 Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1596
Location: MASSACHUSETTS
147.89 Dollars($)
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 Posted: Fri Nov 25, 2005 11:16 am Post subject: |
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Hi Daniel,
Welcome to MortgageFit Forums.
James has pointed out correctly from his view point. I would like to elaborate on what he has meant by that.
I don't know whether you have any emergency for which you want to withdraw the amount. But if you can manage it from elsewhere then I shall advise not to withdraw a large amount from the IRA.
One thing I would like to mention here that an IRA withdrawal will not reduce your Social Security Benefit but it may have an effect on your income pushing you towards the higher income tax bracket.
If a retiree is having his Social Security Benefits as the only source of income, then tax is not charged upon him. But in case he has some additional source of income such as pensions or any other like you are having, then IRA withdrawals and Social Security Benefits can become taxable.
Social Security Benefits are taxable for high income groups. Higher the additional income more will be the tax level. So, a large amount withdrawal may make you fall into the higher income tax bracket which I think will not be convenient for you after retirement.
So, I would suggest negative for a huge withdrawal from IRA.
If you have any more doubts, you may post here without hesitation.
God bless you.
For MortgageFit,
Samantha
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