all contributed, to the fall of Rome (yee ha) to the fall of Rome…
It’s a little jingle my kids learned homeschooling to remind them of some of the headlines for certain subjects they were studying.
Based on feedback here, I had pretty much decided just to take the tax hit and keep the inherited money liquid vs putting it into an IRA.
Then I did our 2014 taxes for real (more or less, the tax tables haven’t been published yet).
If I DON’T put $6500 in an IRA for 2014, my tax bill is a whopping $2,213, that I have to PAY.
If I DO put $6500 in an IRA for 2014, I get a $262 REFUND (more or less depending on what the real tax table comes out to.)
It’s just not worth it to give the government $2200 in TAXES for 8 months of liquidity. We can each pull out $10k to buy a first home without penalty.
Yikes. I knew there would be a tax hit, but I didn’t think it would be THAT bad. Well, I guess I did know. I was thinking if I elected for them to take 20% out for taxes (which would have come to $1800), then the tax hit wouldn’t be so bad. It still would have been bad, it just would have hit earlier.