Officially retired three years ago from your corporate position, you chose to defer social security benefits to age 70, allowing the amount to increase. You’ve been able to earn part time income, avoiding the need to tap your IRA rollover account. In fact, you’re hoping to defer IRA withdrawals until age 73.
Just turned 69, you share your home with a life partner (same age, also retired), and the two of you split both regular expenses and repair costs. Long ago, you made the decision together to keep living at home just as long as health and vigor allow. In looking ahead, though, you realize there’d be little point in continuing to defer social security benefits past age 70. Meanwhile, you’re concerned that, should your part time income decline, forcing you to begin IRA withdrawals early, when combined with the social security benefits, the tax “haircut” is going to be dramatic.
Sounds as if you’ve been proactive when it comes to both income and tax planning, but haven’t considered housing wealth as an income source. With a reverse mortgage, you can arrange for non-taxable, to-be -accessed- as-needed – draws for your line of credit to supplement the social security income. thus, allowing you to continue deferring withdrawals from IRA over the next four years. The equity you’ve built up in your home will serve as the sole collateral needed for the mortgage, and there will be no mandatory mortgage payments.
Yes, eventually, the tax will need to be paid on both social security and on the mandatory IRA withdrawals. In the meanwhile, though, the equity in your home can serve as a safety net – and a tax deferral tool.
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).
This is not tax advice. Please consult a tax advisor. Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to:www.nmlsconsumeraccess.org Equal Housing Lender