Hello,
Just found this forum while look for some help with Quickbooks and was pleased to find such informative posts. Great forum.
My question today is, I am in school and didn't have any income last year, so I wasn't going to file a return.
However, I have about $6K in a 401k from a previous job and am thinking about either cashing out (please don't yell at me!) or rolling over to a Roth IRA. My thinking is this: if this is the only income I have to report, then there is no need to file, correct, because it is under $8950? I would only have to pay state taxes and, if I cash it out, a 10% penalty, right? Or, since I wouldn't file, would the penalty still be owed?
I have started my own business and am looking to use this for a little cash padding, but have other avenues if it will be too expense. Is my thinking above correct, or do I need to file regardless of the amount if rolling this over?
Thanks in advance for all your help. If more info is needed, please feel free to ask.
Just found this forum while look for some help with Quickbooks and was pleased to find such informative posts. Great forum.
My question today is, I am in school and didn't have any income last year, so I wasn't going to file a return.
However, I have about $6K in a 401k from a previous job and am thinking about either cashing out (please don't yell at me!) or rolling over to a Roth IRA. My thinking is this: if this is the only income I have to report, then there is no need to file, correct, because it is under $8950? I would only have to pay state taxes and, if I cash it out, a 10% penalty, right? Or, since I wouldn't file, would the penalty still be owed?
I have started my own business and am looking to use this for a little cash padding, but have other avenues if it will be too expense. Is my thinking above correct, or do I need to file regardless of the amount if rolling this over?
Thanks in advance for all your help. If more info is needed, please feel free to ask.