Archive for August, 2007
Early Withdrawal Of Ira
August 25th, 2007
Question: Early Withdrawal of a Roth IRA will result in taxes and penalties on any income… but what if it lost money?
Are you still penalized for Early Withdrawal. (I’m under 59 1/2 and the money has been in a Roth ira for ten years.)
Thanks
Answer: You don’t pay tax or penalty if you simply remove your original contributions. If you take an unqualified distribution of any gains — that is, subject to the 5-year and age 59 1/2 rules — your the distribution is taxable and subject to the 10% penalty.
You can take a deduction for losses in Roth IRAs if you liquidate ALL Roth accounts for less than your original investments. This is taken as a miscellaneous itemized deduction on Schedule A, subject to the 2% floor. (This is also an AMT item, so be careful!)
Investing & Retirement Funds : IRA Early Withdrawal Rules
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Ira Withdrawal Unemployed
August 24th, 2007
Question: Regular IRA Early Withdrawal??
my annual income for 2007 is $60,000. I’m still employed but I buy my own health insurance and my employer doesn’t re-emuburse it.
I paid 12X$300 =$3,600 so far and I have incured a medical bill for about $3,000; Total $6,600, greater than 7.5% of AGI
1.I have a rollover IRA which is hard to manage ($4000) and I would like to withdraw it bcz of above situation.Can I avoid 10% extra tax..
2.Do I have to take the distribution by the end of year, incase I can claim the above health care expense?
How much can I withdraw without penalty?
friend of mine says I need to be UNEMPLOYED TO CALIM HEALTH INSURANCE PREMIUM?
Can I claim any of the above health care expense during my next Tax filing. Every year I use only standard deduction..
Any help is greatly appreciated..
Can I also claim supplemental insurance premiums like Dental & Accidental policies??
Answer: The only way you can withdraw qualified money prior to 59 1/2 without paying the penalty is by using “72t” or “72q”. Go to www.irs.gov, or better yet talk to an accountant.
ira part 3