Archive for November, 2009
Ira 72t
November 26th, 2009
Question: You have an IRA account that you are getting a 72t payment.Can you take an IRA disbursement without canceling?
We have a need to take some money from the IRA account but found that it may end the 72t Payments. Is this always true?
Answer: If you modify your payment method once it begins, the 10% penalty, plus interest, will be applied retroactively beginning with the first year of distribution. Therefore, you cannot take more than the scheduled yearly amount without a huge penalty.
Posted in 72t Distribution | 
Tags: 72t, finance, ira, ira 72t, ira 72t calculator, ira 72t distribution, ira 72t guidelines, ira 72t rules, retirement, tax | 
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Ira Withdrawal Life Expectancy
November 23rd, 2009
Question: Ira Withdrawal?
What is the minimum percent that I can withdraw from my IRA when I reach 70 1/2. I know it is based on life expectancy but I do not know what it is. Also, about 1/2 of my IRA consists of closely held unlisted stocks.. will I be required to get some sort of apprasial or valuation on them when I reach 70 1/2 or will they take my word for their approximate value??
Answer: You need more than the calculation of the required minimum distribution. The closely held stock should not be in the IRA. It may be possible to have this outside the IRA and have it qualify for capital gain treatment if you sell it. I strongly suggest that you seek qualified professional help from an attorney or a CPA.
Early Withdrawal From Ira Due To Disability
November 15th, 2009
Question: IRS Offer in Compromise because I am on general assistance? Do I need to provide records of that?
All I have from the county is a computer print-out which they stamped — it’s not on letterhead. The print-out and a debit card.
I owe $388 because I took Early Withdrawal Of Ira funds due to disability. I have some disability documents
I am homeless and the grant from the county is $300 a month. I would have to pay the tax bill out of the welfare money — a definitive economic hardship.
I don’t have to pay the $150 filing fee because my only income is welfare and that is below the federal poverty line. The income levels are on the worksheet. So it’s worth a try.
Answer: You do not have to include a copy with it, as long as the form 656 is completed
You can call the IRS and they can put a hardship hold on your account that will stop collection activity, you will get a yearly reminder of the debt, but it would give you the oppurtunity to pay it in the future if your circumstances change