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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10149
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am a 72 yr. old woman. No responsibilitys. I live with my

Customer Question

I am a 72 yr. old woman. No responsibilitys. I live with my son & his wife. I have an IRA. I would like to invest part of the funds in Real Estate. My question is what kind of penalty or tax would I be facing in the future?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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Because your are over age 59 and 1/2 there are no TAX penalties (that additional 10% penalty for withdrawing from an IRS prior to age 59 and 1/2)

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The TAX you WILL see here; Any distribution from the IRA will be added to your taxable income for year withdrawn.

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So if you are in, say, the 15% bracket, the IRA distribution would be taxed at 15%

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Also you should know that it is possible to invest in Real Estate INSIDE the IRA as well, either through Real Estate mutual funds and EFT's OR in what's called a self -directed IRA.

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Please let me know what questions you have from here.

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Lane

Expert:  Lane replied 1 year ago.

One more thought ... because at age 70 and 1/2 you must begin taking Required Minimum Distributions from the IRA anyway (and pay the tax).

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Taking only that minimum distribution amount and investing into something (real-estate or other) outside the IRA might be a way to minimize (spread out, year by year) taxation and still accomplish your goal here.

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Lane

Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Lane replied 1 year ago.

Hi,

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I see the request ... I've just made the additional services offer

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Once you accept, I will enter my office number ... or you can enter your number if you'd prefer that I call.

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Lane

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Expert:  Lane replied 1 year ago.

Hi... Just checking back to see if you saw the offer.

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Once you accept, I'll enter my office number

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I'll be in all day tomorrow

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Let me know

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Lane

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