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Taking out money from a retirement account?
Posted on 1/22/13 at 11:17 am
Posted on 1/22/13 at 11:17 am
My wife worked at a doctor's office for a year or so after college waiting to find a real job and was putting money into some sort of John Hancock retirement account. There is like $900 in it right now but what are we are going to do with a $900 retirement account that no more money is going to be put into?
All of that is to say if she takes the money out how much can expect to lose from taxes, early withdrawal penalties etc....?
All of that is to say if she takes the money out how much can expect to lose from taxes, early withdrawal penalties etc....?
2
Posted on 1/22/13 at 11:25 am to RandySavage
What kind is it, assuming traditional 401k?
I would just roll it over into a IRA. Or possibly a Roth IRA depending on where your taxes are at.
I would just roll it over into a IRA. Or possibly a Roth IRA depending on where your taxes are at.
Posted on 1/22/13 at 11:26 am to RandySavage
Whatever your joint tax rate is + 10% penalty
Posted on 1/22/13 at 11:29 am to Broke
quote:
Whatever your joint tax rate is + 10% penalty
Is that the same for a roth?
Posted on 1/22/13 at 11:34 am to dewster
No because Roth has after tax money in it.
Posted on 1/22/13 at 11:40 am to Broke
Actually it is only tax free if it is a qualified distribution.
You won't have to pay taxes on the money that you put in it (and in fact you can take whatever money you put in, out, at any time no questions asked).
But you'll have to pay taxes on earnings.
You won't have to pay taxes on the money that you put in it (and in fact you can take whatever money you put in, out, at any time no questions asked).
But you'll have to pay taxes on earnings.
Posted on 1/22/13 at 12:17 pm to Volvagia
For a Roth, you can take out at any time without penalty up to the amount you have put in. Anything above that is treated much like a traditional IRA, i.e. interest and penalties do apply.
Example: Les Miles and John Chavis each contribute $1000 to their Roth accounts. At the end of the year, Miles' account is worth $1100 and Chavis' is worth $900.
Miles can take out $1000 without penalty. Chavis can take out the full $900, again without penalty. If Miles takes out $1100, he will owe tax and penalties on the last $100.
Example: Les Miles and John Chavis each contribute $1000 to their Roth accounts. At the end of the year, Miles' account is worth $1100 and Chavis' is worth $900.
Miles can take out $1000 without penalty. Chavis can take out the full $900, again without penalty. If Miles takes out $1100, he will owe tax and penalties on the last $100.
Posted on 1/22/13 at 12:37 pm to foshizzle
quote:
Les Miles and John Chavis
Neither of these guys has been eligible for a while.
Posted on 1/22/13 at 12:39 pm to foshizzle
Can Chavis declare a $100 loss for that year?
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