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perfect_elbows OP t1_iyedhws wrote

Reply to comment by Grevious47 in Downside to Cashing Out Roth & Traditional IRAs (besides the obvious)? by perfect_elbows

Thank you. This is definitely why I came here- I was unaware of the tax implications on top of the penalties, which totally makes sense. And also explains why this is not a good solution to my temporary cashflow problem. Ugh. I appreciate your informative response.

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Grevious47 t1_iyee5pw wrote

I should qualify my answer to say you actually may well get 16k in cash out, but that will come with a hefty tax bill at the end of the year. IE you wouldnt pay the taxes on withdrawl, but you would OWE the taxes in your next filing.

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