Answers in Accounting and Tax

Whether you’re preparing your annual taxes, trying to minimize your tax liability, or preparing for an IRS audit, having a CPA or tax professional in your corner can drastically reduce the burden.
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First, who is the plan provider.
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Roth IRAs are not taxed at all (as long as you are over 59 1/2 yrs old & have had the account open for more than 5 years. Withdrawals from your 401(k) will be taxed at the same rate as ordinary income tax (no penalties as long as you are over 59 ...(more)
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You can still contribute to an IRA even though you are able to contribute to a 401k, assuming you do not exceed the annual income limits. here is the link to the IRS website regarding this https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work ...(more)
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Based on my tax research resources, the short answer is participation in an employer plan will make you ineligible for a tax-deductible IRA in the same year. An employee is covered by an employer retirement plan for a tax year if the employer has a: • ...(more)
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While I don't know your specific situation, in general I don't favor raiding retirement funds to pay off your house. You generally won't be able to replace those funds, and the tax that must be paid beyond the mortgage payoff is so significant as to substantially ...(more)
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I would need more information to adequately answer that question. It really depends on what your top tax bracket is. For the Roth distributions, you won't have any taxes due, but the 401(k) will be added to your taxable income if it is a non-Roth 401(k). ...(more)
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Hi Aaron, The plan should have used code 2 in box 7 of your 1099R, which tells the IRS that there is an exception to the 10% penalty. If they put a code 1 in that box you need to use the form 5329, as they suggested, to avoid the penalty. In Part 1 ...(more)
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Edwin, I tend to agree with both Gary and Davin. Gary has provided the general rule of thumb and Davin's request for more detailed information is appropriate to provide a specific more detailed answer to your question. However, the bottom line is that ...(more)
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Gary Ray Duell Level 18
Not enough information, Cynthia. Do you mean a pension? 401(K), 403(b), IRA, etc.? Social Security? And BTW there may be good reasons to take a Social Security survivor benefit at age 60.
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Yes, and while the distribution would have been reported as taxable income for 2014 on an IRS Form 1099-R, it should not have been subject to the additional penalty tax on early distributions taken prior to age 59 1/2 [IRC §72(t)], as long as (1) you ...(more)
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Gary Ray Duell Level 18
Edwin, there are a lot of moving parts to your plan. But the general rule of thumb I use is that you should not pay off the mortgage if its net cost is lower than a safe investment rate of return. I know. Jim Cramer yells about the absolute evil of ...(more)
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Davin J Carey Level 1
Edwin, I saw this comment regarding your 401k and also another post about an annuity. It seems like you need an advisor to help sort this all out for you and I'm not sure a message board will provide the best resolution. Would you be able to email me ...(more)
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That of course depends on your tax situation. for example If you are in a higher tax bracket than 20% thank you would owe more. Also if you filed your taxes without putting the 1099r on your tax form than you may owe money because you received to big ...(more)
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Chad W Schiel Level 15
You always have the freedom to cash out your 401k or IRA. Just understand that taxes and penalties will apply. First find out why is your 401k custodian, Fidelity or American Funds for example. Call them up and navigate their prompts as directed. You ...(more)
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First I am sorry for the loss for the beneficiary's son. Because the son was not required to take distributions due to his age there are a couple options available to the non-spouse beneficiary. I am assuming that the inherited funds are still with the ...(more)
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