"joetaxpayer" <joetaxpayer[at]nospam.com> wrote
On withdrawing from one's Roth IRA without penalty nor
taxes:
- quote -

A person can also remove up to $10k from one's Roth IRA for
a first-time home purchase up to $10k etc. per
http://www.irs.gov/publications/p590/ch02.html#d0e10668 and
so on, to get it out there. Using gains for that $10k is
allowed, as long as one follows the order of withdrawal
rules set by the IRS, also in Pub. 590, as I am sure you are
aware but to get it out there again.

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Elle wrote:
- quote -

I think you are right, Elle, my mistake above.

Deposit - can be withdrawn anytime
Conversion - needs to age five years

To remove gains without penalty, one must be 59-1/2, disabled or 72t(?).

That sound right?

Joe
www.blog.joetaxpayer.com

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"joetaxpayer" <joetaxpayer[at]nospam.com> wrote
- quote -

To avoid both a penalty and taxes, one can take the
conversion amount (sans earnings) out after five years
regardless of age, no?

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"mark4man" <sonic.max[at]verizon.net> writes:

- quote -

It depends. Your broker was telling you about costs that
the *brokerage* imposes. If you'd used no-load funds (you
didn't tell us what funds are in that Roth IRA, btw - a
Roth IRA is a kind of an account, not a specific investment
inside such an account), your broker would not "hit" you
for anything for cashing out. The other side of the
story, though, is what you mean by "cashing out".

If you mean "cashing out" to be moving from that broker
to another one, but keeping the account type intact (ie.
moving your Roth IRA funds from Broker A to Broker B)
you are fine - should be no additional costs.

But extracting funds from a Roth IRA (or any other IRA
or 401k) may have other costs. If you're younger than
retirement age, you may be hit with a 10% penalty on
some or all of the distribution. If it's a tax-deferred
account (ie. regular IRA or 401k rather than a Roth),
you also owe income taxes on it.

If it's a regular taxable account and you have a fund
which has increased in value substantially, you may have
capital gains taxes to pay on it, too.

- quote -

If you want to liquidate the account and spend the cash,
it's a full distribution. From IRAs, usually subject
to penalties (if you're too young, though with some
exeptions like purchase of a first home), possibly subject
to income taxes (see above), and finally, depending on
what's in the account, possibly subject to broker's fees,
too (that 1% in your example).

- quote -

Again, you're mixing apples and oranges here. A Roth IRA is
a kind of account. A Mid-Cap fund is a specific investment
which may be in your Roth, or it may not. It's not clear
to me what your situation really is, but it sounds like
your wife is probably right.


[off-topic below:]

- quote -

Egad - is this another google-groups-like web page wrapper
which makes it look like the newsgroup belongs to some web
service? It looks that way. In their FAQ, they mention
Usenet, but they frequently refer to the newsgroups as
"Talk About Network's Groups".


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On Jul 28, 4:01*pm, "mark4man" <sonic....[at]verizon.net> wrote:
- quote -

More than likely there is a 1% sales charge when you liquidate the IRA
from PNC. This would be applied if you took an RMD, did a rollover,
or cashed out. Each of these has different tax consequences and
depending on age, possible penalties. Rollover to another IRA and the
only fees paid would be the 1% on the PNC end.

The penalities mentioned would be for liquidating an IRA tax shelter
before age 59.5 because the withdraw would not be qualified. How old
are you? If you are close to age 59.5, you might be able to use rule
72t to your advantage.

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mark4man wrote:

- quote -

The 'mid-cap' is what? Just a post-tax brokerage account? Right? Not an
IRA of any kind. You are how old? And are in what tax bracket?
The mid-cap account as you call it may have tax due upon sale or it may
be a loss. Any idea what he cost was, and what it's worth now?

The Roth, was from deposits or a conversion?
If deposits, you can take the deposits out with no penalty, if
conversion, it needed to age 5 years or age 59-1/2 whichever comes
second, I believe.

The exact details are needed to give you answers that make any sense.
It can go either way, depending.
Joe

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mark4man wrote:

- quote -

Very little to do with financial, but be aware that setting up a sound
studio in a bungalow in TOWN is fraught with potential problems,
noise-level wise. One man's music is another's noise!

The bungalow is almost assuredly not set up to contain the SPL's usual
encountered and the neighbors might be a little miffed. And even the
police can become involved with ordinance violations. Noise does not
respect property lines. To convert a town bungalow to a good neighbor
will take a major $$$$$ renovation. Then add on the interior treatment
required (more $$$$$) to cut reflections and get an adequate recording
environment. Just to include some financial advise.

Been there, done that, got the t-shirt!

Chip

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Hello...

In addition to my 401K I have set up thru my employer...I have an
Oppenheimer Mid-Cap & a Roth IRA set up w/ PNC Investments. Several years
ago, my broker (now retired) told me my contract stated I could cash out
for a mere 1% hit (for both ventures).

Now...my wife (a bookkeeper) is telling me there are government penalties
& all sorts of other nonsense.

I want to cash out these two accounts & buy a bungalow in town, which I
want to convert into a recording/mastering studio.

So...what's the real story? How much do I lose if I cash out a Roth & a
Mid-cap?

Thanks,

mark4man

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