Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




Traditional IRA and mortgage payment

Reply to topic
Money Talk > Taxes

Author Thread
ukrkoz
Contributing Member


Cash: $ 9.30

Posts: 43
Joined: 04 Nov 2010
Location: seattle
Traditional IRA and mortgage payment  Reply with quote  

I am 62.5 yo.
I have all good intentions to retire in 4 yrs and then maybe go work part time.
I have been mortgage free for couple years and it's a great feeling.
Here's the situation.
I'd like to retire mortgage free.
The way I am, I am NOT interested in any investments. Not me, not my karma.
I simply want to rid of mortgage.
We now have $520K mortgage.
With our income, we could pay off $300+ mortgage in 4 years. No strain.
But, I need to get there.
The only way I can do this is to make a lump sum payment around January/February 2018.
I can do that but! The only funds I have are in my traditional IRA.
I modeled $120K distribution from IRA in my 2016 tax software and landed with $38K tax.
I do understand the IRS IRA regulations. It is what it is.

That basically kills entire idea. Sort of. It's either that or work for one more year and simply pay it off "naturally". I am getting burnt out at work though.

That said - pretty much, I am stuck with tax, right? There is no way to roll it over into mortgage or something?
As I said - I spent reasonable time researching tax implications and IRS regulations. Not that complicated. I am simply looking for a possible bypass strictly for mortgage pay off purpose. I care less about personal use. Maybe there is some way there.

Thank you.
Post Sun Sep 24, 2017 3:17 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 736.65

Posts: 3582
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
I can do that but! The only funds I have are in my traditional IRA.


Oh - you must have decided against selling the rental? Is that idea now "off the table"? - that would be your best way to raise cash (w/o having to disturb your IRA's).
Post Sun Sep 24, 2017 5:40 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016