2007-08-15 14:08:07 · 5 answers · asked by stevo1313 1 in Business & Finance ➔ Taxes ➔ United States
If you deposit the funds into another IRA within 60 days, it is a rollover, and there are no early withdrawal penalties. If you take the money, you are responsible for the early withdrawal penalties AND income tax on the distribution.
2007-08-15 16:13:01 · answer #1 · answered by Trey S 1 · 2⤊ 0⤋
If the $$$ is all moved from one IRA to another ,
It is called a 'Roll Over" and there are not penalties .
Only if you withdraw cash from the plan is there a penalty .
Change of agent or move to another institution , No penalty .
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2007-08-15 14:14:54 · answer #2 · answered by kate 7 · 4⤊ 0⤋
If you withdraw money early YOU pay the penalty - 10% plus it's counted as income and taxed at your nominal rate so it's not a great deal if you are working.
2007-08-15 16:14:40 · answer #3 · answered by James 3 · 0⤊ 0⤋
Change in agent is not a taxable event, it is called a rollover. As long as you make sure you do not take the money out. You will pay taxes on it when you take it out, then a 10% penatly plus your tax range.
2007-08-19 12:43:11 · answer #4 · answered by Mel 1 · 0⤊ 0⤋
There are no penalties. It will just be rolled over. It's not a taxable event.
2007-08-15 17:49:57 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋