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I am going to wait and see how well this year turns out, but if my calculations are correct and I get SSI/etc., I am going to save as much as I can to build up my savings back to a better level - even though I will probably be unemployed/retired after the end of this year and on a fixed income.
I was just reading that the stimulus bill has an option where you can pull funds up to $100K from an IRA without penalty or immediate taxes and then you have 3 years to pay it back, before having to pay taxes on it. Of course, what you pay it back with will probably be taxed income? I have not seen the details yet - most of the funds in a conventional IRA are paid from income that you deduct or that have come from a rolled over 401K (that is where my IRAs came from).
So take that into account and talk to a tax accountant; if you pull it out and then put it back in with funds that come from wages or other taxable income, it is possible that you might pay taxes on those funds twice; once when you earn them and put them back into the IRA, and once when you take them back out later the second time.
It seems like you can maybe pull the money out and then declare them as distributions over the next three years. I might do that - and put them into my Roth IRA, I don't know - not sure if it would be advantageous for me to do that - I don't think it would as I don't think I will need the funds this year - probably not next year either. But it is an option.
I was just reading that the stimulus bill has an option where you can pull funds up to $100K from an IRA without penalty or immediate taxes and then you have 3 years to pay it back, before having to pay taxes on it. Of course, what you pay it back with will probably be taxed income? I have not seen the details yet - most of the funds in a conventional IRA are paid from income that you deduct or that have come from a rolled over 401K (that is where my IRAs came from).
So take that into account and talk to a tax accountant; if you pull it out and then put it back in with funds that come from wages or other taxable income, it is possible that you might pay taxes on those funds twice; once when you earn them and put them back into the IRA, and once when you take them back out later the second time.
It seems like you can maybe pull the money out and then declare them as distributions over the next three years. I might do that - and put them into my Roth IRA, I don't know - not sure if it would be advantageous for me to do that - I don't think it would as I don't think I will need the funds this year - probably not next year either. But it is an option.