- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Coronavirus stimulus-package tax relief: Withdraw $100K from your IRA and repay in 3 years
Posted on 3/27/20 at 3:57 pm
Posted on 3/27/20 at 3:57 pm
quote:
The new law is a daunting 880 pages long, but it contains lots of good news for individuals and businesses, including meaningful tax relief. This column explains one tax-relief measure that can potentially benefit many IRA owners. Here’s what you need to know:
Coronavirus-related distributions (CVDs) from IRAs are tax-favored:
IRA owners who are adversely affected by the coronavirus pandemic (and there will be plenty of them) will be eligible to take tax-favored coronavirus-related distributions from their IRAs. To keep things simple, let’s call these distributions CVDs. They can add up to as much as $100,000. You can recontribute a CVD back into your IRA within three years of the withdrawal date and treat the withdrawal and later recontribution as a totally tax-free rollover.
In effect, the CVD drill allows you to borrow up to $100,000 from your IRA(s) and repay the amount(s) any time up to three years later with no federal income tax consequences. And there are no limitations on what you can use CVD funds for during the three-year period.
LINK
Posted on 3/27/20 at 4:15 pm to saintforlife1
So I can withdraw all my IRA funds tax free and put them on black??
Posted on 3/27/20 at 4:26 pm to Jwodie
Hope a lot of people do it. Cheaper stonks for years to come.
Posted on 3/27/20 at 4:37 pm to saintforlife1
Our government really wants everyone to have no retirement
Posted on 3/27/20 at 4:40 pm to THRILLHO
All your stonks are belong to me
Posted on 3/27/20 at 4:54 pm to Jwodie
quote:
So I can withdraw all my IRA funds tax free and put them on black??
Nah brah. Take out 100k and YOLO your retirement on some SPY puts.
Posted on 3/27/20 at 5:08 pm to saintforlife1
Why would it be a bad idea to use it to pay down high interest credit cards etc. and pay it back monthly like a 0% interest loan?
Posted on 3/27/20 at 5:12 pm to saintforlife1
This doesn't seem like a good idea in general since you're playing with your nest egg with only a three year window to return what you borrowed.
I suppose a sophisticated (and tolerant of risk) investor could try to time the market by taking out the loan exactly when the value was high and then returning the money at the time of a major dip... but that's one hell of a risk with your nest egg even if you can get the banks to withdraw and return the money exactly when you want.
I suppose a sophisticated (and tolerant of risk) investor could try to time the market by taking out the loan exactly when the value was high and then returning the money at the time of a major dip... but that's one hell of a risk with your nest egg even if you can get the banks to withdraw and return the money exactly when you want.
Posted on 3/27/20 at 5:34 pm to OldSouth
quote:
Why would it be a bad idea to use it to pay down high interest credit cards etc. and pay it back monthly like a 0% interest loan?
1) because you, like 90% of people, won't pay it back.
2) that money you withdrew is now out of the market
3) you'll use it on paying for shite that you likely could have done without, or should have continued paying for the way you were before
This post was edited on 3/27/20 at 5:36 pm
Posted on 3/27/20 at 5:36 pm to YungFO
quote:
Nah brah. Take out 100k and YOLO your retirement on some SPY puts.
You can do this now within your IRA
Posted on 3/27/20 at 6:34 pm to OldSouth
quote:Assuming you are drawing the money out of a stock mutual fund, you will be selling low. And, when you put the money back in you may be buying high.
Why would it be a bad idea to use it to pay down high interest credit cards etc. and pay it back monthly like a 0% interest loan?
Posted on 3/27/20 at 6:50 pm to saintforlife1
So, sell low - buy high?
Posted on 3/27/20 at 7:53 pm to saintforlife1
How long can you wait to withdraw?
Posted on 3/27/20 at 8:23 pm to saintforlife1
Posted on 3/27/20 at 8:30 pm to boosiebadazz
I’m hearing that they may allow a deferment or delay in the payment of payroll taxes. That would be a godsend to me and most other small businesses as that’s by far my biggest liability every month after payroll itself.
I’d eat ramen noodles and live in a tent though before I took the current losses on my retirement accounts
I’d eat ramen noodles and live in a tent though before I took the current losses on my retirement accounts
Posted on 3/27/20 at 10:00 pm to saintforlife1
What about if the math worked out where someone self employed was withdrawing the money to slam into investment accounts that will lower tax burden while paying that money back over a 3 year period at 0%? Assuming they have a cash position in one of their accounts that they took in advance of the drop.
Not advocating selling at a loss right now.
Not advocating selling at a loss right now.
This post was edited on 3/27/20 at 10:01 pm
Posted on 3/27/20 at 10:36 pm to TigerGrad2011
They should delay 401k loan repayments for everyone currently paying one back.
Posted on 3/27/20 at 10:54 pm to Paul Allen
quote:well that's a company issue, not a govt issue. And if you're still repaying, that means you have a job. If you lose your job, then the OP applies to you as you would roll your 401k to an IRA.
They should delay 401k loan repayments for everyone currently paying one back.
Posted on 3/28/20 at 5:45 pm to cgrand
I can make 20% return on it with my business, 30-40% if I leveraged it. One of the reasons I have considered a self-directed 401k.
Popular
Back to top
Follow TigerDroppings for LSU Football News