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Why are you doing this? Reading between the lines, it appears you want to remove it because you are in a lower tax bracket now than you expect to be in the future.
You cannot make a withdrawal, at this time, for tax year 2017. That had to be done on or before 12-31-17. Anything you do now will count for tax year 2018. So, you may want to wait til later in the year to have a better handle on your overall tax situation.
“I am not withdrawing it too early”. I take that to mean you are over age 59-1/2. If you are under age 59-1/2, you will have to pay a 10% early withdrawal penalty, in addition to the 15% tax.
Instead of removing money and putting it into a taxable account, you could consider converting some of your traditional IRA to a Roth IRA. You pay the same amount of tax, as withdrawing the money (but no penalty for those under 59.5) but the money can be invested free of future tax.
Why are you doing this? Reading between the lines, it appears you want to remove it because you are in a lower tax bracket now than you expect to be in the future.
***No, because it's just sitting there and I have an enornous amount of veterinarian expenses and dental expenses which I'd like to be able to withdraw from this amount. I would like a liquid account.
You cannot make a withdrawal, at this time, for tax year 2017. That had to be done on or before 12-31-17. Anything you do now will count for tax year 2018. So, you may want to wait til later in the year to have a better handle on your overall tax situation.
**My tax situation will remain the same. I waited from doing it last year to this year already.
“I am not withdrawing it too early”. I take that to mean you are over age 59-1/2. If you are under age 59-1/2, you will have to pay a 10% early withdrawal penalty, in addition to the 15% tax.
I'm 67, so no penalty.
Instead of removing money and putting it into a taxable
account, you could consider converting some of your traditional IRA to a Roth
IRA. You pay the same amount of tax, as withdrawing the money (but no penalty
for those under 59.5) but the money can be invested free of future tax.
As I said, I want to use it for a lot of expenses.
Thank you all for your useful comments. As you can see, I will never understand taxes, although I've been doing them for years ! with -0- refund and -0- payments.
So, one last question, given the complexity of "taxes" and the changes ... would it be safe for me to ask for 20% of the amount of my IRA and not be taxed again later?
I do have other investments, but they are not liquid, and I'd really love to get some expenses taken care of now, not later - meanwhile, it has just been sitting there and I do need it now.
Thank you.
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