In this week’s countdown question, Joe answers a viewer’s question about taxes on IRA (individual retirement account) withdrawals. Find out how they are taxed and if there are any loopholes around it.
0:16 “I have two boys, and I would like to help at least one of them buy a house. If I take money out of my IRA (individual retirement account), will I be taxed on that?
0:40 “If you take money out of your IRA and you’re over 59 1/2, yes you will be taxed even though you’re purchasing a home”
0:55 “There’s no way around the taxation on an IRA. Even if you’re disabled or you die, there is no way around the taxation of an individual retirement account. It’s a pre-taxed account that grows 100% tax-deferred when you pull that money out it will be taxed at ordinary income”
1:18 “You want to look at your tax bracket to make sure you don’t push yourself into a giant bracket when buying a house”