Category Archives: 401K

Statistical Restaurant

Today TaxMama hears from Patrick in the TaxParlor who has this tale of woe, “In 2001 I withdrew about $70,000 from a 401K plan to open a new restaurant. I had just been laid off from my job and wanted to try something new. I opened a restaurant, and it failed. I ended up owing […]

Double Contributions

Today TaxMama hears from Bill, in New Hampshire, who tells us, “I am employed with a work sponsored 401(k) plan to which I contribute the maximum PLUS the catch-up limit. I am also self-employed with a SEP to which the maximum is contributed. Can the SEP also accept a catch-up contribution? I am over age […]

Retirement Plan OverContributed

Today TaxMama hears from Melanie in Louisiana, who tells us, “We received a 2005 1099 R with a distribution code of P because our 401K at work was “lopsided” . The form said we should file an amended return both state and federal for 2004, which we did by April 15. Now we are receiving […]

Retirement Refund

Today TaxMama hears from Gordon in Maryland who tells us, “I have a problem with a 401K distribution that I rolled over to an IRA in March of 2004. I had this 401K with a previous employer and left the money in the account after I terminated employment with the company. When I saw a […]

Early Withdrawal Penalty

Today TaxMama hears from Cathy in Sunland, CA who tells us, “My husband and I are in our early 40’s. We have managed to get ourselves deeply into credit card debt. I have an old profit sharing plan from an ex-employer that I want to cash out and pay off all our debt. It is […]

Divorce Issues

Today TaxMama hears from Tammy in Texas who tells us, “I got divorced last October. The QDRO account is still in the process of changing over. We split the assets and debts even though I did not have a job. I am trying to pay bills and am unable to pay on the debts from […]

Poor Senior Tax Planning

Today TaxMama brings up her own concern about the way seniors and those who care for them are not taking care of their tax issues. These are the three issues – deducting medical care and knowing what is deductible; drawing your retirement funds; and having a living trust.

W-2 Goof

Hi! It’s TaxQuips time from TaxMama.com. Today TaxMama hears from Glenn in NY who tells us, “I have a question about W-2s and how they are compiled. I ask because there is a discrepancy between my year-end payroll stub and my W-2. The total on my W-2 was roughly $10,000 higher than on my yearly […]

Alimony vs Wages

Today TaxMama hears from Margaret on the Internet, who has this upbeat idea. “I have been divorced for three years with good relations with my ex. We continue to work together in a small family construction business. I am wondering if, in the long run, I would be better off re-categorizing the alimony to W2 […]

Unreported $50,000

Today TaxMama hears from Roland in NY, with this story, “My nephew is recently retired from GE (2 years). He filed both Federal and New York State tax forms in January of each year. Last week New York State sent him a form demanding over $4,000.00 in taxes for the 2003 filing season. They claim, […]

401(k) Penalty

Today TaxMama hears from Don of Starkville, MA wants to know, “I was told that if you were laid off from a job and withdrew your money from your 401K, you did not have to pay the 10% early withdrawal penalty only the federal and state taxes on the money.” and Another reader remarks, “I […]