central - east central Minnesota - | Tnfarmer - 7/3/2020 21:45 I need to get out of some debt. I'm a federal employee and they are gonna let us do an in service withdrawal with out the normal 10% penalty. I know most people say it's a mistake to touch it, but what is peace of mind worth? If I can eliminate some debt and live to fight another day, I think it's worth it. I'm a small farmer (450 ac) and I need to get rid of about 50k in personal and farm debts. Am i completely crazy to take it out or if it'll make me sleep better at night is it the right thing to do? I'll max my contribution out when i get rid of the debt. I've got about 8 yrs till retirement. Please no negative stuff here, I'm just thinking about it. Thanks. You have answered your own question - doesn't matter what I think or any other AgTalker . . . . . If it makes you sleep better at night, do it. If there are no other alternatives, do it. The tax man may hit you with increased tax, but only if it kicks you into a different higher tax bracket with a higher pay in right. If you have losses on the farm to offset the increase, then you pay none or minimum. If you really want to make an informed decision, go see your tax guy, get his opinion on what the tax would be. Again, when all said and done, if it makes you sleep easier - do it . . . . . good luck |
Taking money out of 401k with no penalty??
