401k

Looking to get a new central a/c unit for my house and was tbinking about cashing in about $3k of my 401k that got turned into an IRA acct. Whats everyones take on doing so? Is the penalty worth it?

 

nix

 

nope...keep it, you would have to pay 10% penalty and income tax on the amount you take out

 

My take...dont take money from a retirement account unless its absolutely needed. A/C doesnt fall into that category IMO.

Especially when many places offer financing or offers to pay it back in a year. Put it on a credit card and do a balance transfer for a (sort of) free loan. Theres just to many options out there to consider before tapping into a retirement account

 

Ok. Guess its gonna have to wait...

 

Good point. Only problem is that we already have a few crsdit accts we are paying on. I was looking to pay it and be done with it..

 

If its possible, start looking into other cards that are offering 18mo 0% APR and $0 balance transfer fees. You'd be surprised how quickly the balance drops on your current cards. I did that for multiple cards already and paid them off and the process to sign up for a card with the promotion, and do the balance transfer.

A good card to look at is Chase Slate. I signed up to be my balance transfer card and it went well, eventually paying off one card. Well, just before I paid off that card, they had sent me another offer to do another balance transfer for 18mo. So I did it for another card.....check it out, it's worth it.

 

You can live without AC.

 

Get a loan , interest rates are going to get any lower

 

Absolutely don't raid a retirement plan UNLESS it's a dire situation. You'll get your pee pee smacked with a penality and the taxes on top. Plus, once you start down that road, it's too easy to keep "dipping" into. Bad. Very bad.

 

uh... summer is almost over
save up, get it next year

 

already have chase slate. even got the $300 cash back after spending $500 in the first 90 days of activation.
3 of my other cards are already 18-24mons 0% but have a few grand racked up on them with 18+ months still to pay on them..

 

Thats funny... You dont live in southwest fla or have not been here for a summer, have you?!

 

summer time is year round here in s.w. fla

 

ok well then your f**ked

 

You can still live without it. You just aren't hearing what you wanted to hear.

 

As others said, terrible idea. I'm guessing you are pretty young, and retirement accounts get the biggest bang for the buck with compounding interest over the long term. If you take from it now, you are hurting yourself several ways. Find another way. If you are a homeowner, you should also be looking into a sustainable way to have more liquid funding for home maintenance and other emergency needs. Like saving.

 

Ah, well best of luck man. I would buy a couple of house fans for 50$ a piece and move them around, and use the money I would spend on unit to pay the cards off. My buddy found a relatively cheap AC unit on Amazon that worked pretty good for a single room, check around and be open to money saving ideas!

 

Probly just going to put the a/c on another card if need be. Bought the house back in december last year. The house is about 20yrs old and Iwould say the a/c is probly the second unit. It is still working, just struggles to keep cool.