financial troubles, need advice on early IRA withdrawals.....?

Question

Need some advice on loans and cashing out IRA

i am unemployed and have been for a few months.  I am looking for a job still, but now my lease is up & my boyfriend and i are moving to a new apt. in a few short weeks.   I need to come up with around $1,500.00 FAST.  even if i land a job tomorrow i probably won't earn enough $ in time. 

SO..... i have an IRRA (i rolled over my 401k from a previous employer into the irra)  that i can take an early withdrawal from but there is a 10% penalty on top of the 20% taxes they take out when you withdraw early.  Do i have any other options?  Is there a bank loan i can get being unemployed, or some other way i can handle this?  can i maybe get a loan using my car as collateral or something like that?  I have no idea what to do, i've never been in this type of situation and am DESPERATE for advice.  thank you in advance to anyone willing to share some ideas with me  :)

Scott K · Accepted Answer

You can probably get a second loan on your car if there's lots of equity in there.  As far as the 10% plus 20%, they will only take out the 20%, the 10% won't be assessed until taxes are due in April.  And, you can roll the IRA distribution over into a new IRA or 401K if you do so within 60 days.  Otherwise, maybe a parent can help you out for a couple of months.

howsare · Answer

sure progressed envisioned tax quantities withheld to used as a TAX credit on the excellent line of your 1040 earnings tax return for the duration of the 2014 tax submitting season for the 2013 1040 in good shape return ok. you will acquire a 1099-R after the tip of the 2013 tax twelve months which will the guidance on which you will might desire to apply to precise the taxable volume of the IRA distribution on the 1040 website a million line 15a IRA distributions $ Gross volume and 15b $ Taxable volume and that quantity would be further to all your different 2013 tax twelve months earnings won to make up all the earnings on line 22 of the website a million of the 1040 earnings tax return. and then the ten% early withdrawal penalty $ volume would be entered on the 1040 website 2 line fifty 8 extra tax on IRAs , different qualified retirement plans fifty 8 $ volume ok. Then the withheld TAX credit volume would be entered on the website 2 line 62 Federal earnings tax withheld from W-2 and 1099 62 $ volume ok. wish which you come across the above enclosed guidance smart. 08/09/2013

Trending News

financial troubles, need advice on early IRA withdrawals.....?

2 Answers