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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I'm over sixty, and will retire about a year from now. I

Customer Question

I'm over sixty, and will retire about a year from now. I have found a fixer-upper house I want to purchase now and hope to have it livable by this time next year. The tax problem is that the house is a $200,000 cash-only probate court deal. My only source for that kind of cash is from some retirement, non-Roth, accounts I have. Is there any way to soften the tax burden of that much money being added to my income for this year?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** will be happy to help you.

Unfortunately not. Your accountant is correct. Only people born before 1935 can still use income averaging. All exceptions apply only to the early distribution penalty, which is not your case any more if you are 60+. You may want to consider a short term loan and instead of taking the entire distribution in one year, take one now and another in January 2017.

Expert:  emc011075 replied 1 year ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

I know that's not the answer you were hoping for but if there were any way to legally avoid paying taxes on the distribution I would be very happy to tell you that.

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