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Tax Tip of the Week | Your Most Expensive Personal Asset to Liquidate is Your…. September 26, 2018

Posted by bradstreetblogger in : Deductions, General, Tax Planning Tips, Tax Tip, Taxes, Uncategorized , trackback

Tax Tip of the Week
September 26, 2018

 

401(K)!

Please don’t get me wrong. There are times and reasons to cash in your 401(k) and/or other retirement plans. However, aside from the loss of your future investment, the tax hit of cashing in your retirement plan can be astronomical. Therefore, in times of a cash crunch, practically any other asset is better to turn to. Remember, the withdrawal of your tax deferred retirement plan is subject to federal, state and school district income tax (if applicable); and if you are under the age of 59 ½ you are also hit by a whopping 10% penalty (nondeductible)!

Caution:  Too many people treat their retirement plans like an ATM and not the long-term retirement savings vehicle it was designed for!

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.

This week’s author – Mark Bradstreet, CPA

–until next week.

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