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Taxes on paying off mortgage

By Terry Savage on November 23, 2015 | Housing / Real Estate

Terry, I am 67 want to pay off mortgage with a IRA Matured CD. Do I have to pay taxes on that amount as taxable income?

Terry Says:  When you withdraw the money from the IRA you must pay ordinary income taxes on all money withdrawn.  That assumes it was a traditional IRA and that you deducted the contributions as they were made over the years.    Also consider whether this additional income will put you into a higher tax bracket, where you might still want that mortgage deduction!  In other words, you need to discuss with your tax advisor the pros and cons of paying off your mortgage by making this move.



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