Hi,
My husband and I are retired. In 2024, I took a very large distribution out of my traditional IRA. Ten percent was withheld automatically. I used the remaining money to purchase an investment property in another country. Even though it was for an investment, I did not purchase it in a way that treated the investment as being under the IRA umbrella. Now, I find myself having to pay around $30,000 in taxes on the distribution (according to TurboTax). Is there a way to not pay these taxes since the money was spent as investment, or should I have purchased in a way that made it clear it was still part of an IRA account? Are there are laws that relate to my situation that could help me with my current tax situation?
Also, if I do have to pay this large amount in taxes, can I set up a payment plan with the IRS instead of paying a lump sum? If so, how do I set up the plan? Is it interest free?
Thanks.
