Advice on where to take funds from to pay a bill
Hello Terry, We have encountered an unexpected expense.,Around $3000.
We are retired,Should I cash in stock or take money from our 401k.
Thanks.
Terry Says
Your 40l(k) withdrawal will be taxed as ordinary income (plus a 10% penalty) if you’re under age 59-1/2.
Stock sales could generate lower-rate capital gains taxes if you’ve held them over a year (or a loss to use against ordinary income).
So it all depends on your personal situation.
If you think you can pay it off quickly, maybe let it ride on your low-rate credit card for a few months?
