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 ...
- 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Withdrew £2800, but only £2000 shows as withdrawn on online banking; what are my obligations?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 ...
- 2,455
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
...
- 22.9k
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 ...
- 9,506
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, ...
- 68.6k
39
votes
Accepted
If I switch jobs to a lower tax bracket right before I retire, do I save on 401k taxes?
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 ...
- 41.5k
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 (...
- 68.6k
23
votes
If I switch jobs to a lower tax bracket right before I retire, do I save on 401k taxes?
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 ...
- 48.9k
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 ...
- 115k
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 ...
- 8,045
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 ...
- 75.7k
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 ...
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))....
- 162k
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 ...
- 3,048
11
votes
Withdrawing cash from investment: take money from underperforming fund?
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 ...
- 17.3k
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) ...
- 162k
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 ...
- 129k
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 ...
- 162k
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 ...
- 47.1k
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 ...
- 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 ...
- 68.6k
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 ...
- 25.7k
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 ...
- 37.5k
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....
- 162k
9
votes
Accepted
What should we consider when withdrawing a large amount of money from a bank account?
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 ...
- 162k
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 ...
- 75.7k
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 ...
- 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 ...
- 15.2k
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 ...
- 6,768
Only top scored, non community-wiki answers of a minimum length are eligible