Username or Email Address
Do you already have an account?
Forgot your password?
  • Log in or Sign up

    VWVortex


    Results 1 to 4 of 4

    Thread: liquidation of an IRA..

    1. Member
      Join Date
      Oct 23rd, 2011
      Location
      MAINE USA
      Posts
      123
      Vehicles
      07 Passatwagon 2.0t (Out to pasture 02 Jetta, 89 jetta, 85 golf)
      04-01-2012 08:53 AM #1
      Over the course of a few years I've accumulated a small IRA (it was a 401)
      to the tune of only $3000. I no longer am employed by this company.

      Its an insignificant amount of money I feel and was considering liquidating but was unsure the taxing/penalty of this situation given its an early withdrawal.

      My thoughts from what I gathered.

      10 % IRS early withdrawal.
      Also subject to gains tax. (which shouldn't be much)
      Fee's etc about $25.
      My tax bracket 25%
      State tax? not applicable I believe, but may be wrong.

      Can any one sum this up and possibly show me the bottom line or even a fair estimate.
      Again, Im not interested in other investment ideas-only would like to clarify on this topic. Thanks

    2. Member sdpauly's Avatar
      Join Date
      Apr 3rd, 2004
      Location
      San Diego
      Posts
      1,748
      Vehicles
      2010 135i, 2008 Taco
      04-01-2012 11:39 AM #2
      Why not just keep it and start building on it?

      Having an IRA can be pretty useful. I do all my stock trading in my IRA account and never have to worry about taxes for selling stocks. I keep my IRA with Ameritrade and I can buy and sell individual stocks online and not have to deal with holding a stock longer than I might want for tax reasons...

      Most IRA accounts allow for a free rollover, so if you dont like the bank that your current IRA is with, you can just open a new IRA with a broker of your choice and then roll it over for free.

      I'd say, unless you really really really need the money right now, you're better off keeping it. If you did cash out right now, you'd probably only get about half or less of that 3k.
      "Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats." -H. L. Mencken

      The most important thing you might ever watch: http://www.youtube.com/watch?v=ZPWH5TlbloU

    3. Member
      Join Date
      Feb 12th, 2001
      Location
      douglasville, GA
      Posts
      2,520
      Vehicles
      92 vw corrado
      04-01-2012 01:01 PM #3
      Quote Originally Posted by turbopoweredturtle View Post
      Over the course of a few years I've accumulated a small IRA (it was a 401)
      to the tune of only $3000. I no longer am employed by this company.

      Its an insignificant amount of money I feel and was considering liquidating but was unsure the taxing/penalty of this situation given its an early withdrawal.

      My thoughts from what I gathered.

      10 % IRS early withdrawal.
      Also subject to gains tax. (which shouldn't be much)
      Fee's etc about $25.
      My tax bracket 25%
      State tax? not applicable I believe, but may be wrong.

      Can any one sum this up and possibly show me the bottom line or even a fair estimate.
      Again, Im not interested in other investment ideas-only would like to clarify on this topic. Thanks
      Only 3k now can be a whole lot later. Roll it into an Ira in a decent fund and forget abut it. You are gonna clear under 2 k at best. 1500 may be closer. Leave it and let it grow. You can save 2k in no time if you try.

    4. Member
      Join Date
      Oct 23rd, 2011
      Location
      MAINE USA
      Posts
      123
      Vehicles
      07 Passatwagon 2.0t (Out to pasture 02 Jetta, 89 jetta, 85 golf)
      04-01-2012 04:56 PM #4
      thanks for the breakdown everyone. Yeah I'll leave it alone for now. Goodday

    Posting Permissions

    • You may not post new threads
    • You may not post replies
    • You may not post attachments
    • You may not edit your posts
    •