Depends on your income. You could owe more than 21% in just taxes depending on your state. But if you don't "make up" the $210 in your rollover, you will owe a penalty on that $210

Yeah? And that won't matter unless OP gives away $12,700,000 (in which case, see above)

That makes me feel better haha

Yes. If you don't rollover/convert the full balance ($1000), you pay penalties on whatever amount was withheld. In this case, its $21, but still, that's $21 you don't need to give away

I would direct that to /u/jimmyvluv4u as I've demonstrated I can't be trusted when it comes to state taxes in the DC/MD/DC area

>Is there any reason why I shouldn't do it?

Unless the refinance lender is charging large up front fees, there is zero reason to put off a refi any longer

>Is this reasonable?

3x income is generally affordable. Your target homes are under that.

Unless you spend all your money on beanie babies and bespoke potatos hung in garages, it should be readily affordable for you

I don't know what you think you're talking about but given how little people understand about gifts and taxes, that's not surprising.

> Im not a cpa.

Why not?

>Plus Im in a small city

Larger cities have more opportunities.

If OP is going to be giving away $12,700,000 in his lifetime, he shouldn't be getting financial advice from reddit

> What do you mean deposit it should be? I can deposit, say, $1000 if there’s only $790 on the check

You write a check for $1000 to the IRA custodian as an indirect rollover

>Since I already paid taxes on it, what if I just put into my personal Roth IRA and select 2022 roll over?

Then you still pay penalties on the amount withheld

Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics

Banks and CUs: https://www.doctorofcredit.com/high-interest-savings-to-get/amp/ https://www.reddit.com/r/personalfinance/wiki/banks_and_credit_unions

Mortgage or invest: https://reddit.com/r/personalfinance/comments/zssug0/_/j1ddljd/?context=1

>Will it work if I deposit all of it at once?

Yes, why do you think it wouldn't? $40k isn't a lot of money when it comes to electronic deposits/transfers

Yeah, not a thing. Make the beneficiary whomever the funds are for

>Job: Public Accounting.

>44k salary after taxes(51k before taxes). Expect to get to 60k within 5 years

If you're in Public, why is your income so low?

Fixing that makes more sense than staying at whatever poorly-paying firm you're at

>Many of you said I can roll it over into another 401k to avoid the taxes but how do I do that if the taxes have already been taken out?

You deposit the full amount it should be and claim the withheld taxes on your tax return as a refund

Ostensibly, it would be the person who will use the funds for education.

What is causing you to ask the question?

>But in the long run is it a good idea to do that?

Yes, you've been an adult for eight years.

If you want to give them money write them a check

It seems that’s the case. I forgot they did.

Writing checks

Tax withholding

Estate planning

Marriage impacts (legal and financial)

Inflation

Fixed income/bonds

Housing

Time value of money

1099 vs employee

Dependency (taxes vs fafsa)

Employee benefits

Market timing

Some of these may be subtopics you already have

I figured someone would chime in if that was the case for those specific locales.

Thanks!

> I didn’t realize I was being taxed differently for working at home vs in the office

Yup. That’s the way it’s supposed to be done.

If DC has higher income taxes than VA, it doesn’t actually matter except you have to fill out two state tax returns. You just end up paying whichever has the highest rate

> commuted there between 2 and 4 days a week.

So not the full year then?

You’re misunderstanding something.

You lived in DC, so you’re income for DC will be your full income. You also worked in Virginia for part of the year (I’m assuming you’re mostly remote?) so you had some income in Virginia as well.

You’ll file taxes in virginia, then file taxes in DC where you’ll get a credit for the taxes paid to Virginia.

See the discussion on reciprocity

> Is there anything I can do on my end to help put a stop to this? I'm salaried if that means anything.

Get your supervisor and their supervisor involved