IRA distributions and taxes
I am 68 and am not collecting social security now. We plan on waiting until I’m 70. My husband is already on social security and earns around $2000/mo. Should I take some distributions from my IRA now to lessen our tax burden once I turn 70? When I turn 70, I will earn $3500/mo+. Thanks for your thoughts!
Terry Says
If you need the money you can take it out — and pay ordinary income taxes. Speak to your accountant about the impact of withdrawals on your tax bracket, and potentially on your Medicare Part B premiums. Use this link to see how higher earnings impact Medicare Part B premiums.
But if you don’t need the money, why not keep it growing tax-deferred until you’re required to start taking withdrawals at age 72.
