Early Withdrawal

Archive for December, 2008

Question: withdrawal from Rollover IRA b/c unemployed — avoid taxes/penalty?

In 2007 I withdrew from my Rollover IRA because of unemployment…(still had bills to pay!!!)

Answer: There are exceptions to the %10 Penalty but unemployment or paying bills arent one of them. I would read the exception rules in pub 590. The most common exception is disability, but there are others such as buying a 1st home, or buying medical insurance and medical expences.

Even if you aviod the penalty, you will still have to add the amount to your income and pay tax on it.

EXPLOSIVE! OBAMA TO CRUSH BANKING SYSTEM, CONFISCATE IRAs, 401KS

Question: What if withdrawals from IRAs and 401Ks were made TAX EXEMPT and fee free temporarily to help the economy?

Then people could use their own money to make ends meet, cover expenses after unemployment runs out or transfer funds from losing mutual funds to pay down high interest credit cards and 2nd mortgages.

Answer: How did you know my unemployment just ran out?
If I could get it tax exempt, I would, but what would I have for retirement? Nothing anyway maybe the way it is dropping. I would be better paying off the house and using that for my retirement plan. I don’t think it is ’savings’ if it is in unmutual funds or any stocks. My international fund is the only one that has not dropped 15 to 20 % since opened past year. That could change too. I want to a less expensive place to live before all retirement funds are gone.

Private Hard Money Lending – Self-Directed IRA Information