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Old 04-11-2016, 04:02 PM
 
1 posts, read 609 times
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Our IRA is currently invested in stocks, bonds with them constantly going up and down we would like to cash out.
We are both 70yrs and are in the 15% tax bracket. Anybody know what % we will have to pay on with drawel fees?
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Old 04-11-2016, 04:18 PM
 
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It depends on how much is in your IRA. You are in the 15% bracket now, but after you add the amount of your IRA distribution to your income, will that still be true? If your IRA is large, it will almost definitely not be true. And don't forget about state income tax, if applicable.

You don't have to keep your IRA invested in stocks and bonds. You are free to exchange some or all for CDs or money market accounts within the IRA. You can do that with a brokerage account, or you can just transfer your IRA to a bank.
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Old 04-11-2016, 04:55 PM
 
Location: VT; previously MD & NJ
2,214 posts, read 1,356,544 times
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Quote:
Originally Posted by Petunia 100 View Post
It depends on how much is in your IRA. You are in the 15% bracket now, but after you add the amount of your IRA distribution to your income, will that still be true? If your IRA is large, it will almost definitely not be true. And don't forget about state income tax, if applicable.

You don't have to keep your IRA invested in stocks and bonds. You are free to exchange some or all for CDs or money market accounts within the IRA. You can do that with a brokerage account, or you can just transfer your IRA to a bank
.
I'm highlighting this . it means you can sell your stocks, bonds, funds, or whatever and still keep the money in an IRA account. Then you won't have to pay income tax on the funds. You only pay tax on money you withdraw from the IRA account.
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Old 04-11-2016, 06:10 PM
 
Location: Florida -
8,767 posts, read 10,862,335 times
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At 70, you will soon be required to withdraw RMD's (70-1/2), which will start at an average of about 5-percent of the total per year from your IRA's and other tax-deferred accounts. You will, of course, also be required to pay income tax at whatever bracket your current income PLUS RMD places you in. (RMD - Required Minimum Distribution)

Otherwise, you can freely move funds around within your IRA, but, any withdrawal creates a taxable event on whatever your regular income is, plus the withdrawal. If you are still within the 15-percent bracket, the tax amount will still be 15-percent.
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Old 04-12-2016, 01:44 AM
 
Location: Central Massachusetts
4,800 posts, read 4,856,396 times
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Quote:
Originally Posted by Maerlein1 View Post
Our IRA is currently invested in stocks, bonds with them constantly going up and down we would like to cash out.
We are both 70yrs and are in the 15% tax bracket. Anybody know what % we will have to pay on with drawel fees?
You should see a fee only financial advisor and one that understands the second half of the game. Not every FA knows withdrawals. Most tend to lean towards growing funds not spending them.
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Old 04-12-2016, 08:33 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,652 posts, read 40,029,981 times
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Chances are good, that you do NOT want to cash in the IRA,
Just change assets, and set up auto withdrawals as required by age 70.5. (Depending on your tax situation)

If you have an institutional IRA, you can roll it to a self managed IRA with no fees / penalties. (You can still have a 'self-managed' to be managed by your FA if you so choose).

You want to be very WISE about how to liquidate an IRA. Your estate planner / CPA is a good place to start. You definately want to have your beneficiaries correctly identified, and you may want to assign secondary to your trust (For a free... 'step-up' basis upon distribution. State of residence / trust / will, and asset size determines best way to distribute )

Lots if ways to skin this cat, Do not give the IRS an additional opportunity to skin YOU !
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Old 04-14-2016, 09:47 AM
 
708 posts, read 503,884 times
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Quote:
Originally Posted by Maerlein1 View Post
Our IRA is currently invested in stocks, bonds with them constantly going up and down we would like to cash out.
We are both 70yrs and are in the 15% tax bracket. Anybody know what % we will have to pay on with drawel fees?

Well good news is that your stocks and bonds are constantly going up. Better then most. I think the rest of people have gave you good advice on your withdrawal. See your accountant as ultimately they figure
out how you pay.
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Old 04-14-2016, 09:56 AM
 
Location: The Berk in Denver, CO USA
14,053 posts, read 20,393,173 times
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You need to read
https://www.irs.gov/publications/p59...link1000231236
The table you care about is at the very end: Table III - (Uniform Lifetime)

If the changing market makes you nervous then you need to change your asset mix inside your IRAs.

More reading.
https://www.onefpa.org/journal/Pages...de%20Path.aspx

GolfingDuo had excellent advice.
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Old 04-14-2016, 06:27 PM
 
Location: Florida
4,376 posts, read 3,714,793 times
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You can sell them from inside the IRA. NO taxes. When you take the cash out you pay normal income taxes. This would be 15% or more if the withdrawal takes you to a higher tax bracket.

I would not take all the cash out at one time if you do not need it. Spread it over a few years and your taxes will be less.
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