Six years ago we inherited a traditional IRA valued at over $600,000. Last year we found out that we had to have withdrawn the total amount within five years. So before year end 2022 we withdrew the full amount and paid a huge tax bill. My wife and I are retired so the only income we had that year was a rental of $2,300.
Is there anything we can do to get some of that money back this year?
We have a home we rent out for $2300/month, a 1/4 interest in a commercial property worth a couple of million dollars with half the rent coming to us totaling about $7000/month. The home we live in has about $900,000 in equity. We have a few more IRAs worth over $600,000.
We have have a mortgage of $3,500/month, health insurance costing $3,000/month and various utilities with a grand total of $10,000 expenses every month.
I’m looking into creating a self directed IRA and buying a rental property with it.
How can you help me?
Steve