The cash credit of Rs 100 crore that is shown in the bank statement as unsettled activity, will be the adjustment entry of the recovery done by our recovery guys.

We have collected but not received the payment for this amount. Until we receive it, we cannot book recovery expenses on account of a cash discount.

When we receive the payment, we can book recovery expenses and also post the cash credit in the bank statement.

In past dealings, when we have sold goods on account of cash discount, our customer has been delaying payment to us. In such cases, the following entry is passed:

What is cash debit from unsettled activity Fidelity?

When our customer doesn’t pay the amount to us, it causes “unsettled activity” in their books of accounts.

This will create an additional cash debit on account of Fidelity at their end. Please check how this is being tackled with the following entry:

How to deal with cash discount given by customers?

Cash discount means the deduction of cash received against the customer’s invoice.

A cash discount is generally given to make payments easy and quick. It can be different for different customers i.e. 1% or 2%.

Can you take money out of your Fidelity account?

No, a Fidelity account is a separate account and cash credit from it cannot be taken out. If you need cash, you have to sell some inventory by taking a loan from your bank.

In order to avoid this situation, we should not give discounts to our customers if they delay the payment. We can do this because of the following reasons:

1. When we give a discount, they will ask for a longer credit period. This results in an increase in the interest cost of the money which we have given to them on account of goods sold to them.

2. As per our old policy, if our customer is late in payment by 10 days then after that any fresh purchase made from them will not be allowed without cash discount.

3. If we want to increase our turnover, then we have to sell goods at a lower price rather than giving a cash discount. In long run, it will benefit us as our business volume increases.

How much tax will I pay if I cash out my IRA?

If you cash out your IRA, the full amount will become taxable. Because of this, it is recommended that you make use of tax-loss harvesting to create offsetting capital losses for any amount cashed out. Tax-loss harvesting allows investors to realize capital losses on investments in their taxable accounts without actually selling those investments. As a result, these losses may be used to offset capital gains. The remaining net loss can then be carried forward to future tax years and used as a deduction against net capital gains for those future tax years.

Basically, cash credit from an unsettled activity means that you have received some amount as a discount from your customer but have not yet banked the same into your account.

What reasons can you withdraw from IRA without penalty?

If you are at or older than age 59-1/2, have taxable compensation, have unreimbursed medical expenses that are more than 10% of your adjusted gross income.

Can I borrow from my IRA without penalty?

No, you cannot. According to the Internal Revenue Code §72(t)(1), if you take a loan from your IRA, it is treated as a taxable distribution. The same rule also applies if you have any outstanding balance owed on your loan when you terminate employment with the company sponsoring your retirement plan.

Can I take money from my IRA to buy a house?

Yes, you can. If you have a traditional IRA and withdraw funds from it to buy a primary residence for yourself or your family, the first-time homebuyer exception allows you to avoid paying any federal income tax on that distribution under certain conditions. You must purchase the house within a time period that starts with the date of withdrawal and ends at least 120 days later.

The IRA owner must be at least age 18 and the home’s purchase price or fair market value (whichever is less) can’t exceed $10,000,000. You cannot include rollovers in the 120-day period

Can I borrow from my IRA to buy a home?

No, you cannot. According to the Internal Revenue Code §72(t)(1), if you take a loan from your IRA, it is treated as a taxable distribution. The same rule also applies if you have any outstanding balance owed on your loan when you terminate employment with the company sponsoring your retirement plan.

Can I borrow from my retirement plan?

Yes, you can.

As per the Internal Revenue Code statutes, The loans must be repayable over a period of no more than five years, including any period during which the account owner is disabled.

How can I get money out of my retirement without penalty?

If you are at or older than age 59-1/2, have taxable compensation, have unreimbursed medical expenses that are more than 10% of your adjusted gross income,

Does borrowing from 401k affect credit?

Generally speaking, when you borrow from 401k there is no impact on credit.

How do I borrow against my pension?

You can borrow against your pension if you are facing financial hardship.

Can I secure a loan against my pension?

You can try.

What is the difference between retirement plan loan and hardship withdrawal?

The main difference is that you can borrow up to 50% of the vested account balance from a 401k plan, whereas you can withdraw 100% from a 403b plan.

Can I use my pension as a deposit for a house?

You can use your pension as a deposit for a house if you have an offset arrangement.

What is the tax consequence of borrowing from 401k?

There are several consequences. You will owe taxes on the benefit you receive, and your 401k may be taxed if the account drops in value because of the withdrawal. If you are under age 59 1/2, you will also incur a 10% early withdrawal penalty.

Can I get an advance on my pension?

No, you cannot. You can only withdraw funds as per the plan provisions.

How do advance payments work?

Typically, the company pays out the amount of pension directly to their employees.

How long does an advance payment take to go through?

Usually, the payments take up to seven working days.

Can I get a loan against my pension?

You may be able to get a pension advance depending on the type of pension plan that you have.

How do I report a loan against my 401k?

Loans against 401k plans are reported as income and must be included in your gross income for tax purposes.

Can I borrow from state public sector retirement system?

Typically, borrowing against state public sector retirement systems is not possible.

Can I borrow from military retirement?

You can’t borrow against your military pension. However, you may be able to access the funds through other means such as applying for an “out-service” withdrawal or a transfer of plan distribution to another IRA account.

No, you cannot get a loan against your pension.

Can I get an advance on my VA disability?

No, it is not possible to get a loan against your VA Disability. You can withdraw from the plan as per the IRS rules and regulations.

Can the VA help me with debt?

Yes, the VA provides a program called Debt and Mortgage Relief.

Can I use my IRA as collateral?

No, you cannot. In general, IRAs are not backed by any form of collateral. The exceptions are if you have an inherited IRA or Roth IRA with assets from outside of those accounts that can be used as collateral for loans.

Can I get a loan on my 401k?

Generally, you cannot get a loan on your 401k plan. You may be able to transfer the funds out of the account through other means such as an IRA rollover or an annuity purchase.

How do you qualify for VA disability?

You must have a service-related disability that is expected to last at least one year or result in death.

How do you apply for VA hospitals?

You can submit an application through the Department of Veterans Affairs website. You can also visit your local VA office if they are closer to where you are located.

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