OT: IRA withdrawal ?

[Kingfisher]

I am going to withdrawal money from one of our IRA's next wk to help with some expenses. I'm 61, wife 68 and we both have traditional IRA's. Does it matter which IRA (wife or mine) that we withdrawal from (we file taxes jointly).

I'm thinking it's all taxable income in the long run just added on to our retirement income??

[Mr. Pink]

No, if you file jointly.

[Bruce K]

You should check with your financial advisor to be sure

BK

[dave thompson]

I don't believe that you're old enough to withdraw money from your IRA without penalties. Your wife is. Use her IRA

[saab2000]

You should check with your financial advisor to be sure

BK

While I won't totally discount this, I'm skeptical of the 'financial advisory' industry. They can possibly lead you through the legal minefield, but the best advice I've received in finance has always come for free from folks who have absolutely no stake in my outcome. Beware of what folks who have a stake in your finances advice.

I've learned many neat things from folks here. In other words, this advice is free and is probably well intentioned.

[MikeD]

Might as well draw from your wife's IRA since she's older and will have to take mandatory withdrawals at age 70.5; sooner than you. That could reduce the amount she would have to take out then, when you might not want to withdraw so much.

[fuzzalow]

If you are asking this, then you might consider talking to someone qualified to give you advice.

As always, it can be as complicated or as simple as you want it to be - but whatever exit/liquidation strategy you come up with, however complex or simple, is usually better not done left as haphazard and just happened while not knowing all the parameters. That is dangerous.

For example, although your taxation isn't effected by which account is drawn from, depending on the underlying assets held you can impact your returns based on what holdings you liquidate - don't sell what you should have let run. Managing cash flows as a staged liquidation strategy from illiquid to liquid assets is another element to consider. On and on. So do not be cavalier with your investments, at your age there is not the same flexibility of investment horizon that you had as a youngster to help make up for a mistake. Good luck.

[54ny77]

talk to an accountant, not a financial advisor.

[Mr. Pink]

I don't believe that you're old enough to withdraw money from your IRA without penalties. Your wife is. Use her IRA

He is. Starts at 59.5. You may be thinking of SS. 62.

[pcxmbfj]

I believe starting IRA withdrawals below a certain age requires additional withdrawals in following years.
Also if your wife currently draws SS additional income can affect its tax exemption.
Talk to an accountant.

[Mr. Pink]

I believe starting IRA withdrawals below a certain age requires additional withdrawals in following years.
Also if your wife currently draws SS additional income can affect its tax exemption.
Talk to an accountant.

The only restrictions on SS income are in the years when one collects early, which for me is age 62 to age 66. I am restricted on outside income from employment during those years to about 14,000 max. After that, SS takes their money back according to a formula. After age 66, there are no restrictions on income from employment. IRA income is not a factor in this period. You can withdraw as much as you want, with no restrictions. But, don't take out too much!

[Blown Reek]

talk to an accountant, not a financial advisor.

Any advice other than this should not be heeded.

[alancw3]

59.5 w/o any penalties.

[pcxmbfj]

No Message

[fuzzalow]

I am facing Required Minimum Distributions from IRA that will disqualify the tax exemption of a large percentage of my social security income.
Can't believe I'm the only one that has this iceberg floating around.

Are you accurate with the use of the word exemption? And if so, can you explain what you understand your exemption to be - exemption used here as meaning free from income tax liability on received SS benefits? Or do you mean something else?

[MikeD]

I believe starting IRA withdrawals below a certain age requires additional withdrawals in following years.
Also if your wife currently draws SS additional income can affect its tax exemption.
Talk to an accountant.


Not true. Mandatory withdrawals occur at age 70.5.

[ColonelJLloyd]

Any advice other than this should not be heeded.

Agreed. Consult an experienced accountant.

[rileystylee]

I thought this thread was something to do with Northern Ireland but then remembered this is a US forum...!