Cashing out your mutual funds to take care of home repairs

Read full question
Bill's Answer
4.0
/5.0
(4 Votes)
Bills.com Team
Pro

By

Bills.com | Find Learn Save

10 Comments

Recent Best
1500 characters remaining
  • BA
    Mar, 2010
    Bill
    I cannot answer your question based on the information provided. A "mutual fund" is a collection of stocks or bonds that is managed by an fund manager. A mutual fund in and of itself has no tax implications or rules regarding withdrawing funds from the each owner's account. A mutual fund may be an alternative to a savings account, or could contain funds designated as an IRA, or a rollover from a 401(k) or similar account. You need to consult with the person who set up the account to determine if the mutual fund is an IRA, trust fund, or some other account that has tax implications if the owner makes a withdrawal.
    0 Votes

  • ND
    Mar, 2010
    Nancy
    My son is 19 and was left money and we put it into mutual funds a couple years ago. We are needing to withdrawl the money what is the penalty or what amount will he be taxed on the whole amount or just what was earned?
    11 Votes

  • BA
    Dec, 2009
    Bill
    Impossible for anyone to say with certainty without knowing your income and the amount withheld from your wages. Go to a tax planner with your pay stubs and a copy of your 2008 tax return to get a precise answer.
    0 Votes

    • BA
      Feb, 2014
      Bill
      It depends how the debt is displayed on your three credit reports. There is no violation of the Fair Credit Reporting Act if it is clear what's published is a collection account's chain of ownership. However, if the information is published in misleading manner to suggest separate, independent collection accounts, then this action violated the FCRA.
      2 Votes

    • AS
      Feb, 2014
      Anne
      Nobody looking at it would ever know they are connected. I know because I obviously know how it got there. So can I ask the bureaus to remove the charge-off? Or how do the get reflected as "connected?"
      1 Votes

    • BA
      Feb, 2014
      Bill
      The consumer credit reporting agencies don't offer subtlety in their customer service. If there's an error in your credit report, you need to file a dispute and say something like, "The date should be 2004 and not 2008" or "This is not my account" or "The debt amount is $1,200 and not $12,000." Anything more complicated than the hypothetical examples I just shared will confuse the consumer credit reporting agencies. My advice is you file a dispute saying the oldest accounts are not yours, and hope for the best.
      2 Votes

  • 35x35
    Dec, 2009
    DAWN
    I HAVE BEEN TAKING MONEY OUT OF MY MUTUAL FUNDS TO PAY MY HUSBAND MEDICAL EXPENCES THIS YEAR. MY HUSBAND LOST HIS JOB AND WE ARE ON MY INSURANCE BUT IT HAS A 6000.00 DEDUCTABLE AND WILL NOT COVER THE EMBREL THAT HE NEEDS. SO FAR I HAVE TAKEN OUT 5,000.00 AND NOW I HAAVE ANOTHER 900.00 IN MEDICAL BILLS WE JUST REC. WHAT IS THIS GOING TO DO TO US COME TAX TIME? I HAVE BEEN TAKING THE 10% TAX OUT WITH EA WITHDRAWL.
    4 Votes

    • BA
      Feb, 2014
      Bill
      The timeline you shared is confusing to me, and I cannot offer meaningful answers to your questions. If you're a Kansas resident, your best source of advice is a Kansas lawyer. If you cannot afford a lawyer, contact Kansas Legal Services or another Kansas pro bono program to find no-cost legal advice.
      0 Votes

  • BA
    Sep, 2009
    Bill
    Rarely do I think a reader should take a distribution from a retirement account before the reader reaches retirement age. The penalty for doing so is just too high. I really like your idea of taking advantage of the 0% interest on transfers, and paying off the debt when your circumstances allow. That option is the cheapest, and gives you breathing room to handle the debt. That said, if the stress of the debt is the source of a deterioration to the health of you or your spouse, then paying the penalty to get rid of the stress is worth the cost.
    0 Votes