Posts Tagged ‘early’
Early Withdrawal Ira
June 30th, 2011
Question: Early Withdrawal from IRA for first home, BUT for finishing the home?
This is my first home, got mortgage approx. 6mos. to 1 year ago (I should know that!), and I still have things that need to be finished. I understand you can withdrawal early from your IRA for a first home – $10,000, but does that have to go right to the mortgage company or can I finish the house with the money? It would all be spent on the house, just not directly on the financing. Its just taking me longer than I thought to finish this darn thing – the kitchen, appliances, etc.!
And think of this Mr. IRS man, all that money would help the economy! Home depot, sears, lowes… lol
Answer: IRS has no way to track exactly where the money is spent. BUT you have to buy a home in the year you take the withdrawal. Bottom line, if you bought a home in 07 you can’t take a tax and penalty free distribution in 08. If your IRA is of the Roth style, then you can take back your principal without tax or penalty.
72t Payments
May 21st, 2011
Question: Get answers from millions of real people.?
We have approx. $360K left in IRA, lost 40% in last 2 1/2 months, receiving “72T” payments each month ( wife is 58 and I’m 62 ,I want to Cash In or minimize our losses immediately, how can we do this i.e. Taxes, etc. ?
Answer: You have lost nothing unless you do sell. Why would you cash out an IRA now that its assets happen to be at their all time low? Hang on to what you have and wait until everything goes back up. We have had lots of crashes bigger than this one and have always come back.
Posted in 72t Distribution | 
Tags: 72t, 72t payments, calculator, early, retirement, tax | 
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401k Early Withdrawl
March 1st, 2011
Question: 401K Rollover to IRA (Traditional or Roth) with partial early withdrawl afterward?
To whom it may concern:
If anyone could help answer me these questions concerning early withdrawl from an IRA account for “First Home Payment”, I would greatly appreciated it.
Here’s the situation:
Let say I want to rollover $60K and withdraw $20K AFTER (as in 2 weeks after opening the IRA) the rollover into an IRA account (Roth or Traditional). Also let say, I am in 28% tax bracket. In addition, I considered myself as “First time Home buyer”
1. Could someone lay out the implication scenerio from the IRS and from the investment house like Vanguard, Fidelity, or TRowePrice?
2. Do the investment house like Trowe Price or Vanguard allow me to withdrawl the money I just invested in retirement (let say within a week after the Rollover)?
Honestly, I’m a newbie in these area, your answer would be very helpful..
Answer: You can only roll over if you leave your job and the first time home purchase is 10K not 20.
You can only roll to a traditional IRA not a ROTH, you could convert after if you are eligible.
The tax would be at your marginal rate so 20K X 28% or 5,600 plus penalty on 10K is 1K so it cost you 6,600 leaving 13,400 for your home purchase. This will delay your retirement maybe several years almost any other way to get money would be better.
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