How can I withdraw 401K with Penalty or taxes to purchase investment property?


Posted February 15th, 2010 by admin 4 Comments »
401k
Pablo asked:


I would like to withdraw funds to purchase and investment property from my 401k. the 401K is with an old employer. What is the best way to get the funds without being penalized or paying taxes? Someone told me to transfer to an IRA account. Is that true?
OK, I am 35 and married.

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Posted in Personal Finance | 4 Comments »

How can I change the 401k to non-deductible, so I can contribute to my IRA for 2006?


Posted March 14th, 2009 by admin 2 Comments »
401k
vincentC asked:


My situation: I joined the company 401k plan in the mid-December 2006. Which I thought will start from beginning of 2007. However, my company started draw the money immediately and I didn’t notice until I got my W2 form recently. The 401k deduction is only $769 for year 2006. I have already put money on my IRA account which I can put $5000 for 2006, I’m 50 years old. Based on the IRS rule, I could not contribute to IRA if I have 401k and have AGI more than $80000 in 2006 which I did. Is there any way that I can change the 401k contribution to non-deductible, so I can contribute to my IRA?

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Posted in United States | 2 Comments »

What will happen to my mutual funds if the banks get nationalized?


Posted February 26th, 2009 by admin 3 Comments »
mutual funds
SailorDumb asked:


As you know, if Bank of America and Citigroup gets nationalized, they say the stocks value with go to 0. Assuming this does happen, I have a few mutual funds (cwicx, irfax, and ithax ,to be exact) in a non-ira account in smithbarney, which is within the citigroup group. What will happen to these funds?

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Posted in Investing | 3 Comments »

I have a 401K that is vested. I plan to go to India and cash it. How to do without paying much penalty and tax


Posted February 18th, 2009 by admin 3 Comments »
401k
Bala Gopalakrishnan asked:


I have a 401K that is vested for around 100000 US$ and I am allowed to take it after I leave the employer. I do plan to go back to India. Is it possible to take 15,000 $ per year and avoid paying federal and state taxes ( Since Iam out of country and not a resident + it falls with less income per annum). Is there a penalty that I have to pay while taking money out. I will have closed all my bank accounts except this IRA/401K account and so how would I pay the penalty and any taxes that might occur. Please advice.

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Posted in United States | 3 Comments »