10 percent penalty

Sometimes It PAYS to Pay a Retirement Account Penalty

Whether it’s in sports, with taxes or in life, we’re programmed to avoid penalties, and that’s usually a good move. Occasionally, however, by simply avoiding penalties, we can be detrimental to ourselves. Indeed, sometimes incurring a penalty on purpose can be the right move. If you don’t believe me, consider the following example.

Can You Use Your IRA to Buy Health Insurance?

We were recently asked whether you can use your IRA to buy health insurance. The short answer to that question is yes, but it will cost you. We explain the tax and penalty implications and possible exceptions for which you may qualify.

Why Double Check Your Retirement Transactions?

Check, double check, and then, maybe, check again. When you are moving retirement funds, make sure they are going to the right account. We have heard so many horror stories through the years. Here's just a few "do-not-do-this" examples.

How to Use Your IRA to Pay for Higher Education

IRS Publication 970 explains the tax benefits that may be available to individuals who are saving for or paying education costs for themselves or certain family members such as children. It includes information on Coverdell Education Savings Accounts (ESAs), qualified tuition programs (also called “529 plans”), student loan interest deductions, education savings bonds, and the education exception to the IRS 10% penalty for early IRA distributions. Read more to find out how you can use your IRA to pay for higher education.

Rolling Over Company Retirement Plan Money You Get in a Divorce

If you are in the midst of getting a divorce or you're already divorced, you might be awarded some or all of your ex-spouse's company retirement plan funds, such as a 401(k) plan, as part of the property settlement. If so, there are a few things you need to know before you get those funds. We detail these below.

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Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.