TAX TIP OF THE DAY... pay less tax on early retirement
Taxpayers are usually penalized on early retirement distributions before age 59 1/2... sometimes up to 50%!!! But there are many exceptions and tricks that can help you out.
Here are 8 of my favorite "tricks" too minimize the penalty:
1) Rollover funds to an IRA first. IRAs have more exceptions.
2) use funds for college expenses
3) use funds for excessive medical, dental, vision
4) use funds to help with certain home purchases
5) treat as a non-taxable loan by returning the funds within 60 days
6) treat as part of an annual distribution plan of at least 5 years
7) take credit for YOUR OWN CONTRIBUTIONS - PA & Local
8) elect to pull out your contributions FIRST - PA & Local
SHARE WITH A FRIEND.
If you need any help... www.baboiancpa.com