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alexm2816 t1_iye6pjj wrote

>If I completely cash out both, I'd lose ~$1300 in surrender charges and have ~$16K.

Are you sure?

RIRA basis is yours tax/penalty free. Earnings will be taxed as ordinary income plus a 10% gross penalty.

TIRA will be 10% on all distributions plus it's taxed as ordinary income.

Your math on the $1300 sounds like you've got hte 10% penalty from RIRA earnings and the whole TIRA distribution. You arne't considering the tax portion (which is going to be larger).

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perfect_elbows OP t1_iyedu1c wrote

Thank you for clarifying. Dissecting all of this is new to me, as I've never had to consider the possibility of tapping into this, so I appreciate the info!

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