Tax consequences of liquidating ira
Capital gain rates apply to assets that have appreciated in value over time.
For taxable retirement savings (basically any money held outside of a tax-deferred retirement account set aside for retirement purposes), capital gain tax rates are lower than ordinary income tax rates.
The answer depends on your circumstances and wishes.
Consider the problem from two angles: income tax and estate tax.
Taxable savings enjoy what is known as a step-up in basis when they are passed to a beneficiary.
Essentially that means your beneficiary potentially can sell an inherited asset and owe little or no income tax on it whatsoever.
Search for tax consequences of liquidating ira:
1, 2017 (when the IRS gives you a gift like that, you take it).