top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Tax return and IRA's

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Tax return and IRA's

    Decided this past week that without any job prospects (started unemployment this past month), and looking at the mortgage mods out there, that it is just not in my current budget to try and keep my mortgage payments current, even if the payment gets cut in half.

    Just filed my taxes last week and I'm getting about $4000-5000 back, direct deposit. If at the end of the year, my situation is still the same, I may be filing ch. 7. I'm thinking that maybe I should put that tax return in an IRA for 2009.

    My question is this: does it look bad or suspicious if I get that return direct deposited, then it leaves my checking account a week later, and gets put into an IRA? I read here on these forums that that is a good way to keep it, as opposed to giving it up to the courts/creditors if I cannot exempt it. I guess it would make sense if I then filed an amended tax return also.

    Thanks in advance or any input.

    #2
    No, it does not look suspicious.

    Comment


      #3
      Just socked away my tax return into a vanguard roth IRA. Hope this was appropriate and totally legal!

      Comment


        #4
        My attorney advised sticking the refund between an IRA and an Educational Savings account. You should be fine!

        Comment


          #5
          Thanks

          Comment


            #6
            Be a little careful here. There are a very few states who do have a time period between the contribution and filing.
            Az. is an ex.
            Bankruptcy exemptions determine if you can keep your house, car, pension and retirement funds. Learn the available state and federal bankruptcy exemptions.


            33-1126 - ERISA-qualified benefits, if deposited more than 120 days before filing. IRAs & Roth IRAs.

            and Vt.
            Bankruptcy exemptions determine if you can keep your house, car, pension and retirement funds. Learn the available state and federal bankruptcy exemptions.


            12-2740 - Self-directed accounts including IRAs and Keoghs as long as contributions were made more than 1 year before filing; other pensions.


            Check this out for your state before you make the leap.

            Comment


              #7
              Wow, I didn't know this could be a problem. I'm in michigan, will do some research on the matter. Thanks for the heads up.

              Comment

              bottom Ad Widget

              Collapse
              Working...
              X