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104

I don't understand is it possible to buy stock at higher price than current price? This is a very common misunderstanding. Stocks do not have a "current price" that you can buy them for. Any "stock price" that you see quoted is not like a price in a store that means you can buy at that price. Instead, a "stock price" only tells you at what price the stock ...


41

I set 980 instead of 880 and it is fully executed. Suppose I'm on the other side of your transaction. I might own a stock worth around that $900 price, but have a $980 target. In other words, I'm happy to sell it for $980, so I have a standing sell order at $980. If any bids appear at $980, and I'm a willing seller at that price, I might see my order fill. ...


27

The limit order will match to best offer on books. Let's say the best sell price was 900, it will match to that. You will pay 900. Read How do exchanges match limit orders?


26

No, it is not true. That is one of the many "conspiracy theorists'" claims to not pay taxes, and is considered as frivolous (i.e.: punishable by very harsh penalties and criminal prosecution). Specifically to your question, the current Federal income tax framework was laid down in 1986, with the Tax Reform Act of 1986. It is codified under the title 26 of ...


22

You will not necessarily incur a penalty. You can potentially use the Annualized Income Installment method, which allows you to compute the tax due for each quarter based on income actually earned up to that point in the year. See Publication 505, in particular Worksheet 2-9. Form 2210 is also relevant as that is the form you will use when actually ...


20

You have 60 days from the time it came out to deposit the money into an IRA. Tell the IRA custodian it's not a 2012 deposit, but a rollover from a 401(k). Last - it's practice for these withdrawals to have 20% withheld. Be sure to deposit the full amount (i.e. add back in the 20% withheld) and also be sure it's all reconciled on your 2012 tax return. Edit ...


16

If the check was payable to you, you had 60 days to deposit to an IRA. But, it needs to go into the same type of IRA as the 401(k) was. i.e. if the 401(k) was traditional, it goes into a traditional IRA, If 401(k) Roth, it goes into a Roth. The 20% is not the penalty. The penalty is 10% for early withdrawal. The 20% is the tax withholding. If the 401(k) ...


14

I don't understand how it is possible to buy stock at a higher price than current price? The price listed on a stock ticker is not an absolute "price." It is simply the price at which the stock has most recently traded at. A trade will execute when books are able to match Buyer to Seller at an agreed upon price. In your example, you erroneously agreed ...


13

To supplement @littleadv's answer, I discovered that our friends at both Skeptics Stack Exchange and Politics Stack Exchange have also addressed this question — at least a few times that I could find. Please refer to: Skeptics SE: Was the 16th Amendment (income tax) improperly ratified? ... with an accepted answer posted by Money's own @...


11

You may have to pay a penalty of $500 if both of the following apply. What the IRS really cares about is you not withholding enough, so that you send them a big check (EDIT: during tax season). https://www.irs.gov/taxtopics/tc300/tc306 The United States income tax system is a pay-as-you-go tax system If you didn't pay enough tax throughout the year,...


11

I'm paying tax on the tax penalty? No, you're paying tax on the amount withdrawn to cover the tax. If you withdraw $31,250, you'll pay a tax of $31,250 * 20% = $6,250, netting $25,000. This process is typically called "grossing up". You could withdraw $30,000 and pay the other $1,000 of the $6,000 tax (plus the $3,000 penalty) out of pocket. Plus then ...


9

From [Roth-Comparison-Chart][IRS} Designated Roth 401(k) Account: No income limitation to participate The lack of an big income limit is a benefit of the Roth 401K. There is no penalty because there is no limit of the Roth version of the 401K. It get the company match, and it grows tax free. There is still a maximum amount that each person can contribute,...


8

You will owe penalty to file for year 1 and penalty for failure to file and penalty for failure to pay for year 2. Penalty for year 1 will be moot, since no tax is due, but the IRS doesn't know it until you file a return. If you don't - they'll "make up" a return on your behalf based on the information they have, and assess taxes and penalties based on that. ...


8

Do NOT talk to the IRS on your own. Get a EA/CPA licensed in the US and operating in your home country to help you catch up. US embassies have lists of some of those, check the embassy in your country. The penalties for US citizens living abroad are DRACONIAN. Where a US resident would get a slap on the wrist - you may be driven bankrupt and thrown into ...


8

In how much trouble can I get exactly if the IRS finds out? I understand that there's a 6 year statute of limitations on criminal charges and no limitation at all on fraud. Is this considered fraud? I'm assuming not. There's no statute of limitations for fraud (which is a criminal charge). The statute of limitations is for failure to report income ...


8

Can I withdraw up to $27,500 without any fees/penalties/taxes/implications? Absolutely. For the details see Form 8606 - Nondeductible IRAs, which you'd file if you took a Roth IRA distribution. In Part III, line 22, you enter your basis in Roth IRA contributions. If it's more than what you withdrew (line 19), the taxable amount would be zero, and no ...


7

Yes, it is possible. Several things to remember: Penalty free withdrawal is for contributions only. Employee match is going to the Traditional (non-Roth) 401k Withdrawing from your retirement contributions will cripple your retirements savings significantly due to the compounding effect of the missing earnings. Essentially, you're planning to shoot ...


7

In general, there are some exemptions that may apply to your situation, but may not, depending on the exact specifics. In particular the two exemptions that seem relevant: If your wife and son are resident aliens, they may qualify for a resident alien exemption. They would need to be bona fide residents of India, or some other country, for the full tax ...


6

There is no Roth 401(k) match. Or to be clear, when an employee deposits to a Roth 401(k), the company match goes into the traditional, pre-tax 401(k) account. That money is subject to both tax and 10% penalty on early withdrawal.


6

Assuming that the conversion was completely non-taxable (i.e. your Traditional IRA was 100% basis), then the converted money can be taken out at any time whatsoever (no 5 year or age stuff), without tax or penalty, similar to directly contributed money. For withdrawing conversions and rollovers within 5 years of the conversion or rollover, the penalty only ...


6

Does my plan make sense or am I missing something You're missing something. The match is always pre-tax and goes into the "traditional" part. Withdrawing it will trigger income tax + 10% penalty. Also, you may not be able to withdraw from 401(k) unless you leave your employer. And last but not least - you're missing the compounding effect of the early ...


6

The IRS provides a little more information on the subject on this FAQ: Will I be charged interest and penalties for filing and paying my taxes late?: If you did not pay your tax on time, you will generally have to pay a late-payment penalty, which is also called a failure to pay penalty. You will not have to pay the penalty if you can show ...


6

It used to be much more common, particularly for sub-prime loans. If you do run into someone offering a loan with a prepayment penalty, you should certainly consider other options.


6

Your friend would have only been liable for a tax penalty if he withdrew more 529 money than he reported for qualified expenses. That said, if he took the distribution in his name, it triggers a 1099-Q report to the IRS in his name rather than his beneficiaries. This will likely be flagged by the IRS, since it looks like he withdrew the money, but didn't ...


6

Now let's say i got that stock in my account, then do i get any penalty for buying it higher price? There's no "penalty" involved (at least in how I would interpret that term). If you had entered your intended price correctly (880), and if the price then went on to drop from 900 to that value (or below) then you would have got the stock at a lower price,...


5

Your account is your account, hers is hers. The fact that you file taxes jointly doesn't change that. The "I" in IRA stands for Individual. You cannot merge them. There are certain conditions when you can withdraw your IRA penalty-free, check this question for some pointers.


5

I did find this information from the US Department of the Treasury: What are the penalties for withdrawing money early from a Time Certificate of Deposit (CD)? Federal law stipulates that all time certificates of deposit (CD) that are cashed out early are subject to a minimum penalty. If you withdraw an amount within the first six days after deposit, ...


5

You can transfer 401(k) funds from a previous employer to an IRA, and invest it as you wish. That $600 should go to the current 401(k) or IRA. Edit - OP has edited his question. I agree with him that each situation is unique, therefore 100% of the details are needed up front to avoid the answers that would be right for everyone else. He offered a valid ...


5

If you withdraw the money, regardless of how small the balance is, the IRS will still insist you pay a 10% penalty when you file your taxes (assuming you're under 59 1/2). Your 401K plan provider might have a policy that allows you to avoid the usual automatic withholding. You should check with them. $600 in additional income isn't likely to move your tax ...


4

Since your comment on @JoeTaxpayer's answer says that you are still under the 2012 contribution limits if the extra money is left in your 401k account, I do not think that there is any problem for you if the money is left in the 401k account. As I understand it, your salary is $X for 2012 of which you contribute some percentage per paycheck to your 401k ...


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