TightLines
Dryer sheet wannabe
I will be receiving an IRA inheritance in a few days of about 93K. I'm wondering if I should take the lump sum, pay the taxes and then invest it in the market. I am in the 22% tax bracket and it would push me to the 24% bracket.
Or, I could take about half, pay the taxes and stay in the 22% tax bracket.
I don't need the money and hope to FIRE soon. My thought is if I can invest in the stock market and incur capital gains in the long term (15-20 years), I would sell the stocks and pay zero on long term capital gains (if I stay under my LTCG and income limit).
If I leave it in the IRA and invest it, I'll be paying taxes on the gains and the inherited amount.
This is assuming of course that tax laws don't significantly change
Any thoughts?
Or, I could take about half, pay the taxes and stay in the 22% tax bracket.
I don't need the money and hope to FIRE soon. My thought is if I can invest in the stock market and incur capital gains in the long term (15-20 years), I would sell the stocks and pay zero on long term capital gains (if I stay under my LTCG and income limit).
If I leave it in the IRA and invest it, I'll be paying taxes on the gains and the inherited amount.
This is assuming of course that tax laws don't significantly change
Any thoughts?