Tweet
I have a SIMP LE IRA from a job roughly 8 years ago. Has about $900 in it (company began it right before I left). It has steadil decreased in value over last 5 years. Want to cash it out. What should I withhold for tax purposes. Money is just sitting there and not growing. PLEASE HELP
-
-
The custodian will withhold 20%, but that doesn't mean you won't owe more at tax time. There is a federal penalty of 10% on top of federal income tax. Do you know what tax bracket you are in? Additionally, you may owe state income taxes and penalties.Originally posted by mhathcoat View Post
I suggest you roll it over to a quality custodian, such as Vanguard, and invest it in a good diversified fund, such as a target retirement fund.
(The minimum at Vanguard is 1k. If you are still working, you can simply contribute an additional $100 to meet the minimum.) -
Don't cash it out. Roll it over. Even rolling it into a CD would be better than cashing it out.
I'm curious how it is invested if it has been steadily losing value for 5 years.Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
-
I would roll it over into an IRA with a good custodian like Vanguard. Then I would invest it in a target date fund based on your estimated retirement date. Don't take possession of the money or you will be on the hook for taxes and penalties. Have it transferred from institution to institution.Comment
-
Most mutual fund companies want an opening balance of at least 1k. I would just roll into an IRA at a local bank until I decide what to do later.Originally posted by chrisburke21 View PostComment
Comment