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Author: craigcowles Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: ira withdrawals Date: 2/27/2000 11:34 PM
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A widow with my husband`s 401k rolled into my IRA , I have been advised to withddraw $$ needed for my monthly expenses from the ira as that $$ would be heavily taxed at my death . I am 60. Will any profits earned in the remaining ira assets continue to be non taxable as they are now (in this self directed )account after I have begun to withdrdaw those needed $$?
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19600 of 76418
Subject: Re: ira withdrawals Date: 2/28/2000 4:50 PM
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A widow with my husband`s 401k rolled into my IRA , I have been advised to
withddraw $$ needed for my monthly expenses from the ira as that $$ would be heavily
taxed at my death . I am 60. Will any profits earned in the remaining ira assets continue
to be non taxable as they are now (in this self directed )account after I have begun to
withdrdaw those needed $$?


The money in the IRA will continue to earn on a tax deferred basis after you start your withdrawls.

Your advice to spend down the IRA from a tax standpoint is good. You do not want to die with money in a regular IRA.

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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: 19604 of 76418
Subject: Re: ira withdrawals Date: 2/28/2000 4:54 PM
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Greetings, Craigcowles, and welcome. You wrote:

<<A widow with my husband`s 401k rolled into my IRA , I have been advised to withddraw $$ needed for my monthly expenses from the ira as that $$ would be heavily taxed at my death . I am 60. Will any profits earned in the remaining ira assets continue to be non taxable as they are now (in this self directed )account after I have begun to withdrdaw those needed $$? >>

Yes, the earnings will continue to accumulate free of income taxes in the IRA.
When you begin withdrawals from tax-deferred IRA money, then whatever you take then gets taxed -- not before. If you die with that money still in the account, then your beneficiary will be taxed on the money still in the IRA.

Regards..Pixy

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