AboutDavid M Iannopollo Expertise I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances.
Experience I have over 20 years experience in the business and financial world.
Question I am in the process of transferring my mom's IRA into her checking account to help pay for her care. Mom is 87 years old with late stage Alzheimer's. I have Power of Attorney so this is not a problem. She has a monthly non-taxable income of $2,430.00. Her IRA is $9,700.00. She takes the yearly (every Oct.) RMD of $679.31. My question is, never having paid taxes on this money, will she be taxed upon full withdrawal? Keep in mind she is 87. We are in California. Thank you
Answer Hi Loretta,
I'm sorry to hear of your mom's condition. Traditional IRA withdrawals are fully taxable as income, but whether your mom has to pay tax can be a different story. If this is her only taxable income for the year, she will most likely owe little or no tax on the withdrawal. Check with an accountant or if you have it or run it through some tax software like TurboTax to determine if this will trigger any tax. If it does, you could take part of it and then take the rest next year. I hope this helps. Best of luck!
