Speaking of student loans......
.....I got a nephew, son of my niece Connie, whose house I was at yesterday. Kelly lives in Miami because it’s “cool” to live there. But he was home for the holidays so we had a conversation.
First, he once had $10K in an IRA and he took it all out.
Folks, people with no self-control should NOT be allowed to have an IRA or 401-K or whatever brand of tax-deferred money should be called.
The idea is for folks to put aside money tax-free when they’re young and making bucks to be withdrawn later in life to pay taxes upon when income is not so high.
My family, I love them but they’re a bunch of Walmart shoppers because first thing, when they need money they raid the old 401K.
Now yon thread participants, you know that there is a HUGE penalty (hold on and I actually WILL make a connection to the Sunday talk shows with this) for withdrawing this money early, not just for the taxes one would have paid had the money been taxed when earned but I think it’s like a 25% penalty.
In the Name of the Father, the Son and the Holy Ghost that is a LOT of money....DON’T DO IT!
As an aside, and in keeping with being somewhat germane on this thread, Marco Rubio also took a big withdrawal from his IRA and paid big penalties and this is very dumb, don’t you think? Because MArco Rubio has serious money issues and right there I do not support.
Anyway, this kid didn’t pay the taxes and penalty due on such a dumb move and now Maryland is about to take away his driver’s license.
What a driver’s license has to do with taxes due to the IRS I’m not sure but I suppose you must reach the dolts at their level.
So Kelly launches into a rant about how he has paid in to taxes his whole life (he’s 30) and never rode the gubmint free stuff and goodness it was required for me to set him straight.
First, when he was 18 he got a gubmint student loan to go to Spain and play soccer. He owes a fortune for this and the stupid gubmint NEVER should have allowed such a thing.
Second, when that IRA money was deducted from his paycheck, NO taxes withheld and now he must pay. In addition to the horrendous penalty and interest.
Man the kid was full of himself but it ended well, heh, with yours truly who spent a lifetime doing payroll agreeing to help him with his IRS distress.
Student loans are horrible, giving money t stupid young people for an education in exotic dance which will get them NO job but the money must be repaid.
And those who would have an IRA should be tested for an IQ over 30 because it was a good idea, once, but dumb people will do it in.