recently divorce. housewife awarded an IRA.no other funds i,acquired allot of debt i want to pay it off how?

Question

how do i get cash out of ira that i was awarded in divorce .was a housewife for 20+yrs empty nest would like to pay debt off !! then maybe school? i need income temp

Answer 1

Cashing out any tax deferred retirement account is almost always the WORST option available. You will pay a 10% penalty in addition to including the full amount in your taxable income. If you keep 1/2 the money, you will be lucky. In addition, the lost retirement funds will require at least 4 or 5 times the gross to replace. PLEASE find a way to pay the debts though your income.

Answer 2

You can borrow against your IRA if it is set up properly as much as 50% of the value and set up payments plans so that it doesn't become taxable. If you withdraw from the IRA and you are less than 59 1/2 years of age (or his spouse was) you will pay a 10% penalty on these funds plus all federal and state taxes.

Answer 3

first there are starter jobs out there till a better one comes along -- hit the bricks first light tomorrow and start looking -- contact every one you owe money to and tell them the latest (do not include IRA) if at all possible you might be able to land a job that will support your basic needs (which means no cell phone ipod computer internet cable etc) and allow you to reduce your debt -- should you have to touch the ira and it was job related contact the local hr manager. if not and you had someone prepare your taxes seek his advice!!! good luck and good job hunting!!!

Answer 4

Sharon,

I honestly wouldn't trust any online advice with these types of things. Go talk to your 401k plan administrator since he/she probably has some knowledge of this and / or can point you to a person who would know. The other place to call is the IRA plan provider. The rep there should have all the answers for you.