DON'T DO IT. $100,000? Insane. You'll regret it.
Yep, you’ll take a double hit considering the value of your investment is likely already down due to the stock market (not down as much as a month ago, but still 10%-15%). So you’ll be withdrawing money in a trough instead of peak like you should aim for when you retire.
You still have to count it as income this year, just no penalty. If you have an exceptionally large balance and lost significant income this year, I don’t see a reason not to take advantage of it, but consult a professional.
If you are older than 59 1/2 what benefit do you get that you would not already have?
“Dear Freepers,
DON’T DO IT. $100,000? Insane. You’ll regret it. “
Yep! The wife and kids don’t have to eat.
it would sure help restore the economy, business and employment opportunities if the taxation of retirement plans were simply ended now
DON’T DO IT. $100,000? Insane. You’ll regret it.
**************
I tend to agree but its not really that clear cut. There could be extenuating circumstances. For example, some people might want to use the money to pay off mortgage debt and other financial obligations, especially if in or nearing retirement.
A person would be best advised to chat with a reputable advisor before making any decisions. But be very careful who you consult with.
If I could take it out tax-free - not just penalty-free - I’d do it instantly to set it free from gov’t control...
but I can’t.
I did. I’m semi-retired at 58, and need about $100K over the next few years. I planned on paying the 10% Penalty. Now, nope! $10K tax savings. Vetted with my CPA tax preparer.
Yes. BAD idea!
I’m not worried about ME taking 100 grand out of my account. I’m worried about the scammer who says he’s me taking it out.
You sure they are not saying get it now before the Dems get in power?
-Selling low; you’d be missing out on future growth
-Still taxed as income and may put you in a higher bracket
-Stupid move; take out a loan.
I did it and am extremely happy with my return to far.