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Is there any way to go to cash in an IRA/401k without penalties/tax liabilities?
Posted on 8/5/22 at 2:51 pm
Posted on 8/5/22 at 2:51 pm
Would love to take some profits and wait for the inevitable crash to buy back in...
I know.. I know.. Timing the market is for fools.
I know.. I know.. Timing the market is for fools.
This post was edited on 8/5/22 at 2:52 pm
11
Posted on 8/5/22 at 2:58 pm to Tigahs24Seven
You could take out a loan. You'd be paying yourself a percentage interest and also the loan maintenance fees.
Not suggesting this is a good idea though.
Not suggesting this is a good idea though.
Posted on 8/5/22 at 2:59 pm to Tigahs24Seven
If you don’t know the answer to this question already you are too stupid for your plan to work anyway.
Sorry.
Sorry.
Posted on 8/5/22 at 3:02 pm to JohnnyKilroy
quote:
If you don’t know the answer to this question already you are too stupid for your plan to work anyway.
This is correct
Posted on 8/5/22 at 3:52 pm to Tigahs24Seven
quote:I mean it's literally one of the main benefits of these types of accounts: you can have taxable events left and right within your account, and you don't pay taxes on any of those individual events, because you either pay them before you put it in (Roth) or when you withdraw (traditional), regardless of what happens in between.
Would love to take some profits and wait for the inevitable crash to buy back in...
I know.. I know.. Timing the market is for fools.
So the fact that you're asking this, and you're asking this after the market is still well of its high, tells me that you probably shouldn't try to do whatever you're thinking.
Posted on 8/5/22 at 4:00 pm to Tigahs24Seven
Surely your 401K has a money market option, where you can just park it in cash.
Mine does.
Mine does.
Posted on 8/5/22 at 4:21 pm to Tigahs24Seven
Just sell your assets within the 401k and just it sit there until you want back in.
Good luck timing the market.
Good luck timing the market.
Posted on 8/5/22 at 4:25 pm to Tigahs24Seven
If your objective is to...
You can move/exchange $ from one asset in your 401k to a cash asset within your 401k (staying within your 401k), without...
Penalties/tax liabilities are triggered when you take $ out of your 401k, if you are not of retirement age/eligibility
So, find that cash asset in your 401k (eg, Thrift or Money Market account)
To your 'timing the market' fools point, listen to yourself...statistically speaking, the odds are that this will be foolish.
quote:
take some profits
You can move/exchange $ from one asset in your 401k to a cash asset within your 401k (staying within your 401k), without...
quote:
penalties/tax liabilities
Penalties/tax liabilities are triggered when you take $ out of your 401k, if you are not of retirement age/eligibility
So, find that cash asset in your 401k (eg, Thrift or Money Market account)
To your 'timing the market' fools point, listen to yourself...statistically speaking, the odds are that this will be foolish.
Posted on 8/5/22 at 4:44 pm to Tigahs24Seven
I think you will find your answers above. To reiterate:
1) it’s hard (not recommended) to time the market.
2) if you really want to move it out of stocks, bonds, mutual funds, you should have a money market fund or similar vehicle within your 401k to move partial or all of your $$ to. It’s usually listed as the least risk option in your potential portfolio.
3) but, no you can’t “cash out” without penalty or taxes. Remember, you haven’t paid taxes on any of it yet.
1) it’s hard (not recommended) to time the market.
2) if you really want to move it out of stocks, bonds, mutual funds, you should have a money market fund or similar vehicle within your 401k to move partial or all of your $$ to. It’s usually listed as the least risk option in your potential portfolio.
3) but, no you can’t “cash out” without penalty or taxes. Remember, you haven’t paid taxes on any of it yet.
This post was edited on 8/5/22 at 4:46 pm
Posted on 8/5/22 at 9:28 pm to JohnnyKilroy
quote:
If you don’t know the answer to this question already you are too stupid for your plan to work anyway.
I am a Nurse, a-hole.. Not a money manager.. Next time you need a blood transfusion to save your life, if you don't know how to start the IV, you are too stupid to be worth saving anyway. See how that works...
Posted on 8/5/22 at 9:31 pm to Turf Taint
Thanks.. That's what I was looking for. Appreciate all the decent, helpful comments.
Posted on 8/5/22 at 9:31 pm to Tigahs24Seven
quote:
I want to time the market
quote:
I am a Nurse, a-hole.. Not a money manager.
No shite huh?
Posted on 8/6/22 at 7:28 am to Tigahs24Seven
quote:
I am a Nurse, a-hole.. Not a money manager.. Next time you need a blood transfusion to save your life, if you don't know how to start the IV, you are too stupid to be worth saving anyway. See how that works
Then why don’t you leave the money management to the professionals and you stick to changing bed pans making TikTok’s?
Posted on 8/6/22 at 9:09 am to Tigahs24Seven
quote:
I am a Nurse, a-hole.. Not a money manager.. Next time you need a blood transfusion to save your life, if you don't know how to start the IV, you are too stupid to be worth saving anyway. See how that works...
He’s kinda right, though. If you have to ask this question, then it is probably not a good idea for you to try to make a move against the market. I mean it would probably be a bad idea no matter how financially literate you are, especially in a retirement account with an extended time horizon, but you might not have enough perspective to see why it’s a gamble.
Take a look at a 1 year or 5 year S&P chart. Unless you’ve been investing since June 2022 it won’t look like you’re “taking profits”, and if you look at a long enough time frame those blips of ups and downs look a lot less significant in context. For it to make sense, you would need to be able to not only guess right on when to sell (the high point), you would need to guess right on when to buy back in (the low point). The fact that your proposed high point is at a time when the S&P is down 13% year-to-date is not encouraging.
Posted on 8/6/22 at 11:45 am to JohnnyKilroy
quote:
If you don’t know the answer to this question already you are too stupid for your plan to work anyway.
This
Posted on 8/6/22 at 11:51 am to Tigahs24Seven
quote:
I am a Nurse, a-hole.. Not a money manager.. Next time you need a blood transfusion to save your life, if you don't know how to start the IV, you are too stupid to be worth saving anyway. See how that works...
You’re too stupid to even form a rational comparison. What patient asks to start their own IV? But continue on, trying to time the most backwards market of all time.
Posted on 8/6/22 at 11:57 am to Tigahs24Seven
quote:
I am a Nurse, a-hole.. Not a money manager.
Im not a nurse so I don't try to make nursing decisions.
quote:
Next time you need a blood transfusion to save your life, if you don't know how to start the IV, you are too stupid to be worth saving anyway. See how that works...
I don't see how it works, becuase it makes no fricking sense.
Please for your own good, leave your 401k alone. You clearly don't have the mental capacity to be doing things like this.
Posted on 8/6/22 at 7:28 pm to Tigahs24Seven
quote:
Is there any way to go to cash in an IRA/401k without penalties/tax liabilities?
yes, you can go all cash if you would like but leave it in a MMF within the said ROTH or 401k.
you do not need to pull it all out your accounts to go to cash. no reason to pay taxes and penalties.
at this point i would ride it out. I would not even go all cash unless you have some big profits you want to lock in now. That is your call. To me it has dropped too much to cash out. ride it out and keep making contributions.
Posted on 8/7/22 at 10:06 am to Tigahs24Seven
quote:
Would love to take some profits and wait for the inevitable crash to buy back in... I know.. I know.. Timing the market is for fools.
Asks the fool who should have asked this question in January when everyone knew a bear market was right around the corner.
This post was edited on 8/7/22 at 10:09 am
Posted on 8/7/22 at 10:48 am to Tigahs24Seven
Roth conversion ladder.
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