The Coupon Challenge

Hampton Roads (Virginia) Coupon Blog

  • Home
  • About
    • Contact
  • Coupons 101
    • Couponing Basics
    • Stock-up Price Guide
    • Printable Coupon Planner
  • Shop Smart
    • Amazon Deals
    • Retail Deals
    • Freebies >>
      • Birthday Freebies
      • Free eBooks
  • Find Coupons
    • Coupon Database
    • Printable Coupons >>
      • Coupons.com
      • RedPlum.com
      • SmartSource.com
      • Hopster.com
  • Frugal Living
    • Budgeting 101
    • Eliminate Debt & Curb Spending
    • How to Save Money at…
    • “Other Uses” Articles
    • Crafts
  • Recipes

Ask an Accountant: Early Withdrawal from a Rollover IRA

by Dana Zeliff on September 24, 20112011-09-24
in Worth Reading

Disclosure: This post may contain an affiliate link.

Thanks to Mom on Dealz for sharing her series, Ask an Accountant!  Sharon is married to an experienced accountant.  Although tax season is over, tax questions arise year round.

Question:

I am considering taking an early withdrawal from the Rollover IRA account ($13k out). I recently had surgery and this is needed to clear bills, debt and get the budget back. I know I am looking at a 10% hit on the taxes next year for a penalty ($1,300), but what else am I looking at? How much else should I expect ?

Answer:

You should be aware there are provisions that exempt you from the 10% penalty. One of them being unreimbursed medical expenses in excess of 7.5% of your AGI (meaning if you have enough medical expenses to get a deduction on Schedule A, then you can avoid the 10% penalty). There are no other caveats except if the IRA is less than 5 years old, you will not qualify for the exception. You should expect the $13K to be added to income (taxed at your income tax rate for the year of the distribution) No additional “tax traps”

*Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

photo credit: austinpost.org

Filed Under: Worth Reading Tagged With: Ask an Accountant

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


BGt

Shop Amazon

Let’s Cook








Categories

Join Me on Pinterest!

About The Coupon Challenge

Hi! I'm Dana, the writer behind the scenes of The Coupon Challenge, a Hampton Roads, VA based coupon blog. I'm a wife and mother of 2. After getting out of debt we started using our savings to travel together as a family and create memories.

Are you looking for ways to save your family money? I strive to help you save on the products you need, so you can spend more on the things you want. Read More about Dana & Family

Best of…

:: Weight Watchers Banana Bread Recipe
:: 16 Other Uses for Listerine
:: Quick Easy Chocolate Frosting Recipe
:: Busch Gardens Williamsburg Discount Tickets
:: Yankee Candle Printable Coupons
:: Printable Snack Coupons

Copyright 2015 The Coupon Challenge. All Rights Reserved.

Proudly Hosted by WP Covered using the Genesis framework.
Disclosure & Privacy Policy