RitaB Posted March 17, 2014 Report Share Posted March 17, 2014 "But they already held out the penalty." Me: Yes, they held out 20%. Half of that covers the 10% penalty. The other half does not cover the income tax at 25%. I wish people who withdraw retirement funds early to have fun money could be hooked up to a ..... Never mind. 10 Quote Link to comment Share on other sites More sharing options...
HV Ken Posted March 17, 2014 Report Share Posted March 17, 2014 I wish their financial advisors would tell them about the tax consequences when they pull the money out. Instead, we end up being the bad guy.... 7 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 17, 2014 Report Share Posted March 17, 2014 ...and some of them do understand but pretend that they don't so that they can yell at someone for their stupidity besides themselves. 2 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 17, 2014 Author Report Share Posted March 17, 2014 Yeah, and I hope that Harley Davidson keeps him warm at night now that he is paying his tax bill with his Discover card. I really have no sympathy for people who don't consult us when they come up with these ideas. And I can't wait to see what my retired Chemist, not 59 1/2, decided to do after he DID consult me about taking money out of his IRA. He didn't like what I said, and I'll betcha he took it out anyway. They like to travel. Well, so do I, but I work instead. I'm grouchy. 2 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 18, 2014 Report Share Posted March 18, 2014 Increase in fees.... Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 18, 2014 Report Share Posted March 18, 2014 I had one today. Of course, their world is coming to an end. "Nothing ever goes right for us", etc. They had 10% withheld from Fed and 0 from state. Well, that takes care of the Fed penalty and nothing else. This is not a good time to deal with stuff like that. My x-boss, the dentist, came in today to pick up his tax return. He told me that I work too hard. Funny, he never told me that when I worked for him; although I do know that he appreciated me. I just finally had to step away from that job. This one is more than enough for anybody. 4 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 18, 2014 Report Share Posted March 18, 2014 It's that time of the year....oh, so very different than "the January crowd". I'll never forget my first year...when I worked for someone. Interest rates had risen, and an older woman just couldn't understand why her estimates didn't cover her taxes. She kept saying I was wrong....because she had paid what she was told. I told my boss to explain it........ Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 18, 2014 Report Share Posted March 18, 2014 When people have to pay more tax because their investments performed well, I always tell them they should be happy. Every now and then it actually works. 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 18, 2014 Report Share Posted March 18, 2014 I've got two whose investments have been stellar this year. One sold some land at a big loss, but that didn't help with the dividend & rental income. It gave me a chance to talk about muni bonds, one of the only areas she's not invested in, but also a chance to compliment her investing prowness, and diversified portfolio. She does all the trading herself. Yes, a client that UNDERSTANDS! 6 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 18, 2014 Author Report Share Posted March 18, 2014 When people have to pay more tax because their investments performed well, I always tell them they should be happy. Every now and then it actually works. I had one old fart complain about paying $319 to TN on her investment income. That's 6% of the amount over $2500. She said, "The Lord giveth and the Lord taketh away. I should just put the money under the mattress." Yes, I said this: "Well the Lord gave you $7817 this year, and the TN Dept of Revenue took $319 of it. Yeah, I think a mason jar in the back yard would show em both." 7 Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted March 18, 2014 Report Share Posted March 18, 2014 I just had to talk my step-daughter out of quitting her job and using her 401K. She wasn't even going to ask me,she had no idea that she couldn't take it out without being penalized. I told her that having a job that is making her sick is not one of the exceptions to the penalty, she needs to find another job before she quits. 3 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 18, 2014 Report Share Posted March 18, 2014 Yeah, I love the "But, I PAID the taxes already" when they take out retirement funds. 2 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 18, 2014 Report Share Posted March 18, 2014 I just had to talk my step-daughter out of quitting her job and using her 401K. She wasn't even going to ask me,she had no idea that she couldn't take it out without being penalized. I told her that having a job that is making her sick is not one of the exceptions to the penalty, she needs to find another job before she quits. Paying a penalty is a lot better than having a job that makes you sick...IMHO. Quote Link to comment Share on other sites More sharing options...
Carolbeck Posted March 18, 2014 Report Share Posted March 18, 2014 ...and some of them do understand but pretend that they don't so that they can yell at someone for their stupidity besides themselves. Especially if they had done it repeatedly over a couple years. And they completely forget about the State wanting their cut too...But hey it is always our fault for being the messenger. 1 Quote Link to comment Share on other sites More sharing options...
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