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Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

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.

Transcription:

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”