Early Withdrawal

Posts Tagged ‘early withdrawal penalty’

Question: Trust Account Question Concerning Bank Foreclosures?

My mother has $100k in a CD, she also has 3 other CDs in the same bank (Wachovia) for a total of approx $60k. The CDs are in a trust account bearing my brother’s and my name. Q: Because it is a trust acct under 2 people’s names does the $100k FDIC rule apply here (meaning she’s covered under FDIC for the full $160k)? Or is it considered just 1 name (“trust”) and therefore she should get out the $60k ASAP and put it in another bank. Wachovia seems to be in trouble and I don’t want to see her lose $60k (even tho she’d get a penalty for Early Withdrawal as these CD’s don’t mature till November 2008). TY for responding.

Answer: It is actually insured by the FDIC for $100k per account. You are completely covered for each account.
Wachovia is the worst bank on screwing people. I would take those to Wells Fargo right away. If you can wait til November it would be great, but I’m not sure I would be willing to trust them.
While each account might be covered, it is still in your best interest to get away from them asap. They will underhandedly try and find a way to take peoples money to cover the cost of their dealings under the table. When they go under, they will be fudging paperwork left and right to cover their exec’s who are stealing money. They will especially hit the highest accounts because they figure those are the people who won’t miss a few hundred dollars missing.

Javaid Kiyani – FREE Property CD (Property Investing Investment)

Question: Early Withdrawal From Roth Ira Question?

The value of my ROTH IRA currently is less than what it was when I first opened the account. If I withdraw the money today, will I still be charged an Early Withdrawal Penalty?

Answer: no. you’ve already paid taxes on your contributions. you can actually take your contributions out at any time for any reason completely tax free in a Roth. you only ever have to pay the penalty on earnings, which in your case doesn’t even apply.

but i would suggest that you use this as a last resort. this is a retirement account. you can’t just put all the money back into it if you change your mind.

there won’t be any tax penalties, but the opportunity cost will be huge.

The Balancing Act Show 1103 – Homewatch International

Question: Do I owe 10 Early Withdrawal Penalty on IRA conversion?

I’m under 59.5 years of age. Let’s say I withdrew $100 from State Retirement Agency. I rolled it over into Rollover IRA and then converted the entire $100 into Roth IRA. I understand I owe income tax on $100 conversion, but do I owe 10% penalty on $100 conversion due to my age?
Well, I received is if the state agency sent me the check 1st and then I send the IRA fiduciary company the check within 60 days. Does the 10% penalty still not hold?

Answer: again, a distribution is not a conversion
if you withdraw $100 from your IRA you will pay the 10% penalty if you are under 59 1/2
if you convert $100 to a Roth, you will pay the income tax on it for the conversion
but once you convert to the Roth it is no longer taxable upon distribution

Die 5 Biologischen Naturgesetze – Die Dokumentation