With respect to the Rule of 55, even though an employee's current 401k does not allow it (and so distributions are subject to the 10% early withdrawal penalty), Form 5329 (line 2) can be filled out and the 10% penalty can be reimbursed back to the taxpayer.
If it is September now and I already paid $5000 tuition for my son (in March) and I anticipate paying another $5000 in Dec, can I pull out $10,000 then declare in my 2022 taxes on the 5329 form that I took out $10,000? Or do they check the time of year I pull out this money from my IRA?
Distributions from a 529 are reported on an aggregate annual basis; the 529 custodians don't report to the IRS the timing of when in the year the money was distributed
Hello, I had to question with the qualified higher educational expenses. I would be using the withdrawal for a laptop ( for school ) . This would count as an exception correct ? Also, when I do taxes , I would claim this exception and there should be no penalty ?
I don’t believe they can from an IRA. But I believe they can from the federal Thrift Savings Plan (“TSP”). Which is one big reason why they may not want to roll their their TSP to an IRA prior to age 59 1/2
@@asianamerican4707 Oops, sorry. I missed the Roth part! I don’t think there is any special exception to the Roth IRA withdrawal rules for federal law enforcement workers or retirees
Does this apply to TSP within the federal government (for both traditional & ROTH IRA)? I need to process a TSP-76 Financial Hardship In-Service Withdrawal Request - Civilian. I am leaving the default for withholding to 10%. I am concerned about the penalty on the withdrawal as income at the end of the year. Is that a certain % or just added to my overall earned income? Thank you.
I'd like to move $1,100 from my betterment IRA (the total amount) to my M1 general investing pie. It I withdrawal this amount do you know what the penalty + tax implications are?
best video on youtube as far as 10% penalty exceptions is concern.
With respect to the Rule of 55, even though an employee's current 401k does not allow it (and so distributions are subject to the 10% early withdrawal penalty), Form 5329 (line 2) can be filled out and the 10% penalty can be reimbursed back to the taxpayer.
What if you're 100 percent permanent and total disabled veteran?
If you meet the IRS’s definition of permanently and totally disabled, the 10% early withdrawal penalty is waived
Very very informative. Let’s see what else this guy has done…
Birth or adoption of a new child ?
Yes. Up to $5k for qualified birth or adoption expenses.
If it is September now and I already paid $5000 tuition for my son (in March) and I anticipate paying another $5000 in Dec, can I pull out $10,000 then declare in my 2022 taxes on the 5329 form that I took out $10,000? Or do they check the time of year I pull out this money from my IRA?
Distributions from a 529 are reported on an aggregate annual basis; the 529 custodians don't report to the IRS the timing of when in the year the money was distributed
Thanks so much for the quick response
Hi if I understood correctly, only 10k withdrawal MAXimum are free of penalty for the reason of buying 1st home?
Correct
Hello, I had to question with the qualified higher educational expenses. I would be using the withdrawal for a laptop ( for school ) . This would count as an exception correct ? Also, when I do taxes , I would claim this exception and there should be no penalty ?
Is the laptop absolutely required and clearly stated as required by the school as part of the conditions of enrollment?
How about federal law enforcement? I thought they can withdraw roth IRA before 59 1/2
I don’t believe they can from an IRA. But I believe they can from the federal Thrift Savings Plan (“TSP”). Which is one big reason why they may not want to roll their their TSP to an IRA prior to age 59 1/2
@@RetirementPlanningEducation I said Roth IRA. I believe federal law enforcement allow to withdraw Roth IRA without penalty before 59 1/2
@@asianamerican4707 Oops, sorry. I missed the Roth part!
I don’t think there is any special exception to the Roth IRA withdrawal rules for federal law enforcement workers or retirees
@@asianamerican4707 Can you please share what you have that says the exception applies to Roth IRAs?
Does this apply to TSP within the federal government (for both traditional & ROTH IRA)? I need to process a TSP-76 Financial Hardship In-Service Withdrawal Request - Civilian. I am leaving the default for withholding to 10%. I am concerned about the penalty on the withdrawal as income at the end of the year. Is that a certain % or just added to my overall earned income? Thank you.
I'd like to move $1,100 from my betterment IRA (the total amount) to my M1 general investing pie.
It I withdrawal this amount do you know what the penalty + tax implications are?
Also where does someone prove complete disability?