I'm 32 and only have $1,500 in the Roth IRA. The small debt is really a nagging burden and would love to be rid of it without crunching cash flow. The $1,500 would be considered contributions, not growth, so there would be no taxes or penalties. Thoughts? Thanks!
2007-02-16 12:24:40 · 4 answers · asked by Todd 1 in Business & Finance ➔ Personal Finance
And yes, I'm aware of the 5-year rule. It's been in for a little over 6 years, so no penalties/taxes.
2007-02-16 12:36:35 · update #1
Peace of mind is priceless
2007-02-16 12:33:38 · answer #1 · answered by Larry 6 · 0⤊ 1⤋
Best way to compare is the growth percentage of your IRA verse the interest rate of your debt. Best way, to keep your IRA and get a 0% APR credit card and transfer the debt and pay it off within the 6 months (or whatever period the credit card company offer you)
2007-02-16 20:33:57 · answer #2 · answered by paobay 4 · 1⤊ 0⤋
unless you had the money in the Roth IRA for 5 years, there will be penalties on the distribution.
2007-02-16 20:33:42 · answer #3 · answered by tma 6 · 0⤊ 1⤋
Try to avoid touching the ROTH IRA. When you're 50+... you'll be happy you didn't.
2007-02-16 23:27:58 · answer #4 · answered by Common Sense 7 · 0⤊ 0⤋