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Tax Question

Featured Replies

I rolled over my 401K into an IRA. Does anyone know what kind of tax implications will this have, if any?

I am pretty sure that it all stays tax free. But I am sure one of the resident CPA (ie-nerds) can help you more.

Mike's right. No penalties for rolling it.

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Wooh, good. Brian's last company f***ed him on his. He filled out all the paperwork and his current company sent it in, but they still cut him the check (something like 1/3 of it went to taxes and penalties).

QUOTE(Queen Prawn @ Feb 9, 2005 -> 11:49 AM)
Wooh, good.  Brian's last company f***ed him on his.  He filled out all the paperwork and his current company sent it in, but they still cut him the check (something like 1/3 of it went to taxes and penalties).

 

 

If he filled out the paperwork and has copies (which he should have) he can recover that $$. IIRC he has 3 years to do so.

QUOTE(southsider2k5 @ Feb 9, 2005 -> 12:46 PM)
I am pretty sure that it all stays tax free.  But I am sure one of the resident CPA (ie-nerds) can help you more.

And you're not?

QUOTE(southsider2k5 @ Feb 9, 2005 -> 12:46 PM)
I am pretty sure that it all stays tax free.  But I am sure one of the resident CPA (ie-nerds) can help you more.

And you're not?

QUOTE(mreye @ Feb 9, 2005 -> 11:58 AM)
And you're not?

 

:unsure:

QUOTE(Queen Prawn @ Feb 9, 2005 -> 11:49 AM)
Wooh, good.  Brian's last company f***ed him on his.  He filled out all the paperwork and his current company sent it in, but they still cut him the check (something like 1/3 of it went to taxes and penalties).

 

Same thing happened to me. I had a second job and they were taking money out when I didn't even want them to. I got a check when I quit and had to pay penalties because of early withdrawl.

 

It was only $30 so I'm not going to make a big fuss over it though...

QUOTE(Iwritecode @ Feb 9, 2005 -> 12:09 PM)
Same thing happened to me. I had a second job and they were taking money out when I didn't even want them to. I got a check when I quit and had to pay penalties because of early withdrawl.

 

It was only $30 so I'm not going to make a big fuss over it though...

 

 

They were deducting 401K funds WITHOUT your permission..?? Umm.. you better make a fuss about it. It's against the law and you should report them.

QUOTE(Steff @ Feb 9, 2005 -> 12:17 PM)
They were deducting 401K funds WITHOUT your permission..?? Umm.. you better make a fuss about it. It's against the law and you should report them.

 

Also check to see if they were deducting -or- this was a benefit and just company monies. Rare, but possible. A person that worked for me had that situation with her previous company. IIRC there are IRS guidelines about top heavy plans, common in places like Doctors offices where the Doc tosses in $$$$ and the employees do not participate. So the Doc needed more participation and contributed regardless of the employee's particpation. (More if they particpated)

QUOTE(Texsox @ Feb 9, 2005 -> 01:33 PM)
Also check to see if they were deducting -or- this was a benefit and just company monies. Rare, but possible. A person that worked for me had that situation with her previous company. IIRC there are IRS guidelines about top heavy plans, common in places like Doctors offices where the Doc tosses in $$$$ and the employees do not participate. So the Doc needed more participation and contributed regardless of the employee's particpation. (More if they particpated)

 

 

He did say deducting.. :bang

 

 

:P

QUOTE(Steff @ Feb 9, 2005 -> 01:46 PM)
He did say deducting..  :bang

:P

Some people just assume it was deductions. There are other explanations. It is strange they were doing it without his permission.

QUOTE(Steff @ Feb 9, 2005 -> 12:17 PM)
They were deducting 401K funds WITHOUT your permission..?? Umm.. you better make a fuss about it. It's against the law and you should report them.

 

It was called profit-sharing. I don't know if it's the same thing or not...

QUOTE(Iwritecode @ Feb 9, 2005 -> 02:09 PM)
It was called profit-sharing. I don't know if it's the same thing or not...

 

 

 

They were taking funds out of your check WITHOUT your permission... is that correct..? You need to call an employment attny. I don't know any details about the laws, but I know that is wrong, and I think on a federal level.

If it was called profit sharing it was probably not taken from your check. For $30, I don't think it's worth getting an attorney. Be careful filing your taxes, unmatched 1099 do cause the IRS to get excited, regardless of the amount.

QUOTE(Texsox @ Feb 9, 2005 -> 04:50 PM)
If it was called profit sharing it was probably not taken from your check. For $30, I don't think it's worth getting an attorney. Be careful filing your taxes, unmatched 1099 do cause the IRS to get excited, regardless of the amount.

 

 

I wouldn't get an attny either. But like Tex said.. an unmatched 1099 will get you a call from Uncle Sam..

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