| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 97.1 | roll it over to an IRA | SOLVIT::CHEN | | Mon Mar 09 1992 16:10 | 4 |
| If I am orrect, you can roll it over to an IRA account. And, if you
choose, you can ask them to send you a check every month on the
interest/dividend you gain on the account. You will pay the normal
income tax on the money you receive.
|
| 97.2 | | SUBSYS::GANESH | Ganesh | Mon Mar 09 1992 18:22 | 4 |
| Re .1 - I thought there was a 10% penalty (in addition to the
usual taxes) on any amount you withdraw prematurely out of an IRA.
Ganesh.
|
| 97.3 | | MR4DEC::GREEN | | Mon Mar 09 1992 23:05 | 19 |
|
.1 is misleading.
If .0 is asking about the 26 week payment for the eraly retirement
plan, the whole sum is taxable, but ask personnel about five-year
averaging.
If .0 is asking about the lump sum option for retirement payments, the
lump sum can be rolled over into an IRA tax free. Withdrawals from
that IRA are taxable events. It doesn't matter if it's principal or
interest: it would all be taxable.
Withdrawals from IRA's are subject to 10% penalties unless you are over
59 1/2 (or if you make withdrawals based on your life expectancy
percentages: a complicated loophole most people should ignore)
But this is the wrong place to ask for dependable advice. If asking
about the early retirement plans, ask personnel.
|
| 97.4 | | SOLVIT::CHEN | | Tue Mar 10 1992 11:54 | 14 |
| re: .2 & .3
.0> TAX DEDERED LUMP SUM RETIREMENT $
This statement from .0 left me the impression that this amount of $ is
already tax deffered. So, I took the liberty to assume that it is from
a 401K account. And the way to reinvest a 401K lump sum without getting
taxed and get penalized is to roll it over to an IRA.
As far as whether or not you pay the 10% penalty on the interest you
take out? Well, to be honest, I am not really sure about it. My original
understanding is that you can take the interest and just pay the tax
on what you take. But, I may find myself wrong about that. (as I just
did from your replies)
|
| 97.5 | Check WSJournal (10Mar92) for a article on this (Section C) | NYFDIN::SAMBAMURTY | Raja | Tue Mar 10 1992 20:21 | 1 |
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