Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [penalty]

113 questions
32
votes
7 answers

Bought stock at higher price than current price

I wanted to buy stock ABCD at a price of 880. The current price was 900. When I bought, I set 980 instead of 880 and it was fully executed. I don't understand how it is possible to buy stock at a higher price than current price? Now let's say I own…
sonu agrawal
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18
votes
2 answers

Estimated Taxes after surge in income

Last year my self-employment income was $300k and I paid about $80k in federal taxes. This year, in the first quarter, all of my business dried up and I had $0 in income. Turbo tax was advising me to make an estimated tax payment of $20K on Apr…
Fixee
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17
votes
1 answer

I withdrew contributions from a Roth IRA. Why is my tax service imposing a 10% penalty? I am only withdrawing contributions, not earned income

I received a Form 1099-R from my brokerage with box 7 (Distribution code) marked with Code J indicating that I will be paying a 10% penalty for withdrawing the money. From my understanding, I'm able to withdraw my contributions whenever I want…
largecoconutballs06
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16
votes
2 answers

Accidentally cashed out 401k instead of rolling it into an IRA. What do i do?

I've recently changed jobs (past two weeks) from an employer with a 401k to a new employer who does not offer any retirement accounts. I made a huge mistake and accidentally cashed out my 401k instead of rolling it into an IRA. What are my…
BlueFlint
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12
votes
1 answer

How do I solve an accidental violation of Medicare's 6-Month look-back HSA contribution prohibition?

I'm 67 and worked past 65, not enrolling in SS, Medicare A or B. Therefore, I contributed to my corporate HSA through October 2020. I stopped contributing immediately when, upon my research, I heard about Medicare part A imposing a 6-month…
Hank
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11
votes
1 answer

401(k) forfeited and check issued. What can I do to avoid penalty?

Recently, I checked the website of the last 401(k) plan that I contributed. I found that the account was "forfeited", which I assume it means that it was closed due to not being an employee of the company anymore and because there was no…
scubaFun
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10
votes
3 answers

Can you be penalized for setting an arbitrarily high number of allowances on your W-4?

I withheld too much in taxes this year. I will benefit a good amount from the Lifetime Learning Credit, which I hadn't heard about until today. Even if I don't pay a cent in taxes for the rest of the year I will still get a refund come next year. As…
partyphysics
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9
votes
2 answers

The five-year rule and backdoor Roth IRA conversions with non-deductible contributions

I have a Roth IRA that was opened and initially funded more than five years ago. Now that I'm earning too much money to make regular contributions, I'd like to further fund this account through a backdoor conversion. If I open a new traditional IRA,…
mwp
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9
votes
5 answers

Understanding underpayment penalty: implications and how to avoid it in the future

Here is a small explanation of my situation which I hope will help to understand my question: I am a full time employee who lives in California. Each year I get a W2 from my employee and 1099 from my brokerage account. All the years before 2020 I…
random
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9
votes
3 answers

Does it make sense to start saving into a 401k, if you might move out of the US before retirement?

Contributions to 401k funds are subject to a 10% penalty if taken out before the age of 59.5. Presuming my employer has a 401k matching program, does it make sense to contribute to a 401k if I might move out of the US before the age of 59.5 and…
JonathanReez
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7
votes
1 answer

How Does The IRS Structure Payment Plans If I Owe Subjectively High Taxes?

During the 2015 tax year I became legally separated. During the separation my ex-wife did not agree to a QDRO when cashing out her equity from jointly owned property. The cash out was mandated by our separation agreement which was filed with my…
DadOfTwo
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7
votes
3 answers

U.S. citizen living abroad: How do I declare my income and file for taxes if I've been delinquent in filing?

I'm 26 and have lived outside the U.S. all my life. I never filed a U.S. income tax return. I know nothing about doing my taxes, and would like to file for the years that I neglected to before the penalties become more serious. Here are some…
user13183
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7
votes
1 answer

HSA and Medicare: what if I get laid off?

I'm approaching 65; will continue working for a large company; will not be taking Social Security; have a high deductible insurance plan through my company which I will continue using (so will not sign-up for Medicare at this time); and am…
Liam
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6
votes
1 answer

529 plan withdrawal penalties

My son is a freshman this year. We live in and he attends school in California. We pulled out the first $ from our Utah 529 plan. I had the money deposited in my account since I paid the registration and dorm & meal plan. Our friend has a son a…
Guy Henry
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6
votes
4 answers

Are prepayment penalties for mortgages normal?

My wife and I are in the market for a new house, and we're at the point where we want to comparison shop lenders. Is it usual for mortgages to have prepayment penalties? My wife just hates the idea of having debt, so our tendency is going to be to…
David
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