Author Topic: Miscellaneous Finance Questions  (Read 571 times)

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Miscellaneous Finance Questions
« on: April 29, 2021, 09:14:19 AM »
Have a question about finance but don't know if it's been answered in another thread or if it fits into any other thread? Ask it here.
When you find yourself agreeing with me more often than not, it's time for a cheshbon hanefesh.

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Re: Miscellaneous Finance Questions
« Reply #1 on: April 29, 2021, 09:16:55 AM »
Are there any tax-differed investment plans that allow you to withdraw the funds before retirement with no penalties? Or any similar advantageous plans that aren't geared towards retirement?
When you find yourself agreeing with me more often than not, it's time for a cheshbon hanefesh.

Offline CountValentine

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Re: Miscellaneous Finance Questions
« Reply #2 on: April 29, 2021, 09:58:25 AM »
At what age should you have all your funeral expenses paid for if at all?
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline ckmk47

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Re: Miscellaneous Finance Questions
« Reply #3 on: April 29, 2021, 10:02:10 AM »
Are there any tax-differed investment plans that allow you to withdraw the funds before retirement with no penalties? Or any similar advantageous plans that aren't geared towards retirement?
Check out whole life insurance. I think you can borrow / withdraw your premiums without penalty.

Offline ckmk47

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Re: Miscellaneous Finance Questions
« Reply #4 on: April 29, 2021, 10:07:24 AM »
At what age should you have all your funeral expenses paid for if at all?
I don't know what your expenses will be, but I think at your age you should have it all set up / paid off.
For Jews, you should join a burial society if the congregation you belong to doesn't have automatic membership.
You want to buried with your people.  My grandparents are buried in the same section as my grandmother's extended family, so when we go, we can daven at my mother's aunts and cousins as well as her parents.

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Re: Miscellaneous Finance Questions
« Reply #5 on: April 29, 2021, 10:13:11 AM »
For Jews, you should join a burial society if the congregation you belong to doesn't have automatic membership.
Is there a cost? If so how much? What does it cover?

You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline skyguy918

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Re: Miscellaneous Finance Questions
« Reply #6 on: April 29, 2021, 10:39:48 AM »
Are there any tax-differed deferred investment plans that allow you to withdraw the funds before retirement with no penalties? Or any similar advantageous plans that aren't geared towards retirement?
FTFY

Roth IRA is tax deferred on gains, and allows you to withdraw contributions prior to retirement without penalty. There are others built around education, such as Coverdell/ESA (contribute after tax, gains are tax-free when used for education, including k-12), 529 (contribute pretax, federal and potentially state, tax-free when used for higher education potentially including yeshiva), etc. HSA can be used fully tax-free for medical. This is not meant to be comprehensive.

Offline dovy2

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Re: Miscellaneous Finance Questions
« Reply #7 on: April 29, 2021, 11:03:48 PM »
FTFY

Roth IRA is tax deferred on gains, and allows you to withdraw contributions prior to retirement without penalty. There are others built around education, such as Coverdell/ESA (contribute after tax, gains are tax-free when used for education, including k-12), 529 (contribute pretax, federal and potentially state, tax-free when used for higher education potentially including yeshiva), etc. HSA can be used fully tax-free for medical. This is not meant to be comprehensive.
Can the ESA be used for private schools? Is one required to show some sort of proof, and if yes, to who?

Offline skyguy918

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Re: Miscellaneous Finance Questions
« Reply #8 on: April 29, 2021, 11:21:25 PM »
Can the ESA be used for private schools?
Yes
Quote from: https://www.irs.gov/pub/irs-pdf/p970.pdf
An eligible elementary or secondary school is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law.
Is one required to show some sort of proof, and if yes, to who?
Not to my knowledge. The IRS just says that you don't need to report distributions that are tax-free. My ESA's are at TD, and they don't require much from you when you withdraw, other than to certify that the beneficiary (ie your kid) is eligible.

Keep in mind that you have to contribute after tax and the limit is $2k per kid per year - and even that phases out to $0 by $220k joint AGI. Having said that, I think it's a good idea for everyone to contribute the max they're allowed from the time their child is born. Whether you start taking out immediately as soon as you have tuition bills or you wait to let it accrue longer is a separate discussion.

Offline dovy2

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Re: Miscellaneous Finance Questions
« Reply #9 on: April 30, 2021, 01:40:41 PM »
YesNot to my knowledge. The IRS just says that you don't need to report distributions that are tax-free. My ESA's are at TD, and they don't require much from you when you withdraw, other than to certify that the beneficiary (ie your kid) is eligible.

Keep in mind that you have to contribute after tax and the limit is $2k per kid per year - and even that phases out to $0 by $220k joint AGI. Having said that, I think it's a good idea for everyone to contribute the max they're allowed from the time their child is born. Whether you start taking out immediately as soon as you have tuition bills or you wait to let it accrue longer is a separate discussion.

Just researched the covordell ESA.. This is yet another option which could benefit most frum yungerleit, and a pity there no one educating us on this (as mentioned in the retirement forum).
With the stimulus money, and the upcoming CTC money, this and a ROTH IRA are important options for everyone to know about.

Offline skyguy918

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Re: Miscellaneous Finance Questions
« Reply #10 on: April 30, 2021, 02:27:51 PM »
Just researched the covordell ESA.. This is yet another option which could benefit most frum yungerleit, and a pity there no one educating us on this (as mentioned in the retirement forum).
With the stimulus money, and the upcoming CTC money, this and a ROTH IRA are important options for everyone to know about.
I would also add 529 depending on your circumstances.

Online nucheiner

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Re: Miscellaneous Finance Questions
« Reply #11 on: May 01, 2021, 10:15:41 PM »
I would also add 529 depending on your circumstances.
I believe the benefits of a 529 depends on the State not just one’s financial situation.

Offline skyguy918

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Re: Miscellaneous Finance Questions
« Reply #12 on: May 01, 2021, 11:15:11 PM »
I believe the benefits of a 529 depends on the State not just one’s financial situation.
I didn't state otherwise. Where you live is part of your circumstances.

Having said that, it can be worthwhile in and state with the right personal circumstances.