Cashing out IRA

You will also pay tax on that at your current tax rate so that plus the 10% will really cut into it.

Just my two cents, but I think that IRA withdrawals should only be extreme circumstances. Could you take out a loan against your house?

[alison]

Re: Cashing out IRA

I was *just* thinking about this today. Thanks for the advice, Nellie!

[Sheherezade]

Re: Cashing out IRA

I'm not sure what the penalties and such would be, but I did hear a financial guy put it this way once:

Would you be willing to borrow the money at X% (whatever your total % loss would be) for this particular investment?

Re: Cashing out IRA

From The Motley Fool:

Uncle Sam agrees. If you touch that money before age 59 1/2, he will fully tax your distributions as ordinary income and slap you with another 10% penalty just to get the message across. If you're wondering, the right way to handle an old 401(k) is to transfer your assets into an IRA or roll them into your new employer's plan.

http://www.fool.com/personal-finance/re ... inkdefault

They said it more clearly than I.

Alison, it depends on what you want to do with it. We are in the process of moving some old work accounts to one account to make it easier to keep track of (no penalty for that).

Re: Cashing out IRA

You will also pay tax on that at your current tax rate so that plus the 10% will really cut into it.

That's really the key here. You'll be taxed at your lovely, attending salary couple tax rate. Out the wazoo, in other words.

[mommax3]

Re: Cashing out IRA

I just wanted to say that DH's company is a major investor in an outpatient surgery center, and all of the company's docs (whether they operate there -- as DH and his partner do -- or not -- obviously the FPs don't operate) get a cut of the profits. It has been very lucrative.

Sally

[Cumberland]

Re: Cashing out IRA

I have a friend whose husband is a new grad nephrologist. They just invested in a dialysis center that is supposed to bring in a guaranteed amount. Sounds worth it to me.