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Recent IRA questions

I retired in July, 2015. Since then I have withdrawn approx.

I retired in July, 2015. Since then I have withdrawn approx. $50,000 from my IRA. When I first filed my taxes with my accountant, she told me that I will be getting a refund check. I'm not sure why but she filed for an extension and finally, it's done. However, she now say's I owe $6,000 due to my IRA withdrawals. My question is: I thought this money was already taxed. Since a gross amount is withdrawn and a net amount is deposited that the difference would be to pay my income tax. Who is holding that money and where does it go?

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Mark Taylor

Certified Public Accountant

Masters

1,220 satisfied customers
If I am at this point of the year, where I've been 100%

If I am at this point of the year, where I've been 100% unemployed, and I have not yet deducted anything from my IRA, but I've been paying for insurance premiums, medical, dental, and other expenses out of pocket, and I have no major other income, is it possible to deduct from my IRA now, after having paid those other expenses with savings? I'm talking about all payments made within this 2016 year, so I think I'm asking if I can reiumburse myself and savings from my IRA penalty free for any of the above expenses which are eligible for penal free IRA withdrawal... I just didn't do the IRA withdrawal in advance... I'm now mid year and thinking IRA withdrawals may be necessary so I'm trying to bunch any such withdrawals up into something most eligible for penalty-free withdrawal. Thanks.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,686 satisfied customers
What are the tax advantages to marriage? My married friends

What are the tax advantages to marriage? My married friends are telling me they actually end up paying more in taxes because their spouse's income is now combined with theirs putting them both in a higher bracket.

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TaxRobin

Vocational, Technical or Trade School

21,184 satisfied customers
I just stumbled upon this site but do have a question. I am

hello I just stumbled upon this site but do have a question.JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I am exercising stock options that are vested and need to pay AMT on them. How long does the Govt let you have before the AMT amount is due. My company is still assessing the value of the stock.JA: Is there anything else important you think the Accountant should know?Customer: Yes, if I have a 401K IRA (many company contributions now all under eTrade) may I borrow at least my contribution for a period of time? If so, if the amount I contributed is tied to an individual stock would I be assessed a penalty for early withdrawl? How does this work with no penalty.

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TaxRobin

Vocational, Technical or Trade School

21,184 satisfied customers
I was married for 16 years in our final decree I was awarded

I was married for 16 years in our final decree I was awarded half of my exs 401k and 403b . I am 44 they are 48. vested fully into both accounts. I am 44 with 24 years service but mine retirement is a annuity and pension. I have to have surgery on my knee and both my wrists and will have to go early retirement in about 6 months ( ironworker has been pretty hard on my body doing it 24 years and now my body is showing signs with little surgeries here and there) . But, what would be the best way to handle the half of 401k and 403b I will be getting in the near future.

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TaxRobin

Vocational, Technical or Trade School

21,184 satisfied customers
Can I begin withdrawels from my 401k without being penalized

Can I begin withdrawels from my 401k without being penalized by a cut in the monthly amount of money I now receive from a Health Insurance disability payment every month? It seems to me that it would hardly make sense to start payments of $400 a month from my 401k next month, and then later receive a letter stating that my Health Insurance Disability is being reduced by $400!I am thinking of just waiting until my Health Insurance Disability payments come to an end, when I reach age 65, and let my 401k grow in value until then. Or am my worries groundless?.

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Rakhi Vasavada

Financial / Legal Advisor

Bachelor's Degree

3,982 satisfied customers
FACTS: I have two different types of IRA's Rollover I never

Good MorningFACTS:I have two different types of IRA'sRollover I never paid taxes on any of the contributions.Traditional: I paid taxes on part of the contributions [Never deducted the contributions on my 1040 [couldn't contribute to a ROTH because I exceeded the income threshold.I have a Form 8606 (Non-deductible) last one files in 2007 which totaled $31,260Question:If I want to take an IRA distribution [I am over 59 ½ but not 70 ½ so I do not have to take the RMD]How do I compute the amount of tax I owe on the distribution?I believe if I take it just from the Rollover IRA account the entire distribution I take would be taxable since I never paid taxesHowever if I take the distribution rom my Traditional account who would I calculate the taxable portion?

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TaxRobin

Vocational, Technical or Trade School

21,184 satisfied customers
Iam a retitred senoir on SS i have invested in a mm fund. I

Iam a retitred senoir on SS i have invested in a mm fund . I notice the funds go up and down mostly up in value from my initial investment . When it goes up considerably can i sell that day a recieve the profit and maintain the initial balance without penalties from the fund and hopefully continue taking profit at ervery oppurtunity.? Or is there a provision that allows me to only sell at specific times. In other words can i sell as many times as i want in order to take profit and maintain my initial investment. I am with Vanguard Fund

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,686 satisfied customers
Through a divorce via a QDRO retirement distribution I will

Through a divorce via a QDRO retirement distribution I will have a sum of money available soon. The plan administrators are telling me that I do not have the choice (A) to take a partial distribution and partial rollover for a total of the full amount. So, I have two options, full rollover (B) or full distribution (C). However, I want the same end result as option A. I realize I will be penalized either way taking a distribution pre-retirement age. My question is: since I will have to have the 20% tax taken out automatically with the full distribution, is it a no brainer to do the full rollover and then seek the distribution needed? Or will the 60-day IRA Rollover Grace Period make any difference to that 20% if I do a full distribution?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,686 satisfied customers
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