All things STOCKS

#5,251
#5,251
Go aeiou said:
Depends. All 401k s are not the same.
Was he retired and receiving payments?

Do you know what the tax burden will be if you take a lump sum? Might be the easiest thing to do. Tax rates are not likely to be this low in the future,

You are almost certainly going to need someone locally to help you if you are talking about a very large sum of money. The folks at the 401k and pension should offer different options if possible.
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I agree with seeking local help. I've never been in this situation, but my limited understanding is that non-spouses have more limited options when inheriting a 401k. @Thunder Good-Oil may have some input here.
 
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#5,253
#5,253
VolnJC said:
Wanted to see if any of you guys could give us some advice..my FIL passed away recently and my wife is set to inherit his pension and 401k...we don't really need the money as we live pretty simply and are debt free...I'd rather not take a tax hit and I was wondering if there is something we could do to defer it..I'd rather it be there in the future for her and in case my autistic son won't be able to take care of himself
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I want to say the SECURE Act means your wife has 10 years to withdraw the entire balance. Don't quote me on that since there are exclusions in every set of circumstances.
 
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#5,257
#5,257
TheColdVolTruth said:
I agree with seeking local help. I've never been in this situation, but my limited understanding is that non-spouses have more limited options when inheriting a 401k. @Thunder Good-Oil may have some input here.
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I can't really add anything. Go aeiou knows the tax code far better than I do. I just pick up on things that are relevant to things that I encounter. Stepped up cost basis is awesome. So are Roth arrangements. Annuities are pushed as tax advantaged but they really aren't very good for taxes... gains are ultimately taxed as ordinary income by the annuitant or the beneficiaries. The stepped up cost basis rule blows away deferred taxes inside of an annuity.
 
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#5,259
#5,259
Some pretty large insider purchases last week reported on Friday for SLGG. Extremely low float, views on their channels up over 1000% over last year. Earnings after hours on Tuesday. Anyone have any thoughts on this?
 
#5,260
#5,260
bignewt said:
Trying to figure out what this payroll tax break means...
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Problem is the POTUS doesnt know what it means. It's just a deferral of payroll taxes until the end of the year. If there is no legislation enacted to forgive those taxes, tens of millions of Americans will have a huge tax bill on 1/1/21.

Obviously, this EO is just a negotiating ploy by DJT but just on face value, it is beyond stupid.
 
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#5,261
#5,261
BigOrangeMojo said:
Problem is the POTUS doesnt know what it means. It's just a deferral of payroll taxes until the end of the year. If there is no legislation enacted to forgive those taxes, tens of millions of Americans will have a huge tax bill on 1/1/21.

Obviously, this EO is just a negotiating ploy by DJT but just on face value, it is beyond stupid.
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Take it to the Political Forum please.
 
#5,262
#5,262
Thunder Good-Oil said:
Take it to the Political Forum please.
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Ok, I will state it with non political wording

There will be no certainty for employees. They will not know whether or not they will have to pay back these deferred taxes on 1/1/21. If they dont have certainty, they wont spend as much and the impact will be muted. If they dont forgive these taxes, you will have a huge hole in the economy on 1/1/21.

The last thing this market needs is more uncertainty. That's why it's a stupid idea.
 
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#5,263
#5,263
BigOrangeMojo said:
Ok, I will state it with non political wording

There will be no certainty for employees. They will not know whether or not they will have to pay back these deferred taxes on 1/1/21. If they dont have certainty, they wont spend as much and the impact will be muted. If they dont forgive these taxes, you will have a huge hole in the economy on 1/1/21.

The last thing this market needs is more uncertainty. That's why it's a stupid idea.
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Do we know with certainty that there aren't disclosures with payments warning of a potential tax liability? When applying is there an option to have taxes withheld?
 
#5,264
#5,264
BigOrangeMojo said:
Ok, I will state it with non political wording

There will be no certainty for employees. They will not know whether or not they will have to pay back these deferred taxes on 1/1/21. If they dont have certainty, they wont spend as much and the impact will be muted. If they dont forgive these taxes, you will have a huge hole in the economy on 1/1/21.

The last thing this market needs is more uncertainty. That's why it's a stupid idea.
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Medicare and SSA are about 7.65 %. So taxes get deferred for people who are working. Does not make any sense at all. They have jobs and income. It sounds more like an idea to do away with SSA and Medicare in the future.
Unfortunately many people will spend that money on cars, vacations, etc, and not think about the need to pay it later.
I like Cutting the unemployment payment to $400, but I live in a fairly poor state (TN). Higher income states have a greater need for more.

Most people are not suffering greatly in this period. Those without jobs need the help.
 
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#5,267
#5,267
BigOrangeMojo said:
I want to say the SECURE Act means your wife has 10 years to withdraw the entire balance. Don't quote me on that since there are exclusions in every set of circumstances.
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Yep the stretch IRA went out the window 12/31/19. You would have 10 years to draw it down. Don’t know the wife’s age or retirement plan status but you could possibly shield some of the distribution by putting it straight back into an IRA. If traditional is not an option you may consider a Roth to avoid paying taxes again if you choose to invest it. Maxing your HSA contribution would also work if that’s something you have.
 
#5,269
#5,269
BigOrangeMojo said:
Ok, I will state it with non political wording

There will be no certainty for employees. They will not know whether or not they will have to pay back these deferred taxes on 1/1/21. If they dont have certainty, they wont spend as much and the impact will be muted. If they dont forgive these taxes, you will have a huge hole in the economy on 1/1/21.

The last thing this market needs is more uncertainty. That's why it's a stupid idea.
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He’s already said it would be forgiven if he wins re-election
 
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