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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28856
Experience:  Taxes, Immigration, Labor Relations
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I am 80 years old. I have in my $88300.84 IRA account. Look

Customer Question

I am 80 years old. I have in my $88300.84 IRA account. Look like I will have to paid $9862.84 this year.
Would it better if I close my account
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!At your age - you are required to take distribution out of your IRA account.You cannot keep retirement funds in your account indefinitely. You generally have to start taking withdrawals from your IRA or retirement plan account when you reach age 70 1/2.Your required minimum distribution is the minimum amount you must withdraw from your account each year.You may take larger of full distribution - that is your choice - but please be aware - your withdrawals will be included in your taxable income except for any part that was taxed before (your basis)The full distribution will likely push you into higher tax bracket - so you might want to plan distributions wisely - and spread it over several years.
Expert:  Lev replied 1 year ago.
So far - following are your options- take annual distributions for required minimum distribution (RMD) amounts only- take larger distributions - but I woudl suggest to estimate your possible tax liability - so you woudl be able to plan such distributions wisely.- instead of making larger distribution - you may do conversion to Roth IRA - that conversions will be taxable - but you woudl be able to continue deferral of earnings and woudl not have RMD fro Roth IRA.Let me know if you need any clarification this matter.