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FORM 8829: BUSINESS USE OF HOME 2006
RETIREMENT
GENERAL INFORMATION
 
 


*FORM 1099R AND FORM 5329: RETIREMENT PLANS

You can pull money out of a retirement plan without paying additional taxes; however, you must follow the rules.  Generally the distribution is taxable, but early withdrawals usually result in an additional 10% penalty resulting in an almost 40% tax rate.  Therefore, it is imperative that you plan withdrawals in order to reduce the tax burden. 

Exceptions to the 10% penalty
01.          Age 55 and separation of service

02.          Distributions in the form of an annuity

03.         Due to permanent and total disability

04.          Due to death

05.          For deductible medical expenses

06.          Due to a domestic relations order

07.          To pay for health insurance while unemployed

08.          To pay for college expenses

09.          Up to $10,000.00 to purchase a first home

10.          IRS levy

11.         OTHER
   a.   Due to incorrect code
   b.    Distribution form a 457 plan
   c.     Prior 1986 schedule of payments
   d.    Dividends from a 404k plan

 

 

 

 

 

 

 

 

 

 

 

©Steven E. Burns, 2007                                     information from IRS Publications

 
 
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