72

Because if they allow chaining, you can do the following scam: Deposit money via a credit card (possibly stolen). Withdraw money via PayPal. Withdraw the money out of PayPal. Trigger a chargeback on the credit card. So if the credit card company awards the chargeback (which they tend to do if the card was stolen), then the platform is out the ...


67

Technically, you have no obligations. You asked for £2800 from your bank, satisfied your bank's requirements (ID, having the funds, whatever) and you were handed £2800. You never lied or misrepresented anything and always acted in good faith. You are not required to connect to your online banking to double check the teller's work. Now, that does not mean ...


63

Many services are available to people who are wealthy enough to use private banks. The linked Wikipedia article says: ...banking services (deposit taking and payments), discretionary asset management, brokerage, limited tax advisory services and some basic concierge-type services, offered by a single designated relationship manager. Having cash ...


40

There could be a few reasons for this, my first guess is that you didn't report the distribution on your return (indicated on line 15 of your 1040, pictured below), the IRS got a copy of the 1099-R, and assumes it's all taxable (or maybe the 1099-R indicates the full amount is taxable). If a 1099-R doesn't have an amount populated for 'taxable amount' it ...


39

Your tax bracket is determined by your total taxable income in a given year, where money drawn from a traditional-style deferred-tax 401k or IRA is taxable income. (Money drawn from a Roth account was taxed before deposit and is not taxed when withdrawn after the relevant date.) Your recent salary history has no effect on this, except salary in the same ...


33

Is it true you have to file papers with the government in the US to withdraw large sums of cash at your local bank branch? It's true that a currency transaction report (CTR) gets filed with FinCEN (Financial Crimes Enforcement Network) when you make a cash transaction in excess of $10,000. Banks have systems that do this automatically, so you don't have ...


23

Your prior earnings have absolutely no bearing on the taxes due on 401k disbursements. Your 401k disbursements are considered income in the tax year in which they are received; whether or not you earn or otherwise acquire additional income. There's no telling what tax brackets and rates will look like that far in the future. But, if your total income ...


21

Do you want a legal opinion or a moral one? Morally You should notify them as soon as possible or else some poor employee is gonna have a really, really bad day/week/month/year. Legally You don't have to do anything until they question you about the transaction. However, once it comes to light then you had better be ready to either have an additional £...


16

You have an obligation to tell them. That's not just a moral obligation; it's also a legal one. This has been proven time and again in court cases and criminal prosecutions, particularly when a defendant finds a way to trigger a bank error in their favor, and triggers it repeatedly. However, you have done that. Regardless, as the old joke goes, "Haha, ...


13

If your credit card's interest rates are not more than your 35% (25% for your tax bracket and 10% penalty), there is no way I would consider this. If you boil it down to the numbers, you are asking whether you should borrow money at a 35% interest to pay off your credit cards. I would say Absolutely Not! $20K of auto loans which equal $1100 a month in ...


12

The only card I've seen offer this on credit card purchases is Discover. I think they have a special deal with the stores so that the cash-over amount is not included in the percentage-fee the merchant pays. (The cash part shows up broken-out from the purchase amount on the statement--if this was purely something the store did on its own without some ...


12

As long as you're willing to pay the taxes and the penalties, once you're no longer employed you're allowed to do whatever you want. You can always do an "direct roll-over" (See IRC Sec. 401(a)(31)(A) which mandates this) and then withdraw from another qualified account, thus creating a withdrawal, if they refuse to just mail you a check (Why would they care?...


11

The root of the advice Bob is being given is from the premise that the market is temporarily down. If the market is temporarily down, then the stocks in "Fund #1" are on-sale and likely to go up soon (soon is very subjective). If the market is going to go up soon (again subjective) you are probably better in fictitious Fund #1. This is the valid ...


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 ...


10

I would create a "Rollover IRA". These IRAs are designed to take funds from a 401k and allow you to invest them without incurring a cash out penalty nor a tax due. You will have more choices than if you leave it at your old 401k. If you cash out the 401k, you'll have much less to invest ($1500 - penalty - taxes) vs. doing a rollover 401k where you'll ...


10

Generally if you need to tap into your retirement for the house - you probably shouldn't buy the house. But that's your call. There are several things you could do. Sue your CPA "friend" for malpractice. Especially if there's any actual proof of that stupid suggestion. Check with your 401k administrator about home-purchase loan from the 401k. You'll be ...


10

I just want to point out something that seems to be generally true: If you are supposed to report something to the IRS, and you don't, the IRS will probably send you a letter assuming the maximum possible tax liability, and it's up to you to prove that scenario is incorrect. In your case you obviously owe no tax, but since you didn't report it, the IRS ...


10

I think there's (also?) a different reason than in the accepted answer. In general, credit card companies don't allow merchants to do cash-equivalent transactions, because they expect those to be done as cash advances. So if you could deposit with a credit card and then withdraw cash, you'd bypass the implications that come with cash advance (interest ...


10

There is also (or maybe even most important) a legal reason: As soon as a company transfers money from a source to a different place (like it would happen in this case), it fulfills the definition of a bank in many countries like all EU countries. And this requires the company to fulfill all of the strict rules a bank has to fulfill (regarding funds security,...


10

An ACH transaction is roughly equivalent to a check. An attempt to withdraw too much may get paid and trigger an overdraft state, or may be declined (and trigger an insufficient funds fee). These decisions are typically fairly complex and have to do with overdrawn amount, account history, average balance, overdraft frequency, personal discretion, etc. As the ...


9

Whenever one takes a distribution from an IRA, it cannot be put back into an IRA unless one is doing something like (a) take a distribution from the IRA as a rollover where the owner gets cash in hand to be sent to the new IRA custodian within 60 days, and (b) deposit the money with the new IRA custodian within the prescribed time period. For distributions ...


9

withdraw in cash - bank reports it to IRS no matter what. Would this affect my tax filing in the coming year? No, and no. The bank doesn't report to the IRS. In the US - the bank will probably report to FinCEN. It has nothing to do with your tax return. withdraw in check - bank does not seem to report it. Is this correct? Doesn't have to. Still might, ...


9

The best thing you can do here is work with the IRS to the best of your ability. You can attempt to call them, attempt to go to one of their local branches in your area, or just hire an accountant to solve the problem. Just be mentally prepared to write a check. You could attempt to figure this all our yourself, but then a lot of tax law is open to ...


8

I prefer to use a Foreign Exchange transfer service. You will get a good exchange rate (better than from Paypal or from your bank) and it is possible to set it up with no transfer fees on both ends. You can use an ACH transfer from your US bank account to the FX's bank account and then a SEPA transfer in Europe to get the funds into your bank account. ...


8

You are not allowed to take a routine 401(k) withdrawal each year. There are specific reasons that you might be allowed to take a withdrawal and what you're proposing doesn't fit into those categories.


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 ...


8

Some questions to ask your 401(k) custodian: While you have an open loan, can you continue to make contributions as long as you keep up with the scheduled loan payments? Or are all paycheck deferrals treated as loan payments? (The reason this is important is that there is no employer match for loan payments, only for contributions, and lost match could far ...


8

You have done the right thing by contacting your bank immediately. Be sure to follow up with them regularly (weekly is very reasonable if you haven't heard from them on status), provide any paperwork promptly (filling a form claiming this was not an authorized payment, for instance), etc. You will also want to talk with your bank about the potential to ...


7

This question had better be asked of the 401k plan administrator rather than here. The plan document that you received when you began participating undoubtedly has a page or more of definitions of the terms used in the contract, and especially so if the meanings are nonstandard. For example, one would expect that a Final Distribution leaves a balance of $0 ...


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