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A bit of tax information

RosieRosie Member Posts: 14,524 ✭✭✭
edited April 2011 in General Discussion
Most of you probably know this but I didn't. If you make IRA contributions after you retire and are not working at all you will be taxed 6% EACH year for the excess. I just had to withdraw a sizable amount from my IRA and put it in Cd's. Tax people caught it not me. Same thing for the wife also. Had to do the same with hers.

Comments

  • idsman75idsman75 Member Posts: 14,524
    edited November -1
    Yep. Can't make contributions unless you're working. Your contributions must be equal to or less than your income.

    http://individual.troweprice.com/public/Retail/Retirement/IRA/Traditional-IRA
  • gruntledgruntled Member Posts: 8,402
    edited November -1
    Then comes the time when you have to start withdrawing. The really nasty part is that it is considered income in figureing the tax on your Social Security. I wish we had lived off our IRAs & started taking Social Security later. We now pay tax TWICE on our IRAs. The money we pay on the money withdrawn plus the extra tax on our Social Security. What really burns me is the marriage penalty. If we got a divorce neither one of us would pay any tax on our Social Security.
  • MobuckMobuck Member Posts: 11,565 ✭✭✭
    edited November -1
    Nice info but how does that help if one is waiting for the next retirement check so he can go buy groceries?
  • RosieRosie Member Posts: 14,524 ✭✭✭
    edited November -1
    Then that person should have saved more or worked harder so he could get a bigger SS check or pension, or go back to work.[:)] OH I forgot. Social Security are bad words on here to many who think they will never need it.
  • wpagewpage Member Posts: 10,191 ✭✭✭
    edited November -1
    Social Security is a bad word for those young folk who believe it will be fleeced B4 they ever get near collecting what they put in.

    The IRA rules are more casino rules for wall street players. Wall street pays the politicos and the IRS makes it complex.
  • RosieRosie Member Posts: 14,524 ✭✭✭
    edited November -1
    wpage
    People were singing that old song when I was 18 years old and I'm now 69 and still hearing it. I have recieved over $124.000.00 in the last 5 years from SS. I'll take that anytime.
  • us55840us55840 Member Posts: 31,645 ✭✭✭✭
    edited November -1
    OR $2,066.666 a month.
    "This country, with its institutions, belongs to the people who inhabit it. Whenever they shall grow weary of the existing government, they can exercise their constitutional right of amending it, or exercise their revolutionary right to overthrow it." Abraham Lincoln
  • idsman75idsman75 Member Posts: 14,524
    edited November -1
    Casino rules? I'm just a dumb Soldier and the recession hasn't hurt me one bit. Guess I just got lucky? No. I educated myself and didn't pay some over-paid so-called 'professional' to give me advice.
  • RosieRosie Member Posts: 14,524 ✭✭✭
    edited November -1
    I was a soldier to IDS but when you have several incomes among some other things it begins to get complicated. Could I do it? Sure I can but why should I spend the time and aggravation when all they charge is 90 bucks? Was paying 200 until I retired and then they dropped it to 90. Not only that but they have to take a refresher course every year to keep up with changes. Or at least a seminar.
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