Need it for a friend, I want to help him out.
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here you go cuz
ALTHOUGH 59 1/2 is generally the magic age for starting to receive IRA distributions without getting hit with the federal 10% premature withdrawal penalty tax (whether you continue to work or not), there are some circumstances under which you can get at your IRA funds even earlier without the penalty. Here's a rundown:
Annuitize Your IRA
One way to take money from your traditional IRA without incurring the 10% penalty is to "annuitize" your account. The way this works is that for five years, or until you turn age 59 1/2 (whichever is longer), you take annual cash withdrawals based on your life expectancy, as predicted by the IRS. To see how much time the IRS thinks you have left, visit the IRS Web site.
Here's an example. If the IRS actuarial tables predict you will live for another 20 years, then you can withdraw 1/20th of the balance in your account the first year. Then 1/19th of your new balance the second year. And so on. During the payout period, your distribution schedule cannot change or you will be hit with the 10% penalty. Once the payout period has ended, you can modify the schedule, take a lump payment or stop taking distributions altogether. If you do decide to take early withdrawals, consult a tax expert who has some experience in planning for penalty-free IRA distributions.
Withdraw Roth Contributions
The Roth IRA allows penalty and tax-free withdrawals of contributions for any reason. But remember, once you've taken out that money, you don't have the option of replacing it. For 2008, your Roth IRA contribution is limited to $5,000 or $6,000 if you will be age 50 or older at the end of the year (less if your adjusted gross income exceeds $159,000 if you file jointly; $101,000 if you are single).
Take a 60-Day Loan
You can withdraw funds from your IRA for up to 60 days tax- and penalty-free as long as you return the funds to an IRA by the end of the 60-day period. The IRS looks at this as a nontaxable rollover. Just make sure that the funds are back in an IRA within the 60 days, otherwise it will be treated as a withdrawal that is subject to taxes and penalties. Also, if you follow this strategy, you can only do it once within a 12-month period for the account in question.
Special Penalty-Free Withdrawal Situations
- First-time home purchase: Up to $10,000.
- Qualified education expenses: For you, your spouse, your kids or even your grandkids. Approved expenses include post-secondary education, tuition, books, supplies and, if the student is enrolled at least half-time, room and board.
- Disability: To qualify for a disability exemption, you must prove that you are incapable of working.
- Unreimbursed medical expenses: Expenses must exceed 7.5% of your adjusted gross income.
- Health insurance for the unemployed: Only after 12 consecutive weeks of collecting unemployment benefits.
A final note: Before you start dipping into your retirement stash, you should explore other options including a standard bank loan. If you must withdraw funds from an IRA, avoid paying taxes by withdrawing contributions from your Roth IRA first. And tap a tax-deductible IRA last. Above all, use these tax-sheltered accounts as a last resort. And before you raid your retirement savings, make sure you are leaving enough to support your actual retirement. Use our retirement worksheets to help you make your calculations.Comment -
Brock you fuk
I just want the fukkin cash without all this bull shit
Guy has some issues and needs cash fastComment -
annuitize your account..Comment -
Can you do that without penalty? I believe you avoid penalty only if you utilize all of the amount. If you don't, I believe you pay a penalty, close to 10%.Originally posted by obamaismyuncleComment -
Seriously JJ, PM or e-mail me the details, I am a CPA, and no, I am not kidding. If you can give me the background info., I will tell you what the deal is....Comment -
Annuitize Your IRAOriginally posted by jjgold
One way to take money from your traditional IRA without incurring the 10% penalty is to "annuitize" your account. The way this works is that for five years, or until you turn age 59 1/2 (whichever is longer), you take annual cash withdrawals based on your life expectancy, as predicted by the IRS. To see how much time the IRS thinks you have left, visit the IRS Web site.Comment -
JJ the guy is you stop the bull$hit..stop betting ten games a night and get control of yourself. You might end up living in a shack with Bobby Sandals...or run into Sammy at a gay bar...Comment -
I don't think this is even an option in this case, people who need money from their IRA before 59 1/2 need it in big chunks, generally NOW.....Originally posted by Brock LandersComment -
Originally posted by G's pks
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JJ, you have a friend?[B][B]They key isn't getting rich quick. The key is getting rich slowly, and enjoying it.
[/B][/B][SIZE=1][URL="http://forum.sbrforum.com/sbr-points/490161-points-available-loan.html#post4633361"][/URL][/SIZE]Comment -
Originally posted by G's pks
JJ did you meet this friend in a steam room?
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spindle him for the cashComment -
I am no longer responding to threads to where I can be of help.Comment -
Originally posted by BGS 9.5
you can still help!!!!
Send double "J" 20 G's!
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You are cashing in a member of the Irish Republican Army? Where do you got him stashed.Comment -
wow you can take out up to 10k for a first time home purchase??? and with all the first time home buyer rebates going on... i might have to look into it. buy a shitty small house, and rent it out as income...Comment -
Originally posted by big0mar
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JJ how is "Auntie"?
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Fuk you
I am trying to help a friend out
Its not for me!!!!!Comment
