Redeeming funds from IRA to pay off credit cards
I am 75yrs old, retired on limited income, ss, pension, annuity. I am considering redeeming $4000 with 10% held
back for taxes, from an IRA before it drops anymore in value. In Jan. 2022, value was $20,500, today value is
$17,900. By doing this I can pay off a high interest credit card and one other debt, leaving me with manageable
credit card debt that I can payoff through monthly income. In the current financial environment with markets
going down, I’m afraid I’ll loose the value to market downturns & still not be debt free.. Thankyou for any
advice
Terry Says
If you’re 75 and paying on high rate cards, you definitely have my permission (if that’s what you’re seeking) to withdraw money and pay down the balances! By now, you should already be taking Required Minimum Distributions anyway. You’ll feel a lot better with that interest charge going away by paying off the cards!
