I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is

Taking out this 10k will involve selling stocks. But my car will be completely paid for. What should I do? (I%26#039;d have to finance it @ 6 percent anyways with the dealership)

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

This is a HORRIBLE idea. When you withdraw from your retirement fund prematurely the company that is holding it is REQUIRED to withhold 10% because that%26#039;s the penalty, however, that isn%26#039;t all you end up paying for that money. You still have to pay taxes on the additional income from this withdrawal on top of the 10% penalty, which can total as much as 20-30%.

For example, if you withdraw $10K from your retirement fund, you will receive a check for $9K, however during tax time your employer will issue a 1099-R for $10k and you will have to add this to your wages. So if you make $35K per year, you will have to pay taxes on $45K rather than $35 K in addition to paying $1k in penalties.

Don%26#039;t touch your retirement fund, instead, finance your car. Paying 6% to finance a car is much better than taking money from your retirement fund and paying 20-30% to be able to use your retirement money.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

You%26#039;re stealing from your retirement fund to purchase an asset that will only depreciate. I wouldn%26#039;t do it if I were you.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

no.. you%26#039;ll also be charged by irs for taking out the money. Take out the loan through a credit union. Depending on your credit, you will get a good rate.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

No, I don%26#039;t think so you are going to have to pay 10% fee and then you still have to pay taxes on the $10K at the end of the year which might push you into a higher tax.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

Bad idea. Unless you are older than 59.5, you will have to pay a penalty.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

Go with the financing. The 6% you pay there is better than a 10% fee on your IRA. And you would have to pay income taxes on the money you withdraw, also.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

With the 10% penalty also comes local and state taxes at the end of the year. They also tax that more than regular income.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

Depending on what kind of IRA it is, you may face some tax consequences also. Unless you just can%26#039;t afford the monthly payment, I wouldn%26#039;t do it.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

it depends on how long the loan will be at 6%. 10% of 10,000 dollars is 1000 dollars. 6% for 1 year is 600 dollars. if you finance the auto for 3 years you will be paying about 1800 dollars in finance charges

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

What would the term of the 6% finance loan be if you didn%26#039;t take out the 10K? If the total finance charge of 6% over the life of the loan is MORE that the 10% trans fee. (plus the tax you%26#039;ll have to pay on early withdrawl) then it%26#039;s good to pay off the car right away with your IRA. If the 6% amount is less than the trans. fee, don%26#039;t do it, unless you can%26#039;t handle the monthly payments due to cash flow.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

Not only will you be charged a minimum 10% fee for early withdrawal of your money from the IRA, you will also have to count the remaining money as income for the year--and will be taxed on it again! That 10k has just shrunk to at most 8k and all you have to show for it is a car that you%26#039;ll need to drive till the wheels fall off! 6% interest on a loan isn%26#039;t anything compared to the minimum of 20% that you%26#039;re proposing!

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

No, this is not wise. You are taking long-term saving at a penalty (remember, the IRS is going to tax you at the maximum rate for your distribution, in ADDITION to the 10% penalty)

and using it for a relatively short-term goal. The car won%26#039;t last very long and you will have robbed your 401K.

To put it another way, if your 401K monies are in index funds, you should be getting around 10% return. Yet, your%26#039;re financing rate is only 6%. So, right away, you%26#039;re giving up 4%.

Bite the bullet and use the car loan to pay for your car. If you can%26#039;t make the payments, don%26#039;t buy or get a cheaper car.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

Not wise at all.Simple as that,I also have $10k in my IRA,would I spend for a car?No.Let me ask you this,is Social Security going to pay all the bills that you need to pay when you retire?

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

6% is a good rate for a car loan. You should probably take that financing and leave your retirement money alone.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

Terrible idea. Not only the penalty but that $$ will be taxable this year so another 15% or more. DO NOT DO!

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

if you take that 10K then not only do you pay extra taxes and the penalty on it now, but you forfit probably thousands that the 10K would be gringing in interest until you retire. this is a VERY bad idea.

not sure what you are earning on your ira but figure 10K earning a 5% yield anualy the earning profit on that in 5 years plus the thousand dollar penalty and the 15% the irs is gonna charge you and see if you really come out ahead. you%26#039;re probably looking at about 5,000 or more altogether just to avoid 6% finance charge for a few years. does that even make any sense at all?

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

What%26#039;s this 10% transaction fee? Is this a ROTH IRA or Conventional? I%26#039;ve never heard of an IRA invested in stocks. Is it a mutual fund? If so, consider rolling it over to a no-load mutual fund.

If it%26#039;s a conventional IRA, the 10% is probably not a FEE but an early withdrawal PENALTY, required by law. If you take money out of a conv. IRA, you will have to pay taxes on it at year end (if they don%26#039;t take that out with the penalty BEFORE they pay you).

If it%26#039;s a ROTH IRA, that%26#039;s a whole different animal. With a ROTH, you can take your PRINCIPLE (what you put in) back out for ANY reason at ANY time with NO penalties and NO taxes, because it was AFTER-tax dollars you put in. Just don%26#039;t touch the earnings, or you WILL pay taxes on that part. We%26#039;ve done this several times then put the money right back into the account.

You would do better to leave your retirement alone. Use cash to buy a CHEAP, OLD car (no loan), then put the money you WOULD HAVE paid in car payment into a savings account (or Roth). Then, in a couple of year, take your old car and your savings and buy a newer car with a trade-in and cash. Keep doing this and you%26#039;ll never have a car payment and can drive newer and newer cars every couple of years. But NEVER buy a new car because they depreciate too quickly. Let someone else take the depreciation by buying a slightly used car.

I am thinking of taking $10k out of my IRA to pay for a car. I will be charged a %10 trans. fee. Is this wise?

No.

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