IRA Rules

Archive for the ‘IRA Withdrawal Rules’ Category

Question: I took money out of an IRA last month, but I want to roll some of it back into the same account.?

Am I allowed to roll it back into the same account, or do I have to roll it into another IRA account in order to satisfy the IRS 60 day rule for not being taxed on an IRA Withdrawal?
Caveat Emptor, I only want to put some of it back into an IRA. I searched the internet and I didn’t find anything that required me to put the whole amount back in. I realize there are taxes and penalties on the part that is a permanent withdrawal. Do you know of any site that says that I am required to put the full amount back in?

Answer: Dear Cissy: Either works but I would NOT open a new account as the new trustee can not help you with coding the roll over and the original trustee will not know about it.

Roll over the money to the original account and pray they code it correctly on your 1009-R next year. If it is not coded correctly it can be reported correctly on your tax return but I guarantee letters will be generated from the IRS, a real big pain in the you know what. I have written several letters this past year to try and explain the r/o monies. You are on target with the 60 day rule.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more Errol Quinn Enrolled Agent

Reeling in the Years 1993-3

Question: What are the rules for withdrawing contributions from a Roth IRA?

Is the only restriction that you can only withdraw contributions after the roth account has been open five years, or are there additional restrictions? For example, if my account has been open 10 years, can I withdraw contributions made 2 years ago?

Answer: It looks like you can withdraw contributions from RothIRA penalty and tax free any time, without waiting for 5 years. The IRS article about RothIRA doesn’t mention much about penalties, and both Fidelity and Vanguard state that “Roth IRA contributions can always be withdrawn at any time without penalty” (from the Fidelity site). The penalty and the 5-year rule only apply to withdrawing earnings. And by the way wherever the 5-year period is mentioned, it’s clear it’s referring to the age of the account, not of the money being withdrawn.

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Question: Are you losing it all in the market?

I am devastated. I have well diversified stocks and i am NOT panicking.
Playing by all the rules! I am using the my withdrawals from my IRA to make my property tax and condo maintence fees. Now i may lose it all.
I have $575,000. down from $1,400,000!
I have been losing in this bear market for 7 years.
secular bear market

Answer: You may be playing by all the rules set down by the regulators but apparently you never bother making you’re own rules for investing.

Every investor/trader must have 4 major plans in place before they trade/invest
1- A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. And the first item in your plan should be ‘never go into an investment unless you know when and/or where you are going to get out.
2 – Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you trade/invest.
3 – A written money management program in place. Part of sound money management is to control your invested capital, If a stock goes down 8-10% get out, you can always buy it back.
4 – A full and complete understanding of the rules & regulations of the industry.

Here are some of the rules that I follow and have been following for many years,
1-The first and primary rule should be never enter into a trade withoutknowing when and where you’re going to close the trade.
2-Never invest on emotions; feelings have no place in determining investments.
3-Only buy stocks with real sales and real earnings, does not apply to pennystocks since they are crap shoots and are traded as fun things and not as investments.
4-Only consider buying stocks with each of the last three years’ earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.
5-Avoid cheap stocks, buy only higher quality stocks selling $10 a share and higher.
6-Never buy if the firm is filing or in bankruptcy.
7-Learn how to use charts to see sound bases and exact buy points.
8-Stay with up trending stocks, never buy on down trends. This does mean “the trend is your friend”.
9-Always buy companies with new ideas, styles or products.
10-Cut every loss when it’s 8% below your cost. Make no exceptions so you can always avoid huge, damaging losses. You can always average “up”..
11-Follow selling rules on when to sell and take profit on the way up.
12-Never average down
13-Always sell when management cuts sales or earnings forecasts
14-Buy when market indexes are in an uptrend.
15- Reduce investments and raise cash when general market indexes show five or more days of volume distribution.
16-Pick companies with management ownership of stock.
17-Select stocks with increasing institutional sponsorship in recent quarters.
18-Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock’s industry
19-Don’t buy because of dividends or P-E ratios.
20-Find out if the market currently favors big-cap or small-cap stocks.

I don’t mean to preach, only trying to help you going forward. Good luck in the future, stary with it, it has to get better for you.

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