Can I use my IRA to pay for training without a tax penalty?
112983
You do not need to tap into your IRA just to get a mentor coach to get your business going. Getting a mentor is not one of the reasons where you get off the penalty clause of the IRA. \n\nI suggest you go to the following places, all of which offer their services for free\n\nSCORE http://www.score.org - this is a group of volunteers mostly retired business professionals and entrepreneurs with years of experience in doing business. They can give you free mentoring as you start your business. I have tried them and they are excellent. Lots of great ideas and just to be able to talk to someone about your ideas is great.\n\nYour local Small business development center = go to your favorite search engine and search for "[your state] SBDC"\n\nIf you are a woman, you can also go to your local Women's Business Center. Here is a PDF file of state-by-state locations of these centers http://www.onlinewbc.gov/wbc.pdf\n\nGood luck!\nIsabel Isidro\nFor information on starting a business, visit http://www.powerhomebiz.com
409573
It depends on WHAT you are taking the money out for, if you want to buy a home for the first time you are allowed to "borrow" up tp $10,000 without major penalties. There are also allowances for college tuition.  Check with your 401K account advisor, if you pay back the money within a certain period of time, you are not charged major taxes or penalties.
755986
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!
30915
With most all IRA and SEP accounts you can do a one time withdraw for schooling or first time home buyers. and not pay a penalty. You may need to talk to you bank and find out what type of form you should be looking for that explains this withdraw for the IRS.
55570
The 403b clearly can be rolled over into a traditional IRA without any penalty or tax consequences, and my understanding is that you must first rollover the 403b into a traditional IRA.\nThen, if you are below maximum income requirements and qualify for a Roth, you can take money out of the IRA, which is then taxed as income, and transfer it to a Roth IRA. You therefore are paying taxes in the year you take the money from the TSA. This is usually most advantageous the younger you are.\nThis is a highly complicated issue, but the attached sources provide some good information about the pros and cons, as well as the procedures for doing such a transfer.
1009135
You may be able to borrow some from your IRA account but I would not recommend it.  Typically it would be for a home purchase and not home improvements.  Honestly I am not certain so you may want to take a look at publication 590 from the IRA that details out the rules for the IRA in plain english (which helped me quite a bit!)
177816
Yeah, but wouldn't it be counterproductive? Wouldn't your home equity loan's interest rate be more than your annual return on your IRA? Are you going to fund the IRA just to take the money out after tax time and pay back off the loan? \n\nIf you did that, it would seem like you would just face the tax penalties in next year's return. I'm still very new to IRAs and have little experience in the finance area. Investigate it and let us know what you find!
396665
As an individual you are considered a cash basis taxpayer.  Therefore, you can deduct expenses only in the year paid unless an exception is given by the IRS.  An example of an exception is that you can make an IRA contribution for the previous year in the year the tax return is prepared if the contribution is made prior to the due date of the return.  There is not an exception to the rule for tuition payments.  So, sorry, the mess up cost you an additional credit.
573602
I did take a course so that I could prepare individual income tax returns, and I learned about the ways I can 'manipulate' the tax system to my benefit without cheating; like planning to attend school in a year that I may not be able to claim a child turning 17 that year, for instance.  I may even get a better credit for being considered a freshman or sophomore (up to $1500) than the $1000 child tax credit. I may no longer be 20 years old, but it seems that going back to school in my later years will pay off in several ways. :)
582371
As lovely an idea that it, no it won't avoid any taxes. The only way to avoid the capital gains or ordinary income taxes on ivestments is for you to invest in a tertirement account like an IRA or Roth IRA or employee benfit plan.\n\nIt sounds like you own a business. Speak with your CPA to find out which plan is best for you. SOme examples are\n\nSEP\nSimple SEP\nSimple IRA\nSimple 401k\nRoth IRA\nTraditional IRA\n\nAS you can see, there are alot of choices. Each one has its benefits and srawbacks. Some are tax free and some are just tax deferred until retirement.\n\nIf these plans arent an option for you, look into index funds, they typically have low if not any turnover. \n\nTurnover=capital gains=taxes\n\nGood luck
468645
Yes you can absolutely.  they are two different animals.  A traditional IRA is funded with before tax dollars and a Roth IRA is funded with after tax dollars. A disbursement from a traditional IRA is taxed, and disbursement from a Roth IRA is not.
1153541
1. Put money away in a 401K.   If your company matches it, you can make money on it right away.  Second, it reduces your taxable income (as you are not charged taxes on the money you save), and might put you in a lower tax bracket.  You can save $14,000 annually.\n\nTry $50 a month for starters.\n\nIf your company does not have a 401Kput money into a IRA.  Again, the money you put away is not taxed.  You can save up to $4000 annually.
81277
If your company offers a 401K plan, take advantage of it.  They'll take out a fraction of you paycheck (as lo as 1%) and invest it in a mutual fund.  Many companies match your contribution, so that's like free money.  \n\nIf you just forget about it and just let it grow, you'll soon build up quite a bit of dough.\n\nIt's tax deferred, so that means you won't pay taxes on it until you cash it out.\n\nThe only drawback is you can't cash it out until you're 59 and a half without paying a penalty.
826571
Individual Retirement Account, if your money is before taxes you can contribute to a traditional IRA, this means you earn interest on the untaxed money. You are taxed when you make take the money out at retirement. Roth IRA, you take money that has already been taxed and are able to draw from it at retirement, without taxes. This is rumored to have been named for Ira Cohen, an IRS actuary who was working with them back in 1974. You can go to just about any bank, credit union, or find a financial advisor to explain in detail all aspects, what is allowed, what is not allowes (such as drawing out your money before age 59.5).
453503
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.
116392
I am not sure if it is beacuase I have a margin account or not, but I don't think so cause it seems to work the same in my IRA acocunts, but I am not paying any interest. But if I sell stock A I can then buy stock B right away.\n\nThe only time it is a problem is if I sell stock B and try to buy stock C before the stock A funds have shown up. So it might be your broker. I use ameritrade.
844086
No there is only a certain amount you are allowed to invest in a pension fund, and you still have to pay tax on any unearned income