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Can you use your IRA retirement funds for a downpayment on a house?
yes you can. as long as you have the funds.
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Answer Yes, as long as it doesn't go over the total amount allowed by law for the year. When you make a contribution, you must identify what tax year you are con…tributing for.
There are some different ideas on the acronym IRA stands for in IRA funds. However, most of people agree with the idea that IRA stands for Individual Retirement Account.
Eligible Compensation You must have eligible compensation in order to be eligible to contribute to an IRA. For IRA purposes, eligible compensation includes wages, salaries, t…ips, commissions received as a percentage of sales, taxable alimony and separate maintenance payment you receive under a decree of divorce or separate maintenance. If you are a sole proprietor or a partner, your compensation is based on your net earnings from your trade or business, reduced by contributions to any employer-sponsored plan that you adopt and any deduction allowed for 50% of your self-employment taxes (see page 7 of the 2004 version of IRS Publication 590). Amounts you receive as interest, dividends, pension, annuity, earnings and profits from property investments, and any amount you exclude from your income are not considered eligible compensation for IRA purposes.
A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. There is no restriction on how we can use the money from Home Equity Lo…an.
A mutual fund is an investment, something you buy in expectation of it going up in value. An IRA , individual retirement account, is an account which can hold different …types of investments (like mutual funds). It is not any particular investment. Think of it this way: an IRA is a bucket and a mutual fund is what you choose to put into the bucket. This issue can be confused because of the way banks market IRAs. They often marry the account with a particular investment, the CD. So, banks will advertise an IRA "paying 5% for 5 years" What they have done is taken away all choice as to what you can put into the IRA and have told you they will sell you an IRA with a 5 year, 5% CD inside of it.
60 days from the distribution date to avoid the 10% early withdrawl and/or any taxes due if the IRA is a traditional and not a Roth. I would suggest a direct rollover so as to… have a paper trail between custodians.
You cannot contribute more to your IRA than the amount of your "compensation income." Compensation income is the taxable portion of your wages/salary, net self-employment, and… alimony. Any amount shown in box 1 of a W-2 minus the amount shown in box 11 of the same W-2 is automatically considered taxable compensation income. So if you are not doing some kind of work or receiving alimony, you can't contribute. There is no age limit for contributions to a Roth IRA. People over 70 1/2 cannot contribute to a traditional IRA.
Answer The issue would be with the Gift Tax. However, there is a federal gift tax annual exclusion and a lifetime amount. Parents can transfer substantial… amounts free of gift taxes to their children or other donees through the proper use of this exclusion. The statutory exclusion amount ($10,000) is adjusted for inflation annually, using 1997 as the base year. The amount of the exclusion for 2007 is $12,000. The exclusion covers gifts an individual makes to each donee each year. Thus, a taxpayer with three children can transfer a total of $36,000 to them every year free of federal gift taxes. If the only gifts made during a year are excluded in this fashion, there is no need to file a federal gift tax return. If annual gifts exceed $12,000, the exclusion covers the first $12,000 and only the excess is taxable. Further, even taxable gifts may result in no gift tax liability thanks to the unified credit (below). Gift-splitting by married taxpayers. If the donor of the gift is married, gifts to donees made during a year can be treated as split between the husband and wife, even if the cash or gift property is actually given to a donee by only one of them. By gift-splitting, therefore, up to $24,000 a year can be transferred to each donee by a married couple because their two annual exclusions are available. Thus, for example, a married couple with three married children can transfer a total of $144,000 each year to their children and the children's spouses ($24,000 for each of six donees). Where gift-splitting is involved, both spouses must consent to it. Consent should be indicated on the gift tax return (or returns) the spouses file. IRS prefers that both spouses indicate their consent on each return filed. (Because more than $12,000 is being transferred by a spouse, a gift tax return (or returns) will have to be filed, even if the $24,000 exclusion covers total gifts. The “present interest” requirement. For a gift to qualify for the annual exclusion, it must be a gift of a “present interest.” That is, the donee's enjoyment of the gift can't be postponed into the future. For example, if you put cash into a trust and provide that donee A is to receive the income from it while he's alive and donee B is to receive the principal at A's death, B's interest is a “future interest.” “Unified” credit for taxable gifts. Even gifts that are not covered by the exclusion, and that are thus taxable, may not result in a tax liability. This is so because a tax credit wipes out the federal gift tax liability on the first taxable gifts made in your lifetime, up to $1 million. However, to the extent you use this credit against a gift tax liability, it reduces (or eliminates) the credit available for use against the federal estate tax at givors death.
Legal businesses who employ individuals for work in exchange for money in the USA have a tax ID number that is unique and attached to all finances which is on file by the Inte…rnal Revenue Service (IRS) and the Federal Treasury Department (also known as FMS, Financial Management Services). To be a legal and legitimate employee, an individual employee must have a Social Security Number that is unique and attached to their personal full name, date of birth, city and state of birth and mother's maiden name and is kept on a Master Beneficiary Number file through their lifetime for earnings, taxes, identification, and other references. From each pay check earned for services, work, compensation or tips that an individual receives from their employer it includes a taxation from their gross earning that is set aside into an account for Social Security and Medicare. It is strictly money that comes from the EMPLOYEE only. The taxed funds do not include money from any other source: not the employer, the county, or state. It is from the worker's earned income only. It is not the same as Workers Compensation Fund. A person may have one employer his entire working career or he may have several, dozens, hundreds of different employers until he retires or becomes disabled and unable to do any gainful work. The uniquely identifiable Social Security Number assigned to you, the employee, follows your earning history and the special taxable amounts set aside into the Social Security and Medicare funds are always accruing and kept up to date. Therefore, when you retire from your profession, trade, skilled labor, etc., you notify Social Security Administration and begin to receive back all the moneys you paid into that fund which the Federal government taxed out of your paychecks in monthly benefit checks. So you receive a monthly check, a pension, regularly, from money which YOU EARNED AND SAVED for retirement or should a serious disability arise that forces you to stop working and begin receiving those funds. The funding in Social Security Administration to beneficiaries comes from THEIR paid work. It is not generated by the government itself nor public taxes: the social security administration check I received this month is actually money I saved while I was younger and able to work at my job. This is not to be confused with Social Security Insurance, known as 'SSI'. Social Security INSURANCE recipients receive a monthly stipend that is funded by state and county public taxes. Therefore, a small child can be a recipient of SSI, or a young blind person, or anyone who is ultimately unable to fend for themselves financially and would otherwise be unfed, without a home or the ability to pay for medication and living expenses necessary for survival. Due to our society's economic structure, this social insurance is funded by public taxes and is necessary for the health, safety and welfare of the general public. Without it, those who are unable to have adequate jobs and medical benefits for illness, medicine, hospitalization, childbirth, etc. would be at a total disadvantage, mainly through no fault of their own for whatever reason exists, to survive and would basically resort to desperate crimes to be able to eat, have shelter and live with the rest of the society. However, the beneficiaries of Social Security Administration Retirement are people who are receiving money they earned themselves and are classified different ways. Some are early retirement people, who became disabled and paid enough into their funds to collect it sooner; some are veterans who are retirement age or were injured while serving in the military forces; some are retired that worked for the railroad industry their whole working career, which is a major contributor and factor in our country's economic success. Others are spouses who did not work outside of the home but contributed by raising children and making sure they were educated and fed in a safe home so they could go on and become independent, self sufficient members in society and therefore are entitled to receive a retirement pension of their own from the husband or wife's working fund, because the Federal government and society recognizes that to be the same as being employed full time, even more so. We hope you have a better understanding and answer about how or where the funds come from regarding Social Security Administration's Retirement. It is a good question that many people think about often but is often overlooked when talked about or read in books and newspapers.
\nYes. But there may be penalties for early withdrawal. And, if it is a traditional IRA there will also be federal (and maybe state) income taxes due, as well as a ten perce…nt penalty to the IRS under most cases, if the withdrawal is made before age 59 1/2.\nFor a roth IRA, there also may be penalties for early withdrawal, but there will be no taxes due if all you withdraw is the amount you originally deposited. Once you are 59 1/2, you may withdraw even the gain without taxes.
One would need to make a visit to a bank in order to open an IRA retirement account. Once a bank visit was made, savings can be deposited and saved for retirement.
the IRS does not recognize a Canadian registered retirement account as a IRA account better to leave it in Canada or contribute directly to the IRA from Canada
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i got a letter today-i also worked for beatrice foods and had small retirement. call (800)872-2257. that is retirement service center of ConAgra Foods-they purchased Bea…trice. I will call tomorrow.
Generally IRAs are protected from creditors, and bankruptcy reform back a few years ago put them into the same category as pensions and annuities, which are exempt from seizur…e under federal bankruptcy law under 11 USC 522(d)(12) up to $1-Million in total value. On a State level there are some variations on if a Civil Judgment could attach to these types of retirement accounts. I would suggest that you talk with an attorney in your State for the fine details has there are many factors that can effect your defense on garnishing the IRA.
Unfortunately, yes, they are.