Tagged Questions

5
votes
1answer
49 views

How do I report using an IRA distribution to purchase a first home

The tax code allows up to $10,000 to be withdrawn from an IRA (Roth or regular) and put towards the purchase of a first home without having to pay the normal 10% penalty for an early distribution. ...
6
votes
3answers
921 views

Could a 401k or IRA contribution switch my current taxable income to a lower tax bracket? is this the same for traditional and Roth 401k?

In the case that my annual income is right in the limit between one tax bracket and the next tax bracket. Can contributing to a 401k or IRA reduce your present income declaration in such a way that ...
2
votes
2answers
97 views

What is the best option: conversion of excess contribution to traditional IRA; distribution, or leave for now?

I made a contribution to traditional IRA in '09. For various reasons, I did not receive some POD CD's of 2008 until now (2012). Now because of higher AGI for that year, figured on amended form, I have ...
3
votes
1answer
120 views

What happens to class action awards for a stock in an IRA?

One of the individual stocks I own in an IRA account recently lost a bunch of value, allegedly due to misconduct on its officers' part, and is now the defendant in a bunch of class action lawsuits on ...
2
votes
3answers
111 views

Are IRAs condusive to short term trading?

Since IRAs are only taxed when you take the money out when you retire, are the normal tax implications of short term trading non-existent? Thereby making it extra beneficial to do your short term ...
3
votes
6answers
623 views

why is the money withdrawn from traditional IRA taxed at the ordinary income tax rate?

When money is withdrawn from a traditional IRA account, why is the money taxed at the rate same as for ordinary income, instead of capital gain tax rate? In other words, what is the rationale for it? ...
1
vote
2answers
71 views

set pre-tax money aside in 2011, tax liability was lower, use for IRA?

I set pre-tax money aside in 2011. (didn't do estimated taxes, paid neglible penalty) My tax bill is lower than the amount I set aside in 2011. I still have wage work, so can I use the remaining ...
1
vote
1answer
107 views

If you are married filing jointly, is your AGI (or modified AGI) the sum total of your income?

I'm trying to determine whether my wife can contribute to an IRA. The table on the IRS website talks about AGI and I'd just like to know whether the AGI in the case of married filing jointly is our ...
5
votes
4answers
404 views

Should we draw down a previous employer's 401k or roll it into something else?

My husband has a 401k from his previous job which is worth about $13,000. He wants to take it out and use it. His new job has a 401k option that he has not looked into yet. I was wondering if we did ...
4
votes
2answers
305 views

What is exactly is considered taxable income when you retire?

I'm in my 30's and trying to figure out whether I should convert some of my traditional IRA funds into a Roth. The funds would be taxed at 15% based on my current taxable income. So, I need to best ...
6
votes
2answers
86 views

IRA conversion when part of the contributions were non-deductible. Taxes owed?

I have a traditional IRA, which has money which has been contributed three different ways: deductible IRA contributions non-deductible IRA contributions rollover from 401(k) I'm looking at ...
4
votes
1answer
199 views

Is the penalty for an early withdrawl from an IRA applied to the gross or net amount?

Does anyone know if the 10% early withdrawal penalty on traditional IRA is on the pre-tax or post-tax amount? Let's say I withdraw $5k from my IRA, and I pay 20% (example) in taxes, is the additional ...