Is it possible to set up a IRA account and rollover what I have in my 401k plan at my work, then withdraw the money. I need the money that is in my account, but I can't withdraw early, can't get hardship withdrawals or loans, trying to find a way to access it. Any advice?

You could quit your job - Then they would probably let you roll over the money into an IRA. Then you could withdraw it. - But if you do this (assuming your are under 59 and 1/2 years old) plan paying a 10% penalty to the IRS plus perhaps 2 and 1/2 percent to your state (laws vary from state to state) - plus you will pay pa income tax on the full amount withdrawn. - Overall you would probably lose about 1/2 the money to taxes and penalties and you would be out of work.

Some companies will allow loans from 401K plans, but apparently yours does not if I understand your question correctly. - You can't take a loan from an IRA.

Do banks charge different rates? Is it a rate? or a flat first time fee? to open up an IRA account. Which would be better? Roth or Regular? What's the difference? Appreciate your help!

Many mutual funds charge no first time fee, although there may be an annual maintenance fee on small accounts.

A traditional IRA allows you to deduct the contribution from your taxable income (if your income is below certain limits).

A Roth IRA permits tax free withdrawls (as long as you abide by the withdrawl rules).

How could an IRA account have tax-free growth but not be tax-deductible? Do these not mean the same thing?

I am researching Roth IRA accounts. I found information stating that the money in the account is not tax deductible, but that it does grow tax-free. How is that possible? Do these not mean the same thing?

A regular IRA you contribute to and get deductions for your contribution to it (with certain income limitations depending on whether or not you have a retirement program at work). The earnings in the regular IRA grow tax free until you start taking out from your IRA, then the withdrawals are taxed at your income rate when you retire. A ROTH IRA gives you no deduction for the contribution, and grows tax free, but unlike a regular IRA the withdrawals from it are not taxed. You don't get a deduction for contributing to it, so the IRS doesn't tax you on it once you start getting your money back from it.

Can i rollover money from two 401K accounts to one IRA account?

I had a job change. I found that rolling over money from my earlier 401 k account to roth IRA is not profitable. I am planning to leave the money as is there. And open a new 401 K for this company. Later i would like to transfer all the oney to IRA. Is it possible to tranfer money from two 401 k account to IRA?

If you roll the money from a 401k which I'm assuming is tax deferred, to a Roth, which is not, you will have to pay the taxes. But then the money will grow tax deferred and tax free. Since tax rates are the lowest they've been in decades, you might reconsider this strategy, as Roth's are a much better place to grow your retirement money than any other qualified account.

If your new employer is matching in a 401k, I would advise to invest only up to the match, and then put the balance of the money you can in your Roth and pay the taxes now. If you're a successful investor you will pay far less in overall taxes doing it this way.

Once you leave your company, they must let you roll your 401k monies out of their plan, and to avoid taxes and penalties they must go into a tax deferred IRA type of plan. To avoid penalties, they must go into a Roth type of plan. You can consolidate multiple accounts into one account, provided they are not being administered by your company and subject to their rules.

If you need more into, please email me.

Hi,

I have a stock trading loss last year. I was told you have to withdraw the whole account to do so? That trade already made me lost half the value of that IRA account. Thanks.
For the purpose of filing tax in USA.

If you have a distribution from an IRA it would all be taxable as those funds were not taxed before they were put into the IRA. If the total value of the IRA has fallen due to the down turn in the economy that will have no effect on the tax due on any disbursement. If you are under 59 and 1/2 years old there will also be a penalty for early withdrawal.

Can you have more that one roth IRA account with different companies?

I already have one investment H&R Block and I'm thinking about getting another one with Sharebuilder. Would that be too much or should I just do it with one?

Just stick with one.... Having more than one is allowed. You are still subject to a max combined contribution of $5,000. But wouldn't it just be easier to have 1? They should have access to similar investments.

I have trade some stocks in my traditional ira account in 2007 and have some short term gain. I am also holding a stock for a few years and still a loss in my ira account- I am planning to sell it. Do I have to sell it same year to net out my gain in my portfolio ? what is the tax rate for capital gain in ira account ?

Gains and losses within an IRA have no tax consequences and aren't reported. When you withdraw money, the amount withdrawn is taxed as ordinary income to you.

How do I take my distribution out of IRA account with out paying penalty?

I am a sole-proprietor of a small business corporation (applied for S-corporation election for 2006). I have made a contribution to business retirement account for 2006. After making the contribution, I realized that S-corporations can not make contributions to SEP-IRA.

Now I have to take the distribution out of my IRA. Is there any way to do this with out getting fined by IRS for early withdrawal.

-thanks

If it shouldn't be there to begin with, you will only get penalized if you don't take it out.