Questions tagged [withdrawal]

a generic to be used for questions related to withdrawal of funds from an account. Generally used to other specific tags like retirement, mortgage, etc to give the specific context.

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Distributed from wrong IRA account last year. Any way to correct?

We distributed $47k from wife's (age 52) regular IRA last year, 2021, to improve home. Realize now we should have distributed from my (age 64) regular IRA instead. Now we're paying penalty for early ...
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0 votes
1 answer
47 views

Need to amend my tax return to account for initial error reporting IRA contributions, even if tax return is correct after IRA withdrawal?

I contributed $6,000 to an IRA, however I discovered as I was filling out my tax return that I am only eligible to deduct $2,600. I will withdraw the $3,400 from my IRA (as allowed per Pub 590a), so ...
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1 vote
1 answer
57 views

Can I withdraw leftover money in PA 529 account because my child received scholarship?

My daughter graduated in 2017 with BS degree. She received scholarship money about $100,000 in 4 years. So I took money from 529 only for room and board and so there is left over money in 529. I ...
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0 votes
1 answer
56 views

How should I schedule pulling money from investments for home purchasing?

I'm getting married this year, after some delays for reasons you can probably guess. Afterwards -- so in six months or so -- we are hoping to buy a home. Of my money, roughly a third of it is in cash ...
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0 answers
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Is the IRA early withdrawal penalty less than benefit from EITC?

I am hoping someone could check my math on this. If my income is about $45,000 with two children and I put $1000 into a pre-tax IRA my understanding is that it ups my EITC by about $210. That is ...
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3 votes
1 answer
130 views

What can be withdrawn from a Roth IRA without penalty before 59 1/2?

I know that contributions (dollar amount equal to what was directly contributed to the Roth IRA) can be withdrawn tax-free and penalty-free at any time, and that earnings on those contributions will ...
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0 votes
0 answers
54 views

Wire transfer from Nexo to Canadian bank account missing routing number

I tried withdrawing money from Nexo to my Canadian bank account via SWIFT but what I didn't realize is that the withdrawal web form did not have a routing number or branch code. Just the SWIFT code, ...
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0 votes
1 answer
105 views

Can someone explain to me how does the AirTm work?

Can anyone explain to me how does the AirTm work? I understand the basics of it, but the entire process doesn't appear "smooth"..Basically just wanted to check can I get the money the ...
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1 vote
1 answer
196 views

Why not solely use IRA for investing taxed income

My understanding of IRA is that withdrawing up to amount contributed does not incur tax penalty. So I can basically withdraw any amount of taxed income I contribute. It just seems like too good to be ...
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3 votes
3 answers
872 views

Formula for "How long until balance 0" with compound interest and withdrawals?

I an looking for a formula which returns "n" for a given combination of Starting balance (1M) Withdrawal rate per year (80k) Expected interest (8%) I looked around but couldn't find a ...
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  • 153
0 votes
1 answer
87 views

529 withdrawal: Does it matter who makes the purchase?

Building on this question where it is made clear that it is better to have the distribution paid to the beneficiary, rather than the parent/guardian... does it matter who makes the original purchase? ...
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0 votes
1 answer
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Are there any penalties or tax consequences if an person decides to take money out of a Roth IRA account prematurely?

Say a person has a Roth IRA account. Now the money in the Roth IRA account is already post-tax contributions. However, say the person has made a significant capital gains on their Roth IRA investments....
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  • 159
4 votes
1 answer
128 views

401K balance while in foreign company branch

I have transferred from a US company to a branch in home country. I'm paid through local country payroll and have no ties with US or the US branch payroll any longer. When I requested a distribution ...
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-5 votes
2 answers
146 views

Compound Interest Problem [closed]

Vanessa decides to invest R 140,000 into an account earning 13.5% interest per year, compounded quarterly. This new account allows her to withdraw an amount of money every quarter for ten years after ...
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1 vote
1 answer
78 views

What are the conditions required by a US bank to withdraw an international wire transfer?

A friend of mine was probably close to being defrauded (he is a painter, someone sent him a document certifying that he did a wire transfer to his bank for three painting he wants to buy, asked for ...
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-1 votes
1 answer
51 views

Withdrawing funds from a professional money management account

I would like to invest some cash from my saving account into a professional money management account, for example, Fidelity Go being a robo advisor so that somebody else (not me) takes care of all ...
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0 votes
1 answer
62 views

Overpayment at time of 401k withdrawal, during 2020

Asking for someone else. If, during 2020, one did an early withdrawal funds from a 401(k) and/or IRA, and one elected for extra withholding (above its final tax rate), when would that get returned? Is ...
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1 vote
0 answers
16 views

What will the following year tax burden be on partial repay of an premature 401K withdrawal?

What will the following year tax burden be on partial repay of an premature 401K withdrawal? I quit my job. I have a 401K from the previous employer -- and took out a partial money due to COVID ...
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1 vote
0 answers
56 views

Are you taxed on money withdrawn from a Roth IRA to pay for alimony?

A QDRO allows a non-penalized distribution from a Roth IRA due to a divorce but what if money is taken out and used for alimony that is not specified in the QDRO? Form 8606 Part III, Line 19 is where ...
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1 vote
0 answers
73 views

Withdraw after-tax contributions from 401k without penalty

In my most recent payroll (which included bonuses), I messed up my contribution % for pre-tax and after-tax 401k. I ended up with $10k in pre-tax and $44k in after-tax (+4k in employer matches), when ...
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1 vote
0 answers
32 views

401k withdraw penalty free? [duplicate]

Can I withdraw 90% of my 401k funds (I'm under 59 years of age) under the new stimulus bill that was signed in December 2020? Even though the CARES act expired, according to this article https://www....
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3 votes
0 answers
69 views

401K withdrawal while leaving the country

I see this question has been asked before but it seems not from this angle. I'm leaving the country soon and I will not be able to continue contributing to 401K here. While some may argue that it is ...
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4 votes
1 answer
133 views

After converting after-tax 401(k) into Roth IRA, can the 401(k) contributions be withdrawn from the IRA without penalties?

https://www.investopedia.com/articles/personal-finance/063015/roth-401k-vs-roth-ira-one-better.asp mentions this upside of Roth IRA regarding pre-retirement withdrawals: A final advantage is greater ...
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3 votes
2 answers
77 views

How do I figure Roth IRA withdrawals after converting multiple times?

I am converting assets from a traditional IRA to a Roth IRA over multiple years. I know that I cannot take any withdrawals from the Roth before 5 years from the start of the year when I first ...
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4 votes
2 answers
164 views

what percent of my investments can I take out annually if I want it to still grow after beating inflation and taxes annually?

I'm interested in learning how much money one might have to save and invest if they are aiming to live purely off of the capital gains from their investments while still allowing their money to grow ...
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  • 153
5 votes
1 answer
116 views

529 distribution pro-rata with multiple accounts

With multiple Roth IRA accounts, distribution ordering rules treat all accounts as one. Does this rule generally also apply to 529 accounts? That is, if I am the owner on multiple 529 accounts, are ...
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6 votes
1 answer
1k views

Can I close my money in HSA and transfer it to another bank account and use it for non-medical purpose?

In the US, I have funds in my HSA account. If I were to close the account, transfer the funds into another bank account and move out of the US. Can I use the funds from this new account for non-...
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1 vote
1 answer
2k views

I have two debit cards for same account with different limits can I use two cards for maximum withdrawal?

I got State Bank of India Classic debit card with a daily ATM transaction limit of 20,000 INR per Day, and also got State Bank of India International Visa card with Daily ATM limit of Transaction 40,...
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3 votes
1 answer
95 views

Withdraw and return Roth IRA contributions?

If I have a Roth IRA with $10k, $8k of which was contributed by me then can I withdraw $4k and put it back? I understand that it won't be taxed since it is already "after-tax" money but ...
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0 votes
1 answer
83 views

CARES Act 401(k) withdrawal

I desperately need access to my money in my Roth 401k at work (according to me). However, my situation does not qualify me to take money out under current CARES Act rules though both the Treasury ...
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2 votes
1 answer
50 views

CARES-related withdrawal: eligible plan vs. opt-in

It seems a qualified individual with an eligible retirement plan can apply CARES act provisions with regard to withdrawals/distributions received during calendar year 2020, whether or not the plan ...
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3 votes
0 answers
110 views

Withdrawing from after tax 401k rollovers to Roth IRA

I have after tax contribution. I have setup Roth in plan conversation. If I rollover that money to a Roth IRA, which I can do since it is after-tax money. Do I have to wait for 5 years to withdraw my ...
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1 vote
1 answer
97 views

Replacing money in Roth IRA after withdrawals?

In a Roth IRA account funded entirely by after-tax 401k rollovers (mega backdoor), is it possible to use the 60 day replacement rule like in this answer assuming only the principal is being taken out ...
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0 votes
0 answers
97 views

Pull money out of old pension and start a stock trading account? [duplicate]

I have 10k in an old pension plan with a company I no longer work for. I have a 401k currently with my present employer and would like to take the 5k and start an stock trading account. Would this be ...
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0 votes
1 answer
705 views

Effect on margin of a cash withdrawal

I have a Reg-T margin account with Interactive Brokers. I would like to confirm my assumptions about the effect that making a cash withdrawal on margin would have on the account. Let's say I have $200 ...
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1 vote
1 answer
44 views

NY State retirement withdrawal and management

My wife worked for ~4 yrs at a school in NY. She was entitled to a retirement package. It states that she as a contribution balance of $4,477. She does not want to go back to work as we are raising ...
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2 votes
1 answer
80 views

Is selling the contribution in Roth IRA to be avoided if at all possible?

I just heard of the rule stating that the contribution into Roth IRA can be sold at any time, any age, without a 10% penalty or any tax liability? It sounds like an advantage, but it sounds like ...
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0 votes
1 answer
110 views

Are there any penalties when selling my stocks and withdrawing from my ROTH IRA during the 2020 COVID Crisis in May?

I know there is a penalty if I withdraw if I'm under 59 years old. But was there a new law that took effect to let us sell and withdraw from our ROTH IRA without a penalty or tax liability?
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17 votes
8 answers
11k views

The "Cares act" allows $100,000 of 401k withdrawal without penalty. What are the reasons not to do this?

From this website , we can pull out $100,000 from our 401k without penalty. Distributions taken from qualified retirement plans received during 2020 of up to $100,000 for COVID-19 related ...
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  • 566
2 votes
1 answer
229 views

Does purchasing a second home qualify for 401K hardship withdrawal?

I just asked Vanguard and they checked my withdrawal availability: Either Hardship withdrawal may only be taken for the following purposes: Purchase of a primary residence. Prevention ...
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  • 357
2 votes
1 answer
83 views

How to tell the IRS about Roth IRA gains on early withdrawal?

I had to give some of my Roth IRA to my ex-wife, and didn't do it in the wisest manner. How now do I tell the IRS that only about $80 of the $3,570 that I sent to her are taxable and penalizable ...
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5 votes
3 answers
273 views

Best Way to minimize taxes on 401K distribution?

I recently retired at 57 after 36 years with the same employer. I live pretty frugally and my pension is $90K covers all my normal living expenses. I have approximately $2M in retirement savings most ...
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1 vote
0 answers
41 views

Is an online "savings withdrawal" calculator a reasonable model for retirement investment draw downs?

I want to calculate a two-phase retirement, with Phase I being the period prior to filing for Social Security retirement benefits, and Phase II being the post-filing period. Is it reasonable to use ...
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2 votes
3 answers
329 views

Estimating nest egg and inflation

First a couple paragraphs for me to lay out my understanding and then my actual question. It is often reported that one can estimate how much they need for retirement by taking their current expenses ...
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0 votes
2 answers
135 views

Taxes on 401k withdrawal

I’m a bit confused why my dad had so much in fees withheld when he pulled some money out of his 401k. He is 67 and his 401k is through ADP. He wanted to withdraw 5k dollars. We did all the paper work ...
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2 votes
0 answers
73 views

What's wrong with transferring $12,000 from RRSP to RRIF and withdraw $2000/yr 65-71 inclusive? Why doesn't this give you $12000 out RRSP tax-free?

I live in ON. Jim Yih wrote Are You Taking Advantage of the Pension Income Tax Credit? Transfer RRSP to a RRIF. At age 65 transfer $12,000 to a RRIF and take $2000 out per year from age 65 to 71(...
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5 votes
3 answers
235 views

When do we have to pay the tax for 401K withdrawals?

I am planning to withdraw money from my 401K to use it for down payment on a house. The question is, when do I have to pay the tax? If I withdraw it in 2020 after I file my tax return, would I pay the ...
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  • 357
1 vote
4 answers
1k views

How to withdraw cash from a credit card if the cash advance limit has been reached

I have a German bank account and a Visa credit card attached to it, but left Germany some time ago and live in a non-European country. Last Monday a bank officer from the German bank called me on my ...
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  • 503
6 votes
1 answer
715 views

Strange withdrawal from checking account

I got a notice that there was an ACH withdrawal yesterday from my checking account of $225.38 by OPENSKY PHONE PMT. I'd never heard of OpenSky before and I'm not sure what a "phone pmt" is. I called ...
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2 votes
1 answer
137 views

How should trust payments be arranged to preserve the principal?

Many trust funds are designed to keep principal intact while generating a steady revenue stream. They do this by paying out some percent of net asset value and, assuming the trust fund grows faster ...
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