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Author: davidbrock Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: IRA Income Date: 9/11/2000 10:42 AM
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So, in two weeks I'll be fifty-nine and a half. And I can start living off my IRA penalty-free. I'd like yall's advice as to whether I should live off cashing in my non-IRA stocks and mutual funds to live on and not touch my IRA, or should I now start taking the IRA dividends and capital gains and living off them rather than reinvesting them? Help?
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Author: billjam Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5043 of 19483
Subject: Re: IRA Income Date: 9/11/2000 11:11 AM
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My general answer would be to live off the non-IRA investments first. That let's the IRA continue to grow tax deferred. However, you need to project out to 70 1/2 and see what you might be looking at for required minimum distributions. If your IRA is already large it might be tax advantageous to take some of it now so you can spread out the withdrawals. The taxes on sales in the non-IRA account to fund current living may also influence your decision.

Sorry, there is no cut and dried answer. Too much depends on your specific circumstances. If you're handy with a spreadsheet program you can probably play around with the options yourself. If not, an hour with a CPA might be a good investment.

Congrats on reaching the 59 1/2 milestone. I have 4 1/2 years to go but am enjoying retirement on SEPP distributions supplemented as needed by my non-IRA investments.


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Author: tashak2 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5048 of 19483
Subject: Re: IRA Income Date: 9/12/2000 3:48 AM
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Question: if one is living off IRA income but works sporadically (part time and/or temporary jobs) can one fund a ROTH IRA form the sporadic work?

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5049 of 19483
Subject: Re: IRA Income Date: 9/12/2000 6:55 AM
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Greetings, Tashak2, and welcome. You asked:

<<Question: if one is living off IRA income but works sporadically (part time and/or temporary jobs) can one fund a ROTH IRA form the sporadic work? >>

Yes, but only up to the lesser of the job income or $2K per year. So, if your sporadic work only produces $500 in wages, that's all you may contribute to the Roth.

Regards..Pixy

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