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Personal Finance and Investing

FBaggins

(27,923 posts)

2. Generally... no

Reply to OnionPatch (Original post)

Mon Jul 4, 2022, 08:38 AM

Jul 2022

Oh, there are ways to nibble around the edges, and you would have had an option of borrowing against the balance if you had left it in the 401k…

… but if I understand your scenario correctly (i.e., that the amount you need is many multiples of the income difference between your current income and the income that will drive you into the next tax bracket), the answer is very likely “no”

On a related note (pun intended), if you refinanced while rates were so low, you’re probably better off just keeping the mortgage. At current inflation rates it has a negative carrying cost.

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Taxes on IRA withdrawl question [View all] OnionPatch Jul 2022 OP

This message was self-deleted by its author A HERETIC I AM Jul 2022 #1

Generally... no FBaggins Jul 2022 #2

I'm a retired financial advisor. Your response is absolutely correct. BlueBloodedAmerican Jul 2022 #6

Unfortunately I did not refinance. OnionPatch Jul 2022 #9

If you get Social Security you may get taxed more on that. Yonnie3 Jul 2022 #3

I'm not sure if this is what you mean but I can make up to 19K of wages before my SSI is affected. OnionPatch Jul 2022 #17

no, that is not what I meant Yonnie3 Jul 2022 #19

This message was self-deleted by its author Tomconroy Jul 2022 #4

Your actual marginal tax rate could be higher, much higher ... progree Jul 2022 #5

Lots to think about here. OnionPatch Jul 2022 #16

Yeah for the ACA. But watch out, your premium subsidy amounts depends on your income ... progree Jul 2022 #20

Ok, so I just saw at the SSI site that IRA withdraws don't count as income when determining benefits OnionPatch Jul 2022 #22

Please speak with a financial advisor. Phoenix61 Jul 2022 #7

Yes, that's what I was advised but now I have a monthly mortgage OnionPatch Jul 2022 #8

Look At Your Interest Rates.... gainesvillenole Jul 2022 #10

That makes sense OnionPatch Jul 2022 #11

It's a numbers game. Phoenix61 Jul 2022 #12

Thanks. The IRA isn't making anything right now, unfortunately. OnionPatch Jul 2022 #15

The only way to get lower payments would be to refinance Phoenix61 Jul 2022 #18

Thanks, that looks really helpful. OnionPatch Jul 2022 #24

Just brain storming here but could you split the payoff between two years? mitch96 Jul 2022 #13

Thanks. I may do something like this. OnionPatch Jul 2022 #14

About ten or so years ago I asked my financial advisor about PoindexterOglethorpe Jul 2022 #21

Yes, I'm in a similar situation as you were. OnionPatch Jul 2022 #23

There's conventional advice out there that no one should retire with a mortgage. PoindexterOglethorpe Jul 2022 #25