can I use my IRA to pay for my stay in an independent living facility without havin to pay taxes.
Country relating to Question: United States
State (if USA): Missouri
starting to look
You may not do that, no.
When you take money from an IRA, that is considered taxable income because it was never taxed when you put it into your IRA.
However, you may have a medical deduction as an itemized deductions for the portion of your stay that is considered medical expenses. The entire amount you pay the facility is not for medical expenses. The medical expenses in total, must be more than 7.5% of your total income, and only the amount over that is deductible.
I have 60000 in an IRA and some in regular savings. would it be best for my heirs from a tax point of view to use my IRA first for my expenses and then my savings.
If your heirs inherit your IRA, they will pay tax on the money as it is taken out of the account, just like you.
Otherwise, inheritances are tax-free to the recipients
If you have just Social Security as your only income, you will likely be in a lower tax bracket than your heirs when you take an IRA distribution. Therefore, it is better for you.
If you take out of your IRA, approximately, $10-11K per year, you are likely to have little or no income tax due.
Over 20 Years experience
my daughter has power of attorney on my health decisions - do i need to have her on my financial decisions . I will have a house to sell but it will be a TOD - ANY OTHER PROBLEMS I NEED TO THINK ABOUT
Yes, do make sure the house is not given to her until your death otherwise she will have a tax liability when she sells it. If it transfers after you are gone, she gets the stepped-up basis---the cost becomes the value when it transfers, so if she sells it, she makes no taxable gain.