US Income Tax Clarification

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Nov 28th 2013, 1:16 am

#16

e3geek

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Re: US Income Tax Clarification

Quote:

Originally Posted by durham_lad

Probably have to pay a 10% penalty as well as the tax.

http://www.brightscope.com/financial...sh-out-my-401k

I mean by rolling over to IRA or Roth of something?

Nov 28th 2013, 2:09 am

#17

durham_lad

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Re: US Income Tax Clarification

Quote:

Originally Posted by e3geek

I mean by rolling over to IRA or Roth of something?

A rollover is penalty free. If you roll it to a ROTH IRA you'll have to pay taxes at your marginal rate for the year you do the rollover, otherwise you pay no tax on a rollover to a regular IRA.

Nov 28th 2013, 2:36 am

#18

e3geek

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Re: US Income Tax Clarification

Quote:

Originally Posted by durham_lad

A rollover is penalty free. If you roll it to a ROTH IRA you'll have to pay taxes at your marginal rate for the year you do the rollover, otherwise you pay no tax on a rollover to a regular IRA.

And then if I cash out the IRA/Roth do I pay penalties then?