› Forums
- This topic is empty.
- AuthorPosts
- Elizabeth
Please do not withdraw from your retirement accounts to pay credit card debt.
Find another way to save money, otherwise you will be hit with penalties and taxes.
JoeRule is don’t withdraw BUT if you do not want any penalties for doing it, it have to be from a ROTH IRA or 457 plan and the money has to have been invested for 5 or more years.
Otherwise exhaust all other options so you don’t get penalized!
Don’t miss: For the first time ever I will make over the Roth IRA limit
DustinYou can perform a conversion from traditional to Roth. But you’ll be subject to ordinary income tax and perhaps the pro rata rule.
Probably want to check with a tax consultant.
Personally, I think you need to understand everything and make an informed decision or else you’re raiding your retirement and it’ll happen again.
JennyTalk to the hospital to arrange for a payment plan.
AmandaHospitals are happy to do interest free payment plans-I wouldn’t worry about that bill or change financial plans just for that.
LaxWell, you can withdraw with penalty and tax, but do you want to?
You should instead go deep into the credit card statements and see what is going on and look at your expenses and try to cut down and see if you can sell some of the stuff you don’t need including extra car.
Medical bills take time to get triaged by the health insurers and you can wait until all the bills are due.
Explore these too: Would you contribute to your HSA or Roth IRA first?
EllenDon’t take it out of your retirement account. Take it out of his!
Christina SYAsk the hospital if they can arrange a payment plan for your surgery.
LaxHospitals in my area will make payment arrangements and/or reduce the amount you owe based on your income. Sometimes, they write off the entire balance. Even if you have insurance. You may not be able to apply until after you are discharged, but it’s worth checking into.
Sorry you were laid off. It has happened to me before and it is so stressful.
Also make sure you apply for unemployment if you are in the US.
- AuthorPosts
Related Topics:
- Is it totally unwise to be saving a small amount of money each paycheck while I’m paying off my debt?
- Can I transfer money from my business to personal account for a Roth 401k check?
- What should I do with my raise money to avoid lifestyle inflation?
- This year I want to do it right
- Where does employer-matched 401(k) money go, and how can I check it?
- How can I move my HSA contributions back to Schwab and avoid fees?
No related posts.