Malarky
Junior Associate
Truth and snark are equal opportunity here.
Joined: Dec 18, 2010 21:00:51 GMT -5
Posts: 5,313
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Post by Malarky on Jun 9, 2019 14:17:06 GMT -5
So my friend was recently laid off. She would like to take money out of her traditional IRA to pay off some credit card debt and educational expenses.
If she takes money out beyond what she owes for educational expenses will she owe the 10% penalty for the full amount or just the amount she puts towards other debt?
I thank you in advance for the benefit of your expertise.
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busymom
Distinguished Associate
Why is the rum always gone? Oh...that's why.
Joined: Dec 25, 2010 21:09:36 GMT -5
Posts: 29,451
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Post by busymom on Jun 10, 2019 9:25:48 GMT -5
It's been MANY years since I had to tap into my IRA after the job location I'd worked at closed, but at the time, you had to pay the full 10 percent penalty. Maybe one of our accountants here knows the current rules?
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Tennesseer
Member Emeritus
Joined: Dec 20, 2010 21:58:42 GMT -5
Posts: 64,891 
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Post by Tennesseer on Jun 10, 2019 10:35:18 GMT -5
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