Client is single, 57 years old. She has negative taxable income most years but is required to file. She has an IRA in the amount of around $400,000. I realize that she would be penalized if she takes IRA distributions before 59 1/2.
Thought that she could take some before that magic age using a special formula. Have been looking in the Taxbook and can't find the reference to those withdrawals prior to 59 1/2 for a 5 year period. She will be receiving Social Security (about 18,000 per year) when she is 60 from deceased spouse. Just wanted to see if she could get some of this IRA with no tax or at the 10% level. I know that when she starts receiving her SS, the tax bill will go up.
Thought that she could take some before that magic age using a special formula. Have been looking in the Taxbook and can't find the reference to those withdrawals prior to 59 1/2 for a 5 year period. She will be receiving Social Security (about 18,000 per year) when she is 60 from deceased spouse. Just wanted to see if she could get some of this IRA with no tax or at the 10% level. I know that when she starts receiving her SS, the tax bill will go up.
Comment