Divorce, Retirement Plans
Posted in Marriage & Divorce | 3 Comments »
May 15th, 2009
leftlovin_darnright asked: My wife and I have about 25 years before we want to retire. We have $55,000 in 401k accounts. We each put 15% of our salaries into 401k. To get full corporate matching, we need to put 5% into 401k. Is putting all 15% into 401k the smart thing to do? With having to pay taxes on 401k withdrawals after retirement, I’m wondering if we are hurting ourselves by putting 15% into a 401k (instead of 5% into 401k, and 10% into other vehicles, or some other allocation). Any recommendations on where we should be invest our 15%, specifically, how much in 401k, IRA, Roth IRA, or other vehicles?
Rosa
Tags: 401k Withdrawals, Investments, Roth Ira
Posted in Personal Finance | 3 Comments »
May 13th, 2009
alwayswondering asked: We may be buying a home in the spring. *maybe*. I have a measly $3,400 in a 401k with a company I no longer work for. I am ineligible for the current company’s 401k for a while. I am attending college in 2009 and may want to buy a home with my sig. other also.
I want to rollover my 401k to a Trad. IRA but may withdraw within a few months for a home, or education expenses. I know I will pay taxes, though these are both approved withdrawals and no 10% penalty applies.
Can you suggest a low-cost IRA for me. And, can I withdraw within a few months of opening the account for these expenses? I know with a Roth IRA there is a 5year waiting time though not with Trad. IRA’s- as far as I could find.
Is is silly to withdraw these funds for this purpose? Being so minimal, I didn’t think it was a bad idea and could really help with the closing costs/down payment or education costs for the year.
Thanks for any help!
Leslie
Tags: Attending College, Rollover Ira, Traditional Ira
Posted in Personal Finance | 2 Comments »
May 11th, 2009
SharpDr08 asked: In 2006 i took out $9800 from my 401K ($8000 one time and $1800 another time). Tax was witheld when i withdrew $1800. As i look at my tax return from last year i see that i paid $980 as a 10% penalty for early withdrawal from my 401K. However, i am over 59 years of age. Should i file an Amended Return, if so where in the form do i indicate that? i looked at the 1040X form but couldn’t find the pension distribution area.
thank you
Brandon
Tags: 1040x Form, Pension Distribution, Tax Return
Posted in United States | 2 Comments »
May 11th, 2009
Kimberly G asked: 1. I am still employed with the company and I am under 59.
2. I already took a loan on it, and you are only allowed 1 loan at a time.
3. I am fully aware of penalties; that is irrelevant to me at this time.
4. I called HR and they said that I can’t close it; I can only take a hardship withdrawal (if I prove one of the 4 criteria for hardship).
It is MY money and I need it NOW–urgently! I worked for another company where I could close the 401k at any time if I wanted to. How can they prevent me from getting back MY money? CAN they, legally or otherwise, prevent me from closing it?
Christian
Tags: 401k, Hardship Withdrawal, Money
Posted in Personal Finance | 5 Comments »
May 10th, 2009
voodoo asked: I work for one company and after receiving my w2 i filed my taxes, I had forgotten about the 401k withdrawal i made in december, one month later i received a form 1099-R, stating that i have to file that with my taxes but i have already filed my taxes, so what can i do to resolve this
Chad
Tags: 401k Withdrawal, Tax Question, W2
Posted in United States | 2 Comments »
May 7th, 2009
BustedDreams asked: I’ve rolled a significant amount of money from my 401K to a Roll-over IRA to be used as a down payment on a house. I am now ready to transfer the money from the IRA to my savings account.
I have the option to have the 10% early withdrawal penalty withheld or not; with the following warning: “Regardless of your withholding election, you are responsible for the full payment of any federal income taxes, any state or local taxes and any penalties that may apply to your distribution. You may be responsible for estimated tax payments and could incur penalties if your estimated tax payments are not sufficient.”
What potential penalties do I face if I elect not to withhold and put the money in an interest earning savings account until next tax season?
Debra
Tags: Federal Income Taxes, Money Savings, Savings Account
Posted in Personal Finance | 1 Comment »
