Questions tagged [penalty]

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9
votes
3answers
409 views

Does it make sense to start saving into a 401k, if you might move out of the US before retirement?

Contributions to 401k funds are subject to a 10% penalty if taken out before the age of 59.5. Presuming my employer has a 401k matching program, does it make sense to contribute to a 401k if I might ...
1
vote
1answer
61 views

Penalty or Fee for Filing a Return, When a Refund Is Due

Working on my 2016 Federal tax return, and I've reached the Estimated Tax Penalty line on Form 1040. I'll get a refund, so my guess is that I won't owe tax penalties on taxes I owe, since I don't ...
2
votes
2answers
95 views

Are non-qualified withdrawals from a 529 plan penalized on the original contributions?

My understanding is that early (nonqualified) withdrawals from a 529 plan are penalized at 10%, plus taxed over any capital gains. Does the 10% penalty apply to capital/investment gains only, or to ...
2
votes
2answers
100 views

401(k) distribution tax calculation

Wanting to receive $25k distribution from my fully vested 401k w/former employer. Figuring required 20% withdrawal penalty to be $5k (25,000 x20%), so my account balance would be reduced by a total ...
4
votes
1answer
123 views

IRS - Tax return of 2017 - Penalty

My family and I moved to the US, with a job, on May 21 of 2017. Since June of 2017, we have been covered by health assurance through my job. (the form 1095-B from Aetna informs 7 months of coverage). ...
5
votes
1answer
143 views

HSA and Medicare: what if I get laid off?

I'm approaching 65; will continue working for a large company; will not be taking Social Security; have a high deductible insurance plan through my company which I will continue using (so will not ...
0
votes
1answer
72 views

Is there a tax penalty for rollover from Thrift Savings Plan(TSP) to 457(b)?

I have non-roth funds in the TSP and have separated from the military. I'd like to move this to a public employee sponsered 457(b) so I can begin contributing again. Are there any IRS tax penalties (...
2
votes
1answer
1k views

Are automobile loan pre-payment penalties legal in Arizona?

I've not been able to find the answer to this question. I am looking specifically for the law as it applies only to the state of Arizona. If I take a loan for a car purchase, can I be penalized for ...
3
votes
1answer
121 views

For IRS underpayment penalty, what counts as “refundable credit” in 2018?

The IRS states that in event of gross (>$1000) tax underpayment, penalties are avoided if current years withholdings and refundable credit is more than last years total taxes. Nowhere in their ...
1
vote
3answers
109 views

Preventing tax underpayment penalty

I had some short term capital gains in 2017 which resulted in underpayment penalties both in my Federal and State taxes. I have about $5K in crypto-related short term capital gains for 2018 to report ...
3
votes
1answer
81 views

Implications of withdrawing Roth IRA contributions before age 59?

What repercussions, penalties, fees, or additional taxes exist on withdrawing contributions (basis) from a Roth IRA account under 59 years old? For example, suppose I have contributed $5,500 for 5 ...
2
votes
1answer
75 views

Missing S Corp Tax Return - Who Is Liable for Penalty (Company vs Shareholders)?

I have a company that was incorporated in November 2015 as a S Corp. There was no activity at the company for November / December 2015 and a tax return was not filed for 2015. I found that even with ...
32
votes
7answers
18k views

Bought stock at higher price than current price

I wanted to buy stock ABCD at a price of 880. The current price was 900. When I bought, I set 980 instead of 880 and it was fully executed. I don't understand how it is possible to buy stock at a ...
2
votes
0answers
68 views

How do I pay my ineligible IRA contribution taxes?

This is a follow-up question to I may have made an ineligible contribution to a Roth IRA. What should I do? In 2017, prior to Tax Day, I made a TY 2016 contribution to my IRA that exceeded my 2016 ...
2
votes
1answer
269 views

Is it legally binding in the UK to declare penalty charge notice issued by the council to the insurer?

Does the Penalty Charge Notice (PCN) for a traffic contravention issued by a local council need to be declared to the insurer? Also, does this affect the premium?
3
votes
1answer
150 views

Using 72(t) to avoid 10% penalty, how much can I withdraw from 401k per year? What are the main disadvantages for doing this?

Imagine this scenario, I'm 40 years old, unemployed, and have 1M in my 401k. If I want to use 72(t) to withdraw money from my 401k, to avoid 10% penalty. What is the maximum amount that I can ...
1
vote
1answer
295 views

I may have made an ineligible contribution to a Roth IRA. What should I do?

Early this year (before mid-April) I received in excess of $11,000 in taxable inheritance income. The income was distributed from several annuities. I deposited $5,500 into a Roth IRA for the 2016 tax ...
3
votes
2answers
752 views

Can one roll over an after-tax 401(k) to a Roth IRA, then any time in the future withdraw my contributions tax-free and penalty-free?

Can one roll over an after-tax 401(k) to a Roth IRA, then any time in the future withdraw one's contributions (that were initially made to the after-tax 401(k)) tax-free and penalty-free? Background ...
10
votes
3answers
894 views

Can you be penalized for setting an arbitrarily high number of allowances on your W-4?

I withheld too much in taxes this year. I will benefit a good amount from the Lifetime Learning Credit, which I hadn't heard about until today. Even if I don't pay a cent in taxes for the rest of the ...
5
votes
1answer
239 views

Can your kids take over your 529 plan and use it for their own kids?

Consider the following situation: There is money remaining in your 529 plan after your children have finished college. Your children now have children of their own. Can you change the beneficiary of ...
1
vote
2answers
198 views

Taxes on Roth IRA earnings withdrawals <59.5 but >5 years

Homebuyers, education, disability, etc. exceptions aside, if you are less than 59.5 years old but make a withdrawal of earnings from a Roth IRA account that's been open for more than 5 years, do you ...
5
votes
1answer
206 views

529 plan withdrawal penalties

My son is a freshman this year. We live in and he attends school in California. We pulled out the first $ from our Utah 529 plan. I had the money deposited in my account since I paid the ...
1
vote
1answer
1k views

Difficult time understanding 1040-ES and Late Payments Penalties

I've spent the entire day trying to figure out how 1040-ES's work. If you make quarterly payments of Estimated Taxes, do you also file the regular 1040 on April of following year? Turbo Tax states ...
3
votes
1answer
1k views

Under the Affordable Care Act, do I get penalized if my dependents don't have insurance for the time they are not in the US?

I got health insurance for my wife and son. They are traveling to India for 3 months. If I cancel their insurance coverage, and apply for insurance once they came back in October, will I get a ...
1
vote
1answer
95 views

PennDot registration suspension for not responding to their request. [closed]

My auto insurance policy expired and on the same day I purchased another policy via some other company. I received a letter from PA-DMV, requesting an update about new insurance policy information. ...
1
vote
2answers
264 views

What is the penalty of contributing to a Coverdell ESA while earning over $110k MAGI?

Regarding Coverdell Education Savings Account (ESA) (https://www.irs.gov) Q. Who can contribute to a Coverdell ESA? A. Generally, any individual (including the beneficiary) whose modified ...
1
vote
0answers
66 views

What affects tax due for the Ohio vehicle tax penalty?

I bought a motorcycle for $3,000 and stupidly put $0 on title. I got a letter asking the sale price and paid $210 in taxes in response to the letter. Now I just got another letter that says I owe ...
4
votes
1answer
498 views

Are there penalties for expats taking regular withdrawals from a 401(k)?

I am an American who has retired overseas. I retain a U.S. bank account where my retirement pay goes. I recently made an early withdrawal from my 401(k) and was taxed and penalized as a "foreigner", ...
6
votes
4answers
781 views

Are prepayment penalties for mortgages normal?

My wife and I are in the market for a new house, and we're at the point where we want to comparison shop lenders. Is it usual for mortgages to have prepayment penalties? My wife just hates the ...
0
votes
3answers
269 views

Withholding for unexpected Short-Term Capital Gains and Penalties

Every year, when paying my taxes, I typically get a small amount back from the Feds, and usually pay "less than $400" to my state. However, within this 2016 year, I unexpectedly made a large amount ...
4
votes
1answer
176 views

Excess HSA Contributions Used For Medical Expenses

I have a potential employer with a strange solution for healthcare. They wish for you to select a HDHP from the marketplace with an HSA then they fund the HSA to pay for the healthcare premiums. I ...
0
votes
1answer
82 views

What are the losses when a foreclosure occurs on an investment property in the black?

If the apparent market value of the investment property is above the mortgage balance and a foreclosure occurs, it is clear that the legal expenses and late fees are something that the mortgagee must ...
4
votes
1answer
715 views

Can I withdraw money from my RRSP without penalty in the same year I deposited it?

During this year I deposited $5,000 to my RRSP account. Can I withdraw this money from my RRSP without penalty since it has not yet been claimed, or will this incur a tax or contribution room penalty?
3
votes
1answer
296 views

Where is payment for failure-to-file and failure-to-pay penalties included on Form 1040?

Form 1040 line 79 is for "estimated tax penalty", but my understanding is that this is for 'penalty for not paying estimated tax', not 'the estimated amount for all tax penalties'. If this is the case,...
4
votes
1answer
2k views

How far does the IRS usually go when they uncover unreported income?

I have had a Google AdSense account for a while. In 2013, Google started requiring to fill out tax information. I was an idiot and decided to claim that I lived in another country and that I had no ...
3
votes
2answers
346 views

Roth-IRA withdrawal penalty: 10% of what?

Early non-exempt withdrawal from a Roth-IRA results in a "10% penalty". A 10% penalty on what amount: The amount withdrawn? The remaining balance of the Roth IRA? Both? Insight appreciated
3
votes
5answers
592 views

Under what circumstance will the IRS charge you a late-payment penalty for taxes?

IRS Topic 301 states You will owe interest on any past-due tax and you may be subject to a late-payment penalty if the payment of tax is not made by the original due date of your return. The ...
1
vote
1answer
139 views

Is Return of Excess from an IRA Subject to Penalty?

I made a deposit into a Traditional IRA a few days ago, intending to do a Back-Door Roth. As it turns out, it wasn't a good idea (see Any Downside to Backdoor Roth?). In filling out the forms to do ...
3
votes
1answer
308 views

401(k) non resident alien -early withdrawal penalty 10%

I have a 401(k) with over 100 k in it . My question is if my former employer's 401(k) plan does not withhold the 10 % early withdrawal penalty, will I need to pay this with a US tax return ? ...
2
votes
1answer
486 views

Roth 401k withdrawal rules

If your employer matches your contribution on a roth 401k account are you typically able to withdraw the money you deposited + the employer match from your account (I know there are penalties & ...
0
votes
1answer
169 views

Must I go on a quarterly payment plan if I owe the IRS a lot?

Context: I've heard from a couple people that if you owe a significant amount of taxes to the IRS (say several thousand dollars) at tax time, then the IRS will require you to start paying future taxes ...
7
votes
1answer
400 views

How Does The IRS Structure Payment Plans If I Owe Subjectively High Taxes?

During the 2015 tax year I became legally separated. During the separation my ex-wife did not agree to a QDRO when cashing out her equity from jointly owned property. The cash out was mandated by ...
2
votes
2answers
101 views

Stocks in India, what is the best way to get money to US

I am in US for last 10 years. I bought few stocks in India when I used to work there. I never operated the stock (demat) account (never sold or bought) since I moved here never reported them on my ...
2
votes
2answers
114 views

Can I deduct penalties for late IRS filings?

I was young and naive. I hadn't filed my 2013 corporation return (S status), and only had incorporated on Dec 16 of that year. I hadn't even begun operations. Then I discovered annual corporate tax ...
1
vote
1answer
10k views

Penalty for cashing out HSA on permanently leaving the country? [duplicate]

I understand that if you want to cash out your HSA you are expected to pay tax and some penalty on that money. The tax part I understand. But what is this penalty exactly and how much would it be? And ...
3
votes
1answer
410 views

Using Roth and Rollover IRA for home down payment

I'm not able to find anything on this. I'm planning to withdraw $5000 from my Roth IRA and $5000 from my Rollover IRA for a home down payment. That's the $10k max to avoid a 10% penalty. But does ...
6
votes
1answer
457 views

Will a Roth 401k rolling over to a Roth IRA allow the money to become penalty-free at withdrawl?

I'm aware that a Roth 401k and a Roth IRA are funded with after-tax amounts, and no taxes are incurred upon withdrawal. However, I have stumbled upon a few articles that state a 10% penalty early ...
2
votes
1answer
371 views

Individual Client or Customer fining or charging a Company a penalty fee

What's the primary factor keeping a consumer from handing out fees as liberally as corporations or small businesses do? Can an individual, or more appropriately, what keeps an individual from being ...
10
votes
1answer
2k views

401(k) forfeited and check issued. What can I do to avoid penalty?

Recently, I checked the website of the last 401(k) plan that I contributed. I found that the account was "forfeited", which I assume it means that it was closed due to not being an employee of the ...
-2
votes
3answers
6k views

How does the “Rule of 55” work for avoiding early 401k withdrawal penalties?

How does the "Rule of 55" work for avoiding early withdrawal penalties from a 401k? What are the conditions around using the "Rule of 55"? Is it practical to use this rule?