Why is money withdrawn from a retirement account taxed?
- April 30th, 2024
- David Greene
- Comments Off on Why is money withdrawn from a retirement account taxed?
I decided that shortly after tax time is a good time to answer this question because I always have clients in this predicament every year! I want to use this answer as a warning to anyone thinking of making an…
Can one who withdrew funds from his retirement account in 2020 due to COVID pay the money back without paying taxes?
- July 15th, 2022
- David Greene
- Comments Off on Can one who withdrew funds from his retirement account in 2020 due to COVID pay the money back without paying taxes?
Section 2202 of the CARES Act, enacted on March 27, 2020, provided for some special rules for paying back distributions from retirement plans and IRAs if the withdrawal was related to COVID. One new provision is that the amount withdrawn…
Should an IRA or 401k be transferred into a trust?
- August 25th, 2021
- David Greene
- Comments Off on Should an IRA or 401k be transferred into a trust?
It is definitely not a good idea! If you put your IRA or other qualified retirement account into your Living Trust, the IRS will consider it as a distribution and you will be taxed on the entire amount immediately. There…
How is a pension taxed?
- July 22nd, 2020
- David Greene
- Comments Off on How is a pension taxed?
As a pension fund is growing during an employee’s working years, it is usually funded with pre-tax dollars and the money going into the pension is not taxed at that time. However, when a person retires and begins receiving his…
Can I be taxed in retirement? How?
- October 31st, 2018
- David Greene
- Comments Off on Can I be taxed in retirement? How?
There are six primary ways you can be taxed in retirement: (1) Traditional IRA or 401(k) withdrawals – this money is always taxed when taken out, no matter at what age; (2) Social Security benefits – whether or not taxed…
Is there any relief from taxes for a late rollover (Part 2)?
- November 16th, 2016
- David Greene
- Comments Off on Is there any relief from taxes for a late rollover (Part 2)?
In my earlier blog I answered that there are new procedures that can be used to get relief if certain criteria are met. They are: (1) An error was made by the financial institution, (2) The distribution check was misplaced…
Is there any relief from taxes for a late IRA or 401K rollover?
- November 1st, 2016
- David Greene
- Comments Off on Is there any relief from taxes for a late IRA or 401K rollover?
The general rule is that if you take a distribution, it must be rolled over into another qualified plan within 60 days to avoid taxation and the 10% penalty. There has always been a “hardship” waiver for certain events causing…