Retirement After Age 70.5 Income Tax Question

Retirement After Age 70.5 Income Tax Question

Retirement After Age 70.5 Income Tax Question

Is there apenalty for not taking a withdrawl from a tax free account such as an IRA after reaching age 70.5?


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Annuity Withdrawal

If an annuity withdrawal (from interest earned) when added to other income is less than amount requiring tax payment from 1040 form, is tax payment still due?

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Early Retirement

by David
(Canal Winchester, OH)

I am considering early retirement at age 54. Can I withdraw from my IRA as much as I need to live on if I pay 10% penalties and regular taxes each year till I reach 59 1/2 ? Also do I have to pay tax on this money to local city and school since it isn't earned income?

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Early Retirement Question

by Steve
(Marietta, GA)

I was recently let go by my company after 30 years of service and I will start collecting my pension (a monthly lifetime annuity). Since I am only 52 - is this monthly payment subject to the 10% tax penalty like a lump sum distribution would be - or is it just subject to ordinary income tax ? Thanks!

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Early Withdrawal From Tradional IRA Due To Disability

I read on several websites that a person under age 59 1/2 can take a penality free early withdrawal/distribution from a traditional IRA if considered disabled. I am 58 1/2 years old and am considered disabled and currently receiving SSDI benefits.

In addition I received a lump sum amount from a workers comp insurance company a couple years ago. The workers comp. lump sum settlement represented $501 per month for my life expectancy. Some websites say IRS rules say that disability may be different than a person's SSDI status.

They also say a doctor needs to provide a letter stating that I am permanitaly disabled, etc. Can't I just attach a copy of my SSDI status and documentation from the workers comp insurance company to my tax return to show I'm eligable for the penality free withdrawal.

Doctors seem to hate to write letters (probably especially for the IRS) regarding patients. The doctors would know I'm on SSDI because they already filled out questionaires and forwarded medical records.

The doctors would wonder why the SSDI status wouldn't just be good enough for the IRS and if the IRS considers different language to meet the disability status why should he the doctor have to read into the IRS requirements and put himself on the line.

And what is this 'sudden disability" term sometimes used sometimes in what I'm reading. Is that different than being at the disability status of currently receiving SSDI? Thanks

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IRA Early Withdrawal Penalty

by Gene
(NH)

In 2008 I took an early distribution from an IRA. I inadverdantly failed to report it. IRS caught up with me early in 2011. Made payment for early distribution of 1701.33 in 2011, including penalty and interest. Is this deductible on 2011 Federal return? As early withdrawal deduction?

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Lump Sum Election

I got a lump sum ssa disb. payment in 2011 in the amount of 50,000. Of the 50,000, 2,000 was for 2008 and 16,000 was for 2009. I have a question about worksheet #2 for the lump sum election. I know I have to fill out a worksheet#2 for 2008 and 2009. On worksheet #2, question #1 it says: Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for the earlier year, plus the lump-sum payment for the earlier year received after that year. When I fill out for 2008 do i put 2,000 or 18,000(2,000+16,000)????

Also on worksheet #2, question #20 says: Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) What does this mean??

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Lump Sum Pension Distribution

by Lisa
(Middletown, PA, USA)

My ex-husband has been incarcerated since 2003. Before his incarceration divorce proceedings began and a QDRO was drafted and approved. As an alternate payee I was to receive 50% of his pension to satisfy his child support obligation for two children since he would be in prison with no income.

I could not obtain this pension money until he reached his earliest retirement age which was this year. Since this lump sum distribution was for child support do I have to claim it as income for federal tax purposes?

My attorney at the time mentioned that my ex would be responsible for the taxes. I've read conflicting information on this subject--child support is not taxable but qdro lump sum pension distributions are taxable. It's confusing. Any advice would be appreciated. Thanks

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Mutual Fund

I received a letter today 8-09-2011 from the irs in 2009 i redeemed mutual funds total 36000 but it was not aprofit imade 55000 that year they are adding the 36000 to the 55000 and saying i owe them 12000 more in taxes is this right?

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Optional Retirement Plan

Can I deduct my contributions to a TIAA-CREF optional retirement plan from my taxes?

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Recent Retirees

Both my husband and I are retired, he receives social security and a pension, I just receive a pension. We have no taxes deducted from our pensions. Should we? Is this income taxable?

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Regarding New Pension Scheme

by vinod
(Coonoor, Tamilnadu, India)

My question is regarding New Pension Scheme for central govt employee

I want to know that 10% of Govt Share and 10% emplyoee share is exemption from income tax or not? or it comes under total savings (up to Rs 1,00,000) kindly clarify

thank you

vinod
Tamilnadu

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Retirement Minimum Distribution

by Gene
(Emporia, KS)

Currently, I am working half time and my employer is contributing to my retirement program. I am not withdrawing from the retirement fund. In the near future I plan to drop to 1/4 time with the same employer and the employer will cease to contribute to the fund. I will be 72 years old when the change to 1/4th time happens. Will I be required to withdraw the minimum distribution amount, or will I not be required to since I will be on the employer's payroll even though only 1/4th time?

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Required Minimum Distribution

I have an IRA account that is invested in a Real Estate loan that was receiving monthly interest payments only. The borrower is now going through bankruptsy and it appears now that my account will not be receiving any monthly payments. The accumulation of these payments is what I was using to satisfy my RMD.

Is there a method of freezing or suspending the RMD in order to avoid any penalties because of my inability to withdraw the RMD? In fact it may come down to my losing the money entirely.

I have a couple of IRA accounts that are invested in annuities, however, the annuities are so young (1 year) that if I withdraw more RMD than that is required I would pay early withdrawal penalties that would soon destroy the accounts.

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Reqired Minimum Distribution from Several Tax-Deferred Accounts

I have money in three different tax deferred accounts..
--- a couple of small IRAs and the NYC Deferred Compensation Plan (457)

Now that I'm 70 1/2, I have to start taking money out.

My Question is: Can I take the TOTAL required Distribution amount (TOTAL FOR ALL ACCOUNTS)out of one TYPE (probably the 401k/IRAs this year)

It is the fact that the money is in different type accounts that troubles me.

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Why Do I Owe The State Money For a Roth IRA Conversion?

by Mark
(San Diego)

I converted my Traditional IRA to my Roth IRA and was trying to decide if I should pay now or do the 2 year split.
I found when I decide to pay now that my money owed to me by the state of California becomes a big pile of cash I owe them.

I put this money into the Traditional IRA originally while living in TX that does not even state income tax.

Why does California get tax money for nothing?
Is something wrong here?

Thanks
Mark

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