IRA Rules

Posts Tagged ‘ira’

“401k To IRA Rollovers” Mauricio Garcia Chicago Area Specialist

Question: I am taking a withdrawal from my traditional IRA early (I’m 30), and am wondering how to deal with the taxes..?

I elected to have them withhold 20% federal tax. Will that be enough? My wife and I make a combined $75,000/year, and live in Idaho. Anything I am missing? Anything I’ll need to watch for when i file my taxes in April?
Thank you!

Answer: No that won’t be enough. Don’t forget the 10% penalty for withdrawing retirement funds before age 59 1/2.

Question: How much money should I have already saved at 28 years old?

What is the general rule of thumb? How much should I have saved in 401(k), Roth IRA, emergency funds, towards a down payment of a house, etc.

Answer: You should be bringing home at least your age. (take home pay)
And you should have one years salary (take home) in a savings account.
1/2 in a 401K – half in a savings for emergencies – car for cash – or down payment on house – wedding – honeymoon – etc.
/

Inheriting an IRA or 401(k)