I was thinking if I get laid off I will have to take my cash balance account and 401k and cash them out and pay things off anyway because there are no jobs in San Juan County right now all businesses are fleeing so would it not be the same if I took alone against it now and paid things off ? Are there steeper penalties if you own on a loan when let go?
5 replies (most recent on top)
Buy physical gold in the IRA and sell it on the black market untaxed at a 5-8% discount to spot. Feds will never know IRA doesn't own the gold anymore. You could have "lost" it.
If you are close to 59 1/2 then consider conversion into a Roth and you can withdraw the value without a 10 % penalty.
You are a lot of tax games you can play with a self directed IRA but talk to a CPA or CFP that is older than 50.
The thing about taking a loan out is you're basically getting double taxed. The loan principal is taxed, and you're paying it back with after tax money. Unless you're in an extremely low tax bracket you'd be better off withdrawing at a 10% penalty and replacing it with before tax dollars when you get a new job. And only withdraw as you need the money rather than a huge lump sum to optimize taxes.
No, I had a loan and was let go. Your payment stays exactly the same...you just have to ask for somepaperwork from Vanguard to deduct the loan from your personal bank account versus payroll. No big deal.
I meant *a loan *