paying off my mortgage
my wife and i are 74 and live in our house with a mortgage of $100,000. We have $495,000 in our 401K plus an annuity for $160000. ( this pays about $733 per month) we also have a small car payment of $325 per month. Is it better to take the $100,00 out of our 401K and pay off our mortgage, or just keep making the payments? Thank you..
Terry Says
When you take that money out of your 40l(k) you are going to have to pay taxes on it. And that big bump could increase your Medicare Part B premiums for the next two years!
So u8nless you have a very high rate mortgage, you should probably just double the payment every month, if you can afford that o9ut of your RMDs. And then pay it off faster, but not one big lump sum.
I also note you said “our” 40l(k). This is NOT joint ownership! The 40l(k) belongs to an individual. Double check to make sure you have named your spouse as “beneficiary.”
