How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14457
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

Does it make sense to withdrawl from IRA to pay off house?

Customer Question

does it make sense to withdrawl from IRA to pay off house?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: My wife is 65 and has 1413 SS coming end. I am 64 disabled with 1749 SSdi, 1680 VA and 2414 Military retirement coming in. we are thinking fof taking
JA: Is there anything else important you think the Accountant should know?
Customer: 150K out of wifes 403b to pay house off. Good idea or not?
Submitted: 2 months ago.
Category: Tax
Expert:  Robin D. replied 2 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 2 months ago.

The payments received under the 403(b) account are taxable in full as ordinary income. In general, the same tax rules apply to distributions from 403(b) plans that apply to distributions from other retirement plans.

This would also make 85% of your SSA and SSDI payments taxable. The VA portion is not effected.

The interest on the mortgage is an allowed deduction on the Schedule A if you itemize along with your property taxes for the year. If you have been itemizing your deductions yo may find that without the interest you are no longer seeing a high enough amount to benefit from itemizing.

If you were at a place in your mortgage that was lower then paying it off might look like a better plan.

There is no good or bad but you have to look at the tax.

Customer: replied 2 months ago.
How can I figure what the tax cost would be if I did this?
Expert:  Robin D. replied 2 months ago.

I can do an estimate, one sec................................