Ask Terry Questions IRA to pay mortgage balance

IRA to pay mortgage balance

By Terry Savage on August 23, 2018 | Financial Planning / Retirement

Retired – Want to payoff house – owe $20,000 – by using money in IRA
I am 69yrs old.

Terry Says

OK, you didn’t give me much information to go on. The REAL question is whether you have enough “other” money beside the IRA to maintain the home and pay the property taxes. Should you be considering selling your home, and moving into a senior residence that would cost less than youra current monthly payments for mortgage, taxes, and insurance? That would also give you a lump sum of cash to put in the bank.
I’m afraid I can’t give you more specific advice without more facts. But don’t forget that money you take out of your IRA is taxable — and could push you into a higher tax bracket, potentially impacting you Medicare monthly payment, as well.

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