Another Edition of Stupid CTC Questions answered!

[Quixote]

Spectralblue asks:

I need to take a 401k disbursement pronto in order to pay mortgage, etc, (unemployed) and do not wish to have any withholding applied. Since it is voluntary with respect to wages, is it also voluntary with respect to 401k disbursements, and why or why not? This was addressed in now unavailable archived forums, but I can find no other details on it here nor anywhere else.

As any CTC educated individual (not "person") knows, Spectralblue, by depositing part of his pay for work into an IRC designated tax deferred account, invoked a federal privilege, so withholding is mandatory.

[Gregg]

Here's another one, not really a question per se, but something I wanted to comment on.. from End the Fed,

A few weeks ago, I pulled my IRA that I was dumb enough to invest in a stock indexed fund. Most of the money originated from an 401K. I debated what to do with it. I decided to pay off the mortgage on my house rather than buy property. So, as of yesterday I no longer have a mortgage! Funny how the priorities change when the government's influence of tax write-offs do not come into play. Think about how much more sense it makes to be debt free in this economy that the Fed has created.

Congratulations, you have scored to stupid Tax Denier trifecta on this one! First, assuming you withdrew $100,000, you just contributed not only the tax on the $100K, (which surely put you in a higher marginal tax bracket) you just gave an extra $10,000 to the government. You also eliminated a significant tax deduction you could have taken on the interest you were paying, and finally, you made it very convenient for the government to make you homeless because you now have a clear title to real estate just ripe for levy/seizure!

So, on top of the "a couple frivolous IRS Frivolous Penalties" you mentioned later in the same post, you have added maybe $39,000 in income tax on the income you realized, a $10,000 penalty, lost a deduction and invited to come take your home. Of course, when that happens you won't be able to access your home equity (the IRS will have a first lien on it, and no bank is going there). I think you've found the perfect plan to ensure you'll be living in a shelter in one fell swoop.

What a genius!

[.]

$100,000

Probably giving this idiot too much credit. More likely, he cashed out for pocket change and paid off his 30 year-old double-wide which at auction won't even cover one friv pen.

Also funny that a crackhead who supposedly has no "income" would care how "priorities change when the government's influence of tax write-offs do not come into play." Calling Dr. Larry, Dr. Moe, Dr. Freud.

[Quixote]

Here's another one, not really a question per se, but something I wanted to comment on.. from End the Fed,

A few weeks ago, I pulled my IRA that I was dumb enough to invest in a stock indexed fund. Most of the money originated from an 401K. I debated what to do with it. I decided to pay off the mortgage on my house rather than buy property. So, as of yesterday I no longer have a mortgage! Funny how the priorities change when the government's influence of tax write-offs do not come into play. Think about how much more sense it makes to be debt free in this economy that the Fed has created.

Congratulations, you have scored to stupid Tax Denier trifecta on this one! First, assuming you withdrew $100,000, you just contributed not only the tax on the $100K, (which surely put you in a higher marginal tax bracket) you just gave an extra $10,000 to the government. You also eliminated a significant tax deduction you could have taken on the interest you were paying, and finally, you made it very convenient for the government to make you homeless because you now have a clear title to real estate just ripe for levy/seizure!

So, on top of the "a couple frivolous IRS Frivolous Penalties" you mentioned later in the same post, you have added maybe $39,000 in income tax on the income you realized, a $10,000 penalty, lost a deduction and invited to come take your home. Of course, when that happens you won't be able to access your home equity (the IRS will have a first lien on it, and no bank is going there). I think you've found the perfect plan to ensure you'll be living in a shelter in one fell swoop.

What a genius!

Not to mention that the 401k he cashed out was invested in a stock index fund. He bought high and sold low.

[Quixote]

Posted by CTC worrier demolane.

Greetings Fellow Warriors, I hope everyone has had a wonderful weekend, Well I got two wonderful gifts, thats right not one but two (CP71C) and both on the same day from our freindly folks at the IRS Hospitality service on Friday reminding me that they say I owe them money just to start my weekend off to a great start. But I didn't lose one ounce of sleep or even think much of it as it has gotten to be routine. I mean you know when no one else cares enough to write to you any more to see how your doing you can count on the IRS to write, Yes sir ree buddy. Now I don't have a doubt in my mind that anything I do or send them will not be ignored but I'm just checking to see if anyone might have some updated files that says something different than the ordinary. You know it's odd but this is from 2003 and one is principle with interest and the other is a $5000. penalty with interest totaling $8974.74 but back in Sept. 08 they filed a Notice of Lien at the courthouse for the amount of Ninety Six humdred and some odd dollars so I guess it's all based on the my fidelity account with the TREASURY as the Interest rates dropped the Negtiable Instrument that they fraudulently created lost money or it's probally cause they just make up charges as it goes from one agent to another, I haven't the foggiest idea. I'd appreciate some up to date files or responses if any one knows of any,Thanks and I wish everyone a happy and prosperous week. Good Day

For those unfamiliar with CP 71C, it is one of the annual notices that Congress, in one of the taxpayer bills of rights, mandated the IRS send to taxpayers who owe taxes but who are not currently the subject of enforced collection activities (e.g., levies). Congress was concerned that taxpayers who were not reminded about their past due taxes might forget about them and be unpleasantly surprised if and when IRS decided to resume enforced collection activities.

demolane is like a man who is sharing a cave with a large hibernating bear which occassionally growls in its sleep. He wants to know the best way to poke the bear to stop it from growling.

[The Observer]

demolane is like a man who is sharing a cave with a large hibernating bear which occassionally growls in its sleep. He wants to know the best way to poke the bear to stop it from growling.

The best way is to emulate all the TPs that have gone on before demolane. Ergo:

(1) Remember that this cave is your cave - not the bear's. I know that some people may actually try to tell you that the bear was here first and that he's a territorial animal who is bound to enforce the rules as he see them. But you need to ignore these naysayers and claim what is rightfully yours.

(2) Always remember to be assertive - even if it is to the point that everyone else sees you as an idiot in this situation.

(3) FInd a pointy stick. In fact find several pointy sticks. As the saying goes, the best defense is a good offense. This is a situation where you want to be as offensive as possible. After all, the bear started it all by offending you. And don't worry about the seeming inadequacy of a pointy stick against a 1,200 pound grizzly. It isn't the size or power of the weapon - its whether you know how to use it.

(4) Encourage your family, friends, peers and anyone else farther down on the evolutionary/intelligence ladder to join you in the cave prior to evicting the bear from your domain. Don't be discouraged if a great deal of them refuse to enter the cave - all you need is one true person to be there in case you need to distract the bear from focusing on you.

(5) Maneuver yourself into the cave where you have no way to escape except past the bear. While this may appear to be counter-intuitive by placing yourself needlessly in harm's way, what you are accomplishing is showing the bear that you will not be easily chased away. Believe me, it is tactics like this that will confuse and confound the bear.

(6) Poke the bear in its most sensitive spots. Some wannabes will try to advise you that you might just want to do test-pokes to see how the bear is going to react and give you a chance to change your tactics in order to minimize any damage that may ensue. Following that particular advice is just going to give the bear the idea that you are his victim and encourage him to think that you are not dangerous. Wrongo! That is exactly what you want the bear to think - that you are dangerous! He needs to see that you mean business with that pointy stick.

(6) On the chance that the bear awakes and fails to acknowledge that you have gotten the drop on him and that you are the master of your destiny, you will need to refrain from falling prey to second-guessing your strategy, calling for help, reasoning with the bear and outright panic. You need to stand your ground and keep to the original game plan. Ignore his growling - he is only being louder at it now in the vain hope that he can intimidate you.

(7) In the extremely unlikely situation that the bear becomes desperate, he may seek to actually commit violence against you. You may be tempted to believe that your strategy has gone badly when you find yourself being bear-hugged, your abdomen being raked by his razor-sharp claws and your scalp being removed by those incredibly strong jaws. While this situation looks admittedly bad, it is actually a good sign that you are winning. You forced the bear to resort to violence in order to defend his fraudulent claim to the cave and his right to disturb your sleep. This little faux pas on his part is going to show everyone else in the woods exactly what kind of bear he is and how he can't be trusted. Once the word is out, the immense shame and humiliation this bear is going to endure is going to make him turn loose of you and start hightailing it out of the forest. Congratulate yourself on your moral victory achievement.

I like to call this the Brown Strategy On Dealing With Offensive Bears.

Edited to clear up some typos and to add an additional point.

[webhick]

I like to call this the Brown Strategy On Dealing With Offensive Bears.

And it's quite lovely. If you shorten the sentences, use smaller words and insert lots of pictures, you could put it on the market as a TP bedtime story.

[wserra]

And it's quite lovely. If you shorten the sentences, use smaller words and insert lots of pictures, you could put it on the market as a TP bedtime story.

And throw in lots of Matrix references - you know, red pill / blue pill, Neo, encryption and so on. They take the place of law, you know.

[jkeeb]

And always remember, the bear understands his obligations under the UCC.

[Thule]

The sad part is what happens when you do get mauled by an angry bear. First, your former compadres will point out that the stick was too short, and probably not the right kind of wood.

Then they will denounce you; by using the wrong kind of stick, you have alerted the Ursuminati to the whole poke-with-stick strategy, which will make it really hard for the next guy to get it right.

Finally, they'll drift of to the other end of the woods, where this really trustworty guy sells sticks made from genuine imitated hickory. That'll surely work.

[Dr. Caligari]

the Ursuminati

LOL!

That bears repeating.

[Imalawman]

the Ursuminati

LOL!

That bears repeating.

It was a good one, but I bet most TPs would bearly get it.