# IRA Cash-in Advice



## GaryS (Nov 15, 2011)

I have a financial question for you.

My wife and I are both in our seventies, and because our income varies from year to year, this year being considerably lower than most, my wife is thinking about cashing in her inherited IRA and paying the tax while we are in a lower bracket. 

With all the rumors about bail-ins and restrictions on access to bank accounts, she would prefer to better protect that money with precious metals, or something else a little less accessible to the government than bank accounts. She would also gift her children and grandchildren a part of it. 

Opinions?


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## hiwall (Jun 15, 2012)

I certainly see no down side for you.
You do have the option of taking just part and not all but other than maybe paying a little more tax you could certainly take it all out.


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## AmmoSgt (Apr 13, 2014)

By law you have to start a minimum annual withdrawal on IRA's when you hit 70 1/2 years old or there is a penalty

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions

What happens if a person does not take a RMD by the required deadline?

If an account owner fails to withdraw a RMD, fails to withdraw the full amount of the RMD, or fails to withdraw the RMD by the applicable deadline, the amount not withdrawn is taxed at 50%. The account owner should file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, with his or her federal tax return for the year in which the full amount of the RMD was not taken.

look if you need some specific help I can get one of my tax guys to chime in with a little advice.. they are quite good at this stuff.. let me know, and I'll ask if one can come over and answer a question or two.


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## GaryS (Nov 15, 2011)

Hiwall, that's what we're thinking. The fees now charged by our financial advisor nearly exceed earnings, so we want to close the investment account, and since he also manages the IRA we'd have to find a different way to keep it in an IRA. Because of our age, we really want to simplify our financial interests.

AmmoSgt, we've been drawing for several years. The one my wife wants to cash-in and close was inherited from her father, so she had to begin distributions based on his age, not hers. She also has begun drawing on her own IRA, but as of now we aren't sure if she wants to cash it in or not. If our income looks to be lower again next year, we might close it out for the 2017 tax year.


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## AmmoSgt (Apr 13, 2014)

ahh okay whew ..


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