Consequences of liquidating ira Adult bar webcam
Once you have liquidated your IRA and received the money, you have 60 days to deposit the proceeds into another IRA.You can actually use the IRA money any way you want for the 60 days, as long as the money is eventually deposited before the 60 days pass.
Exceptions for early distributions from IRAs include: You cannot have owned a home in the previous two years to qualify for the home-buying exclusion, and only ,000 of the retirement distribution will avoid the tax penalty.With the pending expiration of the Bush-administration tax cuts, a lot of folks are wondering whether they should accelerate income this year to avoid a higher tax bracket next year.I recommend year-end tax planning for those who have a choice of taking income in 2010 at a lower rate or 2011 at a higher rate.Of course, the more income you have, the greater your tax rate.
Tax rates are progressive, so having more income will never reduce your tax rate.
If you cash in or withdraw the money from a traditional IRA, you are required to pay income taxes on the withdrawal and possibly pay an additional tax penalty.