More relief for the little guy

Willie99 · Apr 9, 2020

People can now take up to $ 100,000 out of their IRA or 401(K) plan in 2020 and not pay the penalty.

Furthermore, you can choose to pay the taxes on that distribution over the next three years, claim 33.33% of the income in 2021, 2022 and 2023. That would mean the first installment of taxes on that income won't be due until 4/15/2022, two years from today. The balance due 4/12/2023 and 4/15/2024.

Or, you can roll over that distribution using similar time frames, 33.33% redeposited in 2021, 2022 and 2023.

Or, some combination thereof.

Willie99 · Apr 9, 2020

What I don't like about this program

1) most people don't have enough retirement assets, I'd hate to see those people deplete such if they don't roll it over

2) if you're assets are in equities, you're locking in recent losses by selling

StevieRay · Apr 9, 2020

Take out of CD’s also with no penalty?

michael777 · Apr 9, 2020

Thank you Don :103631605

Doug · Apr 9, 2020

awesome option for many in these extreme times

a top notch CPA is worth his fee like a doctor that might save your physical life, he saves your financial life ,not terribly unlike an attorney ( not a criminal defense attorney per se ), but a divorce, or real estate, pre-nup, or probate lawyer, etc. kind of counselor that provides their expertise in delicate financial matters.

You, Willie are in the running for MVP.... , most valuable poster, and from CT as well, and still here, somehow ?

You give a lot of solid free advice.

My guess is once you retire, you have an exit plan to leave the not so great state of Connecticut, or as my brother ( moved to Co in 1972, right after HS) puts it, Connecticut is a good place..... to be from !

I think the same can be said for Iowa, I've known dozens of peeps when I lived out west from Iowa, never heard of one saying they missed cow-tipping and hay baling, or the big city, maybe Davenport ?

Likely the same for the NE in general ?

I never could figure out why the English Pirates ( aka settlers, Pilgrims etc. ), landed in Jamestown , future Vi, circa 1609 , then with advance intelligence stole the continent from the Boston area ?, circa 1620

I would have taken the area from present Virginia down to Florida first, if I were an early pirate sort, tougher natives ?

maybe they just liked shitty weather ?

Willie99 · Apr 9, 2020

StevieRay said:
Take out of CD’s also with no penalty?

Well, think that's up to the bank, but they should work with us too

Willie99 · Apr 16, 2020

Now I'm getting phone calls from people wondering when their stimulus check is coming, or why their friends and neighbors already received theirs' but they haven't, or why they didn't get the full amount....

Or when they go to check the status on the IRS website, they get an error message.....

Jesus Fucking Christ people, they said this is going to take months, I don't need 40 phone calls on April 16th.

The government is promising far more than they're capable of delivering, and while they refuse to talk to anybody, I'm here to hold peoples' hands and I'm expected to have an explanation for bureaucratic incompetence

If you can't tell, this bullshit is starting to drive me crazy. I spend hours on the phone every day wearing my counseling hat now

I'm supposed to be on vacation, bitches, everyone needs to sit back and chill. Meant in the most respectful way possible, of course.

X-Files · Apr 16, 2020

Willie99 said:
People can now take up to $ 100,000 out of their IRA or 401(K) plan in 2020 and not pay the penalty.

What are people going to do with 100K? Bet esports?

Instead of loosening funds i'm sticking more into short term investments which can be quickly loosed whenever the sports world resurrects.

CHOPTALK · Apr 16, 2020

I don’t understand the rollover part at the end. Can you explain that

Dave007inVegas · Apr 16, 2020

Willie99 said:
Now I'm getting phone calls from people wondering when their stimulus check is coming, or why their friends and neighbors already received theirs' but they haven't, or why they didn't get the full amount....

Or when they go to check the status on the IRS website, they get an error message.....

Jesus Fucking Christ people, they said this is going to take months, I don't need 40 phone calls on April 16th.

The government is promising far more than they're capable of delivering, and while they refuse to talk to anybody, I'm here to hold peoples' hands and I'm expected to have an explanation for bureaucratic incompetence

If you can't tell, this bullshit is starting to drive me crazy. I spend hours on the phone every day wearing my counseling hat now

I'm supposed to be on vacation, bitches, everyone needs to sit back and chill. Meant in the most respectful way possible, of course.

It must suck to be you.

TheComputerGroup · Apr 16, 2020

Willie99 said:
Now I'm getting phone calls from people wondering when their stimulus check is coming, or why their friends and neighbors already received theirs' but they haven't, or why they didn't get the full amount....

Or when they go to check the status on the IRS website, they get an error message.....

Jesus Fucking Christ people, they said this is going to take months, I don't need 40 phone calls on April 16th.

The government is promising far more than they're capable of delivering, and while they refuse to talk to anybody, I'm here to hold peoples' hands and I'm expected to have an explanation for bureaucratic incompetence

If you can't tell, this bullshit is starting to drive me crazy. I spend hours on the phone every day wearing my counseling hat now

I'm supposed to be on vacation, bitches, everyone needs to sit back and chill. Meant in the most respectful way possible, of course.

And that is the double truth, Ruth!

X-Files · Apr 16, 2020

"the little guy" has 100K sitting around?

PatsFan1283 · Apr 16, 2020

Hang in there man, doing yeoman's work.

Willie99 · Apr 16, 2020

CHOPTALK said:
I don’t understand the rollover part at the end. Can you explain that

You're going back to the OP

You can take out up to $ 100,000 out of your IRA or 401(K)......

You can elect to pay taxes on such over the next three years, 2021, 2022 or 2023 and there will be no penalties

Or you can treat it like a loan to yourself, rollover 1/3 in 2021, 1/3 in 2022 and 1/3 in 2023 and NOT pay any taxes on the distribution

Something really special to some people in need of money this year, but expect to be back on their feet next year or so

Willie99 · Apr 16, 2020

Dave007inVegas said:
It must suck to be you.

The Computer Group said:
And that is the double truth, Ruth!

PatsFan1283 said:
Hang in there man, doing yeoman's work.

Dave, as I usually say, the phone ringing too much is better than the alternative

Computer Group, bureaucrats ain't helping, that's for sure

Patsfan, thanks, think I'm just a little testy today

Nothing that a glass of wine and supper can't fix

THawk+ · Apr 16, 2020

Willie you are a great person, saint with the information and help here!

Can only imagine how lucky your clients are to have you on their side.

Thank you for everything posted here and all the help

CHOPTALK · Apr 16, 2020

Willie99 said:
You're going back to the OP

You can take out up to $ 100,000 out of your IRA or 401(K)......

You can elect to pay taxes on such over the next three years, 2021, 2022 or 2023 and there will be no penalties

Or you can treat it like a loan to yourself, rollover 1/3 in 2021, 1/3 in 2022 and 1/3 in 2023 and NOT pay any taxes on the distribution

Something really special to some people in need of money this year, but expect to be back on their feet next year or so

so you saying someone can take 100k out over a 3 year period and not pay any taxes on that ?

rolltide · Apr 16, 2020

CHOPTALK said:
so you saying someone can take 100k out over a 3 year period and not pay any taxes on that ?

no, you can spread that 100k out over the next 3 tax years and not have to declare 100k for 2021 but can get taxed on the 33.3k for each year instead of one lump sum AND not endure the penalty/fee for borrowing from your 401k

dr.vegas · Apr 16, 2020

I just took out $20,000 out of mine and will get it next week. One thing I am doing is I just need it for the next few months as once this hopefully lightens up in the next few months I can just put it back as I will still have enough to put back. If you put it back within 60 days there is no penalty either and it doesn't count as any income or anything on taxes. Only way I would get hit is if that money would have made me in the stock market which I don't see in the next two months.

Willie99 · Apr 16, 2020

CHOPTALK said:
so you saying someone can take 100k out over a 3 year period and not pay any taxes on that ?

You can take $ 100,000 out this year, has to be withdrawn by 12/31/20

10% penalty waived

You can either pay taxes on the 100k over the next three years and / or you can choose to put the money back into your IRA over three years

1/3 per year
21,22 and 23

More relief for the little guy

Conservatives, Patriots & Huskies return to glory

Conservatives, Patriots & Huskies return to glory

Active member

Member

Rx God

Conservatives, Patriots & Huskies return to glory

Conservatives, Patriots & Huskies return to glory

fbi

Member

Life's a bitch, then you die!

Member

fbi

Member

Conservatives, Patriots & Huskies return to glory

Conservatives, Patriots & Huskies return to glory

New member

Member

I'm from the government and I'm here to help

New member

Conservatives, Patriots & Huskies return to glory

Forum statistics

Share this page