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Q: Why does The 68-95-99.7 percent Rule only apply to normal distributions?
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How does the 5 year rule for qualified distributions apply can the original 68K be withdrawn without tax or penalty at any time after that as a nonqualified distribution or will a 10 percent penalty?

We will make a guess that this is a question about the qualified distributions and nonqualified distributions from a ROTH IRA account. Age 59 1/2 also will be a factor that will apply to the 10% early withdrawal penalty.The below information is available by going to the IRS gov website and using the search box for Publication 590 (2009), Individual Retirement Arrangements and go to chapter 2Are Distributions Taxable?You do not include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth Ira's. You also do not include distributions from your Roth IRA that you roll over tax free into another Roth IRA. You may have to include part of other distributions in your income. See Ordering Rules for Distributions , later.Is Roth Distributions a Qualified Distribution?Additional Tax on Early DistributionsIf you receive a distribution that is not a qualified distribution, you may have to pay the 10% additional tax on early distributions as explained in the following paragraphs.Distributions of conversion and certain rollover contributions within 5-year period. If, within the 5-year period starting with the first day of your tax year in which you convert an amount from a traditional IRA or rollover an amount from a qualified retirement plan to a Roth IRA, you take a distribution from a Roth IRA, you may have to pay the 10% additional tax on early distributions. You generally must pay the 10% additional tax on any amount attributable to the part of the amount converted or rolled over (the conversion or rollover contribution) that you had to include in income. A separate 5-year period applies to each conversion and rollover. See Ordering Rules for Distributions , later, to determine the amount, if any, of the distribution that is attributable to the part of the conversion or rollover contribution that you had to include in income.Ordering Rules for DistributionsIf you receive a distribution from your Roth IRA that is not a qualified distribution, part of it may be taxable. There is a set order in which contributions (including conversion contributions and rollover contributions from qualified retirement plans) and earnings are considered to be distributed from your Roth IRA.


To apply a Percent style format to a cell using shortcut keys press?

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When can a wife access a husband's IRA without penalty when he has passed away?

Generally, early distributions from an IRA are subject to a 10-percent tax in addition to the regular income tax on your total income. Early distributions are amounts that are distributed before you reach age 59 1/2. There are several exceptions to the age 59 1/2 rule. The beneficiary of a deceased IRA owner is exempt from the additional 10 percent tax. If you choose to treat the IRA as your own, other requirements apply. For more information, go online at www.irs.gov/formspubs. Select Publication Number. Type 590 to read/print Publication 590 (Individual Retirement Arrangements). Another helpful source is Tax Topic 557 (Tax on Early Distributions from Traditional and Roth IRAs), available online at www.irs.gov/taxtopics.


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What percent increase is 12 to 18?

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Is there a a problem using a 401 k for a down payment on a house?

Everything in life is a problem! Understand that presuming it is a first time purchase and qualifies, all it qualifies for is to NOT have the extra surcharge or penalty for withdrawal. It is still income when withdrawn, so you have to take out much more than your down payment. It could certainly be enough income to move you to a higher bracket that year. The retirement savings, and the ability to have tax deferred savings with that earnings, are essentially lost. To discourage the use of pension funds for purposes other than normal retirement, the law imposes an additional 10% tax on certain early distributions of these funds. Early distributions are those you receive from a qualified retirement plan or deferred annuity contract before reaching age 59 1/2. The term "qualified retirement plan" means: * A qualified employee plan such as a 401(k) plan, * A qualified employee annuity plan, * A tax-sheltered annuity plan for employees of public schools or tax-exempt organizations, * An IRA other than an education IRA, or * If you have an early distribution from a SIMPLE IRA plan within the first 2 years of participation in the plan, the additional tax is 25%. Distributions that are not taxable such as distributions that you roll over to another qualified retirement plan are not subject to this 10% tax. For more information on rollovers, refer to Topic 413. There are certain exceptions to this penalty. The following five exceptions apply to distributions from any qualified retirement plan: # Distributions made to your beneficiary or estate on or after your death. # Distributions made because you are totally and permanently disabled. # Distributions made as part of a series of substantially equal periodic payments over the life expectancy of the owner or life expectancies of the owner and the beneficiary. If these distributions are from a qualified plan other than an IRA, you must separate from service with this employer before the payments begin for this exception to apply. # Distributions that are equal to or less than your deductible medical expenses, that is, the amount of your medical expenses that is more than 7.5% of your adjusted gross income. You do not have to itemize to meet this exception. For more information on medical expenses, refer to Topic 502. # Distributions made due to an IRS levy of the plan. The following additional exceptions apply only to distributions from a qualified retirement plan other than an IRA: # Distributions made to you after you separated from service with your employer, if the separation occurred in or after the year you reached age 55, # Distributions made to an alternate payee under a qualified domestic relations order, and # Distributions of dividends from employee stock ownership plans. The following exceptions apply only to distributions from IRAs: # Distributions equal to or less than your qualified higher education expenses, # Distributions made to pay for a first-time home purchase, and # Distributions made to pay health insurance premiums if you are unemployed. Refer to Topic 557 for information on the tax on early distributions from IRAs. For more information, refer to Publication 575, Pension and Annuity Income. The 10% tax is reported on the appropriate line of Form 1040 (PDF) . You must also file Form 5329 (PDF),Additional Taxes on Qualified Plans (Including IRA's) and other Tax-Favored Accounts if: # Your distribution is subject to the tax, and distribution code "1" is not shown in the appropriate box of Form 1099-R (PDF), or # One of the exceptions applies but the box labeled "Distribution Code(s)" does not show a distribution code of "2", "3", or "4". On the other hand, you do not need to file Form 5329 if your distribution is subject to the tax and a distribution code of "1" shows in the appropriate box. In this case enter the 10% tax on the appropriate line of Form 1040 and write "no" on the dotted line next to the appropriate line. Distributions from a qualified retirement plan are subject to federal income tax withholding; however, if your distribution is subject to the 10% additional tax, your withholding may not be enough. You may have to make estimated tax payments


I my education qualification is eighth pass and age 21year. can i have eligible for ECNR status on passport if apply?

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