No Interest Til Almost 2027?
Your Roth IRA also offers you the most flexible options when you gotta pull money from retirement.
you’re able to withdraw contributions youve made at any time tax-free and without penalty.
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This applies only to the contributions, not the earnings of your Roth IRA.
To qualify, you cannot have owned a home in the two years preceding the home purchase.
If you prefer to withdraw from a traditional IRA, your maximum is a straight $10,000.
You will have to pay applicable taxes on it.
Since you could use Roth IRA contributions for any reason, this is more notable for a traditional IRA.
Big Medical Expenses
Medical expenses not reimbursed by insurance can qualify for a penalty waiver.
The distribution can be used for you, your spouse or your dependents.
If that all sounds intimidating and vague, thats because it is.
A better option is contributing to ahealth savings account(HSA) if you have one available to you.
This includes all Reserve and National Guard members.
But understand that withdrawals for college costs can reduce your or your students eligibility for financial aid.
None of these should be go-to methods for getting extra money but they are available if you need them.
Jen Smith is a staff writer at The Penny Hoarder.
She maxes out her Roth IRA and gives money-saving and debt-payoff tips on Instagram at @savingwithspunk.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
