Archive for June, 2009
Ira Withdrawal Rules Home
June 25th, 2009
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Fed Ira Rules
June 21st, 2009
Question: Can a 401K administrator charge me to roll over my 401K due to termination?
I was laid off two months ago and my 401K administrator wants to charge me $130 to roll my money into my existing IRA with another broker. They did give me an option of keeping the money in the 401K with an annual fee of $150.
This sounds off to me. Why would they charge me to TAKE my money out? Is there a Federal rule for this?
Thanks!
Answer: have the new IRA broker do all teh transferring – I’ve never heard of such a thing, but it might be true
Pulp Fiction – Ca IRA pas
Ira Limits Rules
June 20th, 2009
Question: Roth IRA Taxation Issue and a case scenario?
I’m having issues understand some of the literature i’m reading on Roth IRAs. I understand that contributions to these plans are post tax dollars. Is it a correct assumption that all and any profits and returns (pending I follow the rules) from all investments will never be taxed?
Secondly, Lets say I make a $5k contribution on Jan 1, 2009. As of December 30th My gross salary for the year will be $50k. On December 31st I am awarded a bonus of $130k. I am now over the income limit for contribution to a Roth (which I’ve already funded)…What happens?
Answer: Jacques is correct about the contributions and earnings not being taxed if you follow the rules.
If you contribute too much to your IRA, you can withdraw the excess before the due date (including extensions) for filing your tax return for the year, and it will be treated as an amount not contributed. This treatment only applies if any earnings on the contributions are also withdrawn. The earnings are considered earned and received in the year the excess contribution was made.
You can find answers to all your IRA questions in IRS Publication 590, which can be found here:
http://www.irs.gov/pub/irs-pdf/p590.pdf
IRA Contribution Limits for 2009, 2010