M said...
I have a SEP IRA through my employer. We just transitioned to a 401K this month. Instead of rolling my SEP IRA into my 401K, I've been contemplating cashing it out (~$35K)and paying off family debt obligations (credit card, car loans). My understanding is that the withdrawal *may* only be subject to simple tax (10%) when time time comes to file my 2010 return. I haven't calculated capital gains/losses, but according to my statements over the past 3 years total income earned on this SEP IRA is less than $600. Am I overlooking something?
Friday, July 30, 2010
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3 comments:
Dear Reader, thank you for visiting our blog and posting your question.
When you made contributions to your SEP IRA, it was allowed as a deduction to you. In other words you have not paid ANY tax on these retirement contributions. When you withdraw these funds before reaching the age of 59 1/2 yrs, you are subject to early withdrawl penalty of 10% in addition you will be paying regular income tax not capital gains tax. Therefore, your tax bill will be much higher.
We hope this answer will help you make your decision.
Good luck,
Web Tax Office Team
http://webtaxoffice.com
Hi,
I have a question. I have a student loan that I took out in Jan, 2004. The total loan amt. was 16,205.00. If the monthly payment is 150.00 then what would be the payoff amt. right now? The reason I'm asking is that I took the loan out with an online student loan service and I want to make sure that their accounting is right. They don't have a brick and mortar location so I can't sit down with someone.
It seems that they may not have applied all my payments and the full payoff amt. seems too high to me.
I've used online loan calculators and I'm still confused. Could you help?
Thanks very much!
Hi,
I took out a student loan from an online lender back in Jan. 2004. The total amt. was 16205.00. I want to pay it off in full but the payoff amt. seems too high.
I want to be sure they did their calculations properly. With monthly payments of 150.00 at 2.75% interest, what would the payoff amt. be?
Of course they have that listed on my account but I want to be sure it matches. The payoff amount they have on my account seems too high.
I've used online loan calculators but I'm still confused. Could you help?
Thanks!
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