With the current financial crisis, many people are looking for ways to use the money in their IRA and 401k plans to help with current expenses. There is a way to borrow from an IRA for 60 days, but keep in mind that if you are unable to pay the money back you will be hit with tax penalties.
Also since most IRAs are lower in value than they were a year ago, chances are you may lose money. In the end it is better to cut expenses and look for other sources of cash and just leave your retirement accounts alone.
401k account often have a way you can borrow money from them for longer periods of time, but even then they may be a poor choice. Once you pull the money out you may miss the growth of the market going back up.
Comments on this entry are closed.