Over70irregs
Well-Known Member
We hv seen 9.5 language change at drop of hat. Need more organizing so as to be less dependent on Browns $.
I've had less stops during Christmas.Where is all of this money coming from? People ain't got jobs and unemployment can't be THAT much.
Same here plus I had a helperI've had less stops during Christmas.
Where is all of this money coming from? People ain't got jobs and unemployment can't be THAT much.
401K's. They are letting you take money with no penalty other than taxes and I hear they are letting you spread that out over 3 years. Insane as that sounds I know of two guys who have taken money and paid mortgages and assorted thing off.Stimulus check plus tax refund. And CoVID 19 is the end of the world so people are dying to max out their credit cards.
Article 78 Paragraph 3 in your contract book if you need to verify.I heard they are invoking the special pandemic 24/7 rule.
401K's. They are letting you take money with no penalty other than taxes and I hear they are letting you spread that out over 3 years.
Crazy, they are offering us time off left and right due to having so many extra people and not laying off.Article 78 Paragraph 3 in your contract book if you need to verify.
They are not asking for documented proof(so I hear)they merely ask you if you or anyone in your family has had economic loss due to Covid or have you taken money from any other retirement fund. My one buddy said his sister has and they gave him $20,000.Yes. They are waiving the 10% early withdrawal penalty (under 59 1/2) and the 20% mandatory withholding. Yes. You are allowed to spread the tax hit on the early distribution over the next 3 tax years. Yes. You can withdraw a total of $100K.
The one caveat is that the withdrawal must be Covid related and you must have documented proof that either you or a close family member had been adversely affected during the crisis.
This should be done ONLY as a last resort. $100K taken out now could potentially cause upward of a $300-500K loss over time.
They are not asking for documented proof(so I hear)they merely ask you if you or anyone in your family has had economic loss due to Covid or have you taken money from any other retirement fund. My one buddy said his sister has and they gave him $20,000.
Oddly enough that's what I thought exactly about doing.If you are going to do this you may as well take enough (if you can) to pay off all of your bills and then max our your 401k from that point forward.
While I'm entirely not sure I want to touch my 401K, can it really be a bad idea to use it to pay off loans or let it slip away in the next economic hit? Can't lose what you don't have.
I have a call into my accountant as we speak.That's an excellent point and having the ability to spread the hit over the next 3 years does make it enticing.
Oddly enough that's what I thought exactly about doing.
I have a call into my accountant as we speak.
From what I've been told they are not. You can return any amount you choose that you borrowed yet still max out your contributions for the year. So I'm told.You may want to ask your fund if this is even a possibility as they may have put a moratorium on future contributions for a specific period of time in return for letting you withdraw "their" money. I don't know if this is the case or not but it wouldn't surprise me if they were to add this restriction.
From what I've been told they are not. You can return any amount you choose that you borrowed yet still max out your contributions for the year. So I'm told.
I will let my co-workers know.If you choose to return any part of the distribution make sure that the 1099-R that you receive in January/February 2021 reflects that or the IRS will assume that you kept the entire distribution. Also, you only have 60 days to change your mind on any or part of the distribution----anything beyond that will not be recognized and you will be taxed on the full amount.
Box 7 of the 1099-R will normally show Code 1 for Early Distribution if you take funds out before you turn 59 1/2. I don't know if they will be allowed to change the code to 7 for Normal Distribution.
Seeing as the federal unemployment kick ($600) isn’t taxable, when combined with the state unemployment is the equivalent to a full time wage of $32. Quite a few people are making more on unemployment then they normally do.Where is all of this money coming from? People ain't got jobs and unemployment can't be THAT much.