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If you pull money 401k/IRA purchase of a home or college

If you pull money for a 401k/IRA for the purchase of a home or college tuition, is it tax exempt?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,242 satisfied customers
I work part-time,as a dentist-employee, dentist,

I work part-time,as a dentist-employee, for a dentist, Steve, and we talked recently about taxes for last year and he told me he gross $1.5 million and owed $96K in taxes. He fully funded the pension plan, which is set up as 401Ks, but if he funded his profit sharing plan, he could only write off 30%. I hope I got this right. What else could he have done, or can do, now to reduce the tax burden? Could it ever be reduced to zero? He did not buy any expensive equipment for write-offs during 2015.His CPA was pretty sick for most of last year, and no one else at the firm checked how Steve was doing. A separate bookkeeping office did the monthly reports, etc. What are your thoughts and suggestions?

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Megan C

Master's Degree

 
29,932 satisfied customers
If a US citizen earns employment income in Canada, Is CPP be

If a US citizen earns employment income in Canada, Is CPP be recognized as foreign tax credit as well?Someone says pub514 says it can't,Pension, unemployment, and disability fund payments. A foreign tax imposed on an individual to pay for retirement, oldage,death, survivor, unemployment, illness, or disability benefits, or for similar purposes, is not payment for a specific economic benefit if the amount of the tax does not depend on the age, life expectancy, or similar characteristics of that individual.No deduction or credit is allowed, however, for social security taxes paid or accrued to a foreign country with which the United States has a social security agreement. For more information about these agreements, see Publication 54.Someone says treaty paragraph 7 article XXIV overrides pub514, so it can be claimed as FTC on form 1116:Which is correct?If the person also has passive income, should CPP be prorated together with income tax between general income and passive income, or all CPP should be fully allocated to foreign tax paid for general income?Thanks,

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Rakhi Vasavada

Financial / Legal Advisor

Bachelor's Degree

 
3,892 satisfied customers
I want to transfer an ERISA pension fund from one brokerage

I want to transfer an ERISA pension fund from one brokerage firm to another. Does all the ERISA protections transfer with it? do I need to do anything else to make sure the funds and ERISA plan are up to date?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,242 satisfied customers
Good Morning Lane,I have a personal tax question .

Good Morning Lane,I have a personal tax question for you. A couple of years ago I had become a licensed life and health insurance agent. In my quest to build this new business I pulled out of my retirement around $16k to financially support myself while trying to build this business. The expenses I incurred through the business I wrote off. My question is should I have written off the $16k as an investment loss? Or is that not allowed because the money was used to pay my personal living expenses?Thanks,Kathleen

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,242 satisfied customers
I have asked you questions before, I want to

For Lane, I have asked you questions before, I want to compliment you on how knowledgeble and helpful you have been.Under duress I was forced to pledge ERISA funds to a bank for an unsecured loan. They said at the time that they knew they could not ever collect on the ERISA plans funds but they (the bank) needed something to provide to their auditors. A state court judge allowed them to take the funds from my ERISA account, now I am working on an appeal, if a ERISA plan is pledged can the funds be removed. My research revealed that you can pledge ERISA funds but no one can collect. is this true? any suggestions? what is the definition of "benefits" under an ERISA.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,242 satisfied customers
I am payroll administrator and during my holiday, my

I am payroll administrator and during my holiday, my coworker, processed an employees termination pay cheques after year end procedure was completed. She inadvertently used the wrong pay date, she paid the employee on December 31, 2015 instead of January 4th, 2016. This is causing me grief as we have a defined pension plan and she cannot have more than 1 year of service etc.. I called Revenue Canada but got 3 difference answers. Those transaction should have show in our 2016 fiscal year and not 2015i was thinking of reversing the payroll transaction out of our payroll system and reprocessed with the correct pay date. But the transaction did go though our bank as of December 31th. is this legal?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

 
8,890 satisfied customers
Having filed US tax returns via substantial presence in 2012

Having filed US tax returns via substantial presence in 2012 and as a permanent resident through 2013 & 2014; I am now preparing to file a tax return for 2015. We are a retired, married couple who file jointly: each of us having retirement incomes from the UK as our sole incomes. I have made my 1040-ES payments (all 4) for 2015. Thus far, I have used tax filing services for 2012-14 but I know someone who tells me that I could use ordinary tax filing software for the same purpose. I had thought that such software was exclusively designed for people with US incomes.With no W-2 and only my own records, do you consider such software to be feasible. Things are complicated by our income providers using the UK tax year (April-April); hence no annual statements are provided at this time. I have always used the IRS suggested conversion rate for GBP to USD. I maintain itemized Excel files of our income and exemptions; which I present to a tax service and I leave them to it. Would I be able to use a software package (like H&R Block) to file my return; or does our unusual situation preclude it?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,242 satisfied customers
I want to know what is the difference between 401k and

I want to know what is the difference between 401k and pension ?

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PDtax

Owner

Master's Degree

 
6,654 satisfied customers
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