It is up to you on whether or not it is wise, if you need it, then you need it. You will ALWAYS pay tax on the amount withdrawn, because you are over 59 1/2 you will not have to pay the penalty. The amount withdraw will be counted as annual income, subject to your normal tax bracket when withdrawing from an IRA. You can wait forever.. you will always be subject to tax-- as for if it wise, it depends on your situation and income for the year... best bet , if you have an accountant or advisor w/ the IRA ask them what your specific tax consequence will be.
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Submitted 14 days ago...
I am 74 yrs old. My job is being phased out. Can I w/d from my IRA to pay off credit card, etc. debts w/o penalty or taxes? Is it a wise move?
I am 74 yrs old. My full-time job is being phased out. Can I w/d from my IRA to pay off credit card, etc debts w/o penalty or taxes? Is it a wise move?
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Submitted 10 days ago...
If this is an IRA (and not a Roth IRA), you have to start minimum required distributions (withdrawals) when you reach age 70.5, so I hope you are doing that. There is a stiff penalty for not taking your MRD. This money is taxed as income in the year it is withdrawn. There is no penalty imposed for withdrawing. If you have a Roth IRA you have no MRD, and no tax on withdrawals, but you did pay tax at the time you put the money into the Roth. If you have a 410(k) and your job is going away, you have to start MRDs just like with an IRA. You could move the money out of the 410 (k) into an IRA without penalty. Any actual withdrawals will be taxed but there is not penalty for withdrawals.
It is always good to pay off credit card debt, since the interest is so high. Whether it is good to withdraw extra at your age depends on your tax bracket versus the interest rate.
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