If you haven’t reached retirement age and need quick cash, it may be tempting to take money out of your IRA. However, there are some consequences to consider that could result in tax problems later on. Know Your Taxes Distributions from a traditional IRA are generally...
Month: March 2019
Hardship Distributions from 401k and Qualified Plans
A plan provider may allow hardship distributions for employees that are experiencing financial need. Before you take one of these distributions, consider the following effects of your withdrawal: You probably have to pay income taxes on your withdrawal in the current...
Avoid an IRS Tax Refund Offset
Your tax refund can be offset and applied towards federal tax debt or many other types of debt. You’ll need to figure out which agency is receiving your refund money by looking at your offset notice. Tax refunds can be offset to pay the following debts: Federal tax...
Common Tax Problems for Retirees
Retirement changes your financial situation, and can also result in changes to your tax situation. Be prepared for new tax brackets, different tax obligations, and tax rules you’ll have to pay close attention to during retirement. A failure to keep up with your tax...