Using IRA to pay off mortgage on rental property?

[David Green]

I'm over 59.5 and about 5 years away from retirement. I may work longer, not sure. 

I currently own a rental condo that still has about 85K on the mortgage wth an $800 mortgage payment. Current value on the condo is about 128K. I have over 100K in a traditional IRA.

How stupid would it be to use the IRA to pay off the mortgage and start enjoying the $800 a month extra income from not having a mortgage?

I also have a separate Roth IRA that I won't be touching. The condo originally cost $52K about 10 years ago. The value went up 16k in the past 12 months. It's in a great area and is an easy rent.

[Matt Devincenzo]

Without analysing the math and specifics of your income it's just a guess, but if you're considering this just take $800/mo from the IRA. Leaving the balance will be a better scenario since your IRA will continue to be invested, and your tenant will pay off the mortgage on the condo over time. I doubt there's any scenario where paying it off early is a better option.