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Author: yobria Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75525  
Subject: Re: Divorce settlement strategies Date: 11/20/2003 9:50 PM
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>>went to a financial adviser today who said that I should forget about asking for any of the IRA and ask for my settlement part in cash.

I agree with your adviser. Even if you wait til you're 59.5 to withdraw the IRA funds, you'll still have to pay income taxes on them. The taxable funds you settle for are both liquid and tax-free.

And while your taxable investments won't grow tax deferred, you can tax manage the investments and you'll benefit from lower cap gains rates as well.

I would ask for twice as large a settlement if the funds come from an IRA than if they come from a taxable account.

Nick
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