accountant of woman now 71.5 says she has to begin to withdraw funds from her ira and pay corresponding taxes as well. her partner is 60. question is: if partner 60 yrs. marries woman 71.5 and they change the ira in both names, then the ira stays in effect until the male partner turns 71.5 and also taxes are deferred until that time as well?
214813
Even if they marry, the IRA is in the name of the 71 year old and they have to start withdrawing.  The person does not have to withdraw it all at once.  The IRA can't be transferred to the spouse except upon death.
4651
With the exception of the contribution of money to an IRA, no.  The year is already over and you cannot go back in time and change history.  You may not be able to deduct money contributed to an IRA depending on what your and any potential spouse's wages were.  Contributing to an IRA would only reduce your taxes proportionate to your tax rate.  So if you were in the 15% braket at $2000 contribution would at most reduce your taxes by $300.
383740
An early withdrawal of an IRA will mean severe tax consequences. You may can borrow other money from somewhere to pay your bills but there is no such thing as a Retirement Loan. If you withdraw it before age 59 1/2, you will have to claim it as ordinary income plus there is a 10% penalty tacked on for the withdrawing of it that the custodian (fund co., broker, etc.) must collect for the gov't. For your future's sake, don't do it.  Good Luck!
49514
If you are still employed by the plan sponsor your withdrawal options may be limited. Read the plan summary you should have received or talk to your HR person. You might be able to take a loan from your account, but it must be repaid within 5 years.\n\nIf the 401k is from a previous employer, then your options are greater. You can roll the account over into a Traditional IRA. This transaction does not trigger any taxation. \nIf you are over 59.5 years old, you can withdraw money from the account. Any amount withdrawn will be taxable to you as income.\nIf you are not over 59.5 and you withdraw money not only will you pay taxes on the amount you withdraw but you will also pay a penalty of 10% of the withdrawn amount.\n\nIf you do not need the money to cover basic living expenses right now, do yourself a favor and roll the money over into an IRA. Work with a financial planner in your area if you would like help deciding upon an appropriate investment strategy.
135143
My wife and I were both previously married.  We have a joint account for the majority of our money and then she has a small separate account so she can buy gifts and stuff without me knowing.  I think a relationship that is based on trust and sharing includes the financial side of things.
204396
It is true...you can use a self directed IRA to defer your tax obligations until your retirement age. Any money that you place into the IRA and any profit that you make can be kept into the IRA account and your not required to pay taxes until you make with drawls at your retirement age. Of course you always want to consult a CPA professional on the specific requirements of this program. But I believe you have it correct in a generalized format. A lot of hard money lenders use that vehicle or a trust to minimize their tax obligations.
573014
Um, does this special economic status come with an actual tax break instead of a marriage penalty?\n\nOkay: \n1) Death/Living Will/Estate/Hospital benefits are easy enough to manage... simply fill out the paperwork. Even non-married hetero couples can do this. A lot of companies are now offering medical benefits to couples, regardless of marital status. As for "retirement" benefits, what century are you living in? No one gets a pension anymore, no one is going to see social security in 20 years, and you can easily will your 401k and IRAs to the person OF YOUR CHOICE without marriage. \n2) How does a gay couple get "knocked up"? So no, they should not be eligible for EIC. Of course, this really isn't an issue since most gay couples earn way more than the median hetero couple income. \n3) I don't recall getting a tax break for filing jointly. In fact, last time I checked, getting married actually gave the government more money for the various fees and name changes associated with the marriage. \n\nWhere do you draw the line for couples deserving special economic status? A guy with three "wives"? A guy with a wife and a "goat"? Personally, I find even the child tax breaks offensive. It isn't my fault I chose not to overpopulate the world.
487866
Let me make sure I understand the question.  Are you saying you are taking out an early distribution from your IRA of $40,000 and want to shelter all of it from the 10% early distribution penalty?  Well, first of all, you only have $10,000 per person per lifetime of 1st time home buyer's exemption.  Of course, if there are two of you, each can pull out $10,000 from their own IRAs.\n\nIt looks like you are reading Publication 590.  Good.  The phrase that is confusing to most people is "The part not subject to the tax is generally the amount that is not more than the qualified higher education expenses (defined later) for the year...".  What they are saying is that the amount you can exempt for education can not be more than the amount you paid for education.  They are not saying you can't include other exemption items on top of the education exemption items.\n\nSo, if you paid $11,000 for tuition, fees, books, supplies, and equipment regardless if it was from a loan, a gift, or from your own wallet, but not from a scholarship or grant, and if you paid at least $10,000 for a house, and if your medical expenses exceeded 7.5% of your AGI by $2,000 (regardless if you use a Schedule A), then you can pull out $23,000 from your IRA and not be penalized.  Don't forget that even though you avoid the penalty, you will still have to include the amount you pull out as taxable income in the year you pull it out.  There is nothing you can do to avoid that.
286985
Also important, and often overlooked, is the fact that all the growth that takes place within a Roth IRA is completely tax-free.  In a TSA or Traditional IRA, she pays taxes when she removes the money.  In a Roth IRA, when she withdraws, it is all tax free, because she paid taxes on it before she deposited.  But the money she removes is not the same amount as the money she deposited.  So, in the Roth IRA, all the profits on her investments inside the account are completely tax free.  This is particularly important if she is young, because the money will have many years to grow, and most likely the amount of growth will be larger than the total amount of cash deposited.  \n\nI usually suggest younger people to lean heavily toward Roth's, and as people get older, they may have more benefit from the tax deductions on other accounts instead.
72981
I am not sure exactly what your question is asking.  If you retire at 55, but need to access your IRA money right away, you should look into IRS rule 72t.  There are a few different methods of doing this and you need to sit down with a tax advisor to make sure that you do it right.  Click this link for an article that has more info\nhttp://ktla.trb.com/business/yourmoney/sns-yourmoney-0403moneytalk,0,7524444.story\n\nGood Luck!!!
70035
Your spouse may be awarded part of your retirement in a divorce, but if they re-marry, they will lose it. VA benifits may not be awarded to a divorcee.
562329
Ahhh, the million dollar question for Roth accounts...\n\nAnd the answer is - it depends (sorry). Unfortunately, you need a crystal ball for this one. Your decision will likely come down to what you believe the future holds. You need to consider several factors, but you basically have two courses of action to take. \n\n1) Take the sure thing - Invest in a Roth IRA, paying tax upon the contributions at your current income tax bracket, enjoy tax-free compounding of interest, and tax-free withdrawals of contributions and earnings through a qualified distribution (usually at retirement).  Be careful, though...even if you are 90 years-old, your money must be in the Roth account for at least 5-years before qualifying for a tax- and penalty-free withdrawal. There are other benefits to having a Roth account versus a traditional IRA, such as the ability to get to your money without penalty for qualified reasons, such as needing to get to the money in order to purchase your first home.  Contributions to Roth IRA's are subject to certain AGI limitations, so check with the IRS or a competent accountant first.\n\n2) Let it Ride - Invest in a traditional IRA and enjoy a tax deduction today and tax-free compounding of interest until you are able to take a qualified distribution (usually at retirement) at which time you will pay taxes on the principal and earnings at your future income tax rate.\n\nSo, look into your crystal ball...\n\nDo you believe that you will be in a higher tax bracket at retirement age than you are right now?  If so, the Roth IRA option may be the right choice for you as you will likely pay less in tax today than you would 35 years from now. Likewise, if you believe you will be in a lower tax bracket in retirement, it makes more sense to simply contribute to a traditional IRA, enjoy your tax deduction today, tax deferral on earnings over the years, and pay the piper upon retirement.\n\nThere are several wild cards to consider in this scenario, not the least of which is the possibility that tax brackets change. If you want my honest opinion, I think it is naive to assume that the historically low tax brackets we enjoy today will be around in 30 years. I am 31 years old and, without getting political, just look at the current landscape of our country and its budget deficits. The cost of wars, strains on social security from aging baby boomers, etc, leads me to believe that the government is mortgaging our nation's current problems and our generation will likely have to pay for it. And how will we pay for it? Higher taxes. All things being equal - if you have more than 15 years until retirement, I would opt for the Roth IRA.
406011
The other answers forget..\n\nRule 72 (IRS) allows u to pull the $$$ from IRA (assume it applys to 401k too)...\n\nIt allows u to get it before 59.5 with only taxes to pay if u do it over a specified period of time.\n\nFor example u pull 40k out but do 4k per year for 10 years.\nThis is a way get $ out before 59.5 without penalty.\n\nIRS recongizes that there are life events that force many to grab funds from existing sources for emergencies.\n\nU could use this rule to pull out 100% of the 401k, and use portion for wife and portion for self.
132530
It shouldn't make any difference whether you get married or not. Unless your husband has a really good insurance policy and job. I guess you could get updated. If that was the case for me, I wouldn't get married and loose my funds. Your marriage could go sour in a year and you would have a hard time getting your funds back.
262682
Roth IRA eligibility phases out at the following levels:\n\n    * $150,000 to $160,000: Married Filing Jointly\n    * $0 to $10,000: Married Filing Separately (and you lived with your spouse at any time during the year)\n    * $95,000 to $110,000: Single, Head of Household or Married Filing Separately (and you did not live with your spouse)\n\nGenerally speaking, a Roth IRA is the best option for *most* people, since it allows for tax-free withdrawals.  This tends to outweigh the up-front tax benefits of the traditional IRA for most people.\n\nAs for where to open your Roth IRA account, Vanguard, T Rowe Price and Fidelity all have large families of no-load funds that you can use to best fit your risk tolerance.\n\nBefore you do any of this, I'd suggest that you make a small investment in a book which will give you a solid foundation on how to invest your money.  The one I generally give to high school graduates, college graduates and newlyweds is "The Only Investment Guide You'll Ever Need" by Andrew Tobias.  It actually comes close to living up to its billing and it's an easy read.\n\nIf you'd like to learn more or get other recommendations on how to educate yourself more, click on my name and send me a note.
20716
No she can't, if the property is her residence. The 1031 is limited to business and investment property.  But if she lived in the house 2 of the last 5 years, there is another Internal Revenue Code provision that shelters much or all of her capital gain, I believe it is 250K for a single person, 500K for a couple.
613292
Since a regular IRA has tax-deffered dollars, you are taxed on all of it if you withdraw it and don't roll it over into another IRA of any type.  You also are penalized 10% of the value of the account if you are younger than 59 1/2.