Tax Season

[kbsooner21]

Thanks for the update umreb wife. Please tell him we are wishing for a speedy recovery and give him our best.

[Spark]

Fellows of Bettors Chat. This is the wife of the screen name umreb78. He asked me to come to this specific page for him and to pass on a message to anyone who had asked him a tax question. He was involved in a very bad accident several weeks back and has been in the hospital. He is doing better and wanted me to let anyone interested know that he will hopefully be back on his feet in the next week or so and will address any open tax questions that anybody might have posted for him. Also asked me to say hi to three members here....Might be remembering the names wrong, but he says hi to Sparks, Volunteer, and Weener????

Hate to hear this. I was wondering what happened especially after a few guys were posting and asking questions in here without a response. Very uncharacteristic of him not to respond. Please tell umreb we all hope for a speedy recovery. Thank You for this info and please keep us updated.

[robby_morini]

I have a question to either of you guys. In my divorce last year my ex wife got half my 401k.We had the court order QDRO and she didn't roll the money over. She used the money and paid off all our bills and put the rest in the bank and gave me some also so we could both start off fresh. When she received her check they had already took out federal income tax. Now on her federal taxes it's showing she has to pay a 10% penalty. I know we were subject to a penalty by the bank which was waived cause of the court order. But why the hell is she having to pay the government a penalty after she already had the taxes took out?

Vols, I just saw this, and you probably have already received an answer, but just in case you haven't.

When you contributed to your 401k through the years, it was done on a pre-tax basis. Your company deducted your contribution before you were taxed, reducing your taxable income. The IRS allows this, hoping it will be incentive for people to save for retirement. Your employer probably matched a certain percentage of your contribution. If you withdraw a portion before you are 59 1/2, the IRS recaptures 10% of the amount withdrawn. There are instances of hardship where this 10% penalty can be waived; typically medical or financial emergencies.

The amount withdrawn is also treated as taxable income just like any other income earned.

Hope that helps, and things are going well for you.

[wayne1218]

Fellows of Bettors Chat. This is the wife of the screen name umreb78. He asked me to come to this specific page for him and to pass on a message to anyone who had asked him a tax question. He was involved in a very bad accident several weeks back and has been in the hospital. He is doing better and wanted me to let anyone interested know that he will hopefully be back on his feet in the next week or so and will address any open tax questions that anybody might have posted for him. Also asked me to say hi to three members here....Might be remembering the names wrong, but he says hi to Sparks, Volunteer, and Weener????

Horrible. Wish him our best!!!

[griffey_mojo]

Get well soon Umreb