01-18-2006, 04:27 AM
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 Re: Avoiding extra tax on premature IRA liquidation? "Ted" <Ted[at]ixmil.com> wrote: - quote - > I just closed out my IRA. I put $8,000 into it and it went
To claim the exemption based on unemployment, you must have> down to $2,700 over the years. It just didn't seem to be > worth the hassle to keep it going. Did it in December, if > that matters. > I have read that if I am unemployed and using the IRA money > to pay for my own medical insurance, I can avoid the > penalty. > I have been unemployed for several years (obviously my > unemployment benefits ran out a long time ago), and am > paying for medical insurance. I have a some self employment > income, but not much. My wife is also unemployed, but it is > voluntary; she never got any unemployment payments. > So, what kind of shape am in to claim the exemption from > penalties? Not that it is much; the tax on $2,700 won't be > all that high, and the penalty is only 10% of the tax > (right?), but every dollar helps. actually received benefits during the year. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#-1
01-14-2006, 03:26 AM
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| Avoiding extra tax on premature IRA liquidation? I just closed out my IRA. I put $8,000 into it and it went down to $2,700 over the years. It just didn't seem to be worth the hassle to keep it going. Did it in December, if that matters. I have read that if I am unemployed and using the IRA money to pay for my own medical insurance, I can avoid the penalty. I have been unemployed for several years (obviously my unemployment benefits ran out a long time ago), and am paying for medical insurance. I have a some self employment income, but not much. My wife is also unemployed, but it is voluntary; she never got any unemployment payments. So, what kind of shape am in to claim the exemption from penalties? Not that it is much; the tax on $2,700 won't be all that high, and the penalty is only 10% of the tax (right?), but every dollar helps. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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| avoiding, extra, ira, liquidation, premature, tax |
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