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Financial Planning / Tax Strategies


Subject:  Re: IRA withdrawals & taxes Date:  12/6/1999  9:03 AM
Author:  jessholl Number:  22351 of 131786

You are no longer making substantially equal payments. What will happen is you will be assesed the 10% penalty on every dollar you have withdrawn from the account since you started 4 years ago. The IRS will flag it. The longer they wait to flag it the more in penalties and interest you owe them.

I am not sure what the rate is this year I haven't looked, but it is not competitive. I would highly recommend finding a good tax attorney who can represent you in front of the IRS. Perhaps they can work out a deal. Otherwise the longer you wait the more the interest they are due builds up.

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