5 ms·
It's a 10% penalty. The rest is presumably taxes that were just deferred anyway. If the guaranteed rate of return for the IRA was 1% and the student loan was 5%
by genwin 14y ago
It's a 10% penalty. The rest is presumably taxes that were just deferred anyway. If the guaranteed rate of return for the IRA was 1% and the student loan was 5% interest, he'd easily come out ahead by retirement. Especially since tax rates will almost certainly be a lot higher in the future.
- maxerickson 14y agoYou comment elsewhere about a $99k IRA. It was a $12k IRA. He netted ~$8k from selling it. That adds a few months of whatever he was doing to come up with the part that wasn't covered by the IRA and bike.