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So I have an IRA with etrade and I want to know if this is possible.
Can I cash it out as a rollover to my bank without putting FBO? I will be returning the money within 60 days. Is this possible?
Nothing sketchy or illegal. I gotta boost my credit score so I can refi and with the cash out I can return the money. Just to avoid taxes and early penalties. I'm just short of the fico requirement and if I pay down one credit card my lender can do a quick rescore to approve me. He didn't tell me to do this I just thought of it right now ad a way to make everything work. The refi will lower my monthly payment significantly and kill off medical bills. It's a no Brainer..I'm just 20pts off to go conventional.
Possible or will etrade require to know where it's going to?
It is I have been an MLO in my prior job. You don't pull a full report. It's simply an immediate rescore verified for the bureaus. Not a full report and it's enough to qualify with lenders.
This thread isn't asking about if. I just want to know about IRA rollover rules. I just posted the info so it doesn't come across like I'm doing drug smuggling or gambling my retirement money at the casino.
Without putting the money in another IRA account, it is not a rollover, it is a distribution. In which case Etrade is required to withhold 20% as IRS income tax withholding. And if you miss the 60 days for any reason, there will be an additional 10% IRS penalty.
Better to "tighten your belt" and pay down debt from income, then do a re-fi.
Without putting the money in another IRA account, it is not a rollover, it is a distribution. In which case Etrade is required to withhold 20% as IRS income tax withholding. And if you miss the 60 days for any reason, there will be an additional 10% IRS penalty.
Better to "tighten your belt" and pay down debt from income, then do a re-fi.
Etrade wouldn't be mandated to withhold 20%, I can process Ira distributions all day long without holding anything back for taxes
Yes, you can do it. Tell your custodian you want 0% withholding. You have 60 days. Don't wait until the 61st day, that will be too late.
Keep in mind that since as far as your current custodian knows you cashed out your IRA, they will send you a tax form (1099-R) at the end of the year stating so. But when you file your 2015 return, you are going to contradict that form and claim the money was rolled. You will need to be able to show documentation for this. So, keep copies of everything. Photocopy the check they send you, the check you write within 60 days to your new custodian, and your initial statement from your new custodian showing the amount deposited. It is cleanest when the dollar amount matches to the penny. Save all of this with your copy of your 2015 return.
Yes, you can do it. Tell your custodian you want 0% withholding. You have 60 days. Don't wait until the 61st day, that will be too late.
Keep in mind that since as far as your current custodian knows you cashed out your IRA, they will send you a tax form (1099-R) at the end of the year stating so. But when you file your 2015 return, you are going to contradict that form and claim the money was rolled. You will need to be able to show documentation for this. So, keep copies of everything. Photocopy the check they send you, the check you write within 60 days to your new custodian, and your initial statement from your new custodian showing the amount deposited. It is cleanest when the dollar amount matches to the penny. Save all of this with your copy of your 2015 return.
The 1099 old firm would be paired up with the 5498 new firm and that's what washes the transaction
Got it so I basically "fix" it at tax time. Makes sense thanks.
How do I dodge the 10% penalty? Are they mandated to charge the 10% early withdraw penalty? Couldn't I say that I'm planning to roll it over but not sure where to yet? Or would that not fly?
Got it so I basically "fix" it at tax time. Makes sense thanks.
How do I dodge the 10% penalty? Are they mandated to charge the 10% early withdraw penalty? Couldn't I say that I'm planning to roll it over but not sure where to yet? Or would that not fly?
The penalty is reported and paid at income tax time on your tax return. You won't be reporting or paying a penalty.
You can have 0% withheld, just tell your custodian that is what you want.
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