Another lean BUZZ.
* Jason Dinesen talks about “Retirement Withdrawals, Home Purchases and the 10% Early Withdrawal Penalty” at DINESEN TAX TIMES.
JD correctly point out (highlight is mine) -
“If you take money out of a retirement account to buy a house (for example to make a down payment), you can avoid the 10% early withdrawal penalty … but only on IRA withdrawals.”
I had a client years ago who took the down payment for a qualifying new home from his 401(k) – and got hit with the 10% penalty. If he had instead rolled over the amount needed, or at least the $10,000 maximum allowance, to an IRA account first and then taken the distribution from the IRA he would have avoided the penalty.
* A reminder from the TURBO TAX BLOG – “Self-Employed? Don’t Forget About the Estimated Tax Deadline”.
Not just the self-employed.
* Robert W Wood of FORBES.COM explains “Opportunity Zone Investing Can Cut Your Tax Bill”.
THE LAST WORD
While on my too long overdue post-tax season trip to the Jersey shore I read the political thriller “The President is Missing” by James Patterson and Bill Clinton (yes, that Bill Clinton).
An interesting statement, presumably written by Bill, was made in the book in the voice of the character of the President of the United States -
“There is nothing I value more in subordinates than their willingness to tell me I’m wrong, to challenge me, to sharpen my decision making. Surrounding yourself with sycophants and bootlickers is the surest route to failure.”
A big difference between President Clinton and current president Trump – for whom boot and ass licking is a requirement.
Perhaps the biggest difference between Clinton and Trump is that at meetings and briefings Clinton was usually the smartest person in the room – while at any meeting with anyone, except when speaking to his core cult of ignorant racists at a rally, Trump is ALWAYS the dumbest person in the room.