Karen Lee Posted October 22, 2012 Report Posted October 22, 2012 Someone told my client that his early distribution is not subject to penalty because he started a new business with the distribution. I cannot seem to find anything to substantiate that claim. I say that it is subject to penalty. If one of you says "you're right, Karen" I'll take some additional medication so I don't have a heart attack and believe what I read in the MTG. Let me know Thanks Karen Quote
Lion EA Posted October 22, 2012 Report Posted October 22, 2012 Have Someone prepare his tax return! 1 Quote
Bart Posted October 22, 2012 Report Posted October 22, 2012 Who is this Someone? Let him get his wrong tax advice from them. 1 Quote
jainen Posted October 23, 2012 Report Posted October 23, 2012 >>Someone told my client that his early distribution is not subject to penalty because he started a new business<< I believe that is true--somebody did him tell him that! Or at least he honestly believes that somebody told him. What he was probably actually told was that it was POSSIBLE to withdraw 401(k) money under a very loose application of the hardship exception. Possible, but still subject to normal tax and penalty. Or it could be that odd tax shelter of rolling the employer 401(k) into a solo 401(k) at your own company, so you can invest your retirement funds in your own company. Maybe that's what someone told him to do. Quote
mcb39 Posted October 23, 2012 Report Posted October 23, 2012 Someone told my client that his early distribution is not subject to penalty because he started a new business with the distribution. I cannot seem to find anything to substantiate that claim. I say that it is subject to penalty. If one of you says "you're right, Karen" I'll take some additional medication so I don't have a heart attack and believe what I read in the MTG. Let me know Thank Karen "You're right, Karen!" 1 Quote
Terry O Posted October 23, 2012 Report Posted October 23, 2012 My personal favorite - - -"the guys at the bar told me - - - -" sigh :scratch_head: 1 Quote
Jack from Ohio Posted October 23, 2012 Report Posted October 23, 2012 "My upline told me so it has to be true" Is the top of my favorites list. 1 Quote
Pacun Posted October 23, 2012 Report Posted October 23, 2012 I don't want you to reach for your medicine. Karen, you are right. Two people said it so you don't have to take any pills. Quote
Karen Lee Posted October 23, 2012 Author Report Posted October 23, 2012 Thank you all!! I'm off to the medicine cabinet. Quote
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