paying off mortgage with retirement funds?
L1: paying off mortgage with retirement funds?Is it ever worth it to pay off my mortgage of $168K with my IRA even if that incurs 10% early withdrawal penalty but lowers my cost of living during extended unemployment? Someone suggested that option when I asked about taking 72T distributions. Thanks so much for your wisdom.2009-12-29 00:42, By: marceya1, IP: [188.8.131.52]
L2: paying off mortgage with retirement funds?Please excuse what I’m going to say, but it really sounds like ‘someone’ suggested a pretty dumb idea. If you are only in a 30% income tax bracket (add the total amount withdrawn to your annual income), plus a 10% penalty, you would have to take out about$258,462 to pay the income tax and penalty and have $168,000 left to pay off the mortgage. You are throwing away over $90k2009-12-29 01:08, By: Gfw, IP: [184.108.40.206]
L3: paying off mortgage with retirement funds?Ok, really did NOT think it made any sense even in a 15% bracket! Thanks.2009-12-31 06:05, By: marceya1, IP: [220.127.116.11]