Where is the best place to get money to pay taxes we owe? Our ROTH's? Wife's SEP or 401k from my previous job

Answer 1

answerer 1 is partially correct, but not nearly as clear as it needs to be... so here goes. retirement accounts are never really the best place to access funds to pay a just debt... but sometimes people have no other source or place in which to get the money owed other than a retirement account. having explained that i will give you the facts for you to make an intelligent decision.
unless you meet an irs approved exception (reason) for tapping a 401k or sep account you will ALWAYS incur a penalty on any early withdrawl made to those accounts if you are under age 59 1/2 (55 years old under certain circumstances) the penalty are not the same, the penalty for early withdrawl on a 401K WOULD BE TEN PERCENT(plus all early withdrawls are taxable events and will result in income tax being owed on the entire amount withdrawn prematurly) the penalty for early withdrawls from a SEP account is TWENTY PERCENT (all early withdrawls would be taxable events and would result in income tax being owed on the entire amount withdrawn prematurly)
any and all roth ira CONTRIBUTIONS may be tapped at any time for any purpose whatsoever without incurring any penalty (or tax) whatsoever!! there is no five year waiting period as most people believe(five year rule applies to earnings and conversions only, but NEVER on your own contributions). while you may tap into your roth to pay your tax bill and there are no penalties applied by the irs, this would seem to be the asset to use to pay your tax bill, but anyone considering this route should do so only under the most dire circumstances and only with very serious consideration and UNDERSTANDING of the implication of using retirement funds versus any and all other means to pay the debt. (the irs offers payment plans and will work with almost all taxpayers to resolve a tax debt)

Answer 2

Depending on circumstances, you might be able to take the money from your Roth IRA without penalty. On the others you mention, you'd not only pay income tax, but if you're under 59-1/2, you'd pay a penalty also.

Answer 3

This has been a debate for a lengthy time period and after reading the arguments, i imagine it probably makes no distinction. Paying taxes later vs now should be probably a nasty idea except you imagine you'd be in a better tax bracket at retirement. There are on line calculators which could also help you-attempt searching for 401k vs roth ira. My challenge is that you be effective you make contributions a minimum of inspite of volume your organization matches for your 401k-it really is loose funds and is the most proper deal round! you need to also commence a Roth IRA as well for your 401K