Have a Tax Question? Ask a Tax Expert
Thank you for your using justanswer.
I am truly sorry to tell you that may not put the $ back into the old IRA
You can start a new one........you can write off the expense of the attorney you used since there was taxable income from the suit
give me just a second to double check.........I don't THINK so.......but I would rather double check
No problem.........there are 2 issues here
1-is the money you took out taxable? yes, because your IRA was "pre tax" $
2- is it subject to the 10% penalty.....(which is where the hardship may come int)
As to the penalty.......are you permantey disabled?
I love a person with a sense of humor.....lol
So, if you have to pay tax on the distribution, lets look at this another way
The other way is to see what you can do to lower your total tax bill
Ex: do you itemize deductions?
If you do, then this would be a REALLY good time to donate all the stuff that we all say we will get rid of some day.......I think for you, today's the day
You may pay your property taxes ahead
in other words, pay both 2013 & 2014
tell me what you want to propose?
stating what....I'm trying to get a feel for what you really want
You can work with the IRS on alot of fronts.........but when you're talking pre tax money........its a different game........and you have limits on the $ amount you can put into an IRA per year, and judging from what you said, I suspect you're wanting to contribute more than $5000
ahhhhhhhh I just read your post
You need a financial advisor to tell you where to invest the money so that you DON'T lose the potential growth (although this won't help you immediately , since the money is going to be taxed) but it WILL help you in the future..
was your retirement that you received before or after tax? are they going to issue you a W2 or 1099?
well that's good.............at least that withholding will help
you can drive yourself crazy with the "what if": game
Would I have advised you to take all of your money out of your IRA to fight your former employer
I would have told you to take out only what you needed
well you can't change the fact that its taxable.........so now you look to damage control
Well, you'd be no worse off than you are now if they say no
but you have to understand that its a long shot at best
if it were me, would I do it? yes.......but I"m not called the bull dog in my office for nothing........because i never give up
yes........it makes a difference
Please come back if you need more help.....I'll be happy to help you run damage control...
if you write the letter & win...will you let me know?
IRS wants letters that are very brief and to the point
Do you need another job........sounds like you'd make a GREAT tax pro
You too.....and best of luck to you