Good times, but not for all. – Getty Images Rising numbers of Americans are making emergency “hardship withdrawals” from their 401(k) plans to avoid eviction or foreclosure, new data reveal. The data, from investment and retirement giant Vanguard, raise new fears about the looming retirement crisis facing millions—and about just how widespread the current “economic […]
Husband and wife prepare tax returns How you make retirement withdrawals will affect your tax brackets. This can be a fairly complicated issue. Depending on which plans you have, your retirement withdrawals might be considered taxable income, taxable capital gains or untaxed earnings. For each taxable segment of your withdrawals, the amount that you take […]
A man who has inherited a $550,000 IRA from his father looks over the account paperwork. If you inherit a tax-deferred retirement account, like an IRA or a 401(k), you’ll pay income taxes on the money when you withdraw it. Those withdrawals are subject to your marginal tax rate, not the original owners. This can […]
Financial advisor and columnist Michele Cagan At the age of 60, I recently entered retirement after being a business owner. I’ve been securing health insurance through the marketplace since its inception. Currently, my income is derived solely from withdrawing money from my taxable portfolio, comprising reported dividends and capital gains totaling less than $60,000 annually. […]
Financial advisor and columnist Brandon Renfro I was left $200,000 in an IRA Beneficiary Distribution Account (BDA) when my father passed. I have 10 years to withdraw this money. I’m at the 35% federal tax rate currently and plan to make a similar annual income over the next 10 years. Taking the money out in […]
There are a couple of different sets of rules around inherited IRAs and you’re subject to theleast flexible. While there are more options for a spouse or someone who’s chronically ill ordisabled, a minor child, or someone not more than 10 years younger than the deceased IRAowner, you have just 10 years to withdraw the […]
Financial advisor and columnist Brandon Renfro I am 64 ½ and have been retired for just over a year. I am receiving Social Security benefits, a bit early, but have not touched my nest egg except to withdraw $10,000, which I placed in a high-interest savings account as an emergency fund. Would it be wise […]
Many people work really hard to amass savings for retirement. So if you have a nice pile of cash in your IRA or 401(k), you may be hesitant to start tapping it right away. After all, you want that money to last. Still, the whole purpose of saving in an IRA or 401(k) is to […]
LAYTON, Utah (ABC4) — A Colorado woman “with no ties to Utah” is facing charges after allegedly attempting identity fraud and trying to withdraw $40,000 from a credit union, according to Layton City Police. Annie Alyse Ambrogio, 21, was arrested for the offenses of identity fraud, a second degree felony; two counts of producing or […]
Financial advisor and columnist Brandon Renfro Do withdrawals from my pre-tax IRA and/or 401(k) accounts made before I turn 73 count toward my RMDs? Or do RMDs start at 73 without regard to prior withdrawals? I’m 70 now and still working and collecting Social Security, but plan to retire in 2024. – Luis Unfortunately, withdrawals […]
Financial advisor and columnist Michele Cagan I’m turning 68 shortly and plan to wait to claim my Social Security at age 70 to maximize the monthly benefit. I also plan to retire at the end of the year, if not sooner (so in three months or less). Does withdrawing from my traditional IRAs (current balance […]