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You wrote, My accountant told me that it didn't make good financial sense for me to put any more yearly contribuations into my IRA because I am very likely to be in a higher tax bracket in the years to come and that I would be better off paying taxes on my income now instead of paying taxes on the money later when I withdrew it from the IRA account.

I'm nearly 52 so it's not very long between now and the 59-1/2 age where I could start drawing out of the fund.

I was wondering if I really should not be contributing into the IRA why then I should let the money lie there and grow through the years (supposing it does grow, I'm invested in indiviual stocks that some have done well and some have bombed through the years).

Should I go ahead and cash the IRA out and take the 10% penalty and pay the taxes on the roughly $28,000 in value now or just manage the stocks (buying and selling) and let it grow (hopefully) and perhaps be in a higher bracket in 8 years and pay even more in taxes on it?

So let me get this straight. You'd rather pay a 10% tax penalty now instead of a 3-4% penalty later? Why?

Why do you really want to pay a 10% penalty to the government? I mean come on, you're only 8 years or so away from getting the money penalty free and there's no guarantee you'll get pushed into a higher bracket, is there?

If you want to do something with it, do a Roth conversion. That will let you pay the taxes before you go into a higher tax bracket - just be careful that the conversion itself doesn't push you into that bracket.

- Joel
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