i want to pay off my morgage of $42000. i also owe on my credit card a rather large amount, if the taxes or too high i could just pay off morgage and roll the rest into my 401k. if i do how much will i have to pay on $42000.00? i earn an income of app. $36000. a year on top of this.
2006-11-25 06:43:54 · 3 answers · asked by ann 1 in Business & Finance ➔ Taxes ➔ United States
Any amount put into a 'qualified retirement plan' as a result of a 'qualified domestic relations order' is not a taxable event. Any amount not transferred to a 'qualified retirement plan', would be treated as a withdraw from such a plan. If you are under 59 1/2, there is a 10% early withdraw penalty. This is above and beyond income tax at regular rates on the amount withdrawn.
2006-11-25 11:42:11 · answer #1 · answered by STEVEN F 7 · 1⤊ 0⤋
I stay in Texas, a "community assets" state. subsequently, 0.5 of what we acquire collectively throughout the time of the wedding ceremony is going to each and each human beings, in concept. The 0.5 it particularly is presented is transferred into an IRA it particularly is created for the different individual in the event that they don't have already got one. Then that's taken care of as the different classic IRA...no be counted if that's withdrawn, then the comparable regulations/rules prepare. In mediation, this one million/2 would nicely be adjusted up or down as a fashion to stability the inequities of dividing up fixtures, automobiles, actual assets, and so forth. because of the fact it could be impractical to slice those issues in 0.5. My inclination would be to maintain it become self reliant from an modern or new IRA which you're persevering with to fund. Then that's of course well-referred to as "separate assets" if any next marriages flow to divorce courtroom. depart it interior the IRA if there is any way interior the international which you will get via with out changing it to funds. those money can by no capacity get replaced later and, at this ingredient shares are close to their lowest fee and could be nicely worth notably extra in some years...a astounding headstart in direction of retirement. Plan for the worst, desire for the main suitable.
2016-12-17 16:06:50 · answer #2 · answered by ? 4 · 0⤊ 0⤋
I believe there is a 10% penalty + the taxable rate or that money.. I've cashed them in early. Checking with the IRS or a tax consultant is the only way to be sure. Call them. They seem to be pretty nice these days.
2006-11-25 06:53:15 · answer #3 · answered by bob h 5 · 0⤊ 0⤋