Not exact matches
«These accounts are built to give people
tax benefits in saving for college and people who aren't using them are missing out on those
tax benefits and
potentially have
less money for college when it comes time to
pay for that,» said Stuart Ritter, a certified financial planner with T. Rowe Price.
Seen as a family unit, the net
tax paid by such couples would be
potentially thousands of dollars
less.
This is much better tax-wise because it means you'll spread the income out over two years and (
potentially)
pay less in
taxes than receiving it in one year.
You could
potentially pay less in
taxes by using a net unrealized appreciation (NUA) strategy.
The amount of the WEP benefit reduction depends on the year you turn 62 (eligibility year) and the number of years in which you had «substantial earnings» and
paid into Social Security, with the maximum reduction
potentially applying for those who
paid Social Security
taxes for 20 years or
less (see table).
If transferring an existing retirement plan into an IRA, you should be aware that (i) Those assets will no longer be subject to the protections of ERISA (if applicable)(ii) depending on the investments and services selected for the IRA, you may
pay more or
less in transaction costs than when the assets are in the Plan, (iii) if you are between the age of 55 and 59 1/2, you would lose the ability to
potentially take penalty - free withdrawals from the plan, (iv) if you continue working past age 70 1/2 and transferred your plan assets to a new employer's plan, you would not be subject to required minimum distribution and (v) withdrawing assets directly would be subject to federal and applicable state and local
taxes and possibly be subject to the IRS penalty of 10 % if under age 59 1/2.
The immediate
tax hit on the withdrawal means you've got
less — and
potentially much
less — than 100 cents on the dollar to
pay down debt.