[capacommie]

What to do with already-existing IRAs?
I’d started saving for a “guaranteed tuition” program but then I thought, to hell with this, the gov’t is always making great promises then reneging later. When I tried to get the money back OUT, what an ordeal they put me through. They didn’t want to release it.
In fact, when I needed several grand for something at the bank, they treated it as a big ordeal even though it’s MY money, asked me why I needed it (I was buying a vehicle).
The long story short is these establishments will TAKE your money, you ever getting it back out easily is another story altogether.

What about real estate purchases in IRAs? I think the solution is to take out as much IRA as you can and pay your 10% penalty, seems a lot better than a “government promise”!

[Lexluthor69]

That’s what big bloated governments do. They have become so used to feeding at the taxpayer expense they do not know how to do otherwise. We need to rid ourselves of these career politicians and find some fresh blood.

[greeneyes]

You could roll the IRA over into an annuity. These are only sold by Insurance Companies. They have great lobbyists.If anyone can avoid the confiscation they can.

Some of the annuities allow investment in mutual fund type accounts, as well as guaranteed accounts. Since it is a rollover, there is no 10% penalty.

Also, consider variable Life Insurance. You pay in enough to cover term Insurance, and any extra is invested in mutual fund type accounts and guaranteed accounts. Later when you need the money, take out a loan, at a low rate of interest, which doesn't have to be paid back. It is the insurance industry's answer to buy term and invest the rest.

Then there's gold and silver etc. - trouble is the entry point on that was a while back it's pretty expensive now.

Buy real estate. It's at a low price. If you live within 60 miles of a metropolitan area it should at least double in value in the next 10 years.

LOL. If nothing else, how about, If you have room, consider planting fruit trees, and berries.LOL It will reduce your food bill, use up CO2, and taste better than grocery store produce.

[Kellis91789]

It isn’t the 10% penalty that is the deterrent. It is that all of the 401k or IRA counts as income for that one year if you take it out all at once.

So you have the 10% penalty, plus the marginal Fed income tax rate which might be 35% if your 401K is worth hundreds of thousands of dollars, plus the marginal State income tax rate like in CA where it is 10%.

So if I have to withdraw my 401K and IRA all at once, I’ll be left with only 45% of my money. If I can take it out slowly over the next 40 years, I won’t owe any taxes at all because each year’s withdrawn amount will be less than my itemized deductions.