Moving to a CCRC or Life Plan Community is an exciting time!  As you prepare to make the move, you are likely evaluating how best to fund your Entry Fee or monthly service fees.  While this page is not tax or financial advice, it is meant to give you a starting point for a conversation with qualified financial professionals who specialize in tax and retirement account management.

There are many different types of retirement accounts, such as traditional IRAs, Roth IRAs, 401ks, and more. You may own more than one type of retirement account.  

Large withdrawals from most IRAs (with the exception of Roth) will typically trigger a large income tax bill- potentially at a higher tax rate, and may also trigger a Medicare surcharge. A few hours of time with a tax professional could save you a lot of money in unexpected tax consequences.

Please be sure to read the important disclaimer at the bottom of this page.

Step 1: Take inventory of your retirement accounts

The tax impact and potential withdrawal penalties vary by the type of retirement account. The first step in determining your options for potential withdrawals is to understand which types of accounts you have. Make a list or organize in a printout all of your accounts as a starting point for your conversation with your financial advisor or accountant.

Step 2: Before you make withdrawals, review your tax impact

When considering a withdrawal from a retirement account to fund your Entry Fee in a Continuing Care Retirement Community (CCRC) or Life Plan Community, we strongly recommend a review of your options with a tax accountant or financial advisor before making any decisions and before making any withdrawals.

The table below provides a link to a page of helpful items to consider with your financial or tax advisor, for each type of retirement account:


A Bridge Loan could be another financing option if withdrawals from retirement accounts are not recommended by your financial advisors.

If after consulting with your tax or financial advisor withdrawing from retirement accounts or selling your securities is not something you want to do, there are other funding options. Second Act provides a Home Equity Line of Credit that can act as a bridge loan to help you fund your CCRC or Life Plan Community Entry Fees so you can move in first and have the time you need to list and sell your home for the best possible price.

With fast approval, competitive rates, and a special focus on serving seniors, we could help because we understand. Contact us today to learn more about how we can help you navigate your journey to a rewarding retirement.

Important Disclaimer

The information in this page is not meant to serve as financial, tax, or personal financial planning advice.  No decisions should be made from reading the information on this page.  Decisions should be made after careful analysis and consultation with your financial, tax, accounting, or other professional advisor licensed to provide retirement advice.