QUESTION
80 year old woman in ill health needs to withdraw funds from her Traditional IRA to pay for a home health care aide, & medical/living expenses
Asked on Apr 28th, 2014 on Elder Law - New Jersey
More details to this question:
She lives on Social Security and whatever pittance her $29000 IRA and $49000 savings CDs yield annual. Income is far less than $10000 a year, thus she has a 1040 prepared every year but does not file because she owes no tax each year. With withdrawing IRA funds cause a tax consequence?
1 ANSWER
2 Awards
It might create a taxable event, but the amount of the tax might be offset by unpaid medical expenses or costs, or other deductions. You may need to consult an accountant to be sure.
Answered on Apr 28th, 2014 at 8:49 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship