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72 votes
Accepted

Why would a trading platform only allow withdrawal to the source of payment?

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 ...
Brythan's user avatar
  • 21k
70 votes
Accepted

Withdrew £2800, but only £2000 shows as withdrawn on online banking; what are my obligations?

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 ...
SJuan76's user avatar
  • 2,545
64 votes
Accepted

How do the rich and wealthy withdraw from accounts without leaving home?

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 ...
Mike Scott's user avatar
  • 23.5k
59 votes

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

There are a couple reasons: You don't qualify. From your link: Distributions taken from qualified retirement plans received during 2020 of up to $100,000 for COVID-19 related purposes are allowed ...
yoozer8's user avatar
  • 9,533
40 votes
Accepted

IRS sent me a letter...I messed up by unwittingly taking money out of a Roth IRA and reporting it incorrectly

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, ...
Hart CO's user avatar
  • 70.6k
33 votes
Accepted

Ask FBI permission to withdraw large sums from your checking or savings?

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 (...
Hart CO's user avatar
  • 70.6k
22 votes

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

When you put money into the HSA, you didn't pay any tax on that amount. Now that you want to take money out, if you don't have any medical expenses to offset the amount you are withdrawing, you will ...
Ben Miller's user avatar
  • 116k
21 votes

Withdrew £2800, but only £2000 shows as withdrawn on online banking; what are my obligations?

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 ...
MonkeyZeus's user avatar
  • 8,513
21 votes

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

Getting money into qualified plans is difficult. Currently the tax law allows $19,500/year to be self contributed and in previous years it was less. It would take many years of maxing out ...
Pete B.'s user avatar
  • 77.2k
17 votes

Withdrew £2800, but only £2000 shows as withdrawn on online banking; what are my obligations?

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 ...
Harper - Reinstate Monica's user avatar
17 votes
Accepted

How can I withdraw money from Inherited IRA and credit it to last year?

You cannot backdate a withdrawal from an IRA. The backdating of contributions is explicitly allowed in the IRC (See 26 USC 219(f)(3)), but there's no such provision for withdrawals (See 26 USC 408(d))....
littleadv's user avatar
  • 178k
16 votes

How do the rich and wealthy withdraw from accounts without leaving home?

This is a facility called Home Banking, which banks in some locations offer. You do not necessarily have to be super-rich to use it though. Kotak Mahindra Bank has been offering it here in India for ...
Masked Man's user avatar
12 votes

pending recession: keep money in 401k or savings account?

You are asking whether you should withdraw money from your 401k because you are concerned about economic downturn which might cause your investments to decline in value. No. You should not. The reason ...
Matthew's user avatar
  • 3,150
11 votes

Are you allowed to withdraw from 401k for no reason if leaving the company?

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) ...
littleadv's user avatar
  • 178k
11 votes

401(k) distribution tax calculation

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 ...
D Stanley's user avatar
  • 138k
10 votes

Income tax effects of 401(k) hardship withdrawal to purchase home?

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 ...
littleadv's user avatar
  • 178k
10 votes

IRS sent me a letter...I messed up by unwittingly taking money out of a Roth IRA and reporting it incorrectly

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 ...
TTT's user avatar
  • 47.2k
10 votes

Why would a trading platform only allow withdrawal to the source of payment?

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 ...
user541686's user avatar
  • 3,369
10 votes

Can a withdrawal on another party's bank account succeed if that account is insufficiently funded or is closed?

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 ...
Hart CO's user avatar
  • 70.6k
10 votes
Accepted

Taxes on 401k withdrawal

That seems reasonable given the facts presented. Normally, a 401(k) is a tax deferred account (you can have after tax money in there but that is less common so I ignore that possibility). The ...
Justin Cave's user avatar
  • 27.8k
10 votes
Accepted

Best Way to minimize taxes on 401K distribution?

You should consider the option of converting a chunk into a Roth account every year (instead of into a taxable account). The (small) disadvantage is that it is basically 'stuck' for five years; the ...
Aganju's user avatar
  • 37.7k
10 votes
Accepted

Is withdrawing all one's deposits a good tactic on pressing on the state?

"will liquidate all IRA and 401k" - ROFL, let's all pay 50% tax on our savings to the government, that'll show 'em! These kinds of messages are essentially a pump and dump scheme on steroids....
littleadv's user avatar
  • 178k
9 votes

IRS sent me a letter...I messed up by unwittingly taking money out of a Roth IRA and reporting it incorrectly

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 ...
Pete B.'s user avatar
  • 77.2k
9 votes

Why would a trading platform only allow withdrawal to the source of payment?

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 ...
Philippos's user avatar
  • 191
9 votes
Accepted

Implications of withdrawing Roth IRA contributions before age 59?

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 ...
Craig W's user avatar
  • 16k
8 votes
Accepted

Borrowing against 401k for first home - things to watch

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 ...
Ben Voigt's user avatar
  • 6,788
8 votes
Accepted

Strange withdrawal from checking account

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 ...
BrianH's user avatar
  • 11.7k
8 votes
Accepted

RMD, how is it withdrawn?

For IRAs (including SEP and SIMPLE IRAs), RMDs are calculated for each of your IRAs, and you can choose whether to aggregate and withdraw it all from one account or split it. As long as at least the ...
Stan H's user avatar
  • 7,716
7 votes

How can I withdraw money from my LLC?

There are TWO parts to an LLC or any company structure. Liability shield This being the entire point of creating an LLC. The context is that a lawyer is after your LLC, and he's arguing that the ...
Harper - Reinstate Monica's user avatar
7 votes
Accepted

Contribute extra to companies 401k with the intention of withdrawing it for house down payment?

There is no exception for traditional 401(k) withdrawal limitations for first time home purchases; if you read that somewhere, you read incorrectly. If you take a distribution from your traditional ...
Joe's user avatar
  • 35.9k

Only top scored, non community-wiki answers of a minimum length are eligible