withdrawal from IRA to fund SEP IRA in another company
MY wife has a IRA account in Janus from prior year. Can we withdraw it to put money in SEP IRA in Vanguard. Janus doesn't offer SEP IRA.
Will there be additional taxes?
Wed Jul 16, 2014 2:23 pm
JonCartoon Preferred Member
Cash: $ 27.35
Joined: 18 Jun 2014
in such cases, often pay a penalty.
additional costs will be this unambiguously, otherwise the system would not have been created.
Such things are done that people could make money, but not the users. Owners make money
Wed Jul 16, 2014 4:26 pm
Wino Senior Member
Cash: $ 113.80
Joined: 03 Aug 2012
You do not withdraw it to move it to Vanguard. You transfer from Janus to Vanguard. You do this by setting up an account at Vanguard and giving them instructions (account number, routing number, etc) that identifies your account at Janus. It takes a few days.
If you withdraw it to move it to Vanguard, then Janus will withhold 20% for taxes, and you'll have to come up with that money yourself to put into Vanguard, which you can then have reimbursed when you do your 2014 taxes. If you don't come up with the 20%, then you'll be taxed on it and given a penalty for an early withdrawal.