Saturday, October 25, 2014

Used IRA to Pay off Student Loans

Although paying the penalty tax of 10% to make a withdrawal out of an IRA is harsh (plus the regular tax), we decided to make the plunge.   First of all, the amount of my final student loan was less than $10,000.  Second, the payment $325 per month was significant.

By biting the bullet, I was able to improve my cash flow during a time when daycare is hurting my cashflow.