Forbes has published an article, “Sell Stocks Or Cash In An IRA?”, which discusses which assets to liquidate when dealing with a tax-deferred IRA and a taxable brokerage account. The article begins as follows:
You’re retired, and living off two piles of assets—a taxable brokerage account and a tax-deferred IRA. Which should be cashed in first?
For a lot of people, the answer is simple: Use up the taxable assets first. This rule applies if you expect to need both piles to cover your living expenses from now to age 100.
For some people—retirees who have a lot of giving in their plans—the answer is more complicated. Those fortunate enough to fall in this category need to do some calculations. I have on hand a spreadsheet that does the work for you. It spells out which kind of asset should be used up first.
Click here to see the full article: “Sell Stocks Or Cash In An IRA?”
Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.