Retirement Planning/Withdrawel IRA
For the past 6 years, I've been my mother's caregiver. I cannot work, she need full time care. She's in great health physically and may live into her 90's, she's 87 now. In 3 years I'll be able to get Social Security. Her income pays for everything. In April I'll be 59 1/2...if I can take out $9000 a year tax free and no penalty, should I do it? What would be the reasons for leaving the money in the IRA, when I can withdraw part of it tax and penalty free?
The question here is if you need the $9k per year or not. If you need it to live on and help pay for things than you should take it or any part of it that you need. The reason for leaving it in your IRA would be that you didn't need all or part of it now and you would be using the money in the future. You could leave the money in there to use for cost of living increase, to keep up with inflation or to use in the event of a financial emergency. Whether you are going to use these funds now or not, make sure that whatever you are invested in is in line with a risk tolerance level that you are comfortable with. Since you will be in the withdrawal phase, you should make sure that the underlying investments are fairly safe so you do not get a huge amount of fluctuation over time. It is not good to withdraw funds from an account that has the potential for great losses at any given time.
I hope this helps. If you have any more questions or need clarification on anything, please let me know. Best of luck!