This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
In the U.S. Do you know how to minimize loss when withdrawing (before =
59)
from a 401k ? I want to use the funds to build an income property.
I've heard there is a rule 72(t)in the tax code. Would that apply ?
Thank you for your help
--------------------------------------------------------
david ingram replies:
If you were going to buy a house to live in, you could withdraw up to =
$10,000 without the 10% penalty but would still have to pay the income =
tax on the withdrawal.
Section 72(t) of the code is the section that applies the 10% penalty.
However, section 72(t)(2)(A)(iv) provides an exception.The exception is =
for payments that are part of a series of substantially equal periodic =
payments made for the life (or life expectancy) of the individual or the =
joint lives (or joint life expectancy) of the individual and his or her =
designated beneficiary.
This series of payments may not be modified (other than by reason of =
death or disability) within a five-year period beginning on the date of =
the first payment or, if later, age 59=BD.=20
If the real estate deal was good enough, you could arrange a life series =
of payments out of your 401(k) and just apply them to the real estate =
deal.
I am not recommending that as a blanket policy. However, you can use it =
in the US to buy a Stock portfolio outside of the 401(K) or IRA or in =
Canada take the money out of an RRSP.
The method has particular value in Canada where taking the money out =
early can provide more income in retirement because of our old age =
security clawbacks.
A good friend will come and bail you out of jail...but, a true friend =
will be sitting next to you saying, "Damn...that was fun!"=20
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D
Answers to this and other similar questions can be obtained free on Air =
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier =
Partners and I will be hosting an INFOMERCIAL but LIVE talk show called =
"ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the =
internet at
www.600AM.com=20
Local phone calls to (604) 280-0600 - Long distance at 1-866-778-0600
Old shows are archived at the site.
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
This from ask an income tax immigration planning and bankruptcy expert =
consultant guru or preparer from www.centa.com or www.jurock.com or =
www.featureweb.com. Canadian David Ingram deals daily with tax returns =
dealing with expatriate:
multi jurisdictional cross and trans border expatriate gambling refunds =
for the United States, Canada, Mexico, Great Britain, the United =
Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, =
Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, =
Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, =
Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, =
Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, =
Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, =
US, UK, GB, American and Canadian and Mexican and any of the 43 states =
with state tax returns, etc.
income tax wizard wizzard guru advisor advisors experts specialist =
specialists consultants taxmen taxman tax woman planner planning =
preparer of Alaska, Alabama, Arkansas, Arizona,=20
California Denver Colorado, Connecticut, =20
Delaware District of Columbia Miami Florida,=20
Garland Georgia, Honolulu Hawaii, Idaho, Illinois,
Indiana Des Moines Iowa Kansas Kentucky,=20
Louisiana Bangor Maine Maryland =20
Boston, Massachusetts, Michigan, Minnesota, =20
Mississippi, Missouri, Montana, Nebraska, =20
Nevada, New Hampshire, New Jersey,=20
New Mexico,New York, North Carolina, =20
North Dakota, Ohio, Oklahoma, Oregon.=20
Paris, Rome, Sydney, Australia Hilton
Pennsylvania, Rhode Island, Rockwall,=20
South Carolina, South Dakota, Tennessee, =20
Texas, Utah, Vermont, Virginia,=20
West Virginia, Wisconsin, Wyoming,=20
British Columbia, Alberta, Saskatchewan,=20
Manitoba, Ontario, Quebec City,=20
New Brunswick, Prince Edward Island,=20
Nova Scotia, Newfoundland, Yukon and=20
Northwest and Nunavit Territories, =20
Mount Vernon, Eumenclaw, Coos Bay=20
and Dallas Houston Rockwall Garland=20
Texas Taxman and Tax Guru and wizzard=20
wizard - David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321=20
[email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed =
information or consultation and is to be regarded only as general =
comment. Nothing in this message is or should be construed as advice =
in any particular circumstances. No contract exists between the reader & =
the author and any and all non-contractual duties are expressly denied. =
All readers should obtain formal advice from a competent financial, or =
real estate planner or advisor & appropriately qualified legal =
practitioner, tax or immigration specialist in connection with personal =
or business affairs such as at www.centa.com. If you forward this =
message, this disclaimer must be included."
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/d259cf77/attachment.htm
---------------------- multipart/alternative attachment--
What's Related