Quote:
Originally Posted by iX nOOky
I know we have a bunch of financial savvy folks here. I have an inherited IRA currently sitting in a Vanguard account. It is over and above what I have already been saving for retirement, so more of a gift to me than an actual need, although it is nice.
If I take it all it puts us into an 8% higher tax bracket, so taking it all at once is out. I don't have to take any until the end of this year, so I can leave it in there and make some adjustments to how it is invested and let it ride. I don't have to take it all out at once as I have 10 years, but from what I have found I cannot convert it into anything else without paying the tax on it. If you're wondering how much I won't say, but it is not that much, about the cost of a new X5M.
I could also use it as an emergency fund. Ideally I'd just like to leave it alone and let it grow, Thoughts?
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Your #1 goal is to minimize the tax hit from inheriting the account.
Spend the $250 to talk to a professional for advice. Or open an account somewhere like Vanguard, take advantage of the free advice they can provide, and transfer the funds there.
And a lot depends on your current age, income, savings, and risk tolerance.
Lastly, if you cash out the account, I suspect you will take about a 20% hit plus income tax.