Professional Courtesy Among Ledgies - Page 2

irishgrl · #16 10-20-2005, 11:49 AM

Quote:

Originally Posted by John Run

Two Answer a couple of questions.

Chili for 2006 the IRS sets the 403B limit at 15,000 the same as a 401k.

Paula You will be taxed at whatever your current tax rate is when you make withdrawals from an IRA or 401k after age 59.5

isnt the money tax exempt until you withdraw it?

strandinthewind · #17 10-20-2005, 12:33 PM

Quote:

Originally Posted by irishgrl

isnt the money tax exempt until you withdraw it?

Yes it is and it is taken off of the top of your earnings the year you donate it - so it is not taxed then as well.

BTW - John, please correct me if if am wrong there as I am not a true expert

John Run · #18 10-20-2005, 01:00 PM

The individual and match money in a 401K or Traditional IRA is tax deferred until use at which time you will be taxed on it. If you choose to withdraw that money before age 59.5 you will be penalized an additional 10% penalty even in cases of hardship.

skcin · #19 10-20-2005, 01:02 PM

Quote:

Originally Posted by John Run

Paula You will be taxed at whatever your current tax rate is when you make withdrawals from an IRA or 401k after age 59.5

OK. So if I retire at 55, and then start taking money out of the Roth at age 60, then the tax rate will be based on whatever I'm making during retirement (obviously less than I had been making when I was working full time at age 30 or 40.)

What if I'm not retired yet - like, I'm still working full time at age 62 - but still take money out of my Roth at that time? It will be taxed based on my salary at age 62, which (hopefully) will be more than I was making at age 30 or 40. Correct?

David · #20 10-20-2005, 01:08 PM

Isn't this a cool thread?

We're all sharing love & light & knowledge! I'm getting all gooey inside.

David · #21 10-20-2005, 01:12 PM

I have a question for you mosquito experts:

What's the most effective but essentially minimal way of getting rid of mosquitos in my house? I know some people burn citronella candles, whereas others spray flying insect spray on their screens & doors (outside).

Speak up, o ye bug-killing experts! I don't want to contract West Nile Virus.

strandinthewind · #22 10-20-2005, 01:14 PM

Quote:

Originally Posted by David

I have a question for you mosquito experts:

What's the most effective but essentially minimal way of getting rid of mosquitos in my house? I know some people burn citronella candles, whereas others spray flying insect spray on their screens & doors (outside).

Speak up, o ye bug-killing experts! I don't want to contract West Nile Virus.

I have a mis. magnet and it works great

They are expensive though.

http://www.mosquitomagnetdepot.com/?source=google

strandinthewind · #23 10-20-2005, 01:15 PM

Quote:

Originally Posted by John Run

The individual and match money in a 401K or Traditional IRA is tax deferred until use at which time you will be taxed on it. If you choose to withdraw that money before age 59.5 you will be penalized an additional 10% penalty even in cases of hardship.

Right - but the money put in is not taxed now as well if that is in a 401(K)

For example, if I make $60,000 a year and put $10,000 in my 401(K) - my Federal Income Tax rate is based on $50,000 less any deductions I may have. I think that is correct. What do you think?

John Run · #24 10-20-2005, 01:15 PM

Quote:

Originally Posted by skcin

OK. So if I retire at 55, and then start taking money out of the Roth at age 60, then the tax rate will be based on whatever I'm making during retirement (obviously less than I had been making when I was working full time at age 30 or 40.)

What if I'm not retired yet - like, I'm still working full time at age 62 - but still take money out of my Roth at that time? It will be taxed based on my salary at age 62, which (hopefully) will be more than I was making at age 30 or 40. Correct?

You will be taxed at the rate of your earning at age 60 if retired and taxed at your rate of earning at age 62 if still working. However at either of those ages you can take the money for whatever reason you want with no penalty.

David · #25 10-20-2005, 01:17 PM

Quote:

Originally Posted by strandinthewind

I have a mis. magnet and it works great

They are expensive though.

http://www.mosquitomagnetdepot.com/?source=google

How fascinating! I had no idea such contraptions were available! I'm going to look into this. I would assume, though, that you want to place this a good distance from your windows & doors because it actually draws the bugs to it, right?

strandinthewind · #26 10-20-2005, 01:20 PM

Quote:

Originally Posted by David

How fascinating! I had no idea such contraptions were available! I'm going to look into this. I would assume, though, that you want to place this a good distance from your windows & doors because it actually draws the bugs to it, right?

Yes. It essentially uses a butane tank to pass the gas over this strip which gives the effect of carbon dioxide, which is what attracts them to us. I think the directions state it should be placed many yards away from your house. Mine really works great. Changing the tank sucks, but that is better than the bites. Also, at times, there may be like 1,000 dead insects in the trap, so it works.

dissention · #27 10-20-2005, 01:21 PM

Quote:

Originally Posted by David

I have a question for you mosquito experts:

What's the most effective but essentially minimal way of getting rid of mosquitos in my house? I know some people burn citronella candles, whereas others spray flying insect spray on their screens & doors (outside).

Speak up, o ye bug-killing experts! I don't want to contract West Nile Virus.

Ask Tom Delay.

John Run · #28 10-20-2005, 01:23 PM

Quote:

Originally Posted by strandinthewind

Right - but the money put in is not taxed now as well if that is in a 401(K)

For example, if I make $60,000 a year and put $10,000 in my 401(K) - my Federal Income Tax rate is based on $50,000 less any deductions I may have. I think that is correct. What do you think?

You are right. Whatever your contributions are you will not be taxed on that amount that year. Only at time of withdrawal. The amount of withdrawal you will receive a 1099 for at the end of the year and you will add the amount to your earned income for that tax year.

I will make one very important point, that I have seen people get screwed on. They seperate from their employer, they take a lump sum withdrawal of their entire account balance with the intention of taking the entire amount and rolling it into an IRA or a new employer sponsored plan. However they get the check payable to them and not the IRA Fund or the Plan name. They are then repsonsible for all taxes and penalties even if they do roll it over. You may be able to reduce the taxes if you can prove roll over, but you can't avoid the penalty. Then when you finally do retire you end up getting taxed on it again. So the lesson.....never get the check made out you. Get it made out to the name of the fund or plan sponsor. This will ensure you pay no taxes or penalty.

strandinthewind · #29 10-20-2005, 01:25 PM

Quote:

Originally Posted by John Run

You are right. Whatever your contributions are you will not be taxed on that amount that year. Only at time of withdrawal. The amount of withdrawal you will receive a 1099 for at the end of the year and you will add the amount to your earned income for that tax year.

I will make one very important point, that I have seen people get screwed on. They seperate from their employer, they take a lump sum withdrawal of their entire account balance with the intention of taking the entire amount and rolling it into an IRA or a new employer sponsored plan. However they get the check payable to them and not the IRA Fund or the Plan name. They are then repsonsible for all taxes and penalties even if they do roll it over. You may be able to reduce the taxes if you can prove roll over, but you can't avoid the penalty. Then when you finally do retire you end up getting taxed on it again. So the lesson.....never get the check made out you. Get it made out to the name of the fund or plan sponsor. This will ensure you pay no taxes or penalty.

LOL - I have seen that too. I did it awhile back for a variety of reasons and I actually made money because the market of the fund dropped by more than half, which was way more than the penalty and tax charged against my withdrawal. But, that was soooooo luck of the draw.

Also, thanks for the info.

BTW - how long do you think it will be until Congress gets rid of the $250,000 cap. gains exemption on the sale of a personalk res. after two years. I am betting that is coming soon.

John Run · #30 10-20-2005, 01:26 PM

Quote:

Originally Posted by David

Isn't this a cool thread?

We're all sharing love & light & knowledge! I'm getting all gooey inside.

Actually David, I am enjoying this thread so much because the dumbing down and sleazing down of the ledge has been a subject of consternation and depression for me. It is great to share and be shared here again.