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Video instructions and help with filling out and completing Where Form 8815 Cashing

Instructions and Help about Where Form 8815 Cashing

I'm cashing out my IRA early to start my business have I gone crazy what about the penalties what about the taxes we're gonna dive right into that here today cuz I'm gonna show you exactly what I'm doing and we'll show you some of the ramifications of this as well from the tax perspective that I think you might find interesting so this before they can't wait so don't forget to subscribe down below obvious Tom's up comments the whole thing helps me a lot here at Heritage wealth planning YouTube channel so you see I got my fresh cut here one of the ways you saved money my friends is getting your spouse to cut your hair I'm telling you right now look at that perfect 15 minutes of time juju and we're good to go and know what 15 bucks the five dollar tip to those good ladies who do your hair at the barbershop so let's dive right in there sorry so the premises I was making pretty good money I mean I've been making well over a hundred thousand a year for going on ten years now making good money the commute was killing me so I quit my last job at USAA in 2022 it really sparked 2022 because of communal and it was just driving me crazy I took a job with an RI a registered investment advisor up in Kingsport Tennessee and I just we did that was gonna work and then I took another job with a RI a up in New Hampshire cuz I'm from Maine originally I thought it might be kind of cool moved back to Northeast it's just my I just can't work for somebody else I I need to do it myself because it was just too much I need to share with the world was not the world was a hero there's up to you but anyway working for another firm just I have just as I get older I realize I can't do that anymore so and both those firms are getting paid well for sure no other way around that but I just I couldn't do it so I said you know you only live once let's let's rock and roll I got a live as saved up in my 401 K which is now an IRA let's just make it let's make it rain or we'll go broke one of those two things my wife was on board we like where we live the kids are well-established at school my oldest is going to Georgia tax that we didn't want to move and want to commute and we're gonna make it go out this but the problem of course is when you're 48 years old and you got your money in an IRA got no other income coming in we still got bills we still got a mortgage the whole thing so you can be pulling money out of your IRA to cover those expenses and that money will be a taxable as income for sure ordinary income and B it'll be a ten percent premature withdrawal alright because you're taking out before you're 59 half and before one of the exceptions now I don't know the exact exception when it comes to taking money I have an IRA to pay for Cobra I just don't know so there might be more benefit something to show you here we will probably dive into that in a different episode we might do this in two or three episodes actually because I tell you man it is I love I love doing this I love it I love being self-employed I love doing my own thing I've Tony right now is worth it'll be worth the taxes I surely here in just a second so alright let's dive right into this and again there might be some things I'm missing in terms of you know using your IRA money to pay for health insurance premiums if that's a that's not subject to the penalty that's fantastic I think it might be actually I think that might be part of the exemption or the qualified exceptions I just don't know but you know other things too business expenses you know I don't know I'm not I'm we're just doing simple the clean simple as we possibly can we have IRA and we have income we need all right that's it we have no income coming in but where we expenses we have an IRA and we got expenses the Irate will have to be withdrawal to meet those expenses what are the ramifications all right so let's just give it brief kind of look at this here real quick and this obviously I'm using Bob and Jane YouTube this multi me specifically but you get the gist we got Bob and Chan YouTube let's show you the profile here real quick they got with 250,000 roughly in Jane's IRA all right so I got 250,000 genes i erase a tax deferred account and we just have a vanguard life strategy Growth Fund and for this it doesn't matter we got a house at four hundred thousand bucks is Louie that's it it's paid for so no no mortgage or anything just we're just using as simple as we can we don't have any goals all right no goals at all other than retiring at 67 don't care about any of this right now the income we have is nothing we got no income coming in as you can see there no income coming in it's Bob salary big fat goose egg Jane saw a big fat goose egg so we got no income coming in right now at all we have savings we're not putting any money away because we don't have any income coming in we have no player plan and I here's the expenses $5,000 for pre retirement living expenses that's all.

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