SEP IRA

Posts Tagged ‘early’

Question: i requested an inservice withdrawal from my SIMPLE IRA and was told that it is not allowed, is this correct?

Answer: Read your plan document. A SIMPLE should be covered by the same withdrawal rules as an IRA: withdrawals constitute taxable income (ordinary income); 10% penalty if withdrawn before 59-1/2 (25% if in the the first 2 yrs of the plan); money must be in SIMPLE for 2 years before you can roll to an IRA.

There are some special withdrawals allowed for SIMPLEs:
- for medical expenses
-to buy a first house
- if you are completely disabled
- to purchase health insurance
- to pay for college expenses

So the withdrawals should be allowed, providing the money has been in the plan for at least 2 yrs.

Prohibited Transactions — What Are They?

Question: I am having a difficult time figuring out this business math question. could someone please help? thx?

John Smith saw the following advertisement. Could you show him how $179.18 was calculated? (Omit the “$” sign in your response.)
$ ______ ×_______ ×_____ /_______ = $ ________

*As of January 31, 200X, and subject to change. Interest on the 8-month CD is credited on the maturity date and is not compounded. For example, a $5,000, 8-month CD on deposit for an interest rate of 5.45% (5.55% APY) will earn $179.18 at maturity. Withdrawals prior to maturity require the consent of the bank and are subject to a substantial penalty. There is $500 minimum deposit for IRA, SEP IRA, and Keogh CDs (except for 8-month CD for which the minimum deposit is $1,000). There is $1,000 minimum deposit for all personal CDs (except for 8-month CD for which the minimum deposit is $5,000). Offer not valid on jumbo CDs.

Answer: i cant help u

Giro pelo Caldeirão – Vasco 1×0 Guarani

Question: transferring 401k into SIMPLE IRA?

i have a 401k and just got laid off. I also have a 2nd job and have a SIMPLE IRA. Can i transfer the 401k into the ira and if so am i looking at any penalties in doing so?

Answer: not sure about a SIMPLE IRA – you can doa direct rollover to a plain old IRA with no penalty – just make sure the 401k company sends the money directly to the IRA – easiest thing to do is contact the 401k company and tell them you want to roll the money to an IRA WITH THEM – they will do all the work and you won;t get hit with any taxes or penalty