 |
IRA xfer bonus offer gotchas
03-09-2016, 09:10 AM
|
#1
|
|
Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,906
|
IRA xfer bonus offer gotchas
I've been reading the fine print of one of those "transfer your IRA to us and we'll give you a bonus" deals. This one says the bonus is put into the IRA as a contribution. But what if the IRA holder is not eligible to contribute (i.e. no earned income)? I suppose that means a withdrawal of excess contribution will be needed. And, if under age 59.5 the 10% early withdrawal penalty will apply, correct? Hmm, the bonus is not looking as attractive as it did initially.
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
|
03-09-2016, 10:32 AM
|
#2
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
Every bonus I have received is put in the IRA as dividend earned, so no problems interfering with contribution limits. It does not show up on Form 5498 either.
You are basically reading too much into this and should not worry about it.
|
|
|
|
|
03-09-2016, 02:04 PM
|
#3
|
|
Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,906
|
Oh, it's not an assumption as the fine print of this offer clearly states the bonus will be treated as a contribution for the tax year. It sounds like various xfer offers handle the bonus in different ways. One that treats the bonus as a dividend is more appealing because it has less paperwork and taxes.
|
|
|
|
|
03-09-2016, 04:00 PM
|
#4
|
|
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
|
 Quote:
Originally Posted by GrayHare
Oh, it's not an assumption as the fine print of this offer clearly states the bonus will be treated as a contribution for the tax year. It sounds like various xfer offers handle the bonus in different ways. One that treats the bonus as a dividend is more appealing because it has less paperwork and taxes.
|
Why not call them and clarify......if it is literally true ,they need to be informed that they are scaring the some of the target market away......and maybe they will change.
|
|
|
|
|
03-09-2016, 04:10 PM
|
#5
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
Is this the Fidelity thing?
|
|
|
|
|
03-09-2016, 04:33 PM
|
#6
|
|
Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,906
|
Not Fido, it's a regional bank promoting their banc.
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
