Question
Mark Peters, 55, has an IRA, with a balance of $150,000 and a 401(k) plan through his employer, with a balance of $275,000. Mark's adjusted
Mark Peters, 55, has an IRA, with a balance of $150,000 and a 401(k) plan through his employer, with a balance of $275,000. Mark's adjusted gross income (AGI) this year will be $100,000 but he would like to obtain $8,000 per year in additional cash to pay medical bills for his mother, who will need medical treatment over the next four or five years. Which one of the following recommendations would be the most appropriate for Mark?
A. Take a series of substantially equal periodic payments from the IRA based on Mark's actuarial life expectancy.
B. Withdraw in a lump sum from the IRA the amount of medical bills and transfer the amount to a saving account until needed.
C. Take a loan from the IRA for the amount of medical bills that will be expected over a period of two consecutive years.
D. Withdraw the money as needed from the 401(k) plan as a safe-harbor hardship
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