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My mother has an IRA she can start drawing out of in a few months but will be subject to income tax. Is there any possible way to transfer it to some kind of immediate annuity without being taxed?
She got a big tax benefit what you put the money in, so there is no way to escape the taxes on the way out.My mother has an IRA she can start drawing out of in a few months but will be subject to income tax. Is there any possible way to transfer it to some kind of immediate annuity without being taxed?
The only way to "escape" the taxes... is to have the tax liability offset by something else that is deductible.
Depending on her current situation, it may be a good idea to look into refinancing her home so that she can deduct more of her payment as an interest-deductible payment.
Wow. Without doing ANY kind of fact-finding... everyone is easily able to determine the BEST available advice for someone! It's incredible! You guys must be psychic!
You are all assuming that she's poor. I wouldn't make that assumption. If someone is poor... why would they be worried about taxes?
Do we know if this person has other kinds of taxable income that can really make this a good recommendation or not? No... we don't know!
Are there real estate rental income along with business interests that are driving up her income to a higher amount? Again... we don't know.
Ever notice that all my posts included the word *may* as in *may be appropriate*?
Never cast judgment on advice until you take a fact-finder. These threads do not contain enough information to make any kinds of recommendations.
I will agree that it's something to be discussed, but probably ultimately rejected... once one has the conversation with the client to show that it's an idea... but an idea that may or may not fit.