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#3
10-22-2003, 11:39 AM
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 Re: Simple IRA Withdrawal gwtx2[at]yahoo.com (Greg) writes: - quote - > So, what constitutes a penalty of 10% or 25%?
The premature distribution penalty is 25% during the first 2years of a SIMPLE; 10% thereafter. Phil Marti Topeka, KS << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
10-22-2003, 03:56 AM
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| Re: Simple IRA Withdrawal "Dave Woods, EA" <d.woods[at]verizon.net> wrote: - quote - > "Greg" <gwtx2[at]yahoo.com> wrote:
So, what constitutes a penalty of 10% or 25%?> > I have a small, "Simple IRA" from a previous employer. I > > want to close out this IRA. Will I owe taxes and penalties > > on the whole amount, on the contributions only, or only on > > the earnings? Both, my employer and I, made contributions. > > My contribution was not taxed (cafeteria plan). > Not a cafeteria plan. > > Actually, what I have done is kept some of the money, and > > opened up an Education IRA with the remaining amount. I was > > told that a Simple IRA could not be converted into an > > Education IRA. Thanks > Taxable in full, and the penalty may be as much as 25%. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
10-13-2003, 05:28 AM
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| Re: Simple IRA Withdrawal gwtx2[at]yahoo.com (Greg) wrote: - quote - > I have a small, "Simple IRA" from a previous employer. I
As you now know, funds from a Simple IRA CANNOT be rolled> want to close out this IRA. Will I owe taxes and penalties > on the whole amount, on the contributions only, or only on > the earnings? Both, my employer and I, made contributions. > My contribution was not taxed (cafeteria plan). > Actually, what I have done is kept some of the money, and > opened up an Education IRA with the remaining amount. I was > told that a Simple IRA could not be converted into an > Education IRA. Thanks over to an Education IRA - because the Education IRA is NOT really an IRA. That is why such accounts are now called Coverdell Educational Savings Accounts. They have no relationship to retirement accounts. Make sure that you have not exceeded the $2,000 annual contribution limit. Withdrawals from your Simple IRA are generally treated the same as withdrawals from a traditional IRA, except for the two-year vesting rule. Generally, all withdrawals are fully taxable as ordinary income. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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10-13-2003, 05:28 AM
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| Re: Simple IRA Withdrawal "Greg" <gwtx2[at]yahoo.com> wrote: - quote - > I have a small, "Simple IRA" from a previous employer. I
Not a cafeteria plan.> want to close out this IRA. Will I owe taxes and penalties > on the whole amount, on the contributions only, or only on > the earnings? Both, my employer and I, made contributions. > My contribution was not taxed (cafeteria plan). - quote - > Actually, what I have done is kept some of the money, and
Taxable in full, and the penalty may be as much as 25%.> opened up an Education IRA with the remaining amount. I was > told that a Simple IRA could not be converted into an > Education IRA. Thanks -- David M. Woods, EA Boston, MA 02109 Postings here are general information only and not to be relied upon as advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
10-11-2003, 06:24 AM
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| Simple IRA Withdrawal I have a small, "Simple IRA" from a previous employer. I want to close out this IRA. Will I owe taxes and penalties on the whole amount, on the contributions only, or only on the earnings? Both, my employer and I, made contributions. My contribution was not taxed (cafeteria plan). Actually, what I have done is kept some of the money, and opened up an Education IRA with the remaining amount. I was told that a Simple IRA could not be converted into an Education IRA. Thanks << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| ira, simple, withdrawal |
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