About Taxes: Should You Cash Out Your IRA in a Down Market?

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	from William Perez People have been asking me how to handle their IRAs and other retirement accounts given the wild fluctuations in the financial markets. I'm not much of an investor, but I do know a tax opportunity when I see one. IRA losses could be tax deductible, but there are lots of limitations and restrictions that make cashing out a not particularly rewarding tax strategy.
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Deciding to Liquidate an IRA The standard reply is not to over-react to market gyrations. But some people are facing dire financial hardships, and so it would be nice to know when to call it quits and completely liquidate an IRA account. Here's eight issues to consider before cashing out.              More Topics IRS Trying to Deliver Refund Checks Quickbooks 2009 Software Review 2009 Tax Brackets Announced More 2009 Tax Figures Tax Credit for Diesel Cars Tax Provisions in the Emergency Economic Stabilization Act Amended Returns IRA Penalty One key thing to consider before taking money out of an IRA is to find out if a penalty will be imposed. Many distributions from an IRA made before an accountholder reaches age 59.5 years old is subject to a 10% penalty, and that's on top of the regular tax rates.   Getting a Deduction for IRA Losses So many people have lost a substantial portion of their retirement savings. But not all losses inside of a retirement account will qualify for a deduction due to market losses.     Sponsored Links   Boo! Have a Spooktacular Halloween Find easy ways to make your Halloween unforgettable -- thrilling DIY decorations, frighteningly delicious recipes, and budget-savvy costume ideas for every age.

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