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Level 1

Solved

I'm 70 years old, retired, and purchasing,a second home. Which has less tax impact, selling stocks or using cash from my IRA?

Forum|Forum|7 years ago
June 4, 2019
2 replies
19 views

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Best answer by Critter

Probably selling stocks since you only pay taxes on the profit which (if you sell long term holdings) may qualify for the lower cap gain tax rate. And you can sell off losers to offset the winners if you play it right.

In contrast, all distributions from the IRA are taxable at your regular tax rate. Depending on your income level some of it may not be taxable at all. You also have your state income tax to consider as well.

Depending on the amount you need you may be able to do some of both to get the lowest tax possible. I highly suggest you talk to a financial planner who has income tax knowledge to plan the best combination for you.

Level 15

Probably selling stocks since you only pay taxes on the profit which (if you sell long term holdings) may qualify for the lower cap gain tax rate. And you can sell off losers to offset the winners if you play it right.

In contrast, all distributions from the IRA are taxable at your regular tax rate. Depending on your income level some of it may not be taxable at all. You also have your state income tax to consider as well.

Depending on the amount you need you may be able to do some of both to get the lowest tax possible. I highly suggest you talk to a financial planner who has income tax knowledge to plan the best combination for you.

Level 15

Which side of June did you turn 70?. If you are 70 1/2 this year you will have to take some IRA "cash" as RMD.