I know people who have cashed in an IRA or 401K to buy a house here in TV. All this money is taxable in the year distriibuted just like an RMD.
Also beware that an IRA/401K/403B/459 distribution(s) (either from your account or something you inherited plus any RMD will be added to your current year Adjusted Gross Income which "Could" depending upon your income levels impact your Medicare Part B premiims for the coming year.
For ex, if you take $200K from your IRA to buy a house, it will definitely put you (and your spouse) in the next income threshold level for medicare Part B.
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