This question may have already been answered but I haven't seen it. What about taking IRA money out in view of bank and stock market collapse? The money will be heavily penalized and taxed if we take it out now as opposed to taking it out through the years in monthly increments? If we don't take it out, will it still be there after 1/1/2000?

-- Jean Stephens (tjstephens@juno.com), October 15, 1998

Answers

The IRS will take a 10% penalty plus a 20% withdrawal for taxes owed. IMHO this is a small price to pay for what is owed to you, and may never be received by you if you make the wrong choice.

-- UNoHoo (ksk@ris.net), October 15, 1998.

Others will disagree but I would consider rolling the IRA money into a gold fund or gold bullion. You can't personally hold the bullion but it can be kept at a bank.(My wife is a stockbroker at a major firm and I checked with her on the rules. Her firm uses one bank to hold the gold bullion.) X bars of gold bullion is x bars of gold bullion no matter what. That is unless you believe the govt might confiscate same. However, they could also "borrow" your standard IRA on an accounting ledger. If absolutely necessary,I would only touch the IRA account now for survival items (food, water purification, heating source, weapons).

-- R. D..Herring (drherr@erols.com), October 15, 1998.

Easy solution for many of those with tax problems/penalties for withdrawal of IRA or Pension or Annuities or Whole Life Policies - borrow against the principal. The loan will be a very low rate of interest, there will be no risk, you won't touch your principal, and if nothing major happens, pay off the loan - perhaps even with inflated dollars...

Brad

-- Brad Waddell (lists@flexquarters.com), October 16, 1998.

It is my understanding that you have 90 days to place funds back into an IRA to avoid paying the penalty or the taxes, check with your plan administrator. You could begin transferring IRAs every 90 days and keep your money in "taxation limbo". Also, you should wait until 1999 to pull out the money. If things get real bad, the IRS will have problems much larger than your taxes.

-- bhayes (bkhayes@intellex.com), October 16, 1998.

bkhayes, you are incorrect. You can use 90 days to rollover funds - but only once per year.

Brad

-- Brad Waddell (lists@flexquarters.com), October 16, 1998.

Been there, done that. Let's get the record straight here. IRA's can be transferred into gold bullion without penalty. You have to do it the right way, though. Certain companies, like Prudential securities can turn your IRA into physical gold. Most brokers cannot handle this type of transaction, in which case, you have to go through a custodian that can handle physical metal purchases. The one I am familiar with is American Church Trust Co. in Texas. 800-228-8825. You transfer your current IRA funds to an account under their supervision, after directing them what you want to do with the money.

In a U.S. IRA, you have no other choice but to invest in AMERICAN EAGLE GOLD OR SILVER COINS. You are not allowed to purchase bars or any other country's coins. Your precious metals purchase will be held at the Republic Bank of New York, currently the only bank (or it's sister affiliation, the Mellon Bank in New York) in the U.S.

At the time of withdrawal, you are subject to penalty (if you are under 59-1/2) and tax, which can be paid by you on your next tax return. It is not necessarily withheld upon withdrawal of your funds.

May I suggest you request all of the required forms for withdrawal or changeover in advance of needing them. It's going to be sticky business to get your goods when the time comes. It will shave off a good 2-3 weeks if you have the paperwork in hand prior to needing it.

Good luck.

-- Goldi (goldilucks@yahoo.com), October 16, 1998.

AHA!! I have been waiting for bhayes to come out of hiding! Now I can gloat over the thrashing Texas gave Oklahoma! How would you like your crow cooked? And then, of course, Texas A&M really did a number on Nebraska! :-)

-- Gayla Dunbar (privacy@please.com), October 18, 1998.

Whooop. Gig 'em Aggies.

Thank you, Gayla.

-- Robert A. Cook, P.E. (cook.r@csaatl.com), October 18, 1998.

By the way Gayla, did you hear about the Aggie who got caught trying to forward a serial letter bomb over the Internet?

It took a while for the campus cops to find him, but they finally tracked him down when he used his real email return address.

-- Robert A. Cook, P.E. (cook.r@csaatl.com), October 18, 1998.

I, too, have been wondering about my IRA...I did convert it to a Roth IRA this year, and just a week ago, got out of the stock market completely (it is all in bonds) however, even that low-risk move is making me nervous...I don't know what to do...

And hey, GIG 'EM AGS!

Kellie Proud Member of the Class of '92, Texas A & M Whoop!

-- K. Heckert (bill_n_kellie91@hotmail.com), October 22, 1998.