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CGCPA
CGCPA, CPA
Category: Finance
Satisfied Customers: 3820
Experience:  40+ years experience in taxes and financial planning
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I need some real help getting my finances turned around. I

Resolved Question:

I need some real help getting my finances turned around. I have received mail from 2 companies about helping with credit card debt. I have not yet researched them online, but even tho a slow learner (I've just been scammed, which is how I ended up with Justask), but am learning to check out everything. What do you know about Legal Helpers Debt Resolution, LLC and Financial Security Group?
Submitted: 4 years ago.
Category: Finance
Expert:  CGCPA replied 4 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

 

Here is a link to a review of Legal Helpers Debt Resolution:

 

http://damonday.com/3411/legal-helpers-debt-resolution-review-secret-business-plan-exposed/

 

Here is a link to the Better Business Bureau report on Financial Security Group:

 

http://www.bbb.org/cincinnati/Business-Reviews/financial-planning-consultants/the-financial-security-group-in-hamilton-oh-11002920/

 

As you will see after reading through the material, one stands out way above the other. I would be inclined to use the second company and to totally avoid the first. However, that choice is yours to make.

 

While we are at this, here is a review of Mr. Commuta's program:

 

http://www.programcritique.com/subcategories/onlinegurus/JohnCummuta.html

 

Just thought you need to be fully aware.

Customer: replied 4 years ago.

Thanks for your input. I actually found some info online last night and made note of companies that sounded good and with A+ BBB ratings. I haven't done alot with Cummuta's program but had read a good portion of the manual several months ago. It seemed like very good info and I need to start it over again. My husband needs to read it too. Then we can call them to schedule a consultation with a coach for ideas and advice. I don't know enough about their program yet to say yay or nay, but thanks for the link you shared.

New question: I just withdrew $10,000 from my IRA and know about the penalty unless it's used for medical. I have receipts from my prescriptions, mostly from 2010 that are not yet paid on my credit cards, but would apply much of this money to those cards and reference for myself the Rx receipts. Would this work since they are from 2010, but I haven't paid them yet? (As far as avoiding the IRS penalty). I hope I'm making sense.

Expert:  CGCPA replied 4 years ago.

Yes, using any portion of that money for medical care (including prescriptions) during this year will qualify to remove that same amount from the penalty. Anything not used in that way, or one of the other qualifying ways, will leave that portion subject to the penalty.Here is a link to IRS publication 590. It is too long to reproduce here. It deals with the exceptions and just about everything else IRA.

 

http://www.irs.gov/publications/p590/index.html

 

Customer: replied 4 years ago.
But my concern is if I use it to make payments to my credit cards for paying the prescriptions from 2010, in addition to some medical payments this year. And thank you for the link.
Expert:  CGCPA replied 4 years ago.
The amount you pay to the credit cards for medical care and needs such as prescriptions must be prorated to reflect accurately the amount applicable to those needs.For example, if you charged $8,000 in medical items, $5,000 in other uses, and incurred $2,000 in finance and late fees. Then only 53.33% of the payment will be applied to the medical items ($8,000 compared to $15,000 in total). Any amounts paid directly to health care providers/facilities/pharmacies for prescriptions will also be added in determining the amount used for health care and the health care exclusion for the penalty.
Customer: replied 4 years ago.
So it's ok if the payment to the credit cards is for receipts from last year? I understand the rest of it. I just want to be sure. Sorry if I sound dumb.
Expert:  CGCPA replied 4 years ago.
Yes it is okay. These were health care costs and remain so.
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