Reported 4 months ago
A 65-year-old individual is contemplating using their Roth IRA for a $30,000 home improvement project while having strong financial stability. Although their primary concern is minimizing the tax impact, financial advisors suggest considering the long-term implications of withdrawals from different accounts before deciding. While there may be no immediate tax implications for a Roth IRA withdrawal post-age 59 ½, analyzing the current and future tax situation, including capital gains taxes and retirement income sources, is crucial. Considering tax rates, strategies like tax-loss harvesting or gifting appreciated securities to charity may be beneficial. Ultimately, the decision should align with overall financial goals and be advised by a professional to optimize results.
Source: YAHOO