Posted on 05/21/2015 2:25:23 PM PDT by Second Amendment First
There is no way, no how, for this to be good cash management.
If the retirement plan is a conventional 401(k) or IRA, Rubio got a deduction for his contribution in the year contributed. The tax is deferred until a distribution takes place. Rubio triggered that event last year, so he would have $68,241 in ordinary income for 2014. Rubio is in at least a 28% tax bracket, so he would pay $19,107 in taxes in 2014. Moreover, since Rubio is not 59½-years old, there is a 10% penalty of $6,824. I don’t know how much money Rubio needed, but his $68,241 distribution cost him $25,931 in taxes, leaving him with $42,310 of spending money.
Well, I guess it was cheaper than a payday loan.
But still a dumb way to get your hands on cash.
maybe he wants to pay cash for a Ferrari or whatever...he is a very intelligent person and can certainly provide for his retirement....
It’s our business if he wants to be our president. Heck, it became Florida’s business when he decided he wanted to be a senator.
He has a history of bad fiscal decisions. It ought to disqualify him from ever getting anywhere near the taxpayers’ money.
I'm also a Cruz supporter, and agree with you. Let's remember that Thomas Jefferson was also terrible with his own money and died bankrupt, yet was a good steward of the public trust. It was Jefferson who launched the Barbary Wars because he deemed the $300,000 jizya demand too much for American taxpayers to bear.
If he did this because he no longer wanted his money tainted by the governments. If he no longer wanted to invest for the government. If he wanted to invest without the limitations of being a serf...
Fine.
I don’t trust Rubio. He’s like one of those Border Reivers of yore who would turn their badge over once they saw which direction the fight was going.
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