Your basic understanding is pretty much correct

As to whether to take it all now, that depends on where you are in your tax brackets. For example, if you're halfway up the 24% bracket and taking the entire IRA would push you into the next bracket, then you'd be paying 32% (plus state) tax on part of the distribution. If spreading it over multiple years would keep you from bumping your tax bracket, you'd save on taxes.

Never give the gubment any more than you absolutely have to
[Post edited by Hokerer at 12/29/2021 12:41PM]

In response to this post by JoesterVT

Posted: 12/29/2021 at 12:41PM

What do youze guys know about inherited IRAs? -- JoesterVT 12/29/2021 12:28PM

Google must be listening. I just got an email from TD Ameritrade... -- Spud 12/30/2021 10:02AM

I've been receiving inherited IRA payouts for many years. -- Full-Set and Moonshine 12/29/2021 6:56PM

Yes, tax laws changed. It is 10 years to take out if not a married spouse -- VaTechie 12/29/2021 10:09PM

To take all of it ? ** -- Full-Set and Moonshine 12/29/2021 10:50PM

Yes, 10 years to take all of it out -- VaTechie 12/29/2021 10:55PM

Good to know ** -- Full-Set and Moonshine 12/29/2021 11:06PM

Do you trust your wife? ** -- HokieDan95 12/29/2021 5:29PM

Can you wirhdraw the IRA over 10 years and pay off the mortgage -- Baltimore Hokie 12/29/2021 1:47PM

Certainly...and I only have about 5 years left on the mortgage anyway -- JoesterVT 12/29/2021 1:53PM

Would say do calculations -- HokieForever 12/29/2021 2:03PM

Will add instead of making an extra payment each year -- HokieForever 12/29/2021 2:08PM

Oh- shun ** -- bigbadbird 12/29/2021 1:27PM

Inside -- FfxStationHokie 12/29/2021 1:30PM

I think you can take it out over a number of years- which could defer taxes -- bigbadbird 12/29/2021 1:11PM

First qs pp1 are right. The other is whatever works. Rest assured at some -- ColoVT82 12/29/2021 12:55PM

My wife got an inherited IRA too (inside) -- FfxStationHokie 12/29/2021 12:47PM

Your basic understanding is pretty much correct -- Hokerer 12/29/2021 12:41PM

Would also add using some back of the napkin math -- HokieForever 12/29/2021 2:02PM

Also how much home interest from a payoff is saved vs taxes paid ** -- coshokie 12/29/2021 1:31PM

I get that, but my thought is this... -- JoesterVT 12/29/2021 1:39PM

Yet you have this IRA which IS that investment -- 133743Hokie 12/29/2021 2:08PM

Well, I'd never borrow money on a paid for house to invest in an IRA, so .. -- JoesterVT 12/29/2021 2:15PM

With the IRA he has the resources to be debt free whenever he wants, but -- 133743Hokie 12/29/2021 4:19PM

Wrong way to look at it imo -- HokieForever 12/29/2021 2:23PM

Good point on amortization, yeah he is saving "pennies" at this point ** -- HokieForever 12/29/2021 2:11PM

Agree, that's a great place to be in ** -- coshokie 12/29/2021 1:51PM

Where can I find info on the tax brackets? ** -- JoesterVT 12/29/2021 12:46PM

Lots of places, link inside -- Hokerer 12/29/2021 12:52PM

Thanks! ** -- JoesterVT 12/29/2021 1:09PM

Nothing. If you need help with IPA's, let me know. ** -- vt90 12/29/2021 12:31PM

Yeah. Always take an IPA. ** -- HokieR 12/29/2021 1:32PM

Your basic understanding is pretty much correct

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