Cashing Out Early On Retirement Income Tax Question

Cashing Out Early On Retirement

Cashing Out Early On Retirement

We cashed out a retirement account early in 2010 and at the withdrawal time I had 20% of the amount removed to pay for Federal income tax.


Now that I am in the process of filing our taxes when prompted to enter incomes for the year when I entered the amount roughly 9,000 for the retirement account it drop how much I was going to get back for the year.

It appears that I would of had to put 38% of the amount before it didn't affect my return, does that sound right? Thanks

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Early IRA Withdrawl and SSD Benefits

by Gary
(Alpharetta, GA)

My wife will be receiving a profit sharing distribution from her prior employer. After she left that employer, she became disabled and is collecting SSD.
The question is, can she roll over the entire amount into an IRA, and then take out a portion of these funds a few days later? I realize she'll be subject to income tax on the amount taken, but questioning whether she'll be subject to 10% penalty since she was disabled before money was added to IRA? Also, I wasn't sure if she had to keep her money in the IRA for a certain amount of time before taking it out?
Also, will the money affect her monthly SSD check?

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Withdrawing a QDRO Settlement From Divorce

by Gary
(Wilmington, DE)

I was awarded a QDRO settlement from my exwife at time of divorce 5 years ago..I really need to take a cash out due to debts, mortgage, etc...If I take a cash withdrawal, 20% is automatically taken out for taxes at time of withdrawal. So with the remainder I receive, is that going to be then added income and I have to pay taxes again at the end of the year when I file my Income Tax Return? Thanks in advance..

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Withdrawing Money From I.R.A. To Pay Off Mortgage On Home

I would like to know if you draw money from an i.r.a. to pay off mortgage on home would you have to pay taxes as if it were income?

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