OT: One for you tax experts

[dinglefritz]

Reading through all of this....The problem is the complexity of the whole thing. It should never be this f'n difficult.

IF you're a simple 1040 filer, it's not big deal. The problem is all of the deals cut to benefit their buddies including Wall Street. In the farm world they've incentivized ridiculous spending by farmers and ranchers to avoid self employment and income taxes. Most of it wasn't really done to help farmers. It was done to help ag manufacturers similarly to how they gave tax credits to electric vehicle and wind tower purchasers/builders. Now farmers are addicted to the section 179 deduction. It's crazy the things people do to delay paying some tax. Government generally screws up everything with it's good intentions and desire to reward their donors' lobbyers.

 

[cavalot]

IF you're a simple 1040 filer, it's not big deal. The problem is all of the deals cut to benefit their buddies including Wall Street. In the farm world they've incentivized ridiculous spending by farmers and ranchers to avoid self employment and income taxes. Most of it wasn't really done to help farmers. It was done to help ag manufacturers similarly to how they gave tax credits to electric vehicle and wind tower purchasers/builders. Now farmers are addicted to the section 179 deduction. It's crazy the things people do to delay paying some tax. Government generally screws up everything with it's good intentions and desire to reward their donors' lobbyers.

My tiny LLC makes things a bit more complicated. As does what can be deducted and what can't. The tax changes in 16 created more questions for me than the few dollars saved were worth. I lost some deductions along the way that I use to use also. I miss the simple claim 0 and come out even or with a return. I now withhold an extra 300 every month on my W-4 just to try to cover and still end up short. Frustrating to say the least.

 

[WHCSC]

Reading through all of this....The problem is the complexity of the whole thing. It should never be this f'n difficult.

Yep. Seems pretty simple to me. If they’re going to penalize me for taking too much out they should be able to tell me how much is too much!

 

[cavalot]

Yep. Seems pretty simple to me. If they’re going to penalize me for taking too much out they should be able to tell me how much is too much!

I didn't read all of this strand. You got penalized for taking too much out? WTH

 

[WHCSC]

I didn't read all of this strand. You got penalized for taking too much out? WTH

No. I’m trying to find out how much I can take out without penalty.

 

[cavalot]

No. I’m trying to find out how much I can take out without penalty.

I missed the convo on this part. Out of your paycheck or out of an investment?

 

[WHCSC]

I missed the convo on this part. Out of your paycheck or out of an investment?

Out of a Roth

 

[huskerfan66]

Out of a Roth

So catch us up since October. You said you were going in for in person meeting. Results??

 

[cavalot]

Out of a Roth

10% no matter what right? Unless you are 59.5 and have held for 5 years or more.

 

[WHCSC]

So catch us up since October. You said you were going in for in person meeting. Results??

Waste of time. They just told us what paperwork to send in. And the fat slob of a manager was quite rude and disrespectful. They must have snagged him from the DMV.

 

[WHCSC]

10% no matter what right? Unless you are 59.5 and have held for 5 years or more.

No. You can withdraw your contributions without penalty.

 

[cavalot]

No. You can withdraw your contributions without penalty.

So you can take out your principal amount but you get penalized on the interest?

From Chat GPT
Yes, you can withdraw contributions from your Roth IRA at any time without incurring taxes or penalties, as these contributions are made with after-tax dollars.

NerdWallet: Finance smarter


However, withdrawing earnings—the investment gains within your Roth IRA—before age 59½ and before the account has been open for at least five years may result in taxes and a 10% early withdrawal penalty. There are exceptions to this penalty, such as using the funds for a first-time home purchase (up to a $10,000 lifetime limit), covering qualified education expenses, or in cases of disability.

Time

 

[WHCSC]

So you can take out your principal amount but you get penalized on the interest?

From Chat GPT
Yes, you can withdraw contributions from your Roth IRA at any time without incurring taxes or penalties, as these contributions are made with after-tax dollars.

NerdWallet: Finance smarter


However, withdrawing earnings—the investment gains within your Roth IRA—before age 59½ and before the account has been open for at least five years may result in taxes and a 10% early withdrawal penalty. There are exceptions to this penalty, such as using the funds for a first-time home purchase (up to a $10,000 lifetime limit), covering qualified education expenses, or in cases of disability.

Time

Correct