Author Topic: What are late notes worth?  (Read 10794 times)

RT45

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Re: What are late notes worth?
« Reply #15 on: July 26, 2016, 02:35:57 PM »
Quote
the law allows you to withdraw your contributions to a Roth at any time.

Not a registered investment advisor, but I think you have to wait 5 years before you can withdraw up to the contribution amount in the Roth. Otherwise same idea.

Also, helpful to know on the losses in a Roth - was not aware of this.

anabio

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Re: What are late notes worth?
« Reply #16 on: July 26, 2016, 04:14:24 PM »
Not a registered investment advisor, but I think you have to wait 5 years before you can withdraw up to the contribution amount in the Roth. Otherwise same idea.

I pulled this off a Schwab website. Not sure if I am interpreting it correctly but it appears to say that you can withdraw your contributions without regard to the 5 year point but any EARNINGS withdrawn before that 5 year point will be subject to that tax and penalty. Of course the only reason you would do this is that you have a huge loss and therefore you would not have any earnings.

Bold words are my emphasis.
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Age 59 and under.

You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. However, you may have to pay taxes and penalties on earnings in your Roth IRA.

Withdrawals from a Roth IRA you've had less than five years.

If you take a distribution of Roth IRA earnings before you reach age 59˝ and before the account is five years old, the earnings may be subject to taxes and penalties. You may be able to avoid penalties (but not taxes) in the following situations:

    You use the withdrawal (up to a $10,000 lifetime maximum) to pay for a first-time home purchase.
    You use the withdrawal to pay for qualified education expenses.
    You're at least age 59˝.
    You become disabled or pass away.
    You use the withdrawal to pay for unreimbursed medical expenses or health insurance if you’re unemployed.
    The distribution is made in substantially equal periodic payments.1

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In my case in 2008 I don't think I had the Roth for more than 5 years ... but I could be mistaken...that was a long time ago. I do know that I closed the account (it was the only roth I had) and claimed the loss and did not get in trouble with the IRS...but maybe that was luck? I do know I researched that capability and a lot of financial web sites said you could do that...so I did.
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

bluto

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Re: What are late notes worth?
« Reply #17 on: August 04, 2016, 09:10:49 AM »
Back when my account was relatively new, I looked at the recovery rate of late notes compared with the discounts being offered and attempted to speculate on a few "bargain" falling knives.  One note ended up with positive performance, and it took 6 years (I got a surprise settlement long after it had been written off).