U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Tennessee
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-10-2008, 09:49 PM
 
Location: Hometown of Jason Witten
5,985 posts, read 4,000,428 times
Reputation: 1921

Advertisements

Last year when my job went away I had to take an early 401(k) Lump Sum Distribution to avoid becoming a street person. If I am interpreting Publication 575 correctly, I am exempt from the additional 10% tax on the amount withdrawn because I was older than 55 at the time. Is this correct? The answer will determine if I owe them or they owe me.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 02-10-2008, 09:57 PM
 
16,038 posts, read 30,148,088 times
Reputation: 20139
Quote:
Originally Posted by Ridgerunner View Post
Last year when my job went away I had to take an early 401(k) Lump Sum Distribution to avoid becoming a street person. If I am interpreting Publication 575 correctly, I am exempt from the additional 10% tax on the amount withdrawn because I was older than 55 at the time. Is this correct? The answer will determine if I owe them or they owe me.
I thought the age was 59 and a half for the cutoff?

I am not an accountant or qualified to give advice.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-10-2008, 09:58 PM
 
Location: Beautiful East TN!!
7,280 posts, read 20,118,685 times
Reputation: 2774
You can check out IRS.gov, you might get the exact answer. I know they also have a phone number listed so you can ask the horse it's self (you know, straight from the horses mouth hahahahah).
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-10-2008, 10:11 PM
 
Location: Hometown of Jason Witten
5,985 posts, read 4,000,428 times
Reputation: 1921
Quote:
Originally Posted by mbmouse View Post
You can check out IRS.gov, you might get the exact answer. I know they also have a phone number listed so you can ask the horse it's self (you know, straight from the horses mouth hahahahah).
Mbmouse, I don't know which has been more confusing: IRS publications or IRS people. SMG, I'm not yet 59.5, but Publication 575 seems to indicate that being permanently separated due to a plant closing lowers the age to 55. I certainly hope so.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-10-2008, 10:13 PM
 
Location: Hometown of Jason Witten
5,985 posts, read 4,000,428 times
Reputation: 1921
Quote:
Originally Posted by mbmouse View Post
You can check out IRS.gov, you might get the exact answer. I know they also have a phone number listed so you can ask the horse it's self (you know, straight from the horses mouth hahahahah).
By the way, that IRS number is 1-800-BUSYSIGNAL.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-10-2008, 10:29 PM
 
16,038 posts, read 30,148,088 times
Reputation: 20139
Quote:
Originally Posted by Ridgerunner View Post
Mbmouse, I don't know which has been more confusing: IRS publications or IRS people. SMG, I'm not yet 59.5, but Publication 575 seems to indicate that being permanently separated due to a plant closing lowers the age to 55. I certainly hope so.
That may be. I hope so too for you! Let me check a second with my accountant; he is online.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-10-2008, 10:36 PM
 
Location: Hometown of Jason Witten
5,985 posts, read 4,000,428 times
Reputation: 1921
Quote:
Originally Posted by SmokyMtnGal View Post
That may be. I hope so too for you! Let me check a second with my accountant; he is online.
SmokyMtnGal, I appreciate you very much. The distribution code in Box 7 of the 1099-R is "2."
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-10-2008, 10:38 PM
 
16,038 posts, read 30,148,088 times
Reputation: 20139
Here you go!!!

In regards to Publication 575, It appears that there are some exceptions to the 59.5 rule and one is that the tax isn't applied to distributions from a qualified retirement plan other than an IRA after your separation from service in or after the year that you reach age 55. There are other rules that will lower that down to age 50 for certain public safety employees. It looks like you're getting the 10% coming your way; you owe me a Pal's ham biscuit and cheddar rounds!

*** disclaimer*** I am not an accountant and this information should be verified on your own.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-10-2008, 10:39 PM
 
16,038 posts, read 30,148,088 times
Reputation: 20139
Quote:
Originally Posted by Ridgerunner View Post
SmokyMtnGal, I appreciate you very much. The distribution code in Box 7 of the 1099-R is "2."
he said: "that is a better code to have". With this new information he is double checking his message. BRB
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-10-2008, 10:41 PM
 
16,038 posts, read 30,148,088 times
Reputation: 20139
good to go! If 2 appears in Box 7 you are exempt!
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Tennessee
Similar Threads

All times are GMT -6.

© 2005-2022, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top