Reverse Mortgages Can Help Avoid Taxes

Reverse Mortgages are being utilized more than ever to supplement one's retirement income. Homeowners and financial planners are using a reverse mortgage to help stave off taxes, as indicated in a recent article in the Herald and News.  Reverse mortgages can be a much better option than taking money out of one's 401(k) and being taxed at likely rates of about 28 percent for federal and 9 percent for state. Since there is no tax on reverse mortgage proceeds, this option can help pay the least amount of taxes over the long term. And, keeping the money in the 401(k) will continue to earn interest which will offset the interest of the reverse mortgage loan.  Read more at HeraldandNews.com.