I have yet to meet an investor who has used this approach nor have I found a CPA who is familiar with the tax as applied to an IRA.

All funds earned beyond your contribution will be subject to income tax as well as the penalty.

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

So including a progressive federal tax, a fixed state and a fixed self employment on $90,000 I come up with $32,150 in taxes.

Most to take advantage of the unlimited marital deduction clause of the revenue code to delay payment of the inheritance tax as long as possible.

@Federico Gutierrez, my main point was, you can never save as much on your Tax as you have to LOSE in the first place in order for that "saving" to take place!

Do you have a source that I could reference that mentions this tax?

That doesn't validate or invalidate the advisor option but it does eliminate the potential tax as a motivator to hang on and leaves you free to do whatever you want with the money.

I have added "Tax" as a keyword on the BP forum, doing some internet searches, and thinking a lot about it.        

Of course, it never hurts to tax a tax sale attorney out to lunch either....   ;-)