Rod's Account Talk

[weatherweenie]

Depending on whether or not a person is eligible to retire with full benefits, prior to 59.5 yrs old, there is this IRS regulation:
Quote from pub 721, page 14:
"Tax on early distributions. Any money paid to you from your TSP account before you reach age 591/2 may be subject to an additional 10% tax on early distributions. However, this additional tax doesn't apply in certain situations, including any of the following.
• You receive the distribution and separate from government service during or after the calendar year in which you reach age 55."

As long as you do a direct rollover (after military/civilian separation/retirement) to a broker, there won't be any penalties. Remember, if you are in a Roth IRA, you can withdraw your contributions at any time penalty and tax-free. You just can't withdraw the earnings penalty and tax-free before the age of 59.5.

 

[Rod]

Sure. But just to clarify and make sure we are on the same page, you can still withdraw Roth contributions penalty and tax-free before the age of 59.5

Located on page 2 of the pamphlet in the link:

Note: You do not have to pay
federal taxes on any tax-exempt or Roth contributions that are
included in your withdrawal. But you do have to pay federal taxes
on any earnings on these contributions if you have not met the
conditions necessary for a qualified distribution.

And those "conditions"...

Roth earnings become qualified (i.e., paid tax-free) when the following two conditions have
been met: (1) 5 years have passed since January 1 of the calendar year in which you made your
first Roth contribution, and (2) you are age 59½ or older, permanently disabled, or deceased.
Note: We cannot certify to the IRS that you meet the Internal Revenue Code’s definition of
disability when your taxes are reported. Therefore, you must provide the justification to the
IRS when you file your taxes.

https://www.tsp.gov/PDF/formspubs/tspbk12.pdf

Depending on whether or not a person is eligible to retire with full benefits, prior to 59.5 yrs old, there is this IRS regulation:
Quote from pub 721, page 14:
"Tax on early distributions. Any money paid to you from your TSP account before you reach age 591/2 may be subject to an additional 10% tax on early distributions. However, this additional tax doesn't apply in certain situations, including any of the following.
• You receive the distribution and separate from government service during or after the calendar year in which you reach age 55."

 

[Rod]

Look on the bright side...

The indices remain up for the week... so far.

S&P: +69.72

Dow: +711.92

Naz: +171.30

Despite the roller coaster week, the major indices have banked some gains thus so far:

S&P: +175.90

Dow: +1,681.50

Naz: +450.79

Will these gains be relinquished today and tomorrow? It's difficult to say. But, if you've been caught on this roller coaster all week long, at least you have gains for now.

God Bless :smile:

 

[weatherweenie]

Crazy!

Look on the bright side...

The indices remain up for the week... so far.

S&P: +69.72

Dow: +711.92

Naz: +171.30

 

[Rod]

Interesting observation...

As some of you "old timers" know, I was a buy-n-holder from 2 Nov 2009 - 23 Dec 2019. That allocation was 60 (C) and 40 (S). My total gains during that period (without any further contributions because I was retired) averaged 28% annually. My total monetary gain was 281%. My TSP balance had essentially tripled.

Anyways, if I was still a buy-n-holder, I would be down 6.88% YTD. Instead, I am down 2.22%. It will be interesting to compare both of these by the end of the year.

God Bless :smile:

 

[Rod]

Thankful to be 100 (F). AGG looks absolutely beautiful in pre-market:

118.17 +1.17 (1.00%)

Pre-Market: 8:15AM EST

I'm hitting the road for the weekend. So, be careful out there!

God Bless :smile:

 

[Mcqlives]

Great jobs numbers and futures head for a low. Living in interesting times sucks for the market! Enjoy your weekend!

 

[Boghie]

Be careful with the F Fund...

Dumb money is panicking. Smart money might be using the 'Dumb Money Panic of 2020' to enhance their quarterly window dressing. They are locking in very yummy profit - as we all know you ain't got a profit till you sell. Where did smart money park their assets? Have you been watching the lovely returns in the F Fund (U.S. Total Bond Market)? Yup...

Will Smart Money want to be in bonds when they distribute their quarterly reports?

If not, and if the market holds in correction territory, where do we think smart money will go - cash, bonds, or equities?

 

[Rod]

Nice pop in (F)! Cramer says not to trust today's short covering rally.

 

[Rod]

Wow...

Futures are down over 4%.

 

[1965Vintage]

This is fixing to get real!

In the mean time, I am trading micro-cap stocks that are testing for the Corona Virus. ENZ is my play now. You know what they say.....there's always a bull market somewhere. Last weeks play was INO.

I have been watching this market daily since 1994. I have never seen the futures this low. Tomorrow will be a bloodbath! :Eyecrazy:

 

[Rod]

I have never seen the futures this low. Tomorrow will be a bloodbath! :Eyecrazy:

If these futures hold, it most certainly will. I truly feel for those caught up in this mess. My advice to them is not to capitulate so they can keep those share numbers intact. It will eventually recover, and then make new highs. It just might be awhile before that occurs. In the meantime, buy at these bargain prices which will get even cheaper!

 

[Rod]

"The collapse in yields and oil is signaling an imminent recession..."

https://twitter.com/jimcramer/status/1236824680239181825?s=19

Maybe. If so, it won't be declared until Q4 at the earliest.

 

[Rod]

Brent Crude is currently down over 29%! :Flush:

 

[Rod]

Might Monday be the day when the circuit breakers trip?

https://www.investopedia.com/terms/c/circuitbreaker.asp

 

[tom4jean]

Might Monday be the day when the circuit breakers trip?

https://www.investopedia.com/terms/c/circuitbreaker.asp

They already did for the futures.

https://finance.yahoo.com/news/rout-u-stock-futures-trigger-221631295.html

Sent from my Pixel 2 XL using Tapatalk

 

[Rod]

They already did for the futures.

https://finance.yahoo.com/news/rout-u-stock-futures-trigger-221631295.html

Sent from my Pixel 2 XL using Tapatalk

I now see that. I figured it would.

https://www.cnbc.com/2020/03/09/sp-500-futures-are-frozen-after-tanking-5percent-heres-what-happens-when-circuit-breakers-kick-in.html

 

[killi]

Another halt just happened too for 15 minutes.

 

[Rod]

To reiterate what I wrote on 25 Feb...

RIP Bull Market... You've been good to me these past 11 years. :usa2:

 

[Valkyrie]

Well, we got that 10% correction and more many were looking for. The "more" is the concerning part. What is really going on and by who?