03-31-14, 10:53 PM | #1 |
BassFishin.Com Active Member
Join Date: Jun 2011
Location: Ozark, Missouri
Posts: 361
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Tax Questions?
Hey everyone! It's that time of year again.
I know I've thrown this out in the past...but I thought I would renew the offer. If anyone has any general tax questions feel free to PM them my way. I would be happy to assist if I can. I'm not advertising; I have enough client work as it is . Just a good will gesture for those that have willingly helped me with my questions/concerns about fishing/boating.
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04-02-14, 06:28 PM | #2 |
BassFishin.Com Super Veteran
Join Date: Mar 2008
Location: Jonesville, Indiana
Posts: 3,597
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I sure do appreciate your kind gesture.
-Mark |
04-03-14, 10:49 PM | #3 |
BassFishin.Com Super Veteran
Join Date: Nov 2004
Location: Pitts. Pa.
Posts: 3,801
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Question for you. I had borrowed against my 401k and have been paying back the loan. I lost my job and changed over my 401. Now there is an outstanding balance on the loan which i was told I will have to pay taxes on for 2014 for the unpaid balance. I applied for Obama care and I am going to be subsidised for my premium. I was asked what my income for 2014 would be and I estimated it. I was told if I go over my estimation I will lose my subsidy and have to pay back the amount of it. So will the balance of the loan and the total withdrawl from my ira this year be considered income for 2014? Thank you.
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04-04-14, 11:36 AM | #4 |
BassFishin.Com Super Veteran
Join Date: Feb 2010
Location: Buchanan,Tn
Posts: 2,685
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I can answer part of it,if the 401 income is used to pay off the loans it is counted as income,best not to default and pay them off with current income,but not always possible.I know this as do have a 401 k and do have outstanding loans.In addition if not of age where one can pull additional taxes are levied.Often these are a secured loan meaning they keep that amount as unreachable by you and as you pay it off returned to the 401k or whatever.Thus if you default they are covered.
My opinion obama care is lacking as a high $ amount you pay prior to them,not like insurance that might pay for an emergency room bill.Almost catastropic like 5k.But that might be adujustable to each applicants income dunno. Last edited by lilmule; 04-04-14 at 11:48 AM. |
04-04-14, 03:25 PM | #5 |
BassFishin.Com Active Member
Join Date: Jun 2011
Location: Ozark, Missouri
Posts: 361
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Hey bassinbob, good question.
Part 1 - Generally, unpaid loan balances must be paid off within two months of discontiuation with the company or they are recharacterized as a distribution. This makes them taxable. If you are under the age of 59 1/2 you may also have to pay a 10%penalty on top of normal taxes for an early distribution. Part 2 - When you went to sign up for Obamacare insurance, I'm sure they asked you about your income amounts so they could estimate your Premium Assistance Credit. This credit is used to offset the cost of insurance for those between 100 - 400% of the Federal Poverty Level (This could be near 90k for families of 4). At any rate, it is plausible that your 401k distribution could bump you into another income band for figuring the credit...but it could not, too. If you didn't get another job right away your income might be lower anyhow so the 401 distribution might not hurt you. I hope I provided enough information to answer your question. PM me if you still have questions and we can discuss by phone if you want. John.
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