UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: drippinfool Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: Investment Type For Early Withdrawals Date: 10/28/2013 2:51 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
From IRS Pub 575:

Tax on Early Distributions
Most distributions (both periodic and nonperiodic) from
qualified retirement plans and nonqualified annuity con-
tracts made to you before you reach age 59 1/2 are subject
to an additional tax of 10%. This tax applies to the part of
the distribution that you must include in gross income. It
does not apply to any part of a distribution that is tax free,
such as amounts that represent a return of your cost or
that were rolled over to another retirement plan. It also
does not apply to corrective distributions of excess defer-
rals, excess contributions, or excess aggregate contribu-
tions (discussed earlier under Taxation of Nonperiodic
Payments).
For this purpose, a qualified retirement plan is:
A qualified employee plan (including a qualified cash
or deferred arrangement (CODA) under Internal Reve-
nue Code section 401(k))

.
.
.

Additional exceptions for qualified retirement plans.
The tax does not apply to distributions that are:
From a qualified retirement plan (other than an IRA)
after your separation from service in or after the year
you reached age 55 (age 50 for qualified public safety
employees) (see Separation from service , later),

-drip
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
TMFDeej's CAPS Blog

Activist Investors Unlocking Value at LSB Industries?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement