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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10600
Experience:  30 years of corporate, litigation and international law
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Clarfication. I have a seven year sub s corporation. I have

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Clarfication. I have a seven year sub s corporation. I have a separate IRA account not tied to my corporation. is there a method that I can take money from IRA to do some funding into the sub s?

bizlaw :

Hello, I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. I assume that you are under the age of 59 1/2. If you make a withdrawal under that age you are subject to a 10% penalty in addition to the federal and state taxes that are applicable when a distribution is received. Funding your corporation would not fall into one of the types of distributions that do not incur the penalty. The answer to your question is that you can take money from your IRA but if you are under age 59 1/2 it will be subject to the normal taxes on an IRA withdrawal plus a 10% penalty.

bizlaw :

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Richard - Bizlaw and 7 other Business Law Specialists are ready to help you
Hi Mikr,

I'm just following up with you to see how everything is going. Did my answer help?

Let me know,if you have any more questions.