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IRA withdrawal tax penalties???
OK, long story very short....I have a credit card that has a $3000 balance, and $350/month payment. It is *really* starting to hurt us as our situation has changed. I am thinking about taking the money out of my IRA to pay this damn thing off so we can stop worrying about paying it on time every month.
My question is...How does the money from my IRA get taxed when I take it out?
I know (think?) there is a 10% penalty and that the amount I took also gets added to my income for the year unless I put it back in full within 60 days. Is this correct?
I know that it would only take 11 months or so to pay it off, but we honestly cannot go that long at $350/month. I am also not in a position to borrow it from a freind/relative, nor do I want to take out a small loan for credit report reasons. (That is to say, I could get one easily enough, but we've got a large purchase coming up and don't want the extra burden on my report.)
On the upside, I just started a new job that has lots of retirement options (401, stock, etc) and will be adding funds to my retirement through that much faster than I have in the past.
Thoughts?
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