No. of Recommendations: 1
>>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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.