1) Would that $100K be tax-free only if we rolled that amount into a new primary residence? Or is it tax free no matter what we do with it? (I have heard it both ways and am confused.)

**[Update: thank you for the validation. The answer is YES- tax free no matter what!]**

2) Assuming it is tax-free regardless, should we put the $100K in taxable (VTSAX) or pay down our new mortgage and lessen our monthly payment by $500?

Background:

- We just bought a new home for $570K

- Financed $427K @ 4.75%. No PMI.

- Monthly payment on new home is ~$2,400 right now (would be ~$1,900 if we roll the $100K)

- Recasting the mortgage would involve only a $300 one-time fee

Additional details:

- I estimate our 2019 Tax Bracket will be 35%. No state income tax.

- We will likely take the Standard Deduction

- Current Investment Portfolio:

What else would be prudent to know in order to make a wise decision here?Tax Deferred IRA's / 401K / HSA: $87K (invested 90% stocks)

Roth IRA's: $65K (100% stocks)

Taxable: $120K (100% stocks)

Emergency: $50K with Ally Bank