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Canuck57[_9_]

On 26/04/2010 9:51 AM, wrote:
On Mon, 26 Apr 2010 06:21:27 -0600,
wrote:

On 25/04/2010 11:10 PM, wrote:
On Sun, 25 Apr 2010 21:18:39 -0600,
wrote:

On 25/04/2010 7:16 PM, wrote:
My real problem is, this will put
us past the evil $250k mark if I try to roll it all at once and the
IRS will come after me.

Pray tell what is the $250K mark? Some penalties? And roll it into
what? IRA? Capital gains amount??

If you make over $250k the Obama tax increases really smack you.

Rolling it to a IRA shouldn't be a big deal but my roll over wasn't over
$250K so I didn't go there. But I don't remember any such limit. The
key is making sure the money shows up in the IRA promptly.

If you have a tax pre person, this is a 1 minute question, I would ask.
I suspect you can roll it over without issue.

Also need to consider vesting if some of it isn't yet vested. In which
case just roll over the vested part.

I want to just pay that tax now, not wait to see what happens later. I
do not believe that BS that the tax will be lower later, particularly
since the tax rate is lower than it ever was. That will change.
I am going to get a good look at my tax position and the value of the
401k later this year and make a decision then. I may split it up, put
some in a Roth, take some out and leave the rest alone till next year.

I will predict they will raise taxes but two things to consider.

First, it will not be for long, it will crater the econonomy. I give it
2-3 years and it will come back down. Especially if you get a cost
cutting repulican in 2012 with a right wing congress with lots of new faces.

Second, in retirement your income and taxes will plumet. No more
employment taxes and what you do pull is taxed in the lower bracket.

Say you had $500k in cash yeilding 5%.
And you had a IRA/401k yeilding 5%.

Then take out $25 cash and $30k IRA/401k, split income with wife and pay
very little taxes as it is mostly dividends and interest. If the greedy
buggers do what they do in Canada, tax back the governemnt pension if
you make over $55k you are sitting in the sweet spot.

One hazard of having investments outside of IRA/401k is it is hard to
predict your taxable income. Say some stock gets bought out and clocks
you with a $80k gain? If the IRA grows, you pull out just to top out
to the lower tax rates.

Mind you, if you plan to leave the USA for the rest of your life and
forget Obamanation, slid it out on Dec 31st and Jan 1st to at least
split it in half over two years. Get much past a upper middle class
income and you can feel the tax screws turn on your head.
--
Socialism and statism are great as long as someone else pays for it.