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Withdrawal some funds from IRA for safety?

By Terry Savage on August 05, 2020 | Investments

Hi, I have a Roth IRA with company called Beacon. I have noticed my funds are starting to go up finally (I don’t have much in it $5000+) but was wondering if I should take out a couple thousand and put it in my checking or savings before stocks go down again just for safe keeping, also since I turned 65 in July will I still pay taxes on this at end of year?

Terry Says

You don’t want to take money OUT of your IRA and pay the taxes. And at ANY age when you take money out you add it to your income and pay ordinary income taxes.

But here is my suggestion. Contact Fidelity or Vanguard and tell them you want to do a DIRECT ROLLOVER of your IRA. They will handle all the paperwork for you — so there is NO income tax consequence. And you can tell them you want to be very conservative, so you might put half in their equity-income fund, and maybe some in a MM fund — all INSIDE your IRA rollover account.



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