Sentences with phrase «paying ordinary income»

Yes, I might be losing out on some additional income but really the «hurt» is in paying ordinary income taxes.

As for non-deductible IRAs and annuities, the advantage of delaying taxation can be huge depending on time horizon even if it does mean paying ordinary income tax rates vs. capital gains rates.

So even when you're in the accumulation phase, and paying dividend and capital gains taxes at the highest bracket, this is still less money than paying ordinary income rates at your lower (retired) tax bracket.

Traditional IRA to Roth IRA conversions require paying ordinary income taxes on any conversion amount above the tax basis that is associated with any non-deductible contributions to traditional IRA accounts.

Starting in the year you reach age 70 1/2, you will need to begin taking required minimum distributions (RMDs) and paying ordinary income taxes on the distribution amount.

That's on top of paying ordinary income taxes on the distribution.

Most households depend on a 401 (k) plan to save for retirement on the grounds that they receive a tax deduction today and pay ordinary income taxes when they take distributions later, presumably when they are in a lower tax bracket.

When you unload those bonds, you pay ordinary income tax on the interest you earned.

When taking withdrawals from an IRA before age 59 1/2, you may have to pay ordinary income tax plus a 10 % federal penalty tax.

If you take withdrawals from a variable annuity prior to age 59 1/2, you may have to pay ordinary income tax plus a 10 % federal penalty tax.

If you buy a qualified annuity — that is, one you purchase with pretax dollars — you'll have to pay ordinary income taxes on 100 % of the disbursements you receive, Kurt noted.

If the account is worth $ 25,000 in 2010 when they convert it to a Roth IRA, they will have to pay ordinary income taxes on $ 9,000 ($ 25,000 — $ 16,000 = $ 9,000).

However, this would be considered a «Roth conversion,» so you'd have to report the money as income at tax time and pay ordinary income tax on it.

When you close or take money out of a retirement account before the guidelines allow it, you typically have to pay ordinary income tax, plus an early withdrawal penalty.

Investors can still employ this strategy, but they are required to pay ordinary income tax rates on any dividend income not meeting the holding period requirement.

Additionally, if you purchase a dividend - paying equity, why should you have to pay a ordinary income tax when you purchased the equity with «after - tax dollars.»

And, if you hold the collectible for less than a year, you pay ordinary income tax on it.

For most types of unearned income, you'd just pay your ordinary income tax rate.

The investments continue to grow tax - free until your spouse starts withdrawing them and then just pays ordinary income taxes on the money they take out.

footnote * When taking withdrawals from an IRA before age 59 1/2, you may have to pay ordinary income tax plus a 10 % federal penalty tax.

So, although you can usually deduct your contribution to a traditional IRA, you pay ordinary income tax on the withdrawals.

Starting at age 70 1/2, owners of traditional IRAs must take a certain percentage out of the account and pay ordinary income tax.

The beneficiary of your IRA will pay ordinary income tax on any distributions at his or her rate.

Instead, you pay ordinary income taxes on any money that you withdraw when the withdrawal takes place.

If you withdraw more than the total eligible expenses in a given year, you are required to pay ordinary income tax and a 10 % federal penalty tax on the earnings portion of any non-qualified distribution.

If you take withdrawals from a variable annuity prior to age 59 1/2, you may have to pay ordinary income tax plus a 10 % federal penalty tax.

When taking employer plan withdrawals before age 59 1/2, you may have to pay ordinary income tax plus a 10 % federal penalty tax.

RSAs, on the other hand, are taxed at grant in Canada, which makes them unpopular because employees have to pay ordinary income tax on money then don't yet have.

When taking IRA or employer plan withdrawals before age 59 1/2, you may have to pay ordinary income tax plus a 10 % federal penalty tax.

Accordingly, just as you would for a withdrawal from a traditional IRA, you must pay an ordinary income tax on the distribution.

You will have to pay ordinary income tax on the conversion (since you got a tax break on the contributions and investment earnings) but there should be no early withdrawal penalty from the traditional IRA.

And in doing so, you pay ordinary income tax on the portion you withdraw.

There are no penalties for withdrawing the money in your account — you will just pay ordinary income tax on the money.

We can withdraw at any time, and just pay ordinary income tax on withdrawals.

When you take the money out in retirement, you pay ordinary income taxes on the amount of the withdrawal.

When taking withdrawals from an IRA before age 59 1/2, you may have to pay ordinary income tax plus a 10 % federal penalty tax.

You'll still have to pay ordinary income tax on the withdrawal.

Under the prior law, Amy would pay ordinary income tax rates on her net commission income.

This will cost you dearly when you go to sell any of your other properties: You'll have to pay ordinary income tax on any gains, even on properties you've held for years.

If all $ 400K is withdrawn over the taxpayer's lifetime, the taxpayer with the traditional IRA will eventually pay ordinary income taxes on the entire $ 400K..

Not exact matches

That means you pay the long - term capital rate (typically 20 %) if you sold it after a year, or the ordinary income rate if you sold it before then.

«But doing that and not paying income tax now could bite you if the IRS treats this as ordinary income.

Under current law, high - income fund partners pay the long - term capital gains rate of 20 percent on their carried interest income, instead of the 39.6 percent individual tax rate that applies to the ordinary wage income of high earners.

If the participant sells the ISO shares prior to the expiration of these holding periods, the participant recognizes ordinary income at the time of disposition equal to the excess if any, of the lesser of (1) the aggregate fair market value of the ISO shares at the date of exercise and (2) the amount received for the ISO shares, over the aggregate exercise price previously paid by the participant.

The stock grants will generally be subject to tax upon vesting as ordinary income equal to the fair market value of the shares at the time of vesting less the amount paid for such shares, if any.

The NUA tax strategy allows certain clients whose qualified retirement plans contain these appreciated employer securities to eventually pay taxes on the appreciated value of those securities at the lower long - term capital gains tax rate, rather than at the ordinary income tax rate that would otherwise apply to retirement plan distributions.

But if [businesses] pay [the saved 39 percent] out in salaries and bonuses, whether to fat - cat executives or ordinary line workers, those people pay the individual income tax on that money.

For short - term capital gains — for assets held for less than a year — people pay taxes at the same rate as they do on their ordinary income.

Ordinary Dividends represent dividends paid by a fund that are derived from interest, dividends, net short - term capital gains and other types of ordinary income earned by tOrdinary Dividends represent dividends paid by a fund that are derived from interest, dividends, net short - term capital gains and other types of ordinary income earned by tordinary income earned by the fund.

Cash distributions and dividends are subject to ordinary income taxes, but still save the 15.3 % that would normally have been assessed if paid as wages.