Need cash for home repairs
Hi, i need about 5k to 10k for some home improvements. House is paid off. Is it best to withdraw from my 401k or IRA. I am 65 and still working full time. Thanks
Terry Says
If you’re still working full time, you can’t “withdraw” from your 40l(k) — although your company might let you take a loan. There is no penalty for withdrawing from your IRA — but you’ll have to pay taxes on the withdrawal at your marginal rate. So make sure you have enough cash to do that.
Assuming you “must” do this remodel (instead of waiting for a recession when it might be cheaper), either of these options is preferable to using a credit card with high rates! Just make sure you keep track of the improvements, so you can add them to your cost basis if you ever sell the home.
